NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 14—Business Segments (continued)
## Table 0 ##
(1) Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.
(2) Reclassification of interest amount due to accounting rule requiring deconsolidation of Trust Preferred Securities.
(3) Administrative expense is not allocated to insurance segments.
(4) Elimination of intersegment commission.
(5) Amortization of low-income housing interests, previously considered a reduction of consolidated pretax segment profitability.
Torchmark holds a sizeable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses.
This yield or investment income is taken into account when establishing premium rates and profitability expectations of its insurance products.
In holding such a portfolio, investments are sold, called, or written down from time to time, resulting in a realized gain or loss.
These gains or losses generally occur as a result of disposition due to issuer calls, a downgrade in credit quality, compliance with Company investment policies, or other reasons often beyond management’s control.
Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations.
While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income.
For these reasons, management removes realized investment gains and losses when it views its segment operations.
Excess investment income benefits from increases in long-term rates available on new investments and decreases in short-term borrowing rates.
Of these two factors, higher investment rates have the greater impact because the amount of cash that we invest is significantly greater than the amount that we borrow at short-term rates.
Therefore, Torchmark would benefit if rates, especially long-term rates, were to rise.
However, growth rates in our excess investment income decline when growth in income from the portfolio is less than that of the interest required by policy liabilities and financing costs, such as we have experienced in recent periods.
In an extended low-interest-rate environment, the portfolio yield will tend to decline as we invest new money at lower long-term rates.
We believe, however, the decline would be relatively slow, as, on average, only 2% to 3% of fixed maturities are expected to run off each year over the next five years.
In response to the lower interest rates, we reduced the discount rate on life policies issued in 2012.
We also raised the premium rates for new business on major life products in 2012.
The increased premiums will provide additional margin on these policies to help offset the possible future reductions in excess investment income and have not had a detrimental impact on sales.
Because actuarial discount rates are locked in for life on essentially all of our business, benefit reserves and deferred acquisition costs are not affected by interest rate fluctuations unless a loss recognition event occurs.
Due to the strength of our underwriting margins and the current positive spread between the yield on our investment portfolio and the weighted-average discount rate of our in force block, we don’t expect an extended low-interest-rate environment to cause a loss recognition event.
Investment Acquisitions.
Torchmark’s current investment policy calls for investing almost exclusively in investment-grade fixed maturities generally with long maturities (maturity date more than 20 years after acquisition date) that meet our quality and yield objectives.
We generally prefer to invest in securities with longer maturities because they more closely match the long-term nature of our policy liabilities.
Further, we believe this strategy is appropriate because our strong positive cash flows are generally stable and predictable.
If such longer-term securities do not meet our quality and yield objectives, we consider investing in short-term securities, taking into consideration the slope of the yield curve and other factors at the time.
During calendar years 2010 through 2012, Torchmark invested almost exclusively in fixed-maturity securities, primarily with longer-term maturities as presented in the chart below.
The following table summarizes selected information for fixed-maturity purchases.
The effective annual yield shown in the table is the yield calculated to the potential termination date that produces the lowest yield.
This date is commonly known as the “worst call date.
” Two different average life calculations are shown, average life to the next call date and average life to the maturity date.
Fixed Maturity Acquisitions Selected Information (Dollar amounts in millions)
## Table 1 ##
* Tax-equivalent basis, where the yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.
Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) Restructuring Accrual As a result of the Cytyc merger, the Company assumed previous Cytyc management approved restructuring plans designed to reduce future operating expenses by consolidating its Mountain View, California operations into its existing operations in Costa Rica and Massachusetts as well as restructuring plans relating to Cytyc’s historical acquisitions completed in March 2007.
In connection with these plans, the Company assumed a total liability of approximately $4,658.
During the twelve months ended September 27, 2008, the Company did not incur any additional restructuring costs related to retention costs for these employees.
As a result of the Third Wave acquisition, the Company assumed previous Third Wave management approved restructuring plans designed to reduce future operating expenses.
In connection with these plans, the Company assumed a total liability related to termination benefits of approximately $7,509.
The Company did not incur any additional restructuring costs related to retention costs for these employees from the date of acquisition through September 27, 2008.
We anticipate that these costs will be paid in full during fiscal 2009.
Additionally, the Company recorded a liability related to the Cytyc merger in accordance with EITF 95-3 as detailed below, primarily related to the termination of certain employees as well as minimum inventory purchase commitments and other contractual obligations for which business activities have been discontinued.
During the twelve months ended September 27, 2008 the Company incurred approximately $6.4 million of expense related to the resignation of the Chairman of the Board of Directors, which is not included in the table below (See Note 12).
Changes in the restructuring accrual for the twelve months ended September 27, 2008 were as follows:
## Table 2 ##
As of the dates of acquisition of AEG Elektrofotografie GmbH (“AEG”), R2 Technology, Inc.  (“R2”) and Suros Surgical, Inc.  (“Suros”) (See Note 3), management of the Company implemented and finalized plans to involuntarily terminate certain employees of the acquired companies.
These plans resulted in a liability for costs associated with an employee severance arrangement of approximately $3,135 in accordance with EITF Issue No.95-3, Recognition of Liabilities in Connection with a Purchase Business Combination.
As of September 29, 2007, all amounts other than $105 had been paid.
The Company had made full payment on this remaining liability as of September 27, 2008.
Advertising Costs Advertising costs are charged to operations as incurred.
The Company does not have any direct-response advertising.
Advertising costs, which include trade shows and conventions, were approximately $15,281, $6,683 and $5,003 for fiscal 2008, 2007 and 2006, respectively, and were included in selling and marketing expense in the Consolidated Statements of Operations.
Consumer Mortgage Representations and Warranties The majority of Citi’s exposure to representation and warranty claims relates to its U. S.  Consumer mortgage business.
Representation and Warranties As of December 31, 2010, Citi services loans previously sold as follows:
## Table 3 ##
(1) Excludes the fourth quarter of 2010 sale of servicing rights on 0.1 million loans with unpaid principal balances of approximately $28,745 million.
Citi continues to be exposed to representation and warranty claims on those loans.
(2) Represents loans serviced by CitiMortgage that are covered by indemnification agreements relating to previous acquisitions of mortgage servicing rights.
In addition, since 2000, Citi has sold $94billion of loans to private investors, of which $49billion were sold through securitizations.
As of December 31, 2010, $39billion of these loans (including $15billion sold through securitizations) continue to be serviced by Citi and are included in the $456billion of serviced loans above.
When selling a loan, Citi (through its CitiMortgage business) makes various representations and warranties relating to, among other things, the following: ?
Citi’s ownership of the loan; ?
the validity of the lien securing the loan; ?
the absence of delinquent taxes or liens against the property securing the loan; ?
the effectiveness of title insurance on the property securing the loan; ?
the process used in selecting the loans for inclusion in a transaction; ?
the loan’s compliance with any applicable loan criteria established by the buyer; and ?
the loan’s compliance with applicable local, state and federal laws.
The specific representations and warranties made by Citi depend on the nature of the transaction and the requirements of the buyer.
Market conditions and credit-rating agency requirements may also affect representations and warranties and the other provisions to which Citi may agree in loan sales.
Repurchases or “Make-Whole” Payments In the event of a breach of these representations and warranties, Citi may be required to either repurchase the mortgage loans (generally at unpaid principal balance plus accrued interest) with the identified defects, or indemnify (“make-whole”) the investors for their losses.
Citi’s representations and warranties are generally not subject to stated limits in amount or time of coverage.
However, contractual liability arises only when the representations and warranties are breached and generally only when a loss results from the breach.
For the years ended December 31, 2010 and 2009, 77% and 64%, respectively, of Citi’s repurchases and make-whole payments were attributable to misrepresentation of facts by either the borrower or a third party (e. g. , income, employment, debts, FICO, etc.
), appraisal issues (e. g. , an error or misrepresentation of value), or program requirements (e. g. , a loan that does not meet investor guidelines, such as contractual interest rate).
To date, there has not been a meaningful difference in incurred or estimated loss for each type of defect.
In the case of a repurchase, Citi will bear any subsequent credit loss on the mortgage loan and the loan is typically considered a credit-impaired loan and accounted for under SOP 03-3, “Accounting for Certain Loans and Debt Securities, Acquired in a Transfer” (now incorporated into ASC 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality).
These repurchases have not had a material impact on Citi’s nonperforming loan statistics because credit-impaired purchased SOP 03-3 loans are not included in non-accrual loans, since they generally continue to accrue interest until write-off.
The unpaid principal balance of loans repurchased due to representation and warranty claims for the years ended December 31, 2010 and 2009, respectively, was as follows:
## Table 4 ##
As evidenced in the table above, to date, Citi’s repurchases have primarily been from the U. S.  government sponsored entities (GSEs).
In addition, Citi recorded make-whole payments of $310 million and $49 million for the years ended December 31, 2010 and 2009, respectively
Dividends For a summary of the cash dividends paid on Citi’s outstanding common stock during 2009 and 2010, see Note 33 to the Consolidated Financial Statements.
For so long as the U. S.  government holds any Citigroup trust preferred securities acquired pursuant to the exchange offers consummated in 2009, Citigroup has agreed not to pay a quarterly common stock dividend exceeding $0.01 per quarter, subject to certain customary exceptions.
Further, any dividend on Citi’s outstanding common stock would need to be made in compliance with Citi’s obligations to any remaining outstanding Citigroup preferred stock.
PERFORMANCE GRAPH Comparison of Five-Year Cumulative Total Return The following graph and table compare the cumulative total return on Citigroup’s common stock with the cumulative total return of the S&P 500 Index and the S&P Financial Index over the five-year period extending through December31, 2010.
The graph and table assume that $100 was invested on December31, 2005 in Citigroup’s common stock, the S&P 500 Index and the S&P Financial Index and that all dividends were reinvested.
## Table 5 ##
The following sets forth a general discussion of the changes in certain of the more significant line items of Citi’s Consolidated Balance Sheet during 2010.
For additional information on Citigroup’s deposits, debt and secured financing (lending), see “Capital Resources and Liquidity—Funding and Liquidity” below.
## Table 6 ##
Cash and Deposits with Banks Cash and deposits with banks are composed of Cash and due from banks and Deposits with banks.
Cash and due from banks includes (i) all currency and coin (both foreign and local currencies) in the possession of domestic and overseas offices of Citigroup, and (ii) non-interest-bearing balances due from banks, including non-interest-bearing demand deposit accounts with correspondent banks, central banks (such as the Federal Reserve Bank), and other banks or depository institutions for normal operating purposes.
Deposits with banks includes interest-bearing balances, demand deposits and time deposits held in or due from banks (including correspondent banks, central banks and other banks or depository institutions) maintained for, among other things, normal operating purposes and regulatory reserve requirement purposes.
During 2010, cash and deposits with banks decreased $3 billion, or 2%.
The decrease is composed of a $5 billion, or 3%, decrease in Deposits with banks offset by a $3 billion, or 10%, increase in Cash and due from banks.
Loans Loans include credit cards, mortgages, other real estate lending, personal loans, auto loans, student loans and corporate loans.
Citigroup loans are reported in two categories—Consumer and Corporate.
These categories are classified according to the segment and sub-segment that manage the loans.
As of December 31, 2010, Consumer and Corporate loans constituted 71% and 29%, respectively, of Citi’s total loans (net of unearned income and before the allowance for loan losses).
Consumer loans (net of allowance for loan losses) increased by $27billion, or 7%, during 2010.
On January 1, 2010, approximately $120 billion of Consumer loans (primarily credit card receivables and student loans, net of $13 billion in allowance for loan loss reserves) were consolidated as a result of the adoption of SFAS 166/167.
The increase in credit cards and student loans as a result of the adoption of SFAS 166/167 was partially offset by paydowns over the year on credit cards and the sale of The Student Loan Corporation.
Also offsetting the increase was a $27 billion, or 12%, decrease in Consumer mortgage and real estate loans, driven by run-off, net credit losses and asset sales, as well as the sale of a Citigroup autoportfolio.
Corporate loans (net of allowance for loan losses) increased by $26billion, or 16%, during 2010, primarily due to the $28 billion of Corporate loans consolidated as of January 1, 2010 as a result of the adoption of SFAS 166/167.
The majority of the loans consolidated were Citi-administered asset-backed commercial paper conduits classified as loans to financial institutions.
In addition, a $2 billion, or 32%, decrease in the allowance for loan loss reserves added to the increase of Corporate loans for the year.
These increases were partially offset by the impact of a $7 billion, or 21%, decrease in Corporate mortgage and real estate loans, primarily due to run-off and net credit losses.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="8">For the Year 2010</td></tr><tr><td></td><td>Life</td><td>Health</td><td>Annuity</td><td>Investment</td><td>Other</td><td>Corporate</td><td> Adjustments</td><td>Consolidated</td></tr><tr><td>Revenue:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Premium</td><td>$1,663,699</td><td>$987,937</td><td>$638</td><td></td><td></td><td></td><td>$-516 (1)</td><td>$2,651,758</td></tr><tr><td>Net investment income</td><td></td><td></td><td></td><td>$685,253</td><td></td><td></td><td>-8,889 (2,5)</td><td>676,364</td></tr><tr><td>Other income</td><td></td><td></td><td></td><td></td><td>$2,834</td><td></td><td>-664 (4)</td><td>2,170</td></tr><tr><td>Total revenue</td><td>1,663,699</td><td>987,937</td><td>638</td><td>685,253</td><td>2,834</td><td></td><td>-10,069</td><td>3,330,292</td></tr><tr><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policy benefits</td><td>1,082,423</td><td>669,707</td><td>41,430</td><td></td><td></td><td></td><td>-516 (1)</td><td>1,793,044</td></tr><tr><td>Required interest on: Policy reserves</td><td>-434,319</td><td>-35,368</td><td>-51,996</td><td>521,683</td><td></td><td></td><td></td><td>0</td></tr><tr><td>Deferred acquisition costs</td><td>154,473</td><td>19,758</td><td>2,709</td><td>-176,940</td><td></td><td></td><td></td><td>0</td></tr><tr><td>Amortization of acquisition costs</td><td>289,068</td><td>66,309</td><td>7,013</td><td></td><td></td><td></td><td></td><td>362,390</td></tr><tr><td>Commissions, premium taxes, and non-deferred acquisition costs</td><td>141,792</td><td>68,565</td><td>134</td><td></td><td></td><td></td><td>-664 (4)</td><td>209,827</td></tr><tr><td>Insurance administrative expense<sup></sup><sup>-3</sup></td><td></td><td></td><td></td><td></td><td>155,615</td><td></td><td></td><td>155,615</td></tr><tr><td>Parent expense</td><td></td><td></td><td></td><td></td><td></td><td>$8,809</td><td></td><td>8,809</td></tr><tr><td>Stock-based compensation expense</td><td></td><td></td><td></td><td></td><td></td><td>11,848</td><td></td><td>11,848</td></tr><tr><td>Interest expense</td><td></td><td></td><td></td><td>75,265</td><td></td><td></td><td>264-2</td><td>75,529</td></tr><tr><td>Total expenses</td><td>1,233,437</td><td>788,971</td><td>-710</td><td>420,008</td><td>155,615</td><td>20,657</td><td>-916</td><td>2,617,062</td></tr><tr><td>Subtotal</td><td>430,262</td><td>198,966</td><td>1,348</td><td>265,245</td><td>-152,781</td><td>-20,657</td><td>-9,153</td><td>713,230</td></tr><tr><td>Amortization of low-income housing interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td>9,153-5</td><td>9,153</td></tr><tr><td>Measure of segment profitability (pretax)</td><td>$430,262</td><td>$198,966</td><td>$1,348</td><td>$265,245</td><td>$-152,781</td><td>$-20,657</td><td>$0</td><td>722,383</td></tr><tr><td colspan="8">Deduct applicable income taxes</td><td>-242,558</td></tr><tr><td colspan="8">Segment profits after tax</td><td>479,825</td></tr><tr><td colspan="8">Add back income taxes applicable to segment profitability</td><td>242,558</td></tr><tr><td colspan="8">Add (deduct) realized investment gains (losses)</td><td>37,340</td></tr><tr><td colspan="8">Deduct amortization of low-incomehousing -5</td><td>-9,153</td></tr><tr><td colspan="8">Pretax income per Consolidated Statement of Operations</td><td>$750,570</td></tr></table>
<table><tr><td></td><td colspan="3"> For the Year</td></tr><tr><td></td><td>2012</td><td>2011</td><td> 2010</td></tr><tr><td>Cost of acquisitions:</td><td></td><td></td><td></td></tr><tr><td>Investment-grade corporate securities</td><td>$1,465.9</td><td>$1,078.3</td><td>$1,478.5</td></tr><tr><td>Taxable municipal securities</td><td>1.5</td><td>10.7</td><td>201.2</td></tr><tr><td>Other investment-grade securities</td><td>16.9</td><td>15.2</td><td>33.7</td></tr><tr><td>Total fixed-maturity acquisitions</td><td>$1,484.3</td><td>$1,104.2</td><td>$1,713.4</td></tr><tr><td>Effective annual yield (one year compounded*)</td><td>4.30%</td><td>5.65%</td><td>5.89%</td></tr><tr><td>Average life (in years, to next call)</td><td>25.6</td><td>27.4</td><td>24.2</td></tr><tr><td>Average life (in years to maturity)</td><td>26.7</td><td>28.1</td><td>26.1</td></tr><tr><td>Average rating</td><td>BBB+</td><td>A-</td><td>A-</td></tr><tr><td colspan="4">* Tax-equivalentbasis, where the yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.</td></tr></table>
<table><tr><td></td><td>Twelve Months Ended September 27, 2008</td></tr><tr><td>Other</td><td>Termination Benefits</td></tr><tr><td>Beginning balance</td><td>$—</td><td>$105</td></tr><tr><td>Cytyc balance acquired, October 22, 2007</td><td>—</td><td>4,658</td></tr><tr><td>Third Wave balance acquired, July 24, 2008</td><td>261</td><td>7,029</td></tr><tr><td>Provided for under EITF No. 95-3</td><td>1,820</td><td>1,020</td></tr><tr><td>Adjustments</td><td>-382</td><td>-270</td></tr><tr><td>Payments</td><td>-817</td><td>-11,233</td></tr><tr><td>Ending balance</td><td>$882</td><td>$1,309</td></tr></table>
<table><tr><td>In millions</td><td colspan="2">December 31, 2010-1</td></tr><tr><td>Vintage sold:</td><td>Number of loans</td><td>Unpaid principal balance</td></tr><tr><td>2005 and prior</td><td>1.0</td><td>$105,931</td></tr><tr><td>2006</td><td>0.2</td><td>34,969</td></tr><tr><td>2007</td><td>0.2</td><td>43,744</td></tr><tr><td>2008</td><td>0.3</td><td>53,759</td></tr><tr><td>2009</td><td>0.3</td><td>60,293</td></tr><tr><td>2010</td><td>0.3</td><td>54,936</td></tr><tr><td>Indemnifications-2</td><td>0.9</td><td>102,142</td></tr><tr><td>Total</td><td>3.2</td><td>$455,774</td></tr></table>
<table><tr><td></td><td colspan="2">Year ended December 31,</td></tr><tr><td>In millions of dollars</td><td>2010 Unpaid principal balance</td><td>2009 Unpaid principal balance</td></tr><tr><td>GSEs</td><td>$280</td><td>$268</td></tr><tr><td>Private investors</td><td>26</td><td>22</td></tr><tr><td>Total</td><td>$306</td><td>$290</td></tr></table>
<table><tr><td>DECEMBER 31,</td><td>CITIGROUP</td><td>S&P 500 INDEX</td><td>S&P FINANCIAL INDEX</td></tr><tr><td>2006</td><td>119.55</td><td>115.79</td><td>119.19</td></tr><tr><td>2007</td><td>66.10</td><td>122.15</td><td>96.98</td></tr><tr><td>2008</td><td>15.88</td><td>76.96</td><td>43.34</td></tr><tr><td>2009</td><td>7.85</td><td>97.33</td><td>50.80</td></tr><tr><td>2010</td><td>11.22</td><td>111.99</td><td>56.96</td></tr></table>
<table><tr><td></td><td colspan="2">December 31,</td><td rowspan="2">Increase% (decrease)</td><td></td></tr><tr><td>In billions of dollars</td><td>2010</td><td>2009</td><td>Change</td></tr><tr><td>Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and deposits with banks</td><td>$190</td><td>$193</td><td>$-3</td><td>-2%</td></tr><tr><td>Loans, net of unearned income and allowance for loan losses</td><td>608</td><td>555</td><td>53</td><td>10</td></tr><tr><td>Trading account assets</td><td>317</td><td>343</td><td>-26</td><td>-8</td></tr><tr><td>Federal funds sold and securities borrowed or purchased under agreements to resell</td><td>247</td><td>222</td><td>25</td><td>11</td></tr><tr><td>Investments</td><td>318</td><td>306</td><td>12</td><td>4</td></tr><tr><td>Other assets</td><td>234</td><td>238</td><td>-4</td><td>-2</td></tr><tr><td>Total assets</td><td>$1,914</td><td>$1,857</td><td>$57</td><td>3%</td></tr><tr><td>Liabilities</td><td></td><td></td><td></td><td></td></tr><tr><td>Deposits</td><td>$845</td><td>$836</td><td>$9</td><td>1%</td></tr><tr><td>Federal funds purchased and securities loaned or sold under agreements to repurchase</td><td>190</td><td>154</td><td>36</td><td>23</td></tr><tr><td>Short-term borrowings and long-term debt</td><td>460</td><td>433</td><td>27</td><td>6</td></tr><tr><td>Trading account liabilities</td><td>129</td><td>138</td><td>-9</td><td>-7</td></tr><tr><td>Other liabilities</td><td>124</td><td>141</td><td>-17</td><td>-12</td></tr><tr><td>Total liabilities</td><td>$1,748</td><td>$1,702</td><td>$46</td><td>3%</td></tr><tr><td>Total equity</td><td>$166</td><td>$155</td><td>$11</td><td>7%</td></tr><tr><td>Total liabilities and equity</td><td>$1,914</td><td>$1,857</td><td>$57</td><td>3%</td></tr></table>

Question: what is the growth rate in advertising costs from 2007 to 2008?
Answer: 1.28655
Reasoning program: subtract(15281,6683), divide(#0,6683)