The following are mental ray attributes under the File node.
The Convert File to Optimized Format attribute is the override for the global Use optimized textures (auto-conversion) option in the Preferences window, under the Rendering section. The global option converts all textures in your scene to the optimized format while this option within the file node only converts the selected texture to an optimized format. To override the global setting, select the Override Global Auto-Conversion Settings attribute and then use Convert File to Optimized Format to choose whether or not to convert your file to an optimized format. See Mental Ray Preferences in the Basics guide for more information.