(2) Our union-represented mainline employees are covered by agreements that are not currently amendable.
Joint collective bargaining agreements (JCBAs) have been reached with post-Merger employee groups, except the maintenance, fleet service, stock clerks, maintenance control technicians and maintenance training instructors represented by the TWU-IAM Association who are covered by separate CBAs that become amendable in the third quarter of 2018.
Until those agreements become amendable, negotiations for JCBAs will be conducted outside the traditional RLA bargaining process as described above, and, in the meantime, no self-help will be permissible.
(3) Among our wholly-owned regional subsidiaries, the PSA mechanics and flight attendants have agreements that are now amendable and are engaged in traditional RLA negotiations.
The Envoy passenger service employees are engaged in traditional RLA negotiations for an initial CBA.
The Piedmont fleet and passenger service employees have reached a tentative five-year agreement which is subject to membership ratification.
For more discussion, see Part I, Item 1A.
Risk Factors – “Union disputes, employee strikes and other labor-related disruptions may adversely affect our operations.
” Aircraft Fuel Our operations and financial results are significantly affected by the availability and price of jet fuel, which is our second largest expense.
Based on our 2018 forecasted mainline and regional fuel consumption, we estimate that a one cent per gallon increase in aviation fuel price would increase our 2018 annual fuel expense by $45 million.
The following table shows annual aircraft fuel consumption and costs, including taxes, for our mainline and regional operations for 2017, 2016 and 2015 (gallons and aircraft fuel expense in millions).
## Table 0 ##
As of December 31, 2017, we did not have any fuel hedging contracts outstanding to hedge our fuel consumption.
As such, and assuming we do not enter into any future transactions to hedge our fuel consumption, we will continue to be fully exposed to fluctuations in fuel prices.
Our current policy is not to enter into transactions to hedge our fuel consumption, although we review that policy from time to time based on market conditions and other factors.
Fuel prices have fluctuated substantially over the past several years.
We cannot predict the future availability, price volatility or cost of aircraft fuel.
Natural disasters (including hurricanes or similar events in the U. S.  Southeast and on the Gulf Coast where a significant portion of domestic refining capacity is located), political disruptions or wars involving oil-producing countries, changes in fuel-related governmental policy, the strength of the U. S.  dollar against foreign currencies, changes in access to petroleum product pipelines and terminals, speculation in the energy futures markets, changes in aircraft fuel production capacity, environmental concerns and other unpredictable events may result in fuel supply shortages, distribution challenges, additional fuel price volatility and cost increases in the future.
See Part I, Item 1A.
Risk Factors – “Our business is very dependent on the price and availability of aircraft fuel.
Continued periods of high volatility in fuel costs, increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on our operating results and liquidity.
” Seasonality and Other Factors Due to the greater demand for air travel during the summer months, revenues in the airline industry in the second and third quarters of the year tend to be greater than revenues in the first and fourth quarters of the year.
General economic conditions, fears of terrorism or war, fare initiatives, fluctuations in fuel prices, labor actions, weather, natural disasters, outbreaks of disease and other factors could impact this seasonal pattern.
Therefore, our quarterly results of operations are not necessarily indicative of operating results for the entire year, and historical operating results in a quarterly or annual period are not necessarily indicative of future operating results.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 13.
STOCKHOLDERS’ EQUITY (continued) surplus as of the preceding December 31 ($6,981 million as of December 31, 2007) or its statutory net gain from operations for the twelve month period ending on the preceding December 31, excluding realized investment gains and losses ($1,024 million for the year ended December 31, 2007).
The laws regulating dividends of Prudential Financial’s other insurance subsidiaries domiciled in other states are similar, but not identical, to New Jersey’s.
The laws of foreign countries may also limit the ability of the Company’s insurance and other subsidiaries organized in those countries to pay dividends to Prudential Financial.
The declaration and payment of dividends on the Common Stock depends primarily upon the financial condition, results of operations, cash requirements, future prospects and other factors relating to the Financial Services Businesses.
Furthermore, dividends on the Common Stock are limited to both the amount that is legally available for payment under New Jersey corporate law if the Financial Services Businesses were treated as a separate corporation thereunder and the amount that is legally available for payment under New Jersey corporate law on a consolidated basis after taking into account dividends on the Class B Stock.
The declaration and payment of dividends on the Class B Stock depends upon the financial performance of the Closed Block Business and, as the Closed Block matures, the holders of the Class B Stock will receive the surplus of the Closed Block Business no longer required to support the Closed Block for regulatory purposes.
Dividends on the Class B Stock are payable in an aggregate amount per year at least equal to the lesser of (1) a Target Dividend Amount of $19.25 million or (2) the CB Distributable Cash Flow for such year, which is a measure of the net cash flows of the Closed Block Business.
Notwithstanding this formula, as with any common stock, Prudential Financial retains the flexibility to suspend dividends on the Class B Stock; however, if CB Distributable Cash Flow exists and Prudential Financial chooses not to pay dividends on the Class B Stock in an aggregate amount at least equal to the lesser of the CB Distributable Cash Flow or the Target Dividend Amount for any period, then cash dividends cannot be paid on the Common Stock with respect to such period.
Preferred Stock Prudential Financial adopted a shareholder rights plan (the “rights plan”) under which each outstanding share of Common Stock is coupled with a shareholder right.
The rights plan is not applicable to any Class B Stock.
Each right initially entitles the holder to purchase one one-thousandth of a share of a series of Prudential Financial preferred stock upon payment of the exercise price.
At the time of the demutualization, the Board of Directors of Prudential Financial determined that the initial exercise price per right is $110, subject to adjustment from time to time as provided in the rights plan.
There was no preferred stock outstanding at December 31, 2007 and 2006.
Comprehensive Income The components of comprehensive income for the years ended December 31, are as follows:
## Table 1 ##
(1) Includes cash flow hedges.
See Note 19 for information on cash flow hedges.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 16.
EMPLOYEE BENEFIT PLANS (continued) In addition to the plan assets above, the Company in 2007 established an irrevocable trust, commonly referred to as a “rabbi trust,” for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain non-qualified retirement plans ($686 million benefit obligation at December 31, 2007).
Assets held in the rabbi trust are available to the general creditors of the Company in the event of insolvency or bankruptcy.
The Company may from time to time in its discretion make contributions to the trust to fund accrued benefits payable to participants in one or more of the plans, and, in the case of a change in control of the Company, as defined in the trust agreement, the Company will be required to make contributions to the plans to fund the accrued benefits, vested and unvested, payable on a pretax basis to participants in the plans.
The Company made a discretionary payment of $95 million to the trust during 2007.
As of December 31, 2007, the assets in these trusts had a carrying value of $90 million and are included in “Equity securities.
” The Company also maintains a separate rabbi trust established at the time of the combination of its retail securities brokerage and clearing operations with those of Wachovia for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain non-qualified retirement plans ($77 million and $87 million benefit obligation at December 31, 2007 and 2006, respectively), as well as certain cash-based deferred compensation arrangements.
As of December 31, 2007 and 2006, the assets in the trust had a carrying value of $139 million and $151 million, respectively, and are included in “Other long-term investments.
” Pension benefits for foreign plans comprised 11% and 10% of the ending benefit obligation for 2007 and 2006, respectively.
Foreign pension plans comprised 2% and 2% of the ending fair value of plan assets for 2007 and 2006, respectively.
There are no material foreign postretirement plans.
The projected benefit obligations and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $1,627 million and $220 million, respectively, at September 30, 2007 and $1,563 and $205 million, respectively, at September 30, 2006.
The accumulated benefit obligations and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $1,311 million and $17 million, respectively, at September 30, 2007 and $1,249 million and $7 million, respectively, at September 30, 2006.
In 2007 and 2006, the pension plan purchased annuity contracts from Prudential Insurance for $2 million and $4 million, respectively.
The approximate future annual benefit payment payable by Prudential Insurance for all annuity contracts was $26 million and $24 million as of December 31, 2007 and 2006, respectively.
The benefit obligation for pension benefits increased by $4 million in 2007 related to plan amendments, as a result of the immediate vesting of plan participants due to the Section 420 transfer discussed above and benefits for prior service associated with foreign plans.
The benefit obligation for pension benefits increased by $83 million in 2006 related to plan amendments, due primarily to a cost of living adjustment for retirees as well as the impact of changes as a result of the Pension Protection Act of 2006.
The benefit obligation for other postretirement benefits decreased by $69 million in 2007 related to plan amendments, due primarily to changes in the prescription drug plan design.
The benefit obligation for other postretirement benefits increased by $61 million in 2006 related to plan amendments, primarily a result of the impact of implementing a Retiree Medical Savings Account, which provides an account at retirement that may be used toward the cost of coverage for medical and dental benefits.
The incremental effects of applying SFAS No.158 on individual line items in the Consolidated Statement of Financial Position at December 31, 2006 was as follows:
## Table 2 ##
(4) Ending total account value for the institutional investment products business includes assets of Prudential’s retirement plan of $5.5 billion, $5.3 billion and $6.4 billion as of December 31, 2007, 2006 and 2005, respectively.
(5) Transfers between the Retirement and Asset Management segments, previously presented within Withdrawals and benefits, have been reclassified to Other for all periods presented.
(6) Other includes transfers from (to) the Asset Management segment of $185 million, $(1,475) million, and $(1,186) million for 2007, 2006, and 2005 respectively.
Other also includes $(511) million for 2007 representing a transfer from Institutional Investment Products to Full Service as a result of one client’s change in contract form.
Remaining amounts for all periods presented primarily represent changes in asset balances for externally managed accounts.2007 to 2006 Annual Comparison.
Account values in our full service business amounted to $112.2 billion as of December 31, 2007, an increase of $14.8 billion from December 31, 2006.
The increase in account values was driven primarily by an increase in the market value of customer funds and $7.3 billion of account values acquired from Union Bank of California, N. A.
Net additions (withdrawals) increased $776 million, from net additions of $167 million in 2006 to net additions of $943 million in 2007, reflecting lower plan lapses, partially offset by lower new plan sales.
Net additions in 2006 included three large client sales totaling $2.7 billion, and four large plan terminations totaling $2.7 billion primarily associated with merger and plan consolidation activity.
Account values in our institutional investment products business amounted to $51.6 billion as of December 31, 2007, an increase of $1.3 billion from December 31, 2006, primarily reflecting interest on general account business and an increase in the market value of customer funds, partially offset by net withdrawals of $893 million.
Net additions (withdrawals) decreased $2.0 billion, from net additions of $1.1 billion in 2006 to net withdrawals of $893 million in 2007.
This decrease reflects lower additions driven by lower sales of guaranteed investment products in the institutional markets due to unfavorable market conditions in 2007, as well as higher withdrawals from fee-based account values.2006 to 2005 Annual Comparison.
Account values in our full service business amounted to $97.4 billion as of December 31, 2006, an increase of $9.045 billion from December 31, 2005.
The increase in account values was driven principally by an increase in the market value of customer funds, together with the reinvestment of income.
Net additions (withdrawals) improved $1.079 billion, from net withdrawals of $912 million in 2005 to net additions of $167 million in 2006, primarily reflecting an increase in net plan sales, as an increase in new plan sales was partially offset by an increase in plan lapses.
Partially offsetting this increase were greater deposits in 2005 for existing defined benefit plans, including a significant deposit by a single client.
Account values in our institutional investment products business amounted to $50.3 billion as of December 31, 2006, an increase of $2.189 billion from December 31, 2005, primarily reflecting interest on general account business and an increase in the market value of customer funds.
Net additions (withdrawals) improved $1.394 billion, from net withdrawals of $282 million in 2005 to net additions of $1.112 billion in 2006, reflecting higher sales of guaranteed investment products in the institutional and retail markets.
International Insurance and Investments Division As a U. S. -based company with significant business operations outside the U. S. , we seek to mitigate the risk that future unfavorable foreign currency exchange rate movements will reduce our U. S.  dollar equivalent earnings.
The operations of our International Insurance and International Investments segments are subject to currency fluctuations that can materially affect their U. S.  dollar results from period to period even if results on a local currency basis are relatively constant.
As discussed further below, we enter into forward currency derivative contracts, as well as “dual currency” and “synthetic dual currency” investments, as part of our strategy to effectively fix the currency exchange rates for a portion of our prospective non-U.
S.  dollar denominated earnings streams.
The financial results of our International Insurance segment and International Investments segment, excluding the global commodities group, for all periods presented reflect the impact of an intercompany arrangement with Corporate and Other operations pursuant to which the segments’ non-U.
S.  dollar denominated earnings in all countries are translated at fixed currency exchange rates.
The fixed rates are determined in connection with a currency income hedging program designed to mitigate the risk that unfavorable exchange rate changes will reduce the segments’ U. S.  dollar equivalent earnings.
Pursuant to this program, Corporate and Other operations executes forward currency contracts with third parties to sell the hedged currency in exchange for U. S.  dollars at a specified exchange rate.
The maturities of these contracts correspond with the future periods in which the identified non-U.
S.  dollar denominated earnings are expected to be generated.
This program is primarily associated with the International Insurance segment’s businesses in Japan, Korea and Taiwan and the International Investments segment’s businesses in Korea and Europe.
The intercompany arrangement with Corporate and Other operations increased (decreased) revenues and adjusted operating income of each segment as follows for the periods indicated:
## Table 3 ##
Results of Corporate and Other operations include any differences between the translation adjustments recorded by the segments and the gains or losses recorded from the forward currency contracts.
The consolidated net impact of this program recorded within the Corporate and Other operations was a gain of $4 million, and losses of $1 million and $11 million, for the years ended December 31, 2007, 2006, and 2005, respectively
The following table sets forth our public fixed maturity portfolios by NAIC rating attributable to the Closed Block Business as of the dates indicated.
## Table 4 ##
(1) Includes, as of December 31, 2007 and December 31, 2006, respectively, 14 securities with amortized cost of $45 million (fair value, $47 million) and 6 securities with amortized cost of $19 million (fair value, $19 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.
Private Fixed Maturities—Credit Quality The following table sets forth our private fixed maturity portfolios by NAIC rating attributable to the Financial Services Businesses as of the dates indicated.
## Table 5 ##
(1) Includes, as of December 31, 2007 and December 31, 2006, respectively, 14 securities with amortized cost of $45 million (fair value, $47 million) and 6 securities with amortized cost of $19 million (fair value, $19 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.
Private Fixed Maturities—Credit Quality The following table sets forth our private fixed maturity portfolios by NAIC rating attributable to the Financial Services Businesses as of the dates indicated.

<table><tr><td>Year</td><td>Gallons</td><td>Average Priceper Gallon</td><td>Aircraft FuelExpense</td><td>Percent of TotalOperating Expenses</td></tr><tr><td>2017</td><td>4,352</td><td>$1.73</td><td>$7,510</td><td>19.7%</td></tr><tr><td>2016</td><td>4,347</td><td>1.42</td><td>6,180</td><td>17.7%</td></tr><tr><td>2015</td><td>4,323</td><td>1.72</td><td>7,456</td><td>21.4%</td></tr></table>
<table><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Net income</td><td>$3,704</td><td>$3,428</td><td>$3,540</td></tr><tr><td>Other comprehensive income (loss), net of tax:</td><td></td><td></td><td></td></tr><tr><td>Change in foreign currency translation adjustments</td><td>190</td><td>197</td><td>-401</td></tr><tr><td>Change in net unrealized investments gains (losses)(1)</td><td>-771</td><td>-405</td><td>-445</td></tr><tr><td>Additional minimum pension liability adjustment</td><td>—</td><td>49</td><td>-111</td></tr><tr><td>Change in pension and postretirement unrecognized net periodic benefit (cost)</td><td>509</td><td>—</td><td>—</td></tr><tr><td>Other comprehensive loss, net of tax expense (benefit) of $11, ($264), ($371)</td><td>-72</td><td>-159</td><td>-957</td></tr><tr><td>Comprehensive income</td><td>$3,632</td><td>$3,269</td><td>$2,583</td></tr></table>
<table><tr><td></td><td> Pre-SFAS No. 158</td><td>Incremental effect of adopting SFAS No. 158</td><td> Post-SFAS No. 158</td></tr><tr><td></td><td colspan="3"> (in millions)</td></tr><tr><td>Other assets</td><td>$18,321</td><td>$-487</td><td>$17,834</td></tr><tr><td>Total assets</td><td>454,753</td><td>-487</td><td>454,266</td></tr><tr><td>Income taxes</td><td>$3,518</td><td>$-410</td><td>$3,108</td></tr><tr><td>Other liabilities</td><td>14,476</td><td>479</td><td>14,955</td></tr><tr><td>Total liabilities</td><td>431,305</td><td>69</td><td>431,374</td></tr><tr><td>Accumulated other comprehensive income (loss)</td><td>$1,075</td><td>$-556</td><td>$519</td></tr><tr><td>Total stockholders’ equity</td><td>23,448</td><td>-556</td><td>22,892</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Impact on revenues and adjusted operating income:</td><td></td><td></td><td></td></tr><tr><td>International Insurance</td><td>$88</td><td>$50</td><td>$-38</td></tr><tr><td>International Investments</td><td>-14</td><td>-7</td><td>-6</td></tr><tr><td>Total International Insurance and Investments Division</td><td>$74</td><td>$43</td><td>$-44</td></tr></table>
<table><tr><td> -1</td><td></td><td colspan="4"> December 31, 2007</td><td colspan="4"> December 31, 2006</td></tr><tr><td> NAIC Designation</td><td> Rating Agency Equivalent</td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair Value</td></tr><tr><td></td><td></td><td colspan="8"> (in millions)</td></tr><tr><td>1</td><td>Aaa, Aa, A</td><td>$27,437</td><td>$618</td><td>$578</td><td>$27,477</td><td>$27,181</td><td>$582</td><td>$161</td><td>$27,602</td></tr><tr><td>2</td><td>Baa</td><td>5,915</td><td>199</td><td>101</td><td>6,013</td><td>6,332</td><td>264</td><td>69</td><td>6,527</td></tr><tr><td></td><td>Subtotal Investment Grade</td><td>33,352</td><td>817</td><td>679</td><td>33,490</td><td>33,513</td><td>846</td><td>230</td><td>34,129</td></tr><tr><td>3</td><td>Ba</td><td>1,992</td><td>46</td><td>61</td><td>1,977</td><td>2,367</td><td>103</td><td>17</td><td>2,453</td></tr><tr><td>4</td><td>B</td><td>1,588</td><td>23</td><td>58</td><td>1,553</td><td>2,003</td><td>63</td><td>20</td><td>2,046</td></tr><tr><td>5</td><td>C and lower</td><td>131</td><td>5</td><td>8</td><td>128</td><td>105</td><td>3</td><td>3</td><td>105</td></tr><tr><td>6</td><td>In or near default</td><td>19</td><td>1</td><td>—</td><td>20</td><td>17</td><td>3</td><td>1</td><td>19</td></tr><tr><td></td><td>Subtotal Below Investment Grade</td><td>3,730</td><td>75</td><td>127</td><td>3,678</td><td>4,492</td><td>172</td><td>41</td><td>4,623</td></tr><tr><td></td><td>Total Public Fixed Maturities</td><td>$37,082</td><td>$892</td><td>$806</td><td>$37,168</td><td>$38,005</td><td>$1,018</td><td>$271</td><td>$38,752</td></tr></table>
<table><tr><td> -1 (2)</td><td></td><td colspan="4"> December 31, 2007</td><td colspan="4"> December 31, 2006</td></tr><tr><td> NAIC Designation</td><td> Rating Agency Equivalent</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td></tr><tr><td></td><td></td><td colspan="8"> (in millions)</td></tr><tr><td>1</td><td>Aaa, Aa, A</td><td>$7,139</td><td>$230</td><td>$84</td><td>$7,285</td><td>$6,214</td><td>$248</td><td>$49</td><td>$6,413</td></tr><tr><td>2</td><td>Baa</td><td>10,595</td><td>344</td><td>118</td><td>10,821</td><td>9,463</td><td>377</td><td>73</td><td>9,767</td></tr><tr><td></td><td>Subtotal Investment Grade</td><td>17,734</td><td>574</td><td>202</td><td>18,106</td><td>15,677</td><td>625</td><td>122</td><td>16,180</td></tr><tr><td>3</td><td>Ba</td><td>1,637</td><td>49</td><td>26</td><td>1,660</td><td>1,422</td><td>50</td><td>11</td><td>1,461</td></tr><tr><td>4</td><td>B</td><td>738</td><td>6</td><td>12</td><td>732</td><td>645</td><td>12</td><td>7</td><td>650</td></tr><tr><td>5</td><td>C and lower</td><td>319</td><td>8</td><td>4</td><td>323</td><td>321</td><td>18</td><td>4</td><td>335</td></tr><tr><td>6</td><td>In or near default</td><td>147</td><td>23</td><td>—</td><td>170</td><td>139</td><td>11</td><td>1</td><td>149</td></tr><tr><td></td><td>Subtotal Below Investment Grade</td><td>2,841</td><td>86</td><td>42</td><td>2,885</td><td>2,527</td><td>91</td><td>23</td><td>2,595</td></tr><tr><td></td><td>Total Private Fixed Maturities</td><td>$20,575</td><td>$660</td><td>$244</td><td>$20,991</td><td>$18,204</td><td>$716</td><td>$145</td><td>$18,775</td></tr></table>

Question: What's the current growth rate of Baa for Fair Value?