Note 18.
Contingencies: Tobacco-Related LitigationLegal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions.
Our indemnitees include distributors, licensees, and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them.
Pursuant to the terms of the Distribution Agreement between Altria Group, Inc.  ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc.  ("PM USA"), a U. S.  tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI.
It is possible that there could be adverse developments in pending cases against us and our subsidiaries.
An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation.
Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada, Israel and Nigeria, range into the billions of U. S.  dollars.
The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome.
Much of the tobacco-related litigation is in its early stages, and litigation is subject to uncertainty.
However, as discussed below, we have to date been largely successful in defending tobacco-related litigation.
We and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated.
At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any.
Legal defense costs are expensed as incurred.
It is possible that our consolidated results of operations, cash flows or financial position could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation.
Nevertheless, although litigation is subject to uncertainty, we and each of our subsidiaries named as a defendant believe, and each has been so advised by counsel handling the respective cases, that we have valid defenses to the litigation pending against us, as well as valid bases for appeal of adverse verdicts.
All such cases are, and will continue to be, vigorously defended.
However, we and our subsidiaries may enter into settlement discussions in particular cases if we believe it is in our best interests to do so.
To date, no tobacco-related case has been finally resolved in favor of a plaintiff against us, our subsidiaries or indemnitees.
The table below lists the number of tobacco-related cases pertaining to combustible products pending against us and/or our subsidiaries or indemnitees as of February 4, 2019, February 9, 2018 and December 31, 2016:
## Table 0 ##
Since 1995, when the first tobacco-related litigation was filed against a PMI entity, 491 Smoking and Health, Label-Related, Health Care Cost Recovery, and Public Civil Actions in which we and/or one of our subsidiaries and/or indemnitees were a defendant have been terminated in our favor.
Thirteen cases have had decisions in favor of plaintiffs.
Nine of these cases have subsequently reached final resolution in our favor and four remain on appeal.
Performance Graph The graph below compares the cumulative total shareholder return on PMI's common stock with the cumulative total return for the same period of PMI's Peer Group and the S&P 500 Index.
The graph assumes the investment of $100 as of December 31, 2013, in PMI common stock (at prices quoted on the New York Stock Exchange) and each of the indices as of the market close and reinvestment of dividends on a quarterly basis.
## Table 1 ##
(1) The PMI Peer Group presented in this graph is the same as that used in the prior year.
The PMI Peer Group was established based on a review of four characteristics: global presence; a focus on consumer products; and net revenues and a market capitalization of a similar size to those of PMI.
The review also considered the primary international tobacco companies.
As a result of this review, the following companies constitute the PMI Peer Group: Altria Group, Inc. , Anheuser-Busch InBev SA/NV, British American Tobacco p. l. c. , The Coca-Cola Company, Colgate-Palmolive Co. , Diageo plc, Heineken N. V. , Imperial Brands PLC, Japan Tobacco Inc. , Johnson & Johnson, Kimberly-Clark Corporation, The Kraft-Heinz Company, McDonald's Corp. , Mondelz International, Inc. , Nestlé S. A. , PepsiCo, Inc. , The Procter & Gamble Company, Roche Holding AG, and Unilever NV and PLC.
Note: Figures are rounded to the nearest $0.10.
Aggregate Contractual Obligations – The following table summarizes our contractual obligations at December 31, 2018:
## Table 2 ##
(1)Amounts represent the expected cash payments at the face value of our long-term debt and capital lease obligations.
For further details, see Item 8, Note 7.
Indebtedness to our consolidated financial statements.
(2) Amounts represent the expected cash payments of our interest expense on our long-term debt, including the current portion of long-term debt.
Interest on our fixedrate debt is presented using the stated interest rate.
Interest on our variable debt is estimated using the rate in effect at December 31, 2018.
Amounts exclude the amortization of debt discounts, the amortization of loan fees and fees for lines of credit that would be included in interest expense in the consolidated statements of earnings.
(3) Amounts represent the minimum rental commitments under non-cancelable operating leases.
(4) Purchase obligations for inventory and production costs (such as raw materials, indirect materials and supplies, packaging, co-manufacturing arrangements, storage and distribution) are commitments for projected needs to be utilized in the normal course of business.
Other purchase obligations include commitments for marketing, advertising, capital expenditures, information technology and professional services.
Other purchase obligations also include the expected future contributions to the Foundation for a Smoke-Free World.
For further details see Business Environment—Other Developments.
Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transaction.
Amounts represent the minimum commitments under non-cancelable contracts.
Any amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities are excluded from the table above.
(5) Other long-term liabilities consist primarily of transition tax (as discussed in Item 8, Note 11.
Income Taxes to our consolidated financial statements), postretirement health care costs and accruals established for employment costs.
The following long-term liabilities included on the consolidated balance sheet are excluded from the table above: accrued pension and postemployment costs, tax contingencies, insurance accruals and other accruals.
We are unable to estimate the timing of payments (or contributions in the case of accrued pension costs) for these items.
Currently, we anticipate making pension contributions of approximately $119 million in 2019, based on current tax and benefit laws (as discussed in Item 8, Note 13.
Benefit Plans to our consolidated financial statements).
Equity and Dividends We discuss our stock awards as of December 31, 2018, in Item 8, Note 9.
Stock Plans to our consolidated financial statements.
During 2018, 2017 and 2016, we did not repurchase any shares under a share repurchase program, and we do not presently intend to repurchase shares of our common stock in 2019.
Dividends paid in 2018 were $6.9 billion.
During the second quarter of 2018, our Board of Directors approved a 6.5% increase in the quarterly dividend to $1.14 per common share.
As a result, the present annualized dividend rate is $4.56 per common share.
Market Risk Counterparty Risk - We predominantly work with financial institutions with strong short- and long-term credit ratings as assigned by Standard & Poor’s and Moody’s.
These banks are also part of a defined group of relationship banks.
Non-investment grade institutions are only used in certain emerging markets to the extent required by local business needs.
We have a conservative approach when it comes to choosing financial counterparties and financial instruments.
As such we do not invest or hold investments in any structured or equitylinked products.
The majority of our cash and cash equivalents is currently invested in demand deposits maturing within less than 30 days.
We continuously monitor and assess the credit worthiness of all our counterparties.
At December 31, 2018, PMI has recorded deferred tax assets for net operating loss carryforwards of $452 million, with varying dates of expiration, primarily after 2023, including $87 million with an unlimited carryforward period.
At December 31, 2018, PMI has recorded a valuation allowance of $257 million against deferred tax assets that do not meet the more-likely-than-not recognition threshold.
The increases in deferred tax assets for net operating loss carryforwards and the valuation allowance during 2018 are primarily due to law changes associated with the Tax Cuts and Jobs Act, as discussed above.
Note 12.
Segment Reporting: PMI’s subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other nicotine-containing products, including RRPs, in markets outside of the United States of America.
Reportable segments for PMI are organized by geographic region and managed by segment managers who are responsible for the operating and financial results of the regions inclusive of all product categories sold in the region.
Effective January 1, 2018, PMI began managing its business in six reportable segments.
PMI’s reportable segments are the European Union; Eastern Europe; Middle East & Africa; South & Southeast Asia; East Asia & Australia; and Latin America & Canada.
PMI records net revenues and operating income to its segments based upon the geographic area in which the customer resides.
PMI’s chief operating decision maker evaluates segment performance and allocates resources based on regional operating income, which includes results from all product categories sold in each region.
Effective January 1, 2018, PMI began using operating income to evaluate business segment performance and allocate resources, replacing operating companies income used previously.
Interest expense, net, and provision for income taxes are centrally managed and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by management.
Information about total assets by segment is not disclosed because such information is not reported to or used by PMI’s chief operating decision maker.
Segment goodwill and other intangible assets, net, are disclosed in Note 3.
Goodwill and Other Intangible Assets, net.
The accounting policies of the segments are the same as those described in Note 2.
Summary of Significant Accounting Policies.
On January 1, 2018, PMI adopted Financial Accounting Standards Update ASU 2014-09, "Revenue from Contracts with Customers. "
PMI adopted this standard retrospectively to each prior period presented.
For further details on this standard and its impact on PMI, see Note 21.
New Accounting Standards.
The amounts presented for the reportable segments reflect this adoption.
PMI disaggregates its net revenue from contracts with customers by both geographic location and product category for each of PMI's six reportable segments, as PMI believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.
Net revenues by segment were as follows:
## Table 3 ##
Total net revenues attributable to customers located in Japan, PMI's largest market in terms of net revenues, were $3.8 billion, $4.7 billion and $2.8 billion in 2018, 2017 and 2016, respectively.
Total net revenues attributable to customers located in Indonesia were $3.1 billion, $3.2 billion and $3.2 billion in 2018, 2017 and 2016, respectively.
PMI had one customer in the East Asia & Australia segment that accounted for 13%, 16% and 11% of PMI’s consolidated net revenues, and one customer in the European Union segment that accounted for 10%, 10% and 11% of PMI’s consolidated net revenues in 2018, 2017 and 2016, respectively.

<table><tr><td>Type of Case</td><td>Number of Cases Pending as of February 4, 2019</td><td>Number of Cases Pending as of February 9, 2018</td><td>Number of Cases Pending as of December 31, 2016</td></tr><tr><td>Individual Smoking and Health Cases</td><td>55</td><td>57</td><td>64</td></tr><tr><td>Smoking and Health Class Actions</td><td>10</td><td>11</td><td>11</td></tr><tr><td>Health Care Cost Recovery Actions</td><td>16</td><td>16</td><td>16</td></tr><tr><td>Label-Related Class Actions</td><td>1</td><td>1</td><td>—</td></tr><tr><td>Individual Label-Related Cases</td><td>7</td><td>1</td><td>3</td></tr><tr><td>Public Civil Actions</td><td>2</td><td>2</td><td>2</td></tr></table>
<table><tr><td>Date</td><td>PMI</td><td>PMI Peer Group<sup>-1</sup></td><td>S&P 500 Index</td></tr><tr><td>December 31, 2013</td><td>$100.00</td><td>$100.00</td><td>$100.00</td></tr><tr><td>December 31, 2014</td><td>$97.90</td><td>$107.80</td><td>$113.70</td></tr><tr><td>December 31, 2015</td><td>$111.00</td><td>$116.80</td><td>$115.30</td></tr><tr><td>December 31, 2016</td><td>$120.50</td><td>$118.40</td><td>$129.00</td></tr><tr><td>December 31, 2017</td><td>$144.50</td><td>$140.50</td><td>$157.20</td></tr><tr><td>December 31, 2018</td><td>$96.50</td><td>$127.70</td><td>$150.30</td></tr></table>
<table><tr><td></td><td></td><td colspan="4">Payments Due</td></tr><tr><td>(in millions)</td><td>Total</td><td>2019</td><td>2020-2021</td><td>2022-2023</td><td>2024 andThereafter</td></tr><tr><td>Long-term debt<sup>-1</sup></td><td>$31,268</td><td>$4,054</td><td>$7,098</td><td>$4,358</td><td>$15,758</td></tr><tr><td>Interest on borrowings<sup>-2</sup></td><td>10,360</td><td>902</td><td>1,542</td><td>1,258</td><td>6,658</td></tr><tr><td>Operating leases<sup>-3</sup></td><td>772</td><td>147</td><td>176</td><td>95</td><td>354</td></tr><tr><td>Purchase obligations<sup>-4</sup>:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Inventory and production costs</td><td>4,217</td><td>2,492</td><td>1,165</td><td>406</td><td>154</td></tr><tr><td>Other</td><td>2,629</td><td>1,070</td><td>842</td><td>227</td><td>490</td></tr><tr><td></td><td>6,846</td><td>3,562</td><td>2,007</td><td>633</td><td>644</td></tr><tr><td>Other long-term liabilities<sup>-5</sup></td><td>1,916</td><td>78</td><td>346</td><td>448</td><td>1,044</td></tr><tr><td></td><td>$51,162</td><td>$8,743</td><td>$11,169</td><td>$6,792</td><td>$24,458</td></tr></table>
<table><tr><td></td><td colspan="3">For the Years Ended December 31,</td></tr><tr><td>(in millions)</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Net revenues:</td><td></td><td></td><td></td></tr><tr><td>European Union</td><td>$9,298</td><td>$8,318</td><td>$8,162</td></tr><tr><td>Eastern Europe</td><td>2,921</td><td>2,711</td><td>2,484</td></tr><tr><td>Middle East & Africa</td><td>4,114</td><td>3,988</td><td>4,516</td></tr><tr><td>South & Southeast Asia</td><td>4,656</td><td>4,417</td><td>4,396</td></tr><tr><td>East Asia & Australia</td><td>5,580</td><td>6,373</td><td>4,285</td></tr><tr><td>Latin America & Canada</td><td>3,056</td><td>2,941</td><td>2,842</td></tr><tr><td>Net revenues</td><td>$29,625</td><td>$28,748</td><td>$26,685</td></tr></table>

Question: what is the roi of an investment in pmi from 2013 to 2014?
Answer: -0.021