The following table presents estimated future benefit payments, using the same assumptions used in determining the Company’s benefit obligations as of December 31, 2011.
Benefit payments depend on future employment and compensation levels, years of service, and mortality.
Changes in any of these factors could significantly affect these estimated amounts.
## Table 0 ##
Pension Plan Assets Pension assets include private and public equities, government and corporate bonds, cash and cash equivalents, private real estate funds and hedge funds and other assets.
Plan assets are held in a master trust and overseen by the Company’s Investment Committee.
All assets are externally managed through a combination of active and passive strategies.
Managers may only invest in the asset classes for which they have been appointed.
The Investment Committee is responsible for setting the policy that provides the framework for management of the assets.
The Plan’s Investment Committee has set the minimum and maximum permitted values for each asset class in the Company’s pension plan master trust for the year ended December 31, 2011, as follows:
## Table 1 ##
The general objectives of the Company’s pension asset strategy are to earn a rate of return over time to satisfy the benefit obligations of the plans, meet minimum ERISA funding requirements, and maintain sufficient liquidity to pay benefits and address other cash requirements within the master trust.
Specific investment objectives include reducing the volatility of pension assets relative to benefit obligations, achieving a competitive, total investment return, achieving diversification between and within asset classes, and managing other risks.
Investment objectives for each asset class are determined based on specific risks and investment opportunities identified.
Decisions regarding investment policies and asset allocation are made with the understanding of the historical and prospective return and risk characteristics of various asset classes, the effect of asset allocations on funded status, future Company contributions, and projected expenditures, including benefits.
The Company plans to update its asset allocations periodically.
The Company uses various analytics to determine the optimal asset mix and consider plan obligation characteristics, duration, liquidity characteristics, funding requirements, expected rates of return, rebalancing, and the distribution of returns.
Actual allocations to each asset class could vary from target allocations due to periodic investment strategy changes, short-term market value fluctuations, the length of time it takes to fully implement investment allocation positions, such as private equity and real estate and other alternative investments, and the timing of benefit payments and Company contributions.
Taking into account the asset allocation ranges, the investment fiduciary determines the specific allocation of the master trust’s investments within various asset classes.
The master trust utilizes select investment strategies, which are executed through separate account or fund structures with external investment managers who demonstrate experience and expertise in the appropriate asset classes and styles.
The selection of investment managers is done with careful evaluation of all aspects of performance and risk, demonstrated fiduciary responsibility, investment management experience, and a review of the investment managers’ policies and processes.
Investment performance is monitored frequently against appropriate benchmarks and tracked to compliance guidelines with the assistance of third party consultants and performance evaluation tools and metrics.
Plan assets are stated at fair value.
The Company employs a variety of pricing sources to estimate the fair value of its pension plan assets including independent pricing vendors, dealer or counterparty-supplied valuations, third-party appraisals, appraisals prepared by the Company’s investment managers or other experts.
Equity Compensation Plan Information The following table presents the equity securities available for issuance under our equity compensation plans as of December 31, 2017.
## Table 2 ##
(1) Includes grants made under the Huntington Ingalls Industries, Inc.  2012 Long-Term Incentive Stock Plan (the "2012 Plan"), which was approved by our stockholders on May 2, 2012, and the Huntington Ingalls Industries, Inc.  2011 Long-Term Incentive Stock Plan (the "2011 Plan"), which was approved by the sole stockholder of HII prior to its spin-off from Northrop Grumman Corporation.
Of these shares, 27,123 were stock rights granted under the 2011 Plan.
In addition, this number includes 28,763 stock rights, 3,075 restricted stock rights, and 389,898 restricted performance stock rights granted under the 2012 Plan, assuming target performance achievement.
(2) There are no awards made under plans not approved by security holders.
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Information as to certain relationships and related transactions and director independence will be incorporated herein by reference to the Proxy Statement for our 2018 Annual Meeting of Stockholders, to be filed within 120 days after the end of the Company’s fiscal year.
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES Information as to principal accountant fees and services will be incorporated herein by reference to the Proxy Statement for our 2018 Annual Meeting of Stockholders, to be filed within 120 days after the end of the Company’s fiscal year.
ITEM 6.
SELECTED FINANCIAL DATA The following table sets forth our selected financial data.
The table should be read in conjunction with Item 7 and Item 8 of this Annual Report on Form 10-K.
## Table 3 ##
(1) Long-term debt does not include the current portion of long-term debt, which is included in current liabilities.
(2) Free cash flow is a non-GAAP financial measure and represents cash from operating activities less capital expenditures net of related grant proceeds.
See Liquidity and Capital Resources in Item 7 for more information on this measure.
product sales decreased $68 million in 2017, primarily as a result of higher volumes in 2016 from the resolution of outstanding contract changes on a nuclear and environmental commercial contract.
Service revenues in 2017 increased $431 million, or 30%, from 2016.
Service revenues at our Ingalls segment increased $41 million in 2017, as a result of higher volumes in surface combatants services.
Service revenues at our Newport News segment increased $57 million in 2017, primarily as a result of higher volumes in naval nuclear support services and submarines services, partially offset by lower volumes in aircraft carriers services.
Service revenues at our Technical Solutions segment increased $333 million in 2017, primarily as a result of higher volumes in integrated missions solutions services following the December 2016 acquisition of Camber and higher volumes in fleet support and oil and gas services.2016 - Product sales in 2016 decreased $34 million, or 1%, from 2015.
Product sales at our Ingalls segment increased $138 million in 2016, primarily as a result of higher volumes in surface combatants, partially offset by lower volumes in the Legend class NSC program.
Newport News product sales decreased $275 million in 2016, primarily as a result of lower volumes in aircraft carriers.
Technical Solutions product sales increased $103 million in 2016, primarily as a result of higher volumes in nuclear and environmental products.
Service revenues in 2016 increased $82 million, or 6%, from 2015.
Service revenues at our Ingalls segment increased $63 million in 2016, as a result of higher volumes in surface combatants and amphibious assault ships services.
Service revenues at our Newport News segment increased $65 million in 2016, primarily as a result of higher volumes in submarines and naval nuclear support services.
Service revenues at our Technical Solutions segment decreased $46 million in 2016, primarily due to lower volumes in nuclear and environmental, fleet support, and oil and gas services, partially offset by higher volumes in integrated missions solutions services following the acquisition of Camber.
Cost of Sales and Service Revenues Cost of product sales, cost of service revenues, income from operating investments, net, and general and administrative expenses were as follows:
## Table 4 ##
Cost of Product Sales 2017 - Cost of product sales in 2017 increased $64 million, or 1%, compared to 2016.
Cost of product sales at our Ingalls segment increased $64 million in 2017, primarily as a result of lower risk retirement in the San Antonio class (LPD 17) program, following delivery of USS John P.  Murtha (LPD 26) in 2016, as well as the volume changes described above, partially offset by higher risk retirement on Tripoli (LHA 7).
Cost of product sales at our Newport News segment increased $56 million in 2017, primarily as a result of the volume changes described above and the resolution of outstanding contract changes on the RCOH of the redelivered USS Abraham Lincoln (CVN 72), partially offset by lower risk retirement in the Virginia class (SSN 774) submarine program.
Cost of product sales at our Technical Solutions segment decreased $56 million in 2017, primarily due to the resolution in 2016 of outstanding contract changes on a nuclear and environmental commercial contract, partially offset by the establishment of an allowance for accounts receivable on a nuclear and environmental commercial contract in 2017.
Cost of product sales as a percentage of product sales increased from 77.8% in 2016 to 79.7% in 2017,
Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature of these assets, which have original maturity dates of 90 days or less.
Concentration Risk - The Company’s assets that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents.
The Company places its cash and cash equivalents with reputable financial institutions and limits the amount of credit exposure with any one of them.
The Company regularly evaluates the creditworthiness of these financial institutions and minimizes this credit risk by entering into transactions with highquality counterparties, limiting the exposure to each counterparty, and monitoring the financial condition of its counterparties.
In connection with its U. S.  Government contracts, the Company is required to procure certain raw materials, components, and parts from supply sources approved by the U. S.  Government.
Only one supplier may exist for certain components and parts required to manufacture the Company's products.
Accounts Receivable - Accounts receivable include amounts billed and currently due from customers, amounts currently due but unbilled, certain estimated contract change amounts, claims or requests for equitable adjustment in negotiation that are probable of recovery, and amounts retained by the customer pending contract completion.
Inventoried Costs - Inventoried costs primarily relate to production costs of contracts in process and company owned raw materials, which are stated at the lower of cost or net realizable value, generally using the average cost method.
Under the Company's U. S.  Government contracts, the customer asserts title to, or a security interest in, inventories related to such contracts as a result of contract advances, performance-based payments, and progress payments.
In accordance with industry practice, inventoried costs are classified as a current asset and include amounts related to contracts having production cycles longer than one year.
Inventoried costs also include work in process under contracts that recognize revenues using labor dollars as the basis of the percentage-of-completion calculation.
These costs represent accumulated contract costs less cost of sales as calculated using the percentage-of-completion method, not in excess of recoverable value.
Advance Payments and Billings in Excess of Revenues - Payments received in excess of inventoried costs and revenues are recorded as advance payment liabilities.
Property, Plant, and Equipment - Depreciable properties owned by the Company are recorded at cost and depreciated over the estimated useful lives of individual assets.
Major improvements are capitalized while expenditures for maintenance, repairs, and minor improvements are expensed.
Costs incurred for computer software developed or obtained for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine years.
Leasehold improvements are amortized over the shorter of their useful lives or the term of the lease.
The remaining assets are depreciated using the straight-line method, with the following lives:

<table><tr><td></td><td></td><td colspan="2"> Other Benefits</td></tr><tr><td> ($ in millions)</td><td> Pension Benefits</td><td> Benefit Payments</td><td> Subsidy Receipts</td></tr><tr><td>2012</td><td>$127</td><td>$35</td><td>$2</td></tr><tr><td>2013</td><td>143</td><td>39</td><td>2</td></tr><tr><td>2014</td><td>160</td><td>44</td><td>2</td></tr><tr><td>2015</td><td>176</td><td>49</td><td>2</td></tr><tr><td>2016</td><td>194</td><td>52</td><td>2</td></tr><tr><td>Years 2017 to 2021</td><td>1,243</td><td>306</td><td>14</td></tr></table>
<table><tr><td></td><td> Range</td></tr><tr><td>U.S. equities</td><td>27 - 40%</td></tr><tr><td>International equities</td><td>13 - 25%</td></tr><tr><td>Long bonds</td><td>25 - 50%</td></tr><tr><td>Alternative investments</td><td>5 - 15%</td></tr></table>
<table><tr><td>Plan category</td><td>Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights<sup>-1</sup> (a)(b)</td><td>Weighted-Average Exercise Price of Outstanding Options,Warrants and Rights</td><td>Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding SecuritiesReflected in Column (a)) (c)</td></tr><tr><td>Equity compensation plans approved by security holders</td><td>448,859</td><td>$0.00</td><td>4,087,587</td></tr><tr><td>Equity compensation plans not approved by security holders<sup>-2</sup></td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>448,859</td><td>$0.00</td><td>4,087,587</td></tr></table>
<table><tr><td></td><td>Year Ended December 31</td></tr><tr><td>($ in millions, except per share amounts)</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Sales and service revenues</td><td>$7,441</td><td>$7,068</td><td>$7,020</td><td>$6,957</td><td>$6,820</td></tr><tr><td>Goodwill impairment</td><td>—</td><td>—</td><td>75</td><td>47</td><td>—</td></tr><tr><td>Operating income (loss)</td><td>865</td><td>858</td><td>769</td><td>655</td><td>512</td></tr><tr><td>Net earnings (loss)</td><td>479</td><td>573</td><td>404</td><td>338</td><td>261</td></tr><tr><td>Total assets<sup></sup></td><td>6,374</td><td>6,352</td><td>6,024</td><td>6,239</td><td>6,190</td></tr><tr><td>Long-term debt<sup>-1</sup></td><td>1,279</td><td>1,278</td><td>1,273</td><td>1,562</td><td>1,665</td></tr><tr><td>Total long-term obligations<sup></sup></td><td>3,225</td><td>3,356</td><td>3,260</td><td>3,562</td><td>3,277</td></tr><tr><td>Net cash provided by (used in) operating activities</td><td>814</td><td>822</td><td>861</td><td>755</td><td>260</td></tr><tr><td>Free cash flow<sup>-2</sup></td><td>453</td><td>537</td><td>673</td><td>590</td><td>121</td></tr><tr><td>Dividends declared per share</td><td>$2.52</td><td>$2.10</td><td>$1.70</td><td>$1.00</td><td>$0.50</td></tr><tr><td>Basic earnings (loss) per share</td><td>$10.48</td><td>$12.24</td><td>$8.43</td><td>$6.93</td><td>$5.25</td></tr><tr><td>Diluted earnings (loss) per share</td><td>$10.46</td><td>$12.14</td><td>$8.36</td><td>$6.86</td><td>$5.18</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31</td><td colspan="2">2017 over 2016</td><td colspan="2">2016 over 2015</td></tr><tr><td>($ in millions)</td><td>2017</td><td>2016</td><td>2015</td><td>Dollars</td><td>Percent</td><td>Dollars</td><td>Percent</td></tr><tr><td>Cost of product sales</td><td>$4,444</td><td>$4,380</td><td>$4,319</td><td>$64</td><td>1%</td><td>$61</td><td>1%</td></tr><tr><td>% of product sales</td><td>79.7%</td><td>77.8%</td><td>76.2%</td><td>—</td><td></td><td>—</td><td></td></tr><tr><td>Cost of service revenues</td><td>1,574</td><td>1,228</td><td>1,198</td><td>346</td><td>28%</td><td>30</td><td>3%</td></tr><tr><td>% of service revenues</td><td>84.3%</td><td>85.5%</td><td>88.4%</td><td>—</td><td></td><td>—</td><td></td></tr><tr><td>Income (loss) from operating investments, net</td><td>12</td><td>6</td><td>10</td><td>6</td><td>100%</td><td>-4</td><td>-40%</td></tr><tr><td>Other income and gains</td><td>—</td><td>15</td><td>—</td><td>-15</td><td>-100%</td><td>15</td><td>—%</td></tr><tr><td>General and administrative expenses</td><td>570</td><td>623</td><td>669</td><td>-53</td><td>-9%</td><td>-46</td><td>-7%</td></tr><tr><td>% of total sales and service revenues</td><td>7.7%</td><td>8.8%</td><td>9.5%</td><td>—</td><td></td><td>—</td><td></td></tr><tr><td>Goodwill impairment</td><td>—</td><td>—</td><td>75</td><td>—</td><td>—%</td><td>-75</td><td>-100%</td></tr><tr><td>Cost of sales and service revenues</td><td>$6,576</td><td>$6,210</td><td>$6,251</td><td>$366</td><td>6%</td><td>$-41</td><td>-1%</td></tr></table>

Question: Which element has the second largest number in 2017?
Answer: Cost of service revenues