CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 192 The qualified plan's allocation by asset category is as follows:
## Table 0 ##
The written Pension Plan Investment Policy, set forth by the CFG Retirement Committee, formulates those investment principles and guidelines that are appropriate to the needs and objectives of the Plan, and defines the management, structure, and monitoring procedures adopted for the ongoing operation of the aggregate funds of the Plan.
Stated goals and objectives are: ?
Total return, consistent with prudent investment management, is the primary goal of the Plan.
The nominal rate of return objective should meet or exceed the actuarial rate return target.
In addition, assets of the Plan shall be invested to ensure that principal is preserved and enhanced over time; ?
The total return for the overall Plan shall meet or exceed the Plan’s Policy Index; ?
Total portfolio risk exposure should generally rank in the mid-range of comparable funds.
Risk-adjusted returns are expected to consistently rank in the top-half of comparable funds; and ?
Investment managers shall exceed the return of the designated benchmark index and rank in the top-half of the appropriate asset class and style universe.
The CFG Retirement Committee reviews, at least annually, the assets and net cash flow of the Plan, discusses the current economic outlook and the Plan’s investment strategy with the investment managers, reviews the current asset mix and its compliance with the Policy, and receives and considers statistics on the investment performance of the Plan.
The equity investment mandates follows a global equity approach.
Investments are made in broadly diversified portfolios that contain investments in U. S.  and non-U.
S.  developed and developing economies.
The fixed income investment mandates are US investment grade mandates and follow a long duration investment approach.
Investment in high-yield bonds are not allowed unless an investment grade bond is downgraded to a non-investment grade category.
The assets of the qualified plan may be invested in any or all of the following asset categories: a) Equity-oriented investments: ?
domestic and foreign common and preferred stocks, and related rights, warrants, convertible debentures, and other common share equivalents b) Fixed income-oriented investments: ?
domestic and foreign bonds, debentures and notes ?
mortgages ?
mortgage-backed securities ?
asset-backed securities ?
money market securities or cash ?
financial futures and options on financial futures ?
forward contracts In addition, derivatives may be employed under the guidelines established for individual managers in order to manage risk exposures and/or to increase the efficiency of strategies.
The extent to which derivatives will be utilized will be specified in the investment guidelines for each manager.
The Plan will not be exposed to losses through derivatives that exceed the capital invested.
In selecting the expected long-term rate of return on assets, the Company considers the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of this Plan.
This includes considering the trust’s asset allocation and the expected returns likely to be earned over the life of the Plan.
This basis is consistent with the prior year.
CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT’S DISCUSSION AND ANALYSIS 85 posting of collateral.
As a result of this change, on a prospective basis we modified our balance sheet presentation of certain interest rate swaps in 2017, such that the fair value of the swaps and the associated variation margin balances are reported as a single unit of account in derivative assets and/or derivative liabilities.
At December 31, 2016, these variation margin balances were characterized as collateral.
Variation margin balances characterized as collateral are reported in interest-bearing cash and due from banks on the Consolidated Balance Sheets.
Derivatives designated as hedging instruments We use interest rate swap contracts to manage the interest rate exposure to variability in the interest cash flows on our floating rate assets and floating rate wholesale funding, and to hedge market risk on fixed rate capital markets debt issuances.
The table below summarizes the related hedging activities.
## Table 1 ##
(1) We use receive-fixed swaps to minimize the exposure to variability in the interest cash flows on our floating rate assets.
(2) We use receive-fixed swaps to hedge market risk on fixed rate capital markets debt issuances.
(3) We use pay-fixed swaps to hedge floating rate wholesale funding.
During 2017, we increased our hedge position related to our floating rate commercial loans through the net addition of $1.3 billion in receive-fixed swaps to limit our exposure to declining interest rates.
An additional $1.2 billion in receive-fixed swap were entered into during the year related to the fixed rate senior term debt issued.
This further reduced our exposure to declining interest rates.
We also reduced our position by a net $2.5 billion in pay-fixed swaps during the year related to our floating rate wholesale funding activities.
Derivatives not designated as hedging instruments We enter into derivative contracts (including foreign exchange contracts and interest rate contracts) for the benefit of commercial customers and other business purposes.
We economically hedge significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies.
Credit risk arises from the possible inability of counterparties to meet the terms of their contracts.
Our exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts.
Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures.
We also uses forward commitments to sell TBAs and other commitments to sell residential mortgage loans at specified prices to economically hedge the interest rate risk in its residential mortgage loan activities, including residential loan commitment rate locks.
The tax effects of these temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2005 and 2004 which are included in long-term liabilities are presented below.
## Table 2 ##
As of December 31, 2005, the Company has deferred tax assets of $4.2 billion, which primarily relate to financial and tax losses allocated to Charter from Charter Holdco.
The deferred tax assets include $2.4 billion of tax net operating loss carryforwards (generally expiring in years 2006 through 2025) of Charter and its indirect corporate subsidiaries.
Valuation allowances of $3.7 billion exist with respect to these deferred tax assets of which $1.8 billion relate to the tax net operating loss carryforwards.
Realization of any benefit from the Company’s tax net operating losses is dependent on: (1) Charter and its indirect corporate subsidiaries’ ability to generate future taxable income and (2) the absence of certain future ‘‘ownership changes’’ of Charter’s common stock.
An ‘‘ownership change’’ as defined in the applicable federal income tax rules, would place significant limitations, on an annual basis, on the use of such net operating losses to offset any future taxable income the Company may generate.
Such limitations, in conjunction with the net operating loss expiration provisions, could effectively eliminate the Com- pany’s ability to use a substantial portion of its net operating losses to offset any future taxable income.
Future transactions and the timing of such transactions could cause an ownership change.
Such transactions include additional issuances of com-mon stock by the Company (including but not limited to the issuance of up to a total of 150 million shares of common stock (of which 116.9 million were issued through 2006) under the share lending agreement), the issuance of shares of common stock upon future conversion of Charter’s convertible senior notes and the issuance of common stock in the class action settlement discussed in Note 26, reacquisition of the borrowed shares by Charter, or acquisitions or sales of shares by certain holders of Charter’s shares, including persons who have held, currently hold, or accumulate in the future five percent or more of Charter’s outstanding stock (including upon an exchange by Mr.  Allen or his affiliates, directly or indirectly, of membership units of Charter Holdco into CCI common stock).
Many of the foregoing transactions are beyond management’s control.
The total valuation allowance for deferred tax assets as of December 31, 2005 and 2004 was $3.7 billion and $3.5 billion, respectively.
In assessing the realizability of deferred tax assets,management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized.
Because of the uncertainties in projecting future taxable income of Charter Holdco, valuation allowances have been established except for deferred benefits available to offset certain deferred tax liabilities.
The Company is currently under examination by the Internal Revenue Service for the tax years ending December 31,2002 and 2003.
The Company’s results (excluding Charter and its indirect corporate subsidiaries) for these years are subject to this examination.
Management does not expect the results of this examination to have a material adverse effect on the Company’s consolidated financial condition or results of operations.25.
Related Party Transactions The following sets forth certain transactions in which the Company and the directors, executive officers and affiliates of the Company are involved.
Unless otherwise disclosed, manage-ment believes that each of the transactions described below was on terms no less favorable to the Company than could have been obtained from independent third parties.
Charter is a holding company and its principal assets are its equity interest in Charter Holdco and certain mirror notes payable by Charter Holdco to Charter and mirror preferred units held by Charter, which have the same principal amount and terms as those of Charter’s convertible senior notes and Charter’s outstanding preferred stock.
In 2004, Charter Holdco paid to Charter $49 million related to interest on the mirror notes, and Charter Holdco paid an additional $4 million related to dividends on the mirror preferred membership units.
Further,during 2004 Charter Holdco issued 7,252,818 common member-ship units to Charter in cancellation of $30 million principal amount of mirror notes so as to mirror the issuance by Charter of Class A common stock in exchange for a like principal amount of its outstanding convertible notes.
Charter is a party to management arrangements with Charter Holdco and certain of its subsidiaries.
Under these agreements, Charter provides management services for the cable systems owned or operated by its subsidiaries.
The management services include such services as centralized customer billing services, data processing and related support, benefits adminis- tration and coordination of insurance coverage and self-insur- ance programs for medical, dental and workers’ compensation claims.
Costs associated with providing these services are billed and charged directly to the Company’s operating subsidiaries and are included within operating costs in the accompanying
NEW ACCOUNTING PRONOUNCEMENTS Information regarding new accounting pronouncements is included in Note 1 to the Consolidated Financial Statements.
FINANCIAL CONDITION AND LIQUIDITY The Company generates significant ongoing cash flow.
Increases in long-term debt have been used, in part, to fund share repurchase activities and acquisitions.
On November 15, 2007, 3M (Safety, Security and Protection Services Business) announced that it had entered into a definitive agreement for 3M’s acquisition of 100 percent of the NEW ACCOUNTING PRONOUNCEMENTS Information regarding new accounting pronouncements is included in Note 1 to the Consolidated Financial Statements.
FINANCIAL CONDITION AND LIQUIDITY The Company generates significant ongoing cash flow.
Increases in long-term debt have been used, in part, to fund share repurchase activities and acquisitions.
On November 15, 2007, 3M (Safety, Security and Protection Services Business) announced that it had entered into a definitive agreement for 3M¡¯s acquisition of 100 percent of the outstanding shares of Aearo Holding Corp.  þu a global leader in the personal protection industry that manufactures and markets personal protection and energy absorbing products þu for approximately $1.2 billion.
The sale is expected to close towards the end of the first quarter of 2008.
## Table 3 ##
Cash, cash equivalents and marketable securities at December 31, 2007 totaled approximately $3 billion, helped by strong cash flow generation and by the timing of debt issuances.
At December 31, 2006, cash balances were higher due to the significant pharmaceuticals sales proceeds received in December 2006.3M believes its ongoing cash flows provide ample cash to fund expected investments and capital expenditures.
The Company has sufficient access to capital markets to meet currently anticipated growth and acquisition investment funding needs.
The Company does not utilize derivative instruments linked to the Company¡¯s stock.
However, the Company does have contingently convertible debt that, if conditions for conversion are met, is convertible into shares of 3M common stock (refer to Note 10 in this document).
The Company¡¯s financial condition and liquidity are strong.
Various assets and liabilities, including cash and short-term debt, can fluctuate significantly from month to month depending on short-term liquidity needs.
Working capital (defined as current assets minus current liabilities) totaled $4.476 billion at December 31, 2007, compared with $1.623 billion at December 31, 2006.
Working capital was higher primarily due to increases in cash and cash equivalents, short-term marketable securities, receivables and inventories and decreases in short-term debt and accrued income taxes.
The Company¡¯s liquidity remains strong, with cash, cash equivalents and marketable securities at December 31, 2007 totaling approximately $3 billion.
Primary short-term liquidity needs are provided through U. S.  commercial paper and euro commercial paper issuances.
As of December 31, 2007, outstanding total commercial paper issued totaled $349 million and averaged $1.249 billion during 2007.
The Company believes it unlikely that its access to the commercial paper market will be restricted.
In June 2007, the Company established a medium-term notes program through which up to $3 billion of medium-term notes may be offered, with remaining shelf borrowing capacity of $2.5 billion as of December 31, 2007.
On April 30, 2007, the Company replaced its $565-million credit facility with a new $1.5-billion five-year credit facility, which has provisions for the Company to request an increase of the facility up to $2 billion (at the lenders¡¯ discretion), and providing for up to $150 million in letters of credit.
As of December 31, 2007, there are $110 million in letters of credit drawn against the facility.
At December 31, 2007, available short-term committed lines of credit internationally totaled approximately $67 million, of which $13 million was utilized.
Debt covenants do not restrict the payment of dividends.
The Company has a "well-known seasoned issuer" shelf registration statement, effective February 24, 2006, to register an indeterminate amount of debt or equity securities for future sales.
The Company intends to use the proceeds from future securities sales off this shelf for general corporate purposes.
At December 31, 2007, certain debt agreements ($350 million of dealer remarketable securities and $87 million of ESOP debt) had ratings triggers (BBB-/Baa3 or lower) that would require repayment of debt.
The Company has an AA credit rating, with a stable outlook, from Standard & Poor¡¯s and an Aa1 credit rating, with a negative outlook, from Moody¡¯s Investors Service.
In addition, under the $1.5-billion five-year credit facility agreement, 3M is required to maintain its EBITDA to Interest Ratio as of the end of each fiscal quarter at not less than 3.0 to 1.
This is calculated (as defined in the agreement) as the ratio of consolidated total EBITDA for the four consecutive quarters then ended to total interest expense on all funded debt for the same period.
At December 31, 2007, this ratio was approximately 35 to 1.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td rowspan="2">Target Asset Allocation 2015</td><td colspan="2">Actual Asset Allocation</td></tr><tr><td>Asset Category</td><td>2014</td><td>2013</td></tr><tr><td>Equity securities</td><td>45-55%</td><td>49.0%</td><td>52.6%</td></tr><tr><td>Debt securities</td><td>40-50%</td><td>44.7%</td><td>42.9%</td></tr><tr><td>Other</td><td>0-10%</td><td>6.3%</td><td>4.5%</td></tr><tr><td>Total</td><td></td><td>100.0%</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2017</td><td colspan="4">December 31, 2016</td></tr><tr><td>(dollars in millions)</td><td>Notional Value</td><td>Avg Maturity (Yrs)</td><td>Float Index</td><td>Rate Range Fixed Leg</td><td>Notional Value</td><td>Avg Maturity (Yrs)</td><td>Float Index</td><td>Rate Range Fixed Leg</td></tr><tr><td>Receive-fixed:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash flow - floating rate commercial loans<sup>-1</sup></td><td>$7,600</td><td>2.98</td><td>1mL</td><td>-0.92% - 1.87%</td><td>$6,350</td><td>4.65</td><td>1mL</td><td>-0.88% - 1.84%</td></tr><tr><td>Fair value - senior debt issuance<sup>-2</sup></td><td>5,200</td><td>2.36</td><td>3mL</td><td>-1.06% - 1.92%</td><td>4,000</td><td>2.59</td><td>3mL</td><td>-1.06% - 1.66%</td></tr><tr><td>Total receive-fixed</td><td>12,800</td><td></td><td></td><td></td><td>10,350</td><td></td><td></td><td></td></tr><tr><td>Pay-fixed:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash flow - floating rate wholesale funding<sup>-3</sup></td><td>500</td><td>1.01</td><td>1mL</td><td>1.32%</td><td>3,000</td><td>2.82</td><td>1mL</td><td>-0.91% - 1.98%</td></tr><tr><td>Total pay-fixed</td><td>500</td><td></td><td></td><td></td><td>3,000</td><td></td><td></td><td></td></tr><tr><td>Total</td><td>$13,300</td><td></td><td></td><td></td><td>$13,350</td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td colspan="2">Actual</td><td colspan="2">Minimum Capital Adequacy</td></tr><tr><td>(in millions, except ratio data)</td><td>Amount</td><td>Ratio</td><td>Amount</td><td>Ratio<sup>-5</sup></td></tr><tr><td>As of December 31, 2018</td><td></td><td></td><td></td><td></td></tr><tr><td>Common equity tier 1 capital<sup>-1</sup></td><td>$14,485</td><td>10.6</td><td>$8,683</td><td>6.375%</td></tr><tr><td>Tier 1 capital<sup>-2</sup></td><td>15,325</td><td>11.3</td><td>10,726</td><td>7.875</td></tr><tr><td>Total capital<sup>-3</sup></td><td>18,157</td><td>13.3</td><td>13,450</td><td>9.875</td></tr><tr><td>Tier 1 leverage<sup>-4</sup></td><td>15,325</td><td>10.0</td><td>6,121</td><td>4.000</td></tr><tr><td>As of December 31, 2017</td><td></td><td></td><td></td><td></td></tr><tr><td>Common equity tier 1 capital<sup>-1</sup></td><td>$14,309</td><td>11.2%</td><td>$7,342</td><td>5.750%</td></tr><tr><td>Tier 1 capital<sup>-2</sup></td><td>14,556</td><td>11.4</td><td>9,258</td><td>7.250</td></tr><tr><td>Total capital<sup>-3</sup></td><td>17,781</td><td>13.9</td><td>11,812</td><td>9.250</td></tr><tr><td>Tier 1 leverage<sup>-4</sup></td><td>14,556</td><td>10.0</td><td>5,824</td><td>4.000</td></tr></table>
<table><tr><td>(Millions)</td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Total Debt</td><td>$4,920</td><td>$3,553</td><td>$2,381</td></tr><tr><td>Less: Cash, cash equivalents and marketable securities</td><td>2,955</td><td>2,084</td><td>1,072</td></tr><tr><td>Net Debt</td><td>$1,965</td><td>$1,469</td><td>$1,309</td></tr></table>

Question: What's the average of Net Debt of 2006, and Tier 1 leverage of Actual Amount ?
Answer: 8397
Reasoning program: add(1469.0,15325.0), divide(#0,const_2)