The following discussion of nonoperating income and expense excludes the results of the Merger in order to provide a more meaningful year-over-year comparison.
Interest expense, net of capitalized interest decreased $249 million in 2014 from 2013 primarily due to a $149 million decrease in special charges recognized year-over-year as further described below, as well as refinancing activities that resulted in $100 million less interest expense recognized in 2014.
(1) In 2014, we recognized $33 million of special charges relating to non-cash interest accretion on bankruptcy settlement obligations.
In 2013, we recognized $138 million of special charges relating to post-petition interest expense on unsecured obligations pursuant to the Plan and penalty interest related to American’s 10.5% secured notes and 7.50% senior secured notes.
In addition, in 2013 we recorded special charges of $44 million for debt extinguishment costs incurred as a result of the repayment of certain aircraft secured indebtedness, including cash interest charges and non-cash write offs of unamortized debt issuance costs.
(2) As a result of the 2013 refinancing activities and the early extinguishment of American’s 7.50% senior secured notes in 2014, we recognized $100 million less interest expense in 2014 as compared to 2013.
Other nonoperating expense, net in 2014 consisted of $114 million of net foreign currency losses, including a $43 million special charge for Venezuelan foreign currency losses, and $56 million in other nonoperating special charges primarily due to early debt extinguishment costs related to the prepayment of our 7.50% senior secured notes and other indebtedness.
The foreign currency losses were driven primarily by the strengthening of the U. S.  dollar relative to other currencies during 2014, principally in the Latin American market, including a 48% decrease in the value of the Venezuelan bolivar and a 14% decrease in the value of the Brazilian real.
Other nonoperating expense, net in 2013 consisted principally of net foreign currency losses of $56 million and early debt extinguishment charges of $29 million.
Reorganization Items, Net Reorganization items refer to revenues, expenses (including professional fees), realized gains and losses and provisions for losses that are realized or incurred as a direct result of the Chapter 11 Cases.
The following table summarizes the components included in reorganization items, net on AAG’s consolidated statement of operations for the year ended December 31, 2013 (in millions):
## Table 0 ##
(1) In exchange for employees’ contributions to the successful reorganization, including agreeing to reductions in pay and benefits, we agreed in the Plan to provide each employee group a deemed claim, which was used to provide a distribution of a portion of the equity of the reorganized entity to those employees.
Each employee group received a deemed claim amount based upon a portion of the value of cost savings provided by that group through reductions to pay and benefits as well as through certain work rule changes.
The total value of this deemed claim was approximately $1.7 billion.
(2) Amounts include allowed claims (claims approved by the Bankruptcy Court) and estimated allowed claims relating to (i) the rejection or modification of financings related to aircraft and (ii) entry of orders treated as unsecured claims with respect to facility agreements supporting certain issuances of special facility revenue bonds.
The Debtors recorded an estimated claim associated with the rejection or modification of a financing
Disclosures about Contractual Obligations and Commercial Commitments The following table summarizes our known obligations to make future payments pursuant to certain contracts as of December 31, 2008, and the estimated timing thereof.
Contractual Obligations
## Table 1 ##
* Includes interest on variable rate debt calculated based on interest rates at December 31, 2008.
Variable rate debt was approximately 3% of our total debt at December 31, 2008.
Income Tax Obligations As of December 31, 2008, our total liability for income taxes payable, including uncertain tax positions, was $1,195 million, of which $41 million we expect to pay in the next twelve months.
We are not able to reasonably estimate the timing of future cash flows related to the remaining $1,154 million.
Our income tax obligations are excluded from the table above.
See Note 4.
Pension and Other Postretirement Benefits Pension cash requirements are based on an estimate of our minimum funding requirements, pursuant to ERISA regulations, although we may make additional discretionary contributions.
Estimates of other postretirement benefits are based on both our estimated future benefit payments and the estimated contributions to a single plan that is funded through a trust.
Purchase Obligations Purchase obligations represent contractual agreements to purchase goods or services that are legally binding; specify a fixed, minimum or range of quantities; specify a fixed, minimum, variable, or indexed price provision; and specify approximate timing of the transaction.
In addition, the agreements are not cancelable without substantial penalty.
Purchase obligations include amounts recorded as well as amounts that are not recorded on the statements of financial position.
Approximately 10% of the purchase obligations disclosed above are reimbursable to us pursuant to cost-type government contracts.
Purchase Obligations Not Recorded on the Consolidated Statement of Financial Position Production related purchase obligations not recorded on the Consolidated Statement of Financial Position include agreements for production goods, tooling costs, electricity and natural gas contracts, property, plant and equipment, and other miscellaneous production related obligations.
The most significant obligation relates to inventory procurement contracts.
We have entered into certain significant inventory procurement contracts that specify determinable prices and quantities, and longterm delivery timeframes.
In addition, we purchase raw materials on behalf of our suppliers.
These agreements require suppliers and vendors to be prepared to build and deliver items in sufficient time to meet our production schedules.
The need for such arrangements with suppliers and vendors arises from the extended production planning horizon for many of our products.
A significant portion of these inventory commitments is supported by firm contracts and/or has historically resulted in settlement
PART II with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents.
Also, FAD: (i) is computed after deducting recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements, and (ii) includes lease restructure payments and adjustments to compute our share of FAD from our unconsolidated joint ventures and those related to CCRC non-refundable entrance fees.
Certain prior period amounts in the “Non-GAAP Financial Measures Reconciliation” below for FAD have been reclassified to conform to the current period presentation.
More specifically, recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements (“FAD capital expenditures”) excludes our share from unconsolidated joint ventures (reported in “other FAD adjustments”).
Adjustments for joint ventures are calculated to reflect our pro-rata share of both our consolidated and unconsolidated joint ventures.
We reflect our share of FAD for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis.
We reflect our share for consolidated joint ventures in which we do not own 100% of the equity by adjusting our FAD to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods (reported in “other FAD adjustments”).
See FFO for further disclosure regarding our use of pro-rata share information and its limitations.
Other REITs or real estate companies may use different methodologies for calculating FAD, and accordingly, our FAD may not be comparable to those reported by other REITs.
Although our FAD computation may not be comparable to that of other REITs, management believes FAD provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT.
We believe FAD is an alternative run-rate earnings measure that improves the understanding of our operating results among investors and makes comparisons with: (i) expected results, (ii) results of previous periods and (iii) results among REITs more meaningful.
FAD does not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as it excludes the following items which generally flow through our cash flows from operating activities: (i) adjustments for changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, (ii) transaction-related costs, (iii) litigation settlement expenses, (iv) severance-related expenses and (v) actual cash receipts from interest income recognized on loans receivable (in contrast to our FAD adjustment to exclude non-cash interest and depreciation related to our investments in direct financing leases).
Furthermore, FAD is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity.
FAD is a non-GAAP supplemental financial measure and should not be considered as an alternative to net income (loss) determined in accordance with GAAP.
For a reconciliation of net income (loss) to FAD and other relevant disclosure, refer to “Non-GAAP Financial Measures Reconciliations” below.
Comparison of the Year Ended December 31, 2018 to the Year Ended December 31, 2017 and the Year Ended December 31, 2017 to the Year Ended December 31, 2016 Overview(1) 2018 and 2017 The following table summarizes results for the years ended December 31, 2018 and 2017 (dollars in thousands):
## Table 2 ##
(1) For the reconciliation of non-GAAP financial measures, see “Non-GAAP Financial Measure Reconciliations” section below.
Insurance and Annuities Products Asset/Liability Management We seek to maintain interest rate and equity exposures within established ranges, which we periodically adjust based on market conditions and the design of related products sold to customers.
Our risk managers establish investment risk limits for exposures to any issuer, geographic region, type of security or industry sector and oversee efforts to manage interest rate and equity exposure risk, as well as credit, liquidity and other risks, all within policy constraints set by management and approved by the Investment Committee of the Board of Directors.
For additional information regarding the management of our general account investments and our asset mix strategies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Realized Investment Gains and Losses and General Account Investments—General Account Investments—Management of Investments.
” We use duration and convexity analyses to measure price sensitivity to interest rate changes.
Duration measures the relative sensitivity of the fair value of a financial instrument to changes in interest rates.
Convexity measures the rate of change of duration with respect to changes in interest rates.
We use asset/liability management and derivative strategies to manage our interest rate exposure by legal entity by matching the relative sensitivity of asset and liability values to interest rate changes, or controlling “duration mismatch” of assets and liabilities.
We have target duration mismatch constraints by segment for each insurance entity.
In certain markets, primarily outside the U. S. , capital market limitations that hinder our ability to acquire assets that closely approximate the duration of some of our liabilities are considered in setting the constraint limits.
As of December 31, 2010 and 2009, the difference between the pre-tax duration of assets and the target duration of liabilities in our duration-managed portfolios was within our constraint limits.
We consider risk-based capital and tax implications as well as current market conditions in our asset/liability management strategies.
We also perform portfolio stress testing as part of our U. S.  regulatory cash flow for major product lines that are subject to risk from changes in interest rates.
In this testing, we evaluate the impact of altering our interest- sensitive assumptions under various adverse interest rate environments.
These interest-sensitive assumptions relate to the timing and amount of redemptions and prepayments of fixed-income securities and lapses and surrenders of insurance products and the potential impact of any guaranteed minimum interest rates.
We evaluate any shortfalls that this cash flow testing reveals to determine if we need to increase statutory reserves or adjust portfolio management strategies.
Market Risk Related to Interest Rates Our “other than trading” assets that subject us to interest rate risk include primarily fixed maturity securities, commercial mortgage and other loans and policy loans.
In the aggregate, the carrying value of these assets represented 78% of our consolidated assets, other than assets that we held in separate accounts, as of both December 31, 2010 and 2009.
With respect to “other than trading” liabilities, we are exposed to interest rate risk through policyholder account balances relating to interest-sensitive life insurance, annuity and other investment-type contracts, collectively referred to as investment contracts, and through outstanding short-term and long-term debt.
We assess interest rate sensitivity for “other than trading” financial assets, financial liabilities and derivatives using hypothetical test scenarios that assume either upward or downward 100 basis point parallel shifts in the yield curve from prevailing interest rates, reflecting changes in either credit spreads or the risk-free rate.
The following tables set forth the net estimated potential loss in fair value from a hypothetical 100 basis point upward shift as of December 31, 2010 and 2009, because this scenario results in the greatest net exposure to interest rate risk of the hypothetical scenarios tested at those dates.
While the test scenario is for illustrative purposes only and does not reflect our expectations regarding future interest rates or the performance of fixed-income markets, it is a near-term, reasonably possible hypothetical change that illustrates the potential impact of such events.
These test scenarios do not measure the changes in value that could result from non-parallel shifts in the yield curve, which we would expect to produce different changes in discount rates for different maturities.
As a result, the actual loss in fair value from a 100 basis point change in interest rates could be different from that indicated by these calculations.
## Table 3 ##

<table><tr><td></td><td>2013</td></tr><tr><td>Labor-related deemed claim -1</td><td>$1,733</td></tr><tr><td>Aircraft and facility financing renegotiations and rejections -2, -3</td><td>325</td></tr><tr><td>Fair value of conversion discount -4</td><td>218</td></tr><tr><td>Professional fees</td><td>199</td></tr><tr><td>Other</td><td>180</td></tr><tr><td>Total reorganization items, net</td><td>$2,655</td></tr></table>
<table><tr><td><i>(Dollars in millions)</i></td><td> Total</td><td>Less than 1 year</td><td>1-3 years</td><td>3-5 years</td><td>After 5 years</td></tr><tr><td>Long-term debt (including current portion)</td><td>$7,432</td><td>$551</td><td>$1,533</td><td>$2,495</td><td>$2,853</td></tr><tr><td>Interest on debt*</td><td>5,055</td><td>453</td><td>795</td><td>532</td><td>3,275</td></tr><tr><td>Pension and other post retirement cash requirements</td><td>11,222</td><td>692</td><td>1,486</td><td>5,139</td><td>3,905</td></tr><tr><td>Capital lease obligations</td><td>81</td><td>10</td><td>20</td><td>22</td><td>29</td></tr><tr><td>Operating lease obligations</td><td>1,171</td><td>219</td><td>315</td><td>148</td><td>489</td></tr><tr><td>Purchase obligations not recorded on statement of financial position</td><td>114,659</td><td>33,960</td><td>42,967</td><td>27,468</td><td>10,264</td></tr><tr><td>Purchase obligations recorded on statement of financial position</td><td>11,338</td><td>10,512</td><td>488</td><td>323</td><td>15</td></tr><tr><td>Total contractual obligations</td><td>$150,958</td><td>$46,397</td><td>$47,604</td><td>$36,127</td><td>$20,830</td></tr></table>
<table><tr><td></td><td colspan="2">Year Ended December 31,</td><td></td></tr><tr><td></td><td>2018</td><td>2017</td><td>Change</td></tr><tr><td>Net income (loss) applicable to common shares</td><td>$1,058,424</td><td>$413,013</td><td>$645,411</td></tr><tr><td>NAREIT FFO</td><td>780,189</td><td>661,113</td><td>119,076</td></tr><tr><td>FFO as adjusted</td><td>857,233</td><td>918,402</td><td>-61,169</td></tr><tr><td>FAD</td><td>746,397</td><td>803,720</td><td>-57,323</td></tr></table>
<table><tr><td rowspan="2"></td><td colspan="4">As of December 31, 2010</td></tr><tr><td> Notional</td><td>Fair Value</td><td>Hypothetical Fair Value After +100 Basis Point Parallel Yield CurveShift</td><td>Hypothetical Change in Fair Value</td></tr><tr><td></td><td></td><td colspan="2">(in millions)</td><td></td></tr><tr><td>Financial assets with interest rate risk:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities -1</td><td></td><td>$217,694</td><td>$202,279</td><td>$-15,415</td></tr><tr><td>Commercial mortgage and other loans</td><td></td><td>33,129</td><td>31,869</td><td>-1,260</td></tr><tr><td>Policy loans</td><td></td><td>12,781</td><td>11,978</td><td>-803</td></tr><tr><td>Derivatives:</td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>$138,442</td><td>563</td><td>-1,182</td><td>-1,745</td></tr><tr><td>Futures</td><td>6,834</td><td>0</td><td>-43</td><td>-43</td></tr><tr><td>Options</td><td>23,277</td><td>516</td><td>427</td><td>-89</td></tr><tr><td>Forwards</td><td>11,891</td><td>-159</td><td>-167</td><td>-8</td></tr><tr><td>Variable annuity and other living benefit feature embedded derivatives -2</td><td></td><td>204</td><td>1,388</td><td>1,184</td></tr><tr><td>Financial liabilities with interest rate risk:</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term and long-term debt</td><td></td><td>-27,093</td><td>-25,049</td><td>2,044</td></tr><tr><td>Debt of consolidated variable interest entities -3</td><td></td><td>-265</td><td>-265</td><td>0</td></tr><tr><td>Investment contracts</td><td></td><td>-78,757</td><td>-76,258</td><td>2,499</td></tr><tr><td>Bank customer liabilities</td><td></td><td>-1,775</td><td>-1,762</td><td>13</td></tr><tr><td>Net estimated potential loss</td><td></td><td></td><td></td><td>$-13,623</td></tr></table>

Question: What is the percentage of Fixed maturities -1 in relation to the total in 2010 for Hypothetical Change in Fair Value?