Item 6.
Selected Financial Data The following table sets forth selected financial data for each of the five years in the period ended December 31, 2005 (amounts in millions, except per share amounts).
This financial data should be read together with our consolidated financial statements and related notes, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other financial data appearing elsewhere in this report.
## Table 0 ##
Volume trends improved in the fourth quarter, largely as a result of overall economic improvements, as average daily volume for Next Day Air and Deferred products increased 2.8% and 4.3%, respectively, over 2008 levels.
Ground volume demonstrated an improving trend over the previous quarters despite a 2.9% decline in the fourth quarter compared with 2008.
Revenue Per Piece 2010 compared to 2009 Overall revenue per piece increased for our ground and air products in 2010, largely due to a combination of base price increases and fuel surcharge rate changes, which are discussed further below.
The revenue per piece for our air products also improved as a result of higher average package weights and the overall mix shift from letters to packages.
For both our air and ground products, revenue per piece was negatively affected by a shift in product mix to our less premium services, such as Next Day Air Saver and Ground Basic.
Revenue per piece for our ground and air products was impacted by an increase in base rates that took effect on January 4, 2010.
We increased the base rates 6.9% on UPS Next Day Air, UPS 2nd Day Air, and UPS 3 Day Select, and 4.9% on UPS Ground.
Other pricing changes included an increase in the residential surcharge, and an increase in the delivery area surcharge on both residential and commercial services to certain ZIP codes.
These rate changes are customary and occur on an annual basis.2009 compared to 2008 Revenue per piece for our air products was negatively affected in 2009 by a decline in the fuel surcharge rate for air products.
Additionally, the revenue per piece decline for our air products was impacted by lower average package weights and a mix shift toward lower yielding products, reflecting the economic recession in the United States.
The decline in revenue per piece for our ground products was primarily due to a decrease in the fuel surcharge rate, but was also impacted by lower average package weights.
The factors decreasing revenue per piece for our ground and air products were partially offset by an increase in base rates that took effect on January 5, 2009.
We increased the base rates 6.9% on UPS Next Day Air, UPS 2nd Day Air, and UPS 3 Day Select, and 5.9% on UPS Ground.
Other pricing changes included an increase in the residential surcharge, and an increase in the delivery area surcharge on both residential and commercial services to certain ZIP codes.
The trend towards lower package weights began to stabilize in the fourth quarter, however product mix within our air and ground services continued to adversely impact revenue per piece, as the lower-yielding products within those categories represented a larger share of our overall package volume.
Fuel Surcharges UPS applies a fuel surcharge on our domestic air and ground services.
The air fuel surcharge is based on the U. S.  Energy Department’s Gulf Coast spot price for a gallon of kerosene-type jet fuel, while the ground fuel surcharge is based on the U. S.  Energy Department’s On-Highway Diesel Fuel Price.
Based on published rates, the average fuel surcharge for domestic air and ground products was as follows:
## Table 1 ##
On January 4, 2010 and January 5, 2009, we modified the fuel surcharge on air services by reducing the index used to determine the fuel surcharge by 2% in each of the two years.
The 2010 increase and 2009 decrease in the air and ground fuel surcharges are due to the significant variations in jet and diesel fuel prices (in addition to the reduction in the index on the air surcharge).
Total domestic fuel surcharge revenue, net of the impact of hedging, increased by $592 million in 2010, primarily due to the higher fuel surcharge rates described above, as
Shareowner Return Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates such information by reference into such filing.
The following graph shows a five year comparison of cumulative total shareowners’ returns for our class B common stock, the Standard & Poor’s 500 Index and the Dow Jones Transportation Average.
The comparison of the total cumulative return on investment, which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods, assumes that $100 was invested on December 31, 2011 in the Standard & Poor’s 500 Index, the Dow Jones Transportation Average and our class B common stock.
## Table 2 ##
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 5.
VARIABLE INTEREST ENTITIES (continued) Consolidated Variable Interest Entities for which the Company is not the Sponsor The Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but over which the Company does not exercise control and is not the sponsor.
Included among these structured investments are structured investments issued by a VIE that manages yen-denominated investments coupled with cross-currency coupon swap agreements thereby creating synthetic dual currency investments.
The Company’s position in the capital structure and/or relative size indicates that the Company is the primary beneficiary.
The Company has not provided material financial or other support that was not contractually required to these VIEs.
The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs for which the Company is not the sponsor are reported.
These liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company.
The creditors of each consolidated VIE have recourse only to the assets of that VIE.
As reflected in the table below, total assets of consolidated VIEs for which the Company is not a sponsor decreased from December 31, 2008 to December 31, 2009, reflecting the deconsolidation of a VIE that manages investments in the European market.
The assets held by the VIE were distributed to the Company during March 2009.
## Table 3 ##
In addition, not reflected in the table above, the Company has created a trust that is a VIE, to facilitate Prudential Insurance’s Funding Agreement Notes Issuance Program (“FANIP”).
The trust issues medium-term notes secured by funding agreements issued to the trust by Prudential Insurance with the proceeds of such notes.
The trust is the beneficiary of an indemnity agreement with the Company that provides that the Company is responsible for costs related to the notes issued with limited exception.
As a result, the Company has determined that it is the primary beneficiary of the trust, which is therefore consolidated.
The funding agreements represent an intercompany transaction that is eliminated upon consolidation.
However, in recognition of the security interest in such funding agreements, the trust’s medium-term note liability of $4,927 million and $7,130 million at December 31, 2009 and 2008, respectively, is classified within “Policyholders’ account balances.
” Creditors of the trust have recourse to Prudential Insurance if the trust fails to make contractual payments on the medium-term notes.
The Company has not provided material financial or other support that was not contractually required to the trust.
Significant Variable Interests in Unconsolidated Variable Interest Entities for which the Company is not the Sponsor In addition, in the normal course of its activities, the Company will invest in structured investments including VIEs for which it is not the sponsor.
These structured investments typically invest in fixed income investments and are managed by third parties and include assetbacked securities, commercial mortgage-backed securities and residential mortgage-backed securities.
The Company’s maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment.
The Company has not provided material financial or other support that was not contractually required to these structures.
The Company has determined that it is not the primary beneficiary of these structures due to its relative size and position in the capital structure of these entities.
Included among these structured investments are asset-backed securities issued by VIEs that manage investments in the European market.
In addition to a stated coupon, each investment provides a return based on the VIE’s portfolio of assets and related investment activity.
The market value of these VIEs was approximately $7.5 billion as of December 31, 2009 and these VIEs were financed primarily through the issuance of notes similar to those purchased by the Company.
The Company generally accounts for these investments as available for sale fixed maturities containing embedded derivatives that are bifurcated and marked-to-market through “Realized investment gains (losses), net,” based upon the change in value of the underlying portfolio.
The Company’s variable interest in each of these VIEs represents less than 50% of the only class of variable interests issued by the VIE.
The Company’s maximum exposure to loss from these interests was $723 million and $1,095 million at December 31, 2009 and 2008, respectively, which includes the fair value of the embedded derivatives
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 19.
INCOME TAXES (continued) Deferred tax assets and liabilities at December 31, resulted from the items listed in the following table:
## Table 4 ##
The application of U. S.  GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized.
Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance.
In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused.
Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized.
A valuation allowance has been recorded primarily related to tax benefits associated with state and local and foreign deferred tax assets.
The valuation allowance as of December 31, 2009 and 2008, respectively, includes $178 million and $172 million recorded in connection with state and local deferred tax assets and $94 million and $152 million recorded in connection with foreign deferred tax assets.
Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of the deferred tax asset that is realizable.
At December 31, 2009 and 2008, respectively, the Company had federal net operating and capital loss carryforwards of $737 million and $1,094 million, which expire between 2013 and 2030.
At December 31, 2009 and 2008, respectively, the Company had state net operating and capital loss carryforwards for tax purposes approximating $2,408 million and $1,868 million, which expire between 2010 and 2030.
At December 31, 2009 and 2008, respectively, the Company had foreign operating loss carryforwards for tax purposes approximating $528 million and $547 million, $486 million of which expires between 2014 and 2016 and $42 million of which have an unlimited carryforward.
The Company does not provide U. S.  income taxes on unremitted foreign earnings of its non-U.
S.  operations, other than its Japanese operations and certain German, Taiwan, United Kingdom, and Korean investment management subsidiaries.
During 2007, the Company sold its investment in its German operating joint ventures Oppenheim Pramerica Fonds Trust GmbH and Oppenheim Pramerica Asset Management S. a. r. l.  Accordingly, the earnings were no longer considered permanently reinvested and the Company recognized an income tax expense of $9 million related to those earnings.
In addition, in 2007, the Company determined that the earnings from certain of its United Kingdom investment management subsidiaries would be repatriated to the U. S.  Accordingly, earnings from those United Kingdom investment management subsidiaries were no longer considered permanently reinvested.
An income tax benefit of $23 million associated with the assumed repatriation of those earnings was recognized in discontinued operations in 2007.
During 2008, the Company made no changes with respect to its repatriation assumptions.
During 2009, the Company sold its investment in its Mexican subsidiaries Prudential Financial Operadora de Sociedades de Inversion S. A.  de C. V. , Prudential Bank, S. A.  Institucion de Banca, and Prudential Consultoria S de RL de C. V.  Accordingly, the earnings were no longer considered permanently reinvested and the Company recognized an income tax expense of $6 million related to the sale in “Income from discontinued operations, net of taxes” in 2009.
In addition, in 2009, the Company determined that the earnings from certain of its Korean investment management subsidiaries would be repatriated to the U. S.  Accordingly, earnings from those Korean investment management subsidiaries were no longer considered permanently reinvested and the Company recognized an income tax expense of $66 million associated with the assumed repatriation of those earnings in 2009.
The Company had undistributed earnings of foreign subsidiaries, where it assumes permanent reinvestment, of $1,710 million at December 2009, $1,723 million at December 31, 2008 and $1,516 million at December 31, 2007, for which U. S.  deferred taxes have not been provided.
Determining the tax liability that would arise if these earnings were remitted is not practicable.
result of the expiration of the statute of limitations for the 2002 and 2003 tax years.
In addition, current year income taxes include the benefit from a revision of the estimated income taxes for 2008, based upon the filing of the 2008 federal income tax return in the third quarter.
The 2008 income tax benefit of $487 million reflects the benefit of the dividends received deduction as well as the impact of a lower level of earnings.
For additional information regarding income taxes, see Note 19 to the Consolidated Financial Statements.
Discontinued Operations Included within net income are the results of businesses which are reflected as discontinued operations under U. S.  GAAP.
Income from discontinued operations, net of taxes, was $19 million, $18 million and $20 million for the years ended December 31, 2009, 2008 and 2007, respectively.
For additional information regarding discontinued operations see Note 3 to the Consolidated Financial Statements.
Divested Businesses Our income from continuing operations includes results from several businesses that have been or will be sold or exited that do not qualify for “discontinued operations” accounting treatment under U. S.  GAAP.
The results of these divested businesses are reflected in our Corporate and Other operations, but excluded from adjusted operating income.
A summary of the results of these divested businesses that have been excluded from adjusted operating income is as follows for the periods indicated:
## Table 5 ##
(1) Primarily includes Property and Casualty Insurance, Prudential Securities Capital Markets and exchange shares previously held by Prudential Equity Group.
Financial Advisory In 2008, we classified our Financial Advisory business as a divested business, reflecting our intention to exit this business.
This business consists of our former investment in the Wachovia Securities joint venture, in addition to expenses relating to obligations and costs we retained in connection with the businesses we contributed to the joint venture, primarily for litigation and regulatory matters.
On December 31, 2009, we completed the sale of our minority joint venture interest in Wachovia Securities, which includes Wells Fargo Advisors, to Wells Fargo.
At the closing, we received $4.5 billion in cash as the purchase price of our joint venture interest and de-recognized the carrying value related to our investment in the joint venture.
Results for 2009 include the associated pre-tax gain on the sale of $2.247 billion, which is reflected in “Equity in earnings of operating joint ventures, net of taxes” in our Consolidated Statements of Operations.
Results for 2009 also include certain one-time costs related to the sale of the joint venture interest of $104 million, for pre-tax compensation costs and costs related to increased contributions to our charitable foundation.
For more information on our former investment in the Wachovia Securities joint venture, including the “lookback” option, see Note 7 to the Consolidated Financial Statements, as well as “—Liquidity and Capital Resources—Liquidity and Capital Resources of Subsidiaries—Domestic Insurance Subsidiaries— Prudential Securities Group.
” On August 15, 2008, Wachovia announced that it had reached an agreement in principle for a global settlement of investigations concerning the underwriting, sale and subsequent auction of certain auction rate securities by subsidiaries of Wachovia Securities and had recorded an increase to legal reserves.
Our recorded share of pre-tax earnings from the joint venture for the year ended December 31, 2008 included $355 million related to the impact of this item on our share of the equity earnings of the joint venture.
Commercial Mortgage Securitization Operations In 2008, we classified our commercial mortgage securitization operations as a divested business, reflecting our decision to exit this business.
These operations, which involved the origination and purchase of commercial mortgage loans that we in turn would aggregate and sell into commercial mortgage-backed securitization transactions, together with related hedging activities, were previously reported within the Asset Management segment.
We retained and continue the remainder of our commercial mortgage origination, servicing and other commercial mortgage related activities, which remain a part of our Asset Management segment.
As of December 31, 2009, our commercial mortgage securitization operations held a loan with a principal balance of $14 million, whose fair value continues to be subject to changes in credit spreads.
The losses in 2008 and 2009 primarily reflect net realized and unrealized losses on the loans, bonds and hedges from instability in the commercial mortgage-backed securities market.
We have substantial insurance operations in Japan, with 36% and 35% of our Financial Services Businesses’ general account investments relating to our Japanese insurance operations as of December 31, 2009 and 2008, respectively.
The following table sets forth the composition of the investments of our Japanese insurance operations’ general account as of the dates indicated.
## Table 6 ##
(1) Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives, and other miscellaneous investments.
(2) Excludes assets classified as “Separate accounts assets” on our balance sheet.
As of December 31, 2009 the average duration of our general account investment portfolio related to our Japanese insurance operations, including the impact of derivatives, is approximately 11 years.
The increase in general account investments related to our Japanese insurance operations in 2009 is primarily attributable to a net increase in fair value driven by credit spread tightening, the impact of changes in foreign currency exchange rates, portfolio growth as a result of business inflows, and the acquisition of Yamato Life.
For additional information regarding our acquisition of Yamato Life see Note 3 to the Consolidated Financial Statements.
Our Japanese insurance operations use the yen as their functional currency, as it is the currency in which they conduct the majority of their operations.
Although the majority of the Japanese general account is invested in yen denominated investments, our Japanese insurance operations also hold significant investments denominated in U. S.  dollars.
As of December 31, 2009, our Japanese insurance operations had $14.4 billion, at fair value, of investments denominated in U. S.  dollars, including $0.5 billion that were hedged to yen through third party derivative contracts and $7.4 billion that support liabilities denominated in U. S.  dollars.
As of December 31, 2008, our Japanese insurance operations had $13.5 billion, at fair value, of investments denominated in U. S.  dollars, including $1.1 billion that were hedged to yen through third party derivative contracts and $6.0 billion that support liabilities denominated in U. S.  dollars.
For additional information regarding U. S.  dollar investments held in our Japanese insurance operations see, “—Results of Operations for Financial Services Businesses by Segment—International Insurance and Investments Division.

<table><tr><td></td><td colspan="5">Years Ended December 31,</td></tr><tr><td></td><td>2005</td><td>2004</td><td>2003</td><td>2002</td><td>2001</td></tr><tr><td> Selected Income Statement Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Domestic Package</td><td>$28,610</td><td>$26,960</td><td>$25,362</td><td>$24,280</td><td>$24,391</td></tr><tr><td>International Package</td><td>7,977</td><td>6,809</td><td>5,609</td><td>4,720</td><td>4,280</td></tr><tr><td>Supply Chain and Freight</td><td>5,994</td><td>2,813</td><td>2,514</td><td>2,272</td><td>1,650</td></tr><tr><td>Total revenue</td><td>42,581</td><td>36,582</td><td>33,485</td><td>31,272</td><td>30,321</td></tr><tr><td>Operating expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Compensation and benefits</td><td>22,517</td><td>20,823</td><td>19,251</td><td>17,849</td><td>17,311</td></tr><tr><td>Other</td><td>13,921</td><td>10,770</td><td>9,789</td><td>9,327</td><td>9,048</td></tr><tr><td>Total operating expenses</td><td>36,438</td><td>31,593</td><td>29,040</td><td>27,176</td><td>26,359</td></tr><tr><td>Operating profit (loss):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Domestic Package</td><td>4,493</td><td>3,702</td><td>3,657</td><td>3,925</td><td>3,969</td></tr><tr><td>International Package</td><td>1,494</td><td>1,149</td><td>732</td><td>338</td><td>139</td></tr><tr><td>Supply Chain and Freight</td><td>156</td><td>138</td><td>56</td><td>-167</td><td>-146</td></tr><tr><td>Total operating profit</td><td>6,143</td><td>4,989</td><td>4,445</td><td>4,096</td><td>3,962</td></tr><tr><td>Other income (expense):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Investment income</td><td>104</td><td>82</td><td>18</td><td>63</td><td>159</td></tr><tr><td>Interest expense</td><td>-172</td><td>-149</td><td>-121</td><td>-173</td><td>-184</td></tr><tr><td>Gain on redemption of long-term debt</td><td>—</td><td>—</td><td>28</td><td>—</td><td>—</td></tr><tr><td>Reversal of tax assessment</td><td>—</td><td>—</td><td>—</td><td>1,023</td><td>—</td></tr><tr><td>Income before income taxes</td><td>6,075</td><td>4,922</td><td>4,370</td><td>5,009</td><td>3,937</td></tr><tr><td>Income taxes</td><td>-2,205</td><td>-1,589</td><td>-1,472</td><td>-1,755</td><td>-1,512</td></tr><tr><td>Cumulative effect of changes in accounting principles</td><td>—</td><td>—</td><td>—</td><td>-72</td><td>-26</td></tr><tr><td>Net income</td><td>$3,870</td><td>$3,333</td><td>$2,898</td><td>$3,182</td><td>$2,399</td></tr><tr><td>Per share amounts:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings per share</td><td>$3.48</td><td>$2.95</td><td>$2.57</td><td>$2.84</td><td>$2.13</td></tr><tr><td>Diluted earnings per share</td><td>$3.47</td><td>$2.93</td><td>$2.55</td><td>$2.81</td><td>$2.10</td></tr><tr><td>Dividends declared per share</td><td>$1.32</td><td>$1.12</td><td>$0.92</td><td>$0.76</td><td>$0.76</td></tr><tr><td>Weighted average shares outstanding:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>1,113</td><td>1,129</td><td>1,128</td><td>1,120</td><td>1,126</td></tr><tr><td>Diluted</td><td>1,116</td><td>1,137</td><td>1,138</td><td>1,134</td><td>1,144</td></tr><tr><td></td><td colspan="5">As of December 31,</td></tr><tr><td></td><td>2005</td><td>2004</td><td>2003</td><td>2002</td><td>2001</td></tr><tr><td> Selected Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and marketable securities</td><td>$3,041</td><td>$5,197</td><td>$3,952</td><td>$3,014</td><td>$1,616</td></tr><tr><td>Total assets</td><td>35,222</td><td>33,088</td><td>29,734</td><td>26,868</td><td>24,636</td></tr><tr><td>Long-term debt</td><td>3,159</td><td>3,261</td><td>3,149</td><td>3,495</td><td>4,648</td></tr><tr><td>Shareowners’ equity</td><td>16,884</td><td>16,378</td><td>14,852</td><td>12,455</td><td>10,248</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td><td colspan="2">% Point Change</td></tr><tr><td></td><td>2012</td><td>2011</td><td>2010</td><td>2012 / 2011</td><td>2011 / 2010</td></tr><tr><td>Next Day Air / Deferred</td><td>13.0%</td><td>13.3%</td><td>8.0%</td><td>-0.3%</td><td>5.3%</td></tr><tr><td>Ground</td><td>8.0%</td><td>8.0%</td><td>5.6%</td><td>—%</td><td>2.4%</td></tr></table>
<table><tr><td></td><td>12/31/2011</td><td>12/31/2012</td><td>12/31/2013</td><td>12/31/2014</td><td>12/31/2015</td><td>12/31/2016</td></tr><tr><td>United Parcel Service, Inc.</td><td>$100.00</td><td>$103.84</td><td>$152.16</td><td>$165.35</td><td>$154.61</td><td>$189.72</td></tr><tr><td>Standard & Poor’s 500 Index</td><td>$100.00</td><td>$115.99</td><td>$153.54</td><td>$174.54</td><td>$176.94</td><td>$198.09</td></tr><tr><td>Dow Jones Transportation Average</td><td>$100.00</td><td>$107.49</td><td>$151.97</td><td>$190.07</td><td>$158.22</td><td>$192.80</td></tr></table>
<table><tr><td></td><td colspan="2"> December 31,</td></tr><tr><td></td><td>2009</td><td> 2008</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td>Fixed maturities, available for sale</td><td>$107</td><td>$124</td></tr><tr><td>Fixed maturities, held to maturity</td><td>985</td><td>1,012</td></tr><tr><td>Other trading account assets</td><td>—</td><td>404</td></tr><tr><td>Other long-term investments</td><td>-48</td><td>43</td></tr><tr><td>Cash and cash equivalents</td><td>—</td><td>79</td></tr><tr><td>Accrued investment income</td><td>4</td><td>8</td></tr><tr><td>Other assets</td><td>—</td><td>55</td></tr><tr><td>Total assets of consolidated VIEs</td><td>$1,048</td><td>$1,725</td></tr><tr><td>Total liabilities of consolidated VIEs</td><td>$—</td><td>$61</td></tr></table>
<table><tr><td></td><td>2009</td><td>2008</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Deferred tax assets</td><td></td><td></td></tr><tr><td>Policyholder dividends</td><td>$219</td><td>$583</td></tr><tr><td>Net operating and capital loss carryforwards</td><td>574</td><td>656</td></tr><tr><td>Employee benefits</td><td>579</td><td>322</td></tr><tr><td>Net unrealized investment losses</td><td>—</td><td>4,087</td></tr><tr><td>Insurance reserves</td><td>452</td><td>—</td></tr><tr><td>Other</td><td>224</td><td>—</td></tr><tr><td>Deferred tax assets before valuation allowance</td><td>2,048</td><td>5,648</td></tr><tr><td>Valuation allowance</td><td>-210</td><td>-265</td></tr><tr><td>Deferred tax assets after valuation allowance</td><td>1,838</td><td>5,383</td></tr><tr><td>Deferred tax liabilities</td><td></td><td></td></tr><tr><td>Insurance reserves</td><td>—</td><td>90</td></tr><tr><td>Net unrealized investment gains</td><td>535</td><td>—</td></tr><tr><td>Deferred policy acquisition costs</td><td>3,862</td><td>4,136</td></tr><tr><td>Other</td><td>—</td><td>51</td></tr><tr><td>Deferred tax liabilities</td><td>4,397</td><td>4,277</td></tr><tr><td>Net deferred tax asset (liability)</td><td>$-2,559</td><td>$1,106</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Financial Advisory</td><td>$2,167</td><td>$-351</td><td>$300</td></tr><tr><td>Commercial mortgage securitization operations</td><td>-12</td><td>-158</td><td>-63</td></tr><tr><td>Other-1</td><td>-24</td><td>3</td><td>37</td></tr><tr><td>Total divested businesses excluded from adjusted operating income</td><td>$2,131</td><td>$-506</td><td>$274</td></tr></table>
<table><tr><td></td><td> December 31, 2009</td><td> December 31, 2008</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td>Fixed Maturities:</td><td></td><td></td></tr><tr><td>Public, available for sale, at fair value</td><td>$50,406</td><td>$42,223</td></tr><tr><td>Public, held to maturity, at amortized cost</td><td>4,009</td><td>3,002</td></tr><tr><td>Private, available for sale, at fair value</td><td>2,671</td><td>2,803</td></tr><tr><td>Private, held to maturity, at amortized cost</td><td>1,111</td><td>806</td></tr><tr><td>Trading account assets supporting insurance liabilities, at fair value</td><td>1,236</td><td>1,077</td></tr><tr><td>Other trading account assets, at fair value</td><td>804</td><td>519</td></tr><tr><td>Equity securities, available for sale, at fair value</td><td>1,508</td><td>2,071</td></tr><tr><td>Commercial mortgage and other loans, at book value</td><td>3,675</td><td>3,373</td></tr><tr><td>Policy loans, at outstanding balance</td><td>1,760</td><td>1,547</td></tr><tr><td>Other long-term investments-1</td><td>1,524</td><td>2,143</td></tr><tr><td>Short-term investments</td><td>313</td><td>266</td></tr><tr><td>Total Japanese general account investments-2</td><td>$69,017</td><td>$59,830</td></tr></table>

Question: What is the ratio of all Revenue that are smaller than 10000 to the sum of Revenue, in 2005?