SCHEDULE IV (continued) ACE Limited and Subsidiaries SUPPLEMENTAL INFORMATION CONCERNING REINSURANCE Premiums Earned
## Table 0 ##
of the subsidiaries entered into 60 separate currency forward contracts to buy U. S.  dollars at a fixed price.
These forward contracts hedged the currency exposure of converting Canadian dollars to U. S.  dollars on a monthly basis to cover debt service payments, including the final balloon payment.
These contracts were designated as cash flow hedges of the debt service and balloon payment and were recorded at fair value on the balance sheet with offsetting changes recorded in accumulated other comprehensive income.
During 2003, we prepaid approximately $39 million of the loan and terminated the foreign currency contracts equal to the prepayments for a payment of approximately $8 million.
As a result, substantially all of the forward currency contracts were deemed ineffective for accounting purposes and we recorded a loss on the contracts of approximately $18 million in 2003.
Subsequent to the prepayment date, we recorded the increase or decrease in the fair value of the outstanding forward currency contracts in net income (loss) each period.
In December 2004, we made an additional $34 million prepayment of the loan.
In 2005, we terminated the remaining foreign currency contracts for approximately $18 million and prepaid the remaining outstanding balance of the loan for approximately $19 million.
On August 21, 2003, we entered into two four-year interest rate swap agreements that mature October 2007, effectively converting our Series G senior notes to floating-rate debt.
Under the swaps, we receive fixed-rate payments of 9.25% and we make floating-rate payments based on six-month LIBOR plus 590 basis points (10.1% at December 31, 2005) on a $242 million notional amount, which is approximately equal to the current amount of outstanding Series G senior notes.
We have designated the interest rate swaps as fair value hedges for both financial reporting and tax purposes and the amounts paid or received under the swap agreements will be recognized over the life of the agreements as an adjustment to interest expense.
Changes in the fair value of the swaps and our Series G senior notes are reflected in the balance sheet as offsetting changes and have no income statement effect.
The fair value of these interest rate swaps was $(6) million and $1 million at December 31, 2005 and 2004, respectively.
On December 20, 2001, we entered into a five-year interest rate swap agreement, which was effective on January 15, 2002 and matures in January 2007, effectively converting our Series I senior notes to floating rate debt.
Under the swap, we receive fixed-rate payments of 9.5% and pay floating-rate payments based on one-month LIBOR plus 450 basis points (8.9% at December 31, 2005) on a $450 million notional amount, which is equal to the current amount of outstanding Series I senior notes.
We have designated the interest rate swap as a fair value hedge for both financial reporting and tax purposes and the amounts paid or received under the swap agreement will be recognized over the life of the agreement as an adjustment to interest expense.
Changes in the fair value of the swap and the Series I senior notes are reflected in the balance sheet as offsetting changes and have no income statement effect.
The fair value of this interest rate swap at December 31, 2005 and 2004 was $1 million and $18 million, respectively.
In connection with the refinancing of the mortgage debt secured by the JW Marriott, Washington, D. C.  in September 2003, we purchased an interest rate cap with a notional amount of $88 million, which capped the floating interest rate at 8.1% for the first two years of the loan.
Upon the expiration of the interest rate cap in September 2005, we purchased a similar interest rate cap that caps the floating rate of the loan at 8.1% through September 2006.
The caps represent derivatives that are marked to market each period and the gains and losses from changes in the market value of the caps are recorded in gain (loss) on foreign currency and derivative contracts.
The fair values of the interest rate caps were immaterial at December 31, 2005 and 2004.
Aggregate Debt Maturities Aggregate debt maturities at December 31, 2005 are as follows:
## Table 1 ##
Interest Cash paid for interest, net of amounts capitalized, was $423 million in 2005, $453 million in 2004 and $468 million in 2003.
During 2005, 2004 and 2003, we capitalized $5 million, $3 million and $2 million of interest expense related to qualifying property construction activities.
We recorded losses, which have been included in interest expense on our consolidated statement of operations, during 2005 and 2004, of approximately $30 million and $55 million, respectively, on the early extinguishment of debt, which includes prepayment premiums and the acceleration of the related discounts and deferred financing costs.
Deferred financing costs, which are included in other assets, amounted to $63 million and $70 million, net of accumulated amortization, as of December 31, 2005 and 2004, respectively.
Amortization of deferred financing costs totaled $14 million, $16 million, and $17 million in 2005, 2004 and 2003, respectively.
Amortization of property and equipment under capital leases totaled $3 million, $2 million and $3 million in 2005, 2004 and 2003, respectively, and is included in depreciation and amortization on the accompanying consolidated statements of operations.
STOCKHOLDERS’ EQUITY Seven hundred fifty million shares of common stock, with a par value of $0.01 per share, are authorized, of which 361.0 million and 351.4 million were outstanding as of December 31, 2005 and 2004, respectively.
Fifty million shares of no par value preferred stock are authorized, with 10.0 million shares and 14.0 million shares outstanding as of December 31, 2005 and 2004, respectively.
Dividends.
We are required to distribute at least 90% of our taxable income to qualify as a REIT.
However, our policy on common dividends is generally to distribute at least 100% of our taxable income, unless otherwise contractually restricted.
For our preferred dividends, we will generally pay the quarterly dividend, regardless of the amount of taxable income, unless similarly contractually restricted.
The amount of any dividends will be determined by Host’s Board of Directors.
Financial Objectives Our long-term financial goals include competitive organic revenue growth and operating margin expansion, which we expect will further strengthen our liquidity and increase value to our shareholders.
Accordingly, we remain focused on meeting the evolving needs of our clients while concurrently managing our cost structure.
We continually seek greater efficiency in the delivery of our services, focusing on more effective resource utilization, including the productivity of our employees, real estate, information technology and shared services, such as finance, human resources and legal.
The improvements we have made in our financial reporting and business information systems in recent years, and which continue, allow us more timely and actionable insights from our global operations.
Our disciplined approach to our balance sheet and liquidity provides us with a solid financial foundation and financial flexibility to manage our business.
We believe that our strategy and execution position us to meet our financial goals and to deliver long-term shareholder value.
Financial Reporting Segments We have two reportable segments, which are Integrated Agency Networks (“IAN”) and CMG.
IAN is comprised of McCann, Draftfcb, Lowe, Mediabrands and our domestic integrated agencies.
CMG is comprised of a number of our specialist marketing services offerings.
We also report results for the “Corporate and other” group.
See Note 13 to the Consolidated Financial Statements for further information.
Principal Markets Our agencies are located in over 100 countries, including every significant world market.
Our geographic revenue breakdown is listed below.
## Table 2 ##
For further information regarding revenues and long-lived assets on a geographical basis for each of the last three years, see Note 13 to the Consolidated Financial Statements.
Sources of Revenue Our revenues are primarily derived from the planning and execution of multi-channel advertising, marketing and communications programs around the world.
Our revenues are directly dependent upon the advertising, marketing and corporate communications requirements of our existing clients and our ability to win new clients.
Most of our client contracts are individually negotiated and, accordingly, the terms of client engagements and the bases on which we earn commissions and fees vary significantly.
As is customary in the industry, our contracts generally provide for termination by either party on relatively short notice, usually 90 days.
Revenues for the creation, planning and placement of advertising are determined primarily on a negotiated fee basis and, to a lesser extent, on a commission basis.
Fees are usually calculated to reflect hourly rates plus proportional overhead and a mark-up.
Many clients include an incentive compensation component in their total compensation package.
This provides added revenue based on achieving mutually agreed-upon qualitative or quantitative metrics within specified time periods.
Commissions are earned based on services provided and are usually derived from a percentage or fee over the total cost to complete the assignment.
Commissions can also be derived when clients pay us the gross rate billed by media and we pay for media at a lower net rate; the difference is the commission that we earn, which we either retain in full or share with the client depending on the nature of the applicable services agreement.
Letter of credit fees, foreign exchange fees, and other trade finance income decreased between 2002 and 2003, as a result of increased competition and increased availability of these product types from other financial institutions.
The increase in income between 2001 and 2002 reflects an increase in the number of products offered by us and an increase in the volume of client foreign exchange transactions during 2002 as compared to 2001.
Due to an increase in client initial public offering and mergers and acquisition activities, the income from client warrants increased between 2002 and 2003.
Conversely, we experienced a decrease in warrant income between 2001 and 2002, due to a slowdown of those activities in 2002 from 2001.
The timing and amount of income from client warrants typically depends upon factors beyond our control, including the general condition of the public equity markets as well as the merger and acquisition environment.
We have historically obtained rights to acquire stock, in the form of warrants, in certain clients, primarily as part of negotiated credit facilities.
The receipt of warrants does not change the loan covenants or other collateral control techniques we employ to mitigate the risk of a loan becoming nonperforming.
The collateral requirements on loans with warrants are similar to lending arrangements where warrants are not obtained.
Due to the uncertainty of factors beyond our control, we cannot predict the timing and amount of income from client warrants with any degree of accuracy, and this income is likely to vary materially from period to period.
Credit card fees have continued to increase year over year as a result of our increased efforts to market a full range of fee-based financial services to our clients.
In 2003, client usage of this product has increased, as well has fees charged for this line of service.
We experienced improvements in investment securities losses from year to year.
The 2003 and 2002 losses primarily related to the writedown of certain venture capital fund and direct equity investments.
Excluding the impact of minority interest, the net write-downs of our equity securities totaled approximately $2.8 million in 2003, $4.1 million in 2002, and $6.6 million in 2001.
In 2004, we expect continued volatility in equity securities losses, with general improvement in a lower range in the near term.
Other noninterest income largely consisted of service-based fee income associated with our deposit and loan services, as well as fund management fees.
It totaled $9.3 million in 2003, $8.0 million in 2002, and $10.7 million in 2001.
The decrease in 2002, as compared to 2001, was primarily due to the elimination of supply chain service operations in late 2001.
Noninterest Expense Noninterest expense in 2003 totaled $262.7 million, compared to $186.4 million in 2002, and $183.5 million in 2001.
The following table presents the detail of noninterest expense and the percent change, year over year:
## Table 3 ##

<table><tr><td>For the years ended December 31, 2008, 2007, and 2006(in millions of U.S. dollars)</td><td>Direct Amount</td><td>Ceded To Other Companies</td><td>Assumed From Other Companies</td><td>Net Amount</td><td>Percentage of Amount Assumed to Net</td></tr><tr><td>2008</td><td>$16,087</td><td>$6,144</td><td>$3,260</td><td>$13,203</td><td>25%</td></tr><tr><td>2007</td><td>$14,673</td><td>$5,834</td><td>$3,458</td><td>$12,297</td><td>28%</td></tr><tr><td>2006</td><td>$13,562</td><td>$5,198</td><td>$3,461</td><td>$11,825</td><td>29%</td></tr></table>
<table><tr><td>2006</td><td>$228</td></tr><tr><td>2007</td><td>873</td></tr><tr><td>2008</td><td>451</td></tr><tr><td>2009</td><td>754</td></tr><tr><td>2010</td><td>518</td></tr><tr><td>Thereafter</td><td>2,559</td></tr><tr><td></td><td>5,383</td></tr><tr><td>Fair value adjustment for interest rate swaps</td><td>-5</td></tr><tr><td>Discount on senior notes</td><td>-11</td></tr><tr><td>Capital lease obligations</td><td>3</td></tr><tr><td></td><td>$5,370</td></tr></table>
<table><tr><td></td><td colspan="3">% of Total Revenue</td></tr><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Domestic</td><td>54.7%</td><td>55.4%</td><td>57.0%</td></tr><tr><td>United Kingdom</td><td>8.2%</td><td>7.7%</td><td>7.2%</td></tr><tr><td>Continental Europe</td><td>11.8%</td><td>13.0%</td><td>13.3%</td></tr><tr><td>Asia Pacific</td><td>12.0%</td><td>10.6%</td><td>9.8%</td></tr><tr><td>Latin America</td><td>6.5%</td><td>6.3%</td><td>5.6%</td></tr><tr><td>Other</td><td>6.8%</td><td>7.0%</td><td>7.1%</td></tr></table>
<table><tr><td> </td><td colspan="3"> Years Ended December 31,</td><td colspan="2"> % Change</td></tr><tr><td> </td><td> 2003</td><td> 2002</td><td> 2001</td><td> 2003 / 2002</td><td> 2002 / 2001</td></tr><tr><td> </td><td colspan="5"> (Dollars in thousands)</td></tr><tr><td>Compensation and benefits</td><td>$122,093</td><td>$105,168</td><td>$89,060</td><td>16.1%</td><td>18.1%</td></tr><tr><td>Impairment of goodwill</td><td>63,000</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net occupancy</td><td>17,638</td><td>20,391</td><td>16,181</td><td>-13.5</td><td>26.0</td></tr><tr><td>Professional services</td><td>13,677</td><td>18,385</td><td>24,543</td><td>-25.6</td><td>-25.1</td></tr><tr><td>Furniture and equipment</td><td>11,289</td><td>9,562</td><td>13,916</td><td>18.1</td><td>-31.3</td></tr><tr><td>Business development and travel</td><td>8,692</td><td>8,426</td><td>10,159</td><td>3.2</td><td>-17.1</td></tr><tr><td>Correspondent bank fees</td><td>4,343</td><td>2,835</td><td>479</td><td>53.2</td><td>491.9</td></tr><tr><td>Data processing services</td><td>4,288</td><td>4,360</td><td>3,785</td><td>-1.7</td><td>15.2</td></tr><tr><td>Telephone</td><td>3,187</td><td>3,123</td><td>4,317</td><td>2.0</td><td>-27.7</td></tr><tr><td>Tax credit funds amortization</td><td>2,704</td><td>2,963</td><td>2,756</td><td>-8.7</td><td>7.5</td></tr><tr><td>Postage and supplies</td><td>2,601</td><td>3,190</td><td>3,995</td><td>-18.5</td><td>-20.2</td></tr><tr><td>Trust preferred securities distributions</td><td>594</td><td>2,230</td><td>3,300</td><td>-73.4</td><td>-32.4</td></tr><tr><td>Other</td><td>8,581</td><td>5,741</td><td>10,997</td><td>49.5</td><td>-47.8</td></tr><tr><td>Total noninterest expense</td><td>$262,687</td><td>$186,374</td><td>$183,488</td><td>40.9%</td><td>1.6%</td></tr></table>

Question: Which Year Ended December 31 is Correspondent bank fees the most?