and penalties, resulting in a liability of $1 million for interest and penalties as of December 31, 2018.
In 2017, there was a net decrease in income tax expense of $1 million for interest and penalties, resulting in no material liability for interest and penalties as of December 31, 2017.
The 2017 changes in interest and penalties related to statute of limitation expirations.
In 2016, there was a net decrease in income tax expense of $2 million for interest and penalties, resulting in a total liability of $1 million for interest and penalties as of December 31, 2016.
The 2016 changes in interest and penalties related to reductions in prior year tax positions and settlement with a taxing authority.
The following table summarizes the tax years that are either currently under examination or remain open under the applicable statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates:
## Table 0 ##
Although the Company believes it has adequately provided for all uncertain tax positions, amounts asserted by taxing authorities could be greater than the Company's accrued position.
Accordingly, additional provisions for federal and state income tax related matters could be recorded in the future as revised estimates are made or the underlying matters are effectively settled or otherwise resolved.
Conversely, the Company could settle positions with the tax authorities for amounts lower than have been accrued.
The Company believes that it is reasonably possible that during the next 12 months the Company's liability for uncertain tax positions may decrease by $14 million due to resolution of a federal uncertain tax position.
During 2013 the Company entered into the pre-Compliance Assurance Process with the IRS for years 2011 and 2012.
The Company is part of the IRS Compliance Assurance Process program for the 2014 through 2018 tax years.
Open tax years related to state jurisdictions remain subject to examination.
Deferred Income Taxes - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes.
As described above, deferred tax assets and liabilities are calculated as of the balance sheet date using current tax laws and rates expected to be in effect when the deferred tax items reverse in future periods.
As a result of the reduction in the corporate income tax rate from 35% to 21% under the Tax Act, the Company revalued its net deferred tax assets as of December 31, 2017.
Net deferred tax assets are classified as long-term deferred tax assets in the consolidated statements of financial position.
Solutions product sales decreased $16 million in 2018, primarily as a result of lower volumes in nuclear and environmental products.
Service revenues in 2018 increased $285 million, or 15%, from 2017.
Service revenues at our Ingalls segment increased $3 million in 2018, as a result of higher volumes in amphibious assault ships services, partially offset by lower volumes in surface combatants services.
Service revenues at our Newport News segment increased $269 million in 2018, primarily as a result of higher volumes in naval nuclear support services and submarines services.
Service revenues at our Technical Solutions segment increased $13 million in 2018, primarily as a result of higher volumes in oil and gas and MDIS services, partially offset by lower volumes in fleet support and nuclear and environmental services.2017 - Product sales in 2017 decreased $58 million, or 1%, from 2016.
Product sales at our Ingalls segment decreased $10 million in 2017, primarily as a result of lower volumes in surface combatants, partially offset by higher volumes in amphibious assault ships.
Newport News product sales increased $20 million in 2017, primarily as a result of higher volumes in aircraft carriers, partially offset by lower volumes in submarines.
Technical Solutions product sales decreased $68 million in 2017, primarily as a result of higher volumes in 2016 from the resolution of outstanding contract changes on a nuclear and environmental commercial contract.
Service revenues in 2017 increased $431 million, or 30%, from 2016.
Service revenues at our Ingalls segment increased $41 million in 2017, as a result of higher volumes in surface combatants services.
Service revenues at our Newport News segment increased $57 million in 2017, primarily as a result of higher volumes in naval nuclear support services and submarines services, partially offset by lower volumes in aircraft carriers services.
Service revenues at our Technical Solutions segment increased $333 million in 2017, primarily as a result of higher volumes in MDIS services following the December 2016 acquisition of Camber and higher volumes in fleet support and oil and gas services.
Cost of Sales and Service Revenues Cost of product sales, cost of service revenues, income from operating investments, net, and general and administrative expenses were as follows:
## Table 1 ##
Cost of Product Sales 2018 - Cost of product sales in 2018 increased $350 million, or 8%, compared to 2017.
Cost of product sales at our Ingalls segment increased $171 million in 2018, primarily as a result of the volume changes described above, lower risk retirement on Tripoli (LHA 7) and the Legend class NSC program, and one time employee bonus payments in 2018 related to the Tax Act.
Cost of product sales at our Newport News segment increased $264 million in 2018, primarily as a result of the volume changes described above, lower risk retirement in the Virginia class (SSN 774) submarine program, and one time employee bonus payments in 2018 related to the Tax Act.
Cost of product sales at our Technical Solutions segment decreased $23 million in 2018, primarily due to the lower volumes described above and an allowance for accounts receivable in 2017 on a nuclear and environmental commercial contract.
Cost of product sales related to the Operating FAS/CAS Adjustment decreased $62 million from 2017 to 2018.
Ingalls
## Table 2 ##
Sales and Service Revenues 2018 - Ingalls revenues, including intersegment sales, increased $187 million, or 8%, in 2018 compared to 2017, primarily driven by higher revenues in amphibious assault ships, partially offset by lower revenues in surface combatants and the Legend class NSC program.
Amphibious assault ships revenues increased as a result of higher volumes on Richard M.  McCool Jr.  (LPD 29), Bougainville (LHA 8), and Fort Lauderdale (LPD 28), partially offset by lower volumes on the delivered USS Portland (LPD 27) and Tripoli (LHA 7).
Surface combatants revenues decreased due to lower volumes on the delivered USS Ralph Johnson (DDG 114), Lenah H.  Sutcliffe Higbee (DDG 123), Paul Ignatius (DDG 117), and the delivered USS John Finn (DDG 113), partially offset by higher volumes on USS Fitzgerald (DDG 62) repair and restoration, Jack H.  Lucas (DDG 125), and Ted Stevens (DDG 128).
Revenues on the Legend class NSC program decreased due to lower volume on USCGC Kimball (NSC 7) and Midgett (NSC 8), as well as lower risk retirement across the NSC program, partially offset by higher volumes on Stone (NSC 9) and NSC 10 (unnamed).2017 - Ingalls revenues, including intersegment sales, increased $31 million, or 1%, in 2017 compared to 2016, primarily driven by higher revenues in amphibious assault ships, partially offset by lower revenues in surface combatants and the Legend class NSC program.
Amphibious assault ships revenues increased as a result of higher volumes on Bougainville (LHA 8) and Fort Lauderdale (LPD 28), partially offset by lower volume on the delivered USS John P.  Murtha (LPD 26) and USS Portland (LPD 27).
Surface combatants revenues decreased due to lower volumes on the delivered USS John Finn (DDG 113), Ralph Johnson (DDG 114), Frank E.  Petersen Jr.  (DDG 121), Paul Ignatius (DDG 117), and Delbert D.  Black (DDG 119), partially offset by higher volumes on Lenah H.  Sutcliffe Higbee (DDG 123), Jack H.  Lucas (DDG 125), and the extended selected restricted availability contract for USS Ramage (DDG 61).
Revenues on the Legend class NSC program decreased due to lower volume on the delivered USCGC Munro (NSC 6), partially offset by higher volumes on Stone (NSC 9) and Midgett (NSC 8).
Segment Operating Income 2018 - Ingalls operating income remained stable from 2017 to 2018 at $313 million, as recoveries related to a settlement agreement, higher risk retirement on Arleigh Burke class (DDG 51) destroyers, and the higher volumes described above were offset by lower risk retirement on Tripoli (LHA 7) and the Legend class NSC program.2017 - Ingalls operating income in 2017 was $313 million, compared to income of $321 million in 2016.
The decrease was primarily due to lower risk retirement on the delivered USS John P.  Murtha (LPD 26) and Arleigh Burke class (DDG 51) destroyers, partially offset by higher risk retirement on Tripoli (LHA 7) and USS Portland (LPD 27).
Newport News

Tables referenced above, in order (Table 0 first):
<table><tr><td>Jurisdiction</td><td>Years</td></tr><tr><td>United States<sup>-1</sup></td><td>2011</td><td>-</td><td>2017</td></tr><tr><td>Connecticut</td><td>2016</td><td>-</td><td>2017</td></tr><tr><td>Mississippi</td><td>2012</td><td>-</td><td>2017</td></tr><tr><td>Virginia<sup>-1</sup></td><td>2011</td><td>-</td><td>2017</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31</td><td colspan="2">2018 over 2017</td><td colspan="2">2017 over 2016</td></tr><tr><td>($ in millions)</td><td>2018</td><td>2017</td><td>2016</td><td>Dollars</td><td>Percent</td><td>Dollars</td><td>Percent</td></tr><tr><td>Cost of product sales</td><td>$4,627</td><td>$4,277</td><td>$4,237</td><td>$350</td><td>8%</td><td>$40</td><td>1%</td></tr><tr><td>% of product sales</td><td>76.8%</td><td>76.7%</td><td>75.2%</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of service revenues</td><td>1,758</td><td>1,536</td><td>1,208</td><td>222</td><td>14%</td><td>328</td><td>27%</td></tr><tr><td>% of service revenues</td><td>81.7%</td><td>82.2%</td><td>84.1%</td><td></td><td></td><td></td><td></td></tr><tr><td>Income from operating investments, net</td><td>17</td><td>12</td><td>6</td><td>5</td><td>42%</td><td>6</td><td>100%</td></tr><tr><td>Other income and gains</td><td>14</td><td>—</td><td>15</td><td>14</td><td>—%</td><td>-15</td><td>-100%</td></tr><tr><td>General and administrative expenses</td><td>871</td><td>759</td><td>768</td><td>112</td><td>15%</td><td>-9</td><td>-1%</td></tr><tr><td>% of total sales and service revenues</td><td>10.7%</td><td>10.2%</td><td>10.9%</td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of sales and service revenues</td><td>$7,225</td><td>$6,560</td><td>$6,192</td><td>$665</td><td>10%</td><td>$368</td><td>6%</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31</td><td colspan="2">2018 over 2017</td><td colspan="2">2017 over 2016</td></tr><tr><td>($ in millions)</td><td>2018</td><td>2017</td><td>2016</td><td>Dollars</td><td>Percent</td><td>Dollars</td><td>Percent</td></tr><tr><td>Sales and service revenues</td><td>$2,607</td><td>$2,420</td><td>$2,389</td><td>$187</td><td>8%</td><td>$31</td><td>1%</td></tr><tr><td>Segment operating income</td><td>313</td><td>313</td><td>321</td><td>—</td><td>—%</td><td>-8</td><td>-2%</td></tr><tr><td>As a percentage of segment sales</td><td>12.0%</td><td>12.9%</td><td>13.4%</td><td></td><td></td><td></td><td></td></tr></table>

Question: what is the liability for interest and penalties as of december 31 , 2016?
Answer: 1
Reasoning program: add(1,2), subtract(#0,2)