Activity related to the credit component recognized in earnings on debt securities held by the Corporation for which a portion of the other-thantemporary impairment loss remains in OCI for 2009 is as follows:
## Table 0 ##
(1) As of January 1, 2009, the Corporation had securities with $134 million of other-than-temporary impairment previously recognized in earnings of which $22 million represented the credit component and $112 million represented the noncredit component which was reclassified to OCI through a cumulative-effect transition adjustment.
(2) During 2009, the Corporation recognized $2.4 billion of other-than-temporary impairment losses on debt securities in which no portion of other-than-temporary impairment loss remained in OCI.
Other-thantemporary impairment losses related to these securities are excluded from these amounts.
As of December 31, 2009, those debt securities with other-thantemporary impairment for which a portion of the other-than-temporary impairment loss remains in OCI consisted entirely of non-agency residential Mortgage-backed Securities (MBS).
The Corporation estimates the portion of loss attributable to credit using a discounted cash flow model.
The Corporation estimates the expected cash flows of the underlying collateral using internal credit risk, interest rate and prepayment risk models that incorporate management’s best estimate of current key assumptions such as default rates, loss severity and prepayment rates.
Assumptions used can vary widely from loan to loan, and are influenced by such factors as loan interest rate, geographical location of the borrower, borrower characteristics and collateral type.
The Corporation then uses a third party vendor to determine how the underlying collateral cash flows will be distributed to each security issued from the structure.
Expected principal and interest cash flows on the impaired debt security are discounted using the book yield of each individual impaired debt security.
Based on the expected cash flows derived from the model, the Corporation expects to recover the unrealized losses in accumulated OCI on non-agency residential MBS.
Significant assumptions used in the valuation of non-agency residential MBS were as follows at December 31, 2009.
## Table 1 ##
1) Represents the range of inputs/assumptions based upon the underlying collateral.
(2) The value of a variable below which the indicated percentile of observations will fall.
(3) Annual constant prepayment speed.
(4) Loss severity rates are projected considering collateral characteristics such as LTV, creditworthiness of borrowers (FICO score) and geographic concentration.
Weighted-average severity by collateral type was 47 percent for prime bonds, 52 percent for Alt-A bonds and 55 percent for subprime bonds.
(5) Default rates are projected by considering collateral characteristics including, but not limited to LTV, FICO and geographic concentration.
Weighted-average life default rate by collateral type was 36 percent for prime bonds, 56 percent for Alt-A bonds and 65 percent for subprime bonds.
Nonperforming Loans and Leases The following table presents the Corporation’s nonperforming loans and leases, including nonperforming TDRs at December 31, 2009 and 2008.
This table excludes performing TDRs and loans accounted for under the fair value option.
Nonperforming LHFS are excluded from nonperforming loans and leases as they are recorded at the lower of cost or fair value.
In addition, purchased impaired loans and past due consumercredit card, consumer non-real estate-secured loans and leases, and business card loans are not considered nonperforming loans and leases and are therefore excluded from nonperforming loans and leases.
Real estate-secured, past due consumer loans repurchased pursuant to the Corporation’s servicing agreements with GNMA are not reported as nonperforming as repayments are guaranteed by the FHA.
## Table 2 ##
(1) Includes small business commercial – domestic loans of $200 million and $205 million at December 31, 2009 and 2008.
Included in certain loan categories in the nonperforming table above are TDRs that were classified as nonperforming.
At December 31, 2009 and 2008, the Corporation had $2.9 billion and $209 million of residential mortgages, $1.7 billion and $302 million of home equity, $486 million and $44 million of commercial – domestic loans, and $43 million and $5 million of discontinued real estate loans that were TDRs and classified as nonperforming.
In addition to these amounts, the Corporation had performing TDRs that were on accrual status of $2.3 billion and $320 million of residential mortgages, $639 million and $1 million of home equity, $91 million and $13 million of commercial – domestic loans, and $35 million and $66 million of discontinued real estate.
Impaired Loans and Troubled Debt Restructurings A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.
Impaired loans include nonperforming commercial loans, commercial performing TDRs, and both performing and nonperforming consumer real estate TDRs.
As defined in applicable accounting guidance, impaired loans exclude nonperforming consumer loans not modified in a TDR, and all commercial loans and leases accounted for under the fair value option.
Purchased impaired loans are reported and discussed separately below.
At December 31, 2009 and 2008, the Corporation had $12.7 billion and $6.5 billion of commercial impaired loans and $7.7 billion and $903 million of consumer impaired loans.
The average recorded investment in the commercial and consumer impaired loans for 2009, 2008 and 2007 was approximately $15.1 billion, $5.0 billion and $1.2 billion, respectively.
At December 31, 2009 and 2008, the recorded investment in impaired loans requiring an allowance for loan and lease losses was $18.6 billion and $6.9 billion, and the related allowance for loan and lease losses was $3.0 billion and $720 million.
For 2009, 2008 and 2007, interest income recognized on impaired loans totaled $266 million, $105 million and $130 million, respectively.
At December 31, 2009 and 2008, remaining commitments to lend additional funds to debtors whose terms have been modified in a commercial or consumer TDR were immaterial.
The Corporation seeks to assist customers that are experiencing financial difficulty through renegotiating credit card and consumer lending loans while ensuring compliance with Federal Financial Institutions Examination Council (FFIEC) guidelines.
At December 31, 2009 and 2008, the Corporation had renegotiated consumer credit card – domestic held loans of $4.2 billion and $2.3 billion of which $3.1 billion and $1.7 billion were current or less than 30 days past due under the modified terms.
In addition, at December 31, 2009 and 2008, the Corporation had renegotiated consumer credit card – foreign held loans of $898 million and $517 million of which $471 million and $287 million were current or less than 30 days past due under the modified terms, and consumer lending loans of $2.0 billion and $1.3 billion of which $1.5 billion and $854 million were current or less than 30 days past due under the modified terms.
These renegotiated loans are excluded from nonperforming loans.
Purchased Impaired Loans Purchased impaired loans are acquired loans with evidence of credit quality deterioration since origination for which it is probable at purchase date that the Corporation will be unable to collect all contractually required payments.
In connection with the Countrywide acquisition in 2008, the Corporation acquired purchased impaired loans, substantially all of which are residential mortgage, home equity and discontinued real estate, with an unpaid principal balance of $47.7 billion and $55.4 billion and a carrying amount of $37.5 billion and $42.2 billion at December 31, 2009 and 2008.
At December 31, 2009, the unpaid principal balance of Merrill Lynch purchased impaired consumer and commercial loans was $2.4 billion and $2.0 billion and the carrying amount of these loans was $2.1 billion and $692 million.
As of the acquisition date of January 1, 2009, these loans had an unpaid principal balance of $2.7 billion and $2.9 billion and a fair value of $2.3 billion and $1.9 billion.
Nonrecurring Fair Value Certain assets and liabilities are measured at fair value on a nonrecurring basis and are not included in the previous tables in this Note.
These assets and liabilities primarily include LHFS, unfunded loan commitments held-for-sale, and foreclosed properties.
The amounts below represent only balances measured at fair value during the year and still held as of the reporting date.
## Table 3 ##
(1) Gains (losses) represent charge-offs associated with real estate-secured loans that exceed 180 days past due which are netted against the allowance for loan and lease losses.
(2) Amounts are included in other assets on the Consolidated Balance Sheet and represent fair value and related losses of foreclosed properties that were written down subsequent to their initial classification as foreclosed properties.
Fair Value Option Elections Corporate Loans and Loan Commitments The Corporation elected to account for certain large corporate loans and loan commitments which exceeded the Corporation’s single name credit risk concentration guidelines under the fair value option.
Lending commitments, both funded and unfunded, are actively managed and monitored and, as appropriate, credit risk for these lending relationships may be mitigated through the use of credit derivatives, with the Corporation’s credit view and market perspectives determining the size and timing of the hedging activity.
These credit derivatives do not meet the requirements for derivatives designated as hedging instruments and are therefore carried at fair value with changes in fair value recorded in other income.
Electing the fair value option allows the Corporation to carry these loans and loan commitments at fair value, which is more consistent with management’s view of the underlying economics and the manner in which they are managed.
In addition, accounting for these loans and loan commitments at fair value reduces the accounting asymmetry that would otherwise result from carrying the loans at historical cost and the credit derivatives at fair value.
At December 31, 2009 and 2008, funded loans which the Corporation elected to carry at fair value had an aggregate fair value of $4.9 billion and $5.4 billion recorded in loans and leases and an aggregate outstanding principal balance of $5.4 billion and $6.4 billion.
At December 31, 2009 and 2008, unfunded loan commitments that the Corporation has elected to carry at fair value had an aggregate fair value of $950 million and $1.1 billion recorded in accrued expenses and other liabilities and an aggregate committed exposure of $27.0 billion and $16.9 billion.
Interest income on these loans is recorded in interest and fees on loans and leases.
Loans Held-for-Sale The Corporation also elected to account for certain LHFS at fair value.
Electing to use fair value allows a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them.
The Corporation has not elected to fair value other LHFS primarily because these loans are floating rate loans that are not economically hedged using derivative instruments.
At December 31, 2009 and 2008, residential mortgage loans, commercial mortgage loans, and other LHFS for which the fair value option was elected had an aggregate fairvalue of $32.8 billion and $18.9 billion and an aggregate outstanding principal balance of $36.5 billion and $20.7 billion.
Interest income on these loans is recorded in other interest income.
These changes in fair value are mostly offset by hedging activities.
An immaterial portion of these amounts was attributable to changes in instrument-specific credit risk.
Other Assets The Corporation elected the fair value option for certain other assets.
Other assets primarily represents non-marketable convertible preferred shares for which the Corporation has economically hedged a majority of the position with derivatives.
At December 31, 2009, these assets had a fair value of $253 million.
Securities Financing Agreements The Corporation elected the fair value option for certain securities financing agreements.
The fair value option election was made for certain securities financing agreements based on the tenor of the agreements which reflects the magnitude of the interest rate risk.
The majority of securities financing agreements collateralized by U. S.  government securities were excluded from the fair value option election as these contracts are generally short-dated and therefore the interest rate risk is not considered significant.
At December 31, 2009, securities financing agreements for which the fair value option has been elected had an aggregate fair value of $95.1 billion and a principal balance of $94.6 billion.
Long-term Deposits The Corporation elected to fair value certain long-term fixed-rate and ratelinked deposits which are economically hedged with derivatives.
At December 31, 2009 and 2008, these instruments had an aggregate fair value of $1.7 billion for both years ended and principal balance of $1.6 billion and $1.7 billion recorded in interest-bearing deposits.
Interest paid on these instruments continues to be recorded in interest expense.
Election of the fair value option will allow the Corporation to reduce the accounting volatility that would otherwise result from the accounting asymmetry created by accounting for the financial instruments at historical cost and the economic hedges at fair value.
The Corporation did not elect to fair value other financial instruments within the same balance sheet category because they were not economically hedged using derivatives.
Home Equity The Countrywide purchased impaired home equity outstandings were $13.2 billion at December 31, 2009 and comprised 35 percent of the total Countrywide purchased impaired loan portfolio.
Those loans with a refreshed FICO score below 620 represented 21 percent of the Countrywide purchased impaired home equity portfolio at December 31, 2009.
Refreshed CLTVs greater than 90 percent represented 90 percent of the purchased impaired home equity portfolio after consideration of purchase accounting adjustments and 89 percent of the purchased impaired home equity portfolio based on the unpaid principal balance at December 31, 2009.
The table below presents outstandings net of purchase accounting adjustments and net charge-offs had the portfolio not been accounted for as impaired upon acquisition, by certain state concentrations.
## Table 4 ##
(1) Represents additional net charge-offs had the portfolio not been accounted for as impaired upon acquisition.
Discontinued Real Estate The Countrywide purchased impaired discontinued real estate outstandings were $13.3 billion at December 31, 2009 and comprised 35 percent of the total Countrywide purchased impaired loan portfolio.
Those loans with a refreshed FICO score below 620 represented 51 percent of the Countrywide purchased impaired discontinued real estate portfolio at December 31, 2009.
Refreshed LTVs and CLTVs greater than 90 percent represented 52 percent of the purchased impaired discontinued real e estate portfolio after consideration of purchase accounting adjustments.
Refreshed LTVs and CLTVs greater than 90 percent based on the unpaid principal balance represented 80 percent of the purchased impaired discontinued real estate portfolio at December 31, 2009.
The table below presents outstandings net of purchase accounting adjustments and net charge-offs had the portfolio not been accounted for as impaired upon acquisition, by certain state concentrations.
## Table 5 ##
(1) Those loans that were originally classified as discontinued real estate loans upon acquisition and have been subsequently modified are now excluded from amounts shown above.
Charge-offs on these loans prior to modification are included in the amounts shown above consistent with the product classification of the loan at the time of charge-off.
(2) Represents additional net charge-offs had the portfolio not been accounted for as impaired upon acquisition.
Pay option ARMs have interest rates that adjust monthly and minimum required payments that adjust annually (subject to resetting of the loan if minimum payments are made and deferred interest limits are reached).
Annual payment adjustments are subject to a 7.5 percent maximum change.
To ensure that contractual loan payments are adequate to repay a loan, the fully amortizing loan payment amount is re-established after the initial five or 10-year period and again every five years thereafter.
These payment adjustments are not subject to the 7.5 percent limit and may be substantial due to changes in interest rates and the addition of unpaid interest to the loan balance.
Payment advantage ARMs have interest rates that are fixed for an initial period of five years.
Payments are subject to reset if the minimum payments are made and deferred interest limits are reached.
If interest deferrals cause the loan’s principal balance to reach a certain level within the first 10 years of the loans, the payment is reset to the interest-only payment; then at the 10-year point, the fully amortizing payment is required.
The difference between the frequency of changes in the loans’ interest rates and payments along with a limitation on changes in the minimum monthly payments to 7.5 percent per year can result in payments that are not sufficient to pay all of the monthly interest charges (i. e. , negative amortization).
Unpaid interest charges are added to the loan balance until the loan balance increases to a specified limit, which is no more than 115 percent of the original loan amount, at which time a new monthly payment amount adequate to repay the loan over its remaining contractual life is established.
supplies.
Expenses for purchased services increased 10% compared to 2012 due to logistics management fees, an increase in locomotive overhauls and repairs on jointly owned property.
Expenses for contract services increased $103 million in 2012 versus 2011, primarily due to increased demand for transportation services purchased by our logistics subsidiaries for their customers and additional costs for repair and maintenance of locomotives and freight cars.
Depreciation – The majority of depreciation relates to road property, including rail, ties, ballast, and other track material.
Depreciation was up 1% compared to 2012.
Recent depreciation studies allowed us to use longer estimated service lives for certain equipment, which partially offset the impact of a higher depreciable asset base resulting from larger capital spending in recent years.
A higher depreciable asset base, reflecting ongoing capital spending, increased depreciation expense in 2012 compared to 2011.
Equipment and Other Rents – Equipment and other rents expense primarily includes rental expense that the Railroad pays for freight cars owned by other railroads or private companies; freight car, intermodal, and locomotive leases; and office and other rent expenses.
Additional container costs resulting from the logistics management arrangement, and increased automotive shipments, partially offset by lower cycle times drove a $51 million increase in our short-term freight car rental expense versus 2012.
Conversely, lower locomotive and freight car lease expenses partially offset the higher freight car rental expense.
Increased automotive and intermodal shipments, partially offset by improved car-cycle times, drove an increase in our short-term freight car rental expense in 2012 compared to 2011.
Conversely, lower locomotive lease expense partially offset the higher freight car rental expense.
Other – Other expenses include state and local taxes, freight, equipment and property damage, utilities, insurance, personal injury, environmental, employee travel, telephone and cellular, computer software, bad debt, and other general expenses.
Higher property taxes and costs associated with damaged freight and property increased other costs in 2013 compared to 2012.
Continued improvement in our safety performance and lower estimated liability for personal injury, which reduced our personal injury expense year-over-year, partially offset increases in other costs.
Other costs in 2012 were slightly higher than 2011 primarily due to higher property taxes.
Despite continual improvement in our safety experience and lower estimated annual costs, personal injury expense increased in 2012 compared to 2011, as the liability reduction resulting from historical claim experience was less than the reduction in 2011.
Non-Operating Items

<table><tr><td>(Dollars in millions)</td><td> 2009</td></tr><tr><td> Balance, January 1, 2009</td><td>$–</td></tr><tr><td>Credit component of other-than-temporary impairment not reclassified to OCI in connection with the cumulative-effect transitionadjustment<sup>-1</sup></td><td>22</td></tr><tr><td>Additions for the credit component on debt securities on which other-than temporary impairment wasnot previously recognized<sup>-2</sup></td><td>420</td></tr><tr><td> Balance, December 31, 2009</td><td>$442</td></tr></table>
<table><tr><td></td><td></td><td colspan="2"> Range<sup>-1</sup></td><td></td></tr><tr><td></td><td>Weighted- average</td><td>10 th Percentile -2</td><td> 90<sup>th</sup> Percentile<sup>-2</sup></td><td></td></tr><tr><td>Prepayment speed<sup>-3</sup></td><td>14.0%</td><td>3.0%</td><td> 32.7</td><td> %</td></tr><tr><td>Loss severity<sup>-4</sup></td><td>51.0</td><td>21.8</td><td> 61.3</td><td> </td></tr><tr><td>Life default rate<sup>-5</sup></td><td>48.4</td><td>1.1</td><td> 98.7</td><td> </td></tr></table>
<table><tr><td></td><td colspan="2"> December 31</td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td></tr><tr><td> Consumer</td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>$16,596</td><td>$7,057</td></tr><tr><td>Home equity</td><td>3,804</td><td>2,637</td></tr><tr><td>Discontinued real estate</td><td>249</td><td>77</td></tr><tr><td>Direct/Indirect consumer</td><td>86</td><td>26</td></tr><tr><td>Other consumer</td><td>104</td><td>91</td></tr><tr><td> Total consumer</td><td>20,839</td><td>9,888</td></tr><tr><td> Commercial</td><td></td><td></td></tr><tr><td>Commercial – domestic<sup>-1</sup></td><td>5,125</td><td>2,245</td></tr><tr><td>Commercial real estate</td><td>7,286</td><td>3,906</td></tr><tr><td>Commercial lease financing</td><td>115</td><td>56</td></tr><tr><td>Commercial – foreign</td><td>177</td><td>290</td></tr><tr><td> Total commercial</td><td>12,703</td><td>6,497</td></tr><tr><td> Total nonperforming loans and leases</td><td>$33,542</td><td>$16,385</td></tr></table>
<table><tr><td></td><td colspan="3">At and for the Year Ended December 31, 2009</td><td colspan="3">At and for the Year Ended December 31, 2008</td></tr><tr><td>(Dollars in millions)</td><td> Level 2</td><td> Level 3</td><td>(Losses)</td><td>Level 2</td><td>Level 3</td><td>(Losses)</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans held-for-sale</td><td>$2,320</td><td>$7,248</td><td>$-1,288</td><td>$1,828</td><td>$9,782</td><td>$-1,699</td></tr><tr><td>Loans and leases<sup>(</sup><sup>1</sup><sup>)</sup></td><td>7</td><td>8,426</td><td>-4,858</td><td>–</td><td>2,131</td><td>-1,164</td></tr><tr><td>Foreclosed properties<sup>(</sup><sup>2</sup><sup>)</sup></td><td>–</td><td>644</td><td>-322</td><td>–</td><td>590</td><td>-171</td></tr><tr><td>Other assets</td><td>31</td><td>322</td><td>-268</td><td>–</td><td>–</td><td>–</td></tr></table>
<table><tr><td></td><td colspan="2"> Outstandings  December 31</td><td colspan="2"> Purchased Impaired Portfolio Net Charge-offs<sup>-1</sup>  Year Ended December 31</td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td></tr><tr><td>California</td><td>$4,311</td><td>$5,110</td><td>$1,769</td><td>$744</td></tr><tr><td>Florida</td><td>765</td><td>910</td><td>320</td><td>186</td></tr><tr><td>Virginia</td><td>550</td><td>529</td><td>77</td><td>42</td></tr><tr><td>Arizona</td><td>542</td><td>626</td><td>203</td><td>79</td></tr><tr><td>Colorado</td><td>416</td><td>402</td><td>48</td><td>22</td></tr><tr><td>Other U.S./Foreign</td><td>6,630</td><td>6,522</td><td>1,057</td><td>421</td></tr><tr><td> Total Countrywide purchased impaired home equity portfolio</td><td>$13,214</td><td>$14,099</td><td>$3,474</td><td>$1,494</td></tr></table>
<table><tr><td></td><td colspan="2"> Outstandings<sup>-1</sup>  December 31</td><td colspan="2"> Purchased Impaired Portfolio Net Charge-offs<sup>-1, 2</sup>  Year Ended December 31</td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td></tr><tr><td>California</td><td>$7,148</td><td>$9,987</td><td>$1,845</td><td>$1,010</td></tr><tr><td>Florida</td><td>1,315</td><td>1,831</td><td>393</td><td>275</td></tr><tr><td>Arizona</td><td>430</td><td>666</td><td>151</td><td>61</td></tr><tr><td>Washington</td><td>421</td><td>492</td><td>30</td><td>8</td></tr><tr><td>Virginia</td><td>399</td><td>580</td><td>76</td><td>48</td></tr><tr><td>Other U.S./Foreign</td><td>3,537</td><td>4,541</td><td>517</td><td>297</td></tr><tr><td> Total Countrywide purchased impaired discontinued real estate loan portfolio</td><td>$13,250</td><td>$18,097</td><td>$3,012</td><td>$1,699</td></tr></table>

Question: What's the sum of Commercial real estate Commercial of December 31 2008, Other U.S./Foreign of Outstandings December 31 2009, and California of Outstandings December 31 2009 ?
Answer: 12305.0