system and to use that system to conduct its electric delivery business and for other purposes that the franchises permit.
The terms of the franchises, with various expiration dates, typically range from 30 to 50 years.
Natural Gas Distribution CERC Corp. ’s natural gas distribution business (Gas Operations) engages in regulated intrastate natural gas sales to, and natural gas transportation for, approximately 3.3 million residential, commercial and industrial customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas.
The largest metropolitan areas served in each state by Gas Operations are Houston, Texas; Minneapolis, Minnesota; Little Rock, Arkansas; Shreveport, Louisiana; Biloxi, Mississippi; and Lawton, Oklahoma.
In 2010, approximately 42% of Gas Operations’ total throughput was to residential customers and approximately 58% was to commercial and industrial customers.
The table below reflects the number of natural gas distribution customers by state as of December 31, 2010:
## Table 0 ##
Gas Operations also provides unregulated services consisting of heating, ventilating and air conditioning (HVAC) equipment and appliance repair, and sales of HVAC, hearth and water heating equipment in Minnesota.
The demand for intrastate natural gas sales to residential customers and natural gas sales and transportation for commercial and industrial customers is seasonal.
In 2010, approximately 71% of the total throughput of Gas Operations’ business occurred in the first and fourth quarters.
These patterns reflect the higher demand for natural gas for heating purposes during those periods.
Supply and Transportation.
In 2010, Gas Operations purchased virtually all of its natural gas supply pursuant to contracts with remaining terms varying from a few months to four years.
Major suppliers in 2010 included BP Canada Energy Marketing Corp.  (25.6% of supply volumes), ConocoPhillips Company (8.3%), Tenaska Marketing Ventures (6.8%), Kinder Morgan (6.3%), Oneok Energy Marketing Company (4.7%), and Cargill, Inc.  (4.6%).
Numerous other suppliers provided the remaining 43.7% of Gas Operations’ natural gas supply requirements.
Gas Operations transports its natural gas supplies through various intrastate and interstate pipelines, including those owned by our other subsidiaries, under contracts with remaining terms, including extensions, varying from one to twelve years.
Gas Operations anticipates that these gas supply and transportation contracts will be renewed or replaced prior to their expiration.
Gas Operations actively engages in commodity price stabilization pursuant to annual gas supply plans presented to and/or filed with each of its state regulatory authorities.
These price stabilization activities include use of storage gas, contractually establishing fixed prices with our physical gas suppliers and utilizing financial derivative instruments to achieve a variety of pricing structures (e. g. , fixed price, costless collars and caps).
Its gas supply plans generally call for 25-50% of winter supplies to be hedged in some fashion.
Generally, the regulations of the states in which Gas Operations operates allow it to pass through changes in the cost of natural gas, including gains and losses on financial derivatives associated with the index-priced physical supply, to its customers under purchased gas adjustment provisions in its tariffs.
Depending upon the jurisdiction, the purchased gas adjustment factors are updated periodically, ranging from monthly to semi-annually, using estimated gas costs.
The changes in the cost of gas billed to customers are subject to review by the applicable regulatory bodies.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) Net Unrealized Investment Gains (Losses) Net unrealized investment gains and losses on securities classified as “available for sale” and certain other long-term investments and other assets are included in the Consolidated Statements of Financial Position as a component of “Accumulated other comprehensive income (loss).
” Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods.
The amounts 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.
Sales Results In managing our international insurance business, we analyze revenues, as well as new annualized premiums, which do not correspond to revenues under U. S.  GAAP.
New annualized premiums measure the current sales performance of the segment, while revenues primarily reflect the renewal persistency of policies written in prior years and net investment income, in addition to current sales.
New annualized premiums include 10% of first year premiums or deposits from single pay products.
New annualized premiums on an actual and constant exchange rate basis are as follows for the periods indicated.
## Table 2 ##
2007 to 2006 Annual Comparison.
On a constant exchange rate basis, new annualized premiums increased $18 million, from $1.185 billion in 2006 to $1.203 billion in 2007.
On this same basis, new annualized premiums from our Japanese Life Planner operations increased $10 million reflecting increased sales of retirement income and U. S.  dollar denominated whole life products, partially offset by lower sales of increasing term life products to corporations as a result of pending tax law changes.
Sales in all other countries, also on a constant exchange rate basis, increased $3 million as decreased sales in Korea mostly offset increased sales in Taiwan and the rest of our Life Planner operations.
The number of Life Planners increased 338, or 6%, from 5,828 as of December 31, 2006 to 6,166 as of December 31, 2007.
This increase was driven by increases of 112, 66 and 90 in our Life Planner operations in Japan, Korea and Taiwan, respectively.
In addition, during 2007, 82 Life Planners in Japan were transferred to Gibraltar primarily to support our efforts to expand our bank channel distribution.
New annualized premiums, on a constant exchange rate basis, from our Gibraltar Life operation increased $5 million from 2006 to 2007, primarily due to higher sales of our U. S.  dollar whole life product and other traditional insurance products, which was partially offset by lower sales of our U. S.  dollar denominated single premium fixed annuity, particularly in our bank distribution channel.
The number of Life Advisor’s increased 320, or 5%, from 5,944 as of December 31, 2006 to 6,264 as of December 31, 2007.2006 to 2005 Annual Comparison.
On a constant exchange rate basis, new annualized premiums declined $33 million, from $1.218 billion in 2005 to $1.185 billion in 2006.
On this same basis, new annualized premiums from our Japanese Life Planner operation declined $72 million, primarily reflecting a decline in sales of U. S.  dollar denominated products.
Higher sales in 2005 reflected the popularity of these products and sales in anticipation of premium rate increases.
The decline in these sales was partially offset by increased sales of term life insurance products.
Sales in all other countries, also on a constant exchange rate basis, declined $9 million primarily reflecting declines in sales in Korea and Taiwan.
New annualized premiums from our Gibraltar Life operation increased $48 million, on a constant exchange rate basis, from $329 million in 2005 to $377 million in 2006.
Sales of our U. S.  dollar denominated single premium fixed annuity product increased $95 million, from $46 million in 2005 to $141 million in 2006, including $49 million of sales through our bank distribution channel which commenced in the first quarter of 2006.
Sales of our U. S.  dollar denominated whole life policies increased $18 million, from $5 million in 2005 to $23 million in 2006.
These increases were partially offset by a decline in sales of our single pay whole life products, from $50 million in 2005 to $12 million in 2006, and our traditional whole life products, from $77 million in 2005 to $52 million in 2006.
Investment Margins and Other Profitability Factors Many of our insurance products sold in international markets provide for the buildup of cash values for the policyholder at mandated guaranteed interest rates.
Japanese authorities regulate interest rates guaranteed in our Japanese insurance contracts.
The regulated guaranteed interest rates do not necessarily match the actual returns on the underlying investments.
The spread between the actual investment returns and these guaranteed rates of return to the policyholder is an element of the profit or loss that we will experience on these products.
With regulatory approval, guaranteed rates may be changed on new business.
While these actions enhance our ability to set rates commensurate with available investment returns, the major sources of profitability on our products sold in Japan, other than those sold by Gibraltar Life, are margins on mortality, morbidity and expense charges rather than investment spreads.
We base premiums and cash values in most countries in which we operate on mandated mortality and morbidity tables.
Our mortality and morbidity experience in the International Insurance segment on an overall basis in the years ended December 31, 2007, 2006, and 2005 was well within our pricing assumptions and below the guaranteed levels reflected in the premiums we charge.

<table><tr><td></td><td>Residential</td><td>Commercial/Industrial</td><td>Total Customers</td></tr><tr><td>Arkansas</td><td>390,668</td><td>48,033</td><td>438,701</td></tr><tr><td>Louisiana</td><td>232,135</td><td>17,347</td><td>249,482</td></tr><tr><td>Minnesota</td><td>738,868</td><td>67,489</td><td>806,357</td></tr><tr><td>Mississippi</td><td>109,608</td><td>12,683</td><td>122,291</td></tr><tr><td>Oklahoma</td><td>93,388</td><td>10,620</td><td>104,008</td></tr><tr><td>Texas</td><td>1,451,666</td><td>90,719</td><td>1,542,385</td></tr><tr><td>Total Gas Operations</td><td>3,016,333</td><td>246,891</td><td>3,263,224</td></tr></table>
<table><tr><td></td><td>Net Unrealized Gains (Losses) On Investments(1)</td><td>Deferred Policy Acquisition Costs and Valuation of Business Acquired</td><td>Future Policy Benefits</td><td>Policyholders’ Dividends</td><td>Deferred Income Tax (Liability) Benefit</td><td>Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains(Losses)</td></tr><tr><td></td><td colspan="6">(in millions)</td></tr><tr><td>Balance, December 31, 2004</td><td>$8,365</td><td>$-372</td><td>$-1,794</td><td>$-3,141</td><td>$-1,037</td><td>$2,021</td></tr><tr><td>Net investment gains (losses) on investments arising during the period</td><td>-1,075</td><td>—</td><td>—</td><td>—</td><td>385</td><td>-690</td></tr><tr><td>Reclassification adjustment for (gains) losses included in net income</td><td>-791</td><td>—</td><td>—</td><td>—</td><td>283</td><td>-508</td></tr><tr><td>Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired</td><td>—</td><td>152</td><td>—</td><td>—</td><td>-54</td><td>98</td></tr><tr><td>Impact of net unrealized investment (gains) losses on future policy benefits</td><td>—</td><td>—</td><td>167</td><td>—</td><td>-57</td><td>110</td></tr><tr><td>Impact of net unrealized investment (gains) losses on policyholders’ dividends</td><td>—</td><td>—</td><td>—</td><td>839</td><td>-294</td><td>545</td></tr><tr><td>Balance, December 31, 2005</td><td>6,499</td><td>-220</td><td>-1,627</td><td>-2,302</td><td>-774</td><td>1,576</td></tr><tr><td>Net investment gains (losses) on investments arising during the period</td><td>-1,007</td><td>—</td><td>—</td><td>—</td><td>349</td><td>-658</td></tr><tr><td>Reclassification adjustment for (gains) losses included in net income</td><td>-389</td><td>—</td><td>—</td><td>—</td><td>135</td><td>-254</td></tr><tr><td>Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired</td><td>—</td><td>47</td><td>—</td><td>—</td><td>-17</td><td>30</td></tr><tr><td>Impact of net unrealized investment (gains) losses on future policy benefits</td><td>—</td><td>—</td><td>299</td><td>—</td><td>-105</td><td>194</td></tr><tr><td>Impact of net unrealized investment (gains) losses on policyholders’ dividends</td><td>—</td><td>—</td><td>—</td><td>436</td><td>-153</td><td>283</td></tr><tr><td>Balance, December 31, 2006</td><td>5,103</td><td>-173</td><td>-1,328</td><td>-1,866</td><td>-565</td><td>1,171</td></tr><tr><td>Net investment gains (losses) on investments arising during the period</td><td>-1,322</td><td>—</td><td>—</td><td>—</td><td>433</td><td>-889</td></tr><tr><td>Reclassification adjustment for (gains) losses included in net income</td><td>-756</td><td>—</td><td>—</td><td>—</td><td>248</td><td>-508</td></tr><tr><td>Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired</td><td>—</td><td>55</td><td>—</td><td>—</td><td>-19</td><td>36</td></tr><tr><td>Impact of net unrealized investment (gains) losses on future policy benefits</td><td>—</td><td>—</td><td>86</td><td>—</td><td>-30</td><td>56</td></tr><tr><td>Impact of net unrealized investment (gains) losses on policyholders’ dividends</td><td>—</td><td>—</td><td>—</td><td>820</td><td>-286</td><td>534</td></tr><tr><td>Balance, December 31, 2007</td><td>$3,025</td><td>$-118</td><td>$-1,242</td><td>$-1,046</td><td>$-219</td><td>$400</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> New annualized premiums:</td><td></td><td></td><td></td></tr><tr><td>On an actual exchange rate basis:</td><td></td><td></td><td></td></tr><tr><td>Life Planner operations</td><td>$788</td><td>$767</td><td>$856</td></tr><tr><td>Gibraltar Life</td><td>359</td><td>357</td><td>323</td></tr><tr><td>Total</td><td>$1,147</td><td>$1,124</td><td>$1,179</td></tr><tr><td>On a constant exchange rate basis:</td><td></td><td></td><td></td></tr><tr><td>Life Planner operations</td><td>$821</td><td>$808</td><td>$889</td></tr><tr><td>Gibraltar Life</td><td>382</td><td>377</td><td>329</td></tr><tr><td>Total</td><td>$1,203</td><td>$1,185</td><td>$1,218</td></tr></table>

Question: In which section the sum of Balance, December 31, 2004 has the highest value?
Answer: Net Unrealized Gains (Losses) On Investments(1)