MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION ?
Interest expense on the Company’s secured debt decreased from $30.8 million in 2001 to $22.9 million in 2002 as the Company paid off $13.5 million of secured debt throughout 2002 and experienced lower borrowings on its secured line of credit during 2002 compared to 2001.
Additionally, the Company paid off approximately $128.5 million of secured debt throughout 2001.  ?
Interest expense on the Company’s $500 million unsecured line of credit decreased by approximately $1.1 million in 2002 compared to 2001 as the Company maintained lower balances on the line throughout most of 2002.
As a result of the above-mentioned items, earnings from Rental Operations decreased $35.0 million from $254.1 million for the year ended December 31, 2001, to $219.1 million for the year ended December 31, 2002.
Service Operations Service Operations primarily consist of leasing, management, construction and development services for joint venture properties and properties owned by third parties.
Service Operations revenues decreased from $80.5 million for the year ended December 31, 2001, to $68.6 million for the year ended December 31, 2002.
The prolonged effect of the slow economy has been the primary factor in the overall decrease in revenues.
The Company experienced a decrease of $12.7 million in net general contractor revenues because of a decrease in the volume of construction in 2002, compared to 2001, as well as slightly lower profit margins.
Property management, maintenance and leasing fee revenues decreased from $22.8 million in 2001 to $14.3 million in 2002 primarily because of a decrease in landscaping maintenance revenue resulting from the sale of the landscaping operations in the third quarter of 2001.
Construction management and development activity income represents construction and development fees earned on projects where the Company acts as the construction manager along with profits from the Company’s held for sale program whereby the Company develops a property for sale upon completion.
The increase in revenues of $10.3 million in 2002 is primarily due to an increase in volume of the sale of properties from the held for sale program.
Service Operations expenses decreased from $45.3 million in 2001 to $38.3 million in 2002.
The decrease is attributable to the decrease in construction and development activity and the reduced overhead costs as a result of the sale of the landscape business in 2001.
As a result of the above, earnings from Service Operations decreased from $35.1 million for the year ended December 31, 2001, to $30.3 million for the year ended December 31, 2002.
General and Administrative Expense General and Administrative Expense increased from $15.6 million in 2001 to $25.4 million for the year ended December 31, 2002.
The Company has been successful reducing total operating and administration costs; however, reduced construction and development activities have resulted in a greater amount of overhead being charged to general and administrative expense instead of being capitalized into development projects or charged to service operations.
Other Income and Expenses Gain on sale of land and depreciable property dispositions, net of impairment adjustment, is comprised of the following amounts in 2002 and 2001:
## Table 0 ##
Gain on sales of depreciable properties represent sales of previously held for investment rental properties.
Beginning in 2000 and continuing into 2001, the Company pursued favorable opportunities to dispose of real estate assets that no longer met long-term investment objectives.
In 2002, the Company significantly reduced this property sales program until the business climate improves and provides better investment opportunities for the sale proceeds.
Gain on land sales represents sales of undeveloped land owned by the Company.
The Company pursues opportunities to dispose of land in markets with a high concentration of undeveloped land and those markets where the land no longer meets strategic development plans of the Company.
The Company recorded a $9.4 million adjustment in 2002 associated with six properties determined to have an impairment of book value.
The Company has analyzed each of its in-service properties and has determined that there are no additional valuation adjustments that need to be made as of December 31, 2002.
The Company recorded an adjustment of $4.8 million in 2001 for one property that the Company had contracted to sell for a price less than its book value.
Other revenue for the year ended December 31, 2002, includes $1.4 million of gain related to an interest rate swap that did not qualify for hedge accounting.
Presented below is the fair value of these instruments as reflected on our balance sheet for the periods presented.
## Table 1 ##
The table below presents as of December 31, 2009, the yen-denominated earnings subject to our dual currency and synthetic dual currency investments and the related weighted average exchange rates resulting from these investments.
## Table 2 ##
(1) Yen amounts are imputed from the contractual U. S.  dollar denominated interest cash flows.
The present value of the earnings reflected in the table above, on a U. S.  dollar denominated basis, is $0.9 billion as of December 31, 2009.
The table above does not reflect the forward currency income hedging program discussed above.
In establishing the level of yen-denominated earnings that will be hedged through the forward currency income hedging program we take into account the anticipated level of U. S.  dollar denominated earnings that will be generated by dual currency and synthetic dual currency investments, as well as the anticipated level of U. S.  dollar denominated earnings that will be generated by U. S.  dollar denominated products and investments, which are discussed in greater detail below.
Impact of foreign currency exchange rate movements on equity Hedges of U. S.  GAAP equity and available economic capital We also seek to mitigate the risk that future unfavorable foreign currency exchange rate movements will reduce our U. S.  dollar equivalent equity in foreign subsidiaries through various hedging strategies.
We are in the process of refining our current capital management framework, which includes available economic capital, as discussed in “—Liquidity and Capital Resources—Prudential Financial—Management of Capital,” and as we further develop this framework, or as other events occur, we may alter this strategy.
Available economic capital represents the excess of the fair value of assets over the fair value of liabilities for the current in force block of business.
In our Japanese insurance operations we currently seek to hedge a portion of estimated available economic capital and other measures of value, including the amount attributable to the U. S.  GAAP equity of our Japanese insurance operations, which totaled $5.4 billion as of December 31, 2009 excluding “Accumulated other comprehensive income” components of equity and certain other adjustments.
We hedge a portion of the estimated available economic capital in our Japanese insurance operations through a variety of instruments, including U. S.  dollar denominated assets.
These assets are financed with yen-denominated liabilities and equity held in our Japanese insurance operations.
In addition, we may also hedge estimated available economic capital using instruments held in our U. S.  domiciled entities, such as U. S.  dollar denominated debt that has been swapped to yen.
In certain of our other foreign insurance operations, the U. S.  GAAP equity exposure is mitigated by entering into forward currency contracts that generally qualify for hedge accounting treatment, and by holding U. S.  dollar denominated investments.
During the second quarter of 2009, we terminated our hedges of the U. S.  GAAP equity exposure of our Korean operations due to a variety of considerations, including a desire to limit the potential for cash settlement outflows that would result from a strengthening Korean won.
As of December 31, 2009, the aggregate amount of the instruments serving as hedges of our estimated available economic capital in our Japanese insurance operations amounted to $7.0 billion, a decrease of $0.8 billion from the $7.8 billion hedged as of December 31, 2008.
These instruments were principally comprised of available for sale U. S.  dollar denominated investments with an amortized cost of $5.4 billion and held to maturity U. S.  dollar denominated investments with an amortized cost of $0.7 billion held in our Japanese insurance operations, as well as $0.8 billion of net yen-denominated liabilities held in our U. S.  domiciled entities, including a portion that has been converted to yen using swaps.
The effects of the yen-denominated liabilities are reported in Corporate and Other operations.
These amounts do not reflect the forward currency income hedging program or dual currency and synthetic dual currency investments discussed above, which when added to the $7.0 billion of instruments serving as an equity hedge of a portion of the estimated available economic capital, results in a total estimated available economic capital hedge of approximately $9.9 billion as of December 31, 2009.
In addition, as discussed below, we have $7.4 billion of U. S.  dollar assets supporting U. S.  dollar liabilities related to U. S.  dollar denominated products issued by our Japanese operations, which when added to the $9.9 billion of total estimated available economic capital hedge, results in total U. S.  dollar instruments of approximately $17.3 billion as of December 31, 2009.
## Table 3 ##
(1) The amount of Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis totaled 6% and 6% for Financial Services Businesses and Closed Block Business, respectively.
Excluding separate account assets for which the risk is borne by the policyholder, the amount of Level 3 assets taken as a percentage of total assets measured at fair value on a recurring basis totaled 4% for our Financial Services Businesses.
The amount of Level 3 liabilities was immaterial to our balance sheet.
(2) “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty.
(3) Separate account assets represent segregated funds that are invested for certain customers.
Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by us with respect to certain accounts.
Separate account assets classified as Level 3 consist primarily of real estate and real estate investment funds.
Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in our Consolidated Statement of Financial Position.
Income Taxes The differences between income taxes expected at the U. S.  federal statutory income tax rate of 21% applicable for 2018 and 35% applicable for the periods prior to 2018, and the reported income tax (benefit) expense are provided in the following table:

<table><tr><td></td><td>2002</td><td>2001</td></tr><tr><td>Gain on sales of depreciable properties</td><td>$4,491</td><td>$45,428</td></tr><tr><td>Gain on land sales</td><td>4,478</td><td>5,080</td></tr><tr><td>Impairment adjustment</td><td>-9,379</td><td>-4,800</td></tr><tr><td>Total</td><td>$-410</td><td>$45,708</td></tr></table>
<table><tr><td></td><td>December 31, 2009</td><td>December 31, 2008</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Cross-currency coupon swap agreements</td><td>$-66</td><td>$12</td></tr><tr><td>Foreign exchange component of interest on dual currency investments</td><td>-100</td><td>-82</td></tr><tr><td>Total</td><td>$-166</td><td>$-70</td></tr></table>
<table><tr><td> Year</td><td> -1 Interest component of dual currency investments</td><td> Cross-currency coupon swap element of synthetic dual currency investments  (in billions)</td><td> Total Yen-denominated earnings subject to these investments</td><td> Weighted average exchange rate per U.S. Dollar  (Yen per $)</td></tr><tr><td>2010</td><td>¥3.6</td><td>¥5.0</td><td>¥8.6</td><td>88.2</td></tr><tr><td>2011</td><td>3.4</td><td>3.9</td><td>7.3</td><td>85.3</td></tr><tr><td>2012</td><td>3.1</td><td>2.9</td><td>6.0</td><td>83.0</td></tr><tr><td>2013-2034</td><td>33.3</td><td>53.5</td><td>86.8</td><td>79.3</td></tr><tr><td>Total</td><td>¥43.4</td><td>¥65.3</td><td>¥108.7</td><td>80.5</td></tr></table>
<table><tr><td></td><td colspan="5"> Closed Block Business as of December 31, 2009</td></tr><tr><td></td><td> Level 1</td><td> Level 2</td><td> Level 3-1</td><td> Netting-2</td><td> Total</td></tr><tr><td></td><td colspan="5"> (in millions)</td></tr><tr><td>Fixed maturities, available for sale:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$—</td><td>$3,645</td><td>$—</td><td>$—</td><td>$3,645</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>—</td><td>586</td><td>—</td><td>—</td><td>586</td></tr><tr><td>Foreign government bonds</td><td>—</td><td>681</td><td>16</td><td>—</td><td>697</td></tr><tr><td>Corporate securities</td><td>—</td><td>27,335</td><td>368</td><td>—</td><td>27,703</td></tr><tr><td>Asset-backed securities</td><td>—</td><td>980</td><td>2,610</td><td>—</td><td>3,590</td></tr><tr><td>Commercial mortgage-backed securities</td><td>—</td><td>3,662</td><td>—</td><td>—</td><td>3,662</td></tr><tr><td>Residential mortgage-backed securities</td><td>—</td><td>2,644</td><td>4</td><td>—</td><td>2,648</td></tr><tr><td>Sub-total</td><td>—</td><td>39,533</td><td>2,998</td><td>—</td><td>42,531</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other trading account assets:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Foreign government bonds</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Corporate securities</td><td>—</td><td>122</td><td>—</td><td>—</td><td>122</td></tr><tr><td>Asset-backed securities</td><td>—</td><td>27</td><td>13</td><td>—</td><td>40</td></tr><tr><td>Commercial mortgage-backed securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Residential mortgage-backed securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Equity Securities</td><td>5</td><td>—</td><td>—</td><td>—</td><td>5</td></tr><tr><td>All other activity</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Sub-total</td><td>5</td><td>149</td><td>13</td><td>—</td><td>167</td></tr><tr><td>Equity securities, available for sale</td><td>2,901</td><td>158</td><td>26</td><td>—</td><td>3,085</td></tr><tr><td>Commercial mortgage and other loans</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other long-term investments</td><td>—</td><td>61</td><td>—</td><td>—</td><td>61</td></tr><tr><td>Short-term investments</td><td>1,017</td><td>321</td><td>—</td><td>—</td><td>1,338</td></tr><tr><td>Cash and cash equivalents</td><td>169</td><td>529</td><td>—</td><td>—</td><td>698</td></tr><tr><td>Other assets</td><td>—</td><td>114</td><td>11</td><td>—</td><td>125</td></tr><tr><td>Sub-total excluding separate account assets</td><td>4,092</td><td>40,865</td><td>3,048</td><td>—</td><td>48,005</td></tr><tr><td>Separate account assets-3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total assets</td><td>$4,092</td><td>$40,865</td><td>$3,048</td><td>$—</td><td>$48,005</td></tr><tr><td>Future policy benefits</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Long-term debt</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other liabilities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total Liabilities</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td></tr></table>

Question: Which element for Level 3-1 exceeds 10% of total in 2009?
Answer: Corporate securities, Asset-backed securities