THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Commercial Lending.
The firm’s commercial lending commitments are extended to investment-grade and noninvestment-grade corporate borrowers.
Commitments to investment-grade corporate borrowers are principally used for operating liquidity and general corporate purposes.
The firm also extends lending commitments in connection with contingent acquisition financing and other types of corporate lending as well as commercial real estate financing.
Commitments that are extended for contingent acquisition financing are often intended to be short-term in nature, as borrowers often seek to replace them with other funding sources.
Sumitomo Mitsui Financial Group, Inc.  (SMFG) provides the firm with credit loss protection on certain approved loan commitments (primarily investment-grade commercial lending commitments).
The notional amount of such loan commitments was $26.88 billion and $27.03 billion as of December 2016 and December 2015, respectively.
The credit loss protection on loan commitments provided by SMFG is generally limited to 95% of the first loss the firm realizes on such commitments, up to a maximum of approximately $950 million.
In addition, subject to the satisfaction of certain conditions, upon the firm’s request, SMFG will provide protection for 70% of additional losses on such commitments, up to a maximum of $1.13 billion, of which $768 million of protection had been provided as of both December 2016 and December 2015.
The firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by SMFG.
These instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity, or credit default swaps that reference a market index.
Warehouse Financing.
The firm provides financing to clients who warehouse financial assets.
These arrangements are secured by the warehoused assets, primarily consisting of consumer and corporate loans.
Contingent and Forward Starting Resale and Securities Borrowing Agreements/Forward Starting Repurchase and Secured Lending Agreements The firm enters into resale and securities borrowing agreements and repurchase and secured lending agreements that settle at a future date, generally within three business days.
The firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements.
The firm’s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused.
Letters of Credit The firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements.
Investment Commitments The firm’s investment commitments include commitments to invest in private equity, real estate and other assets directly and through funds that the firm raises and manages.
Investment commitments include $2.10 billion and $2.86 billion as of December 2016 and December 2015, respectively, related to commitments to invest in funds managed by the firm.
If these commitments are called, they would be funded at market value on the date of investment.
Leases The firm has contractual obligations under long-term noncancelable lease agreements for office space expiring on various dates through 2069.
Certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges.
The table below presents future minimum rental payments, net of minimum sublease rentals.
## Table 0 ##
Rent charged to operating expense was $244 million for 2016, $249 million for 2015 and $309 million for 2014.
Operating leases include office space held in excess of current requirements.
Rent expense relating to space held for growth is included in “Occupancy.
” The firm records a liability, based on the fair value of the remaining lease rentals reduced by any potential or existing sublease rentals, for leases where the firm has ceased using the space and management has concluded that the firm will not derive any future economic benefits.
Costs to terminate a lease before the end of its term are recognized and measured at fair value on termination.
During 2016, the firm incurred exit costs of approximately $68 million related to excess office space.
Interest Expense, Net Interest expense, net for the year ended December 31, 2010 was a $0.4 million, a decrease of $0.5 million compared to $1.0 million in 2009 due to average debt outstanding over the full year being less than the prior year and an increase in cash on hand.
Loss on Sales/Impairment of assets, Net Loss on Sales/Impairment of assets, net improved to $0.1 million loss for the year ended December 31, 2010 compared to $2.9 million loss in 2009 due to an impairment of assets charge of $2.9 million attributed to a write down of the Company’s routing and scheduling initiative in 2009.
Taxes The Company’s effective tax rate was 37.3% in 2010 compared to 33.5% in 2009.
The reduced rate in 2009 was due to a tax benefit by converting several of Rollins, Inc. ’s wholly-owned subsidiaries from C corporations to limited liability companies partially offset by taxes on repatriation of Canadian cash to the United States from Orkin, Inc. ’s wholly-owned subsidiary Orkin Canada.
Liquidity and Capital Resources Cash and Cash Flow The Company’s cash and cash equivalents at December 31, 2011, 2010, and 2009 were $46.3 million, $20.9 million and $9.5 million, respectively
## Table 1 ##
The Company’s operations generated cash of $154.6 million for the year ended December 31, 2011 primarily from net income of $100.7 million, compared with cash provided by operating activities of $124.1 million in 2010 and $110.8 million in 2009.
The Company believes its current cash and cash equivalents balances, future cash flows expected to be generated from operating activities and available borrowings under its $175.0 million credit facility will be sufficient to finance its current operations and obligations, and fund expansion of the business for the foreseeable future.
The Company made contributions totaling $4.9 million to the Rollins, Inc.  and its wholly-owned subsidiaries defined benefit retirement plans (the ‘‘Plans’’) during the year ended December 31, 2011 and $5.2 million and $5.0 million during the years ended December 31, 2010 and 2009, respectively, as a result of the Plans’ funding status.
The Company is considering making contributions to its Plans of approximately $5.0 million during fiscal 2012.
In the opinion of management, additional Plan contributions will not have a material effect on the Company’s financial position, results of operations or liquidity.
The Company used $29.2 million on investing activities for the year ended December 31, 2011 compared to $47.6 million and $26.6 million during 2010 and 2009, respectively, and of that, invested approximately $18.7 million in capital expenditures during the 2011 compared to $13.0 million and $15.7 million during 2010 and 2009, respectively.
Capital expenditures for the year consisted primarily of equipment replacements and technology related projects.
The Company expects to invest between $15.0 million and $20.0 million in 2012 in capital expenditures.
During 2011, the Company’s subsidiaries acquired several
The following table presents our plan assets using the fair value hierarchy as of December 31, 2011.
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
See note 7 for a brief description of the three levels under the fair value hierarchy.
## Table 2 ##
The following table presents our plan assets using the fair value hierarchy as of December 31, 2010.
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
## Table 3 ##
(1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds.
(2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades.
(3) Some International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets.
(4) Tactical Composite funds invest in stocks, bonds and cash, both domestic and international.
These assets are valued primarily using a market approach based on the quoted market prices of identical instruments in their respective markets.
(5) Real estate fund values are primarily reported by the fund manager and are based on valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market based comparable data.
The fair values of major classes of assets acquired and liabilities assumed along with the contingent consideration liability recorded during the valuation period of acquisition is included in the reconciliation of the total consideration as follows (in thousands):
## Table 4 ##
3.
DEBT On October 31, 2012, the Company entered into a Revolving Credit Agreement with SunTrust Bank and Bank of America, N. A.  for an unsecured line of credit of up to $175.0 million, which includes a $75.0 million letter of credit subfacility, and a $25.0 million swingline subfacility.
The Credit Agreement was amended on October 30, 2014 to extend the maturity date to October 31, 2018 and add three optional one year extensions.
On October 27, 2015 the Company exercised a one year extension option to extend the maturity date to October 31, 2019.
As of December 31, 2017, no borrowings were outstanding under the line of credit or under the swingline subfacility.
The Company maintains approximately $29.4 million in letters of credit.
These letters of credit are required by the Company’s fronting insurance companies and/or certain states, due to the Company’s self-insured status, to secure various workers’ compensation and casualty insurance contracts coverage.
The Company believes that it has adequate liquid assets, funding sources and insurance accruals to accommodate such claims.
The Revolving Credit Agreement is guaranteed by certain of Rollins’ domestic-subsidiaries.
The maturity date of the Credit Agreement is October 31, 2019, subject to up to two optional extensions of the Credit Agreement for one year each.
Revolving loans under the Revolving Credit Agreement bear interest at one of the following two rates, at the Company’s election: ?
the Base Rate, which shall mean the highest of (i) the per annum rate which the Administrative Agent publicly announces from time to time as its prime lending rate, (ii) the Federal Funds rate, plus 0.50% per annum, and (iii) the Adjusted LIBOR Rate (which equals LIBOR as increased to account for the maximum reserve percentages established by the U. S.  Federal Reserve) determined on a daily basis for an interest period of one (1)month, plus 1.0% per annum.  ?
with respect to any Eurodollar borrowings, the Adjusted LIBOR Rate plus an additional amount, which varies between 0.75% and 1.00%, based upon Rollins’ then-current debt-to-EBITDA ratio.
As of December 31, 2017, the additional rate allocated was .75%.
The Revolving Credit Agreement contains customary terms and conditions, including, without limitation, certain financial covenants including covenants restricting the Company’s ability to incur certain indebtedness or liens, or to merge or consolidate with or sell substantially all of its assets to another entity.
Further, the Revolving Credit Agreement contains financial covenants restricting the Company’s ability to permit the ratio of the Company’s consolidated debt to EBITDA to exceed certain limits.
The Company was in compliance with applicable debt covenants at December 31, 2017 and expects to maintain compliance throughout 2018.4.
TRADE RECEIVABLES The Allowance for Doubtful Accounts is principally calculated based on the application of estimated loss percentages to delinquency aging totals, based on contractual terms, for the various categories of receivables.
Bad debt write-offs occur according to Company policies that are specific to pest control, commercial and termite accounts.

<table><tr><td><i>$ in millions</i></td><td>As of December 2016</td></tr><tr><td>2017</td><td>$ 290</td></tr><tr><td>2018</td><td>282</td></tr><tr><td>2019</td><td>238</td></tr><tr><td>2020</td><td>206</td></tr><tr><td>2021</td><td>159</td></tr><tr><td>2022 - thereafter</td><td>766</td></tr><tr><td>Total</td><td>$1,941</td></tr></table>
<table><tr><td></td><td colspan="3">Years ended December 31,</td></tr><tr><td>(in thousands)</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Net cash provided by operating activities</td><td>$154,647</td><td>$124,053</td><td>$110,846</td></tr><tr><td>Net cash used in investing activities</td><td>-29,154</td><td>-47,645</td><td>-26,562</td></tr><tr><td>Net cash provided by (used in) financing activities</td><td>-99,427</td><td>-65,497</td><td>-89,753</td></tr><tr><td>Effect of exchange rate changes on cash</td><td>-704</td><td>498</td><td>1,257</td></tr><tr><td>Net increase/(decrease) in cash and cash equivalents</td><td>$25,362</td><td>$11,409</td><td>$-4,212</td></tr></table>
<table><tr><td></td><td></td><td>Total</td><td>Level 1</td><td>Level 2</td><td>Level 3</td></tr><tr><td>-1</td><td>Cash and Cash Equivalents</td><td>$918</td><td>$918</td><td>$—</td><td>$—</td></tr><tr><td>-2</td><td>Fixed Income Securities</td><td>31,167</td><td>—</td><td>31,167</td><td>—</td></tr><tr><td></td><td>Domestic Equity Securities</td><td></td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>Rollins, Inc. Stock</td><td>34,050</td><td>34,050</td><td>—</td><td>—</td></tr><tr><td></td><td>Other Securities</td><td>21,032</td><td>21,032</td><td>—</td><td>—</td></tr><tr><td></td><td>Global Equity Securities</td><td>18,751</td><td>18,751</td><td>—</td><td>—</td></tr><tr><td>-3</td><td>International Equity Securities</td><td>19,120</td><td>9,316</td><td>9,804</td><td>—</td></tr><tr><td>-4</td><td>Tactical Composite</td><td>20,680</td><td>—</td><td>20,680</td><td>—</td></tr><tr><td>-5</td><td>Real Estate</td><td>7,092</td><td>—</td><td>—</td><td>7,092</td></tr><tr><td>-6</td><td>Real Return</td><td>12,234</td><td>—</td><td>12,234</td><td>—</td></tr><tr><td>-7</td><td>Alternative Investments</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>Total</td><td>$165,044</td><td>$84,067</td><td>$73,885</td><td>$7,092</td></tr></table>
<table><tr><td></td><td></td><td>Total</td><td>Level 1</td><td>Level 2</td><td>Level 3</td></tr><tr><td>-1</td><td>Cash and Cash Equivalents</td><td>$10,747</td><td>$10,747</td><td>$—</td><td>$—</td></tr><tr><td>-2</td><td>Fixed Income Securities</td><td>37,464</td><td>—</td><td>37,464</td><td>—</td></tr><tr><td></td><td>Domestic Equity Securities</td><td></td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>Rollins, Inc. Stock</td><td>30,265</td><td>30,265</td><td>—</td><td>—</td></tr><tr><td></td><td>Other Securities</td><td>37,989</td><td>37,989</td><td>—</td><td>—</td></tr><tr><td></td><td>Global Equity Securities</td><td>5,953</td><td>—</td><td>5,953</td><td>—</td></tr><tr><td>-3</td><td>International Equity Securities</td><td>19,789</td><td>9,272</td><td>10,517</td><td>—</td></tr><tr><td>-4</td><td>Tactical Composite</td><td>13,875</td><td>—</td><td>13,875</td><td>—</td></tr><tr><td>-5</td><td>Real Estate</td><td>6,248</td><td>—</td><td>—</td><td>6,248</td></tr><tr><td>-6</td><td>Real Return</td><td>7,704</td><td>—</td><td>7,704</td><td>—</td></tr><tr><td>-7</td><td>Alternative Investments</td><td>1,423</td><td>—</td><td>—</td><td>1,423</td></tr><tr><td></td><td>Total</td><td>$171,457</td><td>$88,273</td><td>$75,513</td><td>$7,671</td></tr></table>
<table><tr><td>December 31,</td><td>2017</td><td>2016</td></tr><tr><td>Accounts receivable, net</td><td>$3,836</td><td>$3,334</td></tr><tr><td>Materials and supplies</td><td>312</td><td>353</td></tr><tr><td>Equipment and property</td><td>3,027</td><td>4,525</td></tr><tr><td>Goodwill</td><td>87,261</td><td>6,468</td></tr><tr><td>Customer contracts</td><td>60,695</td><td>49,365</td></tr><tr><td>Other intangible assets</td><td>20,086</td><td>1,285</td></tr><tr><td>Current liabilities</td><td>-30,344</td><td>-10,809</td></tr><tr><td>Other assets and liabilities, net</td><td>1,209</td><td>-594</td></tr><tr><td>Total consideration paid</td><td>146,082</td><td>53,927</td></tr><tr><td>Less: Contingent consideration liability</td><td>-15,893</td><td>-7,619</td></tr><tr><td>Total cash purchase price</td><td>$130,189</td><td>$46,308</td></tr></table>

Question: Is the total amount of all elements in Level 1 greater than that in Level 2?