In fiscal 2008, revenues in the credit union systems and services business segment increased 14% from fiscal 2007.
All revenue components within the segment experienced growth during fiscal 2008.
License revenue generated the largest dollar growth in revenue as Episys?, our flagship core processing system aimed at larger credit unions, experienced strong sales throughout the year.
Support and service revenue, which is the largest component of total revenues for the credit union segment, experienced 34 percent growth in EFT support and 10 percent growth in in-house support.
Gross profit in this business segment increased $9,344 in fiscal 2008 compared to fiscal 2007, due primarily to the increase in license revenue, which carries the highest margins.
LIQUIDITY AND CAPITAL RESOURCES We have historically generated positive cash flow from operations and have generally used funds generated from operations and short-term borrowings on our revolving credit facility to meet capital requirements.
We expect this trend to continue in the future.
The Company’s cash and cash equivalents increased to $118,251 at June 30, 2009 from $65,565 at June 30, 2008.
The following table summarizes net cash from operating activities in the statement of cash flows:
## Table 0 ##
Cash provided by operations increased $25,587 to $206,588 for the fiscal year ended June 30, 2009 as compared to $181,001 for the fiscal year ended June 30, 2008.
This increase is primarily attributable to a decrease in receivables compared to the same period a year ago of $21,214.
This decrease is largely the result of fiscal 2010 annual software maintenance billings being provided to customers earlier than in the prior year, which allowed more cash to be collected before the end of the fiscal year than in previous years.
Further, we collected more cash overall related to revenues that will be recognized in subsequent periods in the current year than in fiscal 2008.
Cash used in investing activities for the fiscal year ended June 2009 was $59,227 and includes $3,027 in contingent consideration paid on prior years’ acquisitions.
Cash used in investing activities for the fiscal year ended June 2008 was $102,148 and includes payments for acquisitions of $48,109, plus $1,215 in contingent consideration paid on prior years’ acquisitions.
Capital expenditures for fiscal 2009 were $31,562 compared to $31,105 for fiscal 2008.
Cash used for software development in fiscal 2009 was $24,684 compared to $23,736 during the prior year.
Net cash used in financing activities for the current fiscal year was $94,675 and includes the repurchase of 3,106 shares of our common stock for $58,405, the payment of dividends of $26,903 and $13,489 net repayment on our revolving credit facilities.
Cash used in financing activities was partially offset by proceeds of $3,773 from the exercise of stock options and the sale of common stock (through the employee stock purchase plan) and $348 excess tax benefits from stock option exercises.
During fiscal 2008, net cash used in financing activities for the fiscal year was $101,905 and includes the repurchase of 4,200 shares of our common stock for $100,996, the payment of dividends of $24,683 and $429 net repayment on our revolving credit facilities.
Cash used in financing activities was partially offset by proceeds of $20,394 from the exercise of stock options and the sale of common stock and $3,809 excess tax benefits from stock option exercises.
Beginning during fiscal 2008, US financial markets and many of the largest US financial institutions have been shaken by negative developments in the home mortgage industry and the mortgage markets, and particularly the markets for subprime mortgage-backed securities.
Since that time, these and other such developments have resulted in a broad, global economic downturn.
While we, as is the case with most companies, have experienced the effects of this downturn, we have not experienced any significant issues with our current collection efforts, and we believe that any future impact to our liquidity will be minimized by cash generated by recurring sources of revenue and due to our access to available lines of credit.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) Variable Interest Entities In the normal course of its activities, the Company enters into relationships with various special purpose entities and other entities that are deemed to be variable interest entities (“VIEs”), in accordance with FIN No.46(R), “Consolidation of Variable Interest Entities.
” A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE.
If the Company determines that it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns, the Company would be deemed to be the VIE’s “primary beneficiary” and would be required to consolidate the VIE.
Consolidated Variable Interest Entities The Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but over which the Company does not exercise control.
The table below reflects the carrying amount and balance sheet caption in which the assets of these consolidated VIEs are reported.
The liabilities of consolidated VIEs are included in “Other liabilities” and are also reflected in the table below.
These liabilities primarily comprise obligations under debt instruments issued by the VIEs, that are non-recourse to the Company.
The creditors of each consolidated VIE have recourse only to the assets of that VIE.
## Table 1 ##
In addition, the Company has created a trust that is a VIE, to facilitate Prudential Insurance’s Funding Agreement Notes Issuance Program (“FANIP”).
The trust issues medium-term notes secured by funding agreements issued to the trust by Prudential Insurance with the proceeds of such notes.
The Company is the primary beneficiary of the trust, which is therefore consolidated.
The funding agreements represent an intercompany transaction that is eliminated upon consolidation.
However, in recognition of the security interest in such funding agreements, the trust’s medium-term note liability of $8,535 million and $6,537 million at December 31, 2007 and 2006, respectively, is classified on the Consolidated Statements of Financial Position within “Policyholders’ account balances.
” See Note 8 for more information on FANIP.
Significant Variable Interests in Unconsolidated Variable Interest Entities The Company is the collateral manager for certain asset backed investment vehicles (commonly referred to as collateralized debt obligations, or “CDOs”), for which the Company earns fee income.
Additionally, the Company may invest in debt or equity securities issued by these CDOs.
CDOs raise capital by issuing debt and equity securities, and use the proceeds to purchase investments, typically interest-bearing financial instruments.
The Company has determined that it is the primary beneficiary of two CDOs it manages at December 31, 2007 and one CDO it managed at December 31, 2006, which are consolidated and reflected in the table above.
The Company’s maximum exposure to loss resulting from its relationship with unconsolidated CDOs it manages is limited to its investment in the CDOs, which was $143 million and $122 million at December 31, 2007 and 2006, respectively.
These investments are reflected in “Fixed maturities, available for sale.
” In addition, in the normal course of its activities, the Company will invest in structured investments, some of which are VIEs.
These structured investments typically invest in fixed income investments and are managed by third parties.
The Company’s maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment.
Included among these structured investments are asset-backed securities issued by VIEs that manage investments in the European market.
In addition to a stated coupon, each investment provides a return based on the VIE’s portfolio of assets and related investment activity.
The Company accounts for these investments as available for sale fixed maturities containing embedded derivatives that are
trading.
These trading investments are reflected on the balance sheet as “Trading account assets supporting insurance liabilities, at fair value.
” Realized and unrealized gains and losses for these investments are reported in “Asset management fees and other income.
” Investment income for these investments is reported in “Net investment income.
” The following table sets forth the composition of this portfolio as of the dates indicated.
## Table 2 ##
(1) Commercial Mortgage Backed securities were previously presented within Corporate Securities.
As of December 31, 2007, as a percentage of amortized cost, 74% of the portfolio was comprised of publicly traded securities, compared to 76% of the portfolio as of December 31, 2006.
As of December 31, 2007, 92% of the fixed maturity portfolio was classified as investment grade compared to 97% as of December 31, 2006.
As of December 31, 2007, 77% of the residential mortgage-backed securities were publicly traded agency pass-through securities, which are supported by implicit or explicit government guarantees and have credit ratings of AA or AAA.
Collateralized mortgage obligations including approximately $144 million secured by "ALT-A" mortgages, represented the remaining 23% of residential mortgage backed securities, which virtually all have credit ratings of A or better.
As of December 31, 2007, 94% of commercial mortgage-backed securities have AAA credit ratings, 2% have AA credit ratings, 3% have A credit ratings, and the remaining 1% have BBB or BB credit ratings.
As of December 31, 2007, included within asset-backed securities is approximately $0.6 billion of securities collateralized by sub-prime mortgages, including approximately 76% with AAA credit ratings, 19% with AA credit ratings, 3% with A credit ratings, and the remaining 2% with BBB credit ratings.
For a discussion of changes in the fair value of our trading account assets supporting insurance liabilities see “—Trading Account Assets Supporting Insurance Liabilities,” below.
The following table sets forth our public fixed maturities included in our trading account assets supporting insurance liabilities portfolio by NAIC rating as of the dates indicated.
## Table 3 ##
(1) See “—Fixed Maturity Securities Credit Quality” above for a discussion on NAIC designations.
(2) Reflects equivalent ratings for investments of the international insurance operations that are not rated by U. S.  insurance regulatory authorities.
(3) Amounts are reported in “Asset management fees and other income.
”
such as future securities market conditions, changes in interest rate levels and policyholder perceptions of our financial strength, each of which could lead to reduced cash inflows or increased cash outflows.
In addition, market volatility can impact the level of capital required to support our businesses, particularly in our annuity business.
Our domestic insurance operations’ cash flows from investment activities result from repayments of principal, proceeds from maturities and sales of invested assets and investment income, net of amounts reinvested.
The primary liquidity risks with respect to these cash flows are the risk of default by debtors or bond insurers, our counterparties’ willingness to extend repurchase and/or securities lending arrangements and market volatility.
As of December 31, 2007 and 2006, our domestic insurance entities had lendable assets of $76 billion and $78 billion, respectively.
Of this amount, $16 billion and $18 billion, as of December 31, 2007 and 2006, respectively, was on loan, the remainder of which, depending on market conditions, are available to be financed through repurchase agreements or securities lending arrangements.
We closely manage these risks through our credit risk management process and regular monitoring of our liquidity position.
In managing the liquidity of our domestic insurance operations, we also consider the risk of policyholder and contractholder withdrawals of funds earlier than our assumptions when selecting assets to support these contractual obligations.
We use surrender charges and other contract provisions to mitigate the extent, timing and profitability impact of withdrawals of funds by customers from annuity contracts and deposit liabilities.
The following table sets forth withdrawal characteristics of our general account annuity reserves and deposit liabilities (based on statutory liability values) as of the dates indicated.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Year ended June 30, 2009</td></tr><tr><td>2008</td><td>2007</td></tr><tr><td>Net income</td><td>$103,102</td><td>$104,222</td><td>$104,681</td></tr><tr><td>Non-cash expenses</td><td>74,397</td><td>70,420</td><td>56,348</td></tr><tr><td>Change in receivables</td><td>21,214</td><td>-2,913</td><td>-28,853</td></tr><tr><td>Change in deferred revenue</td><td>21,943</td><td>5,100</td><td>24,576</td></tr><tr><td>Change in other assets and liabilities</td><td>-14,068</td><td>4,172</td><td>17,495</td></tr><tr><td>Net cash from operating activities</td><td>$206,588</td><td>$181,001</td><td>$174,247</td></tr></table>
<table><tr><td></td><td colspan="2"> At December 31,</td></tr><tr><td></td><td> 2007</td><td> 2006</td></tr><tr><td></td><td colspan="2"> (in millions)</td></tr><tr><td>Fixed maturities, available for sale</td><td>$170</td><td>$130</td></tr><tr><td>Fixed maturities, held to maturity</td><td>822</td><td>771</td></tr><tr><td>Commercial loans</td><td>460</td><td>421</td></tr><tr><td>Other long-term investments</td><td>583</td><td>102</td></tr><tr><td>Cash and cash equivalents</td><td>14</td><td>71</td></tr><tr><td>Accrued investment income</td><td>7</td><td>6</td></tr><tr><td>Other assets</td><td>5</td><td>10</td></tr><tr><td>Total assets of consolidated VIEs</td><td>$2,061</td><td>$1,511</td></tr><tr><td>Total liabilities of consolidated VIEs</td><td>$536</td><td>$500</td></tr></table>
<table><tr><td></td><td colspan="2"> December 31, 2007</td><td colspan="2"> December 31, 2006</td></tr><tr><td></td><td> Amortized Cost</td><td> Fair Value</td><td> Amortized Cost</td><td> Fair Value</td></tr><tr><td></td><td colspan="4"> (in millions)</td></tr><tr><td>Short-term Investments and Cash Equivalents</td><td>$554</td><td>$554</td><td>$299</td><td>$299</td></tr><tr><td>Fixed Maturities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Corporate Securities</td><td>7,584</td><td>7,547</td><td>7,907</td><td>7,739</td></tr><tr><td>Commercial Mortgage Backed-1</td><td>2,625</td><td>2,644</td><td>2,182</td><td>2,165</td></tr><tr><td>Asset-Backed Securities</td><td>1,266</td><td>1,207</td><td>609</td><td>603</td></tr><tr><td>Residential Mortgage Backed</td><td>1,147</td><td>1,136</td><td>1,933</td><td>1,905</td></tr><tr><td>Foreign Government</td><td>347</td><td>354</td><td>316</td><td>319</td></tr><tr><td>U.S. Government</td><td>82</td><td>83</td><td>173</td><td>175</td></tr><tr><td>Total Fixed Maturities</td><td>13,051</td><td>12,971</td><td>13,120</td><td>12,906</td></tr><tr><td>Equity Securities</td><td>1,001</td><td>948</td><td>833</td><td>1,057</td></tr><tr><td>Total trading account assets supporting insurance liabilities</td><td>$14,606</td><td>$14,473</td><td>$14,252</td><td>$14,262</td></tr></table>
<table><tr><td> -1 (2)</td><td></td><td colspan="4"> December 31, 2007</td><td colspan="4"> December 31, 2006</td></tr><tr><td> NAIC Designation</td><td> Rating Agency Equivalent</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td></tr><tr><td></td><td></td><td colspan="8"> (in millions)</td></tr><tr><td>1</td><td>Aaa, Aa, A</td><td>$6,734</td><td>$54</td><td>$96</td><td>$6,692</td><td>$7,772</td><td>$25</td><td>$117</td><td>$7,680</td></tr><tr><td>2</td><td>Baa</td><td>1,966</td><td>11</td><td>27</td><td>1,950</td><td>1,800</td><td>3</td><td>42</td><td>1,761</td></tr><tr><td></td><td>Subtotal Investment Grade</td><td>8,700</td><td>65</td><td>123</td><td>8,642</td><td>9,572</td><td>28</td><td>159</td><td>9,441</td></tr><tr><td>3</td><td>Ba</td><td>374</td><td>2</td><td>9</td><td>367</td><td>79</td><td>—</td><td>7</td><td>72</td></tr><tr><td>4</td><td>B</td><td>215</td><td>—</td><td>5</td><td>210</td><td>1</td><td>—</td><td>—</td><td>1</td></tr><tr><td>5</td><td>C and lower</td><td>11</td><td>—</td><td>—</td><td>11</td><td>1</td><td>—</td><td>—</td><td>1</td></tr><tr><td>6</td><td>In or near default</td><td>3</td><td>—</td><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td></td><td>Subtotal Below Investment Grade</td><td>603</td><td>2</td><td>17</td><td>588</td><td>81</td><td>—</td><td>7</td><td>74</td></tr><tr><td></td><td>Total Public Trading Account Assets Supporting Insurance Liabilities</td><td>$9,303</td><td>$67</td><td>$140</td><td>$9,230</td><td>$9,653</td><td>$28</td><td>$166</td><td>$9,515</td></tr></table>

Question: Which year is Asset-Backed Securities for fair value the most?
Answer: 2007