Input costs for board and resin are expected to be flat and operating costs are expected to decrease.
European Consumer Packaging net sales in 2013 were $380 million compared with $380 million in 2012 and $375 million in 2011.
Operating profits in 2013 were $100 million compared with $99 million in 2012 and $93 million in 2011.
Sales volumes in 2013 decreased from 2012 in both the European and Russian markets.
Average sales price realizations were significantly higher in the Russian market, but were lower in Europe.
Input costs were flat year-over-year.
Planned maintenance downtime costs were higher in 2013 than in 2012.
Looking forward to the first quarter of 2014, sales volumes compared with the fourth quarter of 2013 are expected to be about flat.
Average sales price realizations are expected to be higher in both Russia and Europe.
Input costs are expected to increase for wood and energy, but decrease for purchased pulp.
There are no maintenance outages scheduled for the first quarter, however the Kwidzyn mill will have additional costs associated with the rebuild of a coated board machine.
Asian Consumer Packaging net sales were $1.1 billion in 2013 compared with $830 million in 2012 and $855 million in 2011.
Operating profits in 2013 were a loss of $2 million compared with gains of $4 million in 2012 and $35 million in 2011.
Sales volumes increased in 2013 compared with 2012, reflecting the ramp-up of a new coated paperboard machine installed in 2012.
However, average sales price realizations were significantly lower, reflecting competitive pressure on sales prices which squeezed margins and created an unfavorable product mix.
Lower input costs were offset by higher freight costs.
In 2012, start-up costs for the new coated paperboard machine adversely impacted operating profits.
In the first quarter of 2014, sales volumes are expected to increase slightly.
Average sales price realizations are expected to be flat reflecting continuing competitive pressures.
Input costs are expected be higher for pulp, energy and chemicals.
The business will drive margin improvement through operational excellence and better mix.
Distribution xpedx, our distribution business, is one of North America’s leading business-to-business distributors to manufacturers, facility managers and printers, providing customized solutions that are designed to improve efficiency, reduce costs and deliver results.
Customer demand is generally sensitive to changes in economic conditions and consumer behavior, along with segment specific activity including corporate advertising and promotional spending, government spending and domestic manufacturing activity.
Distribution’s margins are relatively stable across an economic cycle.
Providing customers with the best choice for value in both products and supply chain services is a key competitive factor.
Additionally, efficient customer service, cost-effective logistics and focused working capital management are key factors in this segment’s profitability.
## Table 0 ##
Distribution’s 2013 annual sales decreased 6% from 2012, and decreased 15% from 2011.
Operating profits in 2013 were a loss of $389 million (a gain of $43 million excluding goodwill impairment charges and reorganization costs) compared with $22 million ($71 million excluding reorganization costs) in 2012 and $34 million ($86 million excluding reorganization costs) in 2011.
Annual sales of printing papers and graphic arts supplies and equipment totaled $3.2 billion in 2013 compared with $3.5 billion in 2012 and $4.0 billion in 2011 reflecting declining demand and the discontinuation of a distribution agreement with a large manufacturer of graphic supplies.
Trade margins as a percent of sales for printing papers were down from both 2012 and 2011.
Revenue from packaging products was flat at $1.6 billion in 2013, 2012 and 2011 despite the significant decline of a large high-tech customer's business.
Packaging margins remained flat to the 2012 level, and up from 2011.
Facility supplies annual revenue was $845 million in 2013, down from $944 million in 2012 and $981 million in 2011.
Operating profits in 2013 included a goodwill impairment charge of $400 million and reorganization costs for severance, professional services and asset write-downs of $32 million.
Operating profits in 2012 and 2011 included reorganization costs of $49 million and $52 million, respectively.
Looking ahead to the 2014 first quarter, operating profits will be seasonally lower, but will continue to reflect the benefits of strategic and other cost reduction initiatives.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.
Adjusted operating income is calculated by adjusting each segment’s “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the following items, which are described in greater detail below: ?
realized investment gains (losses), net, and related charges and adjustments; ?
net investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes; ?
the contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down status, but that did not qualify for “discontinued operations” accounting treatment under U. S.  GAAP; and ?
equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests.
These items are important to an understanding of overall results of operations.
Adjusted operating income is not a substitute for income determined in accordance with U. S.  GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies.
However, the Company believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses.
As discussed in Note 1, during 2016, the Company recorded out of period adjustments resulting in an aggregate net decrease of $134 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the year ended December 31, 2016.
These adjustments resulted in a decrease in pre-tax adjusted operating income of $114 million for the year ended December 31, 2016, principally consisting of a net decrease of $153 million for the Individual Life Insurance segment.
In addition, as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2014, during 2014, the Company recorded out of period adjustments resulting in an aggregate net decrease of $193 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures.
” Subsequent to 2014, the Company identified and recorded additional out of period adjustments of $41 million related to 2014, primarily reflecting a benefit from the release of reserves related to certain variable annuities products with optional living benefit guarantees, net of a related decrease in DAC, offset by the increase in reserves, net of a related increase in DAC, for certain universal life products within the Individual Life business.
The impact of these items resulted in a decrease in pre-tax adjusted operating income of $155 million for the year ended December 31, 2014, principally consisting of a net decrease of $77 million for the Group Insurance segment and $72 million for the International Insurance segment.
Realized investment gains (losses), net, and related charges and adjustments Realized investment gains (losses), net Adjusted operating income excludes “Realized investment gains (losses), net,” except for certain items described below.
Significant activity excluded from adjusted operating income includes impairments and credit-related gains (losses) from sales of securities, the timing of which depends largely on market credit cycles and can vary considerably across periods, and interest rate-related gains (losses) from sales of securities, which are largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.
Additionally, adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset liability management program related to the risk of those products.
However, the effectiveness of the hedging program will ultimately be reflected in adjusted operating income over time.
Trends in the underlying profitability of the Company’s businesses can be more clearly identified without the fluctuating effects of these transactions.
The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
## Table 1 ##
(1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below.
Terminated Hedges of Foreign Currency Earnings.
The amounts shown in the table above primarily reflect the impact of an intercompany arrangement between Corporate and Other operations and the International Insurance segment, pursuant to which the
Gibraltar Life sells fixed annuities, denominated in U. S.  and Australian dollars that may be subject to increased surrenders should the yen depreciate in relation to these currencies and interest rates in Australia and the U. S.  decline relative to Japan.
A significant portion of the liabilities associated with these contracts include a market value adjustment feature, which mitigates the profitability impact from surrenders.
As of December 31, 2016, products with a market value adjustment feature represented $23.3 billion of our Japan operations’ insurance-related liabilities, which included $19.1 billion attributable to non-yen denominated fixed annuities.
Liquid Assets Liquid assets include cash and cash equivalents, short-term investments, U. S.  Treasury fixed maturities, fixed maturities that are not designated as held-to-maturity and public equity securities.
In addition to access to substantial investment portfolios, our insurance companies’ liquidity is managed through access to a variety of instruments available for funding and/or managing cash flow mismatches, including from time to time those arising from claim levels in excess of projections.
Our ability to utilize assets and liquidity between our subsidiaries is limited by regulatory and other constraints.
We believe that ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios for each of our insurance subsidiaries.
The following table sets forth the fair value of certain of our domestic insurance operations’ portfolio of liquid assets, including cash and short-term investments, fixed maturity investments other than those designated as held-to-maturity, classified by NAIC or equivalent rating, and public equity securities, as of the dates indicated.
## Table 2 ##
(1) Excludes fixed maturities designated as held-to-maturity.
Classified by NAIC or equivalent rating.
The following table sets forth the fair value of our international insurance operations’ portfolio of liquid assets, including cash and short-term investments, fixed maturity investments other than those designated as held-to-maturity, classified by NAIC or equivalent rating, and public equity securities, as of the dates indicated.
## Table 3 ##
(1) Includes PGFL, a subsidiary of Gibraltar Life.
(2) Represents our international insurance operations, excluding Japan.
(3) Excludes fixed maturities designated as held-to-maturity.
Classified by NAIC or equivalent rating.
(4) As of December 31, 2016, $98.0 billion, or 71%, were invested in government or government agency bonds.
Given the size and liquidity profile of our investment portfolios, we believe that claim experience, including policyholder withdrawals and surrenders, varying from our projections does not constitute a significant liquidity risk.
Our asset/liability management process takes into account the expected maturity of investments and expected claim payments as well as the specific nature and risk profile of the liabilities.
To the extent we need to pay claims in excess of projections, we may borrow temporarily or sell investments sooner than anticipated to pay these claims, which may result in increased borrowing costs or realized investment gains or losses, including from changes in interest rates or credit spreads.
The payment of claims and sale of investments earlier than anticipated would have an impact on the reported level of cash flow from operating, investing, and financing activities, in our financial statements.
Historically, there has been no significant variation between the expected maturities of our investments and the payment of claims.
Liquidity associated with other activities Hedging activities associated with living benefit guarantees For the portion of our Individual Annuities’ risk management strategy executed through hedging, we enter into a range of exchangetraded, cleared and other OTC equity and interest rate derivatives in order to hedge certain capital market risks related to more severe

<table><tr><td>In millions</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Sales</td><td>$5,650</td><td>$6,040</td><td>$6,630</td></tr><tr><td>Operating Profit</td><td>-389</td><td>22</td><td>34</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Net gains (losses) from(1):</td><td></td><td></td><td></td></tr><tr><td>Terminated hedges of foreign currency earnings</td><td>$39</td><td>$284</td><td>$293</td></tr><tr><td>Current period yield adjustments</td><td>$466</td><td>$475</td><td>$476</td></tr><tr><td>Principal source of earnings</td><td>$74</td><td>$123</td><td>$100</td></tr></table>
<table><tr><td></td><td colspan="5">December 31, 2016</td><td></td><td></td></tr><tr><td></td><td>PrudentialInsurance</td><td>PLIC</td><td>PRIAC</td><td>PALAC</td><td>Pruco Life</td><td>Total</td><td>December 31, 2015</td></tr><tr><td></td><td colspan="7">(in billions)</td></tr><tr><td>Cash and short-term investments</td><td>$6.5</td><td>$2.1</td><td>$0.7</td><td>$3.0</td><td>$0.1</td><td>$12.4</td><td>$10.3</td></tr><tr><td>Fixed maturity investments-1:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High or highest quality</td><td>97.6</td><td>33.4</td><td>19.4</td><td>9.1</td><td>5.2</td><td>164.7</td><td>147.5</td></tr><tr><td>Other than high or highest quality</td><td>7.0</td><td>3.6</td><td>1.7</td><td>0.5</td><td>0.4</td><td>13.2</td><td>12.3</td></tr><tr><td>Subtotal</td><td>104.6</td><td>37.0</td><td>21.1</td><td>9.6</td><td>5.6</td><td>177.9</td><td>159.8</td></tr><tr><td>Public equity securities</td><td>0.3</td><td>2.7</td><td>0.0</td><td>0.0</td><td>0.0</td><td>3.0</td><td>3.2</td></tr><tr><td>Total</td><td>$111.4</td><td>$41.8</td><td>$21.8</td><td>$12.6</td><td>$5.7</td><td>$193.3</td><td>$173.3</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2016</td><td></td></tr><tr><td></td><td>Prudentialof Japan</td><td>GibraltarLife-1</td><td>AllOther-2</td><td>Total</td><td>December 31, 2015</td></tr><tr><td></td><td colspan="5">(in billions)</td></tr><tr><td>Cash and short-term investments</td><td>$0.9</td><td>$2.1</td><td>$2.4</td><td>$5.4</td><td>$3.5</td></tr><tr><td>Fixed maturity investments-3:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High or highest quality-4</td><td>33.7</td><td>88.2</td><td>15.9</td><td>137.8</td><td>123.8</td></tr><tr><td>Other than high or highest quality</td><td>0.8</td><td>2.4</td><td>1.1</td><td>4.3</td><td>3.3</td></tr><tr><td>Subtotal</td><td>34.5</td><td>90.6</td><td>17.0</td><td>142.1</td><td>127.1</td></tr><tr><td>Public equity securities</td><td>1.8</td><td>2.3</td><td>0.7</td><td>4.8</td><td>4.6</td></tr><tr><td>Total</td><td>$37.2</td><td>$95.0</td><td>$20.1</td><td>$152.3</td><td>$135.2</td></tr></table>

Question: At December 31, 2016,how much is the value of the Public equity securities for PLIC higher than the value of the Public equity securities for PALAC? (in billion)
Answer: 2.7