During 2010, we granted 3.8 million RSUs and 1.1 million Employee SARs.
See Footnote No.4, “Share-Based Compensation,” of the Notes to our Financial Statements for additional information.
NEW ACCOUNTING STANDARDS See Footnote No.1, “Summary of Significant Accounting Policies,” of the Notes to our Financial Statements for information related to our adoption of new accounting standards in 2010 and for information on our anticipated adoption of recently issued accounting standards.
LIQUIDITY AND CAPITAL RESOURCES Cash Requirements and Our Credit Facilities Our Credit Facility, which expires on May 14, 2012, and associated letters of credit, provide for $2.4 billion of aggregate effective borrowings.
Borrowings under the Credit Facility bear interest at the London Interbank Offered Rate (LIBOR) plus a fixed spread based on the credit ratings for our public debt.
We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating.
For additional information on our Credit Facility, including participating financial institutions, see Exhibit 10, “Amended and Restated Credit Agreement,” to our Current Report on Form 8-K filed with the SEC on May 16, 2007.
Although our Credit Facility does not expire until 2012, we expect that we may extend or replace it during 2011.
The Credit Facility contains certain covenants, including a single financial covenant that limits our maximum leverage (consisting of Adjusted Total Debt to Consolidated EBITDA, each as defined in the Credit Facility) to not more than 4 to 1.
Our outstanding public debt does not contain a corresponding financial covenant or a requirement that we maintain certain financial ratios.
We currently satisfy the covenants in our Credit Facility and public debt instruments, including the leverage covenant under the Credit Facility, and do not expect the covenants to restrict our ability to meet our anticipated borrowing and guarantee levels or increase those levels should we need to do so in the future.
We believe the Credit Facility, together with cash we expect to generate from operations and our ability to raise capital, remains adequate to meet our short-term and long-term liquidity requirements, finance our long-term growth plans, meet debt service, and fulfill other cash requirements.
At year-end 2010, our available borrowing capacity amounted to $2.831 billion and reflected borrowing capacity of $2.326 billion under our Credit Facility and our cash balance of $505 million.
We calculate that borrowing capacity by taking $2.404 billion of effective aggregate bank commitments under our Credit Facility and subtracting $78 million of outstanding letters of credit under our Credit Facility.
During 2010, we repaid our outstanding Credit Facility borrowings and had no outstanding balance at year-end.
As noted in the previous paragraphs, we anticipate that this available capacity will be adequate to fund our liquidity needs.
Since we continue to have ample flexibility under the Credit Facility’s covenants, we also expect that undrawn bank commitments under the Credit Facility will remain available to us even if business conditions were to deteriorate markedly.
Cash from Operations Cash from operations, depreciation expense, and amortization expense for the last three fiscal years are as follows:
## Table 0 ##
Our ratio of current assets to current liabilities was roughly 1.4 to 1.0 at year-end 2010 and 1.2 to 1.0 at year-end 2009.
We minimize working capital through cash management, strict credit-granting policies, and aggressive collection efforts.
We also have significant borrowing capacity under our Credit Facility should we need additional working capital.
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 4.
Variable Interest Entities — (continued) the credit-linked note if cumulative losses exceeded the subordination of a synthetic reference portfolio.
As of December 31, 2008, the credit default swap entered into by the trust had an outstanding notional amount of $130.0 million.
The credit default swap counterparties of the grantor trusts had no recourse to our assets.
In October 2009, the grantor trust was terminated and we received $122.2 million in cash.
We determined that this grantor trust was a VIE and that we were the primary beneficiary of the trust as we were the sole investor in the trust and the manager of the synthetic reference portfolios.
Upon consolidation of the trust, as of December 31, 2008, our consolidated statements of financial position included $93.5 million of available-for-sale fixed maturity securities, which represented the collateral held by the trust.
The assets of the trust were held by a trustee and could only be liquidated to settle obligations of the trust.
These obligations included losses on the synthetic reference portfolio and the return of investments due to maturity or termination of the trust.
As of December 31, 2008, our consolidated statements of financial position included $53.4 million of other liabilities representing derivative market values of the trust.
During the year December 31, 2008 and 2007, the credit default swaps had a change in fair value that resulted in a $54.5 million pre-tax loss and $3.2 million pre-tax loss, respectively.
During the year ended December 31, 2009, we recognized a pre-tax gain of $49.8 million related to the change in fair value and termination of the credit default swaps.
Grantor Trusts.
We contributed undated subordinated floating rate notes to three grantor trusts.
The trusts separated the cash flows of the underlying $425.9 million par value notes by issuing an interest-only certificate and a residual certificate related to each note contributed.
Each interest-only certificate entitles the holder to interest on the stated note for a specified term while the residual certificate entitles the holder to interest payments subsequent to the term of the interest-only certificate and to all principal payments.
We retained the interest-only certificate and the residual certificates were subsequently sold to a third party.
We have determined that these grantor trusts are VIEs as our interest-only certificates are exposed to the majority of the risk of loss due to interest rate risk.
The restricted interest periods end between 2016 and 2020 and, at that time, the residual certificate holders’ certificates are redeemed by the trust in return for the notes.
We have determined that it will be necessary for us to consolidate these entities until the expiration of the interest-only period.
As of December 31, 2009 and 2008, our consolidated statements of financial position include $226.6 million and $212.2 million, respectively, of undated subordinated floating rate notes of the grantor trusts, which are classified as available-for-sale fixed maturity securities and represent the collateral held by the trust.
The obligation to deliver the underlying securities to the residual certificate holders of $89.1 million and $103.8 million as of December 31, 2009 and 2008, respectively, is classified as an other liability and contains an embedded derivative of the forecasted transaction to deliver the underlying securities.
The creditors of the grantor trusts have no recourse to our assets.
Other.
In addition to the entities above, we have a number of relationships with a disparate group of entities, which meet the criteria for VIEs.
Due to the nature of our direct investment in the equity and/or debt of these VIEs, we are the primary beneficiary of such entities, which requires us to consolidate them.
These entities include five private investment vehicles and several hedge funds.
The consolidation of these VIEs did not have a material effect on either our consolidated statements of financial position as of December 31, 2009 or 2008, or results of operations for the years ended December 31, 2009, 2008 and 2007.
For these entities, the creditors have no recourse to our assets.
The carrying amount and classification of other consolidated VIE assets that are pledged as collateral that the VIEs have designated for their other obligations and the debt of the VIEs are as follows:
## Table 1 ##
The assets of the trusts are held by a trustee and can only be liquidated to settle obligations of the trusts.
These obligations primarily include unrealized losses on derivatives, the synthetic reference portfolios or financial guarantees and the return of investments due to maturity or termination of the trusts.
As of December 31, 2009 and 2008, these
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 5.
Investments — (continued) Each reporting period, all securities are reviewed to determine whether an other-than-temporary decline in value exists and whether losses should be recognized.
We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary.
Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.
Prior to 2009, our ability and intent to hold fixed maturity securities for a period of time that allowed for a recovery in value was considered rather than our intent to sell these securities.
To the extent we determine that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.
Impairment losses on equity securities are recognized in net income and are measured as the difference between amortized cost and fair value.
The way in which impairment losses on fixed maturity securities are now recognized in the financial statements is dependent on the facts and circumstances related to the specific security.
If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, we recognize an other-than-temporary impairment in net income for the difference between amortized cost and fair value.
If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated.
We recognize the credit loss portion in net income and the noncredit loss portion in OCI.
Prior to 2009, other-than-temporary impairments on fixed maturity securities were recorded in net income in their entirety and the amount recognized was the difference between amortized cost and fair value.
We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security.
The present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.
The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security.
The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees.
The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or liquidations using bond specific facts and circumstances including timing, security interests and loss severity.
Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities, were as follows:
## Table 2 ##
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 10.
Debt — (continued) Long-Term Debt The components of long-term debt as of December 31, 2009 and 2008, were as follows:
## Table 3 ##
The amounts included above are net of the discount and premium associated with issuing these notes, which are being amortized to expense over their respective terms using the interest method.
On May 18, 2009, we issued $750.0 million of senior notes.
We issued a $400.0 million series of notes that bear interest at 7.875% and will mature on May 15, 2014, and a $350.0 million series of notes that bear interest at 8.875% and will mature on May 15, 2019.
Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on November 15, 2009.
The proceeds were primarily used to refinance $440.9 million of notes that matured on August 15, 2009, with the remaining proceeds being used for general corporate purposes.
On October 16 and December 5, 2006, we issued $500.0 million and $100.0 million, respectively, of senior notes.
The notes bear interest at a rate of 6.05% per year.
Interest on the notes is payable semi-annually on April 15 and October 15 each year and began on April 15, 2007.
The notes will mature on October 15, 2036.
A portion of the proceeds were used to fund the 2006 acquisition of WM Advisors, Inc. , with the remaining proceeds being used for general corporate purposes.
On November 3, 2005, Principal International de Chile S. A. , a wholly owned indirect subsidiary, entered into long-term borrowing agreements with two Chilean banks in the amount of US $93.9 million.
This debt is denominated in Unidades de Formento (‘‘UF’’), a Chilean inflation-indexed, peso-denominated monetary unit.
Of this amount, US $49.0 million of UF +3.31% notes, which was refinanced from +4.59% during 2007, and US $44.9 million of UF +3.63% notes, which was refinanced from +4.93% in 2007, mature on November 3, 2011.
Interest on the notes is payable semi-annually on May 3 and November 3 each year.
The debt outstanding and interest expense will vary due to fluctuations in the Chilean peso to US dollar exchange rates and Chilean inflation.
On August 25, 1999, Principal Financial Group (Australia) Holdings Pty.
Limited, a wholly owned indirect subsidiary, issued $665.0 million of unsecured redeemable long-term debt.
Principal Financial Group (Australia) Holdings Pty.
Limited used the net proceeds from the notes to partially fund the purchase of the outstanding stock of several companies affiliated with Bankers Trust Australia Group.
On December 28, 2001, all of the long-term debt obligations of Principal Financial Group (Australia) Holdings Pty.
Limited were assumed by its parent, Principal Financial Services, Inc.  Of the original amount issued, $200.0 million of 7.95% notes matured on August 15, 2004, with the remaining $465.0 million in 8.2% notes maturing on August 15, 2009.
The note was paid in full during 2009.
On March 10, 1994, Principal Life issued $100.0 million of surplus notes due March 1, 2044, at an 8% annual interest rate.
None of our affiliates hold any portion of the notes.
Each payment of interest and principal on the notes, however, may be made only with the prior approval of the Commissioner of Insurance of the State of Iowa (the ‘‘Commissioner’’) and only to the extent that Principal Life has sufficient surplus earnings to make such payments.
Interest of $8.0 million for each of the years ended December 31, 2009, 2008 and 2007 was approved by the Commissioner, and charged to expense.
Subject to Commissioner approval, the notes due March 1, 2044, may be redeemed at Principal Life’s election on or after March 1, 2014, in whole or in part at a redemption price of approximately 102.3% of par.
The approximate 2.3% premium is scheduled to gradually diminish over the following ten years.
These notes may be redeemed on or after March 1, 2024, at a redemption price of 100% of the principal amount plus interest accrued to the date of redemption.
The non-recourse mortgages, other mortgages and notes payable are primarily financings for real estate developments.
Outstanding principal balances as of December 31, 2009, ranged from $5.9 million to $9.1 million per
## Table 4 ##
The following tables present the carrying amount and the gross unrealized losses, including other-than-temporary impairment losses reported in OCI, on below investment grade fixed maturity securities available-for-sale by aging category for the time periods indicated.
## Table 5 ##
December 31, 2008
## Table 6 ##
The following tables present the carrying amount and the gross unrealized losses, including other-than-temporary impairment losses reported in OCI, on fixed maturity securities available-for-sale where the estimated fair value has declined and remained below amortized cost by 20% or more as the time periods indicate.

<table><tr><td><i>($ in millions)</i></td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Cash from operations</td><td>$1,151</td><td>$868</td><td>$641</td></tr><tr><td>Depreciation expense</td><td>138</td><td>151</td><td>155</td></tr><tr><td>Amortization expense</td><td>40</td><td>34</td><td>35</td></tr></table>
<table><tr><td> </td><td colspan="2"> December 31,</td></tr><tr><td> </td><td> 2009</td><td> 2008</td></tr><tr><td> </td><td colspan="2"><i>(in millions)</i> </td></tr><tr><td>Fixed maturity securities, available-for-sale</td><td>$59.2</td><td>$103.8</td></tr><tr><td>Fixed maturity securities, trading</td><td>19.8</td><td>17.2</td></tr><tr><td>Equity securities, trading</td><td>90.9</td><td>30.7</td></tr><tr><td>Cash and other assets</td><td>119.8</td><td>140.8</td></tr><tr><td>Total assets pledged as collateral</td><td>$289.7</td><td>$292.5</td></tr><tr><td>Long-term debt and other obligations</td><td>$178.9</td><td>$248.6</td></tr></table>
<table><tr><td></td><td colspan="3">For the year ended December 31,</td></tr><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Fixed maturities, available-for-sale</td><td>$-693.6</td><td>$-432.0</td><td>$-262.8</td></tr><tr><td>Equity securities, available-for-sale</td><td>-20.5</td><td>-47.3</td><td>-51.3</td></tr><tr><td>Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities</td><td>$-714.1</td><td>$-479.3</td><td>$-314.1</td></tr></table>
<table><tr><td> </td><td colspan="2"> December 31,</td></tr><tr><td> </td><td> 2009</td><td> 2008</td></tr><tr><td> </td><td colspan="2"><i>(in millions)</i> </td></tr><tr><td>8.2% notes payable, due 2009</td><td>$—</td><td>$454.9</td></tr><tr><td>3.31% notes payable, due 2011</td><td>61.2</td><td>49.9</td></tr><tr><td>3.63% notes payable, due 2011</td><td>31.4</td><td>25.6</td></tr><tr><td>7.875% notes payable, due 2014</td><td>400.0</td><td>—</td></tr><tr><td>8.875% notes payable, due 2019</td><td>350.0</td><td>—</td></tr><tr><td>6.05% notes payable, due 2036</td><td>601.8</td><td>601.8</td></tr><tr><td>8% surplus notes payable, due 2044</td><td>99.2</td><td>99.2</td></tr><tr><td>Non-recourse mortgages and notes payable</td><td>40.6</td><td>58.7</td></tr><tr><td>Other mortgages and notes payable</td><td>0.4</td><td>0.4</td></tr><tr><td>Total long-term debt</td><td>$1,584.6</td><td>$1,290.5</td></tr></table>
<table><tr><td> </td><td colspan="6"> December 31, 2008</td></tr><tr><td> </td><td colspan="2"> Public</td><td colspan="2"> Private</td><td colspan="2"> Total</td></tr><tr><td> </td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td></tr><tr><td> </td><td colspan="6"><i>(in millions)</i> </td></tr><tr><td>Three months or less</td><td>$3,086.0</td><td>$194.4</td><td>$1,188.1</td><td>$99.5</td><td>$4,274.1</td><td>$293.9</td></tr><tr><td>Greater than three to six months</td><td>4,213.7</td><td>467.9</td><td>1,673.6</td><td>236.4</td><td>5,887.3</td><td>704.3</td></tr><tr><td>Greater than six to nine months</td><td>3,014.0</td><td>620.7</td><td>1,566.6</td><td>290.6</td><td>4,580.6</td><td>911.3</td></tr><tr><td>Greater than nine to twelve months</td><td>2,321.0</td><td>743.0</td><td>1,259.7</td><td>460.1</td><td>3,580.7</td><td>1,203.1</td></tr><tr><td>Greater than twelve to twenty-four months</td><td>3,042.0</td><td>1,507.5</td><td>2,217.1</td><td>1,519.7</td><td>5,259.1</td><td>3,027.2</td></tr><tr><td>Greater than twenty-four to thirty-six months</td><td>1,045.2</td><td>296.1</td><td>312.5</td><td>217.1</td><td>1,357.7</td><td>513.2</td></tr><tr><td>Greater than thirty-six months</td><td>1,363.8</td><td>423.5</td><td>698.2</td><td>265.8</td><td>2,062.0</td><td>689.3</td></tr><tr><td>Total fixed maturity securities, available-for-sale</td><td>$18,085.7</td><td>$4,253.1</td><td>$8,915.8</td><td>$3,089.2</td><td>$27,001.5</td><td>$7,342.3</td></tr></table>
<table><tr><td> </td><td colspan="6"> December 31, 2009</td></tr><tr><td> </td><td colspan="2"> Public</td><td colspan="2"> Private</td><td colspan="2"> Total</td></tr><tr><td> </td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td></tr><tr><td> </td><td colspan="6"><i>(in millions)</i> </td></tr><tr><td>Three months or less</td><td>$55.7</td><td>$3.3</td><td>$52.8</td><td>$1.2</td><td>$108.5</td><td>$4.5</td></tr><tr><td>Greater than three to six months</td><td>3.4</td><td>—</td><td>14.8</td><td>—</td><td>18.2</td><td>—</td></tr><tr><td>Greater than six to nine months</td><td>12.7</td><td>0.2</td><td>0.1</td><td>0.1</td><td>12.8</td><td>0.3</td></tr><tr><td>Greater than nine to twelve months</td><td>32.8</td><td>11.2</td><td>1.0</td><td>1.8</td><td>33.8</td><td>13.0</td></tr><tr><td>Greater than twelve to twenty-four months</td><td>441.3</td><td>112.2</td><td>365.6</td><td>186.7</td><td>806.9</td><td>298.9</td></tr><tr><td>Greater than twenty-four to thirty-six months</td><td>609.0</td><td>314.8</td><td>403.5</td><td>435.8</td><td>1,012.5</td><td>750.6</td></tr><tr><td>Greater than thirty-six months</td><td>113.8</td><td>26.8</td><td>84.6</td><td>76.6</td><td>198.4</td><td>103.4</td></tr><tr><td>Total fixed maturity securities, available-for-sale</td><td>$1,268.7</td><td>$468.5</td><td>$922.4</td><td>$702.2</td><td>$2,191.1</td><td>$1,170.7</td></tr></table>
<table><tr><td> </td><td colspan="6"> December 31, 2008</td></tr><tr><td> </td><td colspan="2"> Public</td><td colspan="2"> Private</td><td colspan="2"> Total</td></tr><tr><td> </td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td></tr><tr><td> </td><td colspan="6"><i>(in millions)</i> </td></tr><tr><td>Three months or less</td><td>$133.1</td><td>$56.5</td><td>$114.6</td><td>$32.1</td><td>$247.7</td><td>$88.6</td></tr><tr><td>Greater than three to six months</td><td>88.8</td><td>12.7</td><td>297.1</td><td>74.3</td><td>385.9</td><td>87.0</td></tr><tr><td>Greater than six to nine months</td><td>102.5</td><td>42.9</td><td>129.1</td><td>46.5</td><td>231.6</td><td>89.4</td></tr><tr><td>Greater than nine to twelve months</td><td>163.0</td><td>65.9</td><td>44.5</td><td>43.7</td><td>207.5</td><td>109.6</td></tr><tr><td>Greater than twelve to twenty-four months</td><td>242.0</td><td>151.7</td><td>351.8</td><td>239.5</td><td>593.8</td><td>391.2</td></tr><tr><td>Greater than twenty-four to thirty-six months</td><td>41.2</td><td>26.1</td><td>13.3</td><td>21.4</td><td>54.5</td><td>47.5</td></tr><tr><td>Greater than thirty-six months</td><td>100.3</td><td>29.7</td><td>100.9</td><td>30.3</td><td>201.2</td><td>60.0</td></tr><tr><td>Total fixed maturity securities, available-for-sale</td><td>$870.9</td><td>$385.5</td><td>$1,051.3</td><td>$487.8</td><td>$1,922.2</td><td>$873.3</td></tr></table>

Question: In which section the sum of Three months or less has the highest value?
Answer: Carrying amount for Total