Table of Contents The Company uses some custom components that are not commonly used by its competitors, and new products introduced by the Company often utilize custom components available from only one source.
When a component or product uses new technologies, initial capacity constraints may exist until the suppliers’ yields have matured or manufacturing capacity has increased.
If the Company’s supply of components for a new or existing product were delayed or constrained, or if an outsourcing partner delayed shipments of completed products to the Company, the Company’s financial condition and operating results could be materially adversely affected.
The Company’s business and financial performance could also be materially adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source.
Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers concentrated on the production of common components instead of components customized to meet the Company’s requirements.
The Company has entered into agreements for the supply of many components; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all.
Therefore, the Company remains subject to significant risks of supply shortages and price increases that could materially adversely affect its financial condition and operating results.
Substantially all of the Company’s hardware products are manufactured by outsourcing partners that are located primarily in Asia.
A significant concentration of this manufacturing is currently performed by a small number of outsourcing partners, often in single locations.
Certain of these outsourcing partners are the solesourced suppliers of components and manufacturers for many of the Company’s products.
Although the Company works closely with its outsourcing partners on manufacturing schedules, the Company’s operating results could be adversely affected if its outsourcing partners were unable to meet their production commitments.
The Company’s purchase commitments typically cover its requirements for periods up to 150 days.
Other Off-Balance Sheet Commitments Operating Leases The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements.
The Company does not currently utilize any other off-balance sheet financing arrangements.
The major facility leases are typically for terms not exceeding 10 years and generally contain multi-year renewal options.
As of September 26, 2015, the Company had a total of 463 retail stores.
Leases for retail space are for terms ranging from five to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.
As of September 26, 2015, the Company’s total future minimum lease payments under noncancelable operating leases were $6.3 billion, of which $3.6 billion related to leases for retail space.
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $794 million, $717 million and $645 million in 2015, 2014 and 2013, respectively.
Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 26, 2015, are as follows (in millions):
## Table 0 ##
Other Commitments The Company utilizes several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products.
These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days.
The Company also obtains individual components for its products from a wide variety of individual suppliers.
Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts and open orders based on projected demand information.
Where appropriate, the purchases are applied to inventory component prepayments that are outstanding with the respective supplier.
As of September 26, 2015, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $29.5 billion.
Apple Inc.  | 2015 Form 10-K | 65
the Green Giant brand intangible asset as of May 31, 2015, and determined that the fair value of the brand asset no longer exceeded the carrying value of the asset.
Significant assumptions used in that assessment included our updated long-range cash flow projections for the Green Giant business, an updated royalty rate, a weighted-average cost of capital, and a tax rate.
We recorded a $260.0 million impairment charge in restructuring, impairment, and other exit costs in fiscal 2015 related to this asset.
NOTE 7.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES Financial Instruments The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value.
Marketable securities are carried at fair value.
As of May 28, 2017 and May 29, 2016, a comparison of cost and market values of our marketable debt and equity securities is as follows:
## Table 1 ##
There were no realized gains or losses from sales of available-for-sale marketable securities.
Gains and losses are determined by specific identification.
Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security’s maturity date.
The aggregate unrealized gains and losses on available-for-sale securities, net of tax effects, are classified in AOCI within stockholders’ equity.
Scheduled maturities of our marketable securities are as follows:
## Table 2 ##
As of May 28, 2017, we did not any have cash and cash equivalents pledged as collateral for derivative contracts.
As of May 28, 2017, $19.6 million of certain accounts receivable were pledged as collateral against a foreign uncommitted line of credit.
The fair value and carrying amounts of long-term debt, including the current portion, were $8,547.0 million and $8,247.6 million, respectively, as of May 28, 2017.
The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments.
Long-term debt is a Level 2 liability in the fair value hierarchy.
Risk Management Activities As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices.
To manage these risks, we may enter into various derivative transactions (e. g. , futures, options, and swaps) pursuant to our established policies.
Commodity Price Risk Many commodities we use in the production and distribution of our products are exposed to market price risks.
We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel.
Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain.
We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-thecounter options and swaps.
We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close to our planned cost as possible.
We use derivatives to manage our exposure to changes in commodity prices.
We do not perform the assessments required to achieve hedge accounting for commodity derivative positions.
Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings.
Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for
We expect that approximately $1.2 billion, or about $800 million net of tax, of actuarial losses and net prior service credit related to postretirement benefit plans included in accumulated other comprehensive loss at the end of 2016 to be recognized in net periodic benefit cost during 2017.
Of this amount, $1.1 billion, or $743 million net of tax, relates to our qualified defined benefit plans and is included in our expected 2017 pension expense of $1.4 billion.
Actuarial Assumptions The actuarial assumptions used to determine the benefit obligations at December 31 of each year and to determine the net periodic benefit cost for each subsequent year, were as follows:
## Table 3 ##
The decrease in the discount rate from December 31, 2015 to December 31, 2016 resulted in an increase in the projected benefit obligations of our qualified defined benefit pension plans of approximately $1.4 billion at December 31, 2016.
The increase in the discount rate from December 31, 2014 to December 31, 2015 resulted in a decrease in the projected benefit obligations of our qualified defined benefit pension plans of approximately $2.1 billion at December 31, 2015.
The long-term rate of return assumption represents the expected long-term rate of earnings on the funds invested, or to be invested, to provide for the benefits included in the benefit obligations.
That assumption is based on several factors including historical market index returns, the anticipated long-term allocation of plan assets, the historical return data for the trust funds, plan expenses and the potential to outperform market index returns.
Plan Assets Investment policies and strategies – Lockheed Martin Investment Management Company (LMIMCo), our whollyowned subsidiary, has the fiduciary responsibility for making investment decisions related to the assets of our postretirement benefit plans.
LMIMCo’s investment objectives for the assets of these plans are (1) to minimize the net present value of expected funding contributions; (2) to ensure there is a high probability that each plan meets or exceeds our actuarial longterm rate of return assumptions; and (3) to diversify assets to minimize the risk of large losses.
The nature and duration of benefit obligations, along with assumptions concerning asset class returns and return correlations, are considered when determining an appropriate asset allocation to achieve the investment objectives.
Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives within prudent risk parameters.
Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due.
LMIMCo’s investment policies require that asset allocations of postretirement benefit plans be maintained within the following approximate ranges:
## Table 4 ##
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) variable annuity products offered by the Company.
The Company utilizes exchange-traded equity futures in non-qualifying hedging relationships.
Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company.
To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price.
The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price.
In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options.
Equity index options are included in equity options in the preceding table.
The Company utilizes equity index options in non-qualifying hedging relationships.
Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company.
In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period.
Equity variance swaps are included in variance swaps in the preceding table.
The Company utilizes equity variance swaps in non-qualifying hedging relationships.
Total rate of return swaps (“TRRs”) are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional principal amount.
No cash is exchanged at the outset of the contract.
Cash is paid and received over the life of the contract based on the terms of the swap.
These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date.
The Company uses TRRs to hedge its equity market guarantees in certain of its insurance products.
TRRs can be used as hedges or to synthetically create investments.
The Company utilizes TRRs in non-qualifying hedging relationships.
Hedging The following table presents the notional amount and estimated fair value of derivatives designated as hedging instruments by type of hedge designation at:
## Table 5 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td>2016</td><td>$772</td></tr><tr><td>2017</td><td>774</td></tr><tr><td>2018</td><td>744</td></tr><tr><td>2019</td><td>715</td></tr><tr><td>2020</td><td>674</td></tr><tr><td>Thereafter</td><td>2,592</td></tr><tr><td>Total</td><td>$6,271</td></tr></table>
<table><tr><td></td><td colspan="2"> Cost  Fiscal Year</td><td colspan="2"> Fair Value  Fiscal Year</td><td colspan="2"> Gross Gains  Fiscal Year</td><td colspan="3"> Gross Losses  Fiscal Year</td></tr><tr><td> In Millions</td><td> 2017</td><td> 2016</td><td> 2017</td><td> 2016</td><td> 2017</td><td> 2016</td><td colspan="2"> 2017</td><td> 2016</td></tr><tr><td>Available for sale:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Debt securities</td><td>$265.4</td><td>$165.7</td><td>$265.5</td><td>$165.8</td><td>$0.1</td><td>$0.1</td><td> $</td><td> —</td><td>$—</td></tr><tr><td>Equity securities</td><td>1.8</td><td>1.8</td><td>9.9</td><td>8.4</td><td>8.1</td><td>6.6</td><td> </td><td> —</td><td>—</td></tr><tr><td>Total</td><td>$267.2</td><td>$167.5</td><td>$275.4</td><td>$174.2</td><td>$8.2</td><td>$6.7</td><td> $</td><td> —</td><td>$—</td></tr></table>
<table><tr><td></td><td colspan="2"> Available for Sale</td></tr><tr><td> In Millions</td><td> Cost</td><td> Fair Value</td></tr><tr><td>Under 1 year (current)</td><td>$265.4</td><td>$265.5</td></tr><tr><td>Equity securities</td><td>1.8</td><td>9.9</td></tr><tr><td>Total</td><td>$267.2</td><td>$275.4</td></tr></table>
<table><tr><td></td><td colspan="3"> Qualified Defined Benefit Pension Plans</td><td colspan="3"> Retiree Medical and Life Insurance Plans</td></tr><tr><td></td><td> 2016</td><td> 2015</td><td> 2014</td><td> 2016</td><td> 2015</td><td> 2014</td></tr><tr><td>Weighted average discount rate</td><td> 4.125%</td><td>4.375%</td><td>4.00%</td><td> 4.00%</td><td>4.25%</td><td>3.75%</td></tr><tr><td>Expected long-term rate of return on assets</td><td> 7.50%</td><td>8.00%</td><td>8.00%</td><td> 7.50%</td><td>8.00%</td><td>8.00%</td></tr><tr><td>Rate of increase in future compensation levels (for applicable bargained pension plans)</td><td> 4.50%</td><td>4.50%</td><td>4.30%</td><td></td><td></td><td></td></tr><tr><td>Health care trend rate assumed for next year</td><td></td><td></td><td></td><td> 8.75%</td><td>9.00%</td><td>8.50%</td></tr><tr><td>Ultimate health care trend rate</td><td></td><td></td><td></td><td> 5.00%</td><td>5.00%</td><td>5.00%</td></tr><tr><td>Year that the ultimate health care trend rate isreached</td><td></td><td></td><td></td><td> 2032</td><td>2032</td><td>2029</td></tr></table>
<table><tr><td> Asset Class</td><td> Asset Allocation Ranges</td></tr><tr><td>Cash and cash equivalents</td><td>0-20%</td></tr><tr><td>Equity</td><td>15-65%</td></tr><tr><td>Fixed income</td><td>10-60%</td></tr><tr><td>Alternative investments:</td><td></td></tr><tr><td>Private equity funds</td><td>0-15%</td></tr><tr><td>Real estate funds</td><td>0-10%</td></tr><tr><td>Hedge funds</td><td>0-20%</td></tr><tr><td>Commodities</td><td>0-25%</td></tr></table>
<table><tr><td></td><td colspan="6"> December 31,</td></tr><tr><td></td><td colspan="3"> 2009  Estimated   Fair   Value</td><td colspan="3"> 2008  Estimated   Fair   Value</td></tr><tr><td></td><td> Notional </td><td></td><td></td><td> Notional </td><td></td><td></td></tr><tr><td> Derivatives Designated as Hedging Instruments</td><td> Amount</td><td> Assets</td><td> Liabilities</td><td> Amount</td><td> Assets</td><td> Liabilities</td></tr><tr><td></td><td colspan="6"> (In millions)</td></tr><tr><td>Fair Value Hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign currency swaps</td><td>$4,807</td><td>$854</td><td>$132</td><td>$6,093</td><td>$467</td><td>$550</td></tr><tr><td>Interest rate swaps</td><td>4,824</td><td>500</td><td>75</td><td>4,141</td><td>1,338</td><td>153</td></tr><tr><td>Subtotal</td><td>9,631</td><td>1,354</td><td>207</td><td>10,234</td><td>1,805</td><td>703</td></tr><tr><td>Cash Flow Hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign currency swaps</td><td>4,108</td><td>127</td><td>347</td><td>3,782</td><td>463</td><td>381</td></tr><tr><td>Interest rate swaps</td><td>1,740</td><td>—</td><td>48</td><td>286</td><td>—</td><td>6</td></tr><tr><td>Interest rate forwards</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Credit forwards</td><td>220</td><td>2</td><td>6</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Subtotal</td><td>6,068</td><td>129</td><td>401</td><td>4,068</td><td>463</td><td>387</td></tr><tr><td>Foreign Operations Hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign currency forwards</td><td>1,880</td><td>27</td><td>13</td><td>1,670</td><td>32</td><td>50</td></tr><tr><td>Foreign currency swaps</td><td>—</td><td>—</td><td>—</td><td>164</td><td>1</td><td>—</td></tr><tr><td>Non-derivative hedging instruments</td><td>—</td><td>—</td><td>—</td><td>351</td><td>—</td><td>323</td></tr><tr><td>Subtotal</td><td>1,880</td><td>27</td><td>13</td><td>2,185</td><td>33</td><td>373</td></tr><tr><td>Total Qualifying Hedges</td><td>$17,579</td><td>$1,510</td><td>$621</td><td>$16,487</td><td>$2,301</td><td>$1,463</td></tr></table>

Question: How many years does Interest rate swaps stay higher than Interest rate forwards for Liabilities?
Answer: 2