See Note 8 of the Notes to Consolidated Financial Statements in Item 8.
Financial Statements and Supplementary Data for a further discussion of these transactions.
Capital Resources Outlook for 2007 International Paper expects to be able to meet projected capital expenditures, service existing debt and meet working capital and dividend requirements during 2007 through current cash balances and cash from operations and divestiture proceeds, supplemented as required by its various existing credit facilities.
International Paper has approximately $3.0 billion of committed liquidity, which we believe is adequate to cover expected operating cash flow variability during our industry’s economic cycles.
In March 2006, International Paper replaced its maturing $750 million revolving bank credit agreement with a 364-day $500 million fully committed revolving bank credit agreement that expires in March 2007 and has a facility fee of 0.08% payable quarterly, and replaced its $1.25 billion revolving bank credit agreement with a $1.5 billion fully committed revolving bank credit agreement that expires in March 2011 and has a facility fee of 0.10% payable quarterly.
In addition, in October 2006, the Company amended its existing receivables securitization program that provides for up to $1.2 billion of commercial paperbased financings with a facility fee of 0.20% and an expiration date in November 2007, to provide up to $1.0 billion of available commercial paper-based financings with a facility fee of 0.10% and an expiration date of October 2009.
At December 31, 2006, there were no borrowings under either of the bank credit agreements or the receivables securitization program.
Additionally, International Paper Investments (Luxembourg) S. ar.
l. , a wholly-owned subsidiary of International Paper, has a $100 million bank credit agreement maturing in December 2007, with $40 million in borrowings outstanding as of December 31, 2006.
The Company will continue to rely upon debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flow or divestiture proceeds.
Funding decisions will be guided by our capital structure planning and liability management practices.
The primary goals of the Company’s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense.
The majority of International Paper’s debt is accessed through global public capital markets where we have a wide base of investors.
The Company was in compliance with all its debt covenants at December 31, 2006.
Principal financial covenants include maintenance of a minimum net worth, defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock, plus any goodwill impairment charges, of $9 billion; and a maximum total debt to capital ratio, defined as total debt divided by total debt plus net worth, of 60%.
Maintaining an investment grade credit rating is an important element of International Paper’s financing strategy.
In the third quarter of 2006, Standard & Poor’s reaffirmed the Company’s long-term credit rating of BBB, revised its ratings outlook from negative to stable, and upgraded its short-term credit rating from A-3 to A-2.
At December 31, 2006, the Company also held long-term credit ratings of Baa3 (stable outlook) and a short-term credit rating of P-3 from Moody’s Investor Services.
Contractual obligations for future payments under existing debt and lease commitments and purchase obligations at December 31, 2006, were as follows:
## Table 0 ##
(a) Total debt includes scheduled principal payments only.
(b) Included in these amounts are $76 million of lease obligations related to discontinued operations and businesses held for sale that are due as follows: 2007 - $23 million; 2008 - $19 million; 2009 - $15 million; 2010 - $7 million; 2011 - $5 million; and thereafter - $7 million.
(c) Included in these amounts are $1.3 billion of purchase obligations related to discontinued operations and businesses held for sale that are due as follows: 2007 - $335 million; 2008 - $199 million; 2009 - $157 million; 2010 - $143 million; 2011 - $141 million; and thereafter - $331 million.
(d) Includes $2.2 billion relating to fiber supply agreements entered into at the time of the Transformation Plan forestland sales.
TRANSFORMATION PLAN In July 2005, the Company had announced a plan to focus its business portfolio on two key global platform businesses: Uncoated Papers (including Distribution) and Packaging.
The Plan’s other elements include exploring strategic options for other businesses, including possible sale or spin-off, returning value to shareholders, strengthening the balance sheet, selective reinvestment to strengthen the paper
STOCK-BASED COMPENSATION Effective January 1, 2006, International Paper adopted Statement of Financial Accounting Standards (SFAS) No.123 (revised 2004), “Share-Based Payment,” using the modified prospective transition method.
As required under this standard, costs resulting from all stock-based compensation transactions are recognized in the financial statements.
The amount of compensation cost recorded is measured based on the grant-date fair value of the equity or liability instruments issued.
In addition, liability awards are remeasured each reporting period.
Compensation cost is recognized over the period that an employee provides service in exchange for the award.
See Note 17 for a further discussion of stock-based compensation plans.
Prior to January 1, 2006, stock options and other stock-based compensation awards were accounted for using the intrinsic value method prescribed by Accounting Principles Board (APB) Opinion No.25, “Accounting for Stock Issued to Employees,” and related interpretations.
Had compensation cost in 2005 and 2004 for International Paper’s stock-based compensation programs been determined consistent with the provisions of SFAS No.123(R), net earnings, basic earnings per common share and diluted earnings per common share would have been reduced to the pro forma amounts shown below:
## Table 1 ##
The effect on 2005 and 2004 pro forma net earnings, basic earnings per common share and diluted earnings per common share of expensing the estimated fair market value of stock options is not necessarily representative of the effect on reported earnings for future years due to decreases in the number of options outstanding due to the elimination of the Company’s stock option program for all U. S.  employees in 2005.
ENVIRONMENTAL REMEDIATION COSTS Costs associated with environmental remediation obligations are accrued when such costs are probable and reasonably estimable.
Such accruals are adjusted as further information develops or circumstances change.
Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable.
ASSET RETIREMENT OBLIGATIONS In accordance with the provisions of SFAS No.143, “Accounting for Asset Retirement Obligations,” a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated.
The liability is accreted over time and the asset is depreciated over the life of the related equipment or facility.
International Paper’s asset retirement obligations under this standard principally relate to closure costs for landfills.
Revisions to the liability could occur due to changes in the estimated costs or timing of closures, or possible new federal or state regulations affecting these closures (see Note 11).
TRANSLATION OF FINANCIAL STATEMENTS Balance sheets of international operations are translated into U. S.  dollars at year-end exchange rates, while statements of operations are translated at average rates.
Adjustments resulting from financial statement translations are included as cumulative translation adjustments in Accumulated other comprehensive income (loss) (OCI).
See Note 13 related to derivatives and hedging activities.
NOTE 2 EARNINGS PER COMMON SHARE Basic earnings per common share from continuing operations are computed by dividing earnings from continuing operations by the weighted average number of common shares outstanding.
Diluted earnings per common share from continuing operations were computed assuming that all potentially dilutive securities, including “in-the-money” stock options, were converted into common shares at the beginning of each year.
In addition, the computation of diluted earnings per share reflects the inclusion of contingently convertible securities in periods when dilutive.
siding manufactured by Masonite that were similar to those alleged with respect to hardboard siding.
The class consisted of all U. S.  property owners having Omniwood siding installed on and incorporated into buildings from January 1, 1992, to January 6, 1999.
Claims relating to Omniwood siding must be made by January 6, 2009.
The third suit, entitled Smith, et al.
v.  Masonite Corporation, et al.
, was filed in 1995 and settled on January 6, 1999 (the Woodruf Settlement).
The plaintiffs alleged that Woodruf roofing manufactured by Masonite was defective and caused damage to the structure underneath the roofing.
The class consisted of all U. S.  property owners who had incorporated and installed Woodruf roofing from January 1, 1980, to January 6, 1999.
For roofing that was installed between January 1, 1980, and December 31, 1989, the deadline for filing claims expired January 6, 2006, and for roofing installed between January 1, 1990, and January 6, 1999, claims must be made by January 6, 2009.
All of the settlements provide for monetary compensation to class members meeting the settlement requirements on a claims-made basis, which requires a class member to individually submit proof of damage to, or caused by, Masonite product, proof of square footage involved and proofs of various other matters.
All of the settlements also provide for payment of attorneys’ fees equaling 15% (in the case of the Hardboard Settlement) and 13% (in the case of the Omniwood and Woodruf Settlements) of the settlement amounts paid to class members.
CLAIMS FILING AND EVALUATION For all of the settlements, once a claim is determined to be valid, the amount of the claim is determined by reference to a negotiated compensation formula designed to compensate the homeowner for product damage to the structure.
The compensation formula is based on (1) the average cost per square foot for product replacement, including material and labor as calculated by industry standards, in the area in which the structure is located, adjusted for inflation, or (2) the cost of appropriate refinishing as determined by industry standards in such area.
Pursuant to the settlement agreements, these costs are determined by reference to “Mean’s Price Data,” as published by R. S.  Means Company and updated annually for inflation.
Persons receiving compensation pursuant to this formula also agree to release the Company and Masonite from all other property damage claims relating to the product in question.
In connection with the products involved in the settlements described above, where there is damage, the process of degradation, once begun, continues until repairs are made.
The Company estimates that approximately four million structures have installed products that are the subject of the Hardboard Settlement, 300,000 structures have installed products that are the subject of the Omniwood Settlement and 86,000 structures have installed products that are the subject of the Woodruf Settlement.
Masonite stopped selling the products involved in the Hardboard Settlement in May 2001, the products involved in the Woodruf Settlement in May 1996 and the products involved in the Omniwood Settlement in September 1996.
Persons who are class members under the settlements who do not pursue remedies may have recourse to warranties, if any, in existence at the expiration of the respective terms established under the settlement agreements for making claims.
The warranty period generally extends for 25 years following the installation of the product in question and, although the warranties vary from product to product, they generally provide for a payment of up to two times the purchase price.
CLAIMS PAYMENT DATA Through December 31, 2006, net settlement payments totaled approximately $1.1 billion ($883 million for the Hardboard Settlement, $153 million for the Omniwood Settlement and $54 million for the Woodruf Settlement), including $159 million of non-refundable attorneys’ fees.
The average settlement cost per claim for the years ended December 31, 2006, 2005 and 2004 for the Hardboard, Omniwood and Woodruf Settlements are set forth in the table below: AVERAGE SETTLEMENT COST PER CLAIM
## Table 2 ##
The above information is calculated by dividing the aggregate amount of claims paid during the specified period by the number of claims paid during such period.
Committee of the Board of Directors (the Committee) that administers the ICP.
Additionally, restricted stock, which may be deferred into RSU’s, may be awarded under a Restricted Stock and Deferred Compensation Plan for Non-Employee Directors.
STOCK OPTION PROGRAM International Paper accounts for stock options in accordance  with  guidance  under ASC  718, “Compensation  –  Stock  Compensation.
” Compensation expense is recorded over the related service period based on the grant-date fair market value.
Since all outstanding options were vested as of July 14, 2005, only replacement option grants are expensed.
No replacement options were granted in 2011.
During each reporting period, diluted earnings per share is calculated by assuming that “in-the-money” options are exercised and the exercise proceeds are used to repurchase shares in the marketplace.
When options are actually exercised, option proceeds are credited to equity and issued shares are included in the computation of earnings per common share, with no effect on reported earnings.
Equity is also increased by the tax benefit that International Paper will receive in its tax return for income reported by the employees in their individual tax returns.
Under the program, upon exercise of an option, a replacement option may be granted under certain circumstances with an exercise price equal to the market price at the time of exercise and with a term extending to the expiration date of the original option.
The Company has discontinued the issuance of stock options for all eligible U. S.  and non-U.
S.  employees.
In the United States, the stock option program was replaced with a performance-based restricted share program to more closely tie long-term incentive compensation to Company performance on two key performance drivers: return on investment (ROI) and total shareholder return (TSR).
The following summarizes the status of the Stock Option Program and the changes during the three years ending December 31, 2013
## Table 3 ##
(a) The table does not include Continuity Award tandem stock options described below.
No fair market value is assigned to these options under ASC 718.
The tandem restricted shares accompanying these options are expensed over their vesting period.
(b) The table includes options outstanding under an acquired company plan under which options may no longer be granted.
PERFORMANCE SHARE PLAN Under the Performance Share Plan (PSP), contingent awards of International Paper common stock are granted by the Committee.
The PSP awards are earned over a three-year period.
For the 2011 grant, one-fourth of the award is earned during each twelve-month period, with the final one-fourth segment earned over the full three-year period.
Beginning with the 2012 grant, the award is earned evenly over a thirty-six- month period.
PSP awards are earned based on the achievement of defined performance rankings of ROI and TSR compared to ROI and TSR peer groups of companies.
Awards are weighted 75% for ROI and 25% for TSR for all participants except for officers for whom the awards are weighted 50% for ROI and 50% for TSR.
The ROI component of the PSP awards is valued at the closing stock price on the day prior to the grant date.
As the ROI component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest.
The TSR component of the PSP awards is valued using a Monte Carlo simulation as the TSR component contains a market condition.
The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free rate, expected dividends, and the expected volatility for the Company and its competitors.
The expected term is estimated based on the vesting period of the awards, the risk-free rate is based on the

<table><tr><td><i>In millions</i></td><td>2007</td><td>2008</td><td>2009</td><td>2010</td><td>2011</td><td>Thereafter</td></tr><tr><td>Total debt (a)</td><td>$692</td><td>$129</td><td>$1,143</td><td>$1,198</td><td>$381</td><td>$3,680</td></tr><tr><td>Lease obligations (b)</td><td>144</td><td>117</td><td>94</td><td>74</td><td>60</td><td>110</td></tr><tr><td>Purchase obligations (c,d)</td><td>2,329</td><td>462</td><td>362</td><td>352</td><td>323</td><td>1,794</td></tr><tr><td>Total</td><td>$3,165</td><td>$708</td><td>$1,599</td><td>$1,624</td><td>$764</td><td>$5,584</td></tr></table>
<table><tr><td><i>In millions, except per share amounts</i></td><td>2005</td><td>2004</td></tr><tr><td>Net Earnings (Loss)</td><td></td><td></td></tr><tr><td>As reported</td><td>$1,100</td><td>$-35</td></tr><tr><td>Pro forma</td><td>1,043</td><td>-73</td></tr><tr><td>Basic Earnings (Loss) Per Common Share</td><td></td><td></td></tr><tr><td>As reported</td><td>$2.26</td><td>$-0.07</td></tr><tr><td>Pro forma</td><td>2.15</td><td>-0.15</td></tr><tr><td>Diluted Earnings (Loss) Per Common Share</td><td></td><td></td></tr><tr><td>As reported</td><td>$2.21</td><td>$-0.07</td></tr><tr><td>Pro forma</td><td>2.10</td><td>-0.15</td></tr></table>
<table><tr><td></td><td colspan="2">Hardboard</td><td colspan="2">Omniwood</td><td colspan="2">Woodruf</td></tr><tr><td><i>In thousands</i></td><td>Single Family</td><td>Multi- Family</td><td>Single Family</td><td>Multi- Family</td><td>Single Family</td><td>Multi- Family</td></tr><tr><td> December 31, 2006</td><td>$2.2</td><td>$3.4</td><td>$4.6</td><td>$3.0</td><td>$4.4</td><td>$3.7</td></tr><tr><td>December 31, 2005</td><td>2.5</td><td>2.2</td><td>4.6</td><td>6.1</td><td>4.3</td><td>0.5</td></tr><tr><td>December 31, 2004</td><td>2.3</td><td>3.1</td><td>4.3</td><td>4.2</td><td>4.2</td><td>4.0</td></tr></table>
<table><tr><td></td><td>Options (a,b)</td><td>WeightedAverageExercisePrice</td><td>WeightedAverageRemainingLife(years)</td><td>AggregateIntrinsicValue(thousands)</td></tr><tr><td>Outstanding at December 31, 2010</td><td>18,245,253</td><td>$37.73</td><td>2.30</td><td>$—</td></tr><tr><td>Exercised</td><td>-1,850</td><td>32.54</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-21,070</td><td>35.21</td><td></td><td></td></tr><tr><td>Expired</td><td>-2,665,547</td><td>35.45</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2011</td><td>15,556,786</td><td>38.13</td><td>1.55</td><td>—</td></tr><tr><td>Granted</td><td>2,513</td><td>35.94</td><td></td><td></td></tr><tr><td>Exercised</td><td>-3,200,642</td><td>33.62</td><td></td><td></td></tr><tr><td>Expired</td><td>-3,222,597</td><td>40.71</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2012</td><td>9,136,060</td><td>38.79</td><td>1.15</td><td>1,077</td></tr><tr><td>Granted</td><td>4,744</td><td>48.11</td><td></td><td></td></tr><tr><td>Exercised</td><td>-7,317,825</td><td>38.57</td><td></td><td></td></tr><tr><td>Expired</td><td>-70,190</td><td>37.15</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2013</td><td>1,752,789</td><td>$39.80</td><td>0.67</td><td>$16,175</td></tr></table>

Question: Which year is Outstanding at December 31, 2011 the highest?
Answer: 2010