CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT’S DISCUSSION AND ANALYSIS 93 Capital As a bank holding company and a financial holding company, we are subject to regulation and supervision by the FRBG.
Our primary subsidiaries are our two insured depository institutions, CBNA, a national banking association whose primary federal regulator is the OCC, and CBPA, a Pennsylvania-charted savings bank regulated by the Department of Banking of the Commonwealth of Pennsylvania and supervised by the FDIC as its primary federal regulator.
The U. S.  adoption of the Basel III Standardized approach by all primary regulators became effective for the Parent Company, CBNA and CBPA on January 1, 2015 (subject to a phase-in period for certain provisions).
Among other changes, these regulations introduced a new capital conservation buffer (“CCB”) on top of the following three minimum risk-based capital ratios: CET1 capital of 4.5%, tier 1 capital of 6.0% and total capital of 8.0%.
The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will increase by 0.625% on each subsequent January 1, until the buffer reaches its fully phased-in level of 2.5% on January 1, 2019.
Banking institutions for which any risk-based capital ratio falls below its effective minimum (required minimum plus the applicable capital conservation buffer) will be subject to constraints on capital distributions, including dividends, repurchases and certain executive compensation, based on the amount of the shortfall.
The table below presents our actual regulatory capital ratios under these Basel III Transitional rules as of December 31, 2016 and 2015, as well as pro-forma Basel III ratios after full phase-in of all requirements by January 1, 2019.
## Table 0 ##
(1)Fully phased-in regulatory capital ratios are Key Performance Metrics.
For more information on Key Performance Metrics, see “—Principal Components of Operations and Key Performance Metrics Used By Management.
” (2) “Common equity tier 1 capital ratio” is CET1 capital divided by total risk-weighted assets as defined under Basel III Standardized approach.
(3) “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total riskweighted assets as defined under Basel III Standardized approach.
(4) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach.
(5) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach.
(6) Required “Minimum Capital ratio” for 2016 are: Common equity tier 1 capital of 4.5%; Tier 1 capital of 6.0%; Total capital of 8.0%; and Tier 1 leverage of 4.0%.
(7) “Minimum Capital ratio” for 2016 includes capital conservation buffer for Transitional Basel III of 0.625%; N/A to Tier 1 leverage.
(8) “Minimum Capital ratio” for 2016 includes capital conservation buffer for Pro Forma Basel III of 2.5%; N/A to Tier 1 leverage.
(9) Presented for informational purposes.
Prompt corrective action provisions apply only to insured depository institutions-in our case CBNA and CBPA.
At December 31, 2016, our CET1 capital, tier 1 capital and total capital ratios were 11.2%, 11.4% and 14.0%, respectively compared with 11.7%, 12.0% and 15.3% as of December 31, 2015.
The decrease in the respective ratios was largely driven by our 2016 Capital Plan actions which included common dividends of $241 million, preferred dividends of $14 million and the repurchase of $430 million of common shares and $625 million of subordinated debt.
At December 31, 2016, our CET1 capital, tier 1 capital and total capital ratios were 4.2%, 2.9% and 3.5%, respectively, above their regulatory minimums plus the fully phased-in capital conservation buffer.
Based on both current and fully phased-in Basel III requirements, all ratios remained well above Basel III minima.
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements The table below presents a summary of level 3 financial assets.
## Table 1 ##
Level 3 financial assets as of December 2018 increased compared with December 2017, primarily reflecting an increase in level 3 cash instruments.
See Notes 6 through 8 for further information about level 3 financial assets (including information about unrealized gains and losses related to level 3 financial assets and financial liabilities, and transfers in and out of level 3).
Note 6.
Cash Instruments Cash instruments include U. S.  government and agency obligations, non-U.
S.  government and agency obligations, mortgage-backed loans and securities, corporate debt instruments, equity securities, investments in funds at NAV, and other non-derivative financial instruments owned and financial instruments sold, but not yet purchased.
See below for the types of cash instruments included in each level of the fair value hierarchy and the valuation techniques and significant inputs used to determine their fair values.
See Note 5 for an overview of the firm’s fair value measurement policies.
Level 1 Cash Instruments Level 1 cash instruments include certain money market instruments, U. S.  government obligations, most non-U.
S.  government obligations, certain government agency obligations, certain corporate debt instruments and actively traded listed equities.
These instruments are valued using quoted prices for identical unrestricted instruments in active markets.
The firm defines active markets for equity instruments based on the average daily trading volume both in absolute terms and relative to the market capitalization for the instrument.
The firm defines active markets for debt instruments based on both the average daily trading volume and the number of days with trading activity.
Level 2 Cash Instruments Level 2 cash instruments include most money market instruments, most government agency obligations, certain non-U.
S.  government obligations, most mortgage-backed loans and securities, most corporate debt instruments, most state and municipal obligations, most other debt obligations, restricted or less liquid listed equities, commodities and certain lending commitments.
Valuations of level 2 cash instruments can be verified to quoted prices, recent trading activity for identical or similar instruments, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency.
Consideration is given to the nature of the quotations (e. g. , indicative or firm) and the relationship of recent market activity to the prices provided from alternative pricing sources.
Valuation adjustments are typically made to level 2 cash instruments (i) if the cash instrument is subject to transfer restrictions and/or (ii) for other premiums and liquidity discounts that a market participant would require to arrive at fair value.
Valuation adjustments are generally based on market evidence.
Level 3 Cash Instruments Level 3 cash instruments have one or more significant valuation inputs that are not observable.
Absent evidence to the contrary, level 3 cash instruments are initially valued at transaction price, which is considered to be the best initial estimate of fair value.
Subsequently, the firm uses other methodologies to determine fair value, which vary based on the type of instrument.
Valuation inputs and assumptions are changed when corroborated by substantive observable evidence, including values realized on sales.
Valuation Techniques and Significant Inputs of Level 3 Cash Instruments Valuation techniques of level 3 cash instruments vary by instrument, but are generally based on discounted cash flow techniques.
The valuation techniques and the nature of significant inputs used to determine the fair values of each type of level 3 cash instrument are described below: Loans and Securities Backed by Commercial Real Estate.
Loans and securities backed by commercial real estate are directly or indirectly collateralized by a single commercial real estate property or a portfolio of properties, and may include tranches of varying levels of subordination.
Significant inputs are generally determined based on relative value analyses and include: ‰ Market yields implied by transactions of similar or related assets and/or current levels and changes in market indices such as the CMBX (an index that tracks the performance of commercial mortgage bonds);
10.
Share-based Compensation and Employee Benefits Share-based Compensation Class P Shares Kinder Morgan, Inc.
Amended and Restated Stock Compensation Plan for Non-Employee Directors We have a Kinder Morgan, Inc.
Amended and Restated Stock Compensation Plan for Non-Employee Directors, in which our eligible non-employee directors participate.
The plan recognizes that the compensation paid to each eligible non-employee director is fixed by our board, generally annually, and that the compensation is payable in cash.
Pursuant to the plan, in lieu of receiving some or all of the cash compensation, each eligible non-employee director may elect to receive shares of Class P common stock.
Each election will be generally at or around the first board meeting in January of each calendar year and will be effective for the entire calendar year.
An eligible director may make a new election each calendar year.
The total number of shares of Class P common stock authorized under the plan is 250,000.
During 2018, 2017 and 2016, we made restricted Class P common stock grants to our non-employee directors of 25,800, 17,740 and 31,880, respectively.
These grants were valued at time of issuance at $500,000, $400,000 and $400,000, respectively.
All of the restricted stock awards made to non-employee directors vest during a six-month period.
Kinder Morgan, Inc.  2015 Amended and Restated Stock Incentive Plan The Kinder Morgan, Inc.  2015 Amended and Restated Stock Incentive Plan is an equity awards plan available to eligible employees.
The total number of shares of Class P common stock authorized under the plan is 33,000,000.
The following table sets forth a summary of activity and related balances of our restricted stock awards excluding that issued to non-employee directors (in millions, except share and per share amounts):
## Table 2 ##
The intrinsic value of restricted stock awards vested during the years ended December 31, 2018, 2017 and 2016 was $42 million, $30 million and $25 million, respectively.
Restricted stock awards made to employees have vesting periods ranging from 1 year with variable vesting dates to 10 years.
Following is a summary of the future vesting of our outstanding restricted stock awards:
## Table 3 ##
The related compensation costs less estimated forfeitures is generally recognized ratably over the vesting period of the restricted stock awards.
Upon vesting, the grants will be paid in our Class P common shares.
sold a net $482 million in marketable securities and short-term investments, primarily due to the pension and postretirement medical benefit plan fundings in the third quarter.
During 2005, we sold a net $2.752 billion in marketable securities and short-term investments, largely to fund the acquisition of Overnite as well as to make fundings to our pension and postretirement medical benefit plans.
In 2005, we spent $1.488 billion on business acquisitions, primarily Overnite Corp. , Lynx Express Ltd.  in the United Kingdom, Messenger Service Stolica S. A.  in Poland, and the express operations of Sinotrans Air Transportation Development Co.  Ltd.  in China (See Note 7 to the consolidated financial statements).
We generated cash of $68, $95, and $318 million in 2006, 2005, and 2004 respectively, due to the sales and customer paydowns of finance receivables, primarily in our leasing, asset-based lending, and receivable factoring businesses.
In the second quarter of 2006, we terminated several energy derivatives and received $229 million in cash, which is reported in other investing activities in the statement of cash flows.
These derivatives were designated as hedges of forecasted cash outflows for purchases of fuel products.
As these derivatives maintained their effectiveness and qualified for hedge accounting, we anticipate that the gains associated with these hedges will be recognized in income over the original term of the hedges through 2007.
Capital expenditures represent a primary use of cash in investing activities, as follows (in millions):

<table><tr><td></td><td></td><td colspan="3">Transitional Basel III</td><td colspan="3">Pro Forma Basel III Assuming Full Phase-in</td></tr><tr><td>(dollars in millions)</td><td>Actual Amount</td><td>Actual Ratio</td><td>Required Minimum plus Required CCB for Non-Leverage Ratios<sup>-6(7)</sup></td><td>FDIA Required Well-Capitalized Minimum for Purposes of Prompt Corrective Action<sup>-9</sup></td><td>Actual Ratio<sup>-1</sup></td><td>Required Minimum plus Required CCB for Non-Leverage Ratios<sup>-6(8)</sup></td><td>FDIA Required Well-Capitalized Minimum for Purposes of Prompt Corrective Action<sup>-9</sup></td></tr><tr><td colspan="5">December 31, 2016</td><td></td><td></td><td></td></tr><tr><td>Common equity tier 1 capital<sup>-2</sup></td><td>$13,822</td><td>11.2%</td><td>5.1%</td><td>6.5%</td><td>11.1%</td><td>7.0%</td><td>6.5%</td></tr><tr><td>Tier 1 capital<sup>-3</sup></td><td>14,069</td><td>11.4</td><td>6.6</td><td>8.0</td><td>11.3</td><td>8.5</td><td>8.0</td></tr><tr><td>Total capital<sup>-4</sup></td><td>17,347</td><td>14.0</td><td>8.6</td><td>10.0</td><td>14.0</td><td>10.5</td><td>10.0</td></tr><tr><td>Tier 1 leverage<sup>-5</sup></td><td>14,069</td><td>9.9</td><td>4.0</td><td>5.0</td><td>9.9</td><td>4.0</td><td>5.0</td></tr><tr><td>Risk-weighted assets</td><td>123,857</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Quarterly adjusted average assets</td><td>141,677</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="5">December 31, 2015</td><td></td><td></td><td></td></tr><tr><td>Common equity tier 1 capital<sup>-2</sup></td><td>$13,389</td><td>11.7%</td><td>4.5%</td><td>6.5%</td><td>11.7%</td><td>7.0%</td><td>6.5%</td></tr><tr><td>Tier 1 capital<sup>-3</sup></td><td>13,636</td><td>12.0</td><td>6.0</td><td>8.0</td><td>11.9</td><td>8.5</td><td>8.0</td></tr><tr><td>Total capital<sup>-4</sup></td><td>17,505</td><td>15.3</td><td>8.0</td><td>10.0</td><td>15.3</td><td>10.5</td><td>10.0</td></tr><tr><td>Tier 1 leverage<sup>-5</sup></td><td>13,636</td><td>10.5</td><td>4.0</td><td>5.0</td><td>10.5</td><td>4.0</td><td>5.0</td></tr><tr><td>Risk-weighted assets</td><td>114,084</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Quarterly adjusted average assets</td><td>130,455</td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td>As of December</td></tr><tr><td><i>$ in millions</i></td><td>2018</td><td>2017</td></tr><tr><td>Cash instruments</td><td>$17,227</td><td>$15,395</td></tr><tr><td>Derivatives</td><td>4,948</td><td>3,802</td></tr><tr><td>Other financial assets</td><td>6</td><td>4</td></tr><tr><td>Total</td><td>$22,181</td><td>$19,201</td></tr></table>
<table><tr><td></td><td colspan="2">Year Ended December 31, 2018</td><td colspan="2">Year Ended December 31, 2017</td><td colspan="2">Year Ended December 31, 2016</td></tr><tr><td></td><td>Shares</td><td>Weighted AverageGrant DateFair Valueper Share</td><td>Shares</td><td>Weighted AverageGrant DateFair Valueper Share</td><td>Shares</td><td>Weighted AverageGrant DateFair Valueper Share</td></tr><tr><td>Outstanding at beginning of period</td><td>10,518,344</td><td>$28.21</td><td>9,038,137</td><td>$32.72</td><td>7,645,105</td><td>$37.91</td></tr><tr><td>Granted</td><td>5,389,476</td><td>17.73</td><td>3,221,691</td><td>19.52</td><td>2,816,599</td><td>21.36</td></tr><tr><td>Vested</td><td>-2,371,193</td><td>36.34</td><td>-1,501,939</td><td>36.67</td><td>-1,226,652</td><td>38.53</td></tr><tr><td>Forfeited</td><td>-382,022</td><td>23.26</td><td>-239,545</td><td>28.34</td><td>-196,915</td><td>35.74</td></tr><tr><td>Outstanding at end of period</td><td>13,154,605</td><td>22.59</td><td>10,518,344</td><td>28.21</td><td>9,038,137</td><td>32.72</td></tr></table>
<table><tr><td>Year</td><td>Vesting of Restricted Shares</td></tr><tr><td>2019</td><td>4,048,963</td></tr><tr><td>2020</td><td>3,537,544</td></tr><tr><td>2021</td><td>4,814,403</td></tr><tr><td>2022</td><td>152,104</td></tr><tr><td>2023</td><td>121,093</td></tr><tr><td>Thereafter</td><td>480,498</td></tr><tr><td>Total Outstanding</td><td>13,154,605</td></tr></table>

Question: Which year is Common equity tier 1 capital the highest?
Answer: 2016