THE AES CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016, 2015, AND 2014 173 The following table summarizes the Company's redeemable stock of subsidiaries balances as of the periods indicated (in millions):
## Table 0 ##
(1) Characteristics of quotas are similar to common stock.
Colon — During the year ended December 31, 2016, our partner in Colon increased their ownership from 25% to 49.9% and made capital contributions of $106 million.
Any subsequent adjustments to allocate earnings and dividends to our partner, or measure the investment at fair value, will be classified as temporary equity each reporting period as it is probable that the shares will become redeemable.
IPL — IPL had $60 million of cumulative preferred stock outstanding at December 31, 2016 and 2015, which represented five series of preferred stock.
The total annual dividend requirements were approximately $3 million at December 31, 2016 and 2015.
Certain series of the preferred stock were redeemable solely at the option of the issuer at prices between $100 and $118 per share.
Holders of the preferred stock are entitled to elect a majority of IPL's board of directors if IPL has not paid dividends to its preferred stockholders for four consecutive quarters.
Based on the preferred stockholders' ability to elect a majority of IPL's board of directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock is considered temporary equity.
DPL — DPL had $18 million of cumulative preferred stock outstanding as of December 31, 2015, which represented three series of preferred stock issued by DP&L, a wholly-owned subsidiary of DPL.
The DP&L preferred stock was redeemable at DP&L's option as determined by its board of directors at per-share redemption prices between $101 and $103 per share, plus cumulative preferred dividends.
In addition, DP&L's Amended Articles of Incorporation contained provisions that permitted preferred stockholders to elect members of the DP&L Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends.
Based on the preferred stockholders' ability to elect members of DP&L's board of directors in this circumstance, the redemption of the preferred shares was considered to be not solely within the control of the issuer and the preferred stock was considered temporary equity.
In September 2016, it became probable that the preferred shares would become redeemable.
As such, the Company recorded an adjustment of $5 million to retained earnings to adjust the preferred shares to their redemption value of $23 million.
In October 2016, DP&L redeemed all of its preferred shares.
Upon redemption, the preferred shares were no longer outstanding and all rights of the holders thereof as shareholders of DP&L ceased to exist.
IPALCO — In February 2015, CDPQ purchased 15% of AES US Investment, Inc. , a wholly-owned subsidiary that owns 100% of IPALCO, for $247 million, with an option to invest an additional $349 million in IPALCO through 2016 in exchange for a 17.65% equity stake.
In April 2015, CDPQ invested an additional $214 million in IPALCO, which resulted in CDPQ's combined direct and indirect interest in IPALCO of 24.90%.
As a result of these transactions, $84 million in taxes and transaction costs were recognized as a net decrease to equity.
The Company also recognized an increase to additional paid-in capital and a reduction to retained earnings of 377 million for the excess of the fair value of the shares over their book value.
No gain or loss was recognized in net income as the transaction was not considered to be a sale of in-substance real estate.
In March 2016, CDPQ exercised its remaining option by investing $134 million in IPALCO, which resulted in CDPQ's combined direct and indirect interest in IPALCO of 30%.
The Company also recognized an increase to additional paid-in capital and a reduction to retained earnings of $84 million for the excess of the fair value of the shares over their book value.
In June 2016, CDPQ contributed an additional $24 million to IPALCO, with no impact to the ownership structure of the investment.
Any subsequent adjustments to allocate earnings and dividends to CDPQ will be classified as NCI within permanent equity as it is not probable that the shares will become redeemable.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) ended May 31, 2006 and 2005.
No additional securities were outstanding that could potentially dilute basic earnings per share that were not included in the computation of diluted earnings per share for any period presented.
The following table sets forth the computation of basic and diluted earnings per share for the years ended May 31, 2007, 2006 and 2005:
## Table 1 ##
Share repurchase program—On April 5, 2007, our Board of Directors approved a share repurchase program that authorized the purchase of up to $100 million of Global Payments’ stock in the open market or as otherwise may be determined by us, subject to market conditions, business opportunities, and other factors.
This authorization has no expiration date and may be suspended or terminated at any time.
Repurchased shares will be retired but will be available for future issuance.
No amounts have been repurchased during the fiscal year ended May 31, 2007.
Stock awards and options—Effective June 1, 2006, we adopted Statement of Financial Accounting Standards No.123 (revised 2004): Share-based Payment (“FAS 123R”).
FAS 123R amended FAS 123, and its related interpretations.
We elected to adopt the modified prospective method described in FAS 123R which specifies that compensation expense for options granted prior to the effective date be recognized in the consolidated statements of income over the remaining vesting period of those options, and that compensation expense for options granted subsequent to the effective date be recognized in the consolidated statements of income over the vesting period of those options.
In addition, in accordance with our use of the modified prospective method, prior period amounts have not been restated.
Prior to our adoption of FAS 123R, we accounted for options under the recognition and measurement principles of Accounting Principles Board Opinion No.25: Accounting for Stock Issued to Employees (“APB 25”) and related interpretations.
We continue to use the Black-Scholes valuation model to calculate the fair value of share-based awards.
Refer to Note 8 for additional discussion regarding details of our share-based employee compensation plans and the adoption of FAS 123R.
New accounting pronouncements—In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No.158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an Amendment of FASB Statements No.87, 88, 106, and 132(R) (“FAS 158”).
This statement requires us to recognize the funded status of our pension and postretirement plans as an asset or liability in the balance sheet.
The statement also requires us to recognize changes in the funded status in the year in which the changes occur through comprehensive income.
As required, we adopted the provisions of FAS 158 as of May 31, 2007 which decreased other assets by $145 thousand, decreased deferred income tax liability by $52 thousand and decreased accumulated other comprehensive income by $93 thousand.
The adoption of FAS 158 had no effect on our consolidated statement of operations for the fiscal year ended May 31, 2007, or for
Contractual Obligations.
The following table summarizes the Company’s major contractual obligations at December 31, 2009:
## Table 2 ##
Future policyholder benefits — Future policyholder benefits include liabilities related to traditional whole life policies, term life policies, pension closeout and other group annuity contracts, structured settlements, master terminal funding agreements, single premium immediate annuities, long-term disability policies, individual disability income policies, long-term care (“LTC”) policies and property and casualty contracts.
Included within future policyholder benefits are contracts where the Company is currently making payments and will continue to do so until the occurrence of a specific event such as death, as well as those where the timing of a portion of the payments has been determined by the contract.
Also included are contracts where the Company is not currently making payments and will not make payments until the occurrence of an insurable event, such as death or illness, or where the occurrence of the payment triggering event, such as a surrender of a policy or contract, is outside the control of the Company.
The Company has estimated the timing of the cash flows related to these contracts based on historical experience, as well as its expectation of future payment patterns.
Liabilities related to accounting conventions, or which are not contractually due, such as shadow liabilities, excess interest reserves and property and casualty loss adjustment expenses, of $498 million have been excluded from amounts presented in the table above.
Amounts presented in the table above, excluding those related to property and casualty contracts, represent the estimated cash payments for benefits under such contracts including assumptions related to the receipt of future premiums and assumptions related to mortality, morbidity, policy lapse, renewal, retirement, inflation, disability incidence, disability terminations, policy loans and other contingent events as appropriate to the respective product type.
Payments for case reserve liabilities and incurred but not reported liabilities associated with property and casualty contracts of $1.5 billion have been included using an estimate of the ultimate amount to be settled under the policies based upon historical payment patterns.
The ultimate amount to be paid under property and casualty contracts is not determined until the Company reaches a settlement with the claimant, which may vary significantly from the liability or contractual obligation presented above especially as it relates to incurred but not reported liabilities.
All estimated cash payments presented in the table above are undiscounted as to interest, net of estimated future premiums on policies currently in-force and gross of any reinsurance recoverable.
The more than five years category includes estimated payments due for periods extending for more than 100 years from the present date.
The sum of the estimated cash flows shown for all years in the table of $310.6 billion exceeds the liability amount of $135.9 billion included on the consolidated balance sheet principally due to the time value of money, which accounts for at least 80% of the difference, as well as differences in assumptions, most significantly mortality, between the date the liabilities were initially established and the current date.
For the majority of the Company’s insurance operations, estimated contractual obligations for future policy benefits and policyholder account balance liabilities as presented in the table above are derived from the annual asset adequacy analysis used to develop actuarial opinions of statutory reserve adequacy for state regulatory purposes.
These cash flows are materially representative of the cash flows under generally accepted accounting principles.
(See “— Policyholder account balances” below. )
Actual cash payments to policyholders may differ significantly from the liabilities as presented in the consolidated balance sheet and the estimated cash payments as presented in the table above due to differences between actual experience and the assumptions used in the establishment of these liabilities and the estimation of these cash payments.
Policyholder account balances — Policyholder account balances include liabilities related to conventional guaranteed interest contracts, guaranteed interest contracts associated with formal offering programs, funding agreements, individual and group annuities, total control accounts, individual and group universal life, variable universal life and company-owned life insurance.
Included within policyholder account balances are contracts where the amount and timing of the payment is essentially fixed and determinable.
These amounts relate to policies where the Company is currently making payments and will continue to do so, as well as those where the timing of the payments has been determined by the contract.
Other contracts involve payment obligations where the timing of future payments is uncertain and where the Company is not currently making payments and will not make payments until the occurrence of an insurable event, such as death, or where the occurrence of the payment triggering event, such as a surrender of or partial withdrawal on a policy or deposit contract, is outside the control of the Company.
The Company has estimated the timing of the cash flows related to these contracts based on historical experience, as well as its expectation of future payment patterns.
Excess interest reserves representing purchase accounting adjustments of $565 million have been excluded from amounts presented in the table above as they represent an accounting convention and not a contractual obligation.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2015 Annual Report / Northern Trust Corporation 64 Corporation Liquidity The liquidity of the Corporation is managed separately from that of the Bank.
The primary sources of cash for the Corporation are issuances of debt or equity, dividend payments from the Bank and interest earned on investment securities and money market assets.
In 2015, the Corporation received $600.0 million of dividends from the Bank.
Dividends from the Bank are subject to certain restrictions, as discussed in further detail in Note 30, “Restrictions on Subsidiary Dividends and Loans or Advances,” to the consolidated financial statements provided in Item 8, “Financial Statements and Supplementary Data.
” The Corporation’s uses of cash consist mainly of dividend payments to the Corporation’s stockholders; the payment of principal and interest to note holders; repurchases of its common stock; and investments in, or loans to, its subsidiaries.
The most significant uses of cash by the Corporation during 2015 were $496.9 million of common stock repurchases and $321.4 million of common stock dividends.
The Corporation’s liquidity, defined as the amount of cash and highly marketable assets, was $757.5 million and $869.4 million at December 31, 2015 and 2014, respectively.
During, and at year-end, 2015 and 2014, these assets were comprised almost entirely of cash in a demand deposit account at the Bank or overnight money market placements, both of which were fully available to the Corporation to support its own cash flow requirements or those of its subsidiaries, as needed.
Average liquidity during 2015 and 2014 was $846.2 million and $1.1 billion, respectively.
The cash flows of the Corporation are shown in Note 33, “Northern Trust Corporation (Corporation only),” to the consolidated financial statements provided in Item 8, “Financial Statements and Supplementary Data.
” A significant source of liquidity for both the Corporation and the Bank is the ability to draw funding from capital markets globally.
The credit ratings of the Corporation and the Bank as of December 31, 2015, provided below, allow Northern Trust to access capital markets on favorable terms.
TABLE 35: NORTHERN TRUST CREDIT RATINGS AS OF DECEMBER 31, 2015

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December 31,	2016	2015
IPALCO common stock	$618	$460
Colon quotas-1	100	—
IPL preferred stock	60	60
Other common stock	4	—
DPL preferred stock	—	18
Total redeemable stock of subsidiaries	$782	$538

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2007	2006	2005
(in thousands, except per share data)
Basic EPS:
Net income available to common shareholders	$142,985	$125,524	$92,896
Basic weighted average shares outstanding	80,229	78,874	77,116
Earnings per share	1.78	$1.59	$1.20
Diluted EPS:
Net income available to common shareholders	$142,985	$125,524	$92,896
Basic weighted average shares outstanding	80,229	78,874	77,116
Plus: dilutive effect of stock options and restricted stock awards	1,593	3,275	2,644
Diluted weighted average shares outstanding	81,822	82,149	79,760
Earnings per share	$1.75	$1.53	$1.16

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Contractual Obligations	Total	Less Than One Year	More Than One Year and Less Than Three Years	More Than Three Years and Less Than Five Years	More Than Five Years
(In millions)
Future policy benefits	$310,592	$7,220	$10,681	$11,424	$281,267
Policyholder account balances	198,087	22,764	30,586	24,536	120,201
Other policyholder liabilities	6,142	6,142	—	—	—
Payables for collateral under securities loaned and other transactions	24,196	24,196	—	—	—
Bank deposits	10,354	8,998	1,293	63	—
Short-term debt	912	912	—	—	—
Long-term debt	21,138	1,155	4,214	2,312	13,457
Collateral financing arrangements	6,694	61	122	122	6,389
Junior subordinated debt securities	10,450	258	517	517	9,158
Commitments to lend funds	7,549	7,349	177	4	19
Operating leases	1,996	287	427	288	994
Other	11,788	11,374	6	6	402
Total	$609,898	$90,716	$48,023	$39,272	$431,887

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Question: as of december 31 , 2015 , what was the maximum premium on the dp&l preferred stock?
Answer: 0.03