MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 16.
Shareholders’ Equity.
Common Stock.
Changes in shares of common stock outstanding for fiscal 2007 and fiscal 2006 were as follows (share data in millions):
## Table 0 ##
Treasury Shares.
During fiscal 2007, the Company purchased $3.8 billion of its common stock through open market purchases at an average cost of $72.65 per share.
During fiscal 2006, the Company purchased $3.4 billion of its common stock through open market purchases at an average cost of $65.43 per share.
In December 2006, the Company announced that its Board of Directors had authorized the repurchase of up to $6 billion of the Company’s outstanding common stock.
This share repurchase authorization considers, among other things, business segment capital needs, as well as equity-based compensation and benefit plan requirements.
As of November 30, 2007, the Company had approximately $2.3 billion remaining under its current share repurchase authorization.
Rabbi Trusts.
The Company has established rabbi trusts (the “Rabbi Trusts”) to provide common stock voting rights to certain employees who hold outstanding restricted stock units.
The number of shares of common stock outstanding in the Rabbi Trusts was approximately 107 million at November 30, 2007 and approximately 81 million at November 30, 2006.
The assets of the Rabbi Trusts are consolidated with those of the Company, and the value of the Company’s stock held in the Rabbi Trusts is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock.
Preferred Stock.
In July 2006, the Company issued 44,000,000 Depositary Shares, in an aggregate of $1,100 million.
Each Depositary Share represents 1/1,000th of a Share of Floating Rate Non-Cumulative Preferred Stock, Series A, $0.01 par value (“Series A Preferred Stock”).
The Series A Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after July 15, 2011 at a redemption price of $25,000 per share (equivalent to $25 per Depositary Share).
The Series A Preferred Stock also has a preference over the Company’s common stock upon liquidation.
Subsequent to fiscal year-end, the Company declared a quarterly dividend of $379.66 per share of Series A Preferred Stock that was paid on January 15, 2008 to preferred shareholders of record on December 31, 2007.
Regulatory Requirements.
On April 1, 2007, the Company merged MSDWI into MS&Co.
Upon completion of the merger, the surviving entity, MS&Co.
, became the Company’s principal U. S.  broker-dealer.
MS&Co.
is a registered broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority and the Commodity Futures Trading Commission.
MS&Co.
has consistently operated in excess of these requirements.
MS&Co.
’s net capital totaled $6,673 million at November 30, 2007, which exceeded the amount required by $4,950 million.
MSIP, a London-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Authority, and MSJS, a Tokyo-based broker-dealer subsidiary, is subject to the capital requirements of the Financial Services Agency.
MSIP and MSJS consistently operated in excess of their respective regulatory capital requirements.
?
In the fourth quarter of 2018, we entered into an agreement to acquire Wadhwani Asset Management LLP (“WAM”), a Londonbased quantitative macro-focused investment management firm.
As a result of this transaction, which closed in January 2019, WAM will become part of our QMA business.  ?
In the second quarter of 2018, we exited our PGIM Brazil operations including the sale of our minority interest in a Brazilian asset management joint venture.
The results of this divested business and impact of the sale are reflected in our Corporate and Other operations (see “—Results of Operations by Segment—Divested and Run-off Businesses—Divested and Run-off Businesses Included in Corporate and Other” for additional information).
Operating Results The following table sets forth the PGIM segment’s operating results for the periods indicated.
## Table 1 ##
(1) Certain of our PGIM segment’s investment activities are based in currencies other than the U. S.  dollar and are therefore subject to foreign currency exchange rate risk.
For each of the periods presented, the financial results of our PGIM segment include the impact of an intercompany arrangement with our Corporate and Other operations designed to mitigate the impact of exchange rate changes on the segment’s U. S.  dollar-equivalent earnings.
For more information related to this intercompany arrangement, see “—Results of Operations—Impact of Foreign Currency Exchange Rates,” above.
Adjusted Operating Income 2018 to 2017 Annual Comparison.
Adjusted operating income decreased $20 million.
The decrease primarily reflected lower other related revenues, net of associated expenses, driven by lower net performance-based incentive fees and lower strategic investing results due to less favorable investment performance.
Also contributing to the decrease was higher non-compensation expenses supporting business growth.
Partially offsetting these decreases were higher asset management fees, net of related expenses, driven by an increase in average assets under management as a result of equity market appreciation and continued strong fixed income flows, partially offset by equity outflows.2017 to 2016 Annual Comparison.
Adjusted operating income increased $192 million.
The increase primarily reflected higher asset management fees, net of related expenses, driven by an increase in average assets under management as a result of net fixed income inflows, market appreciation, and a favorable fee rate modification within certain real estate funds that occurred in the third quarter of 2016.
Also contributing to the increase were higher other related revenues, net of associated expenses, driven by higher strategic investing results due to favorable investment performance, higher net performance-based incentive fees, and an increase in commercial mortgage agency loan originations.
These increases were partially offset by higher expenses.
As of December 31, 2018, the excess of actual cumulative earnings over the expected cumulative earnings was $2,252 million, which was recorded as a policyholder dividend obligation.
Actual cumulative earnings, as required by U. S.  GAAP, reflect the recognition of realized investment gains and losses in the current period, as well as changes in assets and related liabilities that support the Closed Block policies.
Additionally, the accumulation of net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $899 million at December 31, 2018, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI.
Operating Results The following table sets forth the Closed Block division’s results for the periods indicated.
## Table 2 ##
Income (loss) Before Income Taxes and Equity in Earnings of Operating Joint Ventures 2018 to 2017 Annual Comparison.
Income (loss) before income taxes and equity in earnings of operating joint ventures decreased $107 million.
Results for 2018 primarily reflected a $554 million decrease in net realized investment gains and related activity, primarily due to a decline in equity investment values and lower gains from sales of fixed maturities, partially offset by favorable changes in the value of derivatives used in risk management activities.
Net investment income decreased $365 million, primarily driven by lower income on non-coupon investments, lower reinvestments yields and lower prepayment income.
Net insurance activity results increased $144 million, primarily as a result of a decrease in the 2018 dividend scale and runoff of policies in force.
As a result of the above and other variances, a $508 million reduction in the policyholder dividend obligation was recorded in 2018, compared to a $143 million increase in 2017.
If actual cumulative earnings fall below expected cumulative earnings in future periods, earnings volatility in the Closed Block division, which is primarily due to changes in investment results, may not be offset by changes in the cumulative earnings policyholder dividend obligation.
For a discussion of Closed Block division realized investment gains (losses), net, see “—General Account Investments—Realized Investment Gains and Losses.
” 2017 to 2016 Annual Comparison.
Income (loss) before income taxes and equity in earnings of operating joint ventures increased $177 million.
Results for 2017 primarily reflected a $175 million increase in net realized investment gains and related activity, primarily due to higher gains from sales of equity securities and fixed maturities, partially offset by unfavorable changes in the value of derivatives used in risk management activities.
Net insurance activity results increased $92 million, primarily as a result of a decrease in the 2018 dividend scale, partially offset by the runoff of policies in force and higher benefit payments.
Net investment income increased $75 million, primarily driven by higher income on non-coupon investments and higher prepayment income, partially offset by lower reinvestment rates.
As a result of the above and other variances, a $143 million increase in the policyholder dividend obligation was recorded in 2017, compared to $48 million reduction in 2016.
Revenues, Benefits and Expenses 2018 to 2017 Annual Comparison.
Revenues decreased $1,148 million primarily due to decreases of $404 million in net realized investment gains, $365 million in net investment income and $150 million in other revenue, which are discussed above, as well as a decrease of $225 million in premiums due to run-off of policies in force.
Benefits and expenses decreased $1,041 million.
Dividends to policyholders decreased $771 million reflecting a decrease in the policyholder dividend obligation expense driven by a reduction in the 2018 dividend scale as well as changes in cumulative earnings.
Policyholders’ benefits, including changes in reserves, decreased $247 million primarily due to the run-off of policies in force, as discussed above.2017 to 2016 Annual Comparison.
Revenues increased $157 million, primarily due to increases of $100 million in net realized investment gains, $75 million in other revenue and $75 million in net investment income, as discussed above.
Partially offsetting these increases was a decrease in premiums of $94 million, primarily due to run-off of policies in force.
Benefits and expenses decreased $20 million.
Policyholders’ benefits, including changes in reserves, decreased $63 million primarily due to the runoff of policies in force, as discussed above.
Partially offsetting this decrease was an increase in dividends to policyholders of $66 million, reflecting an increase in the policyholder dividend obligation expense due to changes in cumulative earnings.
## Table 3 ##
Year Ended December 31, 2016
## Table 4 ##
(1) The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost.
Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i. e. , income netted for rebate expenses and asset values netted for securities lending liabilities).
A yield is not presented for other invested assets as it is not considered a meaningful measure of investment performance.
Yields exclude investment income and assets related to other invested assets.
Prior period yields have been revised to conform to current period presentation.
(2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in other invested assets.
(3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments, fixed maturities classified as trading and other miscellaneous investments.
(4) Includes net investment income of our investment management operations.
(5) The total yield was 3.77%, 3.68% and 3.82% for the years ended December 31, 2018, 2017 and 2016, respectively.
The increase in investment income after investment expenses yield attributable to our general account investments, excluding both the Closed Block division and the Japanese insurance operations’ portfolio, for 2018 compared to 2017 was primarily the result of higher fixed income reinvestment rates.
The decrease in investment income after investment expenses yield attributable to our general account investments, excluding both the Closed Block division and the Japanese insurance operations’ portfolio, for 2017 compared to 2016 was primarily the result of lower fixed income reinvestment rates.
The decrease in investment income after investment expenses yield on the Japanese insurance operations’ portfolio for 2018 compared to 2017 was primarily attributable to lower fixed income reinvestment rates and lower fixed maturity prepayment fees and call premiums.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Fiscal 2007</td><td>Fiscal 2006</td></tr><tr><td>Shares outstanding at beginning of period</td><td>1,049</td><td>1,058</td></tr><tr><td>Net impact of stock option exercises and other share issuances</td><td>59</td><td>43</td></tr><tr><td>Treasury stock purchases</td><td>-52</td><td>-52</td></tr><tr><td>Shares outstanding at end of period</td><td>1,056</td><td>1,049</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Operating results-1:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$3,294</td><td>$3,355</td><td>$2,961</td></tr><tr><td>Expenses</td><td>2,335</td><td>2,376</td><td>2,174</td></tr><tr><td>Adjusted operating income</td><td>959</td><td>979</td><td>787</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments</td><td>-10</td><td>-4</td><td>-6</td></tr><tr><td>Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests</td><td>-21</td><td>95</td><td>45</td></tr><tr><td>Income (loss) before income taxes and equity in earnings of operating joint ventures</td><td>$928</td><td>$1,070</td><td>$826</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>U.S. GAAP results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$4,678</td><td>$5,826</td><td>$5,669</td></tr><tr><td>Benefits and expenses</td><td>4,740</td><td>5,781</td><td>5,801</td></tr><tr><td>Income (loss) before income taxes and equity in earnings of operating joint ventures</td><td>$-62</td><td>$45</td><td>$-132</td></tr></table>
<table><tr><td></td><td colspan="8">Year Ended December 31, 2017</td></tr><tr><td></td><td colspan="2">PFI Excluding Closed Block Division and Japanese Operations</td><td colspan="2">Japanese Insurance Operations</td><td colspan="2">PFI Excluding Closed Block Division</td><td>Closed Block Division</td><td>Total-5</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Amount</td><td>Amount</td></tr><tr><td></td><td colspan="8">($ in millions)</td></tr><tr><td>Fixed maturities-2</td><td>4.61%</td><td>$6,464</td><td>3.06%</td><td>$3,624</td><td>3.90%</td><td>$10,088</td><td>$1,770</td><td>$11,858</td></tr><tr><td>Assets supporting experience-rated contractholder liabilities</td><td>3.61</td><td>695</td><td>1.73</td><td>41</td><td>3.40</td><td>736</td><td>0</td><td>736</td></tr><tr><td>Equity securities</td><td>5.75</td><td>247</td><td>2.91</td><td>79</td><td>4.65</td><td>326</td><td>50</td><td>376</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.13</td><td>1,285</td><td>4.05</td><td>515</td><td>4.10</td><td>1,800</td><td>449</td><td>2,249</td></tr><tr><td>Policy loans</td><td>5.41</td><td>250</td><td>4.00</td><td>97</td><td>4.92</td><td>347</td><td>271</td><td>618</td></tr><tr><td>Short-term investments and cash equivalents</td><td>1.31</td><td>158</td><td>1.25</td><td>14</td><td>1.31</td><td>172</td><td>25</td><td>197</td></tr><tr><td>Gross investment income</td><td>4.02</td><td>9,099</td><td>3.11</td><td>4,370</td><td>3.66</td><td>13,469</td><td>2,565</td><td>16,034</td></tr><tr><td>Investment expenses</td><td>-0.14</td><td>-306</td><td>-0.12</td><td>-184</td><td>-0.13</td><td>-490</td><td>-177</td><td>-667</td></tr><tr><td>Investment income after investment expenses</td><td>3.88%</td><td>8,793</td><td>2.99%</td><td>4,186</td><td>3.53%</td><td>12,979</td><td>2,388</td><td>15,367</td></tr><tr><td>Other invested assets-3</td><td></td><td>498</td><td></td><td>132</td><td></td><td>630</td><td>265</td><td>895</td></tr><tr><td>Investment results of other entities and operations-4</td><td></td><td>173</td><td></td><td>0</td><td></td><td>173</td><td>0</td><td>173</td></tr><tr><td>Total investment income</td><td></td><td>$9,464</td><td></td><td>$4,318</td><td></td><td>$13,782</td><td>$2,653</td><td>$16,435</td></tr></table>
<table><tr><td></td><td colspan="8">Year Ended December 31, 2016</td></tr><tr><td></td><td colspan="2">PFI Excluding Closed Block Division and Japanese Operations</td><td colspan="2">Japanese Insurance Operations</td><td colspan="2">PFI Excluding Closed Block Division</td><td>Closed Block Division</td><td>Total-5</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Amount</td><td>Amount</td></tr><tr><td></td><td colspan="8">($ in millions)</td></tr><tr><td>Fixed maturities-2</td><td>4.63%</td><td>$6,043</td><td>3.14%</td><td>$3,472</td><td>3.95%</td><td>$9,515</td><td>$1,696</td><td>$11,211</td></tr><tr><td>Assets supporting experience-rated contractholder liabilities</td><td>3.80</td><td>721</td><td>1.75</td><td>37</td><td>3.59</td><td>758</td><td>0</td><td>758</td></tr><tr><td>Equity securities</td><td>5.40</td><td>232</td><td>2.46</td><td>75</td><td>4.18</td><td>307</td><td>59</td><td>366</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.35</td><td>1,306</td><td>4.23</td><td>445</td><td>4.32</td><td>1,751</td><td>476</td><td>2,227</td></tr><tr><td>Policy loans</td><td>5.49</td><td>252</td><td>4.05</td><td>95</td><td>5.00</td><td>347</td><td>280</td><td>627</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.67</td><td>113</td><td>0.78</td><td>9</td><td>0.68</td><td>122</td><td>20</td><td>142</td></tr><tr><td>Gross investment income</td><td>4.26</td><td>8,667</td><td>3.19</td><td>4,133</td><td>3.84</td><td>12,800</td><td>2,531</td><td>15,331</td></tr><tr><td>Investment expenses</td><td>-0.13</td><td>-248</td><td>-0.12</td><td>-165</td><td>-0.14</td><td>-413</td><td>-156</td><td>-569</td></tr><tr><td>Investment income after investment expenses</td><td>4.13%</td><td>8,419</td><td>3.07%</td><td>3,968</td><td>3.70%</td><td>12,387</td><td>2,375</td><td>14,762</td></tr><tr><td>Other invested assets-3</td><td></td><td>344</td><td></td><td>129</td><td></td><td>473</td><td>203</td><td>676</td></tr><tr><td>Investment results of other entities and operations-4</td><td></td><td>82</td><td></td><td>0</td><td></td><td>82</td><td>0</td><td>82</td></tr><tr><td>Total investment income</td><td></td><td>$8,845</td><td></td><td>$4,097</td><td></td><td>$12,942</td><td>$2,578</td><td>$15,520</td></tr></table>

Question: In what sections is Assets supporting experience-rated contractholder liabilities positive?
Answer: PFI Excluding Closed Block Division and Japanese Operations and Japanese Insurance OperationsPFI Excluding Closed Block DivisionTotal-5