## Table 0 ##
(2) Provision for income taxes for 2017 included an excess tax benefit of $110.0 million resulting from the adoption of ASU 2016-09 and a provisional amount of $51.8 million in connection with the Tax Cuts and Jobs Act enacted on December 22, 2017.
See Note 8 of the Notes to the Consolidated Financial Statements under Item 8 of the Form 10-K for details.
## Table 1 ##
(1) Total indebtedness as of December 31, 2017, 2016, 2015 and 2014 included our lease financing obligations.
Total indebtedness as of December 31, 2013 included our subordinated convertible promissory notes payable to related parties, subordinated convertible promissory notes payable to third parties, accrued interest payable on the notes and our lease financing obligations.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion and analysis of our financial condition and results of operations together with the consolidated financial statements and related notes that are included elsewhere in this Annual Report on Form 10-K.
This discussion contains forward-looking statements based upon current plans, expectations and beliefs that involve risks and uncertainties.
Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” and elsewhere in this Annual Report on Form 10-K.  Overview We are a leading supplier of cloud networking solutions that use software innovations to address the needs of large-scale Internet companies, cloud service providers and next-generation data centers for enterprise support.
Our cloud networking solutions consist of our Extensible Operating System, or EOS, a set of network applications and our Ethernet switching and routing platforms.
Our cloud networking solutions deliver industry-leading performance, scalability, availability, programmability, automation and visibility.
At the core of our cloud networking platform is EOS, which was purpose-built to be fully programmable and highly modular.
The programmability of EOS has allowed us to create a set of software applications that address the requirements of cloud networking, including workflow automation, network visibility and analytics, and has also allowed us to rapidly integrate with a wide range of third-party applications for virtualization, management, automation, orchestration and network services.
Revenue by Geography (in thousands, except percentages)
## Table 2 ##
Revenue We generate revenue primarily from sales of our products.
We also derive a portion of our revenue from sales of PCS, which is typically purchased in conjunction with our products, and subsequent renewals of those contracts.
We expect our revenue may vary from period to period based on, among other things, the timing and size of orders, the delivery and acceptance of products, and the impact of significant transactions with unique terms and conditions that may require deferral of revenue.
Product revenue increased $441.5 million, or 44.5%, in the year ended December 31, 2017 compared to 2016.
The increase was primarily driven by increased product shipments to our existing customers as they continued to expand their businesses.
In addition, our newer switch products have continued to gain market acceptance, which has contributed to our revenue growth.
Service revenue increased $75.5 million, or 54.8%, in the year ended December 31, 2017 compared to 2016 as a result of continued growth in initial and renewal support contracts as our customer installed base continued to expand.
We continue to experience pricing pressure on our products and services due to competition, but demand for our products and growth in our installed base has more than offset this pricing pressure.
Deferred product revenue at December 31, 2017 remained consistent with the balance at December 31, 2016.
The deferred product revenue balance at December 31, 2016 primarily included customer arrangements with new product and new customer acceptance clauses, which expired during the current year, while the balance at December 31, 2017 primarily represents arrangements with a few of our larger customers related to the ongoing qualification activities of our 945 investigation-related product redesigns.
As we enter 2018, we expect to continue to work with these customers to complete their qualification activities, which may impact our business.
Cost of Revenue and Gross Margin Cost of revenue primarily consists of amounts paid for inventory to our third-party contract manufacturers and merchant silicon vendors, overhead costs in our manufacturing operations department, and other manufacturing-related costs associated with manufacturing our products and managing our inventory.
We expect our cost of product revenue to increase as our product revenue increases.
Cost of providing PCS and other services consists primarily of personnel costs for our global customer support organization.
Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including sales to large end customers who generally receive lower pricing, manufacturingrelated costs including costs associated with supply chain sourcing activities, merchant silicon costs, the mix of products sold, and excess/obsolete inventory write-downs, including charges for excess/obsolete component inventory held by our contract manufacturers.
We expect our gross margins to fluctuate over time, depending on the factors described above and others.
Cost of revenue increased $178.4 million or 43.9% for the year ended December 31, 2017 compared to the same period in 2016.
The increase in cost of revenue was primarily due to an increase in product shipment volumes and the corresponding increase in product revenue.
Gross margin increased from 64.0% to 64.5% for the year ended December 31, 2017 compared to the same period in 2016.
The increase in gross margin was primarily driven by improved service margins as we scaled our services business on a relatively fixed cost base and slightly better product margins due to end customer mix.
This improvement was partially offset by an increase in excess and obsolete inventory-related charges as we transition to new products.
Operating Expenses (in thousands, except percentages) Our operating expenses consist of research and development, sales and marketing and general and administrative expenses.
The largest component of our operating expenses is personnel costs.
Personnel costs consist of wages, benefits, bonuses and, with respect to sales and marketing expenses, sales commissions.
Personnel costs also include stock-based compensation and travel expenses.
We expect operating expenses to continue to increase in absolute dollars in the near term as we continue to invest in the growth of our business.
## Table 3 ##
Research and development.
Research and development expenses consist primarily of personnel costs, prototype expenses, third-party engineering and contractor support costs, and an allocated portion of facility and IT costs including depreciation.
Our research and development efforts are focused on maintaining and developing additional functionality for our existing products and on new product development, including new releases and upgrades to our EOS software and applications.
We expect our research and development expenses to increase in absolute dollars as we continue to invest heavily in software development in order to expand the capabilities of our cloud networking platform, introduce new products and features and build upon our technology leadership.
Research and development expenses increased $76.0 million, or 27.8%, for the year ended December 31, 2017 compared to the same period in 2016.
The increase was primarily due to a $36.9 million increase in personnel costs driven by headcount growth, resulting in additional compensation costs including stock-based compensation, and a $31.6 million increase in prototype and third-party engineering costs driven by additional outsourced development projects and costs associated with litigation-related changes in product design.
In addition, facility and IT costs increase by $5.3 million due to the headcount growth.
Sales and marketing.
Sales and marketing expenses consist primarily of personnel costs, marketing and promotional activities, and an allocated portion of facility and IT costs including depreciation.
We expect our sales and marketing expenses to increase in absolute dollars as we continue to expand our sales and marketing efforts worldwide.
Sales and marketing expenses increased $24.2 million, or 18.5% for the year ended December 31, 2017 compared to the same period in 2016.
The increase included a $15.4 million increase in personnel costs, which was primarily due to increased headcount as well as higher sales volumes, driving increased compensation costs, including commissions and stock-based compensation.
In addition, sales support costs increased by $8.1 million compared to 2016, reflecting increased professional services and field demonstration costs to support our sales infrastructure and expand our customer base.
General and administrative.
General and administrative expenses consist primarily of Cisco and Optumsoft litigation related expenses, personnel costs, professional services fees, and an allocated portion of facility and IT costs including depreciation.
General and administrative personnel costs include those for our executive, finance, human resources and legal functions.
Our professional services fees are primarily due to external legal, accounting, and tax services.
We expect our general and administrative expenses to fluctuate in absolute dollars from period to period depending on the timing and progress of our litigation activities.
Cash Flows
## Table 4 ##
Cash Flows from Operating Activities Our primary source of cash provided by operating activities has been cash collections from our customers.
We expect cash inflows from operating activities to be affected by increased sales and timing of collections.
Our primary uses of cash from operating activities have been for personnel costs, inventory purchases from our contract manufacturers, investment in research and development, and litigation expenses.
During the year ended December 31, 2017, cash provided by operating activities was $631.6 million, primarily from net income of $423.2 million with non-cash adjustments to net income of $105.9 million, and a net increase of $102.5 million in cash from changes in our operating assets and liabilities.
Our operating cash benefited $142.3 million from increased deferred revenue reflecting ongoing growth in service and support contracts, $43.5 million from increased accrued liabilities driven by increased inventory purchases and product development activities, and $19.9 million from increased income taxes payable.
These favorable changes were partially offset by a growth in inventory of $69.7 million, supporting overall growth in the business and the expansion of our manufacturing and supply chain activities, by a decline in accounts payable of $30.1 million due to timing of vendor payments primarily related to inventory purchases, and by an increase in prepaid expenses and other assets of $11.6 million primarily due to increased prepaid taxes.
During the year ended December 31, 2016, cash provided by operating activities was $174.3 million, primarily from net income of $184.2 million with non-cash adjustments to net income of $58.6 million, partially offset by a net decrease in cash from changes in our operating assets and liabilities of $68.4 million.
The decrease in cash from changes in operating assets and liabilities was primarily due to an increase in working capital requirements with accounts receivable up $108.9 million, inventories and inventory deposits up $207.5 million, and increased prepaid expenses and current assets (excluding inventory deposits) of $54.8 million which was primarily driven by an increase in deferred cost of inventory associated with increased product revenue deferrals referenced below.
These increases reflect substantial growth in the business and the expansion of our manufacturing and supply chain activities at our new contract manufacturer.
These working capital increases were partially offset by an increase in deferred revenue of $176.1 million reflecting ongoing growth in service and support contracts and a significant increase in product deferred revenue related to contract acceptance terms, as well as an increase in accounts payable and accrued liabilities of $69.3 million primarily due to timing of inventory purchases, and an increase in income taxes payable of $42.7 million.
During the year ended December 31, 2015, cash provided by operating activities was $237.8 million, primarily from net income of $121.1 million with non-cash adjustments to net income of $36.0 million, and a net increase in cash from changes in our operating assets and liabilities of $80.6 million.
The net increase in cash from changes in operating assets and liabilities was primarily due to an increase in deferred revenue of $90.3 million, largely related to short and long-term services contracts and product revenue deferrals related to contracts with acceptance terms.
In addition, we experienced an increase in cash of $32.0 million from income taxes payable and an increase in our accounts payable and accrued liabilities of $29.4 million due to the timing of payments.
These operating liability increases were offset by an increase in our accounts receivable of $47.3 million and an increase in inventory of $14.1 million due to increased business volume and timing, and prepaid expenses and current assets increased $7.8 million in the period.
INTEL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 16: Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component and related tax effects for each period were as follows:

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="5">Year Ended December 31,</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="5">(in thousands)</td></tr><tr><td>Cost of revenue</td><td>$4,353</td><td>$3,620</td><td>$3,048</td><td>$1,535</td><td>$408</td></tr><tr><td>Research and development</td><td>42,184</td><td>31,892</td><td>25,515</td><td>14,986</td><td>5,464</td></tr><tr><td>Sales and marketing</td><td>17,953</td><td>15,666</td><td>11,454</td><td>7,643</td><td>2,985</td></tr><tr><td>General and administrative</td><td>10,937</td><td>7,854</td><td>5,286</td><td>3,455</td><td>1,302</td></tr><tr><td>Total stock-based compensation</td><td>$75,427</td><td>$59,032</td><td>$45,303</td><td>$27,619</td><td>$10,159</td></tr></table>
<table><tr><td></td><td colspan="5">December 31,</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="5">(in thousands)</td></tr><tr><td>Consolidated Balance Sheet Data:</td><td colspan="5"></td></tr><tr><td>Cash, cash equivalents and marketable securities</td><td>$1,535,555</td><td>$867,833</td><td>$687,326</td><td>$449,457</td><td>$113,664</td></tr><tr><td>Working capital</td><td>1,736,524</td><td>1,066,573</td><td>739,317</td><td>535,106</td><td>73,422</td></tr><tr><td>Total assets</td><td>2,460,860</td><td>1,729,007</td><td>1,159,890</td><td>811,023</td><td>364,520</td></tr><tr><td>Total indebtedness<sup>-1</sup></td><td>39,592</td><td>41,210</td><td>42,546</td><td>43,634</td><td>160,213</td></tr><tr><td>Total deferred revenue</td><td>515,262</td><td>372,935</td><td>196,808</td><td>106,468</td><td>58,904</td></tr><tr><td>Total stockholders’ equity</td><td>$1,661,914</td><td>$1,107,820</td><td>$788,152</td><td>$555,658</td><td>$77,732</td></tr></table>
<table><tr><td></td><td colspan="4">Year Ended December 31,</td></tr><tr><td></td><td>2017</td><td>% of Total</td><td>2016</td><td>% of Total</td></tr><tr><td>Americas</td><td>$1,192,289</td><td>72.4%</td><td>$874,740</td><td>77.5%</td></tr><tr><td>Europe, Middle East and Africa</td><td>299,547</td><td>18.2</td><td>168,789</td><td>14.9</td></tr><tr><td>Asia-Pacific</td><td>154,350</td><td>9.4</td><td>85,638</td><td>7.6</td></tr><tr><td>Total revenue</td><td>$1,646,186</td><td>100.0%</td><td>$1,129,167</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4">Year Ended December 31,</td><td colspan="2"></td></tr><tr><td></td><td colspan="2">2017</td><td colspan="2">2016</td><td colspan="2">Change in</td></tr><tr><td></td><td>$</td><td>% ofRevenue</td><td>$</td><td>% ofRevenue</td><td>$</td><td>%</td></tr><tr><td>Operating expenses:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Research and development</td><td>$349,594</td><td>21.2%</td><td>$273,581</td><td>24.2%</td><td>$76,013</td><td>27.8%</td></tr><tr><td>Sales and marketing</td><td>155,105</td><td>9.4</td><td>130,887</td><td>11.6</td><td>24,218</td><td>18.5</td></tr><tr><td>General and administrative</td><td>86,798</td><td>5.3</td><td>75,239</td><td>6.7</td><td>11,559</td><td>15.4</td></tr><tr><td>Total operating expenses</td><td>$591,497</td><td>35.9%</td><td>$479,707</td><td>42.5%</td><td>$111,790</td><td>23.3%</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td></td><td colspan="3">(in thousands)</td></tr><tr><td>Cash provided by operating activities</td><td>$631,627</td><td>$174,295</td><td>$237,784</td></tr><tr><td>Cash provided by (used in) investing activities</td><td>-392,580</td><td>-325,979</td><td>184,170</td></tr><tr><td>Cash provided by financing activities</td><td>51,469</td><td>32,745</td><td>25,854</td></tr><tr><td>Effect of exchange rate changes</td><td>753</td><td>-464</td><td>-513</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>$291,269</td><td>$-119,403</td><td>$447,295</td></tr></table>

Question: What will Total stockholders' equity reach in 2018 if it continues to grow at its current rate? (in thousand)
Answer: 2.49315e+06
Reasoning program: subtract(1661914,1107820), multiply(1661914,#0), divide(#1,1107820), add(1661914,#2)