Part I Item 1.  Business.
General Development of Business General: Altria Group, Inc.  is a holding company incorporated in the Commonwealth of Virginia in 1985.
At December 31, 2014, Altria Group, Inc. ’s wholly-owned subsidiaries included Philip Morris USA Inc.  (“PM USA”), which is engaged predominantly in the manufacture and sale of cigarettes in the United States; John Middleton Co.  (“Middleton”), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco, and is a whollyowned subsidiary of PM USA; and UST LLC (“UST”), which through its wholly-owned subsidiaries, including U. S.  Smokeless Tobacco Company LLC (“USSTC”) and Ste.
Michelle Wine Estates Ltd.  (“Ste.
Michelle”), is engaged in the manufacture and sale of smokeless tobacco products and wine.
Altria Group, Inc. ’s other operating companies included Nu Mark LLC (“Nu Mark”), a wholly-owned subsidiary that is engaged in the manufacture and sale of innovative tobacco products, and Philip Morris Capital Corporation (“PMCC”), a wholly-owned subsidiary that maintains a portfolio of finance assets, substantially all of which are leveraged leases.
Other Altria Group, Inc.  wholly-owned subsidiaries included Altria Group Distribution Company, which provides sales, distribution and consumer engagement services to certain Altria Group, Inc.  operating subsidiaries, and Altria Client Services Inc. , which provides various support services, such as legal, regulatory, finance, human resources and external affairs, to Altria Group, Inc.  and its subsidiaries.
At December 31, 2014, Altria Group, Inc.  also held approximately 27% of the economic and voting interest of SABMiller plc (“SABMiller”), which Altria Group, Inc.  accounts for under the equity method of accounting.
Source of Funds: Because Altria Group, Inc.  is a holding company, its access to the operating cash flows of its whollyowned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries.
At December 31, 2014, Altria Group, Inc. ’s principal wholly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests.
In addition, Altria Group, Inc.  receives cash dividends on its interest in SABMiller if and when SABMiller pays such dividends.
Financial Information About Segments Altria Group, Inc. ’s reportable segments are smokeable products, smokeless products and wine.
The financial services and the innovative tobacco products businesses are included in an all other category due to the continued reduction of the lease portfolio of PMCC and the relative financial contribution of Altria Group, Inc. ’s innovative tobacco products businesses to Altria Group, Inc. ’s consolidated results.
Altria Group, Inc. ’s chief operating decision maker reviews operating companies income to evaluate the performance of, and allocate resources to, the segments.
Operating companies income for the segments is defined as operating income before amortization of intangibles and general corporate expenses.
Interest and other debt expense, net, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by Altria Group, Inc. ’s chief operating decision maker.
Net revenues and operating companies income (together with a reconciliation to earnings before income taxes) attributable to each such segment for each of the last three years are set forth in Note 15.
Segment Reporting to the consolidated financial statements in Item 8.
Financial Statements and Supplementary Data of this Annual Report on Form 10-K (“Item 8”).
Information about total assets by segment is not disclosed because such information is not reported to or used by Altria Group, Inc. ’s chief operating decision maker.
Segment goodwill and other intangible assets, net, are disclosed in Note 4.
Goodwill and Other Intangible Assets, net to the consolidated financial statements in Item 8 (“Note 4”).
The accounting policies of the segments are the same as those described in Note 2.
Summary of Significant Accounting Policies to the consolidated financial statements in Item 8 (“Note 2”).
The relative percentages of operating companies income (loss) attributable to each reportable segment and the all other category were as follows:
## Table 0 ##
For items affecting the comparability of the relative percentages of operating companies income (loss) attributable to each reportable segment, see Note 15.
Segment Reporting to the consolidated financial statements in Item 8 (“Note 15”).
Narrative Description of Business Portions of the information called for by this Item are included in Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Operating Results by Business Segment of this Annual Report on Form 10-K.  Tobacco Space Altria Group, Inc. ’s tobacco operating companies include PM USA, USSTC and other subsidiaries of UST, Middleton and Nu Mark.
Altria Group Distribution Company provides sales, distribution and consumer engagement services to Altria Group, Inc. ’s tobacco operating companies.
The products of Altria Group, Inc. ’s tobacco subsidiaries include smokeable tobacco products comprised of cigarettes manufactured and sold by PM USA and machine-made large
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 5.
Variable Interest Entities — (continued) interest-only certificate and to all principal payments.
We retained the interest-only certificate and the residual certificates were subsequently sold to a third party.
We have determined that these grantor trusts are VIEs as our interest-only certificates are exposed to the majority of the risk of loss due to interest rate risk.
The restricted interest periods end between 2016 and 2020 and, at that time, the residual certificate holders’ certificates are redeemed by the trust in return for the notes.
We have determined that it will be necessary for us to consolidate these entities until the expiration of the interest-only period.
As of December 31, 2008 and 2007, our consolidated statements of financial position include $212.2 million and $332.1 million, respectively, of undated subordinated floating rate notes of the grantor trusts, which are classified as available-for-sale fixed maturity securities and represent the collateral held by the trust.
The obligation to deliver the underlying securities to the residual certificate holders of $103.8 million and $155.6 million as of December 31, 2008 and 2007, respectively, is classified as an other liability and contains an embedded derivative of the forecasted transaction to deliver the underlying securities.
The creditors of the grantor trusts have no recourse to our assets.
Other.
In addition to the entities above, we have a number of relationships with a disparate group of entities, which meet the criteria for VIEs.
Due to the nature of our direct investment in the equity and/or debt of these VIEs, we are the primary beneficiary of such entities, which requires us to consolidate them.
These entities include seven private investment vehicles and several hedge funds.
The consolidation of these VIEs did not have a material effect on either our consolidated statements of financial position as of December 31, 2008 or 2007, or results of operations for the years ended December 31, 2008, 2007 and 2006.
For these entities, the creditors have no recourse to our assets.
The carrying amount and classification of other consolidated VIE assets that are pledged as collateral that the VIEs have designated for their other obligations and the debt of the VIEs are as follows:
## Table 1 ##
As of December 31, 2008 and 2007, $292.5 million and $334.8 million, respectively, of assets were pledged as collateral for the VIE entities’ other obligations and debt.
The assets of the trusts are held by a trustee and can only be liquidated to settle obligations of the trusts.
These obligations primarily include unrealized losses on derivatives, the synthetic reference portfolios or financial guarantees and the return of investments due to maturity or termination of the trusts.
As of December 31, 2008 and 2007, these entities had long-term debt of $142.6 million and $175.6 million, respectively, all of which was issued to our affiliates and, therefore, eliminated upon consolidation.
Significant Unconsolidated Variable Interest Entities We hold a significant variable interest in a number of VIEs where we are not the primary beneficiary.
These entities include private investment vehicles that have issued trust certificates that are recorded as available-for-sale fixed maturity securities in the consolidated statements of financial position.
On September 21, 2001, we entered into a transaction where a third party transferred funds to a trust.
The trust purchased shares of a specific money market fund and then separated the cash flows of the money market shares into share receipts and dividend receipts.
The dividend receipts entitle the holder to dividends paid for a specified term while the share receipts, purchased at a discount, entitle the holder to dividend payments subsequent to the term of the dividend receipts and the rights to the underlying shares.
We purchased $150.0 million par value of the share receipts at a significant discount.
After the restricted dividend period ends on December 21, 2021, we, as the share receipt holder, have the right to terminate the trust agreement and will receive the underlying money market fund shares.
We determined the primary beneficiary is the dividend receipt holder, which has the majority of the risk of loss.
Our maximum exposure to loss as a result of our involvement with this entity is our investment in the share receipts as measured by amortized cost and indicated in the following table.
On June 20, 1997, we entered into a transaction in which we purchased a residual trust certificate with a par value of $100.0 million.
The trust separated the cash flows of an underlying security into an interest-only certificate that entitles the third party certificate holder to the stated interest on the underlying security through May 15, 2017, and a residual
Financial Strength Rating and Credit Ratings Our ratings are influenced by many factors including our operating and financial performance, asset quality, liquidity, asset/liability management, overall portfolio mix, financial leverage (i. e. , debt), risk exposures, operating leverage, ratings and other factors.
NRSROs publish financial strength ratings on U. S.  life insurance companies that are indicators of an insurance company’s ability to meet contractholder and policyholder obligations.
NRSROs also assign credit ratings on non-life insurance entities, such as PFG and PFS.
Credit ratings are indicators of a debt issuer’s ability to meet the terms of debt obligations in a timely manner, and are important factors in overall funding profile and ability to access external capital.
Such ratings are not a recommendation to buy, sell or hold securities.
Ratings are subject to revision or withdrawal at any time by the assigning NRSRO, and each rating should be evaluated independently of any other rating.
Ratings are important factors in establishing the competitive position of insurance companies and maintaining public confidence in products being offered.
A ratings downgrade, or the potential for such a downgrade, could, among other things: (i) materially increase the number of surrenders for all or a portion of the net cash values by the owners of policies, contracts, general account GICs we have issued, and materially increase the number of withdrawals by policyholders of cash values from their policies; (ii) result in the termination of our relationships with broker-dealers, banks, agents, wholesalers and other distributors of our products and services; (iii) reduce new sales, particularly with respect to general account GICs and funding agreements purchased by pension plans and other institutions; (iv) cause some of our existing liabilities to be subject to acceleration, additional collateral support, changes in terms, or creation of additional financial obligations and (v) increase our cost of capital and limit our access to the capital markets.
Any of these consequences could adversely affect our profitability and financial condition.
In recent months, each of A. M.  Best Company, Inc. , Fitch Ratings Ltd. , Moody’s Investors Service, and Standard & Poor’s has revised its outlook for the U. S.  life insurance industry from stable to negative.
Of the many issues cited, the negative outlook is primarily based on expectations for higher-than-normal credit losses, negative impact of the volatile equity market on earnings and reduced financial flexibility.
These outlook revisions signal increased review of U. S.  life insurance companies by A. M.  Best Company, Inc. , Fitch Ratings, Ltd. , Moody’s Investors Service, and Standard & Poor’s.
As a result, it is possible there will be changes in the benchmarks for capital, liquidity, earnings and other factors used by these NRSROs that are critical to a ratings assignment at a particular rating level.
If any such changes are made, it is possible that such changes could have an impact on the ratings of U. S.  life insurance companies, including ours, which could adversely impact our profitability and financial condition.
As a reflection of the change by the rating agencies of their view of the market and the impact on life insurance companies, on February 10, 2009, Moody’s Investors Service affirmed Principal Life’s insurance financial strength rating, with a negative outlook, and Standard & Poor’s also affirmed Principal Life’s insurance financial strength rating, with a credit watch — negative outlook.
While the affirmations reflect our financial strength, operating performance and ability to meet obligations, the negative and credit watch — negative outlooks reflect Moody’s Investors Service and Standard & Poor’s expectations that equity market risk will have an impact on our earnings, and that there will be additional asset impairments.
On February 13, 2009, Fitch Ratings Ltd.  downgraded Principal Life’s insurance financial strength rating to AA , with a rating watch — negative outlook.
While the AA rating is still considered strong, macroeconomic pressure is impacting the outlook for the rating.
The following table summarizes our significant financial ratings from the major independent rating organizations:
## Table 2 ##
Impacts of Income Taxes For income tax information, see Item 8.
‘‘Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 13, Income Taxes.
’’ Fair Value Measurement As discussed in Item 8.
‘‘Financial Statements, Notes to Consolidated Financial Statements, Note 17, Fair Value Measurement’’ we adopted SFAS 157 effective January 1, 2008.
SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price) and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
A dedicated risk management team is responsible for centralized monitoring of the commercial mortgage loan portfolio.
We apply a variety of strategies to minimize credit risk in our commercial mortgage loan portfolio.
When considering the origination of new commercial mortgage loans, we review the cash flow fundamentals of the property, make a physical assessment of the underlying security, conduct a comprehensive market analysis and compare against industry lending practices.
We use a proprietary risk rating model to evaluate all new and a majority of existing loans within the portfolio.
The proprietary risk model is designed to stress projected cash flows under simulated economic and market downturns.
Our lending guidelines are designed to encourage 75% or less loan-to-value ratios and a debt service coverage ratio of at least 1.2 times.
We analyze investments outside of these guidelines based on cash flow quality, tenancy and other factors.
The weighted average loan-to-value ratio at origination for brick and mortar commercial mortgages in our portfolio was 59% and 65% as of December 31, 2008 and 2007, respectively.
The debt service coverage ratio at loan inception was 1.7 times as of both December 31, 2008 and 2007.
We have limited exposure to equity risk in our common stock portfolio.
Our investment decisions and objectives are a function of the underlying risks and product profiles of each primary business operation.
In addition, we diversify our product portfolio offerings to include products that contain features that will protect us against fluctuations in interest rates.
Those features include adjustable crediting rates, policy surrender charges and market value adjustments on liquidations.
For further information on our management of interest rate risk, see Item 7A.
‘‘Quantitative and Qualitative Disclosures About Market Risk — Interest Rate Risk.
’’ Overall Composition of U. S.  Invested Assets U. S.  invested assets as of December 31, 2008, were predominantly high quality and broadly diversified across asset class, individual credit, industry and geographic location.
Asset allocation is determined based on cash flow and the risk/ return requirements of our products.
As shown in the following table, the major categories of U. S.  invested assets are fixed maturity securities and commercial mortgage loans.
The remainder is invested in residential mortgage loans, real estate, equity securities and other assets.
In addition, policy loans are included in our invested assets.
The following discussion analyzes the composition of U. S.  invested assets, but excludes invested assets of the separate accounts.
## Table 3 ##
Fixed Maturity Securities Fixed maturity securities consist of short-term investments, publicly traded debt securities, privately placed debt securities and redeemable preferred stock.
Included in the privately placed category as of December 31, 2008 and 2007, were $6.1 billion and $8.4 billion, respectively, of securities eligible for resale to qualified institutional buyers under Rule 144A under the Securities Act of 1933.
Fixed maturity securities were diversified by category of issuer as of December 31, 2008 and 2007, as shown in the following table:
## Table 4 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Smokeable products</td><td>87.2%</td><td>84.5%</td><td>83.7%</td></tr><tr><td>Smokeless products</td><td>13.4</td><td>12.2</td><td>12.5</td></tr><tr><td>Wine</td><td>1.7</td><td>1.4</td><td>1.4</td></tr><tr><td>All other</td><td>-2.3</td><td>1.9</td><td>2.4</td></tr><tr><td>Total</td><td>100.0%</td><td>100.0%</td><td>100.0%</td></tr></table>
<table><tr><td> </td><td colspan="2"> December 31,</td></tr><tr><td> </td><td> 2008</td><td> 2007</td></tr><tr><td> </td><td colspan="2"><i>(in millions)</i> </td></tr><tr><td>Fixed maturity securities, available-for-sale</td><td>$103.8</td><td>$116.2</td></tr><tr><td>Fixed maturity securities, trading</td><td>17.2</td><td>34.7</td></tr><tr><td>Equity securities, trading</td><td>30.7</td><td>90.1</td></tr><tr><td>Cash and other assets</td><td>140.8</td><td>93.8</td></tr><tr><td>Total assets pledged as collateral</td><td>$292.5</td><td>$334.8</td></tr><tr><td>Long-term debt and other obligations</td><td>$334.2</td><td>$327.2</td></tr></table>
<table><tr><td> </td><td> A.M. Best</td><td> Fitch</td><td> Standard & Poor's</td><td> Moody's</td></tr><tr><td> Principal Financial Group</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior Unsecured Debt</td><td></td><td></td><td>A</td><td>A3</td></tr><tr><td>Preferred Stock</td><td></td><td></td><td>BBB+</td><td>Baa2</td></tr><tr><td> Principal Financial Services</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior Unsecured Debt</td><td></td><td></td><td>A</td><td>A2</td></tr><tr><td>Commercial Paper</td><td></td><td></td><td>A-1</td><td>P-1</td></tr><tr><td> Principal Life Insurance Company</td><td></td><td></td><td></td><td></td></tr><tr><td>Insurer Financial Strength</td><td>A+</td><td>AA-</td><td>AA</td><td>Aa2</td></tr><tr><td>Enterprise Risk Management Rating</td><td></td><td></td><td>Strong</td><td></td></tr></table>
<table><tr><td> </td><td colspan="2">December 31, 2008</td><td colspan="2"> December 31, 2007</td></tr><tr><td> </td><td> Carrying amount</td><td>% of total</td><td> Carrying amount</td><td> % of total</td></tr><tr><td> </td><td colspan="4"><i>($ in millions)</i> </td></tr><tr><td>Fixed maturity securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Public</td><td>$26,652.5</td><td>48%</td><td>$29,127.7</td><td>48%</td></tr><tr><td>Private</td><td>12,173.9</td><td>22</td><td>15,421.0</td><td>26</td></tr><tr><td>Equity securities</td><td>359.9</td><td>1</td><td>533.5</td><td>1</td></tr><tr><td>Mortgage loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>11,279.3</td><td>20</td><td>10,763.5</td><td>18</td></tr><tr><td>Residential</td><td>1,354.4</td><td>2</td><td>1,337.5</td><td>2</td></tr><tr><td>Real estate held for sale</td><td>135.4</td><td>—</td><td>82.4</td><td>—</td></tr><tr><td>Real estate held for investment</td><td>779.8</td><td>1</td><td>777.2</td><td>1</td></tr><tr><td>Policy loans</td><td>881.4</td><td>2</td><td>853.7</td><td>2</td></tr><tr><td>Other investments</td><td>2,162.4</td><td>4</td><td>1,391.4</td><td>2</td></tr><tr><td>Total invested assets</td><td>55,779.0</td><td>100%</td><td>60,287.9</td><td>100%</td></tr><tr><td>Cash and cash equivalents</td><td>2,537.0</td><td></td><td>1,261.5</td><td></td></tr><tr><td>Total invested assets and cash</td><td>$58,316.0</td><td></td><td>$61,549.4</td><td></td></tr></table>
<table><tr><td> </td><td colspan="2">December 31, 2008</td><td colspan="2"> December 31, 2007</td></tr><tr><td> </td><td> Carrying amount</td><td>% of total</td><td> Carrying amount</td><td> % of total</td></tr><tr><td> </td><td colspan="4"><i>($ in millions)</i> </td></tr><tr><td>U.S. Government and agencies</td><td>$595.2</td><td>1%</td><td>$672.3</td><td>2%</td></tr><tr><td>States and political subdivisions</td><td>2,176.7</td><td>6</td><td>2,071.5</td><td>5</td></tr><tr><td>Non-U.S. governments</td><td>478.5</td><td>1</td><td>453.9</td><td>1</td></tr><tr><td>Corporate — public</td><td>17,224.9</td><td>44</td><td>19,517.9</td><td>44</td></tr><tr><td>Corporate — private</td><td>10,365.4</td><td>27</td><td>12,170.4</td><td>27</td></tr><tr><td>Residential pass-through securities</td><td>2,187.9</td><td>6</td><td>1,496.1</td><td>3</td></tr><tr><td>Commercial mortgage-backed securities</td><td>3,607.1</td><td>9</td><td>4,665.6</td><td>10</td></tr><tr><td>Residential collateralized mortgage obligations</td><td>768.6</td><td>2</td><td>936.9</td><td>2</td></tr><tr><td>Asset-backed securities</td><td>1,422.1</td><td>4</td><td>2,564.1</td><td>6</td></tr><tr><td>Total fixed maturity securities</td><td>$38,826.4</td><td>100%</td><td>$44,548.7</td><td>100%</td></tr></table>

Question: how did the percentage of operating income related to smokeless product change from 2012 to 2013 relative the total operating income?
Answer: -0.024
Reasoning program: subtract(12.2,12.5), divide(#0,12.5)