Table of Contents ADOBE INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) certain states and foreign jurisdictions to fully utilize available tax credits and other attributes.
The deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized.
We provide U. S.  income taxes on the earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered permanently reinvested outside the United States or are exempted from taxation as a result of the new territorial tax system.
To the extent that the foreign earnings previously treated as permanently reinvested are repatriated, the related U. S.  tax liability may be reduced by any foreign income taxes paid on these earnings.
As of November 30, 2018, the cumulative amount of earnings upon which U. S.  income taxes have not been provided is approximately $275 million.
The unrecognized deferred tax liability for these earnings is approximately $57.8 million.
As of November 30, 2018, we have net operating loss carryforwards of approximately $881.1 million for federal and $349.7 million for state.
We also have federal, state and foreign tax credit carryforwards of approximately $8.8 million, $189.9 million and $14.9 million, respectively.
The net operating loss carryforward assets and tax credits will expire in various years from fiscal 2019 through 2036.
The state tax credit carryforwards and a portion of the federal net operating loss carryforwards can be carried forward indefinitely.
The net operating loss carryforward assets and certain credits are reduced by the valuation allowance and are subject to an annual limitation under Internal Revenue Code Section 382, the carrying amount of which are expected to be fully realized.
As of November 30, 2018, a valuation allowance of $174.5 million has been established for certain deferred tax assets related to certain state and foreign assets.
For fiscal 2018, the total change in the valuation allowance was $80.9 million.
Accounting for Uncertainty in Income Taxes During fiscal 2018 and 2017, our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
## Table 0 ##
The combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $24.6 million and $23.6 million for fiscal 2018 and 2017, respectively.
These amounts were included in long-term income taxes payable in their respective years.
We file income tax returns in the United States on a federal basis and in many U. S.  state and foreign jurisdictions.
We are subject to the continual examination of our income tax returns by the IRS and other domestic and foreign tax authorities.
Our major tax jurisdictions are Ireland, California and the United States.
For Ireland, California and the United States, the earliest fiscal years open for examination are 2008, 2014 and 2015, respectively.
We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from these examinations.
We believe such estimates to be reasonable; however, there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position.
The timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process.
These events could cause large fluctuations in the balance of short-term and longterm assets, liabilities and income taxes payable.
We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire, or both.
Given the uncertainties described above, we can only determine a range of estimated potential effect in underlying unrecognized tax benefits ranging from $0 to approximately $45 million.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 13—Business Segments (continued)
## Table 1 ##
(1) Reclassification of interest amount due to FIN46R (accounting rule requiring deconsolidation of Trust Preferred Securities).
(2) Administrative expense is not allocated to insurance segments.
(3) Elimination of intersegment commission.
Torchmark holds a sizeable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses.
This yield or investment income is taken into account when establishing premium rates and profitability expectations of its insurance products.
In holding such a portfolio, investments are sold, called, or written down from time to time, resulting in a realized gain or loss.
These gains or losses generally occur as a result of disposition due to issuer calls, a downgrade in credit quality, compliance with Company investment policies, or other reasons often beyond management’s control.
Unlike investment income, realized gains and losses are incidental to insurance operations, and are not considered when setting premium rates or insurance product profitability expectations.
While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income.
For these reasons, management removes realized investment gains and losses when it views its segment operations.
Prior to 2006, management entered into swap derivative contracts to exchange certain of its fixedrate debt securities to floating rates to reduce its interest cost.
For this reason, management views the difference between the floating-rate interest paid and the fixed-rate interest received (the “spread”) as an adjustment to its financing cost in the Investment Segment and has reported it as such in this analysis.
In accordance with current accounting rules, this spread on a non-hedged swap must be included in the same line item as the swap’s change in fair value each period.
Because of this rule, Torchmark includes the spread on all swaps in Realized investment gains and losses in the Consolidated Statements of Operations, as this is the line item that contains the fair value adjustment each period.
markets reverse and market rates increase placing the fixed-income portfolio in an unrealized loss position.
The long-term nature of our insurance policy liabilities and strong cash-flow operating position substantially mitigate any future need to liquidate portions of the portfolio.
The increase in the fair value of insurance liabilities and debt due to declines in market interest rates largely offset the impact of rates on the investment portfolio.
However, in accordance with GAAP, these liabilities are not marked to market.
The following table illustrates the market risk sensitivity of our interest-rate sensitive fixed-maturity portfolio at December 31, 2006 and 2005.
This table measures the effect of a change in interest rates (as represented by the U. S.  Treasury curve) on the fair value of the fixed-maturity portfolio.
The data are prepared through a model which incorporates various assumptions and estimates to measure the change in fair value arising from an immediate and sustained change in interest rates in increments of 100 basis points.
It takes into account the effect that special option features such as call options, put options, and unscheduled repayments could have on the portfolio, given the changes in rates.
The valuation of these option features is dependent upon assumptions about future interest rate volatility that are based on past performance.
## Table 2 ##
Realized Gains and Losses.
As a group of life and health insurance carriers, we collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid many years or even decades in the future.
In addition to the payment of these benefits, we also incur acquisition costs, administrative expenses, and taxes as a part of insurance operations.
Because benefits are expected to be paid in future periods, premium receipts in excess of current expenses are invested to provide for these obligations.
For this reason, we hold a significant investment portfolio as a part of our core insurance operations.
This portfolio consists primarily of high-quality fixed maturities containing an adequate yield to provide for the cost of carrying these long-term insurance product obligations.
As a result, fixed maturities are generally held for long periods to support the liabilities.
Expected yields on these investments are taken into account when setting insurance premium rates and product profitability expectations.
Because our investment portfolio is large and diverse, investments are occasionally sold or called, resulting in a realized gain or loss.
These gains and losses occur only incidentally, usually as the result of sales because of deterioration in investment quality of issuers or calls by the issuers.
Investment losses are also caused by writedowns due to impairments.
We do not engage in trading investments for profit.
Therefore, gains or losses which occur in protecting the portfolio or its yield, or which result from events that are beyond our control, are only secondary to the core insurance operations of providing insurance coverage to policyholders.
Unlike investment income, realized gains and losses are not considered in determining premium rates or product profitability of our insurance products.
Realized gains and losses can be significant in relation to the earnings from core insurance operations, however, and as a result, have a material positive or negative impact on net income.
The significant fluctuations caused by gains and losses can cause period-to-period trends of net income to not be indicative of historical core operating results nor predictive of the future trends of core operations.
Accordingly, they have no bearing on core insurance operations or segment results as we view operations.
For these reasons, we remove the effects of realized gains and losses when evaluating overall insurance operating results.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 1—Significant Accounting Policies (continued) proceeds of $5.1 million after expenses.
The second involved state income tax refunds of $6.7 million related to prior years.
The third settlement related to the Company’s investments in Worldcom, amounting to $6.3 million, and representing a partial recovery of investment losses incurred prior to 2004.
The final settlement involved Federal income tax issues related to prior years, and consisted of a benefit due of $7.4 million.
The litigation receipt related to the disposed subsidiary and the Worldcom receipt were included in “Other income” on the Consolidated Statement of Operations.
The state income tax refunds and the Federal income tax benefit reduced “Income taxes.
” In 2005, Torchmark settled three significant legal matters.
These cases involved Torchmark’s racedistinct mortality/dual-pricing litigation, its class-action cancer case, and its Waddell & Reed litigation.
All of these cases related to litigation arising many years ago.
The Waddell & Reed litigation was settled with Torchmark recording the $13.5 million proceeds net of costs as “Other income.
” The other two settlements resulted in a $15 million pre-tax charge to “Other operating expenses.
” Postretirement Benefits: Torchmark adopted FASB Statement of Financial Accounting Standards (SFAS) No.158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, effective as of December 31, 2006.
This Statement requires Torchmark to recognize the funded status of its postretirement benefit plans on its Consolidated Balance Sheets.
Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are to be recognized as components of other comprehensive income, net of tax.
This Statement does not modify the procedures for measuring plan assets, liabilities, or net periodic benefit cost.
The information required by this Standard is found in Note 9—Postretirement Benefits.
Upon adoption of this Standard, “Accumulated other comprehensive income,” net of tax, was decreased $9 million.
The incremental effect of applying this Statement to affected line items on Torchmark’s Balance Sheet at December 31, 2006 was as follows:

<table><tr><td></td><td>2018</td><td>2017</td></tr><tr><td>Beginning balance</td><td>$172,945</td><td>$178,413</td></tr><tr><td>Gross increases in unrecognized tax benefits – prior year tax positions</td><td>16,191</td><td>3,680</td></tr><tr><td>Gross decreases in unrecognized tax benefits – prior year tax positions</td><td>-4,000</td><td>-30,166</td></tr><tr><td>Gross increases in unrecognized tax benefits – current year tax positions</td><td>60,721</td><td>24,927</td></tr><tr><td>Settlements with taxing authorities</td><td>—</td><td>-3,876</td></tr><tr><td>Lapse of statute of limitations</td><td>-45,922</td><td>-8,819</td></tr><tr><td>Foreign exchange gains and losses</td><td>-3,783</td><td>8,786</td></tr><tr><td>Ending balance</td><td>$196,152</td><td>$172,945</td></tr></table>
<table><tr><td></td><td colspan="8">For the Year 2004</td></tr><tr><td></td><td>Life</td><td>Health</td><td>Annuity</td><td>Investment</td><td>Other</td><td>Corporate</td><td>Adjustments</td><td>Consolidated</td></tr><tr><td>Revenue:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Premium</td><td>$1,395,490</td><td>$1,048,666</td><td>$27,744</td><td></td><td></td><td></td><td></td><td>$2,471,900</td></tr><tr><td>Net investment income</td><td></td><td></td><td></td><td>$576,675</td><td></td><td></td><td>$360-1</td><td>577,035</td></tr><tr><td>Other income</td><td></td><td></td><td></td><td></td><td>$1,833</td><td></td><td>-1,442 (3)</td><td>391</td></tr><tr><td>Total revenue</td><td>1,395,490</td><td>1,048,666</td><td>27,744</td><td>576,675</td><td>1,833</td><td></td><td>-1,082</td><td>3,049,326</td></tr><tr><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policy benefits</td><td>919,775</td><td>697,645</td><td>28,248</td><td></td><td></td><td></td><td></td><td>1,645,668</td></tr><tr><td>Required interest on reserves</td><td>-318,886</td><td>-19,502</td><td>-31,740</td><td>370,128</td><td></td><td></td><td></td><td>-0-</td></tr><tr><td>Amortization of acquisition costs</td><td>369,418</td><td>117,428</td><td>17,211</td><td>-156,808</td><td></td><td></td><td></td><td>347,249</td></tr><tr><td>Commissions and premium tax</td><td>73,006</td><td>78,513</td><td>61</td><td></td><td></td><td></td><td>-1,442 (3)</td><td>150,138</td></tr><tr><td>Insurance administrative expense<sup>-2</sup></td><td></td><td></td><td></td><td></td><td>$141,620</td><td></td><td></td><td>141,620</td></tr><tr><td>Parent expense</td><td></td><td></td><td></td><td></td><td></td><td>$9,575</td><td></td><td>9,575</td></tr><tr><td>Financing costs:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest expense</td><td></td><td></td><td></td><td>56,131</td><td></td><td></td><td>360-1</td><td>56,491</td></tr><tr><td>Benefit from interest rate swaps</td><td></td><td></td><td></td><td>-23,319</td><td></td><td></td><td></td><td>-23,319</td></tr><tr><td>Total expenses</td><td>1,043,313</td><td>874,084</td><td>13,780</td><td>246,132</td><td>141,620</td><td>9,575</td><td>-1,082</td><td>2,327,422</td></tr><tr><td>Measure of segment profitability (pretax)</td><td>$352,177</td><td>$174,582</td><td>$13,964</td><td>$330,543</td><td>$-139,787</td><td>$-9,575</td><td>$-0-</td><td>$721,904</td></tr><tr><td colspan="8">Deduct applicable income taxes</td><td>-248,472</td></tr><tr><td colspan="8">Segment profits after tax</td><td>473,432</td></tr><tr><td colspan="8">Add back income taxes applicable to segment profitability</td><td>248,472</td></tr><tr><td colspan="8">Remove benefit from interest rate swaps (included in “Realized investment gains (losses)”)</td><td>-23,319</td></tr><tr><td colspan="8">Add realized investment gains</td><td>22,216</td></tr><tr><td colspan="8">Pretax income per income statement</td><td>$720,801</td></tr></table>
<table><tr><td></td><td colspan="2"> Market Value of Fixed-Maturity Portfolio ($ millions)</td></tr><tr><td> Change in Interest Rates (in basis points)</td><td> At December 31, 2006</td><td> At December 31, 2005</td></tr><tr><td>-200</td><td>$10,777</td><td>$10,357</td></tr><tr><td>-100</td><td>9,901</td><td>9,568</td></tr><tr><td>0</td><td>9,127</td><td>8,837</td></tr><tr><td>100</td><td>8,439</td><td>8,205</td></tr><tr><td>200</td><td>7,837</td><td>7,615</td></tr></table>

Question: what is the percentage change in total gross amount of unrecognized tax benefits from 2016 to 2017?
Answer: -0.03065