AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The term of the Economic Rights Agreement is seventy years; however, TV Azteca has the right to purchase, at fair market value, the Economic Rights from the Company at any time during the last fifty years of the agreement.
Should TV Azteca elect to purchase the Economic Rights (in whole or in part), it would also be obligated to repay a proportional amount of the loan discussed above at the time of such election.
The Company’s obligation to pay TV Azteca $1.5 million annually would also be reduced proportionally.
The Company has accounted for the annual payment of $1.5 million as a capital lease (initially recording an asset and a corresponding liability of approximately $18.6 million).
The capital lease asset and the discount on the note, which aggregate approximately $30.2 million, represent the cost to acquire the Economic Rights and are being amortized over the seventy-year life of the Economic Rights agreement.
On a quarterly basis, the Company assesses the recoverability of its note receivable from TV Azteca.
As of December 31, 2005 and 2004, the Company has assessed the recoverability of the note receivable from TV Azteca and concluded that no adjustment to its carrying value is required.
An executive officer and former director of the Company served as a director of TV Azteca from December 1999 to February 2006.
As of December 31, 2005 and 2004, the Company also had other long-term notes receivable outstanding of approximately $11.1 million and $11.2 million, respectively.7.  FINANCING ARRANGEMENTS Outstanding amounts under the Company’s long-term financing arrangements consisted of the following as of December 31, (in thousands):
## Table 0 ##
New Credit Facilities—In October 2005, the Company refinanced the two existing credit facilities of its principal operating subsidiaries.
The Company replaced the existing American Tower $1.1 billion senior secured credit facility with a new $1.3 billion senior secured credit facility and replaced the existing SpectraSite $900.0 million senior secured credit facility with a new $1.15 billion senior secured credit facility.
As a result of the repayment of the previous credit facilities, the Company recorded a net loss on retirement of long-term obligations of $9.8 million in the fourth quarter of 2005.
The following table presents the notional amount and current market or estimated fair value of derivative financial instruments, excluding embedded derivatives, held at:
## Table 1 ##
Fair Value Hierarchy.
Derivatives measured at estimated fair value on a recurring basis and their corresponding fair value hierarchy, are summarized as follows:
## Table 2 ##
The valuation of Level 3 derivatives involves the use of significant unobservable inputs and generally requires a higher degree of management judgment or estimation than the valuations of Level 1 and Level 2 derivatives.
Although Level 3 inputs are based on assumptions deemed appropriate given the circumstances and are consistent with what other market participants would use when pricing such instruments, the use of different inputs or methodologies could have a material effect on the estimated fair value of Level 3 derivatives and could materially affect net income.
Derivatives categorized as Level 3 at December 31, 2008 include: financial forwards including swap spread locks with maturities which extend beyond observable periods; interest rate lock commitments with certain unobservable inputs, including pull-through rates; equity variance swaps with unobservable volatility inputs or that are priced via independent broker quotations; foreign currency swaps which are cancelable and priced through independent broker quotations; interest rate swaps with maturities which extend beyond the observable portion of the yield curve; credit default swaps based upon baskets of credits having unobservable credit correlations as well as credit default swaps with maturities which extend beyond the observable portion of the credit curves and credit default swaps priced through independent broker quotes; foreign currency forwards priced via independent broker quotations or with liquidity adjustments; equity options with unobservable volatility inputs; and interest rate caps and floors referencing unobservable yield curves and/or which include liquidity and volatility adjustments.
At December 31, 2008 and 2007, 2.7% and 1.5% of the net derivative estimated fair value was priced via independent broker quotations.
A rollforward of the fair value measurements for derivatives measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs for the year ended December 31, 2008 is as follows:
## Table 3 ##
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) Information regarding ceded reinsurance recoverable balances, included in premiums and other receivables is as follows:
## Table 4 ##
Reinsurance recoverable balances are stated net of allowances for uncollectible balances, which are immaterial.
The Company evaluates the financial strength of the Company’s reinsurers by monitoring their ratings and analyzing their financial statements.
The Company also analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers.
Recoverability of reinsurance recoverable balances are evaluated based on these analyses.
Included in the reinsurance recoverables are, $1.2 billion at both December 31, 2008 and 2007 related to reinsurance of long-term GICs and structured settlement lump sum contracts accounted for as a financing transaction; $3.9 billion and $3.4 billion at December 31, 2008 and 2007, respectively, related to reinsurance recoverable on the run-off of long-term care business originally written by MICC; $1.1 billion and $1.2 billion at December 31, 2008 and 2007, respectively, related to reinsurance recoverable on the run-off of workers compensation business originally written by MICC; and $0.6 billion and $1.1 billion at December 31, 2008 and 2007, respectively, related to the reinsurance of investment-type contracts held by small market defined benefit contribution plans.
The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit.
At December 31, 2008, the Company has $5,489 million of reinsurance recoverable balances secured by funds held in trust as collateral, $524 million of reinsurance recoverable balances secured by funds withheld accounts and $286 million of reinsurance recoverable balances secured through irrevocable letters of credit issued by various financial institutions.
At December 31, 2008, $7,651 million, or 69%, of the Company’s total reinsurance recoverable balances were due from its five largest reinsurers.
Of these reinsurance recoverable balances, $5,194 million were secured by funds held in trust as collateral and $209 million were secured through irrevocable letters of credit issued by various financial institutions.
Reinsurance balances payable, included in other liabilities, were $1,405 million and $571 million at December 31, 2008 and 2007, respectively.9.
Closed Block On April 7, 2000, (the “Demutualization Date”), MLIC converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc.
The conversion was pursuant to an order by the New York Superintendent of Insurance (the “Superintendent”) approving MLIC’s plan of reorganization, as amended (the “Plan”).
On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.
Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes.
At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales.
Dividend scales are adjusted periodically to give effect to changes in experience.
The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block.
To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued.
Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders.
If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block.
The closed block will continue in effect as long as any policy in the closed block remains in-force.
The expected life of the closed block is over 100 years.
The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date.
However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below.
The excess of closed block liabilities over closed block assets at the effective date of the demutualization (adjusted to eliminate the impact of related amounts in accumulated other comprehensive income) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes.
Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force.
Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes.
If, over the period the closed block remains in existence, the actual cumulative
liabilities associated with a Supreme Court ruling.
The Company’s earnings from its investment in Japan decreased due to an increase in losses on embedded derivatives associated with variable annuity riders, an increase in DAC amortization related to market performance and the impact of a refinement in assumptions for the guaranteed annuity business partially offset by the favorable impact from the utilization of the fair value option for certain fixed annuities.
The Company’s results were also impacted by a decrease in earnings from assumed reinsurance, offset by an increase in income from hedging activities associated with Japan’s guaranteed annuity benefits.
These decreases were offset by an increase in net investment gains which was due to an increase from gains on derivatives primarily in Japan partially offset by losses primarily on fixed maturity investments.
There was also an increase in income from continuing operations relating to Hong Kong associated with the remaining 50% interest in MetLife Fubon acquired in the in the second quarter of 2007.
The Auto & Home segment’s decrease in income from continuing operations was primarily attributable to an increase in net investment losses and an increase in policyholder benefits and claims.
The increase in net investment losses was due to an increase in losses on fixed maturity and equity securities.
The increase in policyholder benefits and claims was comprised primarily of an increase in catastrophe losses offset by a decrease in non-catastrophe policyholder benefits and claims.
Offsetting these decreases was an increase in premiums.
Income from continuing operations for Corporate & Other decreased due to lower net investment income as well as higher corporate expenses, interest expense, legal costs and interest credited to policyholder account balances.
These decreases were offset by an increase in net investment gains, higher other revenues, lower interest on uncertain tax positions, and lower interest credited to bankholder deposits.
The increase in net investment gains was primarily due to an elimination of losses which were recognized by other segments, partially offset by losses on fixed maturity securities and derivatives.
Revenues and Expenses Premiums, Fees and Other Revenues Premiums, fees and other revenues increased by $3,208 million, or 11%, to $32,881 million for the year ended December 31, 2008 from $29,673 million for the comparable 2007 period.
The following table provides the change from the prior year in premiums, fees and other revenues by segment:
## Table 5 ##
The Institutional segment’s increase in premiums, fees and other revenues was primarily due to increases in the retirement & savings, non-medical health & other and group life businesses.
The increase in the retirement & savings business was primarily due to increases in premiums in the group institutional annuity, structured settlement and global GIC businesses.
The increase in both group institutional annuity and the structured settlement businesses were primarily due to higher sales.
The increase in the group institutional annuity business was primarily due to large domestic sales and the first significant sales in the United Kingdom business in the current year.
The growth in the non-medical health & other business was largely due to increases in the dental, disability, accidental death & dismemberment (“AD&D”), and individual disability insurance (“IDI”) businesses.
The increase in the dental business was primarily due to organic growth in the business and the impact of an acquisition that closed in the first quarter of 2008.
The increase in group life business was primarily due to an increase in term life, which was largely attributable to business growth, partially offset by a decrease in assumed reinsurance.
The Individual segment’s decrease in premiums, fees and other revenues was primarily attributable to decreases in universal life and investment-type product policy fees and other revenues.
These decreases were due to lower average separate account balances due to unfavorable equity market performance during the current year, as well as revisions to management’s assumptions used to determine estimated gross profits and margins.
These decreases were partially offset by universal life business growth over the prior year.
The International segment’s increase in premiums, fees and other revenues was primarily due to business growth in the Latin America region, as well as the impact of an acquisition in the Asia Pacific region, and the impact of foreign currency exchange rates.
Chile’s premiums, fees and other revenues increased primarily due to higher annuity sales, as well as higher institutional premiums from its traditional and bank distribution channels.
Mexico’s premiums, fees and other revenues increased primarily due to growth in its individual and institutional businesses, as well as the reinstatement of premiums from prior periods.
Hong Kong’s increase was due to the acquisition of the remaining 50% interest in MetLife Fubon in the second quarter of 2007 and the resulting consolidation of the operation beginning in the third quarter of 2007.
The United Kingdom’s premiums, fees and other revenues increased primarily due to growth in the reinsurance business as well as the prior year impact of an unearned premium calculation refinement.
South Korea’s premiums, fees and other revenues increased due to growth in its guaranteed annuity and variable universal life businesses, as well as in its traditional business.
Australia’s premiums, fees and other revenues increased primarily due to growth in the institutional business and an increase in retention levels.
These increases in premiums, fees and other revenues were partially offset by a decrease in Argentina primarily due to a decrease in premiums in the pension business, for which pension reform eliminated the obligation of plan administrators to provide death and disability coverage effective January 1, 2008.
The Auto & Home segment reflected no change when compared to the prior year although a slight increase in premiums was offset by lower other revenues.
The increase in Corporate & Other premiums, fees and other revenues was primarily related to MetLife Bank loan origination and servicing fees from acquisitions in 2008 and an adjustment of surrender values on corporate-owned life insurance (“COLI”) policies in the prior year, partially offset by lower revenue from a prior year resolution of an indemnification claim associated with the 2000 acquisition of GALIC.
The growth in the Auto & Home segment was primarily due to an increase in premiums related to increased exposures, an increase from various voluntary and involuntary programs, and an increase resulting from the change in estimate on auto rate refunds due to a regulatory examination, as well as an increase in other revenues primarily due to slower than anticipated claim payments in 2006.
These increases were partially offset by a reduction in average earned premium per policy, and an increase in catastrophe reinsurance costs.
The increase in Corporate & Other was primarily related to the resolution of an indemnification claim associated with the 2000 acquisition of GALIC, partially offset by an adjustment of surrender values on COLI policies.
Net Investment Income Net investment income increased by $1,816 million, or 11%, to $18,063 million for the year ended December 31, 2007 from $16,247 million for the comparable 2006 period.
Management attributes $1,078 million of this increase to growth in the average asset base and $738 million to an increase in yields.
The increase in net investment income from growth in the average asset base was primarily within fixed maturity securities, mortgage loans, real estate joint ventures and other limited partnership interests.
The increase in net investment income attributable to higher yields was primarily due to higher returns on fixed maturity securities, other limited partnership interests excluding hedge funds, equity securities and improved securities lending results, partially offset by lower returns on real estate joint ventures, cash, cash equivalents and short-term investments, hedge funds and mortgage loans.
Interest Margin Interest margin, which represents the difference between interest earned and interest credited to policyholder account balances increased in the Institutional and Individual segments for the year ended December 31, 2007 as compared to 2006.
Interest earned approximates net investment income on investable assets attributed to the segment with minor adjustments related to the consolidation of certain separate accounts and other minor non-policyholder elements.
Interest credited is the amount attributed to insurance products, recorded in policyholder benefits and claims, and the amount credited to policyholder account balances for investment-type products, recorded in interest credited to policyholder account balances.
Interest credited on insurance products reflects the 2007 impact of the interest rate assumptions established at issuance or acquisition.
Interest credited to policyholder account balances is subject to contractual terms, including some minimum guarantees.
This tends to move gradually over time to reflect market interest rate movements and may reflect actions by management to respond to competitive pressures and, therefore, generally does not introduce volatility in expense.
Net Investment Gains (Losses) Net investment losses decreased by $804 million to a loss of $578 million for the year ended December 31, 2007 from a loss of $1,382 million for the comparable 2006 period.
The decrease in net investment losses was primarily due to a reduction of losses on fixed maturity securities resulting principally from the 2006 portfolio repositioning in a rising interest rate environment, increased gains from asset-based foreign currency transactions due to a decline in the U. S.  dollar year over year against several major currencies and increased gains on equity securities, partially offset by increased losses from the mark-to-market on derivatives and reduced gains on real estate and real estate joint ventures.
Underwriting Underwriting results are generally the difference between the portion of premium and fee income intended to cover mortality, morbidity or other insurance costs, less claims incurred, and the change in insurance-related liabilities.
Underwriting results are significantly influenced by mortality, morbidity or other insurance-related experience trends, as well as the reinsurance activity related to certain blocks of business.
Consequently, results can fluctuate from year to year.
Underwriting results, excluding catastrophes, in the Auto & Home segment were favorable for the year ended December 31, 2007.
Although lower than comparable period of 2006, as the combined ratio, excluding catastrophes, increased to 86.3% from 82.8% for the year ended December 31, 2006.
Underwriting results were favorable in the non-medical health & other, group life and retirement & savings businesses in the Institutional segment.
Underwriting results were unfavorable in the life products in the Individual segment.
Other Expenses Other expenses increased by $892 million, or 9%, to $10,429 million for the year ended December 31, 2007 from $9,537 million for the comparable 2006 period.
The following table provides the 2007 change in other expenses by segment:

<table><tr><td></td><td>2005</td><td>2004</td></tr><tr><td>American Tower credit facility</td><td>$793,000</td><td>$698,000</td></tr><tr><td>SpectraSite credit facility</td><td>700,000</td><td></td></tr><tr><td>Senior subordinated notes</td><td>400,000</td><td>400,000</td></tr><tr><td>Senior subordinated discount notes, net of discount and warrant valuation</td><td>160,252</td><td>303,755</td></tr><tr><td>Senior notes, net of discount and premium</td><td>726,754</td><td>1,001,817</td></tr><tr><td>Convertible notes, net of discount</td><td>773,058</td><td>830,056</td></tr><tr><td>Notes payable and capital leases</td><td>60,365</td><td>59,986</td></tr><tr><td>Total</td><td>3,613,429</td><td>3,293,614</td></tr><tr><td>Less current portion of other long-term obligations</td><td>-162,153</td><td>-138,386</td></tr><tr><td>Long-term debt</td><td>$3,451,276</td><td>$3,155,228</td></tr></table>
<table><tr><td></td><td colspan="3"> December 31, 2008</td><td colspan="3"> December 31, 2007</td></tr><tr><td></td><td> Notional </td><td colspan="2"> Current Market   or Fair Value</td><td> Notional </td><td colspan="2"> Current Market   or Fair Value</td></tr><tr><td></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>Interest rate swaps</td><td>$34,060</td><td>$4,617</td><td>$1,468</td><td>$62,410</td><td>$784</td><td>$768</td></tr><tr><td>Interest rate floors</td><td>48,517</td><td>1,748</td><td>—</td><td>48,937</td><td>621</td><td>—</td></tr><tr><td>Interest rate caps</td><td>24,643</td><td>11</td><td>—</td><td>45,498</td><td>50</td><td>—</td></tr><tr><td>Financial futures</td><td>19,908</td><td>45</td><td>205</td><td>12,302</td><td>89</td><td>57</td></tr><tr><td>Foreign currency swaps</td><td>19,438</td><td>1,953</td><td>1,866</td><td>21,201</td><td>1,480</td><td>1,719</td></tr><tr><td>Foreign currency forwards</td><td>5,167</td><td>153</td><td>129</td><td>4,177</td><td>76</td><td>16</td></tr><tr><td>Options</td><td>8,450</td><td>3,162</td><td>35</td><td>6,565</td><td>713</td><td>1</td></tr><tr><td>Financial forwards</td><td>28,176</td><td>465</td><td>169</td><td>11,937</td><td>122</td><td>2</td></tr><tr><td>Credit default swaps</td><td>5,219</td><td>152</td><td>69</td><td>6,625</td><td>58</td><td>33</td></tr><tr><td>Synthetic GICs</td><td>4,260</td><td>—</td><td>—</td><td>3,670</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>250</td><td>—</td><td>101</td><td>250</td><td>43</td><td>—</td></tr><tr><td>Total</td><td>$198,088</td><td>$12,306</td><td>$4,042</td><td>$223,572</td><td>$4,036</td><td>$2,596</td></tr></table>
<table><tr><td></td><td colspan="4"> December 31, 2008</td></tr><tr><td></td><td colspan="2">Derivative Assets</td><td colspan="2"> Derivative   Liabilities</td></tr><tr><td></td><td colspan="4"> (In millions)</td></tr><tr><td>Quoted prices in active markets for identical assets and liabilities (Level 1)</td><td>$55</td><td>—%</td><td>273</td><td>7%</td></tr><tr><td>Significant other observable inputs (Level 2)</td><td>9,483</td><td>77</td><td>3,548</td><td>88</td></tr><tr><td>Significant unobservable inputs (Level 3)</td><td>2,768</td><td>23</td><td>221</td><td>5</td></tr><tr><td>Total estimated fair value</td><td>$12,306</td><td>100%</td><td>$4,042</td><td>100%</td></tr></table>
<table><tr><td></td><td>Year Ended December 31, 2008 (In millions)</td></tr><tr><td>Balance, December 31, 2007</td><td>$789</td></tr><tr><td>Impact of SFAS 157 and SFAS 159 adoption</td><td>-1</td></tr><tr><td>Balance, beginning of period</td><td>788</td></tr><tr><td>Total realized/unrealized gains (losses) included in:</td><td></td></tr><tr><td>Earnings</td><td>1,729</td></tr><tr><td>Other comprehensive income (loss)</td><td>—</td></tr><tr><td>Purchases, sales, issuances and settlements</td><td>29</td></tr><tr><td>Transfer in and/or out of Level 3</td><td>1</td></tr><tr><td>Balance, end of period</td><td>$2,547</td></tr></table>
<table><tr><td></td><td colspan="2"> December 31,</td></tr><tr><td></td><td> 2008</td><td> 2007</td></tr><tr><td></td><td colspan="2"> (In millions)</td></tr><tr><td>Future policy benefit recoverables</td><td>$8,258</td><td>$6,842</td></tr><tr><td>Deposit recoverables</td><td>2,258</td><td>2,616</td></tr><tr><td>Claim recoverables</td><td>319</td><td>271</td></tr><tr><td>All other recoverables</td><td>232</td><td>48</td></tr><tr><td>Total</td><td>$11,067</td><td>$9,777</td></tr></table>
<table><tr><td></td><td></td><td>% of Total</td></tr><tr><td></td><td>$ Change (In millions)</td><td>$ Change</td></tr><tr><td>Institutional</td><td>$2,705</td><td>84%</td></tr><tr><td>Individual</td><td>-70</td><td>-2</td></tr><tr><td>International</td><td>468</td><td>15</td></tr><tr><td>Auto & Home</td><td>—</td><td>—</td></tr><tr><td>Corporate & Other</td><td>105</td><td>3</td></tr><tr><td>Total change</td><td>$3,208</td><td>100%</td></tr></table>

Question: Which year is Financial futures of Current Market of Fair Value Assets the highest?