14.
CAPITAL STOCK Shares Outstanding.
The following table presents information regarding capital stock:
## Table 0 ##
CME Group has no shares of preferred stock issued and outstanding.
Associated Trading Rights.
Members of CME, CBOT, NYMEX and COMEX own or lease trading rights which entitle them to access open outcry trading, discounts on trading fees and the right to vote on certain exchange matters as provided for by the rules of the particular exchange and CME Group’s or the subsidiaries’ organizational documents.
Each class of CME Group Class B common stock is associated with a membership in a specific division for trading at CME.
A CME trading right is a separate asset that is not part of or evidenced by the associated share of Class B common stock of CME Group.
The Class B common stock of CME Group is intended only to ensure that the Class B shareholders of CME Group retain rights with respect to representation on the board of directors and approval rights with respect to the core rights described below.
Trading rights at CBOT are evidenced by Class B memberships in CBOT, at NYMEX by Class A memberships in NYMEX and at COMEX by COMEX Division Memberships.
Members of CBOT, NYMEX and COMEX do not have any rights to elect members of the board of directors and are not entitled to receive dividends or other distributions on their memberships or trading permits.
Core Rights.
Holders of CME Group Class B common shares have the right to approve changes in specified rights relating to the trading privileges at CME associated with those shares.
These core rights relate primarily to trading right protections, certain trading fee protections and certain membership benefit protections.
Votes on changes to these core rights are weighted by class.
Each class of Class B common stock has the following number of votes on matters relating to core rights: Class B-1, six votes per share; Class B-2, two votes per share; Class B-3, one vote per share; and Class B-4, 1/6th of one vote per share.
The approval of a majority of the votes cast by the holders of shares of Class B common stock is required in order to approve any changes to core rights.
Holders of shares of Class A common stock do not have the right to vote on changes to core rights.
Voting Rights.
With the exception of the matters reserved to holders of CME Group Class B common stock, holders of CME Group common stock vote together on all matters for which a vote of common shareholders is required.
In these votes, each holder of shares of Class A or Class B common stock of CME Group has one vote per share.
Transfer Restrictions.
Each class of CME Group Class B common stock is subject to transfer restrictions contained in the Certificate of Incorporation of CME Group.
These transfer restrictions prohibit the sale or transfer of any shares of Class B common stock separate from the sale of the associated trading rights.
Election of Directors.
The CME Group Board of Directors is currently comprised of 20 members.
Holders of Class B-1, Class B-2 and Class B-3 common stock have the right to elect six directors, of which three are elected by Class B-1 shareholders, two are elected by Class B-2 shareholders and one is elected by Class B-3 shareholders.
The remaining directors are elected by the Class A and Class B shareholders voting as a single class.
The following table summarizes our borrowings, categorized by use of proceeds, as of December 31:
## Table 1 ##
(1) Includes $1.519 billion and $1.518 billion of total outstanding junior subordinated debt as of December 31, 2010 and 2009, respectively.
See “—Prudential Financial” for additional information on our capital debt to total capital ratio, including the equity credit attributed to our outstanding junior subordinated debt.
(2) As of both December 31, 2010 and 2009, $1.750 billion of limited and non-recourse debt outstanding was attributable to the Closed Block Business.
The following table presents, as of December 31, 2010, the Company’s contractual maturities of its long-term debt:
## Table 2 ##
We may, from time to time, seek to redeem or repurchase our outstanding debt securities through individually negotiated transactions or otherwise.
Any such repurchases will depend on prevailing market conditions, our liquidity position, contractual restrictions and other factors.
The states of domicile of our domestic life insurance subsidiaries have in place a regulation entitled “Valuation of Life Insurance Policies,” commonly known as “Regulation XXX,” and a supporting Guideline entitled “The Application of the Valuation of Life Insurance Policies,” commonly known as “Guideline AXXX.
” The Regulation and supporting Guideline require insurers to establish statutory reserves for term and universal life insurance policies with long-term premium guarantees that are consistent with the statutory reserves required for other individual life insurance policies with similar guarantees.
Many market participants believe that this level of reserves is excessive, and we have implemented reinsurance and capital management actions to mitigate the impact of Regulation XXX and Guideline AXXX on our term and universal life insurance business, including actions that are described in more detail below.
In 2006, a subsidiary of Prudential Insurance entered into a surplus note purchase agreement with an unaffiliated financial institution that provides for the issuance of up to $3.0 billion of ten-year floating rate surplus notes through 2016, if certain conditions are met (commonly referred to as XXX notes), for the purpose of financing certain regulatory reserves required to be held by subsidiary life insurers in connection with the intercompany reinsurance of certain term life insurance policies.
In connection with this financing arrangement, Prudential Financial has agreed with such subsidiary that it or certain of its affiliates will make capital contributions to such subsidiary as necessary to maintain the capital of such subsidiary at or above a prescribed minimum level.
Concurrent with the issuance of each surplus note, Prudential Financial enters into arrangements with the buyer, which are accounted for as derivative instruments, which may result in payments by, or to, Prudential Financial over the term of the surplus notes, to the extent there are significant changes in the value of the surplus notes.
Principal factors that impact the value of the surplus notes are mortality experience, interest rates and credit spreads.
As of December 31, 2010, there have been no collateral postings made under the derivative instruments.
Surplus notes issued under this facility are subordinated to policyholder obligations and are subject to regulatory approvals for principal and interest payments.
Total outstanding notes under this facility were $2.7 billion as of both December 31, 2010 and 2009.
During 2007, a subsidiary of Prudential Insurance issued $500 million of 45-year floating rate surplus notes (commonly referred to as AXXX notes) to an unaffiliated financial institution for the purpose of financing certain regulatory reserves required to be held by subsidiary life insurers in connection with the intercompany reinsurance of certain universal life insurance policies.
Surplus notes issued under this facility are subordinated to policyholder obligations and are subject to regulatory approvals for principal and interest payments.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) The table below presents net unrealized gains (losses) on investments by asset class at December 31:
## Table 3 ##
(1) See Note 21 for more information on cash flow hedges.
(2) Includes $249 million of net unrealized losses on held to maturity securities that were transferred from available for sale in 2010.
Also includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.
” Duration of Gross Unrealized Loss Positions for Fixed Maturities The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities have been in a continuous unrealized loss position, at December 31:
## Table 4 ##
(1) Includes $590 million of fair value and $68 million of gross unrealized losses at December 31, 2010 on securities classified as held to maturity, a portion of which are not reflected in accumulated other comprehensive income.
## Table 5 ##
(1) Includes reclassifications to conform to current period presentation.
(2) Includes $1,216 million of fair value and $133 million of gross unrealized losses at December 31, 2009 on securities classified as held to maturity, a portion of which are not reflected in accumulated other comprehensive income.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 10.
POLICYHOLDERS’ LIABILITIES (continued) Future policy benefits for individual participating traditional life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture interest rates which range from 2.5% to 7.5%.
Participating insurance represented 12% and 13% of domestic individual life insurance in force at December 31, 2010 and 2009, respectively, and 81%, 83% and 85% of domestic individual life insurance premiums for 2010, 2009 and 2008, respectively.
Future policy benefits for individual non-participating traditional life insurance policies, group and individual long-term care policies and individual health insurance policies are generally equal to the aggregate of (1) the present value of future benefit payments and related expenses, less the present value of future net premiums, and (2) any premium deficiency reserves.
Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, and in certain instances, industry experience, when the basis of the reserve is established.
Interest rates used in the determination of the present values range from 1.0% to 9.5%; less than 1% of the reserves are based on an interest rate in excess of 8%.
Future policy benefits for individual and group annuities and supplementary contracts are generally equal to the aggregate of (1) the present value of expected future payments, and (2) any premium deficiency reserves.
Assumptions as to mortality are based on the Company’s experience, and in certain instances, industry experience, when the basis of the reserve is established.
The interest rates used in the determination of the present values range from 1.0% to 14.8%; less than 1% of the reserves are based on an interest rate in excess of 8%.
Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company’s experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves.
The interest rates used in the determination of the present values range from 0.2% to 6.2%.
Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses and to recover any unamortized policy acquisition costs.
Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration, traditional, and non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; and for certain individual health policies.
Liabilities of $2,001 million and $1,649 million as of December 31, 2010 and 2009, respectively, are included in “Future policy benefits” with respect to these deficiencies, of which $926 million and $490 million as of December 31, 2010 and 2009, respectively, relate to net unrealized gains on securities classified as available for sale.
The Company’s liability for future policy benefits is also inclusive of liabilities for guarantee benefits related to certain nontraditional long-duration life and annuity contracts, which are discussed more fully in Note 11 and are primarily reflected in other contract liabilities in the table above.
Unpaid claims and claim adjustment expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet dates related to group disability products.
Unpaid claim liabilities are discounted using interest rates ranging from 0% to 6.4%.
Policyholders’ Account Balances Policyholders’ account balances at December 31, are as follows:
## Table 6 ##
Policyholders’ account balances represent an accumulation of account deposits plus credited interest less withdrawals, expenses and mortality charges, if applicable.
These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities.
Included in “Funding agreements” at December 31, 2010 and 2009, are $3,592 million and $4,996 million, respectively, related to the Company’s FANIP product which is carried at amortized cost, adjusted for the effective portion of changes in fair value of qualifying derivative financial instruments.
For additional details on the FANIP product see Note 5.
The interest rates associated with such notes range from 0.4% to 5.6%.
Interest crediting rates range from 0% to 12.0% for interest-sensitive life contracts and from 0% to 13.4% for contracts other than interest-sensitive life.
Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%.
The increase in account values that included an automatic rebalancing element in 2010 compared to the prior years, reflects sales of our latest product offerings which include this feature, as well as the impact on account values of overall favorable equity markets since the prior periods.
As of December 31, 2010, approximately 76% of variable annuity account values with living benefit features included an automatic rebalancing element in the product design, compared to 67% and 53% as of December 31, 2009 and 2008, respectively.
Favorable market conditions for the year ended December 31, 2010 drove the decrease in total net amount at risk compared to the prior years.
As of December 31, 2010, approximately 40% of the net amount at risk associated with variable annuity account values with living benefit features included an automatic rebalancing element in the product design, compared to 28% as of December 31, 2009 and 21% as of December 31, 2008.
Our guaranteed minimum death benefits guarantee a minimum return on the contract value or an enhanced value, if applicable, to be used solely for purposes of determining benefits payable in the event of death.
All of the $75.1 billion, $52.5 billion and $33.1 billion of variable annuity account values with living benefit features as of December 31, 2010, 2009 and 2008, respectively, also contain guaranteed minimum death benefits.
An additional $24.0 billion, $24.4 billion and $23.3 billion of variable annuity account values, respectively, contain guaranteed minimum death benefits, but no living benefit features.
Certain account values with guaranteed minimum death benefits are affected by an automatic rebalancing element because the contractholder selected a living benefit feature which includes an automatic rebalancing element.
The following table sets forth the account values of our variable annuities with guaranteed minimum death benefits and the net amount at risk of the guaranteed minimum death benefits split between those that are affected by an automatic rebalancing element and those that are not, as of the dates indicated.

<table><tr><td></td><td>December 31,</td></tr><tr><td>(in thousands)</td><td>2017</td><td>2016</td></tr><tr><td>Class A common stock authorized</td><td>1,000,000</td><td>1,000,000</td></tr><tr><td>Class A common stock issued and outstanding</td><td>339,235</td><td>338,240</td></tr><tr><td>Class B-1 common stock authorized, issued and outstanding</td><td>0.6</td><td>0.6</td></tr><tr><td>Class B-2 common stock authorized, issued and outstanding</td><td>0.8</td><td>0.8</td></tr><tr><td>Class B-3 common stock authorized, issued and outstanding</td><td>1.3</td><td>1.3</td></tr><tr><td>Class B-4 common stock authorized, issued and outstanding</td><td>0.4</td><td>0.4</td></tr></table>
<table><tr><td></td><td> 2010</td><td> 2009</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td> General obligations:</td><td></td><td></td></tr><tr><td>Capital debt-1</td><td>$8,763</td><td>$8,453</td></tr><tr><td>Investment-related</td><td>9,569</td><td>9,245</td></tr><tr><td>Securities business-related</td><td>2,230</td><td>2,298</td></tr><tr><td>Specified other businesses</td><td>3,323</td><td>1,984</td></tr><tr><td>Total general obligations</td><td>23,885</td><td>21,980</td></tr><tr><td>Limited and non-recourse debt-2</td><td>1,750</td><td>2,179</td></tr><tr><td> Total borrowings</td><td>$25,635</td><td>$24,159</td></tr><tr><td>Short-term debt</td><td>$1,982</td><td>$3,122</td></tr><tr><td>Long-term debt</td><td>23,653</td><td>21,037</td></tr><tr><td> Total borrowings</td><td>$25,635</td><td>$24,159</td></tr><tr><td>Borrowings of Financial Services Businesses</td><td>$23,885</td><td>$22,409</td></tr><tr><td>Borrowings of Closed Block Business</td><td>1,750</td><td>1,750</td></tr><tr><td> Total borrowings</td><td>$25,635</td><td>$24,159</td></tr></table>
<table><tr><td> Calendar Year:</td><td> Long-term Debt  (in millions)</td></tr><tr><td>2012</td><td>$961</td></tr><tr><td>2013</td><td>1,844</td></tr><tr><td>2014</td><td>1,659</td></tr><tr><td>2015</td><td>3,160</td></tr><tr><td>2016 and thereafter</td><td>16,029</td></tr><tr><td> Total</td><td>$23,653</td></tr></table>
<table><tr><td></td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Fixed maturity securities on which an OTTI loss has been recognized</td><td>$-849</td><td>$-1,229</td><td>$0</td></tr><tr><td>Fixed maturity securities, available for sale—all other</td><td>8,078</td><td>2,203</td><td>-10,635</td></tr><tr><td>Equity securities, available for sale</td><td>1,272</td><td>789</td><td>-1,223</td></tr><tr><td>Derivatives designated as cash flow hedges-1</td><td>-262</td><td>-317</td><td>-227</td></tr><tr><td>Other investments-2</td><td>173</td><td>210</td><td>192</td></tr><tr><td>Net unrealized gains (losses) on investments</td><td>$8,412</td><td>$1,656</td><td>$-11,893</td></tr></table>
<table><tr><td></td><td colspan="6"> 2010</td></tr><tr><td></td><td colspan="2"> Less than twelve months</td><td colspan="2"> Twelve months or more</td><td colspan="2"> Total</td></tr><tr><td></td><td> Fair Value</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Gross Unrealized Losses</td></tr><tr><td></td><td colspan="6"> (in millions)</td></tr><tr><td> Fixed maturities-1</td><td></td><td colspan="5"></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$3,677</td><td>$207</td><td>$422</td><td>$88</td><td>$4,099</td><td>$295</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>1,273</td><td>60</td><td>53</td><td>6</td><td>1,326</td><td>66</td></tr><tr><td>Foreign government bonds</td><td>2,599</td><td>76</td><td>125</td><td>19</td><td>2,724</td><td>95</td></tr><tr><td>Corporate securities</td><td>12,385</td><td>460</td><td>9,982</td><td>1,596</td><td>22,367</td><td>2,056</td></tr><tr><td>Commercial mortgage-backed securities</td><td>552</td><td>9</td><td>350</td><td>60</td><td>902</td><td>69</td></tr><tr><td>Asset-backed securities</td><td>1,365</td><td>16</td><td>5,499</td><td>1,667</td><td>6,864</td><td>1,683</td></tr><tr><td>Residential mortgage-backed securities</td><td>897</td><td>17</td><td>447</td><td>55</td><td>1,344</td><td>72</td></tr><tr><td>Total</td><td>$22,748</td><td>$845</td><td>$16,878</td><td>$3,491</td><td>$39,626</td><td>$4,336</td></tr></table>
<table><tr><td></td><td colspan="6"> 2009</td></tr><tr><td></td><td colspan="2"> Less than twelve months</td><td colspan="2"> Twelve months or more</td><td colspan="2"> Total</td></tr><tr><td></td><td> Fair Value</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Gross Unrealized Losses</td></tr><tr><td></td><td colspan="6"> (in millions)</td></tr><tr><td> Fixed maturities-2</td><td></td><td colspan="5"></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$4,058</td><td>$259</td><td>$475</td><td>$111</td><td>$4,533</td><td>$370</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>936</td><td>42</td><td>7</td><td>0</td><td>943</td><td>42</td></tr><tr><td>Foreign government bonds-1</td><td>5,251</td><td>101</td><td>515</td><td>42</td><td>5,766</td><td>143</td></tr><tr><td>Corporate securities-1</td><td>10,164</td><td>346</td><td>17,397</td><td>2,519</td><td>27,561</td><td>2,865</td></tr><tr><td>Commercial mortgage-backed securities</td><td>1,471</td><td>40</td><td>3,216</td><td>180</td><td>4,687</td><td>220</td></tr><tr><td>Asset-backed securities</td><td>1,619</td><td>565</td><td>6,128</td><td>1,942</td><td>7,747</td><td>2,507</td></tr><tr><td>Residential mortgage-backed securities</td><td>1,567</td><td>21</td><td>1,150</td><td>114</td><td>2,717</td><td>135</td></tr><tr><td>Total</td><td>$25,066</td><td>$1,374</td><td>$28,888</td><td>$4,908</td><td>$53,954</td><td>$6,282</td></tr></table>
<table><tr><td></td><td> 2010</td><td> 2009</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td>Individual annuities</td><td>$24,387</td><td>$22,876</td></tr><tr><td>Group annuities</td><td>23,808</td><td>22,598</td></tr><tr><td>Guaranteed investment contracts and guaranteed interest accounts</td><td>17,454</td><td>17,301</td></tr><tr><td>Funding agreements</td><td>5,162</td><td>6,581</td></tr><tr><td>Interest-sensitive life contracts</td><td>18,065</td><td>15,968</td></tr><tr><td>Dividend accumulation and other</td><td>17,565</td><td>16,342</td></tr><tr><td>Total policyholders’ account balances</td><td>$106,441</td><td>$101,666</td></tr></table>

Question: What is the sum of the Derivatives designated as cash flow hedges- in the years where Equity securities, available for sale is greater than 1? (in million)