Revenue Recognition The Company’s primary source of revenues is from product sales to its customers.
Revenue from sales of the Company’s products is recognized at the time the goods are delivered, title passes, and the risks and rewards of ownership pass to the customer, provided the earning process is complete and revenue is measurable.
Such recognition generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured.
Delivery is determined by the Company’s shipping terms, which are primarily freight on board (“FOB”) shipping point.
Revenue is recorded at the net amount to be received after deductions for estimated discounts, allowances and returns.
These estimates and related reserves are determined and adjusted as needed based upon historical experience, contract terms and other related factors.
The shipping costs for the majority of the Company’s sales are paid directly by the Company’s customers.
In the broadband communications market (approximately 6% of net sales in 2015), the Company pays for shipping costs to the majority of its customers.
Shipping costs are also paid by the Company for certain customers in the Interconnect Products and Assemblies segment.
Amounts billed to customers related to shipping costs are immaterial and are included in net sales.
Shipping costs incurred to transport products to the customer which are not reimbursed are included in Selling, general and administrative expenses.
Retirement Pension Plans Costs for retirement pension plans include current service costs and amortization of prior service costs over the average working life expectancy.
It is the Company’s policy to fund current pension costs taking into consideration minimum funding requirements and maximum tax deductible limitations.
The expense of retiree medical benefit programs is recognized during the employees’ service with the Company.
The recognition of expense for retirement pension plans and medical benefit programs is significantly impacted by estimates made by management such as discount rates used to value certain liabilities, expected return on assets, mortality projections and future health care costs.
The Company uses third-party specialists to assist management in appropriately measuring the expense and obligations associated with pension and other post-retirement plan benefits.
Stock-Based Compensation The Company accounts for its stock option and restricted share awards based on the fair value of the award at the date of grant and recognizes compensation expense over the service period that the awards are expected to vest.
The Company recognizes expense for stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award.
Stock-based compensation expense includes the estimated effects of forfeitures, and estimates of forfeitures are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ from such estimates.
Changes in estimated forfeitures are recognized in the period of change and also impact the amount of expense to be recognized in future periods.
The Company’s income before income taxes was reduced by $44.2 ($32.9 after tax), $41.4 ($30.3 after tax) and $36.1 ($26.4 after tax) for the years ended December 31, 2015, 2014 and 2013, respectively, related to the expense incurred for stock-based compensation plans, which is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Income.
The fair value of stock options has been estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:
## Table 0 ##
Income Taxes Deferred income taxes are provided for revenue and expenses which are recognized in different periods for income tax and financial statement reporting purposes.
At December 31, 2015, the cumulative amount of undistributed earnings of foreign affiliated companies was approximately $3,699.
Deferred income taxes are not provided on undistributed earnings of foreign affiliated companies as it is the Company’s intention to reinvest these earnings permanently outside the U. S.  It is not practicable to estimate the amount of tax that might be payable if undistributed earnings were to be repatriated as there is a significant amount of uncertainty with respect to the tax impact of the remittance of these earnings due to the fact that dividends received from numerous foreign subsidiaries may generate additional foreign tax credits, which could ultimately reduce the U. S.  tax cost of the dividend.
These uncertainties are further complicated by the significant number of foreign tax jurisdictions and entities involved.
Deferred tax assets are regularly assessed for recoverability based on both historical and anticipated earnings levels and a valuation allowance is recorded when it is more likely than not that these amounts will not be recovered.
The tax effects of an uncertain tax position taken or expected to be taken in income tax returns are recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities,
Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis ($66 million net-of-tax) as a result of customer credits to be realized by electric customers of Entergy Louisiana, consistent with the terms of the stipulated settlement in the business combination proceeding.
See Note 2 to the financial statements for further discussion of the business combination and customer credits.
Results of operations for 2015 also include the sale in December 2015 of the 583 MW Rhode Island State Energy Center for a realized gain of $154 million ($100 million net-of-tax) on the sale and the $77 million ($47 million net-of-tax) write-off and regulatory charges to recognize that a portion of the assets associated with the Waterford 3 replacement steam generator project is no longer probable of recovery.
See Note 14 to the financial statements for further discussion of the Rhode Island State Energy Center sale.
See Note 2 to the financial statements for further discussion of the Waterford 3 replacement steam generator prudence review proceeding.
Net Revenue Utility Following is an analysis of the change in net revenue comparing 2016 to 2015
## Table 1 ##
The retail electric price variance is primarily due to: ?
an increase in base rates at Entergy Arkansas, as approved by the APSC.
The new rates were effective February 24, 2016 and began billing with the first billing cycle of April 2016.
The increase included an interim base rate adjustment surcharge, effective with the first billing cycle of April 2016, to recover the incremental revenue requirement for the period February 24, 2016 through March 31, 2016.
A significant portion of the increase was related to the purchase of Power Block 2 of the Union Power Station; ?
an increase in the purchased power and capacity acquisition cost recovery rider for Entergy New Orleans, as approved by the City Council, effective with the first billing cycle of March 2016, primarily related to the purchase of Power Block 1 of the Union Power Station; ?
an increase in formula rate plan revenues for Entergy Louisiana, implemented with the first billing cycle of March 2016, to collect the estimated first-year revenue requirement related to the purchase of Power Blocks 3 and 4 of the Union Power Station; and ?
an increase in revenues at Entergy Mississippi, as approved by the MPSC, effective with the first billing cycle of July 2016, and an increase in revenues collected through the storm damage rider.
See Note 2 to the financial statements for further discussion of the rate proceedings.
See Note 14 to the financial statements for discussion of the Union Power Station purchase.
The Louisiana business combination customer credits variance is due to a regulatory liability of $107 million recorded by Entergy in October 2015 as a result of the Entergy Gulf States Louisiana and Entergy Louisiana business combination.
Consistent with the terms of the stipulated settlement in the business combination proceeding, electric customers of Entergy Louisiana will realize customer credits associated with the business combination; accordingly, in October 2015, Entergy recorded a regulatory liability of $107 million ($66 million net-of-tax).
These costs are being
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) effect because their option exercise prices are greater than the average market price of the common shares.
No additional securities were outstanding that could potentially dilute basic earnings per share that were not included in the computation of diluted earnings per share.
The following table sets forth the computation of basic and diluted earnings per share for the years ended May 31, 2009, 2008 and 2007:
## Table 2 ##
Stock awards and options— In accordance with FAS 123R Share Based Payment (“FAS 123R”) we expense the fair value of options over the vesting period.
We use the Black-Scholes valuation model to calculate the fair value of share-based awards.
Refer to Note 11 for additional discussion regarding details of our share-based employee compensation plans.
New accounting pronouncements—In December 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No.141 (Revised) Business Combinations (“FAS 141R”).
This statement establishes principles and requirements for how we recognize and measure in our financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree.
In addition, this standard establishes principles and requirements for how we recognize and measure the goodwill acquired in the business combination or gain from a bargain purchase, and how we determine what information to disclose to enable financial statement users to evaluate the nature and financial effects of the business combination.
FAS 141R will become effective for us for business combinations for which the acquisition date is on or after June 1, 2009.
In December 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No.160, Noncontrolling Interests in Consolidated Financial Statements (“FAS 160”).
This statement applies to the accounting for noncontrolling interests (currently referred to as minority interest) in a subsidiary and for the deconsolidation of a subsidiary.
FAS 160 will become effective for us on June 1, 2009.
Upon adoption of FAS 160, minority interests that are not redeemable will be reclassified from the ‘mezzanine’ section of the consolidated balance sheet to permanent equity but separate from parent’s equity.
As further described in Note 13, we have minority interests that include redemption provisions that are not solely within our control, commonly referred to as redeemable minority interests.
At the March 12, 2008 meeting of the FASB Emerging Issues Task Force (“EITF”), certain revisions were made to EITF Topic No.
D-98, Classification and Measurement of Redeemable Securities (“Topic D-98”).
These revisions clarified that Topic D-98 applies to redeemable minority interests and requires that its provisions be applied no later than the effective date of FAS 160.
Upon adoption of this standard and in conjunction with the provisions of Topic D-98, an adjustment for the
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 6.
Investments — (continued) rating is AA+.
The losses on these securities can primarily be attributed to changes in market interest rates and changes in credit spreads since the securities were acquired.
## Table 3 ##
As of December 31, 2006, we held $16,464.3 million in available-for-sale fixed maturity securities with unrealized losses of $308.5 million.
Of these amounts, Principal Life’s consolidated portfolio represented $16,224.8 million in available-for-sale fixed maturity securities with unrealized losses of $299.7 million.
Principal Life’s consolidated portfolio consisted of fixed maturity securities where 98% were investment grade (rated AAA through BBB-) with an average price of 98 (carrying value/amortized cost).
For those securities that had been in a loss position for less than twelve months, Principal Life’s consolidated portfolio held 643 securities with a carrying value of $5,831.9 million and unrealized losses of $49.8 million reflecting an average price of 99.
Of this portfolio, 97% was investment grade (rated AAA through BBB-) at December 31, 2006, with associated unrealized losses of $48.3 million.
The losses on these securities can primarily be attributed to changes in market interest rates and changes in credit spreads since the securities were acquired.
For those securities that had been in a continuous loss position greater than or equal to twelve months, Principal Life’s consolidated portfolio held 1,186 securities with a carrying value of $10,392.9 million and unrealized losses of $249.9 million.
The average rating of this portfolio was A with an average price of 98 at December 31, 2006.
Of the $249.9 million in unrealized losses, the Corporate-public and Corporate-private sectors account for $173.9 million in unrealized losses with an average price of 98 and an average credit rating of BBB+.
The remaining unrealized losses consisted primarily of $68.1 million in unrealized losses within the mortgage-backed and other asset-backed securities sector.
The average price of the mortgage-backed and other asset-backed securities sector was 98 and the average credit rating was AA+.
The losses on these securities can primarily be attributed to changes in market interest rates and changes in credit spreads since the securities were acquired.

Tables referenced above, in order (Table 0 first):
<table><tr><td> </td><td> 2015</td><td> 2014</td><td> 2013</td></tr><tr><td>Risk free interest rate</td><td>1.4%</td><td>1.6%</td><td>0.9%</td></tr><tr><td>Expected life</td><td>4.6 years</td><td>4.6 years</td><td>4.6 years</td></tr><tr><td>Expected volatility</td><td>17.0%</td><td>21.0%</td><td>28.0%</td></tr><tr><td>Expected dividend yield</td><td>1.0%</td><td>1.0%</td><td>1.0%</td></tr></table>
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2015 net revenue</td><td>$5,829</td></tr><tr><td>Retail electric price</td><td>289</td></tr><tr><td>Louisiana business combination customer credits</td><td>107</td></tr><tr><td>Volume/weather</td><td>14</td></tr><tr><td>Louisiana Act 55 financing savings obligation</td><td>-17</td></tr><tr><td>Other</td><td>-43</td></tr><tr><td>2016 net revenue</td><td>$6,179</td></tr></table>
<table><tr><td></td><td> 2009</td><td> 2008</td><td> 2007</td></tr><tr><td></td><td colspan="3"> (in thousands, except per share data)</td></tr><tr><td><i>Basic EPS:</i></td><td></td><td></td><td></td></tr><tr><td>Net income available to common shareholders</td><td>$37,217</td><td>$162,754</td><td>$142,985</td></tr><tr><td>Basic weighted average shares outstanding</td><td>79,718</td><td>79,518</td><td>80,229</td></tr><tr><td>Earnings per share</td><td>$0.47</td><td>$2.05</td><td>$1.78</td></tr><tr><td><i>Diluted EPS:</i></td><td></td><td></td><td></td></tr><tr><td>Net income available to common shareholders</td><td>$37,217</td><td>$162,754</td><td>$142,985</td></tr><tr><td>Basic weighted average shares outstanding</td><td>79,718</td><td>79,518</td><td>80,229</td></tr><tr><td>Plus: dilutive effect of stock options and restricted stock awards</td><td>1,274</td><td>1,461</td><td>1,593</td></tr><tr><td>Diluted weighted average shares outstanding</td><td>80,992</td><td>80,979</td><td>81,822</td></tr><tr><td>Earnings per share</td><td>$0.46</td><td>$2.01</td><td>$1.75</td></tr></table>
<table><tr><td> </td><td colspan="6"> December 31, 2006</td></tr><tr><td> </td><td colspan="2"> Less than twelve months</td><td colspan="2"> Greater than or equal to twelve months</td><td colspan="2"> Total</td></tr><tr><td> </td><td> Carrying value</td><td> Gross unrealized losses</td><td> Carrying value</td><td> Gross unrealized losses</td><td> Carrying value</td><td> Gross unrealized losses</td></tr><tr><td> </td><td colspan="6"><i>(in millions)</i>  </td></tr><tr><td>Fixed maturities, available-for-sale:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. government and agencies</td><td>$32.0</td><td>$0.2</td><td>$320.8</td><td>$3.6</td><td>$352.8</td><td>$3.8</td></tr><tr><td>Non-U.S. governments</td><td>45.9</td><td>0.1</td><td>13.8</td><td>0.3</td><td>59.7</td><td>0.4</td></tr><tr><td>States and political subdivisions</td><td>278.1</td><td>0.7</td><td>347.0</td><td>4.2</td><td>625.1</td><td>4.9</td></tr><tr><td>Corporate — public</td><td>2,697.0</td><td>35.9</td><td>4,617.8</td><td>110.0</td><td>7,314.8</td><td>145.9</td></tr><tr><td>Corporate — private</td><td>1,635.2</td><td>11.4</td><td>2,375.8</td><td>64.3</td><td>4,011.0</td><td>75.7</td></tr><tr><td>Mortgage-backed and other asset-backed securities</td><td>1,349.3</td><td>9.7</td><td>2,751.6</td><td>68.1</td><td>4,100.9</td><td>77.8</td></tr><tr><td>Total fixed maturities, available-for-sale</td><td>$6,037.5</td><td>$58.0</td><td>$10,426.8</td><td>$250.5</td><td>$16,464.3</td><td>$308.5</td></tr><tr><td>Total equity securities, available-for-sale</td><td>$4.5</td><td>$0.3</td><td>$134.0</td><td>$4.3</td><td>$138.5</td><td>$4.6</td></tr></table>

Question: Which section is U.S. government and agencies the highest for Less than twelve months?
Answer: Carrying value