2015 vs .
2014 on a gaap basis , the effective tax rate was 24.0% ( 24.0 % ) and 27.1% ( 27.1 % ) in 2015 and 2014 , respectively .
the effective tax rate was higher in fiscal year 2014 primarily due to the goodwill impairment charge of $ 305.2 , which was not deductible for tax purposes , and the chilean tax reform enacted in september 2014 which increased income tax expense by $ 20.6 .
these impacts were partially offset by an income tax benefit of $ 51.6 associated with losses from transactions and a tax election in a non-u.s .
subsidiary .
refer to note 10 , goodwill , and note 23 , income taxes , to the consolidated financial statements for additional information .
on a non-gaap basis , the effective tax rate was 24.2% ( 24.2 % ) and 24.1% ( 24.1 % ) in 2015 and 2014 , respectively .
discontinued operations on 29 march 2016 , the board of directors approved the company 2019s exit of its energy-from-waste ( efw ) business .
as a result , efforts to start up and operate its two efw projects located in tees valley , united kingdom , have been discontinued .
the decision to exit the business and stop development of the projects was based on continued difficulties encountered and the company 2019s conclusion , based on testing and analysis completed during the second quarter of fiscal year 2016 , that significant additional time and resources would be required to make the projects operational .
in addition , the decision allows the company to execute its strategy of focusing resources on its core industrial gases business .
the efw segment has been presented as a discontinued operation .
prior year efw business segment information has been reclassified to conform to current year presentation .
in fiscal 2016 , our loss from discontinued operations , net of tax , of $ 884.2 primarily resulted from the write down of assets to their estimated net realizable value and to record a liability for plant disposition and other costs .
income tax benefits related only to one of the projects , as the other did not qualify for a local tax deduction .
the loss from discontinued operations also includes land lease costs , commercial and administrative costs , and costs incurred for ongoing project exit activities .
we expect additional exit costs of $ 50 to $ 100 to be recorded in future periods .
in fiscal 2015 , our loss from discontinued operations , net of tax , related to efw was $ 6.8 .
this resulted from costs for land leases and commercial and administrative expenses .
in fiscal 2014 , our loss from discontinued operations , net of tax , was $ 2.9 .
this included a loss , net of tax , of $ 7.5 for the cost of efw land leases and commercial and administrative expenses .
this loss was partially offset by a gain of $ 3.9 for the sale of the remaining homecare business and settlement of contingencies related to a sale of a separate portion of the business to the linde group in 2012 .
refer to note 4 , discontinued operations , for additional details .
segment analysis industrial gases 2013 americas .[['', '2016', '2015', '2014'], ['sales', '$ 3343.6', '$ 3693.9', '$ 4078.5'], ['operating income', '895.2', '808.4', '762.6'], ['operating margin', '26.8% ( 26.8 % )', '21.9% ( 21.9 % )', '18.7% ( 18.7 % )'], ['equity affiliates 2019 income', '52.7', '64.6', '60.9'], ['adjusted ebitda', '1390.4', '1289.9', '1237.9'], ['adjusted ebitda margin', '41.6% ( 41.6 % )', '34.9% ( 34.9 % )', '30.4% ( 30.4 % )']].


entity transfers of inventory , the income tax effects will continue to be deferred until the inventory has been sold to a third party .
cadence adopted the new standard on the first day of fiscal 2018 using the modified retrospective transition approach and recorded a cumulative-effect adjustment to decrease retained earnings in the amount of $ 8.3 million .
the cumulative-effect adjustment includes the write-off of income tax consequences deferred from prior intra-entity transfers involving assets other than inventory and new deferred tax assets for amounts not recognized under u.s .
gaap .
we anticipate the potential for increased volatility in future effective tax rates from the adoption of this guidance .
stock-based compensation in may 2017 , the fasb issued asu 2017-09 , 201ccompensation 2014stock compensation ( topic 718 ) : scope of modification accounting , 201d that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting .
cadence adopted the standard on the first day of fiscal 2018 .
the adoption of this standard did not impact cadence 2019s consolidated financial statements or the related disclosures .
cumulative effect adjustments to retained earnings the following table presents the cumulative effect adjustments , net of income tax effects , to beginning retained earnings for new accounting standards adopted by cadence on the first day of fiscal 2018 : retained earnings ( in thousands ) .[['', 'retained earnings ( in thousands )'], ['balance december 30 2017 as previously reported', '$ 341003'], ['cumulative effect adjustment from the adoption of new accounting standards:', ''], ['revenue from contracts with customers ( topic 606 ) *', '91640'], ['financial instruments 2014overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities', '2638'], ['income taxes ( topic 740 ) : intra-entity transfers of assets other than inventory', '-8349 ( 8349 )'], ['balance december 30 2017 as adjusted', '426932'], ['net income', '345777'], ['balance december 29 2018', '$ 772709']]* the cumulative effect adjustment from the adoption of revenue from contracts with customers ( topic 606 ) is presented net of the related income tax effect of $ 17.5 million .
new accounting standards not yet adopted leases in february 2016 , the fasb issued asu 2016-02 , 201cleases ( topic 842 ) , 201d requiring , among other things , the recognition of lease liabilities and corresponding right-of-use assets on the balance sheet by lessees for all leases with a term longer than 12 months .
the new standard is effective for cadence in the first quarter of fiscal 2019 .
a modified retrospective approach is required , applying the new standard to leases existing as of the date of initial application .
an entity may choose to apply the standard as of either its effective date or the beginning of the earliest comparative period presented in the financial statements .
cadence adopted the new standard on december 30 , 2018 , the first day of fiscal 2019 , and used the effective date as the date of initial application .
consequently , financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to the first quarter of fiscal 2019 .
cadence elected certain practical expedients permitted under the transition guidance within the new standard , which among other things , allowed cadence to carry forward its prior conclusions about lease identification and classification. .


stockholder return performance graph the following graph compares the cumulative 5-year total stockholder return on our common stock relative to the cumulative total return of the nasdaq composite index and the s&p 400 information technology index .
the graph assumes that the value of the investment in our common stock on january 2 , 2010 and in each index on december 31 , 2009 ( including reinvestment of dividends ) was $ 100 and tracks it each year thereafter on the last day of cadence 2019s fiscal year through january 3 , 2015 and , for each index , on the last day of the calendar comparison of 5 year cumulative total return* among cadence design systems , inc. , the nasdaq composite index , and s&p 400 information technology cadence design systems , inc .
nasdaq composite s&p 400 information technology 12/28/13 1/3/151/1/11 12/31/11 12/29/121/2/10 *$ 100 invested on 1/2/10 in stock or 12/31/09 in index , including reinvestment of dividends .
indexes calculated on month-end basis .
copyright a9 2014 s&p , a division of the mcgraw-hill companies inc .
all rights reserved. .[['', '1/2/2010', '1/1/2011', '12/31/2011', '12/29/2012', '12/28/2013', '1/3/2015'], ['cadence design systems inc .', '100.00', '137.90', '173.62', '224.37', '232.55', '314.36'], ['nasdaq composite', '100.00', '117.61', '118.70', '139.00', '196.83', '223.74'], ['s&p 400 information technology', '100.00', '128.72', '115.22', '135.29', '173.25', '187.84']]the stock price performance included in this graph is not necessarily indicative of future stock price performance. .


security ownership of 5% ( 5 % ) holders , directors , nominees and executive officers name of beneficial owner shares of common stock beneficially owned ( 1 ) percent of common stock outstanding .[['name of beneficial owner fidelity investments', 'name of beneficial owner 57162311', '-2 ( 2 )', '6.65% ( 6.65 % )'], ['alliancebernstein lp', '48637731', '-3 ( 3 )', '5.66% ( 5.66 % )'], ['steven p . jobs', '5546451', '-4 ( 4 )', '*'], ['william v . campbell', '221004', '-5 ( 5 )', '*'], ['timothy d . cook', '12597', '-6 ( 6 )', '*'], ['millard s . drexler', '220000', '-7 ( 7 )', '*'], ['albert a . gore jr .', '60000', '-8 ( 8 )', '*'], ['ronald b . johnson', '2049890', '-9 ( 9 )', '*'], ['arthur d . levinson', '362400', '-10 ( 10 )', '*'], ['peter oppenheimer', '149768', '-11 ( 11 )', '*'], ['philip w . schiller', '256', '-12 ( 12 )', '*'], ['eric e . schmidt', '12284', '-13 ( 13 )', '*'], ['jerome b . york', '80000', '-14 ( 14 )', '*'], ['all current executive officers and directors as a group ( 15 persons )', '9378423', '-15 ( 15 )', '1.09% ( 1.09 % )']]all current executive officers and directors as a group ( 15 persons ) .
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9378423 ( 15 ) 1.09% ( 1.09 % ) ( 1 ) represents shares of common stock held and/or options held by such individuals that were exercisable at the table date or within 60 days thereafter .
this does not include options or restricted stock units that vest after 60 days .
the share numbers have been adjusted to reflect the company 2019s two-for-one stock split in february 2005 .
( 2 ) based on a form 13g/a filed february 14 , 2005 by fmr corp .
fmr corp .
lists its address as 82 devonshire street , boston , ma 02109 , in such filing .
( 3 ) based on a form 13f filed january 25 , 2006 , by barclays global investors .
barclays global investors lists its address as 45 fremont street , san francisco , ca 94105 .
( 4 ) includes 120000 shares of common stock that mr .
jobs has the right to acquire by exercise of stock options .
( 5 ) includes 220000 shares of common stock that mr .
campbell has the right to acquire by exercise of stock options .
( 6 ) excludes 600000 unvested restricted stock units .
( 7 ) includes 40000 shares of common stock that mr .
drexler holds indirectly and 180000 shares of common stock that mr .
drexler has the right to acquire by exercise of stock options .
( 8 ) consists of 60000 shares of common stock that mr .
gore has the right to acquire by exercise of stock options .
( 9 ) includes 1900000 shares of common stock that mr .
johnson has the right to acquire by exercise of stock options and excludes 450000 unvested restricted stock units .
( 10 ) includes 2000 shares of common stock that dr .
levinson holds indirectly and 100000 shares of common stock that dr .
levinson has the right to acquire by exercise of stock options .
( 11 ) excludes 450000 unvested restricted stock units .
( 12 ) excludes 400000 unvested restricted stock units. .


item 5 .
market for the registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following graph compares annual total return of our common stock , the standard & poor 2019s 500 composite stock index ( 201cs&p 500 index 201d ) and our peer group ( 201cloews peer group 201d ) for the five years ended december 31 , 2009 .
the graph assumes that the value of the investment in our common stock , the s&p 500 index and the loews peer group was $ 100 on december 31 , 2004 and that all dividends were reinvested. .[['', '2004', '2005', '2006', '2007', '2008', '2009'], ['loews common stock', '100.00', '135.92', '179.47', '219.01', '123.70', '160.62'], ['s&p 500 index', '100.00', '104.91', '121.48', '128.16', '80.74', '102.11'], ['loews peer group ( a )', '100.00', '133.59', '152.24', '174.46', '106.30', '136.35']]( a ) the loews peer group consists of the following companies that are industry competitors of our principal operating subsidiaries : ace limited , w.r .
berkley corporation , cabot oil & gas corporation , the chubb corporation , energy transfer partners l.p. , ensco international incorporated , the hartford financial services group , inc. , kinder morgan energy partners , l.p. , noble corporation , range resources corporation , spectra energy corporation ( included from december 14 , 2006 when it began trading ) , transocean , ltd .
and the travelers companies , inc .
dividend information we have paid quarterly cash dividends on loews common stock in each year since 1967 .
regular dividends of $ 0.0625 per share of loews common stock were paid in each calendar quarter of 2009 and 2008 .
we paid quarterly cash dividends on the former carolina group stock until the separation .
regular dividends of $ 0.455 per share of the former carolina group stock were paid in the first and second quarters of 2008. .


financing activities for 2014 also included an acquisition-related contingent consideration payment of $ 86 million made to champion 2019s former shareholders .
liquidity and capital resources we currently expect to fund all of our cash requirements which are reasonably foreseeable for 2017 , including scheduled debt repayments , new investments in the business , share repurchases , dividend payments , possible business acquisitions and pension contributions , with cash from operating activities , and as needed , additional short-term and/or long-term borrowings .
we continue to expect our operating cash flow to remain strong .
as of december 31 , 2016 , we had $ 327 million of cash and cash equivalents on hand , of which $ 184 million was held outside of the u.s .
as of december 31 , 2015 , we had $ 26 million of deferred tax liabilities for pre-acquisition foreign earnings associated with the legacy nalco entities and legacy champion entities that we intended to repatriate .
these liabilities were recorded as part of the respective purchase price accounting of each transaction .
the remaining foreign earnings were repatriated in 2016 , reducing the deferred tax liabilities to zero at december 31 , 2016 .
we consider the remaining portion of our foreign earnings to be indefinitely reinvested in foreign jurisdictions and we have no intention to repatriate such funds .
we continue to be focused on building our global business and these funds are available for use by our international operations .
to the extent the remaining portion of the foreign earnings would be repatriated , such amounts would be subject to income tax or foreign withholding tax liabilities that may be fully or partially offset by foreign tax credits , both in the u.s .
and in various applicable foreign jurisdictions .
as of december 31 , 2016 we had a $ 2.0 billion multi-year credit facility , which expires in december 2019 .
the credit facility has been established with a diverse syndicate of banks .
there were no borrowings under our credit facility as of december 31 , 2016 or 2015 .
the credit facility supports our $ 2.0 billion u.s .
commercial paper program and $ 2.0 billion european commercial paper program .
we increased the european commercial paper program from $ 200 million during the third quarter of 2016 .
combined borrowing under these two commercial paper programs may not exceed $ 2.0 billion .
as of december 31 , 2016 , we had no amount outstanding under either our u.s .
or european commercial paper programs .
additionally , we have other committed and uncommitted credit lines of $ 746 million with major international banks and financial institutions to support our general global funding needs , including with respect to bank supported letters of credit , performance bonds and guarantees .
approximately $ 554 million of these credit lines were available for use as of year-end 2016 .
as of december 31 , 2016 , our short-term borrowing program was rated a-2 by standard & poor 2019s and p-2 by moody 2019s .
as of december 31 , 2016 , standard & poor 2019s and moody 2019s rated our long-term credit at a- ( stable outlook ) and baa1 ( stable outlook ) , respectively .
a reduction in our credit ratings could limit or preclude our ability to issue commercial paper under our current programs , or could also adversely affect our ability to renew existing , or negotiate new , credit facilities in the future and could increase the cost of these facilities .
should this occur , we could seek additional sources of funding , including issuing additional term notes or bonds .
in addition , we have the ability , at our option , to draw upon our $ 2.0 billion of committed credit facility prior to termination .
we are in compliance with our debt covenants and other requirements of our credit agreements and indentures .
a schedule of our obligations as of december 31 , 2016 under various notes payable , long-term debt agreements , operating leases with noncancelable terms in excess of one year and interest obligations are summarized in the following table: .[['( millions )', 'total', 'payments due by period less than 1 year', 'payments due by period 2-3 years', 'payments due by period 4-5 years', 'payments due by period more than 5 years'], ['notes payable', '$ 30', '$ 30', '$ -', '$ -', '$ -'], ['commercial paper', '-', '-', '-', '-', '-'], ['long-term debt', '6652', '510', '967', '1567', '3608'], ['capital lease obligations', '5', '1', '1', '1', '2'], ['operating leases', '431', '102', '153', '105', '71'], ['interest*', '2261', '218', '396', '360', '1287'], ['total', '$ 9379', '$ 861', '$ 1517', '$ 2033', '$ 4968']]* interest on variable rate debt was calculated using the interest rate at year-end 2016 .
as of december 31 , 2016 , our gross liability for uncertain tax positions was $ 76 million .
we are not able to reasonably estimate the amount by which the liability will increase or decrease over an extended period of time or whether a cash settlement of the liability will be required .
therefore , these amounts have been excluded from the schedule of contractual obligations. .


entergy gulf states louisiana , l.l.c .
management 2019s financial discussion and analysis 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 bond indentures and other agreements .
entergy gulf states louisiana has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy gulf states louisiana 2019s receivables from the money pool were as follows as of december 31 for each of the following years: .[['2011', '2010', '2009', '2008'], ['( in thousands )', '( in thousands )', '( in thousands )', '( in thousands )'], ['$ 23596', '$ 63003', '$ 50131', '$ 11589']]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 , 2011 .
entergy gulf states louisiana obtained short-term borrowing authorization from the ferc under which it may borrow through october 2013 , up to the aggregate amount , at any one time outstanding , of $ 200 million .
see note 4 to the financial statements for further discussion of entergy gulf states louisiana 2019s short-term borrowing limits .
entergy gulf states louisiana has also obtained an order from the ferc authorizing long-term securities issuances through july 2013 .
hurricane gustav and hurricane ike in september 2008 , hurricane gustav and hurricane ike caused catastrophic damage to entergy gulf states louisiana 2019s service territory .
the storms resulted in widespread power outages , significant damage to distribution , transmission , and generation infrastructure , and the loss of sales during the power outages .
in october 2008 , entergy gulf states louisiana drew all of its $ 85 million funded storm reserve .
on october 15 , 2008 , the lpsc approved entergy gulf states louisiana 2019s request to defer and accrue carrying cost on unrecovered storm expenditures during the period the company seeks regulatory recovery .
the approval was without prejudice to the ultimate resolution of the total amount of prudently incurred storm cost or final carrying cost rate .
entergy gulf states louisiana and entergy louisiana filed their hurricane gustav and hurricane ike storm cost recovery case with the lpsc in may 2009 .
in september 2009 , entergy gulf states louisiana and entergy louisiana and the louisiana utilities restoration corporation ( lurc ) , an instrumentality of the state of louisiana , filed with the lpsc an application requesting that the lpsc grant financing orders authorizing the financing of entergy gulf states louisiana 2019s and entergy louisiana 2019s storm costs , storm reserves , and issuance costs pursuant to act 55 of the louisiana regular session of 2007 ( act 55 financings ) .
entergy gulf states louisiana 2019s and entergy louisiana 2019s hurricane katrina and hurricane rita storm costs were financed primarily by act 55 financings , as discussed below .
entergy gulf states louisiana and entergy louisiana also filed an application requesting lpsc approval for ancillary issues including the mechanism to flow charges and act 55 financing savings to customers via a storm cost offset rider .
in december 2009 , entergy gulf states louisiana and entergy louisiana entered into a stipulation agreement with the lpsc staff that provides for total recoverable costs of approximately $ 234 million for entergy gulf states louisiana and $ 394 million for entergy louisiana , including carrying costs .
under this stipulation , entergy gulf states louisiana agrees not to recover $ 4.4 million and entergy louisiana agrees not to recover $ 7.2 million of their storm restoration spending .
the stipulation also permits replenishing entergy gulf states louisiana's storm reserve in the amount of $ 90 million and entergy louisiana's storm reserve in the amount of $ 200 million when the act 55 financings are accomplished .
in march and april 2010 , entergy gulf states louisiana , entergy louisiana , and other parties to the proceeding filed with the lpsc an uncontested stipulated settlement that includes these terms and also includes entergy gulf states louisiana 2019s and entergy louisiana's proposals under the act 55 financings , which includes a commitment to pass on to customers a minimum of $ 15.5 .


the company had capital loss carryforwards for federal income tax purposes of $ 3844 and $ 4357 at december 31 , 2013 and 2012 , respectively .
the company has recognized a full valuation allowance for the capital loss carryforwards because the company does not believe these losses are more likely than not to be recovered .
the company files income tax returns in the united states federal jurisdiction and various state and foreign jurisdictions .
with few exceptions , the company is no longer subject to u.s .
federal , state or local or non-u.s income tax examinations by tax authorities for years before 2007 .
the company has state income tax examinations in progress and does not expect material adjustments to result .
the patient protection and affordable care act ( the 201cppaca 201d ) became law on march 23 , 2010 , and the health care and education reconciliation act of 2010 became law on march 30 , 2010 , which makes various amendments to certain aspects of the ppaca ( together , the 201cacts 201d ) .
the ppaca effectively changes the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under medicare part d .
the acts effectively make the subsidy payments taxable in tax years beginning after december 31 , 2012 and as a result , the company followed its original accounting for the underfunded status of the other postretirement benefits for the medicare part d adjustment and recorded a reduction in deferred tax assets and an increase in its regulatory assets amounting to $ 6241 and $ 6432 at december 31 , 2013 and 2012 , respectively .
the following table summarizes the changes in the company 2019s gross liability , excluding interest and penalties , for unrecognized tax benefits: .[['balance at january 1 2012', '$ 158578'], ['increases in current period tax positions', '40620'], ['decreases in prior period measurement of tax positions', '-18205 ( 18205 )'], ['balance at december 31 2012', '$ 180993'], ['increases in current period tax positions', '27229'], ['decreases in prior period measurement of tax positions', '-30275 ( 30275 )'], ['balance at december 31 2013', '$ 177947']]during the second quarter of 2013 , the company adopted updated income tax guidance , and as a result , reclassified as of december 31 , 2012 $ 74360 of unrecognized tax benefit from other long-term liabilities to deferred income taxes to conform to the current presentation in the accompanying consolidated balance sheets .
the total balance in the table above does not include interest and penalties of $ 242 and $ 260 as of december 31 , 2013 and 2012 , respectively , which is recorded as a component of income tax expense .
the majority of the increased tax position is attributable to temporary differences .
the increase in 2013 current period tax positions related primarily to the company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on its utility assets .
the company does not anticipate material changes to its unrecognized tax benefits within the next year .
if the company sustains all of its positions at december 31 , 2013 and 2012 , an unrecognized tax benefit of $ 7439 and $ 7532 , respectively , excluding interest and penalties , would impact the company 2019s effective tax rate. .


( b ) as of december 31 , 2014 , the total amount authorized under the stock repurchase program was $ 5.5 billion and we had remaining authorization of $ 738 million for future repurchases under our common stock repurchase program , which will expire on february 3 , 2016 .
under the stock repurchase program , management is authorized to purchase shares of the company's common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements , and subject to stock price , business and market conditions and other factors .
we have been funding and expect to continue to fund stock repurchases through a combination of cash on hand and cash generated by operations .
in the future , we may also choose to fund our stock repurchase program under our revolving credit facility or future financing transactions .
there were no repurchases of our series a and b common stock during the three months ended december 31 , 2014 .
the company first announced its stock repurchase program on august 3 , 2010 .
stock performance graph the following graph sets forth the cumulative total shareholder return on our series a common stock , series b common stock and series c common stock as compared with the cumulative total return of the companies listed in the standard and poor 2019s 500 stock index ( 201cs&p 500 index 201d ) and a peer group of companies comprised of cbs corporation class b common stock , scripps network interactive , inc. , time warner , inc. , twenty-first century fox , inc .
class a common stock ( news corporation class a common stock prior to june 2013 ) , viacom , inc .
class b common stock and the walt disney company .
the graph assumes $ 100 originally invested on december 31 , 2009 in each of our series a common stock , series b common stock and series c common stock , the s&p 500 index , and the stock of our peer group companies , including reinvestment of dividends , for the years ended december 31 , 2010 , 2011 , 2012 , 2013 and 2014 .
december 31 , december 31 , december 31 , december 31 , december 31 , december 31 .[['', 'december 312009', 'december 312010', 'december 312011', 'december 312012', 'december 312013', 'december 312014'], ['disca', '$ 100.00', '$ 135.96', '$ 133.58', '$ 206.98', '$ 294.82', '$ 224.65'], ['discb', '$ 100.00', '$ 138.79', '$ 133.61', '$ 200.95', '$ 290.40', '$ 233.86'], ['disck', '$ 100.00', '$ 138.35', '$ 142.16', '$ 220.59', '$ 316.21', '$ 254.30'], ['s&p 500', '$ 100.00', '$ 112.78', '$ 112.78', '$ 127.90', '$ 165.76', '$ 184.64'], ['peer group', '$ 100.00', '$ 118.40', '$ 135.18', '$ 182.38', '$ 291.88', '$ 319.28']]equity compensation plan information information regarding securities authorized for issuance under equity compensation plans will be set forth in our definitive proxy statement for our 2015 annual meeting of stockholders under the caption 201csecurities authorized for issuance under equity compensation plans , 201d which is incorporated herein by reference. .


future minimum lease payments for all non-cancelable operating leases at may 31 , 2013 were as follows : fiscal years ending may 31: .[['2014', '$ 11057'], ['2015', '8985'], ['2016', '7378'], ['2017', '6700'], ['2018', '6164'], ['thereafter', '16812'], ['total future minimum lease payments', '$ 57096']]we are party to a number of claims and lawsuits incidental to our business .
in our opinion , the liabilities , if any , which may ultimately result from the outcome of such matters , individually or in the aggregate , are not expected to have a material adverse impact on our financial position , liquidity or results of operations .
operating taxes we define operating taxes as taxes that are unrelated to income taxes , such as sales , property , value-add and other business taxes .
during the course of operations , we must interpret the meaning of various operating tax matters in the united states and in the foreign jurisdictions in which we do business .
taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations as they relate to such operating tax matters , which could result in the payment of additional taxes in those jurisdictions .
as of may 31 , 2013 and 2012 , we did not have liabilities for contingencies related to operating tax items based on management 2019s best estimate given our history with similar matters and interpretations of current laws and regulations .
bin/ica agreements we have entered into sponsorship or depository and processing agreements with certain banks .
these agreements allow us to use the banks 2019 identification numbers , referred to as bank identification number ( 201cbin 201d ) for visa transactions and interbank card association ( 201cica 201d ) number for mastercard transactions , to clear credit card transactions through visa and mastercard .
certain of such agreements contain financial covenants , and we were in compliance with all such covenants as of may 31 , 2013 .
our canadian visa sponsorship , which was originally obtained through a canadian financial institution , expired in march 2011 .
we have filed an application with the office of the superintendent of financial institutions canada ( 201cosfi 201d ) for the formation of a wholly owned loan company in canada which would serve as our financial institution sponsor .
on december 12 , 2012 , the loan company received a restricted order to commence and carry on business from osfi which will enable the loan company to become a direct visa member at such time that global payments concludes the appropriate bin transfer process with visa .
in march 2011 , we obtained temporary direct participation in the visa canada system , while the loan company application was pending .
we anticipate that the bin transfer process with visa will be completed by september 30 , 2013. .


notes to consolidated financial statements 2014 ( continued ) the risk-free interest rate is based on the yield of a zero coupon united states treasury security with a maturity equal to the expected life of the option from the date of the grant .
our assumption on expected volatility is based on our historical volatility .
the dividend yield assumption is calculated using our average stock price over the preceding year and the annualized amount of our current quarterly dividend .
we based our assumptions on the expected lives of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options .
restricted stock shares awarded under the restricted stock program , issued under the 2000 plan and 2005 plan , are held in escrow and released to the grantee upon the grantee 2019s satisfaction of conditions of the grantee 2019s restricted stock agreement .
the grant date fair value of restricted stock awards is based on the quoted fair market value of our common stock at the award date .
compensation expense is recognized ratably during the escrow period of the award .
grants of restricted shares are subject to forfeiture if a grantee , among other conditions , leaves our employment prior to expiration of the restricted period .
grants of restricted shares generally vest one year after the date of grant with respect to 25% ( 25 % ) of the shares granted , an additional 25% ( 25 % ) after two years , an additional 25% ( 25 % ) after three years , and the remaining 25% ( 25 % ) after four years .
the following table summarizes the changes in non-vested restricted stock awards for the years ended may 31 , 2010 and 2009 ( share awards in thousands ) : shares weighted average grant-date fair value .[['', 'shares', 'weighted average grant-date fair value'], ['non-vested at may 31 2008', '518', '$ 39'], ['granted', '430', '43'], ['vested', '-159 ( 159 )', '39'], ['forfeited', '-27 ( 27 )', '41'], ['non-vested at may 31 2009', '762', '42'], ['granted', '420', '42'], ['vested', '-302 ( 302 )', '41'], ['forfeited', '-167 ( 167 )', '43'], ['non-vested at may 31 2010', '713', '42']]the weighted average grant-date fair value of share awards granted in the year ended may 31 , 2008 was $ 38 .
the total fair value of share awards vested during the years ended may 31 , 2010 , 2009 and 2008 was $ 12.4 million , $ 6.2 million and $ 4.1 million , respectively .
we recognized compensation expense for restricted stock of $ 12.1 million , $ 9.0 million , and $ 5.7 million in the years ended may 31 , 2010 , 2009 and 2008 .
as of may 31 , 2010 , there was $ 21.1 million of total unrecognized compensation cost related to unvested restricted stock awards that is expected to be recognized over a weighted average period of 2.5 years .
employee stock purchase plan we have an employee stock purchase plan under which the sale of 2.4 million shares of our common stock has been authorized .
employees may designate up to the lesser of $ 25000 or 20% ( 20 % ) of their annual compensation for the purchase of stock .
the price for shares purchased under the plan is 85% ( 85 % ) of the market value on the last day of the quarterly purchase period .
as of may 31 , 2010 , 0.9 million shares had been issued under this plan , with 1.5 million shares reserved for future issuance. .


the company financed the acquisition with the proceeds from a $ 1.0 billion three-year term loan credit facility , $ 1.5 billion in unsecured notes , and the issuance of 61 million shares of aon common stock .
in addition , as part of the consideration , certain outstanding hewitt stock options were converted into options to purchase 4.5 million shares of aon common stock .
these items are detailed further in note 9 2018 2018debt 2019 2019 and note 12 2018 2018stockholders 2019 equity 2019 2019 .
the transaction has been accounted for using the acquisition method of accounting which requires , among other things , that most assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date .
the following table summarizes the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date .
certain estimated values are not yet finalized ( see below ) and are subject to change , which could be significant .
the company will finalize the amounts recognized as information necessary to complete the analyses is obtained .
the company expects to finalize these amounts as soon as possible but no later than one year from the acquisition the following table summarizes the preliminary values of assets acquired and liabilities assumed as of the acquisition date ( in millions ) : amounts recorded as of the acquisition .[['', 'amountsrecorded as ofthe acquisitiondate'], ['working capital ( 1 )', '$ 391'], ['property equipment and capitalized software', '319'], ['identifiable intangible assets:', ''], ['customer relationships', '1800'], ['trademarks', '890'], ['technology', '215'], ['other noncurrent assets ( 2 )', '344'], ['long-term debt', '346'], ['other noncurrent liabilities ( 3 )', '361'], ['net deferred tax liability ( 4 )', '1035'], ['net assets acquired', '2217'], ['goodwill', '2715'], ['total consideration transferred', '$ 4932']]( 1 ) includes cash and cash equivalents , short-term investments , client receivables , other current assets , accounts payable and other current liabilities .
( 2 ) includes primarily deferred contract costs and long-term investments .
( 3 ) includes primarily unfavorable lease obligations and deferred contract revenues .
( 4 ) included in other current assets ( $ 31 million ) , deferred tax assets ( $ 62 million ) , other current liabilities ( $ 32 million ) and deferred tax liabilities ( $ 1.1 billion ) in the company 2019s consolidated statements of financial position .
the acquired customer relationships are being amortized over a weighted average life of 12 years .
the technology asset is being amortized over 7 years and trademarks have been determined to have indefinite useful lives .
goodwill is calculated as the excess of the consideration transferred over the net assets acquired and represents the synergies and other benefits that are expected to arise from combining the operations of hewitt with the operations of aon , and the future economic benefits arising from other .


the principal components of eog's rollforward of valuation allowances for deferred income tax assets for the years indicated below were as follows ( in thousands ) : .[['', '2018', '2017', '2016'], ['beginning balance', '$ 466421', '$ 383221', '$ 506127'], ['increase ( 1 )', '23062', '67333', '37221'], ['decrease ( 2 )', '-26219 ( 26219 )', '-13687 ( 13687 )', '-12667 ( 12667 )'], ['other ( 3 )', '-296122 ( 296122 )', '29554', '-147460 ( 147460 )'], ['ending balance', '$ 167142', '$ 466421', '$ 383221']]( 1 ) increase in valuation allowance related to the generation of tax nols and other deferred tax assets .
( 2 ) decrease in valuation allowance associated with adjustments to certain deferred tax assets and their related allowance .
( 3 ) represents dispositions , revisions and/or foreign exchange rate variances and the effect of statutory income tax rate changes .
the united kingdom operations were sold in the fourth quarter of 2018 .
the argentina operations were sold in the third quarter of 2016 .
as of december 31 , 2018 , eog had state income tax nols being carried forward of approximately $ 1.8 billion , which , if unused , expire between 2019 and 2037 .
eog also has canadian nols of $ 183 million which can be carried forward 20 years .
as described above , these nols as well as other less significant future tax benefits , have been evaluated for the likelihood of utilization , and valuation allowances have been established for the portion of these deferred income tax assets that do not meet the 201cmore likely than not 201d threshold .
the balance of unrecognized tax benefits at december 31 , 2018 , was $ 29 million , resulting from the tax treatment of its research and experimental expenditures related to certain innovations in its horizontal drilling and completion projects , of which $ 12 million may potentially have an earnings impact .
eog records interest and penalties related to unrecognized tax benefits to its income tax provision .
currently $ 2 million of interest has been recognized in the consolidated statements of income ( loss ) and comprehensive income ( loss ) .
eog does not anticipate that the amount of the unrecognized tax benefits will change materially during the next twelve months .
eog and its subsidiaries file income tax returns and are subject to tax audits in the u.s .
and various state , local and foreign jurisdictions .
eog's earliest open tax years in its principal jurisdictions are as follows : u.s .
federal ( 2016 ) , canada ( 2014 ) , trinidad ( 2013 ) and china ( 2008 ) .
eog's foreign subsidiaries' undistributed earnings are not considered to be permanently reinvested outside of the u.s .
accordingly , eog may be required to accrue certain u.s .
federal , state , and foreign deferred income taxes on these undistributed earnings as well as on any other outside basis differences related to its investments in these subsidiaries .
as of december 31 , 2018 , eog has cumulatively recorded $ 23 million of deferred foreign income taxes for withholdings on its undistributed foreign earnings .
additionally , for tax years beginning in 2018 and later , eog's foreign earnings may be subject to the u.s .
federal "global intangible low-taxed income" ( gilti ) inclusion .
eog records any gilti tax as a period expense .
7 .
employee benefit plans stock-based compensation during 2018 , eog maintained various stock-based compensation plans as discussed below .
eog recognizes compensation expense on grants of stock options , sars , restricted stock and restricted stock units , performance units and grants made under the eog resources , inc .
employee stock purchase plan ( espp ) .
stock-based compensation expense is calculated based upon the grant date estimated fair value of the awards , net of forfeitures , based upon eog's historical employee turnover rate .
compensation expense is amortized over the shorter of the vesting period or the period from date of grant until the date the employee becomes eligible to retire without company approval. .


financing activities the decrease in cash used in 2010 relative to 2009 was attributable to a decrease in commercial paper repayments , net of proceeds , proceeds from our share issuance to bm&fbovespa as well as the termination of the nymex securities lending program in 2009 .
the decrease was partially offset by the distribution to dow jones of $ 607.5 million related to index services as well as an increase in share repurchases of $ 548.3 million .
share repurchases increased in an effort to offset most of the dilution associated with the issuance of shares to bm&fbovespa .
the increase in cash used in 2009 relative to 2008 was due to new issuances of debt of $ 2.9 billion in 2008 in conjunction with our merger with nymex holdings compared with net debt reductions of $ 900.1 million in debt instruments .
the following table summarizes our debt outstanding as of december 31 , 2010: .[['( in millions )', 'par value'], ['term loan due 2011 interest equal to 3-month libor plus 1.00% ( 1.00 % ) ( 1 )', '$ 420.5'], ['fixed rate notes due august 2013 interest equal to 5.40% ( 5.40 % )', '750.0'], ['fixed rate notes due february 2014 interest equal to 5.75% ( 5.75 % )', '750.0'], ['fixed rate notes due march 2018 interest equal to 4.40% ( 4.40 % ) ( 2 )', '612.5']]fixed rate notes due march 2018 , interest equal to 4.40% ( 4.40 % ) ( 2 ) .
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612.5 ( 1 ) in september 2008 , the company entered into an interest rate swap agreement that modified the variable interest obligation associated with this loan so that the interest payable effectively became fixed at a rate of 4.72% ( 4.72 % ) beginning with the interest accrued after october 22 , 2008 .
the interest rate swap agreement was terminated on january 11 , 2011 when the loan was repaid .
( 2 ) in march 2010 , we completed an unregistered offering of fixed rate notes due 2018 .
net proceeds from the offering were used to fund a distribution to dow jones in conjunction with our investment in index services .
in february 2010 , we entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 4.46% ( 4.46 % ) beginning with the interest accrued after march 18 , 2010 .
we maintained a $ 1.4 billion senior credit facility with various financial institutions , including the $ 420.5 million term loan and a $ 945.5 million revolving credit facility .
the senior credit facility was terminated on january 11 , 2011 .
any commercial paper outstanding was backed by the revolving credit facility .
under our senior credit facility , we were required to maintain a consolidated net worth of at least $ 12.1 billion .
effective january 11 , 2011 , we entered into a new $ 1.0 billion multi-currency revolving senior credit facility with various financial institutions .
the proceeds from the revolving senior credit facility can be used for general corporate purposes , which includes providing liquidity for our clearing house .
as long as we are not in default under the new senior credit facility , we have the option to increase the facility from time to time by an aggregate amount of up to $ 1.8 billion with the consent of the agent and lenders providing the additional funds .
the new senior credit facility matures in january 2014 and is voluntarily prepayable from time to time without premium or penalty .
under our new credit facility , we are required to remain in compliance with a consolidated net worth test , as defined as our consolidated shareholders 2019 equity as of september 30 , 2010 , giving effect to share repurchases made and special dividends paid during the term of the agreement ( and in no event greater than $ 2.0 billion in aggregate ) , multiplied by 0.65 .
we maintain a 364-day fully secured , committed line of credit with a consortium of domestic and international banks to be used in certain situations by our clearing house .
we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian for our collateral ) , or in the event of a temporary disruption with the domestic payments system that would delay payment of settlement variation between us and our clearing firms .
clearing firm guaranty fund contributions received in the form of u.s .
treasury securities , government agency securities or .


management 2019s discussion and analysis scenario analyses .
we conduct scenario analyses including as part of the comprehensive capital analysis and review ( ccar ) and dodd-frank act stress tests ( dfast ) as well as our resolution and recovery planning .
see 201cequity capital management and regulatory capital 2014 equity capital management 201d below for further information .
these scenarios cover short-term and long- term time horizons using various macroeconomic and firm- specific assumptions , based on a range of economic scenarios .
we use these analyses to assist us in developing our longer-term balance sheet management strategy , including the level and composition of assets , funding and equity capital .
additionally , these analyses help us develop approaches for maintaining appropriate funding , liquidity and capital across a variety of situations , including a severely stressed environment .
balance sheet allocation in addition to preparing our consolidated statements of financial condition in accordance with u.s .
gaap , we prepare a balance sheet that generally allocates assets to our businesses , which is a non-gaap presentation and may not be comparable to similar non-gaap presentations used by other companies .
we believe that presenting our assets on this basis is meaningful because it is consistent with the way management views and manages risks associated with the firm 2019s assets and better enables investors to assess the liquidity of the firm 2019s assets .
the table below presents our balance sheet allocation. .[['$ in millions', 'as of december 2014', 'as of december 2013'], ['global core liquid assets ( gcla )', '$ 182947', '$ 184070'], ['other cash', '7805', '5793'], ['gcla and cash', '190752', '189863'], ['secured client financing', '210641', '263386'], ['inventory', '230667', '255534'], ['secured financing agreements', '74767', '79635'], ['receivables', '47317', '39557'], ['institutional client services', '352751', '374726'], ['public equity', '4041', '4308'], ['private equity', '17979', '16236'], ['debt1', '24768', '23274'], ['loans receivable2', '28938', '14895'], ['other', '3771', '2310'], ['investing & lending', '79497', '61023'], ['total inventory and related assets', '432248', '435749'], ['other assets', '22599', '22509'], ['total assets', '$ 856240', '$ 911507']]1 .
includes $ 18.24 billion and $ 15.76 billion as of december 2014 and december 2013 , respectively , of direct loans primarily extended to corporate and private wealth management clients that are accounted for at fair value .
2 .
see note 9 to the consolidated financial statements for further information about loans receivable .
below is a description of the captions in the table above .
2030 global core liquid assets and cash .
we maintain substantial liquidity to meet a broad range of potential cash outflows and collateral needs in the event of a stressed environment .
see 201cliquidity risk management 201d below for details on the composition and sizing of our 201cglobal core liquid assets 201d ( gcla ) , previously global core excess ( gce ) .
in addition to our gcla , we maintain other operating cash balances , primarily for use in specific currencies , entities , or jurisdictions where we do not have immediate access to parent company liquidity .
2030 secured client financing .
we provide collateralized financing for client positions , including margin loans secured by client collateral , securities borrowed , and resale agreements primarily collateralized by government obligations .
as a result of client activities , we are required to segregate cash and securities to satisfy regulatory requirements .
our secured client financing arrangements , which are generally short-term , are accounted for at fair value or at amounts that approximate fair value , and include daily margin requirements to mitigate counterparty credit risk .
2030 institutional client services .
in institutional client services , we maintain inventory positions to facilitate market-making in fixed income , equity , currency and commodity products .
additionally , as part of market- making activities , we enter into resale or securities borrowing arrangements to obtain securities which we can use to cover transactions in which we or our clients have sold securities that have not yet been purchased .
the receivables in institutional client services primarily relate to securities transactions .
2030 investing & lending .
in investing & lending , we make investments and originate loans to provide financing to clients .
these investments and loans are typically longer- term in nature .
we make investments , directly and indirectly through funds that we manage , in debt securities , loans , public and private equity securities , real estate entities and other investments .
2030 other assets .
other assets are generally less liquid , non- financial assets , including property , leasehold improvements and equipment , goodwill and identifiable intangible assets , income tax-related receivables , equity- method investments , assets classified as held for sale and miscellaneous receivables .
goldman sachs 2014 annual report 49 .


2022 fuel prices 2013 crude oil prices increased at a steady rate in 2007 , rising from a low of $ 56.58 per barrel in january to close at nearly $ 96.00 per barrel at the end of december .
our 2007 average fuel price increased by 9% ( 9 % ) and added $ 242 million of operating expenses compared to 2006 .
our fuel surcharge programs are designed to help offset the impact of higher fuel prices .
in addition , our fuel conservation efforts allowed us to improve our consumption rate by 2% ( 2 % ) .
locomotive simulator training , operating practices , and technology all contributed to this improvement , saving approximately 21 million gallons of fuel in 2007 .
2022 free cash flow 2013 cash generated by operating activities totaled a record $ 3.3 billion , yielding free cash flow of $ 487 million in 2007 .
free cash flow is defined as cash provided by operating activities , less cash used in investing activities and dividends paid .
free cash flow is not considered a financial measure under accounting principles generally accepted in the united states ( gaap ) by sec regulation g and item 10 of sec regulation s-k .
we believe free cash flow is important in evaluating our financial performance and measures our ability to generate cash without additional external financings .
free cash flow should be considered in addition to , rather than as a substitute for , cash provided by operating activities .
the following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions of dollars 2007 2006 2005 .[['millions of dollars', '2007', '2006', '2005'], ['cash provided by operating activities', '$ 3277', '$ 2880', '$ 2595'], ['cash used in investing activities', '-2426 ( 2426 )', '-2042 ( 2042 )', '-2047 ( 2047 )'], ['dividends paid', '-364 ( 364 )', '-322 ( 322 )', '-314 ( 314 )'], ['free cash flow', '$ 487', '$ 516', '$ 234']]2008 outlook 2022 safety 2013 operating a safe railroad benefits our employees , our customers , our shareholders , and the public .
we will continue using a multi-faceted approach to safety , utilizing technology , risk assessment , quality control , and training for , and engaging with our employees .
we plan to implement total safety culture ( tsc ) throughout our operations .
tsc , an employee-focused initiative that has helped improve safety , is a process designed to establish , maintain , and promote safety among co-workers .
with respect to public safety , we will continue our efforts to maintain , upgrade , and close crossings , install video cameras on locomotives , and educate the public about crossing safety through various internal and industry programs , along with other activities .
2022 commodity revenue 2013 despite uncertainty regarding the u.s .
economy , we expect record revenue in 2008 based on current economic indicators , forecasted demand , improved customer service , and additional opportunities to reprice certain of our business .
yield increases and fuel surcharges will be the primary drivers of commodity revenue growth in 2008 .
we expect that overall volume will fall within a range of 1% ( 1 % ) higher to 1% ( 1 % ) lower than 2007 , with continued softness in some market sectors .
2022 transportation plan 2013 in 2008 , we will continue to evaluate traffic flows and network logistic patterns to identify additional opportunities to simplify operations and improve network efficiency and asset utilization .
we plan to maintain adequate manpower and locomotives , improve productivity using industrial engineering techniques , and improve our operating margins .
2022 fuel prices 2013 fuel prices should remain volatile , with crude oil prices and conversion and regional spreads fluctuating throughout the year .
on average , we expect fuel prices to increase 15% ( 15 % ) to 20% ( 20 % ) above the average price in 2007 .
to reduce the impact of fuel price on earnings , we will continue to seek recovery from our customers through our fuel surcharge programs and expand our fuel conservation efforts. .


the contracts were valued as of april 1 , 2002 , and an asset and a corresponding gain of $ 127 million , net of income taxes , was recorded as a cumulative effect of a change in accounting principle in the second quarter of 2002 .
the majority of the gain recorded relates to the warrior run contract , as the asset value of the deepwater contract on april 1 , 2002 , was less than $ 1 million .
the warrior run contract qualifies and was designated as a cash flow hedge as defined by sfas no .
133 and hedge accounting is applied for this contract subsequent to april 1 , 2002 .
the contract valuations were performed using current forward electricity and gas price quotes and current market data for other contract variables .
the forward curves used to value the contracts include certain assumptions , including projections of future electricity and gas prices in periods where future prices are not quoted .
fluctuations in market prices and their impact on the assumptions will cause the value of these contracts to change .
such fluctuations will increase the volatility of the company 2019s reported results of operations .
11 .
commitments , contingencies and risks operating leases 2014as of december 31 , 2002 , the company was obligated under long-term non-cancelable operating leases , primarily for office rental and site leases .
rental expense for operating leases , excluding amounts related to the sale/leaseback discussed below , was $ 31 million $ 32 million and $ 13 million in the years ended december 31 , 2002 , 2001and 2000 , respectively , including commitments of businesses classified as discontinued amounting to $ 6 million in 2002 , $ 16 million in 2001 and $ 6 million in 2000 .
the future minimum lease commitments under these leases are as follows ( in millions ) : discontinued total operations .[['', 'total', 'discontinued operations'], ['2003', '$ 30', '$ 4'], ['2004', '20', '4'], ['2005', '15', '3'], ['2006', '11', '1'], ['2007', '9', '1'], ['thereafter', '84', '1'], ['total', '$ 169', '$ 14']]sale/leaseback 2014in may 1999 , a subsidiary of the company acquired six electric generating stations from new york state electric and gas ( 2018 2018nyseg 2019 2019 ) .
concurrently , the subsidiary sold two of the plants to an unrelated third party for $ 666 million and simultaneously entered into a leasing arrangement with the unrelated party .
this transaction has been accounted for as a sale/leaseback with operating lease treatment .
rental expense was $ 54 million , $ 58 million and $ 54 million in 2002 , 2001 and 2000 , respectively .
future minimum lease commitments are as follows ( in millions ) : in connection with the lease of the two power plants , the subsidiary is required to maintain a rent reserve account equal to the maximum semi-annual payment with respect to the sum of the basic rent ( other then deferrable basic rent ) and fixed charges expected to become due in the immediately succeeding three-year period .
at december 31 , 2002 , 2001 and 2000 , the amount deposited in the rent reserve account approximated .


adobe systems incorporated notes to consolidated financial statements ( in thousands , except share and per share data ) ( continued ) note 7 .
restructuring and other charges ( continued ) previously announced restructuring programs the following table depicts the activity for previously announced restructuring programs through december 3 , 1999 : accrued accrued balance at balance at november 27 total cash december 3 1998 charges payments adjustments 1999 .[['', 'accrued balance at november 27 1998', 'total charges', 'cash payments', 'adjustments', 'accrued balance at december 3 1999'], ['accrual related to previous restructurings', '$ 8867', '$ 2014', '$ -6221 ( 6221 )', '$ -1874 ( 1874 )', '$ 772']]as of december 3 , 1999 , approximately $ 0.8 million in accrued restructuring costs remain related to the company 2019s fiscal 1998 restructuring program .
this balance is comprised of $ 0.3 million in severance and related charges , $ 0.1 million in lease termination costs , and $ 0.4 million in canceled contracts .
the majority of the accrual is expected to be paid by the first quarter of fiscal 2000 .
cash payments for the twelve months ended december 3 , 1999 related to the fiscal 1998 restructuring were $ 0.7 million , $ 3.6 million , and $ 0.4 million for severance and related charges , lease termination costs , and canceled contracts costs , respectively .
in addition , adjustments related to the fiscal 1998 restructuring were made during the year , which consisted of $ 0.4 million related to estimated lease termination costs and $ 0.3 mil- lion related to other charges .
included in the accrual balance as of november 27 , 1998 were lease termination costs related to previously announced restructuring programs in fiscal 1994 and 1995 .
cash payments for the twelve months ended december 3 , 1999 related to both restructuring programs were $ 1.5 million .
during the third and fourth quarters of fiscal 1999 , the company recorded adjustments to the accrual balance of approximately $ 1.2 million related to these programs .
an adjustment of $ 0.6 million was made in the third quarter of fiscal 1999 due to the company 2019s success in terminating a lease agreement earlier than the contract term specified .
in addition , $ 0.6 million was reduced from the restructuring accrual relating to expired lease termination costs for two facilities resulting from the merger with frame in fiscal 1995 .
as of december 3 , 1999 no accrual balances remain related to the aldus and frame mergers .
other charges during the third and fourth quarters of fiscal 1999 , the company recorded other charges of $ 8.4 million that were unusual in nature .
these charges included $ 2.0 million associated with the cancellation of a contract and $ 2.2 million for accelerated depreciation related to the adjustment of the useful life of certain assets as a result of decisions made by management as part of the restructuring program .
additionally , the company incurred a nonrecurring compensation charge totaling $ 2.6 million for a terminated employee and incurred consulting fees of $ 1.6 million to assist in the restructuring of the company 2019s operations. .


notes to consolidated financial statements 2014 ( continued ) these acquisitions have been recorded using the purchase method of accounting , and accordingly , the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition .
the operating results of each acquisition are included in our consolidated statements of income from the dates of each acquisition .
fiscal 2008 during fiscal 2008 , we acquired a portfolio of merchants that process discover transactions and the rights to process discover transactions for our existing and new merchants .
as a result of this acquisition , we will now process discover transactions similarly to how we currently process visa and mastercard transactions .
the purpose of this acquisition was to offer merchants a single point of contact for discover , visa and mastercard card processing .
during fiscal 2008 , we acquired a majority of the assets of euroenvios money transfer , s.a .
and euroenvios conecta , s.l. , which we collectively refer to as lfs spain .
lfs spain consisted of two privately- held corporations engaged in money transmittal and ancillary services from spain to settlement locations primarily in latin america .
the purpose of the acquisition was to further our strategy of expanding our customer base and market share by opening additional branch locations .
during fiscal 2008 , we acquired a series of money transfer branch locations in the united states .
the purpose of these acquisitions was to increase the market presence of our dolex-branded money transfer offering .
the following table summarizes the preliminary purchase price allocations of these business acquisitions ( in thousands ) : .[['', 'total'], ['goodwill', '$ 13536'], ['customer-related intangible assets', '4091'], ['contract-based intangible assets', '1031'], ['property and equipment', '267'], ['other current assets', '502'], ['total assets acquired', '19427'], ['current liabilities', '-2347 ( 2347 )'], ['minority interest in equity of subsidiary', '-486 ( 486 )'], ['net assets acquired', '$ 16594']]the customer-related intangible assets have amortization periods of up to 14 years .
the contract-based intangible assets have amortization periods of 3 to 10 years .
these business acquisitions were not significant to our consolidated financial statements and accordingly , we have not provided pro forma information relating to these acquisitions .
in addition , during fiscal 2008 , we acquired a customer list and long-term merchant referral agreement in our canadian merchant services channel for $ 1.7 million .
the value assigned to the customer list of $ 0.1 million was expensed immediately .
the remaining value was assigned to the merchant referral agreement and is being amortized on a straight-line basis over its useful life of 10 years. .


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 many of these licenses and concession areas or retain leases through operational or administrative actions .
for leases expiring in 2014 that we do not intend to extend or retain , unproved property impairments were recorded in 2013. .[['( in thousands )', 'net undeveloped acres expiring 2014', 'net undeveloped acres expiring 2015', 'net undeveloped acres expiring 2016'], ['u.s .', '145', '60', '46'], ['e.g. ( a )', '36', '2014', '2014'], ['other africa', '189', '2605', '189'], ['total africa', '225', '2605', '189'], ['total europe', '216', '372', '1'], ['other international', '2014', '20', '2014'], ['worldwide', '586', '3057', '236']]( a ) an exploratory well is planned on this acreage in 2014 .
oil sands mining segment we hold a 20 percent non-operated interest in the aosp , an oil sands mining and upgrading joint venture located in alberta , canada .
the joint venture produces bitumen from oil sands deposits in the athabasca region utilizing mining techniques and upgrades the bitumen to synthetic crude oils and vacuum gas oil .
the aosp 2019s mining and extraction assets are located near fort mcmurray , alberta and include the muskeg river and the jackpine mines .
gross design capacity of the combined mines is 255000 ( 51000 net to our interest ) barrels of bitumen per day .
the aosp operations use established processes to mine oil sands deposits from an open-pit mine , extract the bitumen and upgrade it into synthetic crude oils .
ore is mined using traditional truck and shovel mining techniques .
the mined ore passes through primary crushers to reduce the ore chunks in size and is then sent to rotary breakers where the ore chunks are further reduced to smaller particles .
the particles are combined with hot water to create slurry .
the slurry moves through the extraction process where it separates into sand , clay and bitumen-rich froth .
a solvent is added to the bitumen froth to separate out the remaining solids , water and heavy asphaltenes .
the solvent washes the sand and produces clean bitumen that is required for the upgrader to run efficiently .
the process yields a mixture of solvent and bitumen which is then transported from the mine to the scotford upgrader via the approximately 300-mile corridor pipeline .
the aosp's scotford upgrader is at fort saskatchewan , northeast of edmonton , alberta .
the bitumen is upgraded at scotford using both hydrotreating and hydroconversion processes to remove sulfur and break the heavy bitumen molecules into lighter products .
blendstocks acquired from outside sources are utilized in the production of our saleable products .
the upgrader produces synthetic crude oils and vacuum gas oil .
the vacuum gas oil is sold to an affiliate of the operator under a long-term contract at market-related prices , and the other products are sold in the marketplace .
as of december 31 , 2013 , we own or have rights to participate in developed and undeveloped leases totaling approximately 159000 gross ( 32000 net ) acres .
the underlying developed leases are held for the duration of the project , with royalties payable to the province of alberta .
synthetic crude oil sales volumes for 2013 were 48 mbbld and net-of-royalty production was 42 mbbld .
in december 2013 , a jackpine mine expansion project received conditional approval from the canadian government .
the project includes additional mining areas , associated processing facilities and infrastructure .
the government conditions relate to wildlife , the environment and aboriginal health issues .
we will begin evaluating the potential expansion project and government conditions after current debottlenecking activities are complete and reliability improves .
the governments of alberta and canada have agreed to partially fund quest ccs for 865 million canadian dollars .
in the third quarter of 2012 , the energy and resources conservation board ( "ercb" ) , alberta's primary energy regulator at that time , conditionally approved the project and the aosp partners approved proceeding to construct and operate quest ccs .
government funding has commenced and will continue to be paid as milestones are achieved during the development , construction and operating phases .
failure of the aosp to meet certain timing , performance and operating objectives may result in repaying some of the government funding .
construction and commissioning of quest ccs is expected to be completed by late 2015 .
in may 2013 , we announced that we terminated our discussions with respect to a potential sale of a portion of our 20 percent outside-operated interest in the aosp. .


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. .


providing a revolving credit facility of $ 7.0 billion and expiring on october 17 , 2008 .
interest on any amounts we borrow under these facilities would be charged at 90-day libor plus 15 basis points .
at december 31 , 2007 , there were no outstanding borrowings under these facilities .
our existing debt instruments and credit facilities do not have cross-default or ratings triggers , however these debt instruments and credit facilities do subject us to certain financial covenants .
covenants in our credit facilities generally require us to maintain a $ 3.0 billion minimum net worth and limit the amount of secured indebtedness that may be incurred by the company .
the notes issued in january 2008 include limitations on secured indebtedness and on sale-leaseback transactions .
these covenants are not considered material to the overall financial condition of the company , and all applicable covenant tests were satisfied as of december 31 , commitments we have contractual obligations and commitments in the form of capital leases , operating leases , debt obligations , purchase commitments , and certain other liabilities .
we intend to satisfy these obligations through the use of cash flow from operations .
the following table summarizes the expected cash outflow to satisfy our contractual obligations and commitments as of december 31 , 2007 ( in millions ) : capital leases operating leases principal interest purchase commitments pension fundings liabilities .[['year', 'capital leases', 'operating leases', 'debt principal', 'debt interest', 'purchase commitments', 'pension fundings', 'other liabilities'], ['2008', '$ 108', '$ 378', '$ 3426', '$ 329', '$ 1306', '$ 101', '$ 78'], ['2009', '73', '325', '83', '384', '791', '824', '74'], ['2010', '91', '237', '40', '380', '729', '630', '71'], ['2011', '31', '166', '33', '379', '698', '717', '69'], ['2012', '31', '116', '26', '377', '304', '859', '67'], ['after 2012', '285', '560', '6919', '6177', '2014', '334', '203'], ['total', '$ 619', '$ 1782', '$ 10527', '$ 8026', '$ 3828', '$ 3465', '$ 562']]our capital lease obligations relate primarily to leases on aircraft .
capital leases , operating leases , and purchase commitments , as well as our debt principal obligations , are discussed further in note 8 to our consolidated financial statements .
the amount of interest on our debt was calculated as the contractual interest payments due on our fixed-rate debt , in addition to interest on variable rate debt that was calculated based on interest rates as of december 31 , 2007 .
the calculations of debt interest do not take into account the effect of interest rate swap agreements .
the maturities of debt principal and interest include the effect of the january 2008 issuance of $ 4.0 billion in senior notes that were used to reduce the commercial paper balance .
purchase commitments represent contractual agreements to purchase goods or services that are legally binding , the largest of which are orders for aircraft , engines , and parts .
in february 2007 , we announced an order for 27 boeing 767-300er freighters to be delivered between 2009 and 2012 .
we also have firm commitments to purchase nine boeing 747-400f aircraft scheduled for delivery between 2008 and 2010 , and two boeing 747-400bcf aircraft scheduled for delivery during 2008 .
these aircraft purchase orders will provide for the replacement of existing capacity and anticipated future growth .
in july 2007 , we formally cancelled our previous order for ten airbus a380-800 freighter aircraft , pursuant to the provisions of an agreement signed with airbus in february 2007 .
as a result of our cancellation of the airbus a380-800 order , we received cash in july 2007 representing the return of amounts previously paid to airbus as purchase contract deposits and accrued interest on those balances .
additionally , we received a credit memorandum to be used by ups for the purchase of parts and services from airbus .
the cancellation of the airbus order did not have a material impact on our financial condition , results of operations , or liquidity. .


future capital commitments future capital commitments consist of contracted commitments , including ship construction contracts , and future expected capital expenditures necessary for operations as well as our ship refurbishment projects .
as of december 31 , 2018 , anticipated capital expenditures were $ 1.6 billion , $ 1.2 billion and $ 0.7 billion for the years ending december 31 , 2019 , 2020 and 2021 , respectively .
we have export credit financing in place for the anticipated expenditures related to ship construction contracts of $ 0.6 billion , $ 0.5 billion and $ 0.2 billion for the years ending december 31 , 2019 , 2020 and 2021 , respectively .
these future expected capital expenditures will significantly increase our depreciation and amortization expense as we take delivery of the ships .
project leonardo will introduce an additional six ships , each approximately 140000 gross tons with approximately 3300 berths , with expected delivery dates from 2022 through 2027 , subject to certain conditions .
we have a breakaway plus class ship , norwegian encore , with approximately 168000 gross tons with 4000 berths , on order for delivery in the fall of 2019 .
for the regent brand , we have orders for two explorer class ships , seven seas splendor and an additional ship , to be delivered in 2020 and 2023 , respectively .
each of the explorer class ships will be approximately 55000 gross tons and 750 berths .
for the oceania cruises brand , we have orders for two allura class ships to be delivered in 2022 and 2025 .
each of the allura class ships will be approximately 67000 gross tons and 1200 berths .
the combined contract prices of the 11 ships on order for delivery was approximately 20ac7.9 billion , or $ 9.1 billion based on the euro/u.s .
dollar exchange rate as of december 31 , 2018 .
we have obtained export credit financing which is expected to fund approximately 80% ( 80 % ) of the contract price of each ship , subject to certain conditions .
we do not anticipate any contractual breaches or cancellations to occur .
however , if any such events were to occur , it could result in , among other things , the forfeiture of prior deposits or payments made by us and potential claims and impairment losses which may materially impact our business , financial condition and results of operations .
capitalized interest for the years ended december 31 , 2018 , 2017 and 2016 was $ 30.4 million , $ 29.0 million and $ 33.7 million , respectively , primarily associated with the construction of our newbuild ships .
off-balance sheet transactions contractual obligations as of december 31 , 2018 , our contractual obligations with initial or remaining terms in excess of one year , including interest payments on long-term debt obligations , were as follows ( in thousands ) : less than 1 year 1-3 years 3-5 years more than 5 years .[['', 'total', 'less than1 year', '1-3 years', '3-5 years', 'more than5 years'], ['long-term debt ( 1 )', '$ 6609866', '$ 681218', '$ 3232177', '$ 929088', '$ 1767383'], ['operating leases ( 2 )', '128550', '16651', '31420', '27853', '52626'], ['ship construction contracts ( 3 )', '5141441', '912858', '662687', '1976223', '1589673'], ['port facilities ( 4 )', '1738036', '62388', '151682', '157330', '1366636'], ['interest ( 5 )', '974444', '222427', '404380', '165172', '182465'], ['other ( 6 )', '1381518', '248107', '433161', '354454', '345796'], ['total ( 7 )', '$ 15973855', '$ 2143649', '$ 4915507', '$ 3610120', '$ 5304579']]( 1 ) long-term debt includes discount and premiums aggregating $ 0.4 million and capital leases .
long-term debt excludes deferred financing fees which are a direct deduction from the carrying value of the related debt liability in the consolidated balance sheets .
( 2 ) operating leases are primarily for offices , motor vehicles and office equipment .
( 3 ) ship construction contracts are for our newbuild ships based on the euro/u.s .
dollar exchange rate as of december 31 , 2018 .
export credit financing is in place from syndicates of banks .
the amount does not include the two project leonardo ships , one explorer class ship and two allura class ships which were still subject to financing and certain italian government approvals as of december 31 , 2018 .
we refer you to note 17 2014 201csubsequent events 201d in the notes to consolidated financial statements for details regarding the financing for certain ships .
( 4 ) port facilities are for our usage of certain port facilities .
( 5 ) interest includes fixed and variable rates with libor held constant as of december 31 , 2018 .
( 6 ) other includes future commitments for service , maintenance and other business enhancement capital expenditure contracts .
( 7 ) total excludes $ 0.5 million of unrecognized tax benefits as of december 31 , 2018 , because an estimate of the timing of future tax settlements cannot be reasonably determined. .


table of contents part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities .
price range our common stock trades on the nasdaq global select market under the symbol 201cmktx 201d .
the range of closing price information for our common stock , as reported by nasdaq , was as follows : on february 20 , 2013 , the last reported closing price of our common stock on the nasdaq global select market was $ 39.60 .
holders there were 33 holders of record of our common stock as of february 20 , 2013 .
dividend policy we initiated a regular quarterly dividend in the fourth quarter of 2009 .
during 2012 and 2011 , we paid quarterly cash dividends of $ 0.11 per share and $ 0.09 per share , respectively .
on december 27 , 2012 , we paid a special dividend of $ 1.30 per share .
in january 2013 , our board of directors approved a quarterly cash dividend of $ 0.13 per share payable on february 28 , 2013 to stockholders of record as of the close of business on february 14 , 2013 .
any future declaration and payment of dividends will be at the sole discretion of our board of directors .
the board of directors may take into account such matters as general business conditions , our financial results , capital requirements , and contractual , legal , and regulatory restrictions on the payment of dividends to our stockholders or by our subsidiaries to the parent and any other such factors as the board of directors may deem relevant .
recent sales of unregistered securities securities authorized for issuance under equity compensation plans please see the section entitled 201cequity compensation plan information 201d in item 12. .[['2012:', 'high', 'low'], ['january 1 2012 to march 31 2012', '$ 37.79', '$ 29.26'], ['april 1 2012 to june 30 2012', '$ 37.65', '$ 26.22'], ['july 1 2012 to september 30 2012', '$ 34.00', '$ 26.88'], ['october 1 2012 to december 31 2012', '$ 35.30', '$ 29.00'], ['2011:', 'high', 'low'], ['january 1 2011 to march 31 2011', '$ 24.19', '$ 19.78'], ['april 1 2011 to june 30 2011', '$ 25.22', '$ 21.00'], ['july 1 2011 to september 30 2011', '$ 30.75', '$ 23.41'], ['october 1 2011 to december 31 2011', '$ 31.16', '$ 24.57']].


market risk management 2013 equity and other investment equity investment risk is the risk of potential losses associated with investing in both private and public equity markets .
in addition to extending credit , taking deposits , securities underwriting and trading financial instruments , we make and manage direct investments in a variety of transactions , including management buyouts , recapitalizations and growth financings in a variety of industries .
we also have investments in affiliated and non-affiliated funds that make similar investments in private equity and in debt and equity-oriented hedge funds .
the economic and/or book value of these investments and other assets such as loan servicing rights are directly affected by changes in market factors .
the primary risk measurement for equity and other investments is economic capital .
economic capital is a common measure of risk for credit , market and operational risk .
it is an estimate of the potential value depreciation over a one year horizon commensurate with solvency expectations of an institution rated single-a by the credit rating agencies .
given the illiquid nature of many of these types of investments , it can be a challenge to determine their fair values .
see note 7 fair value in the notes to consolidated financial statements in item 8 of this report for additional information .
various pnc business units manage our equity and other investment activities .
our businesses are responsible for making investment decisions within the approved policy limits and associated guidelines .
a summary of our equity investments follows : table 54 : equity investments summary in millions december 31 december 31 .[['in millions', 'december 312014', 'december 312013'], ['blackrock', '$ 6265', '$ 5940'], ['tax credit investments ( a )', '2616', '2572'], ['private equity', '1615', '1656'], ['visa', '77', '158'], ['other', '155', '234'], ['total', '$ 10728', '$ 10560']]( a ) the december 31 , 2013 amount has been updated to reflect the first quarter 2014 adoption of asu 2014-01 related to investments in low income housing tax credits .
blackrock pnc owned approximately 35 million common stock equivalent shares of blackrock equity at december 31 , 2014 , accounted for under the equity method .
the primary risk measurement , similar to other equity investments , is economic capital .
the business segments review section of this item 7 includes additional information about blackrock .
tax credit investments included in our equity investments are direct tax credit investments and equity investments held by consolidated partnerships which totaled $ 2.6 billion at both december 31 , 2014 and december 31 , 2013 .
these equity investment balances include unfunded commitments totaling $ 717 million and $ 802 million at december 31 , 2014 and december 31 , 2013 , respectively .
these unfunded commitments are included in other liabilities on our consolidated balance sheet .
note 2 loan sale and servicing activities and variable interest entities in the notes to consolidated financial statements in item 8 of this report has further information on tax credit investments .
private equity the private equity portfolio is an illiquid portfolio comprised of mezzanine and equity investments that vary by industry , stage and type of investment .
private equity investments carried at estimated fair value totaled $ 1.6 billion at december 31 , 2014 and $ 1.7 billion at december 31 , 2013 .
as of december 31 , 2014 , $ 1.1 billion was invested directly in a variety of companies and $ .5 billion was invested indirectly through various private equity funds .
included in direct investments are investment activities of two private equity funds that are consolidated for financial reporting purposes .
the noncontrolling interests of these funds totaled $ 212 million as of december 31 , 2014 .
the interests held in indirect private equity funds are not redeemable , but pnc may receive distributions over the life of the partnership from liquidation of the underlying investments .
see item 1 business 2013 supervision and regulation and item 1a risk factors of this report for discussion of the potential impacts of the volcker rule provisions of dodd-frank on our interests in and sponsorship of private funds covered by the volcker rule .
our unfunded commitments related to private equity totaled $ 140 million at december 31 , 2014 compared with $ 164 million at december 31 , 2013 .
the pnc financial services group , inc .
2013 form 10-k 93 .


table of contents 3 .
bankruptcy settlement obligations as of december 31 , 2013 , the components of "claims and other bankruptcy settlement obligations" on american's consolidated balance sheet are as follows ( in millions ) : .[['aag series a preferred stock', '$ 3329'], ['single-dip equity obligations', '1246'], ['labor-related deemed claim', '849'], ['total', '$ 5424']]as a mechanism for satisfying double-dip unsecured claims and a portion of single-dip unsecured claims , the plan of reorganization provided that such claimholders receive the mandatorily convertible aag series a preferred stock .
aag's series a preferred stock , while outstanding , votes and participates in accordance with the terms of the underlying certificate of designation .
one quarter of the shares of aag series a preferred stock is mandatorily convertible on each of the 30 th , 60th , 90th and 120th days after the effective date .
in addition , subject to certain limitations , holders of aag series a preferred stock may elect to convert up to 10 million shares of aag series a preferred stock during each 30-day period following the effective date thereby reducing the number of aag series a preferred stock to be converted on the 120 th day after the effective date .
the initial stated value of each share of aag series a preferred stock is $ 25.00 and accrues dividends at 6.25% ( 6.25 % ) per annum , calculated daily , while outstanding .
additionally , aag series a preferred stock converts to aag common stock based upon the volume weighted average price of the shares of aag common stock on the five trading days immediately preceding the conversion date , at a 3.5% ( 3.5 % ) fixed discount , subject to a conversion price floor of $ 10.875 per share and a conversion price cap of $ 33.8080 per share , below or above which the conversion rate remains fixed .
aag series a preferred stock embodies an unconditional obligation to transfer a variable number of shares based predominately on a fixed monetary amount known at inception , and , as such , it is not treated as equity of aag , but rather as a liability until such time that it is converted to aag common stock .
accordingly , american has reflected the amount of its claims satisfied through the issuance of the aag series a preferred stock as a liability included within the "bankruptcy settlement obligations" line on american 2019s consolidated balance sheets and will reflect such obligations as a liability until such time where they are satisfied through the issuance of aag common stock .
upon the satisfaction of these bankruptcy settlement obligations with aag common stock , the company will record an increase in additional paid-in capital through an intercompany equity transfer while derecognizing the related bankruptcy settlement obligation at that time .
as of february 19 , 2014 , approximately 107 million shares of aag series a preferred stock had been converted into an aggregate of 95 million shares of aag common stock .
the single-dip equity obligations , while outstanding , do not vote or participate in accordance with the terms of the plan .
these equity contract obligations , representing the amount of total single-dip unsecured creditor obligations not satisfied through the issuance of aag series a preferred stock at the effective date , represent an unconditional obligation to transfer a variable number of shares of aag common stock based predominantly on a fixed monetary amount known at inception , and , as such , are not treated as equity , but rather as liabilities until the 120 th day after emergence .
at the 120 th day after emergence , aag will issue a variable amount of aag common stock necessary to satisfy the obligation amount at emergence , plus accrued dividends of 12% ( 12 % ) per annum , calculated daily , through the 120 th day after emergence , based on the volume weighted average price of the shares of aag common stock , at a 3.5% ( 3.5 % ) discount , as specified in the plan and subject to there being a sufficient number of shares remaining for issuance to unsecured creditors under the plan .
in exchange for employees' contributions to the successful reorganization of aag , including agreeing to reductions in pay and benefits , aag and american agreed in the plan to provide each employee group a deemed claim which was used to provide a distribution of a portion of the equity of the reorganized entity to those employees .
each employee group received a deemed claim amount based upon a fixed percentage of the distributions to be made to general unsecured claimholders .
the fair value based on the expected number of shares to be distributed to satisfy this deemed claim was approximately $ 1.7 billion .
on the effective date , aag made an initial distribution of $ 595 million in common stock and american paid approximately $ 300 million in cash to cover payroll taxes related to the equity distribution .
as of december 31 , 2013 , the remaining liability to certain american labor groups and employees of $ 849 million is based upon the estimated fair value of the shares of aag common stock expected to be issued in satisfaction of such obligation , measured as if the obligation were settled using the trading price of aag common stock at december 31 , 2013 .
increases in the trading price of aag common stock after december 31 , 2013 , could cause a decrease in the fair value measurement of the remaining obligation , and vice-versa .
american will record this obligation at fair value primarily through the 120 th day after emergence , at which time the obligation will be materially settled. .


jpmorgan chase & co./2010 annual report 281 pledged assets at december 31 , 2010 , assets were pledged to collateralize repur- chase agreements , other securities financing agreements , derivative transactions and for other purposes , including to secure borrowings and public deposits .
certain of these pledged assets may be sold or repledged by the secured parties and are identified as financial instruments owned ( pledged to various parties ) on the consoli- dated balance sheets .
in addition , at december 31 , 2010 and 2009 , the firm had pledged $ 288.7 billion and $ 344.6 billion , respectively , of financial instruments it owns that may not be sold or repledged by the secured parties .
the significant components of the firm 2019s pledged assets were as follows. .[['december 31 ( in billions )', '2010', '2009'], ['securities', '$ 112.1', '$ 155.3'], ['loans', '214.8', '285.5'], ['trading assets and other', '123.2', '84.6'], ['totalassetspledged ( a )', '$ 450.1', '$ 525.4']]total assets pledged ( a ) $ 450.1 $ 525.4 ( a ) total assets pledged do not include assets of consolidated vies ; these assets are used to settle the liabilities of those entities .
see note 16 on pages 244 2013 259 of this annual report for additional information on assets and liabilities of consolidated vies .
collateral at december 31 , 2010 and 2009 , the firm had accepted assets as collateral that it could sell or repledge , deliver or otherwise use with a fair value of approximately $ 655.0 billion and $ 635.6 billion , respectively .
this collateral was generally obtained under resale agreements , securities borrowing agreements , cus- tomer margin loans and derivative agreements .
of the collateral received , approximately $ 521.3 billion and $ 472.7 billion were sold or repledged , generally as collateral under repurchase agreements , securities lending agreements or to cover short sales and to collat- eralize deposits and derivative agreements .
the reporting of collat- eral sold or repledged was revised in 2010 to include certain securities used to cover short sales and to collateralize deposits and derivative agreements .
prior period amounts have been revised to conform to the current presentation .
this revision had no impact on the firm 2019s consolidated balance sheets or its results of operations .
contingencies in 2008 , the firm resolved with the irs issues related to compliance with reporting and withholding requirements for certain accounts transferred to the bank of new york mellon corporation ( 201cbnym 201d ) in connection with the firm 2019s sale to bnym of its corporate trust business .
the resolution of these issues did not have a material effect on the firm. .