entergy corporation and subsidiaries management 2019s financial discussion and analysis regulatory asset associated with new nuclear generation development costs as a result of a joint stipulation entered into with the mississippi public utilities staff , subsequently approved by the mpsc , in which entergy mississippi agreed not to pursue recovery of the costs deferred by an mpsc order in the new nuclear generation docket .
see note 2 to the financial statements for further discussion of the new nuclear generation development costs and the joint stipulation .
net revenue utility following is an analysis of the change in net revenue comparing 2015 to 2014 .
amount ( in millions ) .

                                                  | amount ( in millions )
------------------------------------------------- | ----------------------
2014 net revenue                                  | $ 5735
retail electric price                             | 187
volume/weather                                    | 95
louisiana business combination customer credits   | -107 ( 107 )
miso deferral                                     | -35 ( 35 )
waterford 3 replacement steam generator provision | -32 ( 32 )
other                                             | -14 ( 14 )
2015 net revenue                                  | $ 5829

the retail electric price variance is primarily due to : 2022 formula rate plan increases at entergy louisiana , as approved by the lpsc , effective december 2014 and january 2015 ; 2022 an increase in energy efficiency rider revenue primarily due to increases in the energy efficiency rider at entergy arkansas , as approved by the apsc , effective july 2015 and july 2014 , and new energy efficiency riders at entergy louisiana and entergy mississippi that began in the fourth quarter 2014 .
energy efficiency revenues are largely offset by costs included in other operation and maintenance expenses and have a minimal effect on net income ; and 2022 an annual net rate increase at entergy mississippi of $ 16 million , effective february 2015 , as a result of the mpsc order in the june 2014 rate case .
see note 2 to the financial statements for a discussion of rate and regulatory proceedings .
the volume/weather variance is primarily due to an increase of 1402 gwh , or 1% ( 1 % ) , in billed electricity usage , including an increase in industrial usage and the effect of more favorable weather .
the increase in industrial sales was primarily due to expansion in the chemicals industry and the addition of new customers , partially offset by decreased demand primarily due to extended maintenance outages for existing chemicals customers .
the louisiana business combination customer credits variance is due to a regulatory liability of $ 107 million recorded by entergy in october 2015 as a result of the entergy gulf states louisiana and entergy louisiana business combination .
consistent with the terms of an agreement with the lpsc , electric customers of entergy louisiana will realize customer credits associated with the business combination ; accordingly , in october 2015 , entergy recorded a regulatory liability of $ 107 million ( $ 66 million net-of-tax ) .
see note 2 to the financial statements for further discussion of the business combination and customer credits.


apple inc .
| 2018 form 10-k | 20 company stock performance the following graph shows a comparison of cumulative total shareholder return , calculated on a dividend-reinvested basis , for the company , the s&p 500 index , the s&p information technology index and the dow jones u.s .
technology supersector index for the five years ended september 29 , 2018 .
the graph assumes $ 100 was invested in each of the company 2019s common stock , the s&p 500 index , the s&p information technology index and the dow jones u.s .
technology supersector index as of the market close on september 27 , 2013 .
note that historic stock price performance is not necessarily indicative of future stock price performance .
* $ 100 invested on september 27 , 2013 in stock or index , including reinvestment of dividends .
data points are the last day of each fiscal year for the company 2019s common stock and september 30th for indexes .
copyright a9 2018 standard & poor 2019s , a division of s&p global .
all rights reserved .
copyright a9 2018 s&p dow jones indices llc , a division of s&p global .
all rights reserved .
september september september september september september .

                                             | september2013 | september2014 | september2015 | september2016 | september2017 | september2018
-------------------------------------------- | ------------- | ------------- | ------------- | ------------- | ------------- | -------------
apple inc .                                  | $ 100         | $ 149         | $ 173         | $ 174         | $ 242         | $ 359
s&p 500 index                                | $ 100         | $ 120         | $ 119         | $ 137         | $ 163         | $ 192
s&p information technology index             | $ 100         | $ 129         | $ 132         | $ 162         | $ 209         | $ 275
dow jones u.s . technology supersector index | $ 100         | $ 130         | $ 130         | $ 159         | $ 203         | $ 266


december 2016 acquisition of camber and higher volumes in fleet support and oil and gas services , partially offset by lower nuclear and environmental volumes due to the resolution in 2016 of outstanding contract changes on a nuclear and environmental commercial contract .
segment operating income 2018 - operating income in the technical solutions segment for the year ended december 31 , 2018 , was $ 32 million , compared to operating income of $ 21 million in 2017 .
the increase was primarily due to an allowance for accounts receivable in 2017 on a nuclear and environmental commercial contract and higher income from operating investments at our nuclear and environmental joint ventures , partially offset by one time employee bonus payments in 2018 related to the tax act and lower performance in fleet support services .
2017 - operating income in the technical solutions segment for the year ended december 31 , 2017 , was $ 21 million , compared to operating income of $ 8 million in 2016 .
the increase was primarily due to improved performance in oil and gas services and higher volume in mdis services following the december 2016 acquisition of camber , partially offset by the establishment of an allowance for accounts receivable on a nuclear and environmental commercial contract in 2017 and the resolution in 2016 of outstanding contract changes on a nuclear and environmental commercial contract .
backlog total backlog as of december 31 , 2018 , was approximately $ 23 billion .
total backlog includes both funded backlog ( firm orders for which funding is contractually obligated by the customer ) and unfunded backlog ( firm orders for which funding is not currently contractually obligated by the customer ) .
backlog excludes unexercised contract options and unfunded idiq orders .
for contracts having no stated contract values , backlog includes only the amounts committed by the customer .
the following table presents funded and unfunded backlog by segment as of december 31 , 2018 and 2017: .

( $ in millions )   | december 31 2018 funded | december 31 2018 unfunded | december 31 2018 total backlog | december 31 2018 funded | december 31 2018 unfunded | total backlog
------------------- | ----------------------- | ------------------------- | ------------------------------ | ----------------------- | ------------------------- | -------------
ingalls             | $ 9943                  | $ 1422                    | $ 11365                        | $ 5920                  | $ 2071                    | $ 7991
newport news        | 6767                    | 4144                      | 10911                          | 6976                    | 5608                      | 12584
technical solutions | 339                     | 380                       | 719                            | 478                     | 314                       | 792
total backlog       | $ 17049                 | $ 5946                    | $ 22995                        | $ 13374                 | $ 7993                    | $ 21367

we expect approximately 30% ( 30 % ) of the $ 23 billion total backlog as of december 31 , 2018 , to be converted into sales in 2019 .
u.s .
government orders comprised substantially all of the backlog as of december 31 , 2018 and 2017 .
awards 2018 - the value of new contract awards during the year ended december 31 , 2018 , was approximately $ 9.8 billion .
significant new awards during the period included contracts for the construction of three arleigh burke class ( ddg 51 ) destroyers , for the detail design and construction of richard m .
mccool jr .
( lpd 29 ) , for procurement of long-lead-time material for enterprise ( cvn 80 ) , and for the construction of nsc 10 ( unnamed ) and nsc 11 ( unnamed ) .
in addition , we received awards in 2019 valued at $ 15.2 billion for detail design and construction of the gerald r .
ford class ( cvn 78 ) aircraft carriers enterprise ( cvn 80 ) and cvn 81 ( unnamed ) .
2017 - the value of new contract awards during the year ended december 31 , 2017 , was approximately $ 8.1 billion .
significant new awards during this period included the detailed design and construction contract for bougainville ( lha 8 ) and the execution contract for the rcoh of uss george washington ( cvn 73 ) .


information about stock options at december 31 , 2007 follows: .

december 31 2007shares in thousandsrange of exercise prices | options outstanding shares | options outstanding weighted- averageexercise price | options outstanding weighted-average remaining contractual life ( in years ) | options outstanding shares | weighted-averageexercise price
----------------------------------------------------------- | -------------------------- | --------------------------------------------------- | ---------------------------------------------------------------------------- | -------------------------- | ------------------------------
$ 37.43 2013 $ 46.99                                        | 1444                       | $ 43.05                                             | 4.0                                                                          | 1444                       | $ 43.05
47.00 2013 56.99                                            | 3634                       | 53.43                                               | 5.4                                                                          | 3022                       | 53.40
57.00 2013 66.99                                            | 3255                       | 60.32                                               | 5.2                                                                          | 2569                       | 58.96
67.00 2013 76.23                                            | 5993                       | 73.03                                               | 5.5                                                                          | 3461                       | 73.45
total                                                       | 14326                      | $ 62.15                                             | 5.3                                                                          | 10496                      | $ 59.95

( a ) the weighted-average remaining contractual life was approximately 4.2 years .
at december 31 , 2007 , there were approximately 13788000 options in total that were vested and are expected to vest .
the weighted-average exercise price of such options was $ 62.07 per share , the weighted-average remaining contractual life was approximately 5.2 years , and the aggregate intrinsic value at december 31 , 2007 was approximately $ 92 million .
stock options granted in 2005 include options for 30000 shares that were granted to non-employee directors that year .
no such options were granted in 2006 or 2007 .
awards granted to non-employee directors in 2007 include 20944 deferred stock units awarded under the outside directors deferred stock unit plan .
a deferred stock unit is a phantom share of our common stock , which requires liability accounting treatment under sfas 123r until such awards are paid to the participants as cash .
as there are no vestings or service requirements on these awards , total compensation expense is recognized in full on all awarded units on the date of grant .
the weighted-average grant-date fair value of options granted in 2007 , 2006 and 2005 was $ 11.37 , $ 10.75 and $ 9.83 per option , respectively .
to determine stock-based compensation expense under sfas 123r , the grant-date fair value is applied to the options granted with a reduction made for estimated forfeitures .
at december 31 , 2006 and 2005 options for 10743000 and 13582000 shares of common stock , respectively , were exercisable at a weighted-average price of $ 58.38 and $ 56.58 , respectively .
the total intrinsic value of options exercised during 2007 , 2006 and 2005 was $ 52 million , $ 111 million and $ 31 million , respectively .
at december 31 , 2007 the aggregate intrinsic value of all options outstanding and exercisable was $ 94 million and $ 87 million , respectively .
cash received from option exercises under all incentive plans for 2007 , 2006 and 2005 was approximately $ 111 million , $ 233 million and $ 98 million , respectively .
the actual tax benefit realized for tax deduction purposes from option exercises under all incentive plans for 2007 , 2006 and 2005 was approximately $ 39 million , $ 82 million and $ 34 million , respectively .
there were no options granted in excess of market value in 2007 , 2006 or 2005 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were 40116726 at december 31 , 2007 .
total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 41787400 shares at december 31 , 2007 , which includes shares available for issuance under the incentive plans , the employee stock purchase plan as described below , and a director plan .
during 2007 , we issued approximately 2.1 million shares from treasury stock in connection with stock option exercise activity .
as with past exercise activity , we intend to utilize treasury stock for future stock option exercises .
as discussed in note 1 accounting policies , we adopted the fair value recognition provisions of sfas 123 prospectively to all employee awards including stock options granted , modified or settled after january 1 , 2003 .
as permitted under sfas 123 , we recognized compensation expense for stock options on a straight-line basis over the pro rata vesting period .
total compensation expense recognized related to pnc stock options in 2007 was $ 29 million compared with $ 31 million in 2006 and $ 29 million in 2005 .
pro forma effects a table is included in note 1 accounting policies that sets forth pro forma net income and basic and diluted earnings per share as if compensation expense had been recognized under sfas 123 and 123r , as amended , for stock options for 2005 .
for purposes of computing stock option expense and 2005 pro forma results , we estimated the fair value of stock options using the black-scholes option pricing model .
the model requires the use of numerous assumptions , many of which are very subjective .
therefore , the 2005 pro forma results are estimates of results of operations as if compensation expense had been recognized for all stock-based compensation awards and are not indicative of the impact on future periods.


the following graph compares the cumulative 4-year total stockholder return on our common stock relative to the cumulative total return of the nasdaq composite index and the s&p 400 information technology index .
the graph assumes that the value of the investment in our common stock and in each index ( including reinvestment of dividends ) was $ 100 on january 3 , 2009 and tracks it through december 29 , 2012 .
comparison of 4 year cumulative total return* among cadence design systems , inc. , the nasdaq composite index , and s&p 400 information technology cadence design systems , inc .
nasdaq composite s&p 400 information technology 12/29/121/1/11 12/31/111/2/101/3/09 *$ 100 invested on 1/3/09 in stock or 12/31/08 in index , including reinvestment of dividends .
indexes calculated on month-end basis .
copyright a9 2013 s&p , a division of the mcgraw-hill companies all rights reserved. .

                               | 1/3/2009 | 1/2/2010 | 1/1/2011 | 12/31/2011 | 12/29/2012
------------------------------ | -------- | -------- | -------- | ---------- | ----------
cadence design systems inc .   | 100.00   | 155.99   | 215.10   | 270.83     | 350.00
nasdaq composite               | 100.00   | 139.32   | 164.84   | 167.06     | 187.66
s&p 400 information technology | 100.00   | 151.58   | 198.02   | 174.88     | 201.26

the stock price performance included in this graph is not necessarily indicative of future stock price performance.


the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements the firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications .
however , management believes that it is unlikely the firm will have to make any material payments under these arrangements , and no material liabilities related to these guarantees and indemnifications have been recognized in the consolidated statements of financial condition as of both december 2017 and december 2016 .
other representations , warranties and indemnifications .
the firm provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties .
the firm may also provide indemnifications protecting against changes in or adverse application of certain u.s .
tax laws in connection with ordinary-course transactions such as securities issuances , borrowings or derivatives .
in addition , the firm may provide indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld , due either to a change in or an adverse application of certain non-u.s .
tax laws .
these indemnifications generally are standard contractual terms and are entered into in the ordinary course of business .
generally , there are no stated or notional amounts included in these indemnifications , and the contingencies triggering the obligation to indemnify are not expected to occur .
the firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications .
however , management believes that it is unlikely the firm will have to make any material payments under these arrangements , and no material liabilities related to these arrangements have been recognized in the consolidated statements of financial condition as of both december 2017 and december 2016 .
guarantees of subsidiaries .
group inc .
fully and unconditionally guarantees the securities issued by gs finance corp. , a wholly-owned finance subsidiary of the firm .
group inc .
has guaranteed the payment obligations of goldman sachs & co .
llc ( gs&co. ) and gs bank usa , subject to certain exceptions .
in addition , group inc .
guarantees many of the obligations of its other consolidated subsidiaries on a transaction-by-transaction basis , as negotiated with counterparties .
group inc .
is unable to develop an estimate of the maximum payout under its subsidiary guarantees ; however , because these guaranteed obligations are also obligations of consolidated subsidiaries , group inc . 2019s liabilities as guarantor are not separately disclosed .
note 19 .
shareholders 2019 equity common equity as of both december 2017 and december 2016 , the firm had 4.00 billion authorized shares of common stock and 200 million authorized shares of nonvoting common stock , each with a par value of $ 0.01 per share .
dividends declared per common share were $ 2.90 in 2017 , $ 2.60 in 2016 and $ 2.55 in 2015 .
on january 16 , 2018 , the board of directors of group inc .
( board ) declared a dividend of $ 0.75 per common share to be paid on march 29 , 2018 to common shareholders of record on march 1 , 2018 .
the firm 2019s share repurchase program is intended to help maintain the appropriate level of common equity .
the share repurchase program is effected primarily through regular open-market purchases ( which may include repurchase plans designed to comply with rule 10b5-1 ) , the amounts and timing of which are determined primarily by the firm 2019s current and projected capital position , but which may also be influenced by general market conditions and the prevailing price and trading volumes of the firm 2019s common stock .
prior to repurchasing common stock , the firm must receive confirmation that the frb does not object to such capital action .
the table below presents the amount of common stock repurchased by the firm under the share repurchase program. .

in millions except per share amounts   | year ended december 2017 | year ended december 2016 | year ended december 2015
-------------------------------------- | ------------------------ | ------------------------ | ------------------------
common share repurchases               | 29.0                     | 36.6                     | 22.1
average cost per share                 | $ 231.87                 | $ 165.88                 | $ 189.41
total cost of common share repurchases | $ 6721                   | $ 6069                   | $ 4195

pursuant to the terms of certain share-based compensation plans , employees may remit shares to the firm or the firm may cancel rsus or stock options to satisfy minimum statutory employee tax withholding requirements and the exercise price of stock options .
under these plans , during 2017 , 2016 and 2015 , 12165 shares , 49374 shares and 35217 shares were remitted with a total value of $ 3 million , $ 7 million and $ 6 million , and the firm cancelled 8.1 million , 6.1 million and 5.7 million of rsus with a total value of $ 1.94 billion , $ 921 million and $ 1.03 billion , respectively .
under these plans , the firm also cancelled 4.6 million , 5.5 million and 2.0 million of stock options with a total value of $ 1.09 billion , $ 1.11 billion and $ 406 million during 2017 , 2016 and 2015 , respectively .
166 goldman sachs 2017 form 10-k


we cannot assure you that the gener restructuring will be completed or that the terms thereof will not be changed materially .
in addition , gener is in the process of restructuring the debt of its subsidiaries , termoandes s.a .
( 2018 2018termoandes 2019 2019 ) and interandes , s.a .
( 2018 2018interandes 2019 2019 ) , and expects that the maturities of these obligations will be extended .
under-performing businesses during 2003 we sold or discontinued under-performing businesses and construction projects that did not meet our investment criteria or did not provide reasonable opportunities to restructure .
it is anticipated that there will be less ongoing activity related to write-offs of development or construction projects and impairment charges in the future .
the businesses , which were affected in 2003 , are listed below .
impairment project name project type date location ( in millions ) .

project name   | project type | date          | location           | impairment ( in millions )
-------------- | ------------ | ------------- | ------------------ | --------------------------
ede este ( 1 ) | operating    | december 2003 | dominican republic | $ 60
wolf hollow    | operating    | december 2003 | united states      | $ 120
granite ridge  | operating    | december 2003 | united states      | $ 201
colombia i     | operating    | november 2003 | colombia           | $ 19
zeg            | construction | december 2003 | poland             | $ 23
bujagali       | construction | august 2003   | uganda             | $ 76
el faro        | construction | april 2003    | honduras           | $ 20

( 1 ) see note 4 2014discontinued operations .
improving credit quality our de-leveraging efforts reduced parent level debt by $ 1.2 billion in 2003 ( including the secured equity-linked loan previously issued by aes new york funding l.l.c. ) .
we refinanced and paid down near-term maturities by $ 3.5 billion and enhanced our year-end liquidity to over $ 1 billion .
our average debt maturity was extended from 2009 to 2012 .
at the subsidiary level we continue to pursue limited recourse financing to reduce parent credit risk .
these factors resulted in an overall reduced cost of capital , improved credit statistics and expanded access to credit at both aes and our subsidiaries .
liquidity at the aes parent level is an important factor for the rating agencies in determining whether the company 2019s credit quality should improve .
currency and political risk tend to be biggest variables to sustaining predictable cash flow .
the nature of our large contractual and concession-based cash flow from these businesses serves to mitigate these variables .
in 2003 , over 81% ( 81 % ) of cash distributions to the parent company were from u.s .
large utilities and worldwide contract generation .
on february 4 , 2004 , we called for redemption of $ 155049000 aggregate principal amount of outstanding 8% ( 8 % ) senior notes due 2008 , which represents the entire outstanding principal amount of the 8% ( 8 % ) senior notes due 2008 , and $ 34174000 aggregate principal amount of outstanding 10% ( 10 % ) secured senior notes due 2005 .
the 8% ( 8 % ) senior notes due 2008 and the 10% ( 10 % ) secured senior notes due 2005 were redeemed on march 8 , 2004 at a redemption price equal to 100% ( 100 % ) of the principal amount plus accrued and unpaid interest to the redemption date .
the mandatory redemption of the 10% ( 10 % ) secured senior notes due 2005 was being made with a portion of our 2018 2018adjusted free cash flow 2019 2019 ( as defined in the indenture pursuant to which the notes were issued ) for the fiscal year ended december 31 , 2003 as required by the indenture and was made on a pro rata basis .
on february 13 , 2004 we issued $ 500 million of unsecured senior notes .
the unsecured senior notes mature on march 1 , 2014 and are callable at our option at any time at a redemption price equal to 100% ( 100 % ) of the principal amount of the unsecured senior notes plus a make-whole premium .
the unsecured senior notes were issued at a price of 98.288% ( 98.288 % ) and pay interest semi-annually at an annual


guarantees and warranties in april 2015 , we entered into joint venture arrangements in saudi arabia .
an equity bridge loan has been provided to the joint venture until 2020 to fund equity commitments , and we guaranteed the repayment of our 25% ( 25 % ) share of this loan .
our venture partner guaranteed repayment of their share .
our maximum exposure under the guarantee is approximately $ 100 .
as of 30 september 2015 , we recorded a noncurrent liability of $ 67.5 for our obligation to make future equity contributions based on the equity bridge loan .
air products has also entered into a sale of equipment contract with the joint venture to engineer , procure , and construct the industrial gas facilities that will supply gases to saudi aramco .
we will provide bank guarantees to the joint venture of up to $ 326 to support our performance under the contract .
we are party to an equity support agreement and operations guarantee related to an air separation facility constructed in trinidad for a venture in which we own 50% ( 50 % ) .
at 30 september 2015 , maximum potential payments under joint and several guarantees were $ 30.0 .
exposures under the guarantee decline over time and will be completely extinguished by 2024 .
during the first quarter of 2014 , we sold the remaining portion of our homecare business and entered into an operations guarantee related to obligations under certain homecare contracts assigned in connection with the transaction .
our maximum potential payment under the guarantee is a320 million ( approximately $ 30 at 30 september 2015 ) , and our exposure will be extinguished by 2020 .
to date , no equity contributions or payments have been made since the inception of these guarantees .
the fair value of the above guarantees is not material .
we , in the normal course of business operations , have issued product warranties related to equipment sales .
also , contracts often contain standard terms and conditions which typically include a warranty and indemnification to the buyer that the goods and services purchased do not infringe on third-party intellectual property rights .
the provision for estimated future costs relating to warranties is not material to the consolidated financial statements .
we do not expect that any sum we may have to pay in connection with guarantees and warranties will have a material adverse effect on our consolidated financial condition , liquidity , or results of operations .
unconditional purchase obligations we are obligated to make future payments under unconditional purchase obligations as summarized below: .

2016       | $ 917
---------- | ------
2017       | 117
2018       | 63
2019       | 55
2020       | 54
thereafter | 164
total      | $ 1370

approximately $ 390 of our long-term unconditional purchase obligations relate to feedstock supply for numerous hyco ( hydrogen , carbon monoxide , and syngas ) facilities .
the price of feedstock supply is principally related to the price of natural gas .
however , long-term take-or-pay sales contracts to hyco customers are generally matched to the term of the feedstock supply obligations and provide recovery of price increases in the feedstock supply .
due to the matching of most long-term feedstock supply obligations to customer sales contracts , we do not believe these purchase obligations would have a material effect on our financial condition or results of operations .
the unconditional purchase obligations also include other product supply and purchase commitments and electric power and natural gas supply purchase obligations , which are primarily pass-through contracts with our customers .
purchase commitments to spend approximately $ 540 for additional plant and equipment are included in the unconditional purchase obligations in 2016.


12 .
brokerage receivables and brokerage payables citi has receivables and payables for financial instruments sold to and purchased from brokers , dealers and customers , which arise in the ordinary course of business .
citi is exposed to risk of loss from the inability of brokers , dealers or customers to pay for purchases or to deliver the financial instruments sold , in which case citi would have to sell or purchase the financial instruments at prevailing market prices .
credit risk is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transaction and replaces the broker , dealer or customer in question .
citi seeks to protect itself from the risks associated with customer activities by requiring customers to maintain margin collateral in compliance with regulatory and internal guidelines .
margin levels are monitored daily , and customers deposit additional collateral as required .
where customers cannot meet collateral requirements , citi may liquidate sufficient underlying financial instruments to bring the customer into compliance with the required margin level .
exposure to credit risk is impacted by market volatility , which may impair the ability of clients to satisfy their obligations to citi .
credit limits are established and closely monitored for customers and for brokers and dealers engaged in forwards , futures and other transactions deemed to be credit sensitive .
brokerage receivables and brokerage payables consisted of the following: .

in millions of dollars                                      | december 31 , 2017 | december 31 , 2016
----------------------------------------------------------- | ------------------ | ------------------
receivables from customers                                  | $ 19215            | $ 10374
receivables from brokers dealers and clearing organizations | 19169              | 18513
total brokerage receivables ( 1 )                           | $ 38384            | $ 28887
payables to customers                                       | $ 38741            | $ 37237
payables to brokers dealers and clearing organizations      | 22601              | 19915
total brokerage payables ( 1 )                              | $ 61342            | $ 57152

payables to brokers , dealers and clearing organizations 22601 19915 total brokerage payables ( 1 ) $ 61342 $ 57152 ( 1 ) includes brokerage receivables and payables recorded by citi broker- dealer entities that are accounted for in accordance with the aicpa accounting guide for brokers and dealers in securities as codified in asc 940-320.


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) the company has selected december 1 as the date to perform its annual impairment test .
in performing its 2005 and 2004 testing , the company completed an internal appraisal and estimated the fair value of the rental and management reporting unit that contains goodwill utilizing future discounted cash flows and market information .
based on the appraisals performed , the company determined that goodwill in its rental and management segment was not impaired .
the company 2019s other intangible assets subject to amortization consist of the following as of december 31 , ( in thousands ) : .

                                                        | 2005               | 2004
------------------------------------------------------- | ------------------ | ------------------
acquired customer base and network location intangibles | $ 2606546          | $ 1369607
deferred financing costs                                | 65623              | 89736
acquired licenses and other intangibles                 | 51703              | 43404
total                                                   | 2723872            | 1502747
less accumulated amortization                           | -646560 ( 646560 ) | -517444 ( 517444 )
other intangible assets net                             | $ 2077312          | $ 985303

the company amortizes its intangible assets over periods ranging from three to fifteen years .
amortization of intangible assets for the years ended december 31 , 2005 and 2004 aggregated approximately $ 136.0 million and $ 97.8 million , respectively ( excluding amortization of deferred financing costs , which is included in interest expense ) .
the company expects to record amortization expense of approximately $ 183.6 million , $ 178.3 million , $ 174.4 million , $ 172.7 million and $ 170.3 million , for the years ended december 31 , 2006 , 2007 , 2008 , 2009 and 2010 , respectively .
these amounts are subject to changes in estimates until the preliminary allocation of the spectrasite purchase price is finalized .
6 .
notes receivable in 2000 , the company loaned tv azteca , s.a .
de c.v .
( tv azteca ) , the owner of a major national television network in mexico , $ 119.8 million .
the loan , which initially bore interest at 12.87% ( 12.87 % ) , payable quarterly , was discounted by the company , as the fair value interest rate at the date of the loan was determined to be 14.25% ( 14.25 % ) .
the loan was amended effective january 1 , 2003 to increase the original interest rate to 13.11% ( 13.11 % ) .
as of december 31 , 2005 and 2004 , approximately $ 119.8 million undiscounted ( $ 108.2 million discounted ) under the loan was outstanding and included in notes receivable and other long-term assets in the accompanying consolidated balance sheets .
the term of the loan is seventy years ; however , the loan may be prepaid by tv azteca without penalty during the last fifty years of the agreement .
the discount on the loan is being amortized to interest income 2014tv azteca , net , using the effective interest method over the seventy-year term of the loan .
simultaneous with the signing of the loan agreement , the company also entered into a seventy year economic rights agreement with tv azteca regarding space not used by tv azteca on approximately 190 of its broadcast towers .
in exchange for the issuance of the below market interest rate loan discussed above and the annual payment of $ 1.5 million to tv azteca ( under the economic rights agreement ) , the company has the right to market and lease the unused tower space on the broadcast towers ( the economic rights ) .
tv azteca retains title to these towers and is responsible for their operation and maintenance .
the company is entitled to 100% ( 100 % ) of the revenues generated from leases with tenants on the unused space and is responsible for any incremental operating expenses associated with those tenants.


deferred tax assets and liabilities are recorded in the accompanying consolidated balance sheet under the captions deferred income tax assets , deferred charges and other assets , other accrued liabilities and deferred income taxes .
the decrease in 2009 in deferred tax assets principally relates to the tax impact of changes in recorded qualified pension liabilities , minimum tax credit utilization and an increase in the valuation allowance .
the decrease in deferred income tax liabilities principally relates to less tax depreciation taken on the company 2019s assets purchased in 2009 .
the valuation allowance for deferred tax assets as of december 31 , 2008 was $ 72 million .
the net change in the total valuation allowance for the year ended december 31 , 2009 , was an increase of $ 274 million .
the increase of $ 274 million consists primarily of : ( 1 ) $ 211 million related to the company 2019s french operations , including a valuation allowance of $ 55 million against net deferred tax assets from current year operations and $ 156 million recorded in the second quarter of 2009 for the establishment of a valuation allowance against previously recorded deferred tax assets , ( 2 ) $ 10 million for net deferred tax assets arising from the company 2019s united king- dom current year operations , and ( 3 ) $ 47 million related to a reduction of previously recorded u.s .
state deferred tax assets , including $ 15 million recorded in the fourth quarter of 2009 for louisiana recycling credits .
the effect on the company 2019s effec- tive tax rate of the aforementioned $ 211 million and $ 10 million is included in the line item 201ctax rate and permanent differences on non-u.s .
earnings . 201d international paper adopted the provisions of new guidance under asc 740 , 201cincome taxes , 201d on jan- uary 1 , 2007 related to uncertain tax positions .
as a result of the implementation of this new guidance , the company recorded a charge to the beginning balance of retained earnings of $ 94 million , which was accounted for as a reduction to the january 1 , 2007 balance of retained earnings .
a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ending december 31 , 2009 and 2008 is as follows : in millions 2009 2008 2007 .

in millions                                              | 2009           | 2008           | 2007
-------------------------------------------------------- | -------------- | -------------- | --------------
balance at january 1                                     | $ -435 ( 435 ) | $ -794 ( 794 ) | -919 ( 919 )
additions based on tax positions related to current year | -28 ( 28 )     | -14 ( 14 )     | -12 ( 12 )
additions for tax positions of prior years               | -82 ( 82 )     | -66 ( 66 )     | -30 ( 30 )
reductions for tax positions of prior years              | 72             | 67             | 74
settlements                                              | 174            | 352            | 112
expiration of statutes of limitations                    | 2              | 3              | 5
currency translation adjustment                          | -11 ( 11 )     | 17             | -24 ( 24 )
balance at december 31                                   | $ -308 ( 308 ) | $ -435 ( 435 ) | $ -794 ( 794 )

included in the balance at december 31 , 2009 and 2008 are $ 56 million and $ 9 million , respectively , for tax positions for which the ultimate benefits are highly certain , but for which there is uncertainty about the timing of such benefits .
however , except for the possible effect of any penalties , any dis- allowance that would change the timing of these benefits would not affect the annual effective tax rate , but would accelerate the payment of cash to the taxing authority to an earlier period .
the company accrues interest on unrecognized tax benefits as a component of interest expense .
penal- ties , if incurred , are recognized as a component of income tax expense .
the company had approx- imately $ 95 million and $ 74 million accrued for the payment of estimated interest and penalties asso- ciated with unrecognized tax benefits at december 31 , 2009 and 2008 , respectively .
the major jurisdictions where the company files income tax returns are the united states , brazil , france , poland and russia .
generally , tax years 2002 through 2009 remain open and subject to examina- tion by the relevant tax authorities .
the company is typically engaged in various tax examinations at any given time , both in the united states and overseas .
currently , the company is engaged in discussions with the u.s .
internal revenue service regarding the examination of tax years 2006 and 2007 .
as a result of these discussions , other pending tax audit settle- ments , and the expiration of statutes of limitation , the company currently estimates that the amount of unrecognized tax benefits could be reduced by up to $ 125 million during the next twelve months .
during 2009 , unrecognized tax benefits decreased by $ 127 million .
while the company believes that it is adequately accrued for possible audit adjustments , the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates .
the company 2019s 2009 income tax provision of $ 469 million included $ 279 million related to special items and other charges , consisting of a $ 534 million tax benefit related to restructuring and other charges , a $ 650 million tax expense for the alternative fuel mixture credit , and $ 163 million of tax-related adjustments including a $ 156 million tax expense to establish a valuation allowance for net operating loss carryforwards in france , a $ 26 million tax benefit for the effective settlement of federal tax audits , a $ 15 million tax expense to establish a valuation allow- ance for louisiana recycling credits , and $ 18 million of other income tax adjustments .
excluding the impact of special items , the tax provision was


page 38 five years .
the amounts ultimately applied against our offset agreements are based on negotiations with the customer and generally require cash outlays that represent only a fraction of the original amount in the offset agreement .
at december 31 , 2005 , we had outstanding offset agreements totaling $ 8.4 bil- lion , primarily related to our aeronautics segment , that extend through 2015 .
to the extent we have entered into purchase obligations at december 31 , 2005 that also satisfy offset agree- ments , those amounts are included in the preceding table .
we have entered into standby letter of credit agreements and other arrangements with financial institutions and custom- ers mainly relating to advances received from customers and/or the guarantee of future performance on some of our contracts .
at december 31 , 2005 , we had outstanding letters of credit , surety bonds and guarantees , as follows : commitment expiration by period ( in millions ) commitment 1 year ( a ) years ( a ) standby letters of credit $ 2630 $ 2425 $ 171 $ 18 $ 16 .

( in millions )           | commitment expiration by period total commitment | commitment expiration by period less than 1 year ( a ) | commitment expiration by period 1-3 years ( a ) | commitment expiration by period 3-5 years | commitment expiration by period after 5 years
------------------------- | ------------------------------------------------ | ------------------------------------------------------ | ----------------------------------------------- | ----------------------------------------- | ---------------------------------------------
standby letters of credit | $ 2630                                           | $ 2425                                                 | $ 171                                           | $ 18                                      | $ 16
surety bonds              | 434                                              | 79                                                     | 352                                             | 3                                         | 2014
guarantees                | 2                                                | 1                                                      | 1                                               | 2014                                      | 2014
total commitments         | $ 3066                                           | $ 2505                                                 | $ 524                                           | $ 21                                      | $ 16

( a ) approximately $ 2262 million and $ 49 million of standby letters of credit in the 201cless than 1 year 201d and 201c1-3 year 201d periods , respectively , and approximately $ 38 million of surety bonds in the 201cless than 1 year 201d period are expected to renew for additional periods until completion of the contractual obligation .
included in the table above is approximately $ 200 million representing letter of credit and surety bond amounts for which related obligations or liabilities are also recorded in the bal- ance sheet , either as reductions of inventories , as customer advances and amounts in excess of costs incurred , or as other liabilities .
approximately $ 2 billion of the standby letters of credit in the table above were to secure advance payments received under an f-16 contract from an international cus- tomer .
these letters of credit are available for draw down in the event of our nonperformance , and the amount available will be reduced as certain events occur throughout the period of performance in accordance with the contract terms .
similar to the letters of credit for the f-16 contract , other letters of credit and surety bonds are available for draw down in the event of our nonperformance .
at december 31 , 2005 , we had no material off-balance sheet arrangements as those arrangements are defined by the securities and exchange commission ( sec ) .
quantitative and qualitative disclosure of market risk our main exposure to market risk relates to interest rates and foreign currency exchange rates .
our financial instruments that are subject to interest rate risk principally include fixed- rate and floating rate long-term debt .
if interest rates were to change by plus or minus 1% ( 1 % ) , interest expense would increase or decrease by approximately $ 10 million related to our float- ing rate debt .
the estimated fair values of the corporation 2019s long-term debt instruments at december 31 , 2005 aggregated approximately $ 6.2 billion , compared with a carrying amount of approximately $ 5.0 billion .
the majority of our long-term debt obligations are not callable until maturity .
we have used interest rate swaps in the past to manage our exposure to fixed and variable interest rates ; however , at year-end 2005 , we had no such agreements in place .
we use forward foreign exchange contracts to manage our exposure to fluctuations in foreign currency exchange rates , and do so in ways that qualify for hedge accounting treatment .
these exchange contracts hedge the fluctuations in cash flows associated with firm commitments or specific anticipated transactions contracted in foreign currencies , or hedge the exposure to rate changes affecting foreign currency denomi- nated assets or liabilities .
related gains and losses on these contracts , to the extent they are effective hedges , are recog- nized in income at the same time the hedged transaction is recognized or when the hedged asset or liability is adjusted .
to the extent the hedges are ineffective , gains and losses on the contracts are recognized in the current period .
at december 31 , 2005 , the fair value of forward exchange con- tracts outstanding , as well as the amounts of gains and losses recorded during the year then ended , were not material .
we do not hold or issue derivative financial instruments for trad- ing or speculative purposes .
recent accounting pronouncements in december 2004 , the fasb issued fas 123 ( r ) , share- based payments , which will impact our net earnings and earn- ings per share and change the classification of certain elements of the statement of cash flows .
fas 123 ( r ) requires stock options and other share-based payments made to employees to be accounted for as compensation expense and recorded at fair lockheed martin corporation management 2019s discussion and analysis of financial condition and results of operations december 31 , 2005


volatility of capital markets or macroeconomic factors could adversely affect our business .
changes in financial and capital markets , including market disruptions , limited liquidity , uncertainty regarding brexit , and interest rate volatility , including as a result of the use or discontinued use of certain benchmark rates such as libor , may increase the cost of financing as well as the risks of refinancing maturing debt .
in addition , our borrowing costs can be affected by short and long-term ratings assigned by rating organizations .
a decrease in these ratings could limit our access to capital markets and increase our borrowing costs , which could materially and adversely affect our financial condition and operating results .
some of our customers and counterparties are highly leveraged .
consolidations in some of the industries in which our customers operate have created larger customers , some of which are highly leveraged and facing increased competition and continued credit market volatility .
these factors have caused some customers to be less profitable , increasing our exposure to credit risk .
a significant adverse change in the financial and/or credit position of a customer or counterparty could require us to assume greater credit risk relating to that customer or counterparty and could limit our ability to collect receivables .
this could have an adverse impact on our financial condition and liquidity .
item 1b .
unresolved staff comments .
item 2 .
properties .
our corporate co-headquarters are located in pittsburgh , pennsylvania and chicago , illinois .
our co-headquarters are leased and house certain executive offices , our u.s .
business units , and our administrative , finance , legal , and human resource functions .
we maintain additional owned and leased offices throughout the regions in which we operate .
we manufacture our products in our network of manufacturing and processing facilities located throughout the world .
as of december 29 , 2018 , we operated 84 manufacturing and processing facilities .
we own 81 and lease three of these facilities .
our manufacturing and processing facilities count by segment as of december 29 , 2018 was: .

              | owned | leased
------------- | ----- | ------
united states | 40    | 1
canada        | 2     | 2014
emea          | 12    | 2014
rest of world | 27    | 2

we maintain all of our manufacturing and processing facilities in good condition and believe they are suitable and are adequate for our present needs .
we also enter into co-manufacturing arrangements with third parties if we determine it is advantageous to outsource the production of any of our products .
in the fourth quarter of 2018 , we announced our plans to divest certain assets and operations , predominantly in canada and india , including one owned manufacturing facility in canada and one owned and one leased facility in india .
see note 5 , acquisitions and divestitures , in item 8 , financial statements and supplementary data , for additional information on these transactions .
item 3 .
legal proceedings .
see note 18 , commitments and contingencies , in item 8 , financial statements and supplementary data .
item 4 .
mine safety disclosures .
not applicable .
part ii item 5 .
market for registrant's common equity , related stockholder matters and issuer purchases of equity securities .
our common stock is listed on nasdaq under the ticker symbol 201ckhc 201d .
at june 5 , 2019 , there were approximately 49000 holders of record of our common stock .
see equity and dividends in item 7 , management 2019s discussion and analysis of financial condition and results of operations , for a discussion of cash dividends declared on our common stock.


a valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized .
changes to our valuation allowance during the year ended december 31 , 2017 , the 2016 fiscal transition period and the years ended may 31 , 2016 and 2015 are summarized below ( in thousands ) : .

balance at may 31 2014                                                    | $ -7199 ( 7199 )
------------------------------------------------------------------------- | ------------------
utilization of foreign net operating loss carryforwards                   | 3387
other                                                                     | -11 ( 11 )
balance at may 31 2015                                                    | -3823 ( 3823 )
allowance for foreign income tax credit carryforward                      | -7140 ( 7140 )
allowance for domestic net operating loss carryforwards                   | -4474 ( 4474 )
allowance for domestic net unrealized capital loss                        | -1526 ( 1526 )
release of allowance of domestic capital loss carryforward                | 1746
other                                                                     | 98
balance at may 31 2016                                                    | -15119 ( 15119 )
allowance for domestic net operating loss carryforwards                   | -1504 ( 1504 )
release of allowance of domestic net unrealized capital loss              | 12
balance at december 31 2016                                               | -16611 ( 16611 )
allowance for foreign net operating loss carryforwards                    | -6469 ( 6469 )
allowance for domestic net operating loss carryforwards                   | -3793 ( 3793 )
allowance for state credit carryforwards                                  | -685 ( 685 )
rate change on domestic net operating loss and capital loss carryforwards | 3868
utilization of foreign income tax credit carryforward                     | 7140
balance at december 31 2017                                               | $ -16550 ( 16550 )

the increase in the valuation allowance related to net operating loss carryforwards of $ 10.3 million for the year ended december 31 , 2017 relates primarily to carryforward assets recorded as part of the acquisition of active network .
the increase in the valuation allowance related to domestic net operating loss carryforwards of $ 1.5 million and $ 4.5 million for the 2016 fiscal transition period and the year ended may 31 , 2016 , respectively , relates to acquired carryforwards from the merger with heartland .
foreign net operating loss carryforwards of $ 43.2 million and domestic net operating loss carryforwards of $ 28.9 million at december 31 , 2017 will expire between december 31 , 2026 and december 31 , 2037 if not utilized .
we conduct business globally and file income tax returns in the domestic federal jurisdiction and various state and foreign jurisdictions .
in the normal course of business , we are subject to examination by taxing authorities around the world .
we are no longer subjected to state income tax examinations for years ended on or before may 31 , 2008 , u.s .
federal income tax examinations for years ended on or before december 31 , 2013 and u.k .
federal income tax examinations for years ended on or before may 31 , 2014 .
88 2013 global payments inc .
| 2017 form 10-k annual report


entergy new orleans , inc .
and subsidiaries management 2019s financial discussion and analysis results of operations net income 2016 compared to 2015 net income increased $ 3.9 million primarily due to higher net revenue , partially offset by higher depreciation and amortization expenses , higher interest expense , and lower other income .
2015 compared to 2014 net income increased $ 13.9 million primarily due to lower other operation and maintenance expenses and higher net revenue , partially offset by a higher effective income tax rate .
net revenue 2016 compared to 2015 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .
following is an analysis of the change in net revenue comparing 2016 to 2015 .
amount ( in millions ) .

                      | amount ( in millions )
--------------------- | ----------------------
2015 net revenue      | $ 293.9
retail electric price | 39.0
net gas revenue       | -2.5 ( 2.5 )
volume/weather        | -5.1 ( 5.1 )
other                 | -8.1 ( 8.1 )
2016 net revenue      | $ 317.2

the retail electric price variance is primarily due to an increase in the purchased power and capacity acquisition cost recovery rider , as approved by the city council , effective with the first billing cycle of march 2016 , primarily related to the purchase of power block 1 of the union power station .
see note 14 to the financial statements for discussion of the union power station purchase .
the net gas revenue variance is primarily due to the effect of less favorable weather on residential and commercial sales .
the volume/weather variance is primarily due to a decrease of 112 gwh , or 2% ( 2 % ) , in billed electricity usage , partially offset by the effect of favorable weather on commercial sales and a 2% ( 2 % ) increase in the average number of electric customers.


undistributed earnings of $ 696.9 million from certain foreign subsidiaries are considered to be permanently reinvested abroad and will not be repatriated to the united states in the foreseeable future .
because those earnings are considered to be indefinitely reinvested , no domestic federal or state deferred income taxes have been provided thereon .
if we were to make a distribution of any portion of those earnings in the form of dividends or otherwise , we would be subject to both u.s .
income taxes ( subject to an adjustment for foreign tax credits ) and withholding taxes payable to the various foreign jurisdictions .
because of the availability of u.s .
foreign tax credit carryforwards , it is not practicable to determine the domestic federal income tax liability that would be payable if such earnings were no longer considered to be reinvested indefinitely .
a valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized .
changes to our valuation allowance during the years ended may 31 , 2015 and 2014 are summarized below ( in thousands ) : .

balance at may 31 2013                                  | $ -28464 ( 28464 )
------------------------------------------------------- | ------------------
utilization of foreign net operating loss carryforwards | 2822
allowance for foreign tax credit carryforward           | 18061
other                                                   | 382
balance at may 31 2014                                  | -7199 ( 7199 )
utilization of foreign net operating loss carryforwards | 3387
other                                                   | -11 ( 11 )
balance at may 31 2015                                  | $ -3823 ( 3823 )

net operating loss carryforwards of foreign subsidiaries totaling $ 12.4 million and u.s .
net operating loss carryforwards previously acquired totaling $ 19.8 million at may 31 , 2015 will expire between may 31 , 2017 and may 31 , 2033 if not utilized .
capital loss carryforwards of u.s .
subsidiaries totaling $ 4.7 million will expire if not utilized by may 31 , 2017 .
tax credit carryforwards totaling $ 8.4 million at may 31 , 2015 will expire between may 31 , 2017 and may 31 , 2023 if not utilized .
we conduct business globally and file income tax returns in the u.s .
federal jurisdiction and various state and foreign jurisdictions .
in the normal course of business , we are subject to examination by taxing authorities around the world .
as a result of events that occurred in the fourth quarter of the year ended may 31 , 2015 , management concluded that it was more likely than not that the tax positions in a foreign jurisdiction , for which we had recorded estimated liabilities of $ 65.6 million in other noncurrent liabilities on our consolidated balance sheet , would be sustained on their technical merits based on information available as of may 31 , 2015 .
therefore , the liability and corresponding deferred tax assets were eliminated as of may 31 , 2015 .
the uncertain tax positions have been subject to an ongoing examination in that foreign jurisdiction by the tax authority .
discussions and correspondence between the tax authority and us during the fourth quarter indicated that the likelihood of the positions being sustained had increased .
subsequent to may 31 , 2015 , we received a final closure notice regarding the examination resulting in no adjustments to taxable income related to this matter for the tax returns filed for the periods ended may 31 , 2010 through may 31 , 2013 .
the unrecognized tax benefits were effectively settled with this final closure notice .
we are no longer subjected to state income tax examinations for years ended on or before may 31 , 2008 , u.s .
federal income tax examinations for fiscal years prior to 2012 and united kingdom federal income tax examinations for years ended on or before may 31 , 2013 .
78 2013 global payments inc .
| 2015 form 10-k annual report


the following table shows reporting units with goodwill balances as of december 31 , 2010 , and the excess of fair value as a percentage over allocated book value as of the annual impairment test .
in millions of dollars reporting unit ( 1 ) fair value as a % (  % ) of allocated book value goodwill .

reporting unit ( 1 )                    | fair value as a % (  % ) of allocated book value | goodwill
--------------------------------------- | ------------------------------------------------ | --------
north america regional consumer banking | 170% ( 170 % )                                   | $ 2518
emea regional consumer banking          | 168                                              | 338
asia regional consumer banking          | 344                                              | 6045
latin america regional consumer banking | 230                                              | 1800
securities and banking                  | 223                                              | 9259
transaction services                    | 1716                                             | 1567
brokerage and asset management          | 151                                              | 65
local consumer lending 2014cards        | 121                                              | 4560

( 1 ) local consumer lending 2014other is excluded from the table as there is no goodwill allocated to it .
while no impairment was noted in step one of citigroup 2019s local consumer lending 2014cards reporting unit impairment test at july 1 , 2010 , goodwill present in the reporting unit may be sensitive to further deterioration as the valuation of the reporting unit is particularly dependent upon economic conditions that affect consumer credit risk and behavior .
citigroup engaged the services of an independent valuation specialist to assist in the valuation of the reporting unit at july 1 , 2010 , using a combination of the market approach and income approach consistent with the valuation model used in past practice , which considered the impact of the penalty fee provisions associated with the credit card accountability responsibility and disclosure act of 2009 ( card act ) that were implemented during 2010 .
under the market approach for valuing this reporting unit , the key assumption is the selected price multiple .
the selection of the multiple considers the operating performance and financial condition of the local consumer lending 2014cards operations as compared with those of a group of selected publicly traded guideline companies and a group of selected acquired companies .
among other factors , the level and expected growth in return on tangible equity relative to those of the guideline companies and guideline transactions is considered .
since the guideline company prices used are on a minority interest basis , the selection of the multiple considers the guideline acquisition prices , which reflect control rights and privileges , in arriving at a multiple that reflects an appropriate control premium .
for the local consumer lending 2014cards valuation under the income approach , the assumptions used as the basis for the model include cash flows for the forecasted period , the assumptions embedded in arriving at an estimation of the terminal value and the discount rate .
the cash flows for the forecasted period are estimated based on management 2019s most recent projections available as of the testing date , giving consideration to targeted equity capital requirements based on selected public guideline companies for the reporting unit .
in arriving at the terminal value for local consumer lending 2014cards , using 2013 as the terminal year , the assumptions used include a long-term growth rate and a price-to-tangible book multiple based on selected public guideline companies for the reporting unit .
the discount rate is based on the reporting unit 2019s estimated cost of equity capital computed under the capital asset pricing model .
embedded in the key assumptions underlying the valuation model , described above , is the inherent uncertainty regarding the possibility that economic conditions may deteriorate or other events will occur that will impact the business model for local consumer lending 2014cards .
while there is inherent uncertainty embedded in the assumptions used in developing management 2019s forecasts , the company utilized a discount rate at july 1 , 2010 that it believes reflects the risk characteristics and uncertainty specific to management 2019s forecasts and assumptions for the local consumer lending 2014cards reporting unit .
two primary categories of events exist 2014economic conditions in the u.s .
and regulatory actions 2014which , if they were to occur , could negatively affect key assumptions used in the valuation of local consumer lending 2014cards .
small deterioration in the assumptions used in the valuations , in particular the discount-rate and growth-rate assumptions used in the net income projections , could significantly affect citigroup 2019s impairment evaluation and , hence , results .
if the future were to differ adversely from management 2019s best estimate of key economic assumptions , and associated cash flows were to decrease by a small margin , citi could potentially experience future material impairment charges with respect to $ 4560 million of goodwill remaining in the local consumer lending 2014 cards reporting unit .
any such charges , by themselves , would not negatively affect citi 2019s tier 1 and total capital regulatory ratios , tier 1 common ratio , its tangible common equity or citi 2019s liquidity position.


sysco corporation a0- a0form a010-k 3 part a0i item a01 a0business we estimate that our sales by type of customer during the past three fiscal years were as follows: .

type of customer      | 2019           | 2018           | 2017
--------------------- | -------------- | -------------- | --------------
restaurants           | 62% ( 62 % )   | 62% ( 62 % )   | 61% ( 61 % )
education government  | 9              | 8              | 9
travel leisure retail | 9              | 8              | 9
healthcare            | 8              | 9              | 9
other ( 1 )           | 12             | 13             | 12
totals                | 100% ( 100 % ) | 100% ( 100 % ) | 100% ( 100 % )

( 1 ) other includes cafeterias that are not stand-alone restaurants , bakeries , caterers , churches , civic and fraternal organizations , vending distributors , other distributors and international exports .
none of these types of customers , as a group , exceeded 5% ( 5 % ) of total sales in any of the years for which information is presented .
sources of supply we purchase from thousands of suppliers , both domestic and international , none of which individually accounts for more than 10% ( 10 % ) of our purchases .
these suppliers consist generally of large corporations selling brand name and private label merchandise , as well as independent regional brand and private label processors and packers .
we also provide specialty and seasonal products from small to mid-sized producers to meet a growing demand for locally sourced products .
our locally sourced products , including produce , meats , cheese and other products , help differentiate our customers 2019 offerings , satisfy demands for new products , and support local communities .
purchasing is generally carried out through both centrally developed purchasing programs , domestically and internationally , and direct purchasing programs established by our various operating companies .
we administer a consolidated product procurement program designed to develop , obtain and ensure consistent quality food and non-food products .
the program covers the purchasing and marketing of branded merchandise , as well as products from a number of national brand suppliers , encompassing substantially all product lines .
some of our products are purchased internationally within global procurement centers in order to build strategic relationships with international suppliers and to optimize our supply chain network .
sysco 2019s operating companies purchase product from the suppliers participating in these consolidated programs and from other suppliers , although sysco brand products are only available to the operating companies through these consolidated programs .
we also focus on increasing profitability by lowering operating costs and by lowering aggregate inventory levels , which reduces future facility expansion needs at our broadline operating companies , while providing greater value to our suppliers and customers .
working capital practices our growth is funded through a combination of cash flow from operations , commercial paper issuances and long-term borrowings .
see the discussion in item 7 201cmanagement 2019s discussion and analysis of financial condition and results of operations - liquidity and capital resources 201d regarding our liquidity , financial position and sources and uses of funds .
we extend credit terms to our customers that can vary from cash on delivery to 30 days or more based on our assessment of each customer 2019s credit worthiness .
we monitor each customer 2019s account and will suspend shipments if necessary .
a majority of our sales orders are filled within 24 hours of when customer orders are placed .
we generally maintain inventory on hand to be able to meet customer demand .
the level of inventory on hand will vary by product depending on shelf-life , supplier order fulfillment lead times and customer demand .
we also make purchases of additional volumes of certain products based on supply or pricing opportunities .
we take advantage of suppliers 2019 cash discounts where appropriate and otherwise generally receive payment terms from our suppliers ranging from weekly to 45 days or more .
corporate headquarters and shared services center our corporate staff makes available a number of services to our operating companies and our shared services center performs support services for employees , suppliers and customers .
members of these groups possess experience and expertise in , among other areas , customer and vendor contract administration , accounting and finance , treasury , legal , information technology , payroll and employee benefits , risk management and insurance , sales and marketing , merchandising , inbound logistics , human resources , strategy and tax compliance services .
the corporate office also makes available supply chain expertise , such as in warehousing and distribution services , which provide assistance in operational best practices , including space utilization , energy conservation , fleet management and work flow.


to the two-class method .
the provisions of this guidance were required for fiscal years beginning after december 15 , 2008 .
the company has adopted this guidance for current period computations of earnings per share , and has updated prior period computations of earnings per share .
the adoption of this guidance in the first quarter of 2009 did not have a material impact on the company 2019s computation of earnings per share .
refer to note 11 for further discussion .
in june 2008 , the fasb issued accounting guidance addressing the determination of whether provisions that introduce adjustment features ( including contingent adjustment features ) would prevent treating a derivative contract or an embedded derivative on a company 2019s own stock as indexed solely to the company 2019s stock .
this guidance was effective for fiscal years beginning after december 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in march 2008 , the fasb issued accounting guidance intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity 2019s financial position , financial performance , and cash flows .
this guidance was effective for the fiscal years and interim periods beginning after november 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in december 2007 , the fasb issued replacement guidance that requires the acquirer of a business to recognize and measure the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquired entity at fair value .
this replacement guidance also requires transaction costs related to the business combination to be expensed as incurred .
it was effective for business combinations for which the acquisition date was on or after the start of the fiscal year beginning after december 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in december 2007 , the fasb issued accounting guidance that establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary .
this guidance was effective for fiscal years beginning after december 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in september 2006 , the fasb issued accounting guidance which defines fair value , establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements .
this guidance was effective for fiscal years beginning after november 15 , 2007 , however the fasb delayed the effective date to fiscal years beginning after november 15 , 2008 for nonfinancial assets and nonfinancial liabilities , except those items recognized or disclosed at fair value on an annual or more frequent basis .
the adoption of this guidance for nonfinancial assets and liabilities in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
3 .
inventories inventories consisted of the following: .

( in thousands )     | december 31 , 2009 | december 31 , 2008
-------------------- | ------------------ | ------------------
finished goods       | $ 155596           | $ 187072
raw materials        | 785                | 731
work-in-process      | 71                 | 6
subtotal inventories | 156452             | 187809
inventories reserve  | -7964 ( 7964 )     | -5577 ( 5577 )
total inventories    | $ 148488           | $ 182232


n o t e s t o t h e c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s ( continued ) ace limited and subsidiaries 20 .
statutory financial information the company 2019s insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate .
these regulations include restrictions that limit the amount of dividends or other distributions , such as loans or cash advances , available to shareholders without prior approval of the insurance regulatory authorities .
there are no statutory restrictions on the payment of dividends from retained earnings by any of the bermuda subsidiaries as the minimum statutory capital and surplus requirements are satisfied by the share capital and additional paid-in capital of each of the bermuda subsidiaries .
the company 2019s u.s .
subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators .
statutory accounting differs from gaap in the reporting of certain reinsurance contracts , investments , subsidiaries , acquis- ition expenses , fixed assets , deferred income taxes , and certain other items .
the statutory capital and surplus of the u.s .
subsidiaries met regulatory requirements for 2009 , 2008 , and 2007 .
the amount of dividends available to be paid in 2010 , without prior approval from the state insurance departments , totals $ 733 million .
the combined statutory capital and surplus and statutory net income of the bermuda and u.s .
subsidiaries as at and for the years ended december 31 , 2009 , 2008 , and 2007 , are as follows: .

( in millions of u.s . dollars ) | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | bermuda subsidiaries 2007 | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | 2007
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 9299                    | $ 6205                    | $ 8579                    | $ 5801                    | $ 5368                    | $ 5321
statutory net income             | $ 2472                    | $ 2196                    | $ 1535                    | $ 870                     | $ 818                     | $ 873

as permitted by the restructuring discussed previously in note 7 , certain of the company 2019s u.s .
subsidiaries discount certain a&e liabilities , which increased statutory capital and surplus by approximately $ 215 million , $ 211 million , and $ 140 million at december 31 , 2009 , 2008 , and 2007 , respectively .
the company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations .
some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements .
in some countries , the company must obtain licenses issued by governmental authorities to conduct local insurance business .
these licenses may be subject to reserves and minimum capital and solvency tests .
jurisdictions may impose fines , censure , and/or criminal sanctions for violation of regulatory requirements .
21 .
information provided in connection with outstanding debt of subsidiaries the following tables present condensed consolidating financial information at december 31 , 2009 , and december 31 , 2008 , and for the years ended december 31 , 2009 , 2008 , and 2007 , for ace limited ( the parent guarantor ) and its 201csubsidiary issuer 201d , ace ina holdings , inc .
the subsidiary issuer is an indirect 100 percent-owned subsidiary of the parent guarantor .
investments in subsidiaries are accounted for by the parent guarantor under the equity method for purposes of the supplemental consolidating presentation .
earnings of subsidiaries are reflected in the parent guarantor 2019s investment accounts and earnings .
the parent guarantor fully and unconditionally guarantees certain of the debt of the subsidiary issuer.


for additional information on segment results see page 43 .
income from equity method investments increased by $ 126 million in 2006 from 2005 and increased by $ 98 million in 2005 from 2004 .
income from our lpg operations in equatorial guinea increased in both periods due to higher sales volumes as a result of the plant expansions completed in 2005 .
the increase in 2005 also included higher ptc income as a result of higher distillate gross margins .
cost of revenues increased $ 4.609 billion in 2006 from 2005 and $ 7.106 billion in 2005 from 2004 .
in both periods the increases were primarily in the rm&t segment and resulted from increases in acquisition costs of crude oil , refinery charge and blend stocks and purchased refined products .
the increase in both periods was also impacted by higher manufacturing expenses , primarily the result of higher contract services and labor costs in 2006 and higher purchased energy costs in 2005 .
purchases related to matching buy/sell transactions decreased $ 6.968 billion in 2006 from 2005 and increased $ 3.314 billion in 2005 from 2004 , mostly in the rm&t segment .
the decrease in 2006 was primarily related to the change in accounting for matching buy/sell transactions discussed above .
the increase in 2005 was primarily due to increased crude oil prices .
depreciation , depletion and amortization increased $ 215 million in 2006 from 2005 and $ 125 million in 2005 from 2004 .
rm&t segment depreciation expense increased in both years as a result of the increase in asset value recorded for our acquisition of the 38 percent interest in mpc on june 30 , 2005 .
in addition , the detroit refinery expansion completed in the fourth quarter of 2005 contributed to the rm&t depreciation expense increase in 2006 .
e&p segment depreciation expense for 2006 included a $ 20 million impairment of capitalized costs related to the camden hills field in the gulf of mexico and the associated canyon express pipeline .
natural gas production from the camden hills field ended in 2006 as a result of increased water production from the well .
selling , general and administrative expenses increased $ 73 million in 2006 from 2005 and $ 134 million in 2005 from 2004 .
the 2006 increase was primarily because personnel and staffing costs increased throughout the year primarily as a result of variable compensation arrangements and increased business activity .
partially offsetting these increases were reductions in stock-based compensation expense .
the increase in 2005 was primarily a result of increased stock-based compensation expense , due to the increase in our stock price during that year as well as an increase in equity-based awards , which was partially offset by a decrease in expense as a result of severance and pension plan curtailment charges and start-up costs related to egholdings in 2004 .
exploration expenses increased $ 148 million in 2006 from 2005 and $ 59 million in 2005 from 2004 .
exploration expense related to dry wells and other write-offs totaled $ 166 million , $ 111 million and $ 47 million in 2006 , 2005 and 2004 .
exploration expense in 2006 also included $ 47 million for exiting the cortland and empire leases in nova scotia .
net interest and other financing costs ( income ) reflected a net $ 37 million of income for 2006 , a favorable change of $ 183 million from the net $ 146 million expense in 2005 .
net interest and other financing costs decreased $ 16 million in 2005 from 2004 .
the favorable changes in 2006 included increased interest income due to higher interest rates and average cash balances , foreign currency exchange gains , adjustments to interest on tax issues and greater capitalized interest .
the decrease in expense for 2005 was primarily a result of increased interest income on higher average cash balances and greater capitalized interest , partially offset by increased interest on potential tax deficiencies and higher foreign exchange losses .
included in net interest and other financing costs ( income ) are foreign currency gains of $ 16 million , losses of $ 17 million and gains of $ 9 million for 2006 , 2005 and 2004 .
minority interest in income of mpc decreased $ 148 million in 2005 from 2004 due to our acquisition of the 38 percent interest in mpc on june 30 , 2005 .
provision for income taxes increased $ 2.308 billion in 2006 from 2005 and $ 979 million in 2005 from 2004 , primarily due to the $ 4.259 billion and $ 2.691 billion increases in income from continuing operations before income taxes .
the increase in our effective income tax rate in 2006 was primarily a result of the income taxes related to our libyan operations , where the statutory income tax rate is in excess of 90 percent .
the following is an analysis of the effective income tax rates for continuing operations for 2006 , 2005 and 2004 .
see note 11 to the consolidated financial statements for further discussion. .

                                                               | 2006             | 2005             | 2004
-------------------------------------------------------------- | ---------------- | ---------------- | ----------------
statutory u.s . income tax rate                                | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
effects of foreign operations including foreign tax credits    | 9.9              | -0.8 ( 0.8 )     | 0.5
state and local income taxes net of federal income tax effects | 1.9              | 2.5              | 1.6
other tax effects                                              | -2.0 ( 2.0 )     | -0.4 ( 0.4 )     | -0.9 ( 0.9 )
effective income tax rate for continuing operations            | 44.8% ( 44.8 % ) | 36.3% ( 36.3 % ) | 36.2% ( 36.2 % )


approximately $ 32 million of federal tax payments were deferred and paid in 2009 as a result of the allied acquisition .
the following table summarizes the activity in our gross unrecognized tax benefits for the years ended december 31: .

                                                                            | 2010           | 2009             | 2008
--------------------------------------------------------------------------- | -------------- | ---------------- | ------------
balance at beginning of year                                                | $ 242.2        | $ 611.9          | $ 23.2
additions due to the allied acquisition                                     | -              | 13.3             | 582.9
additions based on tax positions related to current year                    | 2.8            | 3.9              | 10.6
reductions for tax positions related to the current year                    | -              | -                | -5.1 ( 5.1 )
additions for tax positions of prior years                                  | 7.5            | 5.6              | 2.0
reductions for tax positions of prior years                                 | -7.4 ( 7.4 )   | -24.1 ( 24.1 )   | -1.3 ( 1.3 )
reductions for tax positions resulting from lapse of statute of limitations | -10.4 ( 10.4 ) | -0.5 ( 0.5 )     | -0.4 ( 0.4 )
settlements                                                                 | -11.9 ( 11.9 ) | -367.9 ( 367.9 ) | -
balance at end of year                                                      | $ 222.8        | $ 242.2          | $ 611.9

new accounting guidance for business combinations became effective for our 2009 financial statements .
this new guidance changed the treatment of acquired uncertain tax liabilities .
under previous guidance , changes in acquired uncertain tax liabilities were recognized through goodwill .
under the new guidance , subsequent changes in acquired unrecognized tax liabilities are recognized through the income tax provision .
as of december 31 , 2010 , $ 206.5 million of the $ 222.8 million of unrecognized tax benefits related to tax positions taken by allied prior to the 2008 acquisition .
included in the balance at december 31 , 2010 and 2009 are approximately $ 209.1 million and $ 217.6 million of unrecognized tax benefits ( net of the federal benefit on state issues ) that , if recognized , would affect the effective income tax rate in future periods .
during 2010 , the irs concluded its examination of our 2005 and 2007 tax years .
the conclusion of this examination reduced our gross unrecognized tax benefits by approximately $ 1.9 million .
we also resolved various state matters during 2010 that , in the aggregate , reduced our gross unrecognized tax benefits by approximately $ 10.0 million .
during 2009 , we settled our outstanding tax dispute related to allied 2019s risk management companies ( see 2013 risk management companies ) with both the department of justice ( doj ) and the internal revenue service ( irs ) .
this settlement reduced our gross unrecognized tax benefits by approximately $ 299.6 million .
during 2009 , we also settled with the irs , through an accounting method change , our outstanding tax dispute related to intercompany insurance premiums paid to allied 2019s captive insurance company .
this settlement reduced our gross unrecognized tax benefits by approximately $ 62.6 million .
in addition to these federal matters , we also resolved various state matters that , in the aggregate , reduced our gross unrecognized tax benefits during 2009 by approximately $ 5.8 million .
we recognize interest and penalties as incurred within the provision for income taxes in our consolidated statements of income .
related to the unrecognized tax benefits previously noted , we accrued interest of $ 19.2 million during 2010 and , in total as of december 31 , 2010 , have recognized a liability for penalties of $ 1.2 million and interest of $ 99.9 million .
during 2009 , we accrued interest of $ 24.5 million and , in total at december 31 , 2009 , had recognized a liability for penalties of $ 1.5 million and interest of $ 92.3 million .
during 2008 , we accrued penalties of $ 0.2 million and interest of $ 5.2 million and , in total at december 31 , 2008 , had recognized a liability for penalties of $ 88.1 million and interest of $ 180.0 million .
republic services , inc .
notes to consolidated financial statements , continued


host hotels & resorts , inc. , host hotels & resorts , l.p. , and subsidiaries notes to consolidated financial statements 1 .
summary of significant accounting policies description of business host hotels & resorts , inc .
operates as a self-managed and self-administered real estate investment trust , or reit , with its operations conducted solely through host hotels & resorts , l.p .
host hotels & resorts , l.p. , a delaware limited partnership , operates through an umbrella partnership structure , with host hotels & resorts , inc. , a maryland corporation , as its sole general partner .
in the notes to the consolidated financial statements , we use the terms 201cwe 201d or 201cour 201d to refer to host hotels & resorts , inc .
and host hotels & resorts , l.p .
together , unless the context indicates otherwise .
we also use the term 201chost inc . 201d to refer specifically to host hotels & resorts , inc .
and the term 201chost l.p . 201d to refer specifically to host hotels & resorts , l.p .
in cases where it is important to distinguish between host inc .
and host l.p .
host inc .
holds approximately 99% ( 99 % ) of host l.p . 2019s partnership interests , or op units .
consolidated portfolio as of december 31 , 2018 , the hotels in our consolidated portfolio are in the following countries: .

              | hotels
------------- | ------
united states | 88
brazil        | 3
canada        | 2
total         | 93

basis of presentation and principles of consolidation the accompanying consolidated financial statements include the consolidated accounts of host inc. , host l.p .
and their subsidiaries and controlled affiliates , including joint ventures and partnerships .
we consolidate subsidiaries when we have the ability to control them .
for the majority of our hotel and real estate investments , we consider those control rights to be ( i ) approval or amendment of developments plans , ( ii ) financing decisions , ( iii ) approval or amendments of operating budgets , and ( iv ) investment strategy decisions .
we also evaluate our subsidiaries to determine if they are variable interest entities ( 201cvies 201d ) .
if a subsidiary is a vie , it is subject to the consolidation framework specifically for vies .
typically , the entity that has the power to direct the activities that most significantly impact economic performance consolidates the vie .
we consider an entity to be a vie if equity investors own an interest therein that does not have the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support .
we review our subsidiaries and affiliates at least annually to determine if ( i ) they should be considered vies , and ( ii ) whether we should change our consolidation determination based on changes in the characteristics thereof .
three partnerships are considered vie 2019s , as the general partner maintains control over the decisions that most significantly impact the partnerships .
the first vie is the operating partnership , host l.p. , which is consolidated by host inc. , of which host inc .
is the general partner and holds 99% ( 99 % ) of the limited partner interests .
host inc . 2019s sole significant asset is its investment in host l.p .
and substantially all of host inc . 2019s assets and liabilities represent assets and liabilities of host l.p .
all of host inc . 2019s debt is an obligation of host l.p .
and may be settled only with assets of host l.p .
the consolidated partnership that owns the houston airport marriott at george bush intercontinental , of which we are the general partner and hold 85% ( 85 % ) of the partnership interests , also is a vie .
the total assets of this vie at december 31 , 2018 are $ 48 million and consist primarily of cash and