Guidant.
In exchange, we made aggregate payments totaling $600 million to Johnson & Johnson during 2015.
The 2014 net charges also include amounts related to transvaginal surgical mesh product liability cases and claims and certain other items.
Litigation related charges and credits are excluded by management for purposes of evaluating operating performance.
We continue to assess certain litigation and claims to determine the amounts, if any, that management believes will be paid as a result of such claims and litigation and, therefore, additional losses may be accrued and paid in the future, which could materially adversely impact our operating results, cash flows and/ or our ability to comply with our debt covenants.
Refer to Note K—Commitments and Contingencies to our consolidated financial statements contained in Item 8 of this Annual Report for additional discussion of our material legal proceedings.
Pension Termination Charges We recorded pension termination charges of $44 million during 2015 associated with the termination of the Guidant Retirement Plan, a frozen defined benefit plan.
We do not expect to incur any additional charges in the future related to the termination of the Guidant Retirement Plan.
The pension termination charges are excluded by management for purposes of evaluating operating performance.
Gain on Divestiture In January 2011, we closed the sale of our Neurovascular business to Stryker Corporation.
We recorded a pre-tax gain of $12 million during 2014 associated with the transaction.
These divestiture-related gains are excluded by management for purposes of evaluating operating performance.
Interest Expense Our interest expense was $233 million in 2016 with an average borrowing rate of 4.0 percent, as compared to $284 million in 2015, with an average borrowing rate of 5.2 percent.
Interest expense in 2015 included a pre-tax charge of approximately $45 million associated with debt extinguishment charges, representing premiums, accelerated amortization of debt issuance costs and investor discount costs net of interest rate hedge gains related to the early extinguishment of $1.000 billion of debt during the second quarter of 2015.
Our interest expense was $284 million in 2015, with an average borrowing rate of 5.2 percent, as compared to $216 million in 2014, with an average borrowing rates of 4.8 percent.
The increase was primarily due to the pre-tax charge of approximately $45 million associated with debt extinguishment charges, along with incremental debt to finance the AMS Portfolio Acquisition offset by savings from refinancing our senior notes.
Debt extinguishment charges are excluded by management for purposes of evaluating operating performance.
Refer to Liquidity and Capital Resources, Note E—Fair Value Measurements and Note F—Borrowings and Credit Arrangements to our consolidated financial statements contained in Item 8 of this Annual Report for information regarding our debt obligations.
Other, net Our other, net reflected expense of $37 million in 2016, expense of $39 million in 2015, and income of $8 million in 2014.
The following are the components of other, net:
## Table 0 ##
During 2016, we recognized net losses of $21 million due to equity method adjustments on investments and investment impairments which were partially offset by a gain on our Neovasc investment.
During 2015, we recognized net losses of $9 million due to equity method adjustments on investments and investment impairments.
During 2014, we recognized gains of $19 million associated with the acquisition of IoGyn, Inc.  related to previously held investments and other net gains related to our investment portfolio of $8 million.
The acquisition-related gains from previously held investments are excluded by management for purposes of evaluating operating performance.
Refer to Note B—Acquisitions and Strategic Investments to our consolidated financial statements contained in Item 8 of this Annual Report for information regarding our strategic investments.
Tax Rate The following table provides a summary of our reported tax rate:
## Table 1 ##
* These receipts/charges are taxed at different rates than our effective tax rate.
CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT’S DISCUSSION AND ANALYSIS 101 Contractual Obligations The following table presents our outstanding contractual obligations as of December 31, 2016:
## Table 2 ##
(1) Deposits and borrowed funds exclude interest.
(2) Includes demand, checking with interest, regular savings, and money market account deposits.
See “—Deposits” for further information.
(3) Includes obligations under capital leases.
(4) Includes accrued interest and future contractual interest obligations related to long term borrowed funds.
(5) Includes purchase obligations for goods and services covered by non-cancelable contracts and contracts including cancellation fees.
Off-Balance Sheet Arrangements The following table presents our outstanding off-balance sheet arrangements.
See Note 17 “Commitments and Contingencies” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included in this report:
## Table 3 ##
Our agreement to purchase automobile loans, originally entered into in May 2014, was most recently amended on February 18, 2016.
For quarterly periods on or after August 1, 2015, the minimum and maximum purchases are $50 million and $200 million, respectively.
The agreement automatically renews until terminated by either party.
We may cancel the agreement at will with payment of a variable termination fee.
There is no termination fee after May 2017.
Critical Accounting Estimates Our audited Consolidated Financial Statements, which are included in this report, are prepared in accordance with GAAP.
The preparation of financial statements in conformity with GAAP requires us to establish accounting policies and make estimates that affect amounts reported in our audited Consolidated Financial Statements.
An accounting estimate requires assumptions and judgments about uncertain matters that could have a material effect on our audited Consolidated Financial Statements.
Estimates are made using facts and circumstances known at a point in time.
Changes in those facts and circumstances could produce results substantially different from those estimates.
The most significant accounting policies and estimates and their related application are discussed below.
See Note 1 “Significant Accounting Policies” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included in this report, for further discussion of our significant accounting policies.
OPERATING EXPENSES Operating expenses increased to 64.3% of net sales as compared with 62.9% of net sales in the prior year.
The current year operating expense margin was negatively impacted by charges related to the implementation of our cost savings initiative of approximately $92.1 million or approximately 140 basis points, costs related to stockbased compensation as a result of the adoption of SFAS No.123(R) of approximately 60 basis points, and the estimated impact of both the merger of Federated Department Stores, Inc.  and The May Department Stores Company and the hurricanes that affected the southern United States of approximately 40 basis points.
Partially offsetting these incremental costs were operating expense margin improvements of approximately 90 basis points primarily resulting from net sales growth in brands and channels with lower advertising, merchandising and sampling cost structures as well as an overall reduction in this type of spending.
Overall operating expenses reflected savings achieved during fiscal 2006 from our cost savings initiative.
Changes in advertising, sampling and merchandising spending result from the type, timing and level of activities related to product launches and rollouts, as well as the markets being emphasized.
During fiscal 2006, we recorded special charges associated with a cost savings initiative that was designed to support our long-term financial objectives.
As part of this multi-faceted initiative, we identified savings opportunities that include streamlined processes and organizational changes.
The principal component of the initiative was a voluntary separation program offered primarily to North America-based employees.
During the fourth quarter of fiscal 2006, involuntary separations were communicated to certain employees.
Under this initiative, we incurred expenses related to one-time termination benefits for 494 employees, of which 28 were involuntary, which benefits were based principally upon years of service.
In addition, we identified other cost savings opportunities to improve efficiencies in our distribution network and product offerings and to eliminate other nonessential costs.
These charges primarily related to employee severance for facilities that are closing, contract cancellations, counter and door closings and product returns.
An additional $2 million to $3 million is expected to be incurred in fiscal 2007 related to the cost savings initiative.
For the year ended June 30, 2006, aggregate expenses of $92.1 million were recorded as special charges related to the cost savings initiative in the accompanying consolidated statement of earnings.
At June 30, 2006, $40.7 million and $28.2 million related to the cost savings initiative were recorded in other accrued liabilities and other noncurrent liabilities, respectively, in the accompanying consolidated balance sheet.
The following table summarizes the costs and expected savings associated with our cost savings initiative, which impacted, and will continue to impact, our operating expenses and cost of sales:

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>(in millions)</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Interest income</td><td>$5</td><td>$5</td><td>$5</td></tr><tr><td>Foreign currency losses</td><td>-13</td><td>-21</td><td>-18</td></tr><tr><td>Net gains (losses) on investments</td><td>-21</td><td>-9</td><td>27</td></tr><tr><td>Other expense, net</td><td>-8</td><td>-14</td><td>-6</td></tr><tr><td></td><td>$-37</td><td>$-39</td><td>$8</td></tr></table>
<table><tr><td></td><td colspan="3">Year EndedDecember 31,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Reported tax rate</td><td>-95.9%</td><td>63.2%</td><td>76.7%</td></tr><tr><td>Impact of certain receipts/charges*</td><td>108.3%</td><td>-53.5%</td><td>-64.5%</td></tr><tr><td></td><td>12.4%</td><td>9.7%</td><td>12.2%</td></tr></table>
<table><tr><td>(in millions)</td><td>Total</td><td>Less than 1 year</td><td>1 to 3 years</td><td>3 to 5 years</td><td>More than 5 years</td></tr><tr><td>Deposits with a stated maturity of less than one year<sup>-1 (2)</sup></td><td>$96,326</td><td>$96,326</td><td>$—</td><td>$—</td><td>$—</td></tr><tr><td>Term deposits<sup>-1</sup></td><td>13,478</td><td>11,402</td><td>1,642</td><td>428</td><td>6</td></tr><tr><td>Long-term borrowed funds<sup>-1 (3)</sup></td><td>12,790</td><td>—</td><td>9,489</td><td>1,320</td><td>1,981</td></tr><tr><td>Contractual interest payments<sup>-4</sup></td><td>1,046</td><td>234</td><td>345</td><td>223</td><td>244</td></tr><tr><td>Operating lease obligations</td><td>809</td><td>182</td><td>279</td><td>184</td><td>164</td></tr><tr><td>Purchase obligations<sup>-5</sup></td><td>607</td><td>309</td><td>154</td><td>67</td><td>77</td></tr><tr><td>Total outstanding contractual obligations</td><td>$125,056</td><td>$108,453</td><td>$11,909</td><td>$2,222</td><td>$2,472</td></tr></table>
<table><tr><td></td><td colspan="2">December 31,</td><td></td><td></td></tr><tr><td>(dollars in millions)</td><td>2016</td><td>2015</td><td>Change</td><td>Percent</td></tr><tr><td>Commitment amount:</td><td></td><td></td><td></td><td></td></tr><tr><td>Undrawn commitments to extend credit</td><td>$60,872</td><td>$56,524</td><td>$4,348</td><td>8%</td></tr><tr><td>Financial standby letters of credit</td><td>1,892</td><td>2,010</td><td>-118</td><td>-6</td></tr><tr><td>Performance letters of credit</td><td>40</td><td>42</td><td>-2</td><td>-5</td></tr><tr><td>Commercial letters of credit</td><td>43</td><td>87</td><td>-44</td><td>-51</td></tr><tr><td>Marketing rights</td><td>44</td><td>47</td><td>-3</td><td>-6</td></tr><tr><td>Risk participation agreements</td><td>19</td><td>26</td><td>-7</td><td>-27</td></tr><tr><td>Residential mortgage loans sold with recourse</td><td>8</td><td>10</td><td>-2</td><td>-20</td></tr><tr><td>Total</td><td>$62,918</td><td>$58,746</td><td>$4,172</td><td>7%</td></tr></table>

Question: When is Undrawn commitments to extend credit the largest?
Answer: 2016