ANALOG DEVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Intangible assets are amortized on a straight-line basis over their estimated useful lives or on an accelerated method of amortization that is expected to reflect the estimated pattern of economic use.
The remaining amortization expense will be recognized over a weighted-average period of approximately 0.9 years.
Amortization expense from continuing operations, related to intangibles was $7.4 million, $9.3 million and $9.2 million in fiscal 2009, 2008 and 2007, respectively.
The Company expects annual amortization expense for these intangible assets to be:
## Table 0 ##
g.  Grant Accounting Certain of the Company’s foreign subsidiaries have received various grants from governmental agencies.
These grants include capital, employment and research and development grants.
Capital grants for the acquisition of property and equipment are netted against the related capital expenditures and amortized as a credit to depreciation expense over the useful life of the related asset.
Employment grants, which relate to employee hiring and training, and research and development grants are recognized in earnings in the period in which the related expenditures are incurred by the Company.
h.  Translation of Foreign Currencies The functional currency for the Company’s foreign sales and research and development operations is the applicable local currency.
Gains and losses resulting from translation of these foreign currencies into U. S.  dollars are recorded in accumulated other comprehensive (loss) income.
Transaction gains and losses and remeasurement of foreign currency denominated assets and liabilities are included in income currently, including those at the Company’s principal foreign manufacturing operations where the functional currency is the U. S.  dollar.
Foreign currency transaction gains or losses included in other expenses, net, were not material in fiscal 2009, 2008 or 2007.  i.
Derivative Instruments and Hedging Agreements Foreign Exchange Exposure Management — The Company enters into forward foreign currency exchange contracts to offset certain operational and balance sheet exposures from the impact of changes in foreign currency exchange rates.
Such exposures result from the portion of the Company’s operations, assets and liabilities that are denominated in currencies other than the U. S.  dollar, primarily the Euro; other exposures include the Philippine Peso and the British Pound.
These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature.
The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less.
Hedges related to anticipated transactions are designated and documented at the inception of the respective hedges as cash flow hedges and are evaluated for effectiveness monthly.
Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified.
As the terms of the contract and the underlying transaction are matched at inception, forward contract effectiveness is calculated by comparing the change in fair value of the contract to the change in the forward value of the anticipated transaction, with the effective portion of the gain or loss on the derivative instrument reported as a component of accumulated other comprehensive (loss) income (OCI) in shareholders’ equity and reclassified into earnings in the same period during which the hedged transaction affects earnings.
Any residual change in fair value of the instruments, or ineffectiveness, is recognized immediately in other income/expense.
Additionally, the Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the remeasurement of certain recorded assets and liabilities in a non-functional currency.
Changes in the fair value of these undesignated hedges are recognized in other income/expense immediately as an offset to the changes in the fair value of the asset or liability being hedged.
MetLife, Inc.  Notes to Consolidated Financial Statements — (Continued) reserved for issuance under the 2005 Directors Stock Plan are 2,000,000.
As of December 31, 2007, the aggregate number of shares remaining available for issuance pursuant to the 2005 Stock Plan and the 2005 Directors Stock Plan were 60,862,366 and 1,918,170, respectively.
Stock Option exercises and other stock-based awards to employees settled in shares are satisfied through the issuance of shares held in treasury by the Company.
Under the current authorized share repurchase program, as described previously, sufficient treasury shares exist to satisfy foreseeable obligations under the Incentive Plans.
Compensation expense related to awards under the Incentive Plans is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant.
Unless a material deviation from the assumed rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect differences in actual experience is recognized in the period the award becomes payable or exercisable.
Compensation expense of $145 million, $144 million and $120 million, and income tax benefits of $51 million, $50 million and $42 million, related to the Incentive Plans was recognized for the years ended December 31, 2007, 2006 and 2005, respectively.
Compensation expense is principally related to the issuance of Stock Options, Performance Shares and LTPCP arrangements.
As described in Note 1, the Company changed its policy prospectively for recognizing expense for stock-based awards to retirement eligible employees.
Had the Company continued to recognize expense over the stated requisite service period, compensation expense related to the Incentive Plans would have been $118 million, $116 million and $120 million, rather than $145 million, $144 million and $120 million, for the years ended December 31, 2007, 2006 and 2005, respectively.
Had the Company applied the policy of recognizing expense related to stock-based compensation over the shorter of the requisite service period or the period to attainment of retirement eligibility for awards granted prior to January 1, 2006, pro forma compensation expense would have been $118 million, $120 million and $122 million for the years ended December 31, 2007, 2006 and 2005, respectively.
Stock Options All Stock Options granted had an exercise price equal to the closing price of the Company’s common stock as reported on the New York Stock Exchange on the date of grant, and have a maximum term of ten years.
Certain Stock Options granted under the Stock Incentive Plan and the 2005 Stock Plan have or will become exercisable over a three year period commencing with the date of grant, while other Stock Options have or will become exercisable three years after the date of grant.
Stock Options issued under the Directors Stock Plan were exercisable immediately.
The date at which any Stock Option issued under the 2005 Directors Stock Plan becomes exercisable would be determined at the time such Stock Option is granted.
A summary of the activity related to Stock Options for the year ended December 31, 2007 is presented below.
The aggregate intrinsic value was computed using the closing share price on December 31, 2007 of $61.62 and December 29, 2006 of $59.01, as applicable.
## Table 1 ##
Prior to January 1, 2005, the Black-Scholes model was used to determine the fair value of Stock Options granted and recognized in the financial statements or as reported in the pro forma disclosure which follows.
The fair value of Stock Options issued on or after January 1, 2005 was estimated on the date of grant using a binomial lattice model.
The Company made this change because lattice models produce more accurate option values due to the ability to incorporate assumptions about grantee exercise behavior resulting from changes in the price of the underlying shares.
In addition, lattice models allow for changes in critical assumptions over the life of the option in comparison to closed-form models like Black-Scholes, which require single-value assumptions at the time of grant.
The Company used daily historical volatility since the inception of trading when calculating Stock Option values using the Black-Scholes model.
In conjunction with the change to the binomial lattice model, the Company began estimating expected future volatility based upon an analysis of historical prices of the Holding Company’s common stock and call options on that common stock traded on the open market.
The Company uses a weighted-average of the implied volatility for publicly traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of the Holding Company’s common stock.
The Company chose a monthly measurement interval for historical volatility as it believes this better depicts the nature of employee option exercise decisions being based on longer-term trends in the price of the underlying shares rather than on daily price movements.
The risk-free rate is based on observed interest rates for instruments with maturities similar to the expected term of the Stock Options.
Whereas the Black-Scholes model requires a single spot rate for instruments with a term matching the expected life of the option at the valuation date, the binomial lattice model allows for the use of different rates for each year over the contractual term of the option.
The table
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) Embedded Derivatives The Company has certain embedded derivatives that are required to be separated from their host contracts and accounted for as derivatives.
These host contracts principally include: variable annuities with guaranteed minimum withdrawal, guaranteed minimum accumulation and certain guaranteed minimum income riders; ceded reinsurance contracts related to guaranteed minimum accumulation and certain guaranteed minimum income riders; and guaranteed investment contracts with equity or bond indexed crediting rates.
The following table presents the estimated fair value of the Company’s embedded derivatives at:
## Table 2 ##
The following table presents changes in the estimated fair value related to embedded derivatives:
## Table 3 ##
(1) Effective January 1, 2008, upon adoption of SFAS 157, the valuation of the Company’s guaranteed minimum benefit riders includes an adjustment for the Company’s own credit.
Included in net investment gains (losses) for the year ended December 31, 2008 are gains of $2,994 million in connection with this adjustment.
Credit Risk The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments.
Generally, the current credit exposure of the Company’s derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes.
The Company manages its credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination.
Because exchange traded futures are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments.
See Note 24 for a description of the impact of credit risk on the valuation of derivative instruments.
The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments.
At December 31, 2008 and 2007, the Company was obligated to return cash collateral under its control of $7,758 million and $833 million, respectively.
This unrestricted cash collateral is included in cash and cash equivalents or in short-term investments and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets.
At December 31, 2008 and 2007, the Company had also accepted collateral consisting of various securities with a fair market value of $1,249 million and $678 million, respectively, which are held in separate custodial accounts.
The Company is permitted by contract to sell or repledge this collateral, but at December 31, 2008, none of the collateral had been sold or repledged.
At December 31, 2008 and 2007, the Company provided securities collateral for various arrangements in connection with derivative instruments of $776 million and $162 million, respectively, which is included in fixed maturity securities.
The counterparties are permitted by contract to sell or repledge this collateral.
In addition, the Company has exchange-traded futures, which require the pledging of collateral.
At December 31, 2008 and 2007, the Company pledged securities collateral for exchange-traded futures of $282 million and $167 million, respectively, which is included in fixed maturity securities.
The counterparties are permitted by contract to sell or repledge this collateral.
At December 31, 2008 and 2007, the Company provided cash collateral for exchange-traded futures of $686 million and $102 million, respectively, which is included in premiums and other receivables.
In connection with synthetically created investment transactions and credit default swaps held in relation to the trading portfolio, the Company writes credit default swaps for which it receives a premium to insure credit risk.
If a credit event, as defined by the contract, occurs generally the contract will require the Company to pay the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation.
The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $1,875 million at December 31, 2008.
The Company can terminate these contracts at any time through cash
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) Information about impaired loans, restructured loans, loans 90 days or more past due and loans in foreclosure is as follows:
## Table 4 ##
Real Estate Holdings Real estate holdings by type consisted of the following:
## Table 5 ##
Related depreciation expense on real estate was $135 million, $136 million and $130 million for the years ended December 31, 2009, 2008 and 2007, respectively.
These amounts include $1 million, $1 million and $3 million of depreciation expense related to discontinued operations for the years ended December 31, 2009, 2008 and 2007, respectively.
There were no impairments recognized on real estate held-for-sale for each of the years ended December 31, 2009, 2008 and 2007.
Impairments of real estate and real estate joint ventures held-for-investment were $160 million and $20 million for the years ended December 31, 2009 and 2008, respectively.
There were no impairments of real estate and real estate joint ventures held-for-investment for the year ended December 31, 2007.
The carrying value of non-income producing real estate was $76 million and $28 million at December 31, 2009 and 2008, respectively.
The Company diversifies its real estate holdings by both geographic region and property type to reduce risk of concentration.
The Company’s real estate holdings are primarily located in the United States, and at December 31, 2009, 23%, 13%, 11% and 10% were located in California, Florida, New York and Texas, respectively.
Real estate holdings were categorized as follows:
## Table 6 ##

<table><tr><td>Fiscal Years</td><td>Amortization Expense</td></tr><tr><td>2010</td><td>$5,425</td></tr><tr><td>2011</td><td>$1,430</td></tr></table>
<table><tr><td></td><td></td><td> Weighted </td><td rowspan="3"> Weighted   Average   Remaining   Contractual   Term  (Years)</td><td></td></tr><tr><td></td><td>Shares Under</td><td> Average </td><td rowspan="2"> Aggregate   Intrinsic Value  (In millions)</td></tr><tr><td></td><td>Option</td><td> Exercise Price</td></tr><tr><td>Outstanding at January 1, 2007</td><td>24,891,651</td><td>$34.68</td><td>6.58</td><td>$606</td></tr><tr><td>Granted</td><td>3,297,875</td><td>$62.86</td><td></td><td></td></tr><tr><td>Exercised</td><td>-3,518,083</td><td>$31.33</td><td></td><td></td></tr><tr><td>Cancelled/Expired</td><td>-68,314</td><td>$30.57</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-172,582</td><td>$55.13</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2007</td><td>24,430,547</td><td>$38.83</td><td>6.17</td><td>$557</td></tr><tr><td>Aggregate number of stock options expected to vest at December 31, 2007</td><td>23,845,241</td><td>$38.49</td><td>6.12</td><td>$551</td></tr><tr><td>Exercisable at December 31, 2007</td><td>17,460,955</td><td>$32.83</td><td>5.28</td><td>$503</td></tr></table>
<table><tr><td></td><td colspan="2">December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="2">(In millions)</td></tr><tr><td>Net embedded derivatives within asset host contracts:</td><td></td><td></td></tr><tr><td>Ceded guaranteed minimum benefit riders</td><td>$205</td><td>$6</td></tr><tr><td>Call options in equity securities</td><td>-173</td><td>-16</td></tr><tr><td>Net embedded derivatives within asset host contracts</td><td>$32</td><td>$-10</td></tr><tr><td>Net embedded derivatives within liability host contracts:</td><td></td><td></td></tr><tr><td>Direct guaranteed minimum benefit riders</td><td>$3,134</td><td>$284</td></tr><tr><td>Other</td><td>-83</td><td>52</td></tr><tr><td>Net embedded derivatives within liability host contracts</td><td>$3,051</td><td>$336</td></tr></table>
<table><tr><td></td><td colspan="3"> Years Ended December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td><td> 2006</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>Net investment gains (losses) (1)</td><td>$-2,650</td><td>$-321</td><td>$202</td></tr><tr><td>Policyholder benefits and claims</td><td>$182</td><td>$—</td><td>$—</td></tr></table>
<table><tr><td></td><td colspan="3"> As of and for the   Years Ended December 31,</td></tr><tr><td></td><td> 2009</td><td> 2008</td><td> 2007</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>Impaired loans — average investment during the period</td><td>$338</td><td>$389</td><td>$453</td></tr><tr><td>Impaired loans — interest income recognized — accrual basis</td><td>$1</td><td>$10</td><td>$38</td></tr><tr><td>Impaired loans — interest income recognized — cash basis</td><td>$8</td><td>$12</td><td>$19</td></tr><tr><td>Restructured loans — amount</td><td>$37</td><td>$1</td><td>$2</td></tr><tr><td>Restructured loans — interest income recognized</td><td>$—</td><td>$1</td><td>$1</td></tr><tr><td>Loans 90 days or more past due, interest still accruing — amortized cost</td><td>$14</td><td>$2</td><td>$4</td></tr><tr><td>Loans 90 days or more past due, interest no longer accruing — amortized cost</td><td>$62</td><td>$11</td><td>$28</td></tr><tr><td>Loans in foreclosure — amortized cost</td><td>$91</td><td>$28</td><td>$12</td></tr></table>
<table><tr><td></td><td colspan="4">December 31,</td></tr><tr><td></td><td colspan="2">2009</td><td colspan="2">2008</td></tr><tr><td></td><td>Carrying</td><td>% of</td><td>Carrying</td><td>% of</td></tr><tr><td></td><td>Value</td><td>Total</td><td>Value</td><td>Total</td></tr><tr><td></td><td colspan="4">(In millions)</td></tr><tr><td>Real estate</td><td>$5,435</td><td>78.8%</td><td>$5,351</td><td>70.6%</td></tr><tr><td>Accumulated depreciation</td><td>-1,408</td><td>-20.4</td><td>-1,340</td><td>-17.7</td></tr><tr><td>Net real estate</td><td>4,027</td><td>58.4</td><td>4,011</td><td>52.9</td></tr><tr><td>Real estate joint ventures and funds</td><td>2,698</td><td>39.1</td><td>3,522</td><td>46.4</td></tr><tr><td>Foreclosed real estate</td><td>127</td><td>1.9</td><td>2</td><td>—</td></tr><tr><td>Real estateheld-for-investment</td><td>6,852</td><td>99.4</td><td>7,535</td><td>99.3</td></tr><tr><td>Real estateheld-for-sale</td><td>44</td><td>0.6</td><td>51</td><td>0.7</td></tr><tr><td>Total real estate holdings</td><td>$6,896</td><td>100.0%</td><td>$7,586</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4"> December 31,</td></tr><tr><td></td><td colspan="2">2009</td><td colspan="2"> 2008</td></tr><tr><td></td><td> Carrying </td><td>% of</td><td> Carrying </td><td> % of </td></tr><tr><td></td><td> Value</td><td>Total</td><td> Value</td><td> Total</td></tr><tr><td></td><td colspan="4"> (In millions)</td></tr><tr><td>Office</td><td>$3,557</td><td>52%</td><td>$3,489</td><td>46%</td></tr><tr><td>Apartments</td><td>1,438</td><td>21</td><td>1,602</td><td>21</td></tr><tr><td>Real estate investment funds</td><td>504</td><td>7</td><td>1,080</td><td>14</td></tr><tr><td>Retail</td><td>467</td><td>7</td><td>472</td><td>6</td></tr><tr><td>Industrial</td><td>436</td><td>6</td><td>483</td><td>7</td></tr><tr><td>Hotel</td><td>203</td><td>3</td><td>180</td><td>3</td></tr><tr><td>Land</td><td>110</td><td>1</td><td>155</td><td>2</td></tr><tr><td>Agriculture</td><td>57</td><td>1</td><td>24</td><td>—</td></tr><tr><td>Other</td><td>124</td><td>2</td><td>101</td><td>1</td></tr><tr><td>Total real estate holdings</td><td>$6,896</td><td>100%</td><td>$7,586</td><td>100%</td></tr></table>

Question: Which year is Impaired loans — average investment during the period the least?
Answer: 2009