PRO FORMA FINANCIAL INFORMATION The following pro forma consolidated condensed financial results of operations are presented as if the acquisition of the valves & controls business occurred on October 1, 2015.
The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time.
## Table 0 ##
The pro forma results for 2016 were adjusted to include first year acquisition accounting charges related to inventory and backlog of $122 in 2017.
The pro forma 2016 results also include acquisition costs of $52, while the 2017 pro forma results were adjusted to exclude these charges.
On October 2, 2017, the Company sold its residential storage business for $200 in cash, subject to post-closing adjustments, and expects to recognize a loss of approximately $40 in 2018 due to income taxes resulting from nondeductible goodwill.
The Company expects to realize approximately $140 in after-tax cash proceeds from the sale.
This business, with sales of $298 and pretax earnings of $15 in 2017, is a leader in home organization and storage systems, and was reported within the Tools & Home Products segment.
Assets and liabilities were classified as held-for-sale as of September 30, 2017.
The Company acquired six businesses in 2016, four in Automation Solutions and two in Climate Technologies.
Total cash paid for these businesses was $132, net of cash acquired.
Annualized sales for these businesses were approximately $51 in 2016.
The Company recognized goodwill of $83 ($27 of which is expected to be tax deductible) and other identifiable intangible assets of $50, primarily customer relationships and intellectual property with a weighted-average life of approximately nine years.
The Company completed eight acquisitions in 2015, seven in Automation Solutions and one in Tools & Home Products, which had combined annualized sales of approximately $115.
Total cash paid for all businesses was $324, net of cash acquired.
The Company recognized goodwill of $178 ($42 of which is expected to be tax deductible) and other intangible assets of $128, primarily customer relationships and intellectual property with a weighted-average life of approximately ten years.
In January 2015, the Company completed the sale of its mechanical power transmission solutions business for $1.4 billion, and recognized a pretax gain from the transaction of $939 ($532 after-tax, $0.78 per share).
Assets and liabilities sold were as follows: current assets, $182 (accounts receivable, inventories, other current assets); other assets, $374 (property, plant and equipment, goodwill, other noncurrent assets); accrued expenses, $56 (accounts payable, other current liabilities); and other liabilities, $41.
Proceeds from the divestiture were used for share repurchase.
This business was previously reported in the former Industrial Automation segment, and had partial year sales in 2015 of $189 and related pretax earnings of $21.
Power transmission solutions designs and manufactures market-leading couplings, bearings, conveying components and gearing and drive components, and provides supporting services and solutions.
On September 30, 2015, the Company sold its InterMetro commercial storage business for $411 in cash and recognized a pretax gain from the transaction of $100 ($79 after-tax, $0.12 per share).
This business had annual sales of $288 and pretax earnings of $42 in 2015 and was reported in the former Commercial & Residential Solutions segment.
Assets and liabilities sold were as follows: current assets, $62 (accounts receivable, inventories, other current assets); other assets, $292 (property, plant and equipment, goodwill, other noncurrent assets); current liabilities, $34 (accounts payable, other current liabilities); and other liabilities, $9.
InterMetro is a leading manufacturer and supplier of storage and transport products in the food service, commercial products and health care industries.
The results of operations of the acquired businesses discussed above have been included in the Company’s consolidated results of operations since the respective dates of acquisition.
(4) Discontinued Operations In 2017, the Company completed the previously announced strategic actions to streamline its portfolio and drive growth in its core businesses.
On November 30, 2016, the Company completed the sale of its network power systems business for $4.0 billion in cash and retained a subordinated interest in distributions, contingent upon the equity holders first receiving a threshold return on their initial investment.
This business comprised the former Network Power segment.
Additionally, on January 31, 2017, the Company completed the sale of its power generation, motors and drives business for approximately $1.2 billion, subject to post-closing
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements
## Table 1 ##
(1) Excludes notes with amortized cost of $4,216 million (fair value, $4,216 million), which have been offset with the associated payables under a netting agreement.
(2) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(4) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date.
Amount excludes $356 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(5) Excludes notes with amortized cost of $4,879 million (fair value, $4,879 million), which have been offset with the associated payables under a netting agreement.
## Table 2 ##
December 31, 2017
## Table 3 ##
(1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 million), which have been offset with the associated payables under a netting agreement.
(2) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(4) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date.
Amount excludes $553 million of net unrealized gains on impaired available-for-sale securities and $2 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(5) Excludes notes with amortized cost of $4,627 million (fair value, $4,913 million), which have been offset with the associated payables under a netting agreement.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements The pension and postretirement expected long-term rates of return on plan assets for 2018 were determined based upon an approach that considered the allocation of plan assets as of December 31, 2017.
Expected returns are estimated by asset class as noted in the discussion of investment policies and strategies below.
Expected returns on asset classes are developed using a building-block approach that is forward looking and are not strictly based upon historical returns.
The building blocks for equity returns include inflation, real return, a term premium, an equity risk premium, capital appreciation, expenses, the effect of active management and the effect of rebalancing.
The building blocks for fixed maturity returns include inflation, real return, a term premium, credit spread, capital appreciation, effect of active management, expenses and the effect of rebalancing.
The Company applied the same approach to the determination of the expected rate of return on plan assets in 2019.
The expected rate of return for 2019 is 6.50% and 7.00% for pension and postretirement, respectively.
The assumptions for foreign pension plans are based on local markets.
There are no material foreign postretirement plans.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan.
A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects:
## Table 4 ##
Plan Assets The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments.
The cash requirements of the pension obligation, which include a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments, are designed to be met by the bonds and short-term investments in the portfolio.
The pension plan risk management practices include guidelines for asset concentration, credit rating and liquidity.
The pension plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration.
The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit and a life benefit.
The postretirement plan risk management practices include guidelines for asset concentration, credit rating, liquidity and tax efficiency.
The postretirement plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration.
The plan fiduciaries for the Company’s pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis.
Asset allocation targets as of December 31, 2018 are as follows: Pension Postretirement

<table><tr><td></td><td>2016</td><td>2017</td></tr><tr><td>Net sales</td><td>$16,201</td><td>16,112</td></tr><tr><td>Net earnings from continuing operations common stockholders</td><td>$1,482</td><td>1,692</td></tr><tr><td>Diluted earnings per share from continuing operations</td><td>$2.28</td><td>2.62</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2018</td></tr><tr><td></td><td>AmortizedCost</td><td>GrossUnrealizedGains</td><td>GrossUnrealizedLosses</td><td>FairValue</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Fixed maturities, held-to-maturity:</td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign government bonds</td><td>$885</td><td>$269</td><td>$0</td><td>$1,154</td></tr><tr><td>Foreign corporate public securities</td><td>668</td><td>64</td><td>0</td><td>732</td></tr><tr><td>Foreign corporate private securities-5</td><td>95</td><td>3</td><td>0</td><td>98</td></tr><tr><td>Residential mortgage-backed securities-3</td><td>365</td><td>23</td><td>0</td><td>388</td></tr><tr><td>Total fixed maturities, held-to-maturity-5</td><td>$2,013</td><td>$359</td><td>$0</td><td>$2,372</td></tr></table>
<table><tr><td></td><td colspan="5">December 31, 2017</td></tr><tr><td></td><td>AmortizedCost</td><td>GrossUnrealizedGains</td><td>GrossUnrealizedLosses</td><td>FairValue</td><td>OTTIin AOCI-4</td></tr><tr><td></td><td colspan="5">(in millions)</td></tr><tr><td>Fixed maturities, available-for-sale:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$22,837</td><td>$3,647</td><td>$346</td><td>$26,138</td><td>$0</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>9,366</td><td>1,111</td><td>6</td><td>10,471</td><td>0</td></tr><tr><td>Foreign government bonds</td><td>88,062</td><td>15,650</td><td>293</td><td>103,419</td><td>0</td></tr><tr><td>U.S. corporate public securities</td><td>81,967</td><td>8,671</td><td>414</td><td>90,224</td><td>-10</td></tr><tr><td>U.S. corporate private securities-1</td><td>31,852</td><td>2,051</td><td>169</td><td>33,734</td><td>-13</td></tr><tr><td>Foreign corporate public securities</td><td>26,389</td><td>3,118</td><td>99</td><td>29,408</td><td>-5</td></tr><tr><td>Foreign corporate private securities</td><td>23,322</td><td>1,242</td><td>337</td><td>24,227</td><td>0</td></tr><tr><td>Asset-backed securities-2</td><td>11,965</td><td>278</td><td>10</td><td>12,233</td><td>-237</td></tr><tr><td>Commercial mortgage-backed securities</td><td>13,134</td><td>238</td><td>91</td><td>13,281</td><td>0</td></tr><tr><td>Residential mortgage-backed securities-3</td><td>3,491</td><td>165</td><td>11</td><td>3,645</td><td>-2</td></tr><tr><td>Total fixed maturities, available-for-sale-1</td><td>$312,385</td><td>$36,171</td><td>$1,776</td><td>$346,780</td><td>$-267</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2017</td></tr><tr><td></td><td>AmortizedCost</td><td>GrossUnrealizedGains</td><td>GrossUnrealizedLosses</td><td>FairValue</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Fixed maturities, held-to-maturity:</td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign government bonds</td><td>$865</td><td>$265</td><td>$0</td><td>$1,130</td></tr><tr><td>Foreign corporate public securities</td><td>654</td><td>82</td><td>0</td><td>736</td></tr><tr><td>Foreign corporate private securities-5</td><td>84</td><td>2</td><td>0</td><td>86</td></tr><tr><td>Residential mortgage-backed securities-3</td><td>446</td><td>32</td><td>0</td><td>478</td></tr><tr><td>Total fixed maturities, held-to-maturity-5</td><td>$2,049</td><td>$381</td><td>$0</td><td>$2,430</td></tr></table>
<table><tr><td></td><td>Other PostretirementBenefits (in millions)</td></tr><tr><td>One percentage point increase</td><td></td></tr><tr><td>Increase in total service and interest costs</td><td>$6</td></tr><tr><td>Increase in postretirement benefit obligation</td><td>$123</td></tr><tr><td>One percentage point decrease</td><td></td></tr><tr><td>Decrease in total service and interest costs</td><td>$5</td></tr><tr><td>Decrease in postretirement benefit obligation</td><td>$98</td></tr></table>

Question: The Total fixed maturities, held-to-maturity-5 amount of which section ranks first?
Answer: Amortized Cost