6feb201418202649 performance graph the table below compares the cumulative total shareholder return on our common stock with the cumulative total return of ( i ) the standard & poor 2019s 500 composite stock index ( 2018 2018s&p 500 index 2019 2019 ) , ( ii ) the standard & poor 2019s industrials index ( 2018 2018s&p industrials index 2019 2019 ) and ( iii ) the standard & poor 2019s consumer durables & apparel index ( 2018 2018s&p consumer durables & apparel index 2019 2019 ) , from december 31 , 2008 through december 31 , 2013 , when the closing price of our common stock was $ 22.77 .
the graph assumes investments of $ 100 on december 31 , 2008 in our common stock and in each of the three indices and the reinvestment of dividends .
$ 350.00 $ 300.00 $ 250.00 $ 200.00 $ 150.00 $ 100.00 $ 50.00 performance graph .

                                      | 2009     | 2010     | 2011     | 2012     | 2013
------------------------------------- | -------- | -------- | -------- | -------- | --------
masco                                 | $ 128.21 | $ 120.32 | $ 102.45 | $ 165.80 | $ 229.59
s&p 500 index                         | $ 125.92 | $ 144.58 | $ 147.60 | $ 171.04 | $ 225.85
s&p industrials index                 | $ 120.19 | $ 151.89 | $ 150.97 | $ 173.87 | $ 243.73
s&p consumer durables & apparel index | $ 136.29 | $ 177.91 | $ 191.64 | $ 232.84 | $ 316.28

in july 2007 , our board of directors authorized the purchase of up to 50 million shares of our common stock in open-market transactions or otherwise .
at december 31 , 2013 , we had remaining authorization to repurchase up to 22.6 million shares .
during the first quarter of 2013 , we repurchased and retired 1.7 million shares of our common stock , for cash aggregating $ 35 million to offset the dilutive impact of the 2013 grant of 1.7 million shares of long-term stock awards .
we have not purchased any shares since march 2013.


alexion pharmaceuticals , inc .
notes to consolidated financial statements 2014 ( continued ) for the years ended december 31 , 2007 and 2006 , five month period ended december 31 , 2005 , and year ended july 31 , 2005 ( amounts in thousands , except share and per share amounts ) aggregate future minimum annual rental payments for the next five years and thereafter under non-cancellable operating leases ( including facilities and equipment ) as of december 31 , 2007 are: .

2008       | $ 4935
---------- | ------
2009       | 3144
2010       | 3160
2011       | 3200
2012       | 2768
thereafter | 9934

9 .
commitments and contingencies legal proceedings on march 16 , 2007 , pdl biopharma , inc. , or pdl , filed a civil action against alexion in the u.s .
district court for the district of delaware .
pdl claims willful infringement by alexion of pdl patents due to sales of soliris .
pdl seeks unspecified damages , but no less than a reasonable royalty , plus attorney 2019s fees .
alexion has denied pdl's claims .
in addition , we filed counterclaims seeking declarations of non-infringement and invalidity of certain u.s .
patents held by pdl .
alexion believes it has good and valid defenses to pdl's claims and intends to vigorously defend the case and pursue its counterclaims .
on february 4 , 2008 , sb2 , inc .
filed a civil action against alexion in the united states district court for the northern district of california .
sb2 , inc .
claims willfull infringement by alexion of sb2 , inc .
patents due to sales of soliris .
sb2 , inc .
seeks unspecified monetary damages , equitable relief and attorneys fees .
alexion believes it has good and valid defenses to sb2's claims and intends to vigorously defend the case and pursue its counterclaims .
the results of such civil actions cannot be predicted with certainty due to their early stages .
however , depending on the outcome of these legal matters , the operating results of the company could be materially impacted through adjustments to cost of sales ( see notes 2 , 6 and 15 for additional information related to royalties ) .
product supply the large-scale product supply agreement dated december 18 , 2002 , or the lonza agreement , between lonza sales ag , or lonza , and us , relating to the manufacture of soliris , was amended in june 2007 .
we amended our supply agreement to provide for additional purchase commitments of soliris of $ 30000 to $ 35000 through 2013 .
such commitments may only be cancelled in limited circumstances.


welltower inc .
notes to consolidated financial statements is no longer present ( and additional weight may be given to subjective evidence such as our projections for growth ) .
the valuation allowance rollforward is summarized as follows for the periods presented ( in thousands ) : year ended december 31 , 2017 2016 2015 .

2016                | year ended december 31 2017 2016 | year ended december 31 2017 2016 | year ended december 31 2017
------------------- | -------------------------------- | -------------------------------- | ---------------------------
beginning balance   | $ 96838                          | $ 98966                          | $ 85207
expense ( benefit ) | 30445                            | -2128 ( 2128 )                   | 13759
ending balance      | $ 127283                         | $ 96838                          | $ 98966

as a result of certain acquisitions , we are subject to corporate level taxes for any related asset dispositions that may occur during the five-year period immediately after such assets were owned by a c corporation ( 201cbuilt-in gains tax 201d ) .
the amount of income potentially subject to this special corporate level tax is generally equal to the lesser of ( a ) the excess of the fair value of the asset over its adjusted tax basis as of the date it became a reit asset , or ( b ) the actual amount of gain .
some but not all gains recognized during this period of time could be offset by available net operating losses and capital loss carryforwards .
during the year ended december 31 , 2016 , we acquired certain additional assets with built-in gains as of the date of acquisition that could be subject to the built-in gains tax if disposed of prior to the expiration of the applicable ten-year period .
we have not recorded a deferred tax liability as a result of the potential built-in gains tax based on our intentions with respect to such properties and available tax planning strategies .
under the provisions of the reit investment diversification and empowerment act of 2007 ( 201cridea 201d ) , for taxable years beginning after july 30 , 2008 , the reit may lease 201cqualified health care properties 201d on an arm 2019s-length basis to a trs if the property is operated on behalf of such subsidiary by a person who qualifies as an 201celigible independent contractor . 201d generally , the rent received from the trs will meet the related party rent exception and will be treated as 201crents from real property . 201d a 201cqualified health care property 201d includes real property and any personal property that is , or is necessary or incidental to the use of , a hospital , nursing facility , assisted living facility , congregate care facility , qualified continuing care facility , or other licensed facility which extends medical or nursing or ancillary services to patients .
we have entered into various joint ventures that were structured under ridea .
resident level rents and related operating expenses for these facilities are reported in the consolidated financial statements and are subject to federal , state and foreign income taxes as the operations of such facilities are included in a trs .
certain net operating loss carryforwards could be utilized to offset taxable income in future years .
given the applicable statute of limitations , we generally are subject to audit by the internal revenue service ( 201cirs 201d ) for the year ended december 31 , 2014 and subsequent years .
the statute of limitations may vary in the states in which we own properties or conduct business .
we do not expect to be subject to audit by state taxing authorities for any year prior to the year ended december 31 , 2011 .
we are also subject to audit by the canada revenue agency and provincial authorities generally for periods subsequent to may 2012 related to entities acquired or formed in connection with acquisitions , and by the u.k . 2019s hm revenue & customs for periods subsequent to august 2012 related to entities acquired or formed in connection with acquisitions .
at december 31 , 2017 , we had a net operating loss ( 201cnol 201d ) carryforward related to the reit of $ 448475000 .
due to our uncertainty regarding the realization of certain deferred tax assets , we have not recorded a deferred tax asset related to nols generated by the reit .
these amounts can be used to offset future taxable income ( and/or taxable income for prior years if an audit determines that tax is owed ) , if any .
the reit will be entitled to utilize nols and tax credit carryforwards only to the extent that reit taxable income exceeds our deduction for dividends paid .
the nol carryforwards generated through december 31 , 2017 will expire through 2036 .
beginning with tax years after december 31 , 2017 , the tax cuts and jobs act ( 201ctax act 201d ) eliminates the carryback period , limits the nols to 80% ( 80 % ) of taxable income and replaces the 20-year carryforward period with an indefinite carryforward period.


masco corporation notes to consolidated financial statements ( continued ) c .
acquisitions on march 9 , 2018 , we acquired substantially all of the net assets of the l.d .
kichler co .
( "kichler" ) , a leader in decorative residential and light commercial lighting products , ceiling fans and led lighting systems .
this business expands our product offerings to our customers .
the results of this acquisition for the period from the acquisition date are included in the consolidated financial statements and are reported in the decorative architectural products segment .
we recorded $ 346 million of net sales as a result of this acquisition during 2018 .
the purchase price , net of $ 2 million cash acquired , consisted of $ 549 million paid with cash on hand .
since the acquisition , we have revised the allocation of the purchase price to identifiable assets and liabilities based on analysis of information as of the acquisition date that has been made available through december 31 , 2018 .
the allocation will continue to be updated through the measurement period , if necessary .
the preliminary allocation of the fair value of the acquisition of kichler is summarized in the following table , in millions. .

                           | initial    | revised
-------------------------- | ---------- | ----------
receivables                | $ 101      | $ 100
inventories                | 173        | 166
prepaid expenses and other | 5          | 5
property and equipment     | 33         | 33
goodwill                   | 46         | 64
other intangible assets    | 243        | 240
accounts payable           | -24 ( 24 ) | -24 ( 24 )
accrued liabilities        | -25 ( 25 ) | -30 ( 30 )
other liabilities          | -4 ( 4 )   | -5 ( 5 )
total                      | $ 548      | $ 549

the goodwill acquired , which is generally tax deductible , is related primarily to the operational and financial synergies we expect to derive from combining kichler's operations into our business , as well as the assembled workforce .
the other intangible assets acquired consist of $ 59 million of indefinite-lived intangible assets , which is related to trademarks , and $ 181 million of definite-lived intangible assets .
the definite-lived intangible assets consist of $ 145 million related to customer relationships , which is being amortized on a straight-line basis over 20 years , and $ 36 million of other definite-lived intangible assets , which is being amortized over a weighted average amortization period of three years .
in the fourth quarter of 2017 , we acquired mercury plastics , inc. , a plastics processor and manufacturer of water handling systems for appliance and faucet applications , for approximately $ 89 million in cash .
this business is included in the plumbing products segment .
this acquisition enhances our ability to develop faucet technology and provides continuity of supply of quality faucet components .
in connection with this acquisition , we recognized $ 38 million of goodwill , which is tax deductible , and is related primarily to the expected synergies from combining the operations into our business.


in particular , we have received commitments for $ 30.0 billion in debt financing to fund the transactions which is comprised of ( i ) a $ 4.0 billion secured revolving credit facility , ( ii ) a $ 7.0 billion term loan credit facility and ( iii ) a $ 19.0 billion secured bridge loan facility .
our reliance on the financing from the $ 19.0 billion secured bridge loan facility commitment is intended to be reduced through one or more secured note offerings or other long-term financings prior to the merger closing .
however , there can be no assurance that we will be able to issue any such secured notes or other long-term financings on terms we find acceptable or at all , especially in light of the recent debt market volatility , in which case we may have to exercise some or all of the commitments under the secured bridge facility to fund the transactions .
accordingly , the costs of financing for the transactions may be higher than expected .
credit rating downgrades could adversely affect the businesses , cash flows , financial condition and operating results of t-mobile and , following the transactions , the combined company .
credit ratings impact the cost and availability of future borrowings , and , as a result , cost of capital .
our current ratings reflect each rating agency 2019s opinion of our financial strength , operating performance and ability to meet our debt obligations or , following the completion of the transactions , obligations to the combined company 2019s obligors .
each rating agency reviews these ratings periodically and there can be no assurance that such ratings will be maintained in the future .
a downgrade in the rating of us and/or sprint could adversely affect the businesses , cash flows , financial condition and operating results of t- mobile and , following the transactions , the combined company .
we have incurred , and will incur , direct and indirect costs as a result of the transactions .
we have incurred , and will incur , substantial expenses in connection with and as a result of completing the transactions , and over a period of time following the completion of the transactions , the combined company also expects to incur substantial expenses in connection with integrating and coordinating our and sprint 2019s businesses , operations , policies and procedures .
a portion of the transaction costs related to the transactions will be incurred regardless of whether the transactions are completed .
while we have assumed that a certain level of transaction expenses will be incurred , factors beyond our control could affect the total amount or the timing of these expenses .
many of the expenses that will be incurred , by their nature , are difficult to estimate accurately .
these expenses will exceed the costs historically borne by us .
these costs could adversely affect our financial condition and results of operations prior to the transactions and the financial condition and results of operations of the combined company following the transactions .
item 1b .
unresolved staff comments item 2 .
properties as of december 31 , 2018 , our significant properties that we primarily lease and use in connection with switching centers , data centers , call centers and warehouses were as follows: .

                  | approximate number | approximate size in square feet
----------------- | ------------------ | -------------------------------
switching centers | 61                 | 1300000
data centers      | 6                  | 500000
call center       | 17                 | 1300000
warehouses        | 21                 | 500000

as of december 31 , 2018 , we primarily leased : 2022 approximately 64000 macro towers and 21000 distributed antenna system and small cell sites .
2022 approximately 2200 t-mobile and metro by t-mobile retail locations , including stores and kiosks ranging in size from approximately 100 square feet to 17000 square feet .
2022 office space totaling approximately 1000000 square feet for our corporate headquarters in bellevue , washington .
in january 2019 , we executed leases totaling approximately 170000 additional square feet for our corporate headquarters .
we use these offices for engineering and administrative purposes .
2022 office space throughout the u.s. , totaling approximately 1700000 square feet , for use by our regional offices primarily for administrative , engineering and sales purposes.


at december 31 , 2012 and 2011 , we had a working capital surplus .
this reflects a strong cash position , which provides enhanced liquidity in an uncertain economic environment .
in addition , we believe we have adequate access to capital markets to meet any foreseeable cash requirements , and we have sufficient financial capacity to satisfy our current liabilities .
cash flows millions 2012 2011 2010 .

cash flowsmillions                     | 2012           | 2011           | 2010
-------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities  | $ 6161         | $ 5873         | $ 4105
cash used in investing activities      | -3633 ( 3633 ) | -3119 ( 3119 ) | -2488 ( 2488 )
cash used in financing activities      | -2682 ( 2682 ) | -2623 ( 2623 ) | -2381 ( 2381 )
net change in cash and cashequivalents | $ -154 ( 154 ) | $ 131          | $ -764 ( 764 )

operating activities higher net income in 2012 increased cash provided by operating activities compared to 2011 , partially offset by lower tax benefits from bonus depreciation ( as explained below ) and payments for past wages based on national labor negotiations settled earlier this year .
higher net income and lower cash income tax payments in 2011 increased cash provided by operating activities compared to 2010 .
the tax relief , unemployment insurance reauthorization , and job creation act of 2010 provided for 100% ( 100 % ) bonus depreciation for qualified investments made during 2011 , and 50% ( 50 % ) bonus depreciation for qualified investments made during 2012 .
as a result of the act , the company deferred a substantial portion of its 2011 income tax expense .
this deferral decreased 2011 income tax payments , thereby contributing to the positive operating cash flow .
in future years , however , additional cash will be used to pay income taxes that were previously deferred .
in addition , the adoption of a new accounting standard in january of 2010 changed the accounting treatment for our receivables securitization facility from a sale of undivided interests ( recorded as an operating activity ) to a secured borrowing ( recorded as a financing activity ) , which decreased cash provided by operating activities by $ 400 million in 2010 .
investing activities higher capital investments in 2012 drove the increase in cash used in investing activities compared to 2011 .
included in capital investments in 2012 was $ 75 million for the early buyout of 165 locomotives under long-term operating and capital leases during the first quarter of 2012 , which we exercised due to favorable economic terms and market conditions .
higher capital investments partially offset by higher proceeds from asset sales in 2011 drove the increase in cash used in investing activities compared to 2010.


on november 1 , 2016 , management evaluated the net assets of alcoa corporation for potential impairment and determined that no impairment charge was required .
the cash flows related to alcoa corporation have not been segregated and are included in the statement of consolidated cash flows for 2016 .
the following table presents depreciation , depletion and amortization , restructuring and other charges , and purchases of property , plant and equipment of the discontinued operations related to alcoa corporation: .

for the year ended december 31,         | 2016
--------------------------------------- | -----
depreciation depletion and amortization | $ 593
restructuring and other charges         | $ 102
capital expenditures                    | $ 298

w .
subsequent events management evaluated all activity of arconic and concluded that no subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements , except as noted below : on january 22 , 2019 , the company announced that its board of directors ( the board ) had determined to no longer pursue a potential sale of arconic as part of its strategy and portfolio review .
on february 6 , 2019 , the company announced that the board appointed john c .
plant , current chairman of the board , as chairman and chief executive officer of the company , effective february 6 , 2019 , to succeed chip blankenship , who ceased to serve as chief executive officer of the company and resigned as a member of the board , in each case as of that date .
in addition , the company announced that the board appointed elmer l .
doty , current member of the board , as president and chief operating officer , a newly created position , effective february 6 , 2019 .
mr .
doty will remain a member of the board .
the company also announced that arthur d .
collins , jr. , current member of the board , has been appointed interim lead independent director of the company , effective february 6 , 2019 .
on february 8 , 2019 , the company announced the following key initiatives as part of its ongoing strategy and portfolio review : plans to reduce operating costs , designed to maximize the impact in 2019 ; the planned separation of its portfolio into engineered products and forgings ( ep&f ) and global rolled products ( grp ) , with a spin-off of one of the businesses ; the potential sale of businesses that do not best fit into ep&f or grp ; execute its previously authorized $ 500 share repurchase program in the first half of 2019 ; the board authorized an additional $ 500 of share repurchases , effective through the end of 2020 ; and plans to reduce its quarterly common stock dividend from $ 0.06 to $ 0.02 per share .
on february 19 , 2019 , the company entered into an accelerated share repurchase ( 201casr 201d ) agreement with jpmorgan chase bank to repurchase $ 700 of its common stock , pursuant to the share repurchase program previously authorized by the board .
under the asr agreement , arconic will receive initial delivery of approximately 32 million shares on february 21 , 2019 .
the final number of shares to be repurchased will be based on the volume-weighted average price of arconic 2019s common stock during the term of the transaction , less a discount .
the asr agreement is expected to be completed during the first half of the company will evaluate its organizational structure in conjunction with the planned separation of its portfolio and changes to its reportable segments are expected in the first half of 2019.


liquidity and capital resources as of december 31 , 2011 , our principal sources of liquidity included cash , cash equivalents , our receivables securitization facility , and our revolving credit facility , as well as the availability of commercial paper and other sources of financing through the capital markets .
we had $ 1.8 billion of committed credit available under our credit facility , with no borrowings outstanding as of december 31 , 2011 .
we did not make any borrowings under this facility during 2011 .
the value of the outstanding undivided interest held by investors under the receivables securitization facility was $ 100 million as of december 31 , 2011 , and is included in our consolidated statements of financial position as debt due after one year .
the receivables securitization facility obligates us to maintain an investment grade bond rating .
if our bond rating were to deteriorate , it could have an adverse impact on our liquidity .
access to commercial paper as well as other capital market financings is dependent on market conditions .
deterioration of our operating results or financial condition due to internal or external factors could negatively impact our ability to access capital markets as a source of liquidity .
access to liquidity through the capital markets is also dependent on our financial stability .
we expect that we will continue to have access to liquidity by issuing bonds to public or private investors based on our assessment of the current condition of the credit markets .
at december 31 , 2011 and 2010 , we had a working capital surplus .
this reflects a strong cash position , which provides enhanced liquidity in an uncertain economic environment .
in addition , we believe we have adequate access to capital markets to meet cash requirements , and we have sufficient financial capacity to satisfy our current liabilities .
cash flows millions 2011 2010 2009 .

cash flowsmillions                     | 2011           | 2010           | 2009
-------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities  | $ 5873         | $ 4105         | $ 3204
cash used in investing activities      | -3119 ( 3119 ) | -2488 ( 2488 ) | -2145 ( 2145 )
cash used in financing activities      | -2623 ( 2623 ) | -2381 ( 2381 ) | -458 ( 458 )
net change in cash and cashequivalents | $ 131          | $ -764 ( 764 ) | $ 601

operating activities higher net income and lower cash income tax payments in 2011 increased cash provided by operating activities compared to 2010 .
the tax relief , unemployment insurance reauthorization , and job creation act of 2010 , enacted in december 2010 , provided for 100% ( 100 % ) bonus depreciation for qualified investments made during 2011 , and 50% ( 50 % ) bonus depreciation for qualified investments made during 2012 .
as a result of the act , the company deferred a substantial portion of its 2011 income tax expense .
this deferral decreased 2011 income tax payments , thereby contributing to the positive operating cash flow .
in future years , however , additional cash will be used to pay income taxes that were previously deferred .
in addition , the adoption of a new accounting standard in january of 2010 changed the accounting treatment for our receivables securitization facility from a sale of undivided interests ( recorded as an operating activity ) to a secured borrowing ( recorded as a financing activity ) , which decreased cash provided by operating activities by $ 400 million in 2010 .
higher net income in 2010 increased cash provided by operating activities compared to 2009 .
investing activities higher capital investments partially offset by higher proceeds from asset sales in 2011 drove the increase in cash used in investing activities compared to 2010 .
higher capital investments and lower proceeds from asset sales in 2010 drove the increase in cash used in investing activities compared to 2009.


equity compensation plan information the following table presents the equity securities available for issuance under our equity compensation plans as of december 31 , 2012 .
equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights ( 2 ) number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( a ) ( b ) ( c ) equity compensation plans approved by security holders 3946111 $ 34.67 3608527 equity compensation plans not approved by security holders ( 3 ) 2014 2014 2014 .

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights ( 2 ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 3946111                                                                                | $ 34.67                                                                         | 3608527
equity compensation plans not approved by security holders ( 3 ) | 2014                                                                                | 2014                                                                            | 2014
total                                                            | 3946111                                                                                | $ 34.67                                                                         | 3608527

( 1 ) includes grants made under the huntington ingalls industries , inc .
2012 long-term incentive stock plan ( the "2012 plan" ) , which was approved by our stockholders on may 2 , 2012 , and the huntington ingalls industries , inc .
2011 long-term incentive stock plan ( the "2011 plan" ) , which was approved by the sole stockholder of hii prior to its spin-off from northrop grumman corporation .
of these shares , 1166492 were subject to stock options , 2060138 were subject to outstanding restricted performance stock rights , 641556 were restricted stock rights , and 63033 were stock rights granted under the 2011 plan .
in addition , this number includes 9129 stock rights and 5763 restricted performance stock rights granted under the 2012 plan , assuming target performance achievement .
( 2 ) this is the weighted average exercise price of the 1166492 outstanding stock options only .
( 3 ) there are no awards made under plans not approved by security holders .
item 13 .
certain relationships and related transactions , and director independence information as to certain relationships and related transactions and director independence will be incorporated herein by reference to the proxy statement for our 2013 annual meeting of stockholders to be filed within 120 days after the end of the company 2019s fiscal year .
item 14 .
principal accountant fees and services information as to principal accountant fees and services will be incorporated herein by reference to the proxy statement for our 2013 annual meeting of stockholders to be filed within 120 days after the end of the company 2019s fiscal year.


as of december 31 , 2017 , the aggregate future minimum payments under non-cancelable operating leases consist of the following ( in thousands ) : years ending december 31 .

2018                                | $ 9127
----------------------------------- | -------
2019                                | 8336
2020                                | 8350
2021                                | 7741
2022                                | 7577
thereafter                          | 9873
total minimum future lease payments | $ 51004

rent expense for all operating leases amounted to $ 9.4 million , $ 8.1 million and $ 5.4 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
financing obligation 2014build-to-suit lease in august 2012 , we executed a lease for a building then under construction in santa clara , california to serve as our headquarters .
the lease term is 120 months and commenced in august 2013 .
based on the terms of the lease agreement and due to our involvement in certain aspects of the construction , we were deemed the owner of the building ( for accounting purposes only ) during the construction period .
upon completion of construction in 2013 , we concluded that we had forms of continued economic involvement in the facility , and therefore did not meet with the provisions for sale-leaseback accounting .
we continue to maintain involvement in the property post construction and lack transferability of the risks and rewards of ownership , due to our required maintenance of a $ 4.0 million letter of credit , in addition to our ability and option to sublease our portion of the leased building for fees substantially higher than our base rate .
therefore , the lease is accounted for as a financing obligation and lease payments will be attributed to ( 1 ) a reduction of the principal financing obligation ; ( 2 ) imputed interest expense ; and ( 3 ) land lease expense , representing an imputed cost to lease the underlying land of the building .
at the conclusion of the initial lease term , we will de-recognize both the net book values of the asset and the remaining financing obligation .
as of december 31 , 2017 and 2016 , we have recorded assets of $ 53.4 million , representing the total costs of the building and improvements incurred , including the costs paid by the lessor ( the legal owner of the building ) and additional improvement costs paid by us , and a corresponding financing obligation of $ 39.6 million and $ 41.2 million , respectively .
as of december 31 , 2017 , $ 1.9 million and $ 37.7 million were recorded as short-term and long-term financing obligations , respectively .
land lease expense under our lease financing obligation amounted to $ 1.3 million for each of the years ended december 31 , 2017 , 2016 and 2015 respectively.


unallocated corporate items for fiscal 2018 , 2017 and 2016 included: .

in millions                                                                                | fiscal year 2018 | fiscal year 2017 | fiscal year 2016
-------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
net gain ( loss ) onmark-to-marketvaluation of commodity positions                                       | $ 14.3           | $ -22.0 ( 22.0 ) | $ -69.1 ( 69.1 )
net loss on commodity positions reclassified from unallocated corporate items to segmentoperating profit | 11.3             | 32.0             | 127.9
netmark-to-marketrevaluation of certain grain inventories                                                | 6.5              | 3.9              | 4.0
netmark-to-marketvaluation of certain commodity positions recognized in unallocated corporate items      | $ 32.1           | $ 13.9           | $ 62.8

net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ 32.1 $ 13.9 $ 62.8 as of may 27 , 2018 , the net notional value of commodity derivatives was $ 238.8 million , of which $ 147.9 million related to agricultural inputs and $ 90.9 million related to energy inputs .
these contracts relate to inputs that generally will be utilized within the next 12 months .
interest rate risk we are exposed to interest rate volatility with regard to future issuances of fixed-rate debt , and existing and future issuances of floating-rate debt .
primary exposures include u.s .
treasury rates , libor , euribor , and commercial paper rates in the united states and europe .
we use interest rate swaps , forward-starting interest rate swaps , and treasury locks to hedge our exposure to interest rate changes , to reduce the volatility of our financing costs , and to achieve a desired proportion of fixed rate versus floating-rate debt , based on current and projected market conditions .
generally under these swaps , we agree with a counterparty to exchange the difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount .
floating interest rate exposures 2014 floating-to-fixed interest rate swaps are accounted for as cash flow hedges , as are all hedges of forecasted issuances of debt .
effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt .
effective gains and losses deferred to aoci are reclassified into earnings over the life of the associated debt .
ineffective gains and losses are recorded as net interest .
the amount of hedge ineffectiveness was a $ 2.6 million loss in fiscal 2018 , and less than $ 1 million in fiscal 2017 and 2016 .
fixed interest rate exposures 2014 fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness assessed based on changes in the fair value of the underlying debt and derivatives , using incremental borrowing rates currently available on loans with similar terms and maturities .
ineffective gains and losses on these derivatives and the underlying hedged items are recorded as net interest .
the amount of hedge ineffectiveness was a $ 3.4 million loss in fiscal 2018 , a $ 4.3 million gain in fiscal 2017 , and less than $ 1 million in fiscal 2016 .
in advance of planned debt financing related to the acquisition of blue buffalo , we entered into $ 3800.0 million of treasury locks due april 19 , 2018 , with an average fixed rate of 2.9 percent , of which $ 2300.0 million were entered into in the third quarter of fiscal 2018 and $ 1500.0 million were entered into in the fourth quarter of fiscal 2018 .
all of these treasury locks were cash settled for $ 43.9 million during the fourth quarter of fiscal 2018 , concurrent with the issuance of our $ 850.0 million 5.5-year fixed-rate notes , $ 800.0 million 7-year fixed- rate notes , $ 1400.0 million 10-year fixed-rate notes , $ 500.0 million 20-year fixed-rate notes , and $ 650.0 million 30-year fixed-rate notes .
in advance of planned debt financing , in fiscal 2018 , we entered into $ 500.0 million of treasury locks due october 15 , 2017 with an average fixed rate of 1.8 percent .
all of these treasury locks were cash settled for $ 3.7 million during the second quarter of fiscal 2018 , concurrent with the issuance of our $ 500.0 million 5-year fixed-rate notes.


entergy gulf states louisiana , l.l.c .
management's financial discussion and analysis sources of capital entergy gulf states louisiana's sources to meet its capital requirements include : internally generated funds ; cash on hand ; debt or preferred membership interest issuances ; and bank financing under new or existing facilities .
entergy gulf states louisiana may refinance or redeem debt and preferred equity/membership interests prior to maturity , to the extent market conditions and interest and dividend rates are favorable .
all debt and common and preferred equity/membership interest issuances by entergy gulf states louisiana require prior regulatory approval .
preferred equity/membership interest and debt issuances are also subject to issuance tests set forth in its corporate charter , bond indentures , and other agreements .
entergy gulf states louisiana has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy gulf states , inc .
filed with the ferc an application , on behalf of entergy gulf states louisiana , for authority to issue up to $ 200 million of short- term debt , up to $ 500 million of tax-exempt bonds and up to $ 750 million of other long-term securities , including common and preferred membership interests and long-term debt .
on november 8 , 2007 the ferc issued orders granting the requested authority for a two-year period ending november 8 , 2009 .
entergy gulf states louisiana's receivables from or ( payables to ) the money pool were as follows as of december 31 for each of the following years: .

2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 11589          | $ 55509          | $ 75048          | $ 64011

see note 4 to the financial statements for a description of the money pool .
entergy gulf states louisiana has a credit facility in the amount of $ 100 million scheduled to expire in august 2012 .
no borrowings were outstanding under the credit facility as of december 31 , 2008 .
in may 2008 , entergy gulf states louisiana issued $ 375 million of 6.00% ( 6.00 % ) series first mortgage bonds due may 2018 .
the proceeds were used to pay at maturity the portion of the $ 325 million of 3.6% ( 3.6 % ) series first mortgage bonds due june 2008 that had not been assumed by entergy texas and to redeem , prior to maturity , $ 189.7 million of the $ 350 million floating rate series of first mortgage bonds due december 2008 , and for other general corporate purposes .
the portion of the $ 325 million of 3.6% ( 3.6 % ) series first mortgage bonds due june 2008 that had been assumed by entergy texas were paid at maturity by entergy texas in june 2008 , and that bond series is no longer outstanding .
the portion of the $ 350 million floating rate series of first mortgage bonds due december 2008 that had been assumed by entergy texas were paid at maturity by entergy texas in december 2008 , and that bond series is no longer outstanding .
hurricane rita and hurricane katrina in august and september 2005 , hurricanes katrina and rita hit entergy gulf states inc.'s jurisdictions in louisiana and texas .
the storms resulted in power outages ; significant damage to electric distribution , transmission , and generation infrastructure ; and the temporary loss of sales and customers due to mandatory evacuations .
entergy gulf states louisiana is pursuing a range of initiatives to recover storm restoration and business continuity costs and incremental losses .
initiatives include obtaining reimbursement of certain costs covered by insurance and pursuing recovery through existing or new rate mechanisms regulated by the ferc and local regulatory bodies , in combination with securitization.


in the ordinary course of business , based on our evaluations of certain geologic trends and prospective economics , we have allowed certain lease acreage to expire and may allow additional acreage to expire in the future .
if production is not established or we take no other action to extend the terms of the leases , licenses or concessions , undeveloped acreage listed in the table below will expire over the next three years .
we plan to continue the terms of certain of these licenses and concession areas or retain leases through operational or administrative actions ; however , the majority of the undeveloped acres associated with other africa as listed in the table below pertains to our licenses in ethiopia and kenya , for which we executed agreements in 2015 to sell .
the kenya transaction closed in february 2016 and the ethiopia transaction is expected to close in the first quarter of 2016 .
see item 8 .
financial statements and supplementary data - note 5 to the consolidated financial statements for additional information about this disposition .
net undeveloped acres expiring year ended december 31 .

( in thousands )    | net undeveloped acres expiring year ended december 31 , 2016 | net undeveloped acres expiring year ended december 31 , 2017 | net undeveloped acres expiring year ended december 31 , 2018
------------------- | ------------------------------------------------------------ | ------------------------------------------------------------ | ------------------------------------------------------------
u.s .               | 68                                                           | 89                                                           | 128
e.g .               | 2014                                                         | 92                                                           | 36
other africa        | 189                                                          | 4352                                                         | 854
total africa        | 189                                                          | 4444                                                         | 890
other international | 2014                                                         | 2014                                                         | 2014
total               | 257                                                          | 4533                                                         | 1018


of these options during fiscal 2010 , fiscal 2009 and fiscal 2008 was $ 240.4 million , $ 15.1 million and $ 100.6 mil- lion , respectively .
the total grant-date fair value of stock options that vested during fiscal 2010 , fiscal 2009 and fiscal 2008 was approximately $ 67.2 million , $ 73.6 million and $ 77.6 million , respectively .
proceeds from stock option exercises pursuant to employee stock plans in the company 2019s statement of cash flows of $ 216.1 million , $ 12.4 million and $ 94.2 million for fiscal 2010 , fiscal 2009 and fiscal 2008 , respectively , are net of the value of shares surrendered by employees in certain limited circumstances to satisfy the exercise price of options , and to satisfy employee tax obligations upon vesting of restricted stock or restricted stock units and in connection with the exercise of stock options granted to the company 2019s employees under the company 2019s equity compensation plans .
the withholding amount is based on the company 2019s minimum statutory withholding requirement .
a summary of the company 2019s restricted stock unit award activity as of october 30 , 2010 and changes during the year then ended is presented below : restricted outstanding weighted- average grant- date fair value per share .

                                                      | restricted stock units outstanding | weighted- average grant- date fair value per share
----------------------------------------------------- | ---------------------------------- | --------------------------------------------------
restricted stock units outstanding at october 31 2009 | 135                                | $ 22.19
units granted                                         | 1171                               | $ 28.86
restrictions lapsed                                   | -19 ( 19 )                         | $ 24.70
units forfeited                                       | -22 ( 22 )                         | $ 29.10
restricted stock units outstanding at october 30 2010 | 1265                               | $ 28.21

as of october 30 , 2010 there was $ 95 million of total unrecognized compensation cost related to unvested share-based awards comprised of stock options and restricted stock units .
that cost is expected to be recognized over a weighted-average period of 1.4 years .
common stock repurchase program the company 2019s common stock repurchase program has been in place since august 2004 .
in the aggregate , the board of directors has authorized the company to repurchase $ 4 billion of the company 2019s common stock under the program .
under the program , the company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions .
unless terminated earlier by resolution of the company 2019s board of directors , the repurchase program will expire when the company has repurchased all shares authorized under the program .
as of october 30 , 2010 , the company had repurchased a total of approximately 116.0 million shares of its common stock for approximately $ 3948.2 million under this program .
an additional $ 51.8 million remains available for repurchase of shares under the current authorized program .
the repurchased shares are held as authorized but unissued shares of common stock .
any future common stock repurchases will be dependent upon several factors including the amount of cash available to the company in the united states , and the company 2019s financial performance , outlook and liquidity .
the company also from time to time repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock or restricted stock units , or in certain limited circumstances to satisfy the exercise price of options granted to the company 2019s employees under the company 2019s equity compensation plans .
preferred stock the company has 471934 authorized shares of $ 1.00 par value preferred stock , none of which is issued or outstanding .
the board of directors is authorized to fix designations , relative rights , preferences and limitations on the preferred stock at the time of issuance .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )


declaration and payment of future quarterly dividends is at the discretion of our board and may be adjusted as business needs or market conditions change .
in addition , under the terms of the merger agreement , we have agreed with aetna to coordinate the declaration and payment of dividends so that our stockholders do not fail to receive a quarterly dividend around the time of the closing of the merger .
on october 29 , 2015 , the board declared a cash dividend of $ 0.29 per share that was paid on january 29 , 2016 to stockholders of record on december 30 , 2015 , for an aggregate amount of $ 43 million .
stock total return performance the following graph compares our total return to stockholders with the returns of the standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and the dow jones us select health care providers index ( 201cpeer group 201d ) for the five years ended december 31 , 2015 .
the graph assumes an investment of $ 100 in each of our common stock , the s&p 500 , and the peer group on december 31 , 2010 , and that dividends were reinvested when paid. .

           | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 162      | $ 128      | $ 195      | $ 274      | $ 343
s&p 500    | $ 100      | $ 102      | $ 118      | $ 157      | $ 178      | $ 181
peer group | $ 100      | $ 110      | $ 129      | $ 177      | $ 226      | $ 239

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


the graph below matches cadence design systems , inc . 2019s cumulative 5-year total shareholder return on common stock with the cumulative total returns of the s&p 500 index , the s&p information technology index , and the nasdaq composite 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 december 28 , 2002 and tracks it through december 29 , 2007 .
comparison of 5 year cumulative total return* among cadence design systems , inc. , the s&p 500 index , the nasdaq composite index and the s&p information technology index 12/29/0712/30/0612/31/051/1/051/3/0412/28/02 cadence design systems , inc .
nasdaq composite s & p information technology s & p 500 * $ 100 invested on 12/28/02 in stock or on 12/31/02 in index-including reinvestment of dividends .
indexes calculated on month-end basis .
copyright b7 2007 , standard & poor 2019s , a division of the mcgraw-hill companies , inc .
all rights reserved .
www.researchdatagroup.com/s&p.htm .

                             | 12/28/02 | 1/3/04 | 1/1/05 | 12/31/05 | 12/30/06 | 12/29/07
---------------------------- | -------- | ------ | ------ | -------- | -------- | --------
cadence design systems inc . | 100.00   | 149.92 | 113.38 | 138.92   | 147.04   | 139.82
s & p 500                    | 100.00   | 128.68 | 142.69 | 149.70   | 173.34   | 182.87
nasdaq composite             | 100.00   | 149.75 | 164.64 | 168.60   | 187.83   | 205.22
s & p information technology | 100.00   | 147.23 | 150.99 | 152.49   | 165.32   | 192.28

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


abiomed , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) note 11 .
stock award plans and stock based compensation ( continued ) the 2000 stock incentive plan , ( the 201c2000 plan 201d ) , as amended , was adopted by the company in august 2000 .
the 2000 plan provides for grants of options to key employees , directors , advisors and consultants to the company or its subsidiaries as either incentive or nonqualified stock options as determined by the company 2019s board of directors .
up to 4900000 shares of common stock may be awarded under the 2000 plan and are exercisable at such times and subject to such terms as the board of directors may specify at the time of each stock option grant .
options outstanding under the 2000 plan generally vest 4 years from the date of grant and options awarded expire ten years from the date of grant .
the company has a nonqualified stock option plan for non-employee directors ( the 201cdirectors 2019 plan 201d ) .
the directors 2019 plan , as amended , was adopted in july 1989 and provides for grants of options to purchase shares of the company 2019s common stock to non-employee directors of the company .
up to 400000 shares of common stock may be awarded under the directors 2019 plan .
options outstanding under the director 2019s plan have vesting periods of 1 to 5 years from the date of grant and options expire ten years from the date of grant grant-date fair value the company estimates the fair value of each stock option granted at the grant date using the black-scholes option valuation model , consistent with the provisions of sfas no .
123 ( r ) , sec sab no .
107 share-based payment and the company 2019s prior period pro forma disclosure of net loss , including stock-based compensation ( determined under a fair value method as prescribed by sfas no .
123 ) .
the fair value of options granted during the fiscal years 2005 , 2006 and 2007 were calculated using the following weighted average assumptions: .

                                  | 2005             | 2006             | 2007
--------------------------------- | ---------------- | ---------------- | ----------------
risk-free interest rate           | 3.87% ( 3.87 % ) | 4.14% ( 4.14 % ) | 4.97% ( 4.97 % )
expected option life ( in years ) | 7.5              | 7.3              | 6.25
expected volatility               | 84% ( 84 % )     | 73% ( 73 % )     | 65% ( 65 % )

the risk-free interest rate is based on the united states treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options .
volatility assumptions are calculated based on a combination of the historical volatility of our stock and adjustments for factors not reflected in historical volatility that are more indicative of future volatility .
by using this combination , the company is taking into consideration estimates of future volatility that the company believes will differ from historical volatility as a result of product diversification and the company 2019s acquisition of impella .
the average expected life was estimated using the simplified method for determining the expected term as prescribed by the sec 2019s staff accounting bulletin no .
107 .
the calculation of the fair value of the options is net of estimated forfeitures .
forfeitures are estimated based on an analysis of actual option forfeitures , adjusted to the extent historic forfeitures may not be indicative of forfeitures in the future .
in addition , an expected dividend yield of zero is used in the option valuation model , because the company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future .
the weighted average grant-date fair value for options granted during fiscal years 2005 , 2006 , and 2007 was $ 8.05 , $ 6.91 , and $ 8.75 per share , respectively .
the application of sfas no .
123 ( r ) resulted in expense of $ 5.8 million , or $ 0.21 per share for the 2007 fiscal year which is recorded within the applicable operating expense where the company reports the option holders 2019 compensation cost in the consolidated statements of operations .
the remaining unrecognized stock-based compensation expense for unvested stock option awards at march 31 , 2007 was approximately $ 9.0 million , net of forfeitures , and the weighted average time over which this cost will be recognized is 1.9 years .
sfas no .
123 ( r ) also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow , rather than as an operating cash flow .
because the company does not recognize the benefit of tax deductions in excess of recognized compensation cost due to its net operating loss position , this change had no impact on the company 2019s consolidated statement of cash flows for the twelve months ended march 31 , 2007 .
accounting prior to adoption of sfas no .
123 ( r ) prior to april 1 , 2006 , the company accounted for stock-based compensation in accordance with the provisions of apb no .
25 .
the company elected to follow the disclosure-only alternative requirements of sfas no .
123 , accounting for stock-based compensation .
accordingly , the company did not recognize the compensation expense for the issuance of options with fixed exercise prices at least equal to


cross-border outstandings to countries in which we do business which amounted to at least 1% ( 1 % ) of our consolidated total assets were as follows as of december 31 : 2007 2006 2005 ( in millions ) .

( in millions )                 | 2007    | 2006   | 2005
------------------------------- | ------- | ------ | -------
united kingdom                  | $ 5951  | $ 5531 | $ 2696
canada                          | 4565    | 2014   | 1463
australia                       | 3567    | 1519   | 1441
netherlands                     | 2014    | 2014   | 992
germany                         | 2944    | 2696   | 4217
total cross-border outstandings | $ 17027 | $ 9746 | $ 10809

the total cross-border outstandings presented in the table represented 12% ( 12 % ) , 9% ( 9 % ) and 11% ( 11 % ) of our consolidated total assets as of december 31 , 2007 , 2006 and 2005 , respectively .
there were no cross- border outstandings to countries which totaled between .75% ( .75 % ) and 1% ( 1 % ) of our consolidated total assets as of december 31 , 2007 .
aggregate cross-border outstandings to countries which totaled between .75% ( .75 % ) and 1% ( 1 % ) of our consolidated total assets at december 31 , 2006 , amounted to $ 1.05 billion ( canada ) and at december 31 , 2005 , amounted to $ 1.86 billion ( belgium and japan ) .
capital regulatory and economic capital management both use key metrics evaluated by management to ensure that our actual level of capital is commensurate with our risk profile , is in compliance with all regulatory requirements , and is sufficient to provide us with the financial flexibility to undertake future strategic business initiatives .
regulatory capital our objective with respect to regulatory capital management is to maintain a strong capital base in order to provide financial flexibility for our business needs , including funding corporate growth and supporting customers 2019 cash management needs , and to provide protection against loss to depositors and creditors .
we strive to maintain an optimal level of capital , commensurate with our risk profile , on which an attractive return to shareholders will be realized over both the short and long term , while protecting our obligations to depositors and creditors and satisfying regulatory requirements .
our capital management process focuses on our risk exposures , our capital position relative to our peers , regulatory capital requirements and the evaluations of the major independent credit rating agencies that assign ratings to our public debt .
the capital committee , working in conjunction with the asset and liability committee , referred to as 2018 2018alco , 2019 2019 oversees the management of regulatory capital , and is responsible for ensuring capital adequacy with respect to regulatory requirements , internal targets and the expectations of the major independent credit rating agencies .
the primary regulator of both state street and state street bank for regulatory capital purposes is the federal reserve board .
both state street and state street bank are subject to the minimum capital requirements established by the federal reserve board and defined in the federal deposit insurance corporation improvement act of 1991 .
state street bank must meet the regulatory capital thresholds for 2018 2018well capitalized 2019 2019 in order for the parent company to maintain its status as a financial holding company.


we realize synergies from consolidating businesses into our existing operations , whether through acquisitions or public-private partnerships , which allow us to reduce capital and expense requirements associated with truck routing , personnel , fleet maintenance , inventories and back-office administration .
operating model the goal of our operating model pillar is to deliver a consistent , high quality service to all of our customers through the republic way : one way .
everywhere .
every day .
this approach of developing standardized processes with rigorous controls and tracking allows us to leverage our scale and deliver durable operational excellence .
the republic way is the key to harnessing the best of what we do as operators and translating that across all facets of our business .
a key enabler of the republic way is our organizational structure that fosters a high performance culture by maintaining 360 degree accountability and full profit and loss responsibility with general management , supported by a functional structure to provide subject matter expertise .
this structure allows us to take advantage of our scale by coordinating functionally across all of our markets , while empowering local management to respond to unique market dynamics .
we have rolled out several productivity and cost control initiatives designed to deliver the best service possible to our customers in the most efficient and environmentally sound way .
fleet automation approximately 72% ( 72 % ) of our residential routes have been converted to automated single driver trucks .
by converting our residential routes to automated service , we reduce labor costs , improve driver productivity , decrease emissions and create a safer work environment for our employees .
additionally , communities using automated vehicles have higher participation rates in recycling programs , thereby complementing our initiative to expand our recycling capabilities .
fleet conversion to compressed natural gas ( cng ) approximately 16% ( 16 % ) of our fleet operates on cng .
we expect to continue our gradual fleet conversion to cng , our preferred alternative fuel technology , as part of our ordinary annual fleet replacement process .
we believe a gradual fleet conversion is most prudent to realize the full value of our previous fleet investments .
approximately 33% ( 33 % ) of our replacement vehicle purchases during 2015 were cng vehicles .
we believe using cng vehicles provides us a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment .
although upfront costs are higher , using cng reduces our overall fleet operating costs through lower fuel expenses .
as of december 31 , 2015 , we operated 38 cng fueling stations .
standardized maintenance based on an industry trade publication , we operate the ninth largest vocational fleet in the united states .
as of december 31 , 2015 , our average fleet age in years , by line of business , was as follows : approximate number of vehicles approximate average age .

                           | approximate number of vehicles | approximate average age
-------------------------- | ------------------------------ | -----------------------
residential                | 7200                           | 7
small-container commercial | 4400                           | 7
large-container industrial | 4000                           | 9
total                      | 15600                          | 7.5

onefleet , our standardized vehicle maintenance program , enables us to use best practices for fleet management , truck care and maintenance .
through standardization of core functions , we believe we can minimize variability


notes to consolidated financial statements sumitomo mitsui financial group , inc .
( smfg ) provides the firm with credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments ) .
the notional amount of such loan commitments was $ 29.24 billion and $ 32.41 billion as of december 2013 and december 2012 , respectively .
the credit loss protection on loan commitments provided by smfg is generally limited to 95% ( 95 % ) of the first loss the firm realizes on such commitments , up to a maximum of approximately $ 950 million .
in addition , subject to the satisfaction of certain conditions , upon the firm 2019s request , smfg will provide protection for 70% ( 70 % ) of additional losses on such commitments , up to a maximum of $ 1.13 billion , of which $ 870 million and $ 300 million of protection had been provided as of december 2013 and december 2012 , respectively .
the firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by smfg .
these instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity , or credit default swaps that reference a market index .
warehouse financing .
the firm provides financing to clients who warehouse financial assets .
these arrangements are secured by the warehoused assets , primarily consisting of corporate loans and commercial mortgage loans .
contingent and forward starting resale and securities borrowing agreements/forward starting repurchase and secured lending agreements the firm enters into resale and securities borrowing agreements and repurchase and secured lending agreements that settle at a future date , generally within three business days .
the firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements .
the firm 2019s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused .
investment commitments the firm 2019s investment commitments consist of commitments to invest in private equity , real estate and other assets directly and through funds that the firm raises and manages .
these commitments include $ 659 million and $ 872 million as of december 2013 and december 2012 , respectively , related to real estate private investments and $ 6.46 billion and $ 6.47 billion as of december 2013 and december 2012 , respectively , related to corporate and other private investments .
of these amounts , $ 5.48 billion and $ 6.21 billion as of december 2013 and december 2012 , respectively , relate to commitments to invest in funds managed by the firm .
if these commitments are called , they would be funded at market value on the date of investment .
leases the firm has contractual obligations under long-term noncancelable lease agreements , principally for office space , expiring on various dates through 2069 .
certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges .
the table below presents future minimum rental payments , net of minimum sublease rentals .
in millions december 2013 .

in millions       | as of december 2013
----------------- | -------------------
2014              | $ 387
2015              | 340
2016              | 280
2017              | 271
2018              | 222
2019 - thereafter | 1195
total             | $ 2695

rent charged to operating expense was $ 324 million for 2013 , $ 374 million for 2012 and $ 475 million for 2011 .
operating leases include office space held in excess of current requirements .
rent expense relating to space held for growth is included in 201coccupancy . 201d the firm records a liability , based on the fair value of the remaining lease rentals reduced by any potential or existing sublease rentals , for leases where the firm has ceased using the space and management has concluded that the firm will not derive any future economic benefits .
costs to terminate a lease before the end of its term are recognized and measured at fair value on termination .
contingencies legal proceedings .
see note 27 for information about legal proceedings , including certain mortgage-related matters .
certain mortgage-related contingencies .
there are multiple areas of focus by regulators , governmental agencies and others within the mortgage market that may impact originators , issuers , servicers and investors .
there remains significant uncertainty surrounding the nature and extent of any potential exposure for participants in this market .
182 goldman sachs 2013 annual report


management 2019s discussion and analysis 128 jpmorgan chase & co./2010 annual report year ended december 31 .

( in millions )                             | 2010           | 2009             | 2008
------------------------------------------- | -------------- | ---------------- | --------------
hedges of lending-related commitments ( a ) | $ -279 ( 279 ) | $ -3258 ( 3258 ) | $ 2216
cva and hedges of cva ( a )                 | -403 ( 403 )   | 1920             | -2359 ( 2359 )
net gains/ ( losses )                       | $ -682 ( 682 ) | $ -1338 ( 1338 ) | $ -143 ( 143 )

( a ) these hedges do not qualify for hedge accounting under u.s .
gaap .
lending-related commitments jpmorgan chase uses lending-related financial instruments , such as commitments and guarantees , to meet the financing needs of its customers .
the contractual amount of these financial instruments represents the maximum possible credit risk should the counterpar- ties draw down on these commitments or the firm fulfills its obliga- tion under these guarantees , and should the counterparties subsequently fail to perform according to the terms of these con- tracts .
wholesale lending-related commitments were $ 346.1 billion at december 31 , 2010 , compared with $ 347.2 billion at december 31 , 2009 .
the decrease reflected the january 1 , 2010 , adoption of accounting guidance related to vies .
excluding the effect of the accounting guidance , lending-related commitments would have increased by $ 16.6 billion .
in the firm 2019s view , the total contractual amount of these wholesale lending-related commitments is not representative of the firm 2019s actual credit risk exposure or funding requirements .
in determining the amount of credit risk exposure the firm has to wholesale lend- ing-related commitments , which is used as the basis for allocating credit risk capital to these commitments , the firm has established a 201cloan-equivalent 201d amount for each commitment ; this amount represents the portion of the unused commitment or other contin- gent exposure that is expected , based on average portfolio histori- cal experience , to become drawn upon in an event of a default by an obligor .
the loan-equivalent amounts of the firm 2019s lending- related commitments were $ 189.9 billion and $ 179.8 billion as of december 31 , 2010 and 2009 , respectively .
country exposure the firm 2019s wholesale portfolio includes country risk exposures to both developed and emerging markets .
the firm seeks to diversify its country exposures , including its credit-related lending , trading and investment activities , whether cross-border or locally funded .
country exposure under the firm 2019s internal risk management ap- proach is reported based on the country where the assets of the obligor , counterparty or guarantor are located .
exposure amounts , including resale agreements , are adjusted for collateral and for credit enhancements ( e.g. , guarantees and letters of credit ) pro- vided by third parties ; outstandings supported by a guarantor located outside the country or backed by collateral held outside the country are assigned to the country of the enhancement provider .
in addition , the effect of credit derivative hedges and other short credit or equity trading positions are taken into consideration .
total exposure measures include activity with both government and private-sector entities in a country .
the firm also reports country exposure for regulatory purposes following ffiec guidelines , which are different from the firm 2019s internal risk management approach for measuring country expo- sure .
for additional information on the ffiec exposures , see cross- border outstandings on page 314 of this annual report .
several european countries , including greece , portugal , spain , italy and ireland , have been subject to credit deterioration due to weak- nesses in their economic and fiscal situations .
the firm is closely monitoring its exposures to these five countries .
aggregate net exposures to these five countries as measured under the firm 2019s internal approach was less than $ 15.0 billion at december 31 , 2010 , with no country representing a majority of the exposure .
sovereign exposure in all five countries represented less than half the aggregate net exposure .
the firm currently believes its exposure to these five countries is modest relative to the firm 2019s overall risk expo- sures and is manageable given the size and types of exposures to each of the countries and the diversification of the aggregate expo- sure .
the firm continues to conduct business and support client activity in these countries and , therefore , the firm 2019s aggregate net exposures may vary over time .
in addition , the net exposures may be impacted by changes in market conditions , and the effects of interest rates and credit spreads on market valuations .
as part of its ongoing country risk management process , the firm monitors exposure to emerging market countries , and utilizes country stress tests to measure and manage the risk of extreme loss associated with a sovereign crisis .
there is no common definition of emerging markets , but the firm generally includes in its definition those countries whose sovereign debt ratings are equivalent to 201ca+ 201d or lower .
the table below presents the firm 2019s exposure to its top 10 emerging markets countries based on its internal measure- ment approach .
the selection of countries is based solely on the firm 2019s largest total exposures by country and does not represent its view of any actual or potentially adverse credit conditions.


movement in exit cost liabilities the movement in exit cost liabilities for pmi was as follows : ( in millions ) .

liability balance january 1 2014   | $ 308
---------------------------------- | ------------
charges net                        | 391
cash spent                         | -360 ( 360 )
currency/other                     | -69 ( 69 )
liability balance december 31 2014 | $ 270
charges net                        | 68
cash spent                         | -232 ( 232 )
currency/other                     | -52 ( 52 )
liability balance december 31 2015 | $ 54

cash payments related to exit costs at pmi were $ 232 million , $ 360 million and $ 21 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively .
future cash payments for exit costs incurred to date are expected to be approximately $ 54 million , and will be substantially paid by the end of 2017 .
the pre-tax asset impairment and exit costs shown above are primarily a result of the following : the netherlands on april 4 , 2014 , pmi announced the initiation by its affiliate , philip morris holland b.v .
( 201cpmh 201d ) , of consultations with employee representatives on a proposal to discontinue cigarette production at its factory located in bergen op zoom , the netherlands .
pmh reached an agreement with the trade unions and their members on a social plan and ceased cigarette production on september 1 , 2014 .
during 2014 , total pre-tax asset impairment and exit costs of $ 489 million were recorded for this program in the european union segment .
this amount includes employee separation costs of $ 343 million , asset impairment costs of $ 139 million and other separation costs of $ 7 million .
separation program charges pmi recorded other pre-tax separation program charges of $ 68 million , $ 41 million and $ 51 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively .
the 2015 other pre-tax separation program charges primarily related to severance costs for the organizational restructuring in the european union segment .
the 2014 other pre-tax separation program charges primarily related to severance costs for factory closures in australia and canada and the restructuring of the u.s .
leaf purchasing model .
the 2013 pre-tax separation program charges primarily related to the restructuring of global and regional functions based in switzerland and australia .
contract termination charges during 2013 , pmi recorded exit costs of $ 258 million related to the termination of distribution agreements in eastern europe , middle east & africa ( due to a new business model in egypt ) and asia .
asset impairment charges during 2014 , pmi recorded other pre-tax asset impairment charges of $ 5 million related to a factory closure in canada.


latin america acquisition of grupo financiero uno in 2007 , citigroup completed its acquisition of grupo financiero uno ( gfu ) , the largest credit card issuer in central america , and its affiliates , with $ 2.2 billion in assets .
the results for gfu are included in citigroup 2019s global cards and latin america consumer banking businesses from march 5 , 2007 forward .
acquisition of grupo cuscatl e1n in 2007 , citigroup completed the acquisition of the subsidiaries of grupo cuscatl e1n for $ 1.51 billion ( $ 755 million in cash and 14.2 million shares of citigroup common stock ) from corporacion ubc internacional s.a .
grupo .
the results of grupo cuscatl e1n are included from may 11 , 2007 forward and are recorded in latin america consumer banking .
acquisition of bank of overseas chinese in 2007 , citigroup completed its acquisition of bank of overseas chinese ( booc ) in taiwan for approximately $ 427 million .
results for booc are included in citigroup 2019s asia consumer banking , global cards and securities and banking businesses from december 1 , 2007 forward .
acquisition of quilter in 2007 , the company completed the acquisition of quilter , a u.k .
wealth advisory firm , from morgan stanley .
quilter 2019s results are included in citigroup 2019s smith barney business from march 1 , 2007 forward .
quilter is being disposed of as part of the sale of smith barney to morgan stanley described in subsequent events .
acquisition of egg in 2007 , citigroup completed its acquisition of egg banking plc ( egg ) , a u.k .
online financial services provider , from prudential plc for approximately $ 1.39 billion .
results for egg are included in citigroup 2019s global cards and emea consumer banking businesses from may 1 , 2007 forward .
purchase of 20% ( 20 % ) equity interest in akbank in 2007 , citigroup completed its purchase of a 20% ( 20 % ) equity interest in akbank , the second-largest privately owned bank by assets in turkey for approximately $ 3.1 billion .
this investment is accounted for using the equity method of accounting .
sabanci holding , a 34% ( 34 % ) owner of akbank shares , and its subsidiaries have granted citigroup a right of first refusal or first offer over the sale of any of their akbank shares in the future .
subject to certain exceptions , including purchases from sabanci holding and its subsidiaries , citigroup has otherwise agreed not to increase its percentage ownership in akbank .
other items sale of mastercard shares in 2007 , the company recorded a $ 367 million after-tax gain ( $ 581 million pretax ) on the sale of approximately 4.9 million mastercard class b shares that had been received by citigroup as a part of the mastercard initial public offering completed in june 2006 .
the gain was recorded in the following businesses : in millions of dollars pretax after-tax pretax after-tax .

in millions of dollars | 2007 pretax total | 2007 after-tax total | 2006 pretax total | 2006 after-tax total
---------------------- | ----------------- | -------------------- | ----------------- | --------------------
global cards           | $ 466             | $ 296                | $ 94              | $ 59
consumer banking       | 96                | 59                   | 27                | 18
icg                    | 19                | 12                   | 2                 | 1
total                  | $ 581             | $ 367                | $ 123             | $ 78

redecard ipo in 2007 , citigroup ( a 31.9% ( 31.9 % ) shareholder in redecard s.a. , the only merchant acquiring company for mastercard in brazil ) sold approximately 48.8 million redecard shares in connection with redecard 2019s initial public offering in brazil .
following the sale of these shares , citigroup retained approximately 23.9% ( 23.9 % ) ownership in redecard .
an after-tax gain of approximately $ 469 million ( $ 729 million pretax ) was recorded in citigroup 2019s 2007 financial results in the global cards business .
visa restructuring and litigation matters in 2007 , visa usa , visa international and visa canada were merged into visa inc .
( visa ) .
as a result of that reorganization , citigroup recorded a $ 534 million ( pretax ) gain on its holdings of visa international shares primarily recognized in the consumer banking business .
the shares were then carried on citigroup 2019s balance sheet at the new cost basis .
in addition , citigroup recorded a $ 306 million ( pretax ) charge related to certain of visa usa 2019s litigation matters primarily recognized in the north america consumer banking business.


kimco realty corporation and subsidiaries notes to consolidated financial statements , continued investment in retail store leases 2014 the company has interests in various retail store leases relating to the anchor store premises in neighborhood and community shopping centers .
these premises have been sublet to retailers who lease the stores pursuant to net lease agreements .
income from the investment in these retail store leases during the years ended december 31 , 2010 , 2009 and 2008 , was approximately $ 1.6 million , $ 0.8 million and $ 2.7 million , respectively .
these amounts represent sublease revenues during the years ended december 31 , 2010 , 2009 and 2008 , of approximately $ 5.9 million , $ 5.2 million and $ 7.1 million , respectively , less related expenses of $ 4.3 million , $ 4.4 million and $ 4.4 million , respectively .
the company 2019s future minimum revenues under the terms of all non-cancelable tenant subleases and future minimum obligations through the remaining terms of its retail store leases , assuming no new or renegotiated leases are executed for such premises , for future years are as follows ( in millions ) : 2011 , $ 5.2 and $ 3.4 ; 2012 , $ 4.1 and $ 2.6 ; 2013 , $ 3.8 and $ 2.3 ; 2014 , $ 2.9 and $ 1.7 ; 2015 , $ 2.1 and $ 1.3 , and thereafter , $ 2.8 and $ 1.6 , respectively .
leveraged lease 2014 during june 2002 , the company acquired a 90% ( 90 % ) equity participation interest in an existing leveraged lease of 30 properties .
the properties are leased under a long-term bond-type net lease whose primary term expires in 2016 , with the lessee having certain renewal option rights .
the company 2019s cash equity investment was approximately $ 4.0 million .
this equity investment is reported as a net investment in leveraged lease in accordance with the fasb 2019s lease guidance .
as of december 31 , 2010 , 18 of these properties were sold , whereby the proceeds from the sales were used to pay down the mortgage debt by approximately $ 31.2 million and the remaining 12 properties were encumbered by third-party non-recourse debt of approximately $ 33.4 million that is scheduled to fully amortize during the primary term of the lease from a portion of the periodic net rents receivable under the net lease .
as an equity participant in the leveraged lease , the company has no recourse obligation for principal or interest payments on the debt , which is collateralized by a first mortgage lien on the properties and collateral assignment of the lease .
accordingly , this obligation has been offset against the related net rental receivable under the lease .
at december 31 , 2010 and 2009 , the company 2019s net investment in the leveraged lease consisted of the following ( in millions ) : .

                                      | 2010           | 2009
------------------------------------- | -------------- | --------------
remaining net rentals                 | $ 37.6         | $ 44.1
estimated unguaranteed residual value | 31.7           | 31.7
non-recourse mortgage debt            | -30.1 ( 30.1 ) | -34.5 ( 34.5 )
unearned and deferred income          | -34.2 ( 34.2 ) | -37.0 ( 37.0 )
net investment in leveraged lease     | $ 5.0          | $ 4.3

10 .
variable interest entities : consolidated operating properties 2014 included within the company 2019s consolidated operating properties at december 31 , 2010 are four consolidated entities that are vies and for which the company is the primary beneficiary .
all of these entities have been established to own and operate real estate property .
the company 2019s involvement with these entities is through its majority ownership of the properties .
these entities were deemed vies primarily based on the fact that the voting rights of the equity investors are not proportional to their obligation to absorb expected losses or receive the expected residual returns of the entity and substantially all of the entity 2019s activities are conducted on behalf of the investor which has disproportionately fewer voting rights .
the company determined that it was the primary beneficiary of these vies as a result of its controlling financial interest .
during 2010 , the company sold two consolidated vie 2019s which the company was the primary beneficiary.


federal realty investment trust schedule iii summary of real estate and accumulated depreciation 2014continued three years ended december 31 , 2007 reconciliation of accumulated depreciation and amortization ( in thousands ) .

balance december 31 2004                                             | $ 595338
-------------------------------------------------------------------- | ----------------
additions during period 2014depreciation and amortization expense    | 83656
deductions during period 2014disposition and retirements of property | -15244 ( 15244 )
balance december 31 2005                                             | $ 663750
additions during period 2014depreciation and amortization expense    | 89564
deductions during period 2014disposition and retirements of property | -12807 ( 12807 )
balance december 31 2006                                             | $ 740507
additions during period 2014depreciation and amortization expense    | 96454
deductions during period 2014disposition and retirements of property | -80258 ( 80258 )
balance december 31 2007                                             | $ 756703


notes to consolidated financial statements ( dollars in millions , except per share amounts ) long-term debt maturing over the next five years and thereafter is as follows: .

2004                | $ 244.5
------------------- | --------
2005                | $ 523.8
2006                | $ 338.5
2007                | $ 0.9
2008                | $ 0.9
2009 and thereafter | $ 1327.6

on march 7 , 2003 , standard & poor's ratings services downgraded the company's senior secured credit rating to bb+ with negative outlook from bbb- .
on may 14 , 2003 , fitch ratings downgraded the company's senior unsecured credit rating to bb+ with negative outlook from bbb- .
on may 9 , 2003 , moody's investor services , inc .
( "moody's" ) placed the company's senior unsecured and subordinated credit ratings on review for possible downgrade from baa3 and ba1 , respectively .
as of march 12 , 2004 , the company's credit ratings continued to be on review for a possible downgrade .
since july 2001 , the company has not repurchased its common stock in the open market .
in october 2003 , the company received a federal tax refund of approximately $ 90 as a result of its carryback of its 2002 loss for us federal income tax purposes and certain capital losses , to earlier periods .
through december 2002 , the company had paid cash dividends quarterly with the most recent quarterly dividend paid in december 2002 at a rate of $ 0.095 per share .
on a quarterly basis , the company's board of directors makes determinations regarding the payment of dividends .
as previously discussed , the company's ability to declare or pay dividends is currently restricted by the terms of its revolving credit facilities .
the company did not declare or pay any dividends in 2003 .
however , in 2004 , the company expects to pay any dividends accruing on the series a mandatory convertible preferred stock in cash , which is expressly permitted by the revolving credit facilities .
see note 14 for discussion of fair market value of the company's long-term debt .
note 9 : equity offering on december 16 , 2003 , the company sold 25.8 million shares of common stock and issued 7.5 million shares of 3- year series a mandatory convertible preferred stock ( the "preferred stock" ) .
the total net proceeds received from the concurrent offerings was approximately $ 693 .
the preferred stock carries a dividend yield of 5.375% ( 5.375 % ) .
on maturity , each share of the preferred stock will convert , subject to adjustment , to between 3.0358 and 3.7037 shares of common stock , depending on the then-current market price of the company's common stock , representing a conversion premium of approximately 22% ( 22 % ) over the stock offering price of $ 13.50 per share .
under certain circumstances , the preferred stock may be converted prior to maturity at the option of the holders or the company .
the common and preferred stock were issued under the company's existing shelf registration statement .
in january 2004 , the company used approximately $ 246 of the net proceeds from the offerings to redeem the 1.80% ( 1.80 % ) convertible subordinated notes due 2004 .
the remaining proceeds will be used for general corporate purposes and to further strengthen the company's balance sheet and financial condition .
the company will pay annual dividends on each share of the series a mandatory convertible preferred stock in the amount of $ 2.6875 .
dividends will be cumulative from the date of issuance and will be payable on each payment date to the extent that dividends are not restricted under the company's credit facilities and assets are legally available to pay dividends .
the first dividend payment , which was declared on february 24 , 2004 , will be made on march 15 , 2004.


as of december 31 , 2012 and 2011 , the estimated value of the company's uncertain tax positions were liabilities of $ 19 million and $ 6 million , respectively .
assuming sustainment of these positions , the reversal of $ 1 million of the amounts accrued would favorably affect the company's effective federal income tax rate in future periods .
accrued interest and penalties with respect to unrecognized tax benefits were $ 2 million and $ 3 million as of december 31 , 2012 and 2011 , respectively .
during 2011 , the company recorded a reduction of $ 10 million to its liability for uncertain tax positions relating to tax periods prior to the spin-off for which northrop grumman is the primary obligor .
during 2010 , northrop grumman reached final settlement with the irs and the u .
s .
congressional joint committee on taxation on the irs examination of northrop grumman's tax returns for the years 2004 through 2006 .
as a result of this settlement , the company recognized tax benefits of $ 8 million as a reduction to the provision for income taxes .
in connection with the settlement , the company also recorded a reduction of $ 10 million to its liability for uncertain tax positions , including previously accrued interest , of $ 2 million .
the following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the company operates: .

jurisdiction united states | jurisdiction 2007 | jurisdiction - | 2012
-------------------------- | ----------------- | -------------- | ----
california                 | 2007              | -              | 2012
louisiana                  | 2007              | -              | 2012
mississippi                | 2009              | -              | 2012
virginia                   | 2006              | -              | 2012

although the company believes it has adequately provided for all uncertain tax positions , amounts asserted by taxing authorities could be greater than the company's accrued position .
accordingly , additional provisions on federal and state income tax related matters could be recorded in the future as revised estimates are made or the underlying matters are effectively settled or otherwise resolved .
conversely , the company could settle positions with the tax authorities for amounts lower than have been accrued .
the company believes it is reasonably possible that during the next 12 months the company's liability for uncertain tax positions may decrease by approximately $ 14 million .
the company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense .
the irs is currently conducting an examination of northrop grumman's consolidated tax returns , of which hii was part , for the years 2007 through 2009 .
open tax years related to state jurisdictions remain subject to examination .
as of march 31 , 2011 , the date of the spin-off , the company's liability for uncertain tax positions was approximately $ 4 million , net of federal benefit , which related solely to state income tax positions .
under the terms of the separation agreement , northrop grumman is obligated to reimburse hii for any settlement liabilities paid by hii to any government authority for tax periods prior to the spin-off , which include state income taxes .
accordingly , the company has recorded a reimbursement receivable of approximately $ 4 million , net of federal benefit , in other assets related to uncertain tax positions for state income taxes as of the date of the spin-off .
deferred income taxes - deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes .
such amounts are classified in the consolidated statements of financial position as current or non-current assets or liabilities based upon the classification of the related assets and liabilities.