NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in Millions, Except Per Share Amounts) Long-term debt maturing over the next five years and thereafter is as follows:
## Table 0 ##
Other On March 7, 2003, Standard & Poor's Ratings Services downgraded the Company's senior secured credit rating to BB+ with negative outlook from BBB-.
On May 14, 2003, Fitch Ratings downgraded the Company's senior unsecured credit rating to BB+ with negative outlook from BBB-.
On May 9, 2003, Moody's Investor Services, Inc.  ("Moody's") placed the Company's senior unsecured and subordinated credit ratings on review for possible downgrade from Baa3 and Ba1, respectively.
As of March 12, 2004, the Company's credit ratings continued to be on review for a possible downgrade.
Since July 2001, the Company has not repurchased its common stock in the open market.
In October 2003, the Company received a federal tax refund of approximately $90 as a result of its carryback of its 2002 loss for US federal income tax purposes and certain capital losses, to earlier periods.
Through December 2002, the Company had paid cash dividends quarterly with the most recent quarterly dividend paid in December 2002 at a rate of $0.095 per share.
On a quarterly basis, the Company's Board of Directors makes determinations regarding the payment of dividends.
As previously discussed, the Company's ability to declare or pay dividends is currently restricted by the terms of its Revolving Credit Facilities.
The Company did not declare or pay any dividends in 2003.
However, in 2004, the Company expects to pay any dividends accruing on the Series A Mandatory Convertible Preferred Stock in cash, which is expressly permitted by the Revolving Credit Facilities.
See Note 14 for discussion of fair market value of the Company's long-term debt.
Note 9: Equity Offering On December 16, 2003, the Company sold 25.8 million shares of common stock and issued 7.5 million shares of 3- year Series A Mandatory Convertible Preferred Stock (the "Preferred Stock").
The total net proceeds received from the concurrent offerings was approximately $693.
The Preferred Stock carries a dividend yield of 5.375%.
On maturity, each share of the Preferred Stock will convert, subject to adjustment, to between 3.0358 and 3.7037 shares of common stock, depending on the then-current market price of the Company's common stock, representing a conversion premium of approximately 22% over the stock offering price of $13.50 per share.
Under certain circumstances, the Preferred Stock may be converted prior to maturity at the option of the holders or the Company.
The common and preferred stock were issued under the Company's existing shelf registration statement.
In January 2004, the Company used approximately $246 of the net proceeds from the offerings to redeem the 1.80% Convertible Subordinated Notes due 2004.
The remaining proceeds will be used for general corporate purposes and to further strengthen the Company's balance sheet and financial condition.
The Company will pay annual dividends on each share of the Series A Mandatory Convertible Preferred Stock in the amount of $2.6875.
Dividends will be cumulative from the date of issuance and will be payable on each payment date to the extent that dividends are not restricted under the Company's credit facilities and assets are legally available to pay dividends.
The first dividend payment, which was declared on February 24, 2004, will be made on March 15, 2004.
financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the unaudited quarterly data.
This information should be read in conjunction with our Consolidated Financial Statements and related Notes included in this Annual Report on Form 10-K.
The results of operations for any quarter are not necessarily indicative of results that we may achieve for any subsequent periods.
## Table 1 ##
(1) Of these amounts, $1,920, $2,137, $1,928, $1,761, $1,985, $2,039, $2,276 and $2,457, respectively, were from related parties.
(2) Of these amounts, $804, $873, $788, $738, $783, $933, $1,049 and $1,052, respectively, were from related parties.
(3) Of these amounts, $429, $437, $378, $273, $302, $378, $363 and $486, respectively, were from related parties.
(4) Of these amounts, $15, $7, $3, $8, $9, $10, $9 and $7, respectively, were from related parties.
(5) Of these amounts, $53, $73, $81, $69, $61, $64, $60 and $58, respectively, were from related parties.
(6) Of these amounts, $267, $209, $310, $379, $90, $58, $36 and $30, respectively, were from related parties.
(7) Of these amounts, $43, $45, $45, $38, $42, $38, $37 and $35, respectively, were from related parties.
Table of Contents Index to Financial Statements counterparty does not fulfill its obligation to complete a transaction.
Pursuant to the terms of the securities clearing agreements between us and the independent clearing broker, the clearing broker has the right to charge us for losses resulting from a counterparty’s failure to fulfill its contractual obligations.
The losses are not capped at a maximum amount and apply to all trades executed through the clearing broker.
At December 31, 2011, we had not recorded any liabilities with regard to this right.
In the ordinary course of business, we enter into contracts that contain a variety of representations, warranties and general indemnifications.
Our maximum exposure from any claims under these arrangements is unknown, as this would involve claims that have not yet occurred.
However, based on past experience, we expect the risk of loss to be remote.
In October 2011, our Board of Directors authorized a share repurchase program for up to $35.0 million of our common stock.
As of December 31, 2011, a total of 237,998 shares were repurchased at an aggregate cost of $6.9 million.
Shares repurchased under the program will be held in treasury for future use.
Through February 16, 2012, a total of 820,894 shares have been repurchased at an aggregate cost of $25.2 million.
In January 2012, the Company’s Board of Directors approved a quarterly cash dividend of $0.11 per share payable on March 1, 2012 to stockholders of record as of the close of business on February 16, 2012.
Any future declaration and payment of dividends will be at the sole discretion of the Company’s Board of Directors.
The Board of Directors may take into account such matters as general business conditions, the Company’s financial results, capital requirements, contractual, legal, and regulatory restrictions on the payment of dividends to the Company’s stockholders or by the Company’s subsidiaries to the parent and any such other factors as the Board of Directors may deem relevant.
Effects of Inflation Because the majority of our assets are liquid in nature, they are not significantly affected by inflation.
However, the rate of inflation may affect our expenses, such as employee compensation, office leasing costs and communications expenses, which may not be readily recoverable in the prices of our services.
To the extent inflation results in rising interest rates and has other adverse effects on the securities markets, it may adversely affect our financial position and results of operations.
Contractual Obligations and Commitments As of December 31, 2011, we had the following contractual obligations and commitments:
## Table 2 ##
We enter into foreign currency forward contracts with a non-controlling stockholder broker-dealer client to hedge the exposure to variability in foreign currency cash flows resulting from the net investment in our U. K.  subsidiary.
As of December 31, 2011, the notional value of the foreign currency forward contract outstanding was $28.7 million and the gross and net fair value asset was $0.2 million.
As of December 31, 2011, we had unrecognized tax benefits of $3.6 million.
Due to the nature of the underlying positions, it is not currently possible to schedule the future payment obligations by period.
In January 2012, our Board of Directors approved a quarterly dividend to be paid to the holders of the outstanding shares of capital stock.
A cash dividend of $0.11 per share of voting and non-voting common stock outstanding will be payable on March 1, 2012 to stockholders of record as of the close of business on February 16, 2012.
We expect the total amount payable to be approximately $4.2 million.
The following table presents our capital spend for 2015, 2016 and 2017 organized by the type of the spending as described above:
## Table 3 ##
Non-Real Estate:
(1) The amount at December 31, 2017 includes approximately $66,800 related to a capital lease associated with our data center in Manassas, Virginia.
Competition We are a global leader in the physical storage and information management services industry with operations in 53 countries as of December 31, 2017.
We compete with our current and potential customers' internal storage and information management services capabilities.
We compete with numerous storage and information management services providers in every geographic area where we operate.
The physical storage and information management services industry is highly competitive and includes thousands of competitors in North America and around the world.
We believe that competition for records and information customers is based on price, reputation and reliability, quality and security of storage, quality of service and scope and scale of technology, and we believe we generally compete effectively in these areas.
We also compete with numerous data center developers, owners and operators, many of whom own properties similar to ours in some of the same metropolitan areas where our facilities are located.
We believe that competition for data center customers is based on available power, security considerations, location, connectivity and rental rates, and we believe we generally compete effectively in each of these areas.
Alternative Technologies We derive most of our revenues from rental fees for the storage of physical records and computer backup tapes and from storage related services.
Alternative storage technologies exist, many of which require significantly less space than physical documents and tapes, and as alternative technologies are adopted, storage related services may decline as the physical records or tapes we store become less active and more archived.
While storage of physical documents continues to grow, we continue to provide, primarily through partnerships, additional services such as online backup, designed to address our customers' need for efficient, cost-effective, high-quality solutions for electronic records and storage and information management.
Employees As of December 31, 2017, we employed more than 8,400 employees in the United States and more than 15,600 employees outside of the United States.
At December 31, 2017, approximately 700 employees were represented by unions in North America (in California, Illinois, Georgia, New Jersey and Pennsylvania and three provinces in Canada) and approximately 3,600 employees were represented by unions in Latin America (in Argentina, Brazil and Chile).
We use a measurement date of December 31 for plan assets and benefit obligations.
A reconciliation of the changes in the projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in plan assets for the qualified pension plan follows.
Table 96: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
## Table 4 ##
At December 31, 2015, the fair value of the qualified pension plan assets was less than both the accumulated benefit obligation and the projected benefit obligation.
The nonqualified pension plan is unfunded.
Contributions from PNC and, in the case of the postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans.
The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in Table 96.
In March 2010, the Patient Protection and Affordable Care Act (PPACA) was enacted.
Key aspects of the PPACA which are reflected in our consolidated financial statements include the excise tax on high-cost health plans beginning in 2018 and fees for the Transitional Reinsurance Program and the PatientCentered Outcomes Research Institute.
These provisions did not have a significant effect on our postretirement medical liability or costs.
The Early Retiree Reinsurance Program (ERRP) was established by the PPACA.
Congress appropriated funding of $5.0 billion for this temporary ERRP to provide financial assistance to employers, unions, and state and local governments to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare, including their spouses, surviving spouses, and dependents.
PNC did not receive reimbursement in 2014 related to the 2013 plan year.
The ERRP terminated effective January 1, 2014.
In 2011, we transferred approximately 1.3 million shares of BlackRock Series C Preferred Stock to BlackRock in connection with our obligation.
In 2013, we transferred an additional .2 million shares to BlackRock.
At December 31, 2015, we held approximately 1.3 million shares of BlackRock Series C Preferred Stock which were available to fund our obligation in connection with the BlackRock LTIP programs.
See Note 24 Subsequent Events for information on our February 1, 2016 transfer of 0.5 million shares of the Series C Preferred Stock to BlackRock to satisfy a portion of our LTIP obligation.
PNC accounts for its BlackRock Series C Preferred Stock at fair value, which offsets the impact of marking-to-market the obligation to deliver these shares to BlackRock.
The fair value of the BlackRock Series C Preferred Stock is included on our Consolidated Balance Sheet in the caption Other assets.
Additional information regarding the valuation of the BlackRock Series C Preferred Stock is included in Note 7 Fair Value.
NOTE 14 FINANCIAL DERIVATIVES We use derivative financial instruments (derivatives) primarily to help manage exposure to interest rate, market and credit risk and reduce the effects that changes in interest rates may have on net income, the fair value of assets and liabilities, and cash flows.
We also enter into derivatives with customers to facilitate their risk management activities.
Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract.
Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and it is not recorded on the balance sheet.
The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract.
The underlying is a referenced interest rate (commonly LIBOR), security price, credit spread or other index.
Residential and commercial real estate loan commitments associated with loans to be sold also qualify as derivative instruments.

Tables referenced above, in order (Table 0 first):
<table><tr><td>2004</td><td>$ 244.5</td></tr><tr><td>2005</td><td>$ 523.8</td></tr><tr><td>2006</td><td>$ 338.5</td></tr><tr><td>2007</td><td>$ 0.9</td></tr><tr><td>2008</td><td>$ 0.9</td></tr><tr><td>2009 and thereafter</td><td>$1,327.6</td></tr></table>
<table><tr><td></td><td colspan="8"> Three Months Ended</td></tr><tr><td></td><td> Mar 31,   2008</td><td> Jun 30,   2008</td><td> Sep 30,   2008</td><td> Dec 31,   2008</td><td> Mar 31,   2009</td><td> Jun 30,   2009</td><td> Sep 30,   2009</td><td> Dec 31,   2009</td></tr><tr><td></td><td colspan="8"> (In thousands)</td></tr><tr><td> Revenues</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commissions</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. high-grade-1</td><td>$12,402</td><td>$12,554</td><td>$10,777</td><td>$10,814</td><td>$13,515</td><td>$13,808</td><td>$16,306</td><td>$18,928</td></tr><tr><td>Eurobond-2</td><td>4,589</td><td>5,120</td><td>4,427</td><td>4,010</td><td>4,142</td><td>4,712</td><td>5,497</td><td>5,988</td></tr><tr><td>Other-3</td><td>2,304</td><td>2,464</td><td>2,015</td><td>2,052</td><td>2,789</td><td>3,310</td><td>3,486</td><td>3,651</td></tr><tr><td>Total commissions</td><td>19,295</td><td>20,138</td><td>17,219</td><td>16,876</td><td>20,446</td><td>21,830</td><td>25,289</td><td>28,567</td></tr><tr><td>Technology products and services-4</td><td>767</td><td>2,676</td><td>2,646</td><td>2,466</td><td>2,023</td><td>2,096</td><td>2,601</td><td>3,058</td></tr><tr><td>Information and user access fees-5</td><td>1,481</td><td>1,442</td><td>1,562</td><td>1,540</td><td>1,655</td><td>1,504</td><td>1,519</td><td>1,574</td></tr><tr><td>Interest income-6</td><td>991</td><td>761</td><td>963</td><td>763</td><td>332</td><td>234</td><td>314</td><td>342</td></tr><tr><td>Other-7</td><td>405</td><td>620</td><td>291</td><td>183</td><td>176</td><td>175</td><td>286</td><td>418</td></tr><tr><td>Total revenues</td><td>22,939</td><td>25,637</td><td>22,681</td><td>21,828</td><td>24,632</td><td>25,839</td><td>30,009</td><td>33,959</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employee compensation and benefits</td><td>11,018</td><td>11,576</td><td>11,173</td><td>10,043</td><td>11,442</td><td>11,917</td><td>13,127</td><td>13,788</td></tr><tr><td>Depreciation and amortization</td><td>1,780</td><td>1,816</td><td>2,494</td><td>1,789</td><td>1,791</td><td>1,679</td><td>1,654</td><td>1,666</td></tr><tr><td>Technology and communications</td><td>2,106</td><td>2,048</td><td>2,007</td><td>2,150</td><td>2,242</td><td>2,120</td><td>2,029</td><td>2,045</td></tr><tr><td>Professional and consulting fees</td><td>2,153</td><td>2,521</td><td>1,822</td><td>1,675</td><td>1,879</td><td>1,613</td><td>1,645</td><td>1,732</td></tr><tr><td>Occupancy</td><td>767</td><td>739</td><td>660</td><td>725</td><td>676</td><td>693</td><td>706</td><td>1,054</td></tr><tr><td>Marketing and advertising</td><td>684</td><td>685</td><td>708</td><td>955</td><td>645</td><td>708</td><td>651</td><td>878</td></tr><tr><td>General and administrative</td><td>1,467</td><td>1,493</td><td>1,719</td><td>1,478</td><td>1,226</td><td>1,373</td><td>1,654</td><td>1,757</td></tr><tr><td>Total expenses</td><td>19,975</td><td>20,878</td><td>20,583</td><td>18,815</td><td>19,901</td><td>20,103</td><td>21,466</td><td>22,920</td></tr><tr><td>Income before income taxes</td><td>2,964</td><td>4,759</td><td>2,098</td><td>3,013</td><td>4,731</td><td>5,736</td><td>8,543</td><td>11,039</td></tr><tr><td>Provision for income taxes</td><td>1,368</td><td>1,911</td><td>579</td><td>1,077</td><td>1,892</td><td>2,549</td><td>3,903</td><td>5,603</td></tr><tr><td>Net income</td><td>$1,596</td><td>$2,848</td><td>$1,519</td><td>$1,936</td><td>$2,839</td><td>$3,187</td><td>$4,640</td><td>$5,436</td></tr></table>
<table><tr><td></td><td colspan="5"> Payments due by period</td></tr><tr><td></td><td> Total</td><td> Less than 1 year</td><td> 1 - 3 years</td><td> 3 - 5 years</td><td> More than 5 years</td></tr><tr><td></td><td colspan="5"> (In thousands)</td></tr><tr><td>Operating leases</td><td>$19,551</td><td>$1,805</td><td>$3,546</td><td>$4,041</td><td>$10,159</td></tr><tr><td>Capital leases</td><td>700</td><td>336</td><td>364</td><td>—</td><td>—</td></tr><tr><td>Foreign currency forward contract</td><td>28,516</td><td>28,516</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>$48,767</td><td>$30,657</td><td>$3,910</td><td>$4,041</td><td>$10,159</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>Nature of Capital Spend (in thousands)</td><td>2015</td><td>2016</td><td>2017</td></tr><tr><td>Real Estate:</td><td colspan="3"></td></tr><tr><td></td><td></td><td>Investment</td><td>$151,695</td></tr><tr><td>$133,079</td><td>$139,822</td><td>Maintenance</td><td>52,826</td></tr><tr><td>63,543</td><td>77,660</td><td>Total Real Estate Capital Spend</td><td>204,521</td></tr><tr><td>196,622</td><td>217,482</td><td>Non-Real Estate:</td><td></td></tr><tr><td></td><td></td><td>Investment</td><td>46,411</td></tr><tr><td>40,509</td><td>56,297</td><td>Maintenance</td><td>23,372</td></tr><tr><td>20,642</td><td>29,721</td><td>Total Non-Real Estate Capital Spend</td><td>69,783</td></tr><tr><td>61,151</td><td>86,018</td><td>Data Center Investment and Maintenance Capital Spend</td><td>20,624</td></tr><tr><td>72,728</td><td>92,597</td><td>Innovation and Growth Investment Capital Spend</td><td>—</td></tr><tr><td>8,573</td><td>20,583</td><td>Total Capital Spend (on accrual basis)</td><td>294,928</td></tr><tr><td>339,074</td><td>416,680</td><td>Net (decrease) increase in prepaid capital expenditures</td><td>-362</td></tr><tr><td>374</td><td>1,629</td><td>Net (increase) decrease accrued capital expenditures(1)</td><td>-4,317</td></tr><tr><td>-10,845</td><td>-75,178</td><td>Total Capital Spend (on cash basis)</td><td>$290,249</td></tr></table>
<table><tr><td></td><td colspan="2">Qualified Pension</td><td colspan="2">Nonqualified Pension</td><td colspan="2">Postretirement Benefits</td></tr><tr><td>December 31 (Measurement Date) – in millions</td><td>2015</td><td>2014</td><td>2015</td><td>2014</td><td>2015</td><td>2014</td></tr><tr><td>Accumulated benefit obligation at end of year</td><td>$4,330</td><td>$4,427</td><td>$292</td><td>$316</td><td></td><td></td></tr><tr><td>Projected benefit obligation at beginning of year</td><td>$4,499</td><td>$3,966</td><td>$322</td><td>$292</td><td>$379</td><td>$375</td></tr><tr><td>Service cost</td><td>107</td><td>103</td><td>3</td><td>3</td><td>5</td><td>5</td></tr><tr><td>Interest cost</td><td>177</td><td>187</td><td>11</td><td>12</td><td>15</td><td>16</td></tr><tr><td>Plan amendments</td><td></td><td>-7</td><td></td><td></td><td></td><td></td></tr><tr><td>Actuarial (gains)/losses and changes in assumptions</td><td>-126</td><td>504</td><td>-10</td><td>40</td><td>-9</td><td>4</td></tr><tr><td>Participant contributions</td><td></td><td></td><td></td><td></td><td>5</td><td>8</td></tr><tr><td>Federal Medicare subsidy on benefits paid</td><td></td><td></td><td></td><td></td><td>2</td><td>2</td></tr><tr><td>Benefits paid</td><td>-260</td><td>-254</td><td>-28</td><td>-25</td><td>-28</td><td>-31</td></tr><tr><td>Settlement payments</td><td></td><td></td><td></td><td></td><td>-1</td><td></td></tr><tr><td>Projected benefit obligation at end of year</td><td>$4,397</td><td>$4,499</td><td>$298</td><td>$322</td><td>$368</td><td>$379</td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>$4,357</td><td>$4,252</td><td></td><td></td><td></td><td></td></tr><tr><td>Actual return on plan assets</td><td>19</td><td>359</td><td></td><td></td><td></td><td></td></tr><tr><td>Employer contribution</td><td>200</td><td></td><td>$28</td><td>$25</td><td>$222</td><td>$21</td></tr><tr><td>Participant contributions</td><td></td><td></td><td></td><td></td><td>5</td><td>8</td></tr><tr><td>Federal Medicare subsidy on benefits paid</td><td></td><td></td><td></td><td></td><td>2</td><td>2</td></tr><tr><td>Benefits paid</td><td>-260</td><td>-254</td><td>-28</td><td>-25</td><td>-28</td><td>-31</td></tr><tr><td>Settlement payments</td><td></td><td></td><td></td><td></td><td>-1</td><td></td></tr><tr><td>Fair value of plan assets at end of year</td><td>$4,316</td><td>$4,357</td><td></td><td></td><td>$200</td><td></td></tr><tr><td>Funded status</td><td>$-81</td><td>$-142</td><td>$-298</td><td>$-322</td><td>$-168</td><td>$-379</td></tr><tr><td>Amounts recognized on the consolidated balance sheet</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Noncurrent asset</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Current liability</td><td></td><td></td><td>$-27</td><td>$-31</td><td>$-2</td><td>$-25</td></tr><tr><td>Noncurrent liability</td><td>$-81</td><td>$-142</td><td>-271</td><td>-291</td><td>-166</td><td>-354</td></tr><tr><td>Net amount recognized on the consolidated balance sheet</td><td>$-81</td><td>$-142</td><td>$-298</td><td>$-322</td><td>$-168</td><td>$-379</td></tr><tr><td>Amounts recognized in accumulated other comprehensive income consist of:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Prior service cost (credit)</td><td>$-13</td><td>$-22</td><td>$1</td><td>$1</td><td>$-3</td><td>$-4</td></tr><tr><td>Net actuarial loss</td><td>794</td><td>673</td><td>71</td><td>88</td><td>22</td><td>31</td></tr><tr><td>Amount recognized in AOCI</td><td>$781</td><td>$651</td><td>$72</td><td>$89</td><td>$19</td><td>$27</td></tr></table>

Question: What is the sum of the Interest cost for Qualified Pension in the years where Accumulated benefit obligation at end of year greater than 4000 for Qualified Pension? (in million)
Answer: 364
Reasoning program: add(177,187)