Stock-Based Incentive Compensation Beginning in the second quarter of fiscal 2003, we adopted the disclosure provisions of Statement of Financial Accounting Standards No.148 (“SFAS 148”), “Accounting for Stock-Based Compensation - Transition and Disclosure - an amendment to Statement of Financial Accounting Standards No.123 (“SFAS 123”), Accounting for Stock-Based Compensation.
” See “Recent Accounting Pronouncements” for further information regarding SFAS 148.
We account for our fixed stock option plans and our employee stock purchase plan using the intrinsic value method.
The following table sets forth the pro forma amounts of net income and net income per share that would have resulted if we had accounted for our employee stock plans under the fair value recognition provisions of SFAS 123.
## Table 0 ##
For purposes of computing pro forma net income, we estimate the fair value of each option grant and employee stock purchase plan purchase right on the date of grant using the Black-Scholes option pricing model.
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable, characteristics not present in our option grants and employee stock purchase plan shares.
Additionally, option valuation models require the input of highly subjective assumptions, including the expected volatility of the stock price.
Because our employee stock options and employee stock purchase plan shares have characteristics significantly different from those of traded options and because changes in the subjective input assumptions can materially affect the fair value estimates, in management’s opinion, the existing models do not provide a reliable single measure of the fair value of its stock-based awards.
For purposes of the pro forma disclosures, the expected volatility assumptions we used prior to the third quarter of fiscal 2003 were based solely on the historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options.
Beginning with the third quarter of fiscal 2003, we modified our approach and expected volatility by considering other relevant factors in accordance with SFAS 123.
We considered implied volatility in market-traded options on our common stock as well as third party volatility quotes.
In addition, we considered historical volatility.
We will continue to monitor these and other relevant factors used to measure expected volatility for future option grants.
Also, beginning with the third quarter of fiscal 2003, we decreased our estimate of the expected life of new options granted to our employees from 3 years to 2.5 years.
We based our expected life assumption on historical experience as well as the terms and vesting periods of the options granted.
The reduction in the estimated expected life was a result of an analysis of our historical experience, including the same periods of time used for our volatility analysis.
Under the Devon Plan, eligible employees may purchase shares of our common stock through an investment in the Devon Stock Fund, which is administered by an independent trustee.
Eligible employees purchased approximately 46,000 shares of our common stock in 2017, at then-prevailing stock prices, that they held through their ownership in the Devon Stock Fund.
We acquired the shares of our common stock sold under this plan through open-market purchases.
Similarly, eligible Canadian employees may purchase shares of our common stock through an investment in the Canadian Plan, which is administered by an independent trustee.
Eligible employees purchased approximately 6,200 shares of our common stock in 2017.
Shares sold under the Canadian Plan were acquired through open-market purchases.
These shares and any interest in the Canadian Plan were offered and sold in reliance on the exemptions for offers and sales of securities made outside of the U. S. , including under Regulation S for offers and sales of securities to employees pursuant to an employee benefit plan established and administered in accordance with the law of a country other than the U. S.  Item 6.
Selected Financial Data The financial information below should be read in conjunction with “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8.
Financial Statements and Supplementary Data” of this report.
## Table 1 ##
* Prior year amounts have been recast due to change in accounting principle.
See Note 2 in “Item 8.
Financial Statements and Supplementary Data” of this report.
(1) Material asset impairments and acquisition and divestiture activity have had significant impacts on operating results and the carrying value of our oil and gas assets.
More discussion on these items can be found in “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 3 and Note 6 of “Item 8.
Financial Statements and Supplementary Data” of this report.
(2) Debt balances at December 31, 2017, 2016, 2015 and 2014 include $3.5 billion, $3.3 billion, $3.1 billion and $2.0 billion, respectively, of EnLink and the General Partner debt that is non-recourse to Devon.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Introduction The following discussion and analysis presents management’s perspective of our business, financial condition and overall performance.
This information is intended to provide investors with an understanding of our past performance, current financial condition and outlook for the future and should be read in conjunction with “Item 8.
Financial Statements and Supplementary Data” of this report.
Overview of 2017 Results During 2017, we generated solid operating results with our strategy of operating in North America’s best resource plays, delivering superior execution, continuing disciplined capital allocation and maintaining a high degree of financial strength.
Led by our development in the STACK and Delaware Basin, we continued to improve our 90-day initial production rates.
With investments in proprietary data tools, predictive analytics and artificial intelligence, we are delivering industry-leading, initial-rate well productivity performance and improving the performance of our established wells.
Compared to 2016, commodity prices increased significantly and were the primary driver for improvements in Devon’s earnings and cash flow during 2017.
We exited 2017 with liquidity comprised of $2.7 billion of cash and $2.9 billion of available credit under our Senior Credit Facility.
We have no significant debt maturities until 2021.
We further enhanced our financial strength by completing approximately $415 million of our announced $1 billion asset divestiture program in 2017.
We anticipate closing the remaining divestitures in 2018.
In 2018 and beyond, we have the financial capacity to further accelerate investment across our best-in-class U. S.  resource plays.
We are increasing drilling activity and will continue to shift our production mix to high-margin products.
We will continue our premier technical work to drive capital allocation and efficiency and industryleading well productivity results.
We will continue to maximize the value of our base production by sustaining the operational efficiencies we have achieved.
Finally, we will continue to manage activity levels within our cash flows.
We expect this disciplined approach will position us to deliver capital-efficient, cash-flow expansion over the next two years.
Key measures of our financial performance in 2017 are summarized in the following table.
Increased commodity prices as well as continued focus on our production expenses improved our 2017 financial performance as compared to 2016, as seen in the table below.
More details for these metrics are found within the “Results of Operations – 2017 vs.  2016”, below.
## Table 2 ##

<table><tr><td></td><td colspan="3">Year Ended</td></tr><tr><td></td><td>November 28, 2003</td><td>November 29, 2002</td><td>November 30, 2001</td></tr><tr><td>Net income:</td><td></td><td></td><td></td></tr><tr><td>As reported</td><td>$266,344</td><td>$191,399</td><td>$205,644</td></tr><tr><td>Add: Stock-based employee compensation expense included in reported net income, net of related tax effects</td><td>1,837</td><td>4,411</td><td>11,697</td></tr><tr><td>Less: Total stock-based employee compensation expense determined under fair value based method, net of related tax effects</td><td>-188,427</td><td>-189,164</td><td>-187,116</td></tr><tr><td>Pro forma</td><td>$79,754</td><td>$6,646</td><td>$30,225</td></tr><tr><td>Basic net income per share:</td><td></td><td></td><td></td></tr><tr><td>As reported</td><td>$1.14</td><td>$0.81</td><td>$0.86</td></tr><tr><td>Pro forma</td><td>$0.34</td><td>$0.03</td><td>$0.13</td></tr><tr><td>Diluted net income per share:</td><td></td><td></td><td></td></tr><tr><td>As reported</td><td>$1.10</td><td>$0.79</td><td>$0.83</td></tr><tr><td>Pro forma</td><td>$0.33</td><td>$0.03</td><td>$0.12</td></tr></table>
<table><tr><td></td><td>2017</td><td>2016*</td><td>2015*</td><td>2014*</td><td>2013*</td></tr><tr><td>Statement of Earnings data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Upstream revenues</td><td>$5,307</td><td>$3,981</td><td>$5,885</td><td>$11,619</td><td>$7,296</td></tr><tr><td>Total revenues</td><td>$13,949</td><td>$10,304</td><td>$13,145</td><td>$19,285</td><td>$9,362</td></tr><tr><td>Earnings (loss) from continuing operations<sup>(1)</sup></td><td>$1,078</td><td>$-1,458</td><td>$-13,645</td><td>$-753</td><td>$-938</td></tr><tr><td>Earnings (loss) from continuing operationsattributable to Devon<sup>(1)</sup></td><td>$898</td><td>$-1,056</td><td>$-12,896</td><td>$-837</td><td>$-938</td></tr><tr><td>Earnings (loss) from continuing operations per shareattributable to Devon:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic<sup>-1</sup></td><td>$1.71</td><td>$-2.09</td><td>$-31.72</td><td>$-2.08</td><td>$-2.34</td></tr><tr><td>Diluted<sup>-1</sup></td><td>$1.70</td><td>$-2.09</td><td>$-31.72</td><td>$-2.08</td><td>$-2.34</td></tr><tr><td>Cash dividends per common share</td><td>$0.24</td><td>$0.42</td><td>$0.96</td><td>$0.94</td><td>$0.86</td></tr><tr><td>Balance Sheet data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets<sup>-1</sup></td><td>$30,241</td><td>$28,675</td><td>$29,673</td><td>$49,253</td><td>$44,390</td></tr><tr><td>Long-term debt<sup>-2</sup></td><td>$10,291</td><td>$10,154</td><td>$12,056</td><td>$9,761</td><td>$7,888</td></tr><tr><td>Stockholders' equity</td><td>$14,104</td><td>$12,722</td><td>$11,111</td><td>$24,789</td><td>$20,729</td></tr><tr><td>Common shares outstanding</td><td>525</td><td>523</td><td>418</td><td>409</td><td>406</td></tr></table>
<table><tr><td></td><td>2017</td><td>Change</td><td>2016*</td><td>Change</td><td>2015*</td></tr><tr><td>Net earnings (loss) attributable to Devon</td><td>$898</td><td>+185%</td><td>$-1,056</td><td>+92%</td><td>$-12,896</td></tr><tr><td>Net earnings (loss) per diluted share attributable to Devon</td><td>$1.70</td><td>+181%</td><td>$-2.09</td><td>+93%</td><td>$-31.72</td></tr><tr><td>Core earnings (loss) attributable to Devon<sup>(1)</sup></td><td>$427</td><td>+217%</td><td>$-367</td><td>- 430%</td><td>$111</td></tr><tr><td>Core earnings (loss) per diluted share attributable to Devon<sup>(1)</sup></td><td>$0.81</td><td>+210%</td><td>$-0.73</td><td>- 382%</td><td>$0.26</td></tr><tr><td>Retained production (MBoe/d)</td><td>541</td><td>- 4%</td><td>563</td><td>- 3%</td><td>580</td></tr><tr><td>Total production (MBoe/d)</td><td>543</td><td>- 11%</td><td>611</td><td>- 10%</td><td>680</td></tr><tr><td>Realized price per Boe<sup>-2</sup></td><td>$25.96</td><td>+39%</td><td>$18.72</td><td>- 14%</td><td>$21.68</td></tr><tr><td>Operating cash flow</td><td>$2,909</td><td>+94%</td><td>$1,500</td><td>- 69%</td><td>$4,898</td></tr><tr><td>Capitalized expenditures, including acquisitions</td><td>$2,937</td><td>- 25%</td><td>$3,908</td><td>- 32%</td><td>$5,712</td></tr><tr><td>Shareholder and noncontrolling interests distributions</td><td>$481</td><td>- 8%</td><td>$525</td><td>- 19%</td><td>$650</td></tr><tr><td>Cash and cash equivalents</td><td>$2,673</td><td>+36%</td><td>$1,959</td><td>- 15%</td><td>$2,310</td></tr><tr><td>Total debt</td><td>$10,406</td><td>+2%</td><td>$10,154</td><td>- 22%</td><td>$13,032</td></tr><tr><td>Reserves (MMBoe)</td><td>2,152</td><td>+5%</td><td>2,058</td><td>- 6%</td><td>2,182</td></tr></table>

Question: What is the growing rate of Operating cash flow in the year with the most Cash and cash equivalents?