Item 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) 39 Year Ended June 30, 2012 Compared to Year Ended June 30, 2011 As an agricultural commodity-based business, the Company is subject to a variety of market factors which affect the Company’s operating results.
From a demand perspective, global protein meal consumption has continued to grow although at a slower rate.
Excess industry crushing production capacity has pressured oilseeds margins, and the Company has adjusted production rates regionally to balance supply with current market demand.
Biodiesel markets supported global demand for refined and crude vegetable oils.
In the U. S. , high biodiesel inventories associated with the December 31, 2011, expiration of blender’s incentives dampened margins in the second half of the fiscal year.
U. S.  corn sweetener exports continue to support sales volumes and margins.
Ethanol sales volumes were supported by favorable gasoline blending economics in the U. S.  However, excess industry production of ethanol, together with recently reduced U. S.  ethanol export demand, has negatively impacted ethanol margins.
From a supply perspective, crop supplies in certain key growing regions at the beginning of fiscal 2012, including South America and the Black Sea region, were adequate, but a smaller-than-normal harvest in North America in the fall of 2011 resulted in low U. S.  carryover stocks for corn and soybeans.
Because of the smaller than expected South American harvest, global supplies of corn and soybeans were more dependent on the North American harvest.
While plantings of corn increased in the U. S.  during fiscal 2012, the drought conditions late in the fiscal year decreased expectations for the size of the harvest.
These factors, combined with concerns about the European debt situation and ongoing geopolitical uncertainties, contributed to volatile commodity market price movements during fiscal 2012.
Net earnings attributable to controlling interests decreased $0.8 billion to $1.2 billion.
Segment operating profit declined $1.6 billion to $2.5 billion amid more challenging conditions generally affecting all reportable segments.
Segment operating profit in fiscal 2012 included $349 million of asset impairment charges and exit costs comprised of $335 million to exit the Company’s Clinton, IA, bioplastics plant and $14 million to shut down its Walhalla, ND, ethanol dry mill.
Earnings before income taxes included a credit of $10 million from the effect on LIFO inventory valuation reserves, including the liquidation of LIFO inventory layers, partially offset by increasing agricultural commodity prices, compared to charges of $368 million in the prior year.
Fiscal 2012 unallocated corporate expenses included $71 million of charges related to the Company’s global workforce reduction program.
Income taxes decreased $0.5 billion due to lower earnings before income taxes and a lower effective income tax rate.
The Company’s effective income tax rate declined to 29.6% compared to 33.1% in the prior year primarily due to income tax benefits associated with foreign currency re-measurement of non-monetary assets partially offset by a geographic mix of earnings that shifted more to foreign jurisdictions.
Analysis of Statements of Earnings Processed volumes by product for the years ended June 30, 2012 and 2011 are as follows (in metric tons):
## Table 0 ##
The Company continued to operate its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to current and seasonal local supply and demand conditions.
incurred in renewing cable franchises are deferred and amortized over 10 years.
ther Noncurrent Assets Other noncurrent assets primarily indude deferred financing costs, govemmental securities, investments in equity securities and goodwill.
Costs related to borrowings are deferred and amortized to interest expense ower the terms of the related borrowings.
Investments in equity securities are accounted for at cost, under the equity method of accounting or in accordance with SFAS No.115, Acounting.
for Cetain Iruestments ir Debt and Equily Secunities.
Charter recognizes loses for any decline in value considered to be other than temporary.
Certain market- able equity securities are classified as available-for-sale and reported at market value with unrealized gains and losses recorded as accumulated other comprehensive income or loss.
The following summarizes investment information as of December 31, 2006 and 2005 and for the years ended December 31, 2006, 2005 and 2004:
## Table 1 ##
The gain on equity investments, under the cost method for the year ended December 31, 2006 primarily represents gains realized on the sale of two investments.
Such amounts are included in other income, net in the statements of operations.
The gain on equity investments, under the equity method for the year ended December 31, 2005 primarily represents a gain realized on an exchange of the Company's interest in an equity investee for an investment in a larger enterprise.
Such amounts are induded in other income, net in the statements of operations.
As required by the indentures to the Company's 5.875% convertible senior notes issued in November 2004, the Company purchased US.
govemment securities valued at approximately S144 million with maturities corresponding to the interest payment dates for the convertible senior notes.
These securities were pledged and are held in escrow to provide payment in full for the first six interest payments of the convertible senior notes (see Note 9), four of which were funded in 2006 and 2005.
These securities are accounted for as held-to- maturity securities.
At December 31, 2006 and 2005, the carying value of the securities was approximately S50 million and S98 million, respectively, while the fair value of the securities was approximately S49 million and S97 million, respectively.
At December 31, 2006 and 2005, approximately S50 million and S50 million was recorded in prepaid and other assets and approximately $0 and S48 million was recorded in other assets on the Company's consolidated balance sheets.
Valuation of Property, Plant and Equipment The Company evaluates the recoverability of long-lived assets to be held and used for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Such events or changes in circumstances could indude such factors as impairment of the Company's indefinite life franchise under SFAS No.142, changes in technological advancs, fluctuations in the fair value of such assets, adverse changes in relationships with local franchise authorities, adverse changes in market conditions or a deteriora- tion of operating results.
If a review indicates that the carrying value of such asset is not recover able from estimated undis- counted cash flows, the carrying value of such asset is reduced to its estimated fair value.
While the Company believes that its estimates of future cash flows are reasonable, diferent assump- tions regarding such cash flows could materially affect its evaluations of asset recoverability.
No impairments of long-lived assets to be held and used were recorded in 2006, 2005, and 2004; however, approximately S159 million and $39 million of impairment on assets held for sale was recorded for the years ended December 31, 2006 and 2005, respectively (see Note 4).
Derivative Financial Instruments The Company accounts for derivative financial instruments in accordance with SFAS No.133, Accounting for Deriatisre hustrumenis and Hedging Activities, as amended.
For those instruments which qualify as hedging activities, related gains or losses are recorded in accumulated other comprehensive income.
For all other derivative instruments, the related gains or losses are recorded in the income statement.
The Company uses interest rate risk management derivative instruments, such as interest rate swap agreements, interest rate cap agreements and interest rate collar agreements (ollctively referred to herein as interest rate agreements) as required under the terms of the credit facilities of the Company's subsidiaries.
The Company's policy is to manage interest costs using a mix of fixed and variable rate debt.
Using interest rate swap agreements, the Company agrees to exchange, at specified intervals, the differ- ence between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount.
Interest
Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) The table below sets forth the financial covenants in effect as of December 31, 2015.
## Table 2 ##
1 The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense.
The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA for the four quarters then ended.
As of December 31, 2015, we were in compliance with all of our covenants in the Credit Agreement.
If we were unable to comply with our covenants in the future, we would seek an amendment or waiver from our lenders, but there is no assurance that our lenders would grant an amendment or waiver.
If we were unable to obtain the necessary amendment or waiver, the credit facility could be terminated and our lenders could accelerate payments of any outstanding principal.
In addition, under those circumstances we could be required to deposit funds with one of our lenders in an amount equal to any outstanding letters of credit under the credit facility.
We also have uncommitted credit facilities with various banks that permit borrowings at variable interest rates.
As of December 31, 2015, there were borrowings under some of the uncommitted facilities to manage working capital needs.
We have guaranteed the repayment of some of these borrowings made by certain subsidiaries.
If we lose access to these credit lines, we would have to provide funding directly to some of our international operations.
The weighted-average interest rate on outstanding balances under the uncommitted credit facilities as of December 31, 2015 and 2014 was approximately 3% and 5%, respectively.
Cash Pooling We aggregate our domestic cash position on a daily basis.
Outside the United States, we use cash pooling arrangements with banks to help manage our liquidity requirements.
In these pooling arrangements, several IPG agencies agree with a single bank that the cash balances of any of the agencies with the bank will be subject to a full right of set-off against amounts the other agencies owe the bank, and the bank provides for overdrafts as long as the net balance for all the agencies does not exceed an agreed-upon level.
Typically, each agency pays interest on outstanding overdrafts and receives interest on cash balances.
Our Consolidated Balance Sheets reflect cash, net of bank overdrafts, under all of our pooling arrangements, and as of December 31, 2015 and 2014 the amounts netted were $1,608.3 and $1,590.7, respectively.
DEBT CREDIT RATINGS Our long-term debt credit ratings as of February 16, 2016 are listed below.
## Table 3 ##
We are rated investment-grade by Moody’s Investor Services (“Moody’s”), Standard and Poor’s and Fitch Ratings.
The most recent update to our credit ratings occurred in April 2015, when Standard & Poor’s changed our long-term credit rating from BB+ to BBB-.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning credit rating agency.
The rating of each credit rating agency should be evaluated independently of any other rating.
Credit ratings could have an impact on liquidity, either adverse or favorable, including, among other things, because they could affect funding costs in the capital markets or otherwise.
For example, our Credit Agreement fees and borrowing rates are based on a credit ratings grid.
Noble Energy, Inc.
Supplemental Oil and Gas Information (Unaudited) 127 Proved Oil Reserves (Unaudited) The following reserves schedule was developed by our qualified petroleum engineers and sets forth the changes in estimated quantities of proved crude oil reserves:
## Table 4 ##
(1) Other International includes the North Sea and China.
(2) The 2009 negative revisions within the US are primarily due to performance revisions, the majority of which related to Main Pass (10 MMBbl) and reclassifications of PUDs to probable reserves as a result of the SEC’s new five year development rule (5 MMBbl), partially offset by higher year-end prices (10 MMBbl).
The 2010 US revisions include the impacts of higher prices and additional NGLs recorded in Wattenberg, partially offset by the reclassification of 16 MMBbls of PUD reserves to probable reserves, primarily in Wattenberg, as a result of the SEC's five year development rule.
The 2010 revisions to other international reserves are related to performance revisions in China and the North Sea.
The 2011 US revisions were primarily associated with reclassification of vertical PUDs in Wattenberg which are no longer expected to be developed in five years due to shifting emphasis from vertical to horizontal development, partially offset by positive revisions in other onshore US fields.
International revisions are associated with performance revisions in China and the North Sea.
(3) The 2009 increase in proved reserves includes 20 MMBbl related to the ongoing development of Wattenberg, 11 MMBbl in the deepwater Gulf of Mexico for the Santa Cruz, Isabela and Swordfish fields, and 26 MMBbl in Equatorial Guinea for the Aseng field.
The 2010 increase in US proved reserves relates to continuing development of onshore assets, primarily in the DJ Basin.
The 2010 increase in Equatorial Guinea reserves includes 26 MMBbl for the Alen field.
The 2011 increase is from development of onshore assets, primarily in the DJ Basin.
(4) The 2010 increase relates to the DJ Basin asset acquisition.
See Note 3.
Acquisitions and Divestitures.
(5) We sold non-core, onshore US assets in the Mid-Continent and Illinois Basin in 2010.
See Note 3.
Acquisitions and Divestitures.
(6) Equatorial Guinea production includes sales from the Alba field to the Alba LPG plant of 3 MMBbl in each of 2011, 2010, and 2009.

<table><tr><td>(In thousands)</td><td>2012</td><td>2011</td><td>Change</td></tr><tr><td>Oilseeds</td><td>31,161</td><td>29,630</td><td>1,531</td></tr><tr><td>Corn</td><td>24,618</td><td>23,412</td><td>1,206</td></tr><tr><td>Milling and cocoa</td><td>7,156</td><td>7,179</td><td>-23</td></tr><tr><td>Total</td><td>62,935</td><td>60,221</td><td>2,714</td></tr></table>
<table><tr><td></td><td>Carrying Value at December 31,</td><td></td><td>Gain (Loss) for the Years Ended December 31,</td><td colspan="2"></td></tr><tr><td></td><td>2006</td><td>2005</td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Equity investments, under the cost method</td><td>$34</td><td>$61</td><td>$12</td><td>$--</td><td>$-3</td></tr><tr><td>Equity investments, under the equity method</td><td>11</td><td>13</td><td>4</td><td>22</td><td>7</td></tr><tr><td></td><td>$45</td><td>$74</td><td>$16</td><td>$22</td><td>$4</td></tr></table>
<table><tr><td></td><td>Four Quarters Ended</td><td></td><td>Four Quarters Ended</td></tr><tr><td>Financial Covenants</td><td>December 31, 2015</td><td>EBITDA Reconciliation</td><td>December 31, 2015</td></tr><tr><td>Interest coverage ratio (not less than)<sup>1</sup></td><td>5.00x</td><td>Operating income</td><td>$871.9</td></tr><tr><td>Actual interest coverage ratio</td><td>19.06x</td><td>Add:</td><td></td></tr><tr><td>Leverage ratio (not greater than)<sup>1</sup></td><td>3.50x</td><td>Depreciation and amortization</td><td>227.3</td></tr><tr><td>Actual leverage ratio</td><td>1.60x</td><td>Other non-cash amounts</td><td>0.5</td></tr><tr><td></td><td></td><td>EBITDA<sup>1</sup></td><td>$1,099.7</td></tr></table>
<table><tr><td></td><td>Moody’s InvestorService</td><td>Standard andPoor’s</td><td>Fitch Ratings</td></tr><tr><td>Rating</td><td>Baa3</td><td>BBB-</td><td>BBB</td></tr><tr><td>Outlook</td><td>Stable</td><td>Stable</td><td>Stable</td></tr></table>
<table><tr><td></td><td colspan="4">Crude Oil, Condensate and NGLs (MMBbls)</td></tr><tr><td></td><td>United States</td><td>Equatorial Guinea</td><td>Other Int'l -1</td><td>Total</td></tr><tr><td>Proved Reserves as of:</td><td></td><td></td><td></td><td></td></tr><tr><td>December 31, 2008</td><td>198</td><td>75</td><td>38</td><td>311</td></tr><tr><td>Revisions of Previous Estimates-2</td><td>-5</td><td>-1</td><td>-</td><td>-6</td></tr><tr><td>Extensions, Discoveries and Other Additions-3</td><td>32</td><td>26</td><td>1</td><td>59</td></tr><tr><td>Purchase of Minerals in Place-4</td><td>1</td><td>-</td><td>-</td><td>1</td></tr><tr><td>Sale of Minerals in Place-5</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Production-6</td><td>-17</td><td>-8</td><td>-4</td><td>-29</td></tr><tr><td>December 31, 2009</td><td>209</td><td>92</td><td>35</td><td>336</td></tr><tr><td>Revisions of Previous Estimates-2</td><td>15</td><td>1</td><td>-5</td><td>11</td></tr><tr><td>Extensions, Discoveries and Other Additions-3</td><td>25</td><td>26</td><td>3</td><td>54</td></tr><tr><td>Purchase of Minerals in Place-4</td><td>23</td><td>-</td><td>-</td><td>23</td></tr><tr><td>Sale of Minerals in Place-5</td><td>-28</td><td>-</td><td>-</td><td>-28</td></tr><tr><td>Production-6</td><td>-19</td><td>-7</td><td>-5</td><td>-31</td></tr><tr><td>December 31, 2010</td><td>225</td><td>112</td><td>28</td><td>365</td></tr><tr><td>Revisions of Previous Estimates-2</td><td>-5</td><td>2</td><td>-6</td><td>-9</td></tr><tr><td>Extensions, Discoveries and Other Additions-3</td><td>43</td><td>-</td><td>2</td><td>45</td></tr><tr><td>Purchase of Minerals in Place-4</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Sale of Minerals in Place-5</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Production-6</td><td>-19</td><td>-8</td><td>-5</td><td>-32</td></tr><tr><td>December 31, 2011</td><td>244</td><td>106</td><td>19</td><td>369</td></tr><tr><td>Proved Developed Reserves as of:</td><td></td><td></td><td></td><td></td></tr><tr><td>December 31, 2008</td><td>121</td><td>57</td><td>21</td><td>199</td></tr><tr><td>December 31, 2009</td><td>122</td><td>49</td><td>23</td><td>194</td></tr><tr><td>December 31, 2010</td><td>119</td><td>43</td><td>21</td><td>183</td></tr><tr><td>December 31, 2011</td><td>134</td><td>60</td><td>13</td><td>207</td></tr><tr><td>Proved Undeveloped Reserves as of:</td><td></td><td></td><td></td><td></td></tr><tr><td>December 31, 2008</td><td>77</td><td>18</td><td>17</td><td>112</td></tr><tr><td>December 31, 2009</td><td>87</td><td>43</td><td>12</td><td>142</td></tr><tr><td>December 31, 2010</td><td>106</td><td>69</td><td>7</td><td>182</td></tr><tr><td>December 31, 2011</td><td>110</td><td>46</td><td>6</td><td>162</td></tr></table>

Question: Which year is Proved Developed Reserves as of United State the least?
Answer: 2010