NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(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’s satisfaction of conditions of the grantee’s 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% of the shares granted, an additional 25% after two years, an additional 25% after three years, and the remaining 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):
## Table 0 ##
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 $25,000 or 20% of their annual compensation for the purchase of stock.
The price for shares purchased under the plan is 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.
China, Hong Kong, India, Macau, Malaysia, Maldives, New Zealand, the Philippines, Singapore, Sri Lanka and Taiwan.
We have a direct sales force in the United Kingdom, Spain, the Republic of Malta, the Russian Federation and the Asia-Pacific region through which we primarily sell our direct merchant acquiring services while leveraging our bank referral relationships.
In the Czech Republic and the Russian Federation, we also provide indirect merchant acquiring services.
Total revenues from our segments, by region, were as follows (in thousands):
## Table 1 ##
Based on growth in our international markets and recent management organizational changes, commencing at the beginning of fiscal 2016, we have replaced our International merchant services segment with two new operating segments: Europe and Asia-Pacific.
See “Note 14 — Segment Information” in the notes to our accompanying consolidated financial statements for information about each segment’s operating income and assets.
Our foreign operations subject us to various risks, including, without limitation, currency exchange risks and political, economic and regulatory risks.
See “Item 1A — Risk Factors” for additional information about these risks.
Industry Overview Competition We are a leading merchant acquirer in the United States, where we compete primarily with Bank of America Merchant Services, LLC, a joint venture between First Data Corporation and Bank of America Corporation, Chase Paymentech Solutions, LLC, Elavon, Inc. , a subsidiary of U. S.  Bancorp, First Data Corporation, Heartland Payment Systems Inc. , Vantiv Inc. , and Wells Fargo Bank, N. A.
We have significant market share in Canada, where we compete primarily with Chase Paymentech Solutions, LLC, Moneris Solutions Corporation, and TD Bank N. A.  Moneris Solutions Corporation is a joint venture between the Bank of Montreal and the Royal Bank of Canada.
In Europe and the Asia-Pacific region, financial institutions remain the primary providers of merchant acquiring payment services to merchants, although the outsourcing of these services to third-party service providers is becoming more prevalent.
Merchant acquiring payment services have become increasingly complex, requiring significant capital commitments to develop, maintain and update the systems necessary to provide these advanced services at competitive prices.
In the United Kingdom, we believe we are third in market position compared to our primary competitors, WorldPay (UK) Limited and Barclays Bank PLC.
In Spain, where we hold the leading market position, our primary competitors are Banco Bilbao Vizcaya Argentaria, S. A. , Banco de Sabadell S. A.  and Banco Santander S. A.
In the Czech Republic, the Russian Federation and the Asia-Pacific region, our primary competitors include financial institutions that offer merchant acquiring services in those markets.
NOTE 16 — SEGMENT INFORMATION Information About Profit and Assets We operate in three reportable segments: North America, Europe and Asia-Pacific.
We evaluate performance and allocate resources based on the operating income of each operating segment.
The operating income of each operating segment includes the revenues of the segment less expenses that are directly related to those revenues.
Operating overhead, shared costs and certain compensation costs are included in Corporate in the following table.
Interest and other income, interest and other expense and provision for income taxes are not allocated to the individual segments.
We do not evaluate the performance of or allocate resources to our operating segments using asset data.
The accounting policies of the reportable operating segments are the same as those described in the Summary of Significant Accounting Policies in “Note 1 — Basis of Presentation and Summary of Significant Accounting Policies.
” Information on segments and reconciliations to consolidated revenues and consolidated operating income are as follows for the periods presented:
## Table 2 ##
(1) As more fully described in “Note 1 — Basis of Presentation and Summary of Significant Accounting Policies” and “Note 3 — Revenues” we adopted a new revenue accounting standard on January 1, 2018 that results in revenue being presented net of certain fees that we pay to third parties, including payment networks.
This change in presentation affected our reported revenues and operating expenses during the year ended December 31, 2018 by the same amount and had no effect on operating income.
(2) Revenues, operating income and depreciation and amortization reflect the effect of acquired businesses from the respective dates of acquisition.
For further discussion, see “Note 2 — Acquisitions.
” (3) During the years ended December 31, 2018 and 2017, 2016 fiscal transition period and the year ended May 31, 2016, operating loss for Corporate included acquisition and integration expenses of $56.1 million, $94.6 million, $91.6 million, and $51.3 million, respectively.
In July 2006, we expanded our business in Brazil when we completed the purchase of all of the remaining interests in a Brazilian investment management company, Bradesco Templeton Asset Management Ltda.
, in which we previously held a partial interest.
The company has been renamed Franklin Templeton Investimentos (Brasil) Ltda.
and provides investment management services.
In January 2011, we acquired all of the outstanding shares of a specialty United Kingdom (“U.
K. ”) equity manager, Rensburg Fund Management Limited (“Rensburg”).
Rensburg has been renamed Franklin Templeton Fund Management Limited and serves as a U. K. -based equity manager.
In July 2011, we expanded our business in Australia when we acquired all of the outstanding shares of a specialty Australian equity manager, Balanced Equity Management Pty.
Limited, which provides investment management services.
In November 2012, we acquired approximately 69% of the equity of K2 Advisors Holdings LLC (“K2”), a fund of hedge funds solutions provider.
We also agreed to acquire K2’s remaining equity interests over a multi-year period beginning in 2017.
OUR INVESTMENT MANAGEMENT BUSINESS We are committed to providing active investment management and strategic advice.
Through our SIPs, we serve a variety of retail, institutional and high net-worth clients in regions and jurisdictions worldwide.
We derive our revenues and net income from providing investment management and related services to our SIPs and the sub-advised products that we service.
Our investment management fees, which represent the majority of our revenues, depend to a large extent on the level and mix of our AUM and the types of services provided.
Sales and distribution fees, also a significant source of our revenues, consist of sales charges and commissions derived from sales and distribution of our SIPs.
Our business is conducted through our subsidiaries, including those registered with the U. S.  Securities and Exchange Commission (the “SEC”) as investment advisers under the Investment Advisers Act of 1940 (the “Advisers Act”), subsidiaries registered as investment adviser equivalents in jurisdictions including Australia, Brazil, Canada, Hong Kong, India, Japan, Malaysia, Mexico, Singapore, South Korea, The Bahamas, the United Arab Emirates, the U. K. , and certain other subsidiaries.
AUM by Investment Objective We offer a broad product mix under our equity, hybrid, fixed income and cash management investment objectives and solutions.
Our fees for providing investment management services are generally based on a percentage of the market value of AUM in the accounts that we advise, the investment objectives of the accounts and the types of services that we provide for the accounts.
As of September 30, 2016, AUM by investment objective on a worldwide basis was as follows:
## Table 3 ##
Broadly speaking, the change in the net assets of our SIPs depends primarily upon two factors: (1) the increase or decrease in the market value of the securities held in the portfolio of investments; and (2) the level of sales as compared to the level of redemptions.
We are subject to the risk of asset volatility resulting from changes in the global capital markets.
In addition, changing market conditions and the evolving needs of our clients may cause a shift in our asset mix, potentially resulting in an increase or decrease in our revenues and income depending upon the nature of our AUM and the level of management fees we earn based on our AUM.
Despite such market risks, we believe that we have a competitive advantage as a result of the diversity of our SIPs available to our clients.
Stock Purchase Plan The Stock Purchase Plan, which was approved by shareholders in 2004 and 2014, provides for the Companies to contribute up to $1 for each $9 invested by their directors, officers or employees to purchase Con Edison common stock under the plan.
Eligible participants may invest up to $25,000 during any calendar year (subject to an additional limitation for officers and employees of not more than 20 percent of their pay).
Dividends paid on shares held under the plan are reinvested in additional shares unless otherwise directed by the participant.
Participants in the plan immediately vest in shares purchased by them under the plan.
The fair value of the shares of Con Edison common stock purchased under the plan was calculated using the average of the high and low composite sale prices at which shares were traded at the New York Stock Exchange on the trading day immediately preceding such purchase dates.
During 2016, 2015 and 2014, 720,268, 761,784 and 708,276 shares were purchased under the Stock Purchase Plan at a weighted average price of $72.67, $62.75 and $56.23 per share, respectively.
Note N – Financial Information by Business Segment The business segments of each of the Companies, which are its operating segments, were determined based on management’s reporting and decision-making requirements in accordance with the accounting rules for segment reporting.
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities, the Clean Energy Businesses and Con Edison Transmission.
CECONY’s principal business segments are its regulated electric, gas and steam utility activities.
Con Edison Transmission, which had begun investing in electric transmission and gas pipeline and storage assets (see Note U), was added in June 2016 as a separate reportable segment based on management’s reporting and decision-making, including performance evaluation and resource allocation.
For comparison purposes, the previously reported financial information by business segments was reclassified to reflect the current business segment presentation.
All revenues of these business segments are from customers located in the United States of America.
Also, all assets of the business segments are located in the United States of America.
The accounting policies of the segments are the same as those described in Note A.
Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided.
The financial data for the business segments are as follows
## Table 4 ##
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Management’s Discussion and Analysis As of December 2017, total staff increased 6% compared with December 2016, reflecting investments in technology and Marcus, and support of our regulatory efforts.2016 versus 2015.
Operating expenses in the consolidated statements of earnings were $20.30 billion for 2016, 19% lower than 2015.
Compensation and benefits expenses in the consolidated statements of earnings were $11.65 billion for 2016, 8% lower than 2015, reflecting a decrease in net revenues and the impact of expense savings initiatives.
The ratio of compensation and benefits to net revenues for 2016 was 38.1% compared with 37.5% for 2015.
Non-compensation expenses in the consolidated statements of earnings were $8.66 billion for 2016, 30% lower than 2015, primarily due to significantly lower net provisions for mortgage-related litigation and regulatory matters, which are included in other expenses.
In addition, market development expenses and professional fees were lower compared with 2015, reflecting expense savings initiatives.
Net provisions for litigation and regulatory proceedings for 2016 were $396 million compared with $4.01 billion for 2015 (2015 primarily related to net provisions for mortgage-related matters).2016 included a $114 million charitable contribution to Goldman Sachs Gives.
Compensation was reduced to fund this charitable contribution to Goldman Sachs Gives.
We ask our participating managing directors to make recommendations regarding potential charitable recipients for this contribution.
As of December 2016, total staff decreased 7% compared with December 2015, due to expense savings initiatives.
Provision for Taxes The effective income tax rate for 2017 was 61.5%, up from 28.2% for 2016.
The increase compared with 2016 reflected the estimated impact of Tax Legislation, which was enacted on December 22, 2017 and, among other things, lowers U. S.  corporate income tax rates as of January 1, 2018, implements a territorial tax system and imposes a repatriation tax on deemed repatriated earnings of foreign subsidiaries.
The estimated impact of Tax Legislation was an increase in income tax expense of $4.40 billion, of which $3.32 billion was due to the repatriation tax and $1.08 billion was due to the effects of the implementation of the territorial tax system and the remeasurement of U. S.  deferred tax assets at lower enacted corporate tax rates.
The impact of Tax Legislation may differ from this estimate, possibly materially, due to, among other things, (i) refinement of our calculations based on updated information, (ii) changes in interpretations and assumptions, (iii) guidance that may be issued and (iv) actions we may take as a result of Tax Legislation.
Excluding the estimated impact of Tax Legislation, the effective income tax rate for 2017 was 22.0%, down from 28.2% for 2016.
This decrease was primarily due to tax benefits on the settlement of employee share-based awards in accordance with ASU No.2016-09.
The impact of these settlements in 2017 was a reduction to our provision for taxes of $719 million and a reduction in our effective income tax rate of 6.4 percentage points.
See Note 3 to the consolidated financial statements for further information about this ASU.
The effective income tax rate, excluding the estimated impact of Tax Legislation, is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies.
We believe that presenting our effective income tax rate, excluding the estimated impact of Tax Legislation is meaningful, as excluding this item increases the comparability of period-to-period results.

<table><tr><td></td><td>Shares</td><td>Weighted Average  Grant-Date  Fair Value</td></tr><tr><td>Non-vested at May 31, 2008</td><td>518</td><td>$39</td></tr><tr><td>Granted</td><td>430</td><td>43</td></tr><tr><td>Vested</td><td>-159</td><td>39</td></tr><tr><td>Forfeited</td><td>-27</td><td>41</td></tr><tr><td>Non-vested at May 31, 2009</td><td>762</td><td>42</td></tr><tr><td>Granted</td><td>420</td><td>42</td></tr><tr><td>Vested</td><td>-302</td><td>41</td></tr><tr><td>Forfeited</td><td>-167</td><td>43</td></tr><tr><td>Non-vested at May 31, 2010</td><td>713</td><td>42</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended May 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Revenues:</td><td></td><td></td><td></td></tr><tr><td>United States</td><td>$1,655,872</td><td>$1,488,659</td><td>$1,394,675</td></tr><tr><td>Canada</td><td>313,018</td><td>320,333</td><td>311,000</td></tr><tr><td>North America merchant services</td><td>1,968,890</td><td>1,808,992</td><td>1,705,675</td></tr><tr><td>Europe</td><td>615,966</td><td>587,463</td><td>522,593</td></tr><tr><td>Asia-Pacific</td><td>188,862</td><td>157,781</td><td>147,655</td></tr><tr><td>International merchant services</td><td>804,828</td><td>745,244</td><td>670,248</td></tr><tr><td>Consolidated revenues</td><td>$2,773,718</td><td>$2,554,236</td><td>$2,375,923</td></tr></table>
<table><tr><td></td><td colspan="2">Year EndedDecember 31,</td><td rowspan="2">Seven MonthsEndedDecember 31, 2016</td><td rowspan="2">Year EndedMay 31, 2016</td></tr><tr><td></td><td>2018</td><td>2017</td></tr><tr><td></td><td colspan="4">(in thousands)</td></tr><tr><td>Revenues<sup>-1(2)</sup>:</td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$2,522,284</td><td>$2,929,522</td><td>$1,650,616</td><td>$2,052,623</td></tr><tr><td>Europe</td><td>610,930</td><td>767,524</td><td>403,823</td><td>631,900</td></tr><tr><td>Asia-Pacific</td><td>233,152</td><td>278,117</td><td>148,457</td><td>213,627</td></tr><tr><td>Consolidated revenues</td><td>$3,366,366</td><td>$3,975,163</td><td>$2,202,896</td><td>$2,898,150</td></tr><tr><td>Operating income (loss)<sup>(2)</sup>:</td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$570,630</td><td>$457,009</td><td>$233,850</td><td>$307,626</td></tr><tr><td>Europe</td><td>318,392</td><td>272,769</td><td>145,767</td><td>244,837</td></tr><tr><td>Asia-Pacific</td><td>93,402</td><td>81,273</td><td>37,530</td><td>50,743</td></tr><tr><td>Corporate<sup>-2</sup></td><td>-245,369</td><td>-252,183</td><td>-179,196</td><td>-178,262</td></tr><tr><td>Consolidated operating income</td><td>$737,055</td><td>$558,868</td><td>$237,951</td><td>$424,944</td></tr><tr><td>Depreciation and amortization<sup>-2</sup>:</td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$444,182</td><td>$379,953</td><td>$208,198</td><td>$128,618</td></tr><tr><td>Europe</td><td>46,007</td><td>46,928</td><td>26,178</td><td>40,194</td></tr><tr><td>Asia-Pacific</td><td>24,935</td><td>16,466</td><td>10,385</td><td>13,935</td></tr><tr><td>Corporate</td><td>7,689</td><td>7,804</td><td>2,810</td><td>5,134</td></tr><tr><td>Consolidated depreciation and amortization</td><td>$522,813</td><td>$451,151</td><td>$247,571</td><td>$187,881</td></tr></table>
<table><tr><td>Investment Objective</td><td>Value in Billions</td><td>Percentage of Total AUM</td></tr><tr><td>Equity</td><td></td><td></td></tr><tr><td>Growth potential, income potential, value or various combinations thereof</td><td>$303.7</td><td>41%</td></tr><tr><td>Hybrid</td><td></td><td></td></tr><tr><td>Asset allocation, balanced, flexible, alternative and income-mixed funds</td><td>137.4</td><td>19%</td></tr><tr><td>Fixed Income</td><td></td><td></td></tr><tr><td>Global/international, U.S. tax-free and U.S. taxable</td><td>286.1</td><td>39%</td></tr><tr><td>Cash Management</td><td></td><td></td></tr><tr><td>Short-term liquid assets</td><td>6.1</td><td>1%</td></tr><tr><td>Total</td><td>$733.3</td><td>100%</td></tr></table>
<table><tr><td>As of and for the Year Ended December 31, 2016(Millions of Dollars)</td><td>Operatingrevenues</td><td>Inter-segment revenues</td><td>Depreciationandamortization</td><td>Operatingincome</td><td>Other Income (deductions)</td><td>Interestcharges</td><td>Incometaxes onoperatingincome (a)</td><td>Totalassets</td><td>Capitalexpenditures</td></tr><tr><td>CECONY</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric</td><td>$8,106</td><td>$17</td><td>$865</td><td>$1,847</td><td>$2</td><td>$459</td><td>$495</td><td>$30,708</td><td>$1,819</td></tr><tr><td>Gas</td><td>1,508</td><td>6</td><td>159</td><td>357</td><td>-1</td><td>105</td><td>92</td><td>7,553</td><td>811</td></tr><tr><td>Steam</td><td>551</td><td>88</td><td>82</td><td>58</td><td>-1</td><td>39</td><td>30</td><td>2,595</td><td>126</td></tr><tr><td>Consolidation adjustments</td><td>—</td><td>-111</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total CECONY</td><td>$10,165</td><td>$—</td><td>$1,106</td><td>$2,262</td><td>$—</td><td>$603</td><td>$617</td><td>$40,856</td><td>$2,756</td></tr><tr><td>O&R</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electric</td><td>$637</td><td>$—</td><td>$49</td><td>$95</td><td>$1</td><td>$24</td><td>$30</td><td>$1,949</td><td>$114</td></tr><tr><td>Gas</td><td>184</td><td>—</td><td>18</td><td>35</td><td>—</td><td>12</td><td>10</td><td>809</td><td>52</td></tr><tr><td>Other</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total O&R</td><td>$821</td><td>$—</td><td>$67</td><td>$130</td><td>$1</td><td>$36</td><td>$40</td><td>$2,758</td><td>$166</td></tr><tr><td>Clean Energy Businesses</td><td>$1,091</td><td>$7</td><td>$42</td><td>$183</td><td>$21</td><td>$34</td><td>$53</td><td>$2,551</td><td>$1,235</td></tr><tr><td>Con Edison Transmission</td><td>—</td><td>—</td><td>—</td><td>-3</td><td>43</td><td>6</td><td>—</td><td>1,150</td><td>1,078</td></tr><tr><td>Other (b)</td><td>-2</td><td>-7</td><td>1</td><td>3</td><td>-1</td><td>17</td><td>4</td><td>940</td><td>—</td></tr><tr><td>Total Con Edison</td><td>$12,075</td><td>$—</td><td>$1,216</td><td>$2,575</td><td>$64</td><td>$696</td><td>$714</td><td>$48,255</td><td>$5,235</td></tr></table>

Question: What will Consolidated operating income be like in 2019 if it develops with the same increasing rate as current? (in thousands)