Net revenues include $3.8 billion in 2017 and $739 million in 2016 related to the sale of RRPs, mainly driven by Japan.
These net revenue amounts include excise taxes billed to customers.
Excluding excise taxes, net revenues for RRPs were $3.6 billion in 2017 and $733 million in 2016.
In some jurisdictions, including Japan, we are not responsible for collecting excise taxes.
In 2017, approximately $0.9 billion of our $3.6 billion in RRP net revenues, excluding excise taxes, were from IQOS devices and accessories.
Excise taxes on products increased by $1.1 billion, due to:?
higher excise taxes resulting from changes in retail prices and tax rates ($4.6 billion), partially offset by?
favorable currency ($1.9 billion) and ?
lower excise taxes resulting from volume/mix ($1.6 billion).
Our cost of sales; marketing, administration and research costs; and operating income were as follows:
## Table 0 ##
Cost of sales increased by $1.0 billion, due to:?
higher cost of sales resulting from volume/mix ($1.1 billion), partly offset by ?
lower manufacturing costs ($36 million) and ?
favorable currency ($30 million).
Marketing, administration and research costs increased by $320 million, due to:?
higher expenses ($570 million, largely reflecting increased investment behind reduced-risk products, predominately in the European Union and Asia), partly offset by?
favorable currency ($250 million).
Operating income increased by $688 million, due primarily to:?
price increases ($1.4 billion), partly offset by ?
higher marketing, administration and research costs ($570 million) and?
unfavorable currency ($157 million).
Interest expense, net, of $914 million increased by $23 million, due primarily to unfavorably currency and higher average debt levels, partly offset by higher interest income.
Our effective tax rate increased by 12.8 percentage points to 40.7%.
The 2017 effective tax rate was unfavorably impacted by $1.6 billion due to the Tax Cuts and Jobs Act.
For further details, see Item 8, Note 11.
Income Taxes to our consolidated financial statements.
We are continuing to evaluate the impact that the Tax Cuts and Jobs Act will have on our tax liability.
Based upon our current interpretation of the Tax Cuts and Jobs Act, we estimate that our 2018 effective tax rate will be approximately 28%, subject to future regulatory developments and earnings mix by taxing jurisdiction.
We are regularly examined by tax authorities around the world, and we are currently under examination in a number of jurisdictions.
It is reasonably possible that within the next 12 months certain tax examinations will close, which could result in a change in unrecognized tax benefits along with related interest and penalties.
An estimate of any possible change cannot be made at this time.
Net earnings attributable to PMI of $6.0 billion decreased by $932 million (13.4%).
This decrease was due primarily to a higher effective tax rate as discussed above, partly offset by higher operating income.
Diluted and basic EPS of $3.88 decreased by 13.4%.
Excluding
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 13.
STOCKHOLDERS’ EQUITY (continued) Comprehensive Income The components of comprehensive income for the years ended December 31, are as follows:
## Table 1 ##
(1) Includes cash flow hedges.
See Note 19 for information on cash flow hedges.
The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the years ended December 31, are as follows (net of taxes):
## Table 2 ##
(1) Includes cash flow hedges.
See Note 19 for information on cash flow hedges.
(2) Net unrealized investment gains (losses) for 2004 includes the impact of cumulative effect of accounting change of $73 million.
Statutory Net Income and Surplus Prudential Financial’s U. S.  insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile.
Statutory accounting practices primarily differ from U. S.  GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis.
Statutory net income of Prudential Insurance amounted to $2,170 million, $1,878 million and $1,231 million for the years ended December 31, 2005, 2004 and 2003, respectively.
Statutory capital and surplus of Prudential Insurance amounted to $7,065 million and $8,420 million at December 31, 2005 and 2004, respectively.14.
EARNINGS PER SHARE The Company has outstanding two separate classes of common stock.
The Common Stock reflects the performance of the Financial Services Businesses and the Class B Stock reflects the performance of the Closed Block Business.
Accordingly, earnings per share is calculated separately for each of these two classes of common stock.
arithmetic average of prospective returns, which is based upon a risk free rate as of the measurement date adjusted by a risk premium that considers historical statistics and expected investment manager performance, for equity, debt and real estate markets applied on a weighted average basis to our pension asset portfolio.
Giving effect to the foregoing assumptions, we expect on a consolidated basis income from our own qualified pension plan will continue to contribute to adjusted operating income in 2006, but at a level of about $65 million to $75 million below that of the year 2005.
In 2006, pension service costs related to active employees will continue to be allocated to our business segments.
Adjusted operating income of our real estate and relocation services business increased $4 million, from $101 million in 2004 to $105 million in 2005.
The improvement is the result of higher revenues in our real estate franchise operations and higher operating income in our real estate financing business due to increased real estate transaction volumes and home prices.2004 to 2003 Annual Comparison.
Corporate and Other had adjusted operating income of $167 million in 2004 compared to $84 million in 2003.
Adjusted operating income from corporate operations increased by $45 million, from $21 million in 2003 to $66 million in 2004.
Corporate operations includes income from our qualified pension plan of $466 million in 2004, an increase of $94 million from $372 million in 2003, reflecting an increase in the allocation to other segments of pension service costs.
The increase in allocated pension service costs in 2004 was partially offset by a reduction in the allocation to other segments of other benefit costs related to non-active employees that are now retained in corporate operations.
In 2003, Corporate operations general and administrative expenses included $37 million of costs related to a structured financing transaction we entered into prior to our demutualization.
General and administrative expenses, other than this cost, increased $42 million in comparison to 2003, reflecting the reduction in the allocation to other segments of other benefit costs related to non-active employees discussed above.
Our 2004 results reflect an initial $39 million benefit from reduction in postretirement benefit costs relating to the Medicare Prescription Drug, Improvement and Modernization Act of 2003.
Corporate operations included $68 million of costs in 2004 from retained obligations relating to policyholders with whom we had previously agreed to provide insurance for reduced or no premium in accordance with contractual settlements related to prior individual life sales practices remediation, as compared to $23 million in 2003.
The costs in 2004 include the impact of a reduction in our policy dividend scale, as discussed above.
Adjusted operating income of our real estate and relocation services increased by $38 million, from $63 million in 2003 to $101 million in 2004.
The improvement is the result of higher revenues in our real estate franchise operations and higher operating income in our real estate financing business due to increased real estate transaction volumes and home prices.
Results of Operations of Closed Block Business We established the Closed Block Business effective as of the date of demutualization.
The Closed Block Business includes our in force traditional domestic participating life insurance and annuity products and assets that are used for the payment of benefits and policyholder dividends on these policies, as well as other assets and equity and related liabilities that support these policies.
We no longer offer these traditional domestic participating policies.
See “—Overview—Closed Block Business” for additional details.
At the end of each year, the Board of Directors of Prudential Insurance determines the dividends payable on participating policies for the following year based on the experience of the Closed Block, including investment income, net realized and unrealized investment gains, mortality experience and other factors.
Although Closed Block experience for dividend action decisions is based upon statutory results, at the time the Closed Block was established, we developed, as required by GAAP, an actuarial calculation of the timing of the maximum future earnings from the policies included in the Closed Block.
If actual cumulative earnings in any given period are greater than the cumulative earnings we expect, we will record this excess as a policyholder dividend obligation.
We will subsequently pay this excess to Closed Block policyholders as an additional dividend unless it is otherwise offset by future Closed Block performance that is less favorable than we originally expected.
The policyholder dividends we charge to expense within the Closed Block Business include any change in policyholder dividend obligations that we recognize for the excess of actual cumulative earnings in any given period over the cumulative earnings we expect in addition to the actual policyholder dividends declared by the Board of Directors of Prudential Insurance.
As of December 31, 2005, the Company has recognized a policyholder dividend obligation to Closed Block policyholders for the excess of actual cumulative earnings over the expected cumulative earnings of $326 million.
Actual cumulative earnings, as required by GAAP, reflect the recognition of realized capital gains in the current period.
Additionally, net unrealized investment gains have arisen subsequent to the establishment of the Closed Block due to the impact of lower interest rates on the market value of fixed maturities available for sale.
These net unrealized investment gains have been reflected as a policyholder dividend obligation of $2.302 billion, as of December 31, 2005, to be paid to Closed Block policyholders, unless otherwise offset by future experience, with an offsetting amount reported in accumulated other comprehensive income.
Operating Results Management does not consider adjusted operating income to assess the operating performance of the Closed Block Business.
Consequently, results of the Closed Block Business for all periods are presented only in accordance with GAAP.
The following table sets forth the Closed Block Business GAAP results for the periods indicated.
## Table 3 ##
For the year ended December 31, 2004, the difference between taxes excluding the items shown above and taxes that would have resulted from the application of the statutory rate is attributable, in part, to an increase in foreign and domestic tax credits and a decrease in state income taxes.
For the year ended December 31, 2003, the difference between taxes excluding the items shown above and taxes that would have resulted from the application of the statutory rate is attributable, in part, to reductions in foreign tax rates and an increase in tax credits, offset by an increase in state income taxes.
Discontinued Operations Included within net income are the results of businesses which are reflected as discontinued operations under GAAP.
A summary of the results of discontinued operations by business is as follows for the periods indicated:

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>For the Years Ended December 31,</td><td>Variance</td></tr><tr><td>(in millions)</td><td>2017</td><td>2016</td><td>$</td><td>%</td></tr><tr><td>Cost of sales</td><td>$10,432</td><td>$9,391</td><td>$1,041</td><td>11.1%</td></tr><tr><td>Marketing, administration and research costs</td><td>6,725</td><td>6,405</td><td>320</td><td>5.0%</td></tr><tr><td>Operating income</td><td>11,503</td><td>10,815</td><td>688</td><td>6.4%</td></tr></table>
<table><tr><td></td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Net income</td><td>$3,540</td><td>$2,256</td><td>$1,264</td></tr><tr><td>Other comprehensive income, net of tax:</td><td></td><td></td><td></td></tr><tr><td>Change in foreign currency translation adjustments</td><td>-401</td><td>327</td><td>153</td></tr><tr><td>Change in net unrealized investments gains (losses)(1)</td><td>-445</td><td>-627</td><td>-259</td></tr><tr><td>Additional pension liability adjustment</td><td>-111</td><td>-28</td><td>-33</td></tr><tr><td>Cumulative effect of accounting change</td><td>—</td><td>73</td><td>—</td></tr><tr><td>Other comprehensive loss, net of tax benefit of $371, $461, $159</td><td>-957</td><td>-255</td><td>-139</td></tr><tr><td>Comprehensive income</td><td>$2,583</td><td>$2,001</td><td>$1,125</td></tr></table>
<table><tr><td></td><td colspan="4">Accumulated Other Comprehensive Income (Loss)</td></tr><tr><td></td><td>Foreign Currency Translation Adjustments</td><td>Net Unrealized Investment Gains (Losses)(1)</td><td>Pension Liability Adjustment</td><td>Total Accumulated Other Comprehensive Income (Loss)</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Balance, December 31, 2002</td><td>$-154</td><td>$2,834</td><td>$-95</td><td>$2,585</td></tr><tr><td>Change in component during year</td><td>153</td><td>-259</td><td>-33</td><td>-139</td></tr><tr><td>Balance, December 31, 2003</td><td>-1</td><td>2,575</td><td>-128</td><td>2,446</td></tr><tr><td>Change in component during year-2</td><td>327</td><td>-554</td><td>-28</td><td>-255</td></tr><tr><td>Balance, December 31, 2004</td><td>326</td><td>2,021</td><td>-156</td><td>2,191</td></tr><tr><td>Change in component during year</td><td>-401</td><td>-445</td><td>-111</td><td>-957</td></tr><tr><td>Balance, December 31, 2005</td><td>$-75</td><td>$1,576</td><td>$-267</td><td>$1,234</td></tr></table>
<table><tr><td></td><td colspan="3"> Year ended December 31, </td></tr><tr><td></td><td> 2005 </td><td> 2004 </td><td> 2003 </td></tr><tr><td></td><td colspan="3"> (in millions)</td></tr><tr><td> GAAP results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$8,026</td><td>$8,231</td><td>$7,982</td></tr><tr><td>Benefits and expenses</td><td>7,544</td><td>7,316</td><td>7,612</td></tr><tr><td>Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accountingchange</td><td>$482</td><td>$915</td><td>$370</td></tr></table>

Question: Which year is Change in foreign currency translation adjustments the most?
Answer: 2004