manage the risk exposures.
The exposures are measured and monitored daily, and adjustments to the hedge portfolio are made as necessary.
To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12 month period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices.
The interest rate risk test assumes a sudden 100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months.
The equity price risk test assumes a sudden 10% drop in equity prices, with equity prices then staying at those levels for the next 12 months.
In estimating the values of variable annuity riders, equity indexed annuities, stock market certificates and the associated hedge assets, we assumed no change in implied market volatility despite the 10% drop in equity prices.
The following tables present our estimate of the impact on pretax income from these hypothetical market movements as of December 31, 2011:
## Table 0 ##
Interest Rate Exposure to Pretax Income
## Table 1 ##
N/A Not Applicable.
(1) Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.
(2) Market impact on DAC and DSIC amortization resulting from lower projected profits.
(3) In estimating the impact on DAC and DSIC amortization resulting from lower projected profits, we have not changed our assumed equity asset growth rates.
This is a significantly more conservative estimate than if we assumed management follows its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period.
We make this same conservative assumption in estimating the impact from GMDB and GMIB riders.
(4) Market impact on DAC and DSIC amortization related to variable annuity riders is modeled net of hedge impact.
The above results compare to an estimated negative net impact to pretax income of $326 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $11 million related to a 100 basis point increase in interest rates as of December 31, 2010.
The change in interest rate sensitivity at December 31, 2011 compared to the prior year is primarily due to a decrease in interest rates.
Net impacts shown in the above table from GMWB and GMAB riders result largely from differences between the liability valuation basis and the hedging basis.
Liabilities are valued using fair value accounting principles, with key policyholder behavior assumptions loaded to provide risk margins and with discount rates increased to reflect a current market estimate of our risk of nonperformance specific to these liabilities.
For variable annuity riders introduced prior to mid-2009, management elected to hedge based on best estimate policyholder behavior assumptions.
For riders issued since mid-2009, management has been hedging on a basis that includes risk margins related to policyholder behavior.
The nonperformance spread risk is not hedged.
The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized.
Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes.
Under current U. S.  federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.
Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required.
Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains.
Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies.
Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established as of December 31, 2011.
Included in the Company’s deferred income tax assets are tax benefits related to capital loss carryforwards of $30 million which will expire beginning December 31, 2015, tax credits of $65 million which will expire beginning December 31, 2027, and state net operating losses of $39 million which will expire beginning December 31, 2014.
As a result of the Company’s ability to file a consolidated U. S.  federal income tax return including the Company’s life insurance subsidiaries, as well as the expected level of taxable income, management believes the Company’s capital loss carryforwards and tax credit carryforwards will be utilized before they expire.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (expense) were as follows:
## Table 2 ##
If recognized, approximately $38 million, $54 million and $81 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2011, 2010, and 2009, respectively, would affect the effective tax rate.
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision.
The Company recognized $66 million of interest and penalties for the year ended December 31, 2011.
The Company recognized a net reduction of $17 million in interest and penalties for the year ended December 31, 2010 and an increase of $1 million in interest and penalties for the year ended December 31, 2009.
At December 31, 2011 and 2010, the Company had a payable of $37 million and a receivable of $29 million, respectively, related to accrued interest and penalties.
It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months.
Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $150 million to $160 million in the next 12 months.
The Company or one or more of its subsidiaries files income tax returns in the U. S.  federal jurisdiction, and various states and foreign jurisdictions.
The Internal Revenue Service (‘‘IRS’’) had previously completed its field examination of the 1997 through 2007 tax returns in recent years as part of the overall examination of the American Express Company consolidated returns.
However, for federal income tax purposes these years except for 2007, continue to remain open as a consequence of certain issues under appeal.
The IRS is currently auditing the Company’s U. S.  income tax returns for 2008 and 2009.
The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1999 through 2009.
The Company’s federal and state income tax returns remain open for the years after 2009.
It is possible there will be corporate tax reform in the next few years.
While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items.
Potential tax reform may also affect the U. S.  tax rules regarding international operations.
Any changes could have a material impact on the income tax expense and the deferred tax balances of the Company.
The following table presents the results of operations of our Asset Management segment on an operating basis:
## Table 3 ##
NM Not Meaningful.
Our Asset Management segment pretax operating income, which excludes net realized gains or losses and integration charges, increased $118 million, or 29%, to $528 million for the year ended December 31, 2011 compared to $410 million for the prior year.
Earnings in 2011 reflect twelve months of Columbia Management earnings compared to eight months in the prior year, which impacted revenues and expenses.
Net Revenues Net revenues, which exclude net realized gains or losses, increased $532 million, or 22%, to $2.9 billion for the year ended December 31, 2011 compared to $2.4 billion for the prior year driven by an increase in management and distribution fees.
Management and financial advice fees increased $455 million, or 23%, compared to the prior year primarily due to an increase in asset-based fees driven by higher average assets under management, partially offset by lower hedge fund performance fees.
Average Asset Management AUM increased 24% compared to the prior year primarily due to the Columbia Management Acquisition, as well as the impact of higher average equity market levels on assets, partially offset by net outflows.
The average S&P 500 Index increased 11% in 2011 compared to the prior year.
Hedge fund performance fees decreased $54 million compared to the prior year.
Distribution fees increased $92 million, or 26%, to $450 million for the year ended December 31, 2011 compared to $358 million for the prior year driven by higher average assets under management.
Expenses Total expenses, which exclude integration charges, increased $414 million, or 21%, to $2.4 billion for the year ended December 31, 2011 compared to $2.0 billion for the prior year due to an increase in distribution expenses and general and administrative expense.
Distribution expenses increased $301 million, or 38%, to $1.1 billion for the year ended December 31, 2011 compared to $794 million for the prior year driven by higher average assets under management.
General and administrative expense, which excludes integration charges, increased $114 million, or 10%, to $1.3 billion for the year ended December 31, 2011 compared to $1.1 billion for the prior year reflecting an additional four months of ongoing expenses of Columbia Management, as well as higher investment spending compared to the prior year, partially offset by lower hedge fund performance compensation.
customer demand.
This compared with 555,000 tons of total downtime in 2006 of which 150,000 tons related to lack-of-orders.
## Table 4 ##
NORTH AMERICAN PRINTING PAPERS net sales in 2007 were $3.5 billion compared with $4.4 billion in 2006 ($3.5 billion excluding the Coated and Supercalendered Papers business) and $4.8 billion in 2005 ($3.2 billion excluding the Coated and Supercalendered Papers business).
Sales volumes decreased in 2007 versus 2006 partially due to reduced production capacity resulting from the conversion of the paper machine at the Pensacola mill to the production of lightweight linerboard for our Industrial Packaging segment.
Average sales price realizations increased significantly, reflecting benefits from price increases announced throughout 2007.
Lack-of-order downtime declined to 27,000 tons in 2007 from 40,000 tons in 2006.
Operating earnings of $537 million in 2007 increased from $482 million in 2006 ($407 million excluding the Coated and Supercalendered Papers business) and $175 million in 2005 ($74 million excluding the Coated and Supercalendered Papers business).
The benefits from improved average sales price realizations more than offset the effects of higher input costs for wood, energy, and freight.
Mill operations were favorable compared with the prior year due to current-year improvements in machine performance and energy conservation efforts.
Sales volumes for the first quarter of 2008 are expected to increase slightly, and the mix of products sold to improve.
Demand for printing papers in North America was steady as the quarter began.
Price increases for cut-size paper and roll stock have been announced that are expected to be effective principally late in the first quarter.
Planned mill maintenance outage costs should be about the same as in the fourth quarter; however, raw material costs are expected to continue to increase, primarily for wood and energy.
BRAZILIAN PAPERS net sales for 2007 of $850 million were higher than the $495 million in 2006 and the $465 million in 2005.
Compared with 2006, average sales price realizations improved reflecting price increases for uncoated freesheet paper realized during the second half of 2006 and the first half of 2007.
Excluding the impact of the Luiz Antonio acquisition, sales volumes increased primarily for cut size and offset paper.
Operating profits for 2007 of $246 million were up from $122 million in 2006 and $134 million in 2005 as the benefits from higher sales prices and favorable manufacturing costs were only partially offset by higher input costs.
Contributions from the Luiz Antonio acquisition increased net sales by approximately $350 million and earnings by approximately $80 million in 2007.
Entering 2008, sales volumes for uncoated freesheet paper and pulp should be seasonally lower.
Average price realizations should be essentially flat, but margins are expected to reflect a less favorable product mix.
Energy costs, primarily for hydroelectric power, are expected to increase significantly reflecting a lack of rainfall in Brazil in the latter part of 2007.
EUROPEAN PAPERS net sales in 2007 were $1.5 billion compared with $1.3 billion in 2006 and $1.2 billion in 2005.
Sales volumes in 2007 were higher than in 2006 at our Eastern European mills reflecting stronger market demand and improved efficiencies, but lower in Western Europe reflecting the closure of the Marasquel mill in 2006.
Average sales price realizations increased significantly in 2007 in both Eastern and Western European markets.
Operating profits of $214 million in 2007 increased from a loss of $16 million in 2006 and earnings of $88 million in 2005.
The loss in 2006 reflects the impact of a $128 million impairment charge to reduce the carrying value of the fixed assets at the Saillat, France mill.
Excluding this charge, the improvement in 2007 compared with 2006 reflects the contribution from higher net sales, partially offset by higher input costs for wood, energy and freight.
Looking ahead to the first quarter of 2008, sales volumes are expected to be stable in Western Europe, but seasonally weaker in Eastern Europe and Russia.
Average price realizations are expected to remain about flat.
Wood costs are expected to increase, especially in Russia due to strong demand ahead of tariff increases, and energy costs are anticipated to be seasonally higher.
ASIAN PRINTING PAPERS net sales were approximately $20 million in 2007, compared with $15 million in 2006 and $10 million in 2005.
Operating earnings increased slightly in 2007, but were close to breakeven in all periods.
U. S.  MARKET PULP sales in 2007 totaled $655 million compared with $510 million and $525 million in 2006 and 2005, respectively.
Sales volumes in 2007 were up from 2006 levels, primarily for paper and

<table><tr><td></td><td colspan="3">Equity Price Exposure to Pretax Income</td></tr><tr><td>Equity Price Decline 10%</td><td>Before Hedge Impact</td><td>Hedge Impact</td><td>Net Impact</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Asset-based management and distribution fees-1</td><td>$-174</td><td>$4</td><td>$-170</td></tr><tr><td>DAC and DSIC amortization-2(3)</td><td>-137</td><td>—</td><td>-137</td></tr><tr><td>Variable annuity riders:</td><td></td><td></td><td></td></tr><tr><td>GMDB and GMIB-3</td><td>-53</td><td>—</td><td>-53</td></tr><tr><td>GMWB</td><td>-148</td><td>198</td><td>50</td></tr><tr><td>GMAB</td><td>-52</td><td>68</td><td>16</td></tr><tr><td>DAC and DSIC amortization-4</td><td>N/A</td><td>N/A</td><td>-25</td></tr><tr><td>Total variable annuity riders</td><td>-253</td><td>266</td><td>-12</td></tr><tr><td>Equity indexed annuities</td><td>1</td><td>-1</td><td>—</td></tr><tr><td>Stock market certificates</td><td>2</td><td>-2</td><td>—</td></tr><tr><td>Total</td><td>$-561</td><td>$267</td><td>$-319</td></tr></table>
<table><tr><td></td><td colspan="3">Interest Rate Exposure to Pretax Income</td></tr><tr><td>Interest Rate Increase 100 Basis Points</td><td>Before Hedge Impact</td><td>Hedge Impact</td><td>Net Impact</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Asset-based management and distribution fees-1</td><td>$-36</td><td>$—</td><td>$-36</td></tr><tr><td>Variable annuity riders:</td><td></td><td></td><td></td></tr><tr><td>GMWB</td><td>544</td><td>-580</td><td>-36</td></tr><tr><td>GMAB</td><td>51</td><td>-52</td><td>-1</td></tr><tr><td>DAC and DSIC amortization-4</td><td>N/A</td><td>N/A</td><td>10</td></tr><tr><td>Total variable annuity riders</td><td>595</td><td>-632</td><td>-27</td></tr><tr><td>Fixed annuities, fixed portion of variable annuities</td><td></td><td></td><td></td></tr><tr><td>and fixed insurance products</td><td>22</td><td>—</td><td>22</td></tr><tr><td>Brokerage client cash balances</td><td>86</td><td>—</td><td>86</td></tr><tr><td>Flexible savings and other fixed rate savings products</td><td>16</td><td>—</td><td>16</td></tr><tr><td>Total</td><td>$683</td><td>$-632</td><td>$61</td></tr></table>
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Balance at January 1</td><td>$75</td><td>$-33</td><td>$-56</td></tr><tr><td>Additions based on tax positions related to the current year</td><td>1</td><td>2</td><td>1</td></tr><tr><td>Additions for tax positions of prior years</td><td>95</td><td>57</td><td>45</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-8</td><td>-42</td><td>-23</td></tr><tr><td>Settlements</td><td>21</td><td>91</td><td>—</td></tr><tr><td>Balance at December 31</td><td>$184</td><td>$75</td><td>$-33</td></tr></table>
<table><tr><td> </td><td colspan="2"> Years Ended December 31,</td><td></td><td></td></tr><tr><td> </td><td> 2011</td><td> 2010</td><td colspan="2">Change</td></tr><tr><td> </td><td colspan="3">(in millions)</td><td></td></tr><tr><td> Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$2,434</td><td>$1,979</td><td>$455</td><td>23%</td></tr><tr><td>Distribution fees</td><td>450</td><td>358</td><td>92</td><td>26</td></tr><tr><td>Net investment income</td><td>11</td><td>14</td><td>-3</td><td>-21</td></tr><tr><td>Other revenues</td><td>5</td><td>15</td><td>-10</td><td>-67</td></tr><tr><td>Total revenues</td><td>2,900</td><td>2,366</td><td>534</td><td>23</td></tr><tr><td>Banking and deposit interest expense</td><td>3</td><td>1</td><td>2</td><td>NM</td></tr><tr><td>Total net revenues</td><td>2,897</td><td>2,365</td><td>532</td><td>22</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>1,095</td><td>794</td><td>301</td><td>38</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>19</td><td>20</td><td>-1</td><td>-5</td></tr><tr><td>General and administrative expense</td><td>1,255</td><td>1,141</td><td>114</td><td>10</td></tr><tr><td>Total expenses</td><td>2,369</td><td>1,955</td><td>414</td><td>21</td></tr><tr><td>Operating earnings</td><td>$528</td><td>$410</td><td>$118</td><td>29%</td></tr></table>
<table><tr><td><i>In millions</i></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Sales</td><td>$6,530</td><td>$6,700</td><td>$6,980</td></tr><tr><td>Operating Profit</td><td>$1,101</td><td>$636</td><td>$434</td></tr></table>

Question: What's the greatest value of expenses in 2011? (in millions)
Answer: 1255