NOTE 3 – PARTNERSHIP CAPITAL

The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners, in each case, other than members of the Executive Committee (as defined in the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014 (the “Partnership Agreement”)), who require financing for some or all of their Partnership capital contributions. It is anticipated that of the future general and subordinated limited partnership capital contributions (in each case, other than for Executive Committee members) requiring financing the majority will be financed through Partnership loans. In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the interest rate defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans financed through the Partnership is reflected as a reduction to total Partnership capital. As of March 25, 2016 and December 31, 2015, the outstanding amount of Partnership loans financed through the Partnership was $297 and $218, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $2 for both the three month periods ended March 25, 2016 and March 27, 2015.

The following table shows the roll forward of outstanding Partnership loans for:

	Three Months Ended
	March 25,			March 27,
	2016			2015
Partnership loans outstanding at beginning of period	$	218		$	198
Partnership loans issued during the period		139			119
Repayment of Partnership loans during the period		(60	)		(67	)
Total Partnership loans outstanding	$	297		$	250

The minimum 7.5% annual payment on the face amount of limited partnership capital was $17 for both the three month periods ended March 25, 2016 and March 27, 2015. These amounts are included as a component of interest expense in the Consolidated Statements of Income.

The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission (“SEC”) on January 17, 2014, to register $350 in Interests to be issued pursuant to the Partnership’s 2014 Employee Limited Partnership Interest Purchase Plan (the “Plan”). On January 2, 2015, the Partnership issued $292 of Interests in connection with the Plan. In addition, on January 4, 2016, the Partnership issued an immaterial amount of additional Interests to individuals participating in retirement transition plans pursuant to the Plan. The remaining $58 of Interests may be issued in connection with the Plan at the discretion of the Partnership in the future.