MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) Performance Share amounts above represent aggregate initial target awards and do not reflect potential increases or decreases resulting from the final performance factor to be determined at the end of the respective performance period.
At December 31, 2009, the three year performance period for the 2007 Performance Share grants was completed.
Included in the immediately preceding table are 801,750 outstanding Performance Shares to which the final performance factor will be applied.
The calculation of the performance factor is expected to be finalized during the second quarter of 2010 after all data necessary to perform the calculation is publicly available.
Performance Share awards are accounted for as equity awards but are not credited with dividend-equivalents for actual dividends paid on the Holding Company’s common stock during the performance period.
Accordingly, the estimated fair value of Performance Shares is based upon the closing price of the Holding Company’s common stock on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.
Compensation expense related to initial Performance Shares granted prior to January 1, 2006 and expected to vest is recognized ratably during the performance period.
Compensation expense related to initial Performance Shares granted on or after January 1, 2006 and expected to vest is recognized ratably over the performance period or the period to retirement eligibility, if shorter.
Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period.
Compensation expense of $11 million, $70 million and $90 million, related to Performance Shares was recognized for the years ended December 31, 2009, 2008 and 2007, respectively.
At December 31, 2009, there was $29 million of total unrecognized compensation costs related to Performance Share awards.
It is expected that these costs will be recognized over a weighted average period of 1.52 years.
Restricted Stock Units Beginning in 2005, certain members of management were awarded Restricted Stock Units under (and as defined in) the 2005 Stock Plan.
Restricted Stock Unit awards will normally vest on the third or later anniversary of the date of the award (subject to certain contingencies) and each unit will be primarily payable entirely in shares of the Holding Company’s common stock.
During the year ended December 31, 2009, the Holding Company granted 295,000 Restricted Stock Units for which the total fair value on the date of grant was $6 million.
The number of Restricted Stock Units outstanding at December 31, 2009 was 393,362 with a weighted average fair value of $28.05 per unit.
The following is a summary of Restricted Stock Unit activity for the year ended December 31, 2009:
## Table 0 ##
Compensation expense related to Restricted Stock Units granted on or after January 1, 2006 and expected to vest is recognized ratably over a three year period or the period to retirement eligibility, if shorter.
Compensation expense of $3 million, $2 million and $1 million related to Restricted Stock Units was recognized for the year ended December 31, 2009, 2008 and 2007 respectively.
At December 31, 2009, there was $5 million of total unrecognized compensation costs related to Restricted Stock Units.
It is expected that these costs will be recognized over a weighted average period of 1.83 years.
Long-Term Performance Compensation Plan Prior to January 1, 2005, the Holding Company granted stock-based compensation awards to certain members of management under the Long-Term Performance Compensation Plan (“LTPCP”).
The final LTPCP performance period concluded during 2007.
The awards for the final LTPCP performance period, in the amount of 618,375 shares of the Holding Company’s common stock and $16 million in cash, were paid during 2007.
No significant compensation expense related to LTPCP was recognized during the year ended December 31, 2007.
Statutory Equity and Income Each insurance company’s state of domicile imposes minimum risk-based capital (“RBC”) requirements that were developed by the NAIC.
The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk.
Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC.
Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action.
Each of the Holding Company’s U. S.  insurance subsidiaries exceeded the minimum RBC requirements for all periods presented herein.
The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”).
Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments.
However, statutory accounting principles continue to be established by individual state laws and permitted practices.
The New York Insurance Department has adopted Statutory Codification with certain modifications for the preparation of statutory financial statements of insurance companies domiciled in New York.
Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of the Holding Company’s insurance subsidiaries.
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a different basis.
In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus.
The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years.
Further, statutory accounting principles do not give recognition to purchase accounting adjustments.
Statutory net income (loss) of Metropolitan Life Insurance Company, a New York domiciled insurer, was $1,221 million, ($338) million and $2,123 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Department, was $12.6 billion and $11.6 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MetLife Insurance Company of Connecticut, a Connecticut domiciled insurer, was $81 million, $242 million and $1,101 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Connecticut Insurance Department, was $4.9 billion and $5.5 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MPC, a Rhode Island domiciled insurer, was $266 million, $308 million and $400 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Insurance Department of Rhode Island, was $1.8 billion at both December 31, 2009 and 2008.
Statutory net income of Metropolitan Tower and Life Insurance Company (“MTL”), a Delaware domiciled insurer, was $57 million, $212 million and $103 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Delaware Insurance Department was $867 million and $885 million at December 31, 2009 and 2008, respectively.
Dividend Restrictions The table below sets forth the dividends permitted to be paid by the respective insurance subsidiary without insurance regulatory approval and the respective dividends paid:
## Table 1 ##
(1) Reflects dividend amounts that may be paid during 2010 without prior regulatory approval.
However, if paid before a specified date during 2010, some or all of such dividends may require regulatory approval.
(2) All amounts paid, including those requiring regulatory approval.
(3) Reflects dividend amounts that could have been paid during the relevant year without prior regulatory approval.
(4) As described in Note 2, consists of shares of RGA stock distributed by MLIC to the Holding Company as an in-kind dividend of $1,318 million.
(5) Includes shares of an affiliate distributed to the Holding Company as an in-kind dividend in the amount of $164 million.
In addition to the amounts presented in the table above, for the years ended December 31, 2009 and 2008, cash dividends in the amount of $215 million and $235 million, respectively, were paid to the Holding Company.
Under New York State Insurance Law, MLIC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to the Holding Company as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains).
MLIC will be permitted to pay a dividend to the Holding Company in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the Superintendent and the Superintendent does not disapprove the distribution within 30 days of its filing.
Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its shareholders.
The New York State Department of Insurance (the “Department”) has established informal guidelines for such determinations.
The guidelines, among other things, focus on the insurer’s overall financial condition and profitability under statutory accounting practices.
Under Connecticut State Insurance Law, MICC is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to its stockholders as long as the amount of such dividends, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year.
MICC will be permitted to pay a dividend in excess of the greater of such two amounts only if it files notice of its declaration of such a dividend and the amount thereof with the Connecticut Commissioner of Insurance (the “Connecticut Commissioner”) and the Connecticut Commissioner does not disapprove the payment within 30 days after notice.
In addition, any dividend that exceeds earned surplus (unassigned funds, reduced by 25% of unrealized appreciation in value or revaluation of assets or unrealized profits on investments) as of the last filed annual statutory statement requires insurance regulatory approval.
Under
The composition of the investment portfolio of each business segment is tailored to the unique characteristics of its insurance liabilities, causing certain portfolios to be shorter in duration and others to be longer in duration.
Accordingly, certain portfolios are more heavily weighted in fixed maturity securities, or certain sub-sectors of fixed maturity securities, than other portfolios.
Investments are purchased to support our insurance liabilities and not to generate net investment gains and losses.
However, net investment gains and losses are generated and can change significantly from period to period, due to changes in external influences including movements in interest rates, foreign currencies and credit spreads, counterparty specific factors such as financial performance, credit rating and collateral valuation, and internal factors such as portfolio rebalancing that can generate gains and losses.
As an investor in the fixed income, equity security, mortgage loan and certain other invested asset classes, we are exposed to the above stated risks, which can lead to both impairments and credit-related losses.
The unfavorable variance in net investment gains (losses) of $5.2 billion, net of related adjustments, was primarily driven by losses on freestanding derivatives, partially offset by gains on embedded derivatives associated with variable annuity minimum benefit guarantees, and decreased losses on fixed maturity securities.
The negative change in freestanding derivatives, from gains in the prior year to losses in the current year, was primarily attributable to the effect of rising interest rates on certain interest rate sensitive derivatives that are economic hedges of certain invested assets and insurance liabilities; weakening U. S.  Dollar on certain foreign currency sensitive derivatives, and equity market and interest rate derivatives that are economic hedges of embedded derivatives.
Losses on embedded derivatives decreased from losses to gains and were driven primarily by rising interest rates and improving equity market performance.
The gains were net of losses attributable to a narrowing of the Company’s own credit spread.
Losses on the freestanding derivatives hedging these embedded derivatives risks substantially offset the change in the liabilities attributable to market factors, excluding the adjustment for the change in the Company’s own credit spread, which is not hedged.
The decrease in losses on fixed maturity securities is primarily attributable to lower net losses on sales of fixed maturity securities, partially offset by increased impairments due to the current financial market conditions, although this trend lessened in the latter part of 2009.
As more fully described in the discussion of performance measures above, operating earnings is the measure of segment profit or loss we use to evaluate performance and allocate resources.
Consistent with GAAP accounting guidance for segment reporting, it is our measure of performance, as reported below.
Operating earnings is not determined in accordance with GAAP and should not be viewed as a substitute for GAAP income (loss) from continuing operations, net of income tax.
We believe that the presentation of operating earnings enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business.
Operating earnings available to common shareholders decreased by $329 million to $2.4 billion in 2009 from $2.7 billion in 2008.
Reconciliation of income (loss) from continuing operations, net of income tax, to operating earnings available to common shareholders Year Ended December 31, 2009
## Table 2 ##
Year Ended December 31, 2008
## Table 3 ##
Credit and Committed Facilities.
In 2007, the Holding Company and MetLife Funding entered into a credit agreement with various financial institutions.
The proceeds of this $2.85 billion unsecured credit facility, as amended in 2008, are available to be used for general corporate purposes, as back-up for their commercial paper programs and for the issuance of letters of credit.
At December 31, 2009, the Holding Company had outstanding $548 million in letters of credit and no drawdowns against this facility.
Remaining unused commitments were $2.3 billion at December 31, 2009.
The Holding Company maintains committed facilities with a capacity of $1.8 billion.
At December 31, 2009, the Holding Company had outstanding $712 million in letters of credit and no aggregate drawdowns against these facilities.
Remaining unused commitments were $1.1 billion at December 31, 2009.
In addition, the Holding Company is a party to committed facilities of certain of its subsidiaries, which aggregated $11.0 billion at December 31, 2009.
The committed facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities.
For more information on Credit and Committed Facilities see Note 11 of the Notes to the Consolidated Financial Statements.
Covenants.
Certain of the Holding Company’s debt instruments, credit facilities and committed facilities contain various administrative, reporting, legal and financial covenants.
The Holding Company believes it was in compliance with all covenants at December 31, 2009 and 2008.
Common and Preferred Stock.
For information on Common Stock and Preferred Stock issued by the Holding Company, see “— The Company — Liquidity and Capital Sources — Common Stock” and “— The Company — Liquidity and Capital Sources — Preferred Stock.
” Liquidity and Capital Uses The primary uses of liquidity of the Holding Company include debt service, cash dividends on common and preferred stock, capital contributions to subsidiaries, payment of general operating expenses, acquisitions and the repurchase of the Holding Company’s common stock.
Affiliated Capital Transactions.
During the years ended December 31, 2009 and 2008, the Holding Company invested an aggregate of $986 million and $2.6 billion, respectively, in various subsidiaries.
The Holding Company lends funds, as necessary, to its subsidiaries, some of which are regulated, to meet their capital requirements.
Such loans are included in loans to subsidiaries and consisted of the following at:
## Table 4 ##
Debt Repayments.
None of the Holding Company’s debt is due before December 2011, so there is no near-term debt refinancing risk.
Support Agreements.
The Holding Company is party to various capital support commitments and guarantees with certain of its subsidiaries and a corporation in which it owns 50% of the equity.
Under these arrangements, the Holding Company has agreed to cause each such entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations.
In December 2009, the Holding Company, in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause the third protected cell of MRV to maintain total adjusted capital equal to or greater than 200% of such protected cell’s authorized control level RBC, as defined in state insurance statutes.
See “— The Company — Liquidity and Capital Sources — Credit and Committed Facilities” and Note 11 of the Notes to the Consolidated Financial Statements.
In October 2007, the Holding Company, in connection with MRV’s reinsurance of certain universal life and term life insurance risks, committed to the Vermont Department of Banking, Insurance, Securities and Health Care Administration to take necessary action to cause each of the two initial protected cells of MRV to maintain total adjusted capital equal to or greater than 200% of such protected cell’s authorized control level RBC, as defined in state insurance statutes.
See “— The Company — Liquidity and Capital Sources — Credit and Committed Facilities” and Note 11 of the Notes to the Consolidated Financial Statements.
In December 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRC’s reinsurance of a portion of the liabilities associated with the closed block, committed to the South Carolina Department of Insurance to make capital contributions, if necessary, to MRC so that MRC may at all times maintain its total adjusted capital at a level of not less than 200% of the company action level RBC, as defined in state insurance statutes as in effect on the date of determination or December 31, 2007, whichever calculation produces the greater capital requirement, or as otherwise required by the South Carolina Department of Insurance.
See “— The Company — Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the Consolidated Financial Statements.
In May 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRSC’s reinsurance of universal life secondary guarantees, committed to the South Carolina Department of Insurance to take necessary action to cause MRSC to maintain total adjusted capital equal to the greater of $250,000 or 100% of MRSC’s authorized control level RBC, as defined in state insurance statutes.
See “— The Company — Liquidity and Capital Sources — Debt Issuances and Other Borrowings” and Note 12 of the Notes to the Consolidated Financial Statements.
The Holding Company has net worth maintenance agreements with two of its insurance subsidiaries, MetLife Investors Insurance Company and First MetLife Investors Insurance Company.
Under these agreements, as subsequently amended, the Holding Company agreed, without limitation as to the amount, to cause each of these subsidiaries to have a minimum capital and surplus of $10 million, total adjusted capital at a level not less than 150% of the company action level RBC, as defined by state insurance statutes, and liquidity necessary to enable it to meet its current obligations on a timely basis.
Fleet Automation Approximately 66% of our residential routes have been converted to automated single driver trucks.
By converting our residential routes to automated service, we reduce labor costs, improve driver productivity and create a safer work environment for our employees.
Additionally, communities using automated vehicles have higher participation rates in recycling programs, thereby complementing our initiative to expand our recycling capabilities.
Fleet Conversion to Compressed Natural Gas (CNG) Approximately 12% of our fleet operates on natural gas.
We expect to continue our gradual fleet conversion to CNG, our preferred alternative fuel technology, as part of our ordinary annual fleet replacement process.
We believe a gradual fleet conversion is most prudent to realize the full value of our previous fleet investments.
Approximately 50% of our replacement vehicle purchases during 2013 were CNG vehicles.
We believe using CNG vehicles provides us a competitive advantage in communities with strict clean emission objectives or initiatives that focus on protecting the environment.
Although upfront costs are higher, we expect that using natural gas will reduce our overall fleet operating costs through lower fuel expenses.
Standardized Maintenance Based on an industry trade publication, we operate the eighth largest vocational fleet in the United States.
As of December 31, 2013, our average fleet age in years, by line of business, was as follows:
## Table 5 ##
Through standardization of core functions, we believe we can minimize variability in our maintenance processes resulting in higher vehicle quality while extending the service life of our fleet.
We believe operating a more reliable, safer and efficient fleet will lower our operating costs.
We have completed implementation of standardized maintenance programs for approximately 45% of our fleet maintenance operations as of December 31, 2013.
Cash Utilization Strategy Key components of our cash utilization strategy include increasing free cash flow and improving our return on invested capital.
Our definition of free cash flow, which is not a measure determined in accordance with United States generally accepted accounting principles (U. S.  GAAP), is cash provided by operating activities less purchases of property and equipment, plus proceeds from sales of property and equipment as presented in our consolidated statements of cash flows.
For a discussion and reconciliation of free cash flow, you should read the “Free Cash Flow” section of our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Item 7 of this Form 10-K.  We believe free cash flow drives shareholder value and provides useful information regarding the recurring cash provided by our operations.
Free cash flow also demonstrates our ability to execute our cash utilization strategy, which includes investments in acquisitions and returning a majority of free cash flow to our shareholders through dividends and share repurchases.
We are committed to an efficient capital structure and maintaining our investment grade rating.
We manage our free cash flow by ensuring that capital expenditures and operating asset levels are appropriate in light of our existing business and growth opportunities, as well as by closely managing our working capital, which consists primarily of accounts receivable, accounts payable, and accrued landfill and environmental costs.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Restricted Stock Units</td><td> Weighted Average   Grant Date   Fair Value</td></tr><tr><td>Outstanding at January 1,</td><td>149,374</td><td>$51.46</td></tr><tr><td>Granted</td><td>295,000</td><td>$20.83</td></tr><tr><td>Forfeited</td><td>-31,850</td><td>$57.57</td></tr><tr><td>Paid</td><td>-19,162</td><td>$50.25</td></tr><tr><td>Outstanding at December 31,</td><td>393,362</td><td>$28.05</td></tr><tr><td>Restricted Stock Units expected to vest at December 31, 2009</td><td>393,362</td><td>$28.05</td></tr></table>
<table><tr><td></td><td rowspan="2"> 2010  Permitted w/o   Approval -1</td><td colspan="2"> 2009</td><td colspan="3"> 2008</td></tr><tr><td> Company</td><td> Paid -2</td><td> Permitted w/o   Approval -3</td><td colspan="2"> Paid -2</td><td> Permitted w/o   Approval -3</td></tr><tr><td></td><td colspan="6"> (In millions)</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>$1,262</td><td>$—</td><td>$552</td><td>$1,318</td><td>-4</td><td>$1,299</td></tr><tr><td>MetLife Insurance Company of Connecticut</td><td>$659</td><td>$—</td><td>$714</td><td>$500</td><td></td><td>$1,026</td></tr><tr><td>Metropolitan Tower Life Insurance Company</td><td>$93</td><td>$—</td><td>$88</td><td>$277</td><td>-5</td><td>$113</td></tr><tr><td>Metropolitan Property and Casualty Insurance Company</td><td>$—</td><td>$300</td><td>$9</td><td>$300</td><td></td><td>$—</td></tr></table>
<table><tr><td></td><td>Insurance Products</td><td>Retirement Products</td><td>Corporate Benefit Funding</td><td>Auto & Home</td><td>International</td><td>Banking Corporate & Other</td><td>Total</td></tr><tr><td></td><td></td><td></td><td colspan="2">(In millions)</td><td></td><td></td><td></td></tr><tr><td>Income (loss) from continuing operations, net of income tax</td><td>$-418</td><td>$-367</td><td>$-841</td><td>$321</td><td>$-280</td><td>$-733</td><td>$-2,318</td></tr><tr><td>Less: Net investment gains (losses)</td><td>-2,258</td><td>-1,606</td><td>-2,260</td><td>-2</td><td>-903</td><td>-743</td><td>-7,772</td></tr><tr><td>Less: Other adjustments to continuing operations</td><td>-139</td><td>522</td><td>123</td><td>—</td><td>-206</td><td>-16</td><td>284</td></tr><tr><td>Less: Provision for income tax (expense) benefit</td><td>837</td><td>380</td><td>745</td><td>1</td><td>366</td><td>354</td><td>2,683</td></tr><tr><td>Operating earnings</td><td>$1,142</td><td>$337</td><td>$551</td><td>$322</td><td>$463</td><td>-328</td><td>2,487</td></tr><tr><td>Less: Preferred stock dividends</td><td></td><td></td><td></td><td></td><td></td><td>122</td><td>122</td></tr><tr><td>Operating earnings available to common shareholders</td><td></td><td></td><td></td><td></td><td></td><td>$-450</td><td>$2,365</td></tr></table>
<table><tr><td></td><td>Insurance Products</td><td>Retirement Products</td><td>Corporate Benefit Funding</td><td>Auto & Home</td><td>International</td><td>Banking Corporate & Other</td><td>Total</td></tr><tr><td></td><td colspan="7">(In millions)</td></tr><tr><td>Income (loss) from continuing operations, net of income tax</td><td>$2,195</td><td>$382</td><td>$-97</td><td>$275</td><td>$553</td><td>$173</td><td>$3,481</td></tr><tr><td>Less: Net investment gains (losses)</td><td>1,558</td><td>901</td><td>-1,629</td><td>-134</td><td>169</td><td>947</td><td>1,812</td></tr><tr><td>Less: Other adjustments to continuing operations</td><td>-193</td><td>-612</td><td>74</td><td>—</td><td>52</td><td>17</td><td>-662</td></tr><tr><td>Less: Provision for income tax (expense) benefit</td><td>-480</td><td>-100</td><td>545</td><td>46</td><td>-147</td><td>-352</td><td>-488</td></tr><tr><td>Operating earnings</td><td>$1,310</td><td>$193</td><td>$913</td><td>$363</td><td>$479</td><td>-439</td><td>2,819</td></tr><tr><td>Less: Preferred stock dividends</td><td></td><td></td><td></td><td></td><td></td><td>125</td><td>125</td></tr><tr><td>Operating earnings available to common shareholders</td><td></td><td></td><td></td><td></td><td></td><td>$-564</td><td>$2,694</td></tr></table>
<table><tr><td></td><td></td><td></td><td colspan="2"> December 31,</td></tr><tr><td> Subsidiaries</td><td> Interest Rate</td><td> Maturity Date</td><td> 2009</td><td> 2008</td></tr><tr><td></td><td></td><td></td><td colspan="2"> (In millions)</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>3-month LIBOR + 1.15%</td><td>December 31, 2009</td><td>$—</td><td>$700</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>6-month LIBOR + 1.80%</td><td>December 31, 2011</td><td>775</td><td>—</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>6-month LIBOR + 1.80%</td><td>December 31, 2011</td><td>300</td><td>—</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>7.13%</td><td>December 15, 2032</td><td>400</td><td>400</td></tr><tr><td>Metropolitan Life Insurance Company</td><td>7.13%</td><td>January 15, 2033</td><td>100</td><td>100</td></tr><tr><td>Total</td><td></td><td></td><td>$1,575</td><td>$1,200</td></tr></table>
<table><tr><td></td><td>Approximate Number of Vehicles</td><td>Average Age</td></tr><tr><td>Residential</td><td>7,600</td><td>7</td></tr><tr><td>Commercial</td><td>4,300</td><td>6</td></tr><tr><td>Industrial</td><td>3,600</td><td>9</td></tr><tr><td>Total</td><td>15,500</td><td>7</td></tr></table>

Question: what is the approximate number of vehicle in the fleet that are operating on compressed natural gas ( cng ) approximately 12% ( 12 % )
Answer: 1860
Reasoning program: multiply(15500,12%)