PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 6.
DEFERRED POLICY ACQUISITION COSTS The balances of and changes in deferred policy acquisition costs as of and for the years ended December 31, are as follows:
## Table 0 ##
7.
INVESTMENTS IN OPERATING JOINT VENTURES The Company has made investments in certain joint ventures that are strategic in nature and made other than for the sole purpose of generating investment income.
These investments are accounted for under the equity method of accounting and are included in “Other assets” in the Company’s Consolidated Statements of Financial Position.
The earnings from these investments are included on an after-tax basis in “Equity in earnings of operating joint ventures, net of taxes” in the Company’s Consolidated Statements of Operations.
Investments in operating joint ventures include the Company’s former investment in Wachovia Securities, which was sold on December 31, 2009, as well as investments in other operating joint ventures as part of the Company’s International Insurance and International Investments segments.
The summarized financial information for the Company’s operating joint ventures has been included in the summarized combined financial information for all significant equity method investments shown in Note 4.
Investment in Wachovia Securities On July 1, 2003, the Company combined its retail securities brokerage and clearing operations with those of Wachovia Corporation (“Wachovia”) and formed Wachovia Securities Financial Holdings, LLC (“Wachovia Securities”), a joint venture headquartered in St.  Louis, Missouri.
The transaction included the contribution of certain assets and liabilities of the Company’s securities brokerage operations; however, the Company retained certain assets and liabilities related to the contributed operations, including liabilities for certain litigation and regulatory matters.
The Company and Wachovia each agreed to indemnify the other for certain losses, including losses resulting from litigation and regulatory matters relating to certain events arising from the operations of their respective contributed businesses prior to March 31, 2004.
On December 31, 2008, Wachovia merged with and into Wells Fargo & Company (“Wells Fargo”), which succeeded to Wachovia’s rights and obligations under the joint venture arrangements.
On December 31, 2009, the Company completed the sale of its minority joint venture interest in Wachovia Securities, which includes Wells Fargo Advisors, to Wells Fargo.
At the closing, the Company received $4.5 billion in cash as the purchase price of its joint venture interest and de-recognized the carrying value of its investment in the joint venture and the carrying value of the “lookback” option described below.
For the year ended December 31, 2009, “Equity in earnings of operating joint ventures, net of taxes” includes the associated pre-tax gain on the sale of $2.247 billion.
In addition, “General and administrative expenses” includes certain one-time costs related to the sale of the joint venture interest of $104 million, for pre-tax compensation costs and costs related to increased contributions to the Company’s charitable foundation.
Results related to the joint venture are included in Corporate and Other operations as a divested business.
In addition, following the closing, the Company received $418 million in payment of the principal of and accrued interest on the subordinated promissory note in the principal amount of $417 million that had been issued by Wachovia Securities in connection with the establishment of the joint venture.
On October 1, 2007, Wachovia completed the acquisition of A. G.  Edwards, Inc.  (“A.
G.  Edwards”) and on January 1, 2008 contributed the retail securities brokerage business of A. G.  Edwards to the joint venture.
Wachovia’s contribution of this business entitled the Company to elect a “lookback” option (which the Company exercised) permitting the Company to delay for a period of two years ending on January 1, 2010, the decision on whether or not to make payments to avoid or limit dilution of its 38% ownership interest in the joint venture or, alternatively, to “put” its joint venture interests to Wachovia based on the appraised value of the joint venture, excluding the A. G.  Edwards business, as of January 1, 2008, the date of the combination of the A. G.  Edwards business with Wachovia Securities.
During this “lookback” period, the Company’s share in the earnings of the joint venture and one-time costs associated with the combination of the A. G.  Edwards business with Wachovia Securities was based on the Company’s diluted ownership level.
Based upon the existing agreements and the Company’s estimates of the values of the A. G.  Edwards business and the joint venture excluding the A. G.  Edwards business, the Company adjusted the carrying value of its ownership interest in the joint venture effective as of January 1, 2008 to reflect the addition of the A. G.  Edwards business and the dilution of the Company’s 38% ownership interest and to record the value of the above described rights under the “lookback” option.
The Company accordingly recognized a corresponding increase to “Additional paid-in capital” of $1.041 billion, net of tax, which represented the excess of the estimated value of the Company’s share of the A. G.  Edwards business received (of approximately $1.444 billion) and the estimated value of the “lookback” option acquired (of approximately $580 million) over the carrying value of the portion of the Company’s ownership interest in Wachovia Securities that was diluted (of approximately $422 million), net of taxes (of approximately $561 million).
In connection with the sale of the Company’s interest in the
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 18.
EMPLOYEE BENEFIT PLANS (continued) The pension and postretirement expected long-term rates of return on plan assets for 2009 were determined based upon an approach that considered an expectation of the allocation of plan assets during the measurement period of 2009.
Expected returns are estimated by asset class as noted in the discussion of investment policies and strategies below.
Expected returns on asset classes are developed using a building-block approach that is forward looking and are not strictly based upon historical returns.
The building blocks for equity returns include inflation, real return, a term premium, an equity risk premium, capital appreciation and the effect of active management, expenses and the effect of rebalancing.
The building blocks for fixed maturity returns include inflation, real return, a term premium, credit spread, capital appreciation and the effect of active management, expenses and the effect of rebalancing.
The Company applied the same approach to the determination of the expected long-term rate of return on plan assets in 2010.
The expected long-term rate of return for 2010 is 7.50% and 7.50% for the pension and postretirement plans, respectively.
The Company, with respect to pension benefits, uses market related value to determine the components of net periodic (benefit) cost.
Market related value is a measure of asset value that reflects the difference between actual and expected return on assets over a five-year period.
The assumptions for foreign pension plans are based on local markets.
There are no material foreign postretirement plans.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan.
A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects:
## Table 1 ##
Plan Assets The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments, while meeting the cash requirements for a pension obligation that includes a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments.
The pension plan risk management practices include guidelines for asset concentration, credit rating and liquidity.
The pension plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps are used to adjust duration.
The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit, and a life benefit.
The postretirement plans risk management practices include guidelines for asset concentration, credit rating, liquidity, and tax efficiency.
The postretirement plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps are used to adjust duration.
The plan fiduciaries for the Company’s pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis.
Asset allocation targets as of the December 31, 2009 are as follows:
## Table 2 ##
set categories under the investment guidelines.
However, at any point in time, some of the assets in a fund may be of a different nature than the specified asset category.
Assets held with Prudential Insurance are in either pooled separate accounts or single client separate accounts.
Pooled separate accounts hold assets for multiple investors.
Each investor owns a “unit of account.
” Single client separate accounts hold assets for only one
The following tables set forth our exposure where we have sold credit protection through credit derivatives in the Closed Block Business portfolios by NAIC designation of the underlying credits as of the dates indicated.
Credit Derivatives, Sold Protection—Closed Block Business
## Table 3 ##
Credit Derivatives, Sold Protection—Closed Block Business
## Table 4 ##
(1) First-to-default credit swap baskets, which may include credits of varying qualities, are grouped above based on the lowest credit in the basket.
However, such basket swaps may entail greater credit risk than the rating level of the lowest credit.
(2) Excludes embedded derivatives contained in certain externally-managed investments in the European market.
See Note 21 to the Consolidated Financial Statements for additional information regarding these derivatives.
In addition to selling credit protection, we have purchased credit protection using credit derivatives in order to hedge specific credit exposures in our investment portfolio, including exposures relating to certain guarantees from monoline bond insurers.
As of December 31, 2009 and December 31, 2008, the Financial Services Businesses had $1.852 billion and $1.069 billion of outstanding notional amounts, reported at fair value as a $113 million asset and a $189 million asset, respectively.
As of December 31, 2009 and December 31, 2008, the Closed Block Business had $461 million and $309 million of outstanding notional amounts, reported at fair value as an asset of $61 million and $64 million, respectively.
The premium paid for the credit derivatives we purchase attributable to the Financial Services Businesses was $52 million and $21 million for the years ended December 31, 2009 and 2008, respectively, and is included in adjusted operating income as an adjustment to “Realized investment gains (losses), net.
” See Note 21 to the Consolidated Financial Statements for additional information regarding credit derivatives and an overall description of our derivative activities.
Unrealized Losses from Fixed Maturity Securities The following table sets forth the amortized cost and gross unrealized losses of fixed maturity securities attributable to the Financial Services Businesses where the estimated fair value had declined and remained below amortized cost by 20% or more for the following timeframes: Unrealized Losses from Fixed Maturity Securities, Greater than 20%—Financial Services Businesses
## Table 5 ##
We realize synergies from consolidating businesses into our existing operations, whether through acquisitions or public-private partnerships, which allow us to reduce capital and expense requirements associated with truck routing, personnel, fleet maintenance, inventories and back-office administration.
Operating Model The goal of our operating model pillar is to deliver a consistent, high quality service to all of our customers through the Republic Way: One Way.
Everywhere.
Every day.
This approach of developing standardized processes with rigorous controls and tracking allows us to leverage our scale and deliver durable operational excellence.
The Republic Way is the key to harnessing the best of what we do as operators and translating that across all facets of our business.
A key enabler of the Republic Way is our organizational structure that fosters a high performance culture by maintaining 360 degree accountability and full profit and loss responsibility with general management, supported by a functional structure to provide subject matter expertise.
This structure allows us to take advantage of our scale by coordinating functionally across all of our markets, while empowering local management to respond to unique market dynamics.
We have rolled out several productivity and cost control initiatives designed to deliver the best service possible to our customers in the most efficient and environmentally sound way.
Fleet Automation Approximately 72% of our residential routes have been converted to automated single driver trucks.
By converting our residential routes to automated service, we reduce labor costs, improve driver productivity, decrease emissions and create a safer work environment for our employees.
Additionally, communities using automated vehicles have higher participation rates in recycling programs, thereby complementing our initiative to expand our recycling capabilities.
Fleet Conversion to Compressed Natural Gas (CNG) Approximately 16% of our fleet operates on CNG.
We expect to continue our gradual fleet conversion to CNG, our preferred alternative fuel technology, as part of our ordinary annual fleet replacement process.
We believe a gradual fleet conversion is most prudent to realize the full value of our previous fleet investments.
Approximately 33% of our replacement vehicle purchases during 2015 were CNG vehicles.
We believe using CNG vehicles provides us a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment.
Although upfront costs are higher, using CNG reduces our overall fleet operating costs through lower fuel expenses.
As of December 31, 2015, we operated 38 CNG fueling stations.
Standardized Maintenance Based on an industry trade publication, we operate the ninth largest vocational fleet in the United States.
As of December 31, 2015, our average fleet age in years, by line of business, was as follows:

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Balance, beginning of year</td><td>$15,126</td><td>$12,339</td><td>$10,863</td></tr><tr><td>Capitalization of commissions, sales and issue expenses</td><td>2,771</td><td>2,303</td><td>2,250</td></tr><tr><td>Amortization</td><td>-1,494</td><td>-1,424</td><td>-996</td></tr><tr><td>Change in unrealized investment gains and losses</td><td>-2,000</td><td>1,594</td><td>53</td></tr><tr><td>Foreign currency translation and other</td><td>175</td><td>314</td><td>185</td></tr><tr><td>Impact of adoption of guidance on accounting for deferred acquisition costs in connection with modifications or exchanges ofinsurance contracts</td><td>—</td><td>—</td><td>-16</td></tr><tr><td>Balance, end of year</td><td>$14,578</td><td>$15,126</td><td>$12,339</td></tr></table>
<table><tr><td></td><td> Other Postretirement  Benefits  (in millions)</td></tr><tr><td> One percentage point increase</td><td></td></tr><tr><td>Increase in total service and interest costs</td><td>$6</td></tr><tr><td>Increase in postretirement benefit obligation</td><td>118</td></tr><tr><td> One percentage point decrease </td><td></td></tr><tr><td>Decrease in total service and interest costs</td><td>$6</td></tr><tr><td>Decrease in postretirement benefit obligation</td><td>105</td></tr></table>
<table><tr><td></td><td colspan="2">Pension</td><td colspan="2"> Postretirement</td></tr><tr><td></td><td>Minimum</td><td>Maximum</td><td>Minimum</td><td> Maximum</td></tr><tr><td> Asset Category</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Equities</td><td>2%</td><td>10%</td><td>33%</td><td>44%</td></tr><tr><td>International Equities</td><td>2%</td><td>10%</td><td>1%</td><td>7%</td></tr><tr><td>Fixed Maturities</td><td>53%</td><td>74%</td><td>0%</td><td>59%</td></tr><tr><td>Short-term Investments</td><td>0%</td><td>12%</td><td>0%</td><td>63%</td></tr><tr><td>Real Estate</td><td>1%</td><td>13%</td><td>0%</td><td>0%</td></tr><tr><td>Other</td><td>3%</td><td>21%</td><td>0%</td><td>0%</td></tr></table>
<table><tr><td></td><td colspan="6"> December 31, 2009</td></tr><tr><td></td><td colspan="2"> Single Name</td><td colspan="2"> First to Default Basket-1</td><td colspan="2"> Total</td></tr><tr><td> NAIC Designation</td><td> Notional</td><td> Fair Value</td><td> Notional</td><td> Fair Value</td><td> Notional</td><td> Fair Value</td></tr><tr><td></td><td colspan="6"> (in millions)</td></tr><tr><td>1</td><td>$28</td><td>$—</td><td>$—</td><td>$—</td><td>$28</td><td>$—</td></tr><tr><td>2</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Subtotal</td><td>28</td><td>—</td><td>—</td><td>—</td><td>28</td><td>—</td></tr><tr><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>4</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>5</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>6</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Subtotal</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total-2</td><td>$28</td><td>$—</td><td>$—</td><td>$—</td><td>$28</td><td>$—</td></tr></table>
<table><tr><td></td><td colspan="6">December 31, 2008</td></tr><tr><td></td><td colspan="2">Single Name</td><td colspan="2">First to Default Basket-1</td><td colspan="2">Total</td></tr><tr><td> NAIC Designation</td><td> Notional</td><td>Fair Value</td><td> Notional</td><td>Fair Value</td><td> Notional</td><td>Fair Value</td></tr><tr><td></td><td colspan="6">(in millions)</td></tr><tr><td>1</td><td>$20</td><td>$-1</td><td>$6</td><td>$—</td><td>$26</td><td>$-1</td></tr><tr><td>2</td><td>5</td><td>—</td><td>25</td><td>-1</td><td>30</td><td>-1</td></tr><tr><td>Subtotal</td><td>25</td><td>-1</td><td>31</td><td>-1</td><td>56</td><td>-2</td></tr><tr><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>4</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>5</td><td>5</td><td>—</td><td>—</td><td>—</td><td>5</td><td>—</td></tr><tr><td>6</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Subtotal</td><td>5</td><td>—</td><td>—</td><td>—</td><td>5</td><td>—</td></tr><tr><td>Total-2</td><td>$30</td><td>$-1</td><td>$31</td><td>$-1</td><td>$61</td><td>$-2</td></tr></table>
<table><tr><td></td><td colspan="2"> December 31, 2009</td><td colspan="2"> December 31, 2008</td></tr><tr><td></td><td> Amortized Cost-1</td><td> Gross Unrealized Losses-1</td><td> Amortized Cost-1</td><td> Gross Unrealized Losses-1</td></tr><tr><td></td><td colspan="4"> (in millions)</td></tr><tr><td>Less than three months</td><td>$1,225</td><td>$267</td><td>$9,612</td><td>$2,605</td></tr><tr><td>Three months or greater but less than six months</td><td>714</td><td>175</td><td>13,481</td><td>4,623</td></tr><tr><td>Six months or greater but less than nine months</td><td>201</td><td>56</td><td>1,082</td><td>488</td></tr><tr><td>Nine months or greater but less than twelve months</td><td>1,260</td><td>431</td><td>272</td><td>159</td></tr><tr><td>Greater than twelve months</td><td>4,533</td><td>1,517</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>$7,933</td><td>$2,446</td><td>$24,447</td><td>$7,875</td></tr></table>

Question: In the section with largest amount of Subtotal, what's the increasing rate of Total-2?
Answer: 1.03333
Reasoning program: subtract(30,-1), divide(#0,30)