?
Integration of new projects.
During 2010, the following projects were acquired or commenced commercial operations:
## Table 0 ##
(1) Jianghe Rural Electrification Development Co.  Ltd.  (“JHRH”) and AES China Hydropower Investment Co.  Ltd.  entered into an agreement to acquire a 49% interest in this joint venture in June 2010.
Acquisition of 35% ownership was completed in June 2010 and the transfer of the remaining 14% ownership, which is subject to approval by the Chinese government, is expected to be completed in May 2011.
(2) Guacolda is an equity method investment indirectly held by AES through Gener.
The AES equity interest reflects the 29% noncontrolling interests in Gener.
(3) Joint venture with Guohua Energy Investment Co.  Ltd.  (4) Joint Venture with I. C.  Energy.
Key Trends and Uncertainties Our operations continue to face many risks as discussed in Item 1A.
—Risk Factors of this Form 10-K.
Some of these challenges are also described above in Key Drivers of Results in 2010.
We continue to monitor our operations and address challenges as they arise.
Development.
During the past year, the Company has successfully acquired and completed construction of a number of projects, totaling approximately 2,404 MW, including the acquisition of Ballylumford in the United Kingdom and completion of construction of a number of projects in Europe, Chile and China.
However, as discussed in Item 1A.
—Risk Factors—Our business is subject to substantial development uncertainties of this Form 10-K, our development projects are subject to uncertainties.
Certain delays have occurred at the 670 MW Maritza coal-fired project in Bulgaria, and the project has not yet begun commercial operations.
As noted in Note 10—Debt included in Item 8 of this Form 10-K, as a result of these delays the project debt is in default and the Company is working with its lenders to resolve the default.
In addition, as noted in Item 3.
—Legal Proceedings, the Company is in litigation with the contractor regarding the cause of delays.
At this time, we believe that Maritza will commence commercial operations for at least some of the project’s capacity by the second half of 2011.
However, commencement of commercial operations could be delayed beyond this time frame.
There can be no assurance that Maritza will achieve commercial operations, in whole or in part, by the second half of 2011, resolve the default with the lenders or prevail in the litigation referenced above, which could result in the loss of some or all of our investment or require additional funding for the project.
Any of these events could have a material adverse effect on the Company’s operating results or financial position.
Global Economic Conditions.
During the past few years, economic conditions in some countries where our subsidiaries conduct business have deteriorated.
Although the economic conditions in several of these countries have improved in recent months, our businesses could be impacted in the event these recent trends do not continue.
during the years ended December 31, 2008, 2007 and 2006.
Increases (decreases) in DAC and VOBA balances, as presented below, result in a corresponding decrease (increase) in amortization.
## Table 1 ##
Prior to 2008, fluctuations in the amounts presented in the table above arose principally from normal assumption reviews during the period.
During 2008, there was a significant increase in DAC and VOBA amortization attributable to the following: ?
The decrease in equity markets during the year significantly lowered separate account balances resulting in a significant reduction in expected future gross profits on variable universal life contracts and variable deferred annuity contracts resulting in an increase of $708 million in DAC and VOBA amortization.  ?
Changes in net investment gains (losses) resulted in the following changes in DAC and VOBA amortization: – Actual gross profits decreased as a result of an increase in liabilities associated with guarantee obligations on variable annuities resulting in a reduction of DAC and VOBA amortization of $1,047 million.
This decrease in actual gross profits was mitigated by freestanding derivative gains associated with the hedging of such guarantee obligations which resulted in an increase in actual gross profits and an increase in DAC and VOBA amortization of $625 million.
– A change in valuation of guarantee liabilities, resulting from the adoption of SFAS 157 during 2008, also impacted the computation of actual gross profits and the related amortization of DAC and VOBA.
The addition of risk margins increased the guarantee liability valuations, decreased actual gross profits and decreased amortization by $100 million.
Offsetting this was the addition of own credit to the valuation of guarantee liabilities.
Own credit decreased guarantee liability valuations, increased actual gross profits and increased amortization by $739 million.
The inclusion of the Company’s own credit in the valuation of these guarantee liabilities’ increases the volatility of these valuations, the related DAC and VOBA amortization, and the net income of the Company.
– As more extensively described in Note 9 of the Notes to the Consolidated Financial Statements, reductions in both actual and expected cumulative earnings of the closed block resulting from recent experience in the closed block combined with changes in expected dividend scales resulted in an increase in closed block DAC amortization of $195 million, $175 million of which is related to net investment gains (losses).
– The remainder of the impact of net investment gains (losses) on DAC amortization of $129 million was attributable to numerous immaterial items.  ?
Increases in amortization in 2008 resulting from changes in assumptions related to in-force/persistency of $159 million were driven by higher than anticipated mortality and lower than anticipated premium persistency during the current year.
The Company’s DAC and VOBA balance is also impacted by unrealized investment gains (losses) and the amount of amortization which would have been recognized if such gains and losses had been recognized.
The significant increase in unrealized investment losses at December 31, 2008 resulted in an increase in DAC and VOBA of $3.4 billion.
Notes 3 and 5 of the Notes to the Consolidated Financial Statements include the DAC and VOBA offset to unrealized investment losses.
Goodwill Goodwill is the excess of cost over the estimated fair value of net assets acquired.
Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test.
The Company performs its annual goodwill impairment testing during the third quarter of each year based upon data as of the close of the second quarter.
Impairment testing is performed using the fair value approach, which requires the use of estimates and judgment, at the “reporting unit” level.
A reporting unit is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level.
For purposes of goodwill impairment testing, a significant portion of goodwill within Corporate & Other is allocated to reporting units within the Company’s business segments.
For purposes of goodwill impairment testing, if the carrying value of a reporting unit’s goodwill exceeds its estimated fair value, there is an indication of impairment and the implied fair value of the goodwill is determined in the same manner as the amount of goodwill would be determined in a business acquisition.
The excess of the carrying value of goodwill over the implied fair value of goodwill is recognized as an impairment and recorded as a charge against net income.
In performing its goodwill impairment tests, when management believes meaningful comparable market data are available, the estimated fair values of the reporting units are determined using a market multiple approach.
When relevant comparables are not available, the Company uses a discounted cash flow model.
For reporting units which are particularly sensitive to market assumptions, such as the annuities and variable & universal life reporting units within the Individual segment, the Company may corroborate its estimated fair values by using additional valuation methodologies.
The key inputs, judgments and assumptions necessary in determining fair value include projected operating earnings, current book value (with and without accumulated other comprehensive income), the level of economic capital required to support the mix of business, long term growth rates, comparative market multiples, the account value of in-force business, projections of new and renewal business as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate management believes appropriate to the risk associated with the respective reporting unit.
The estimated fair value of the annuity and variable & universal life reporting units are particularly sensitive to the equity market levels.
The following tables present the cost or amortized cost, gross unrealized loss and number of securities for fixed maturity and equity securities, where the estimated fair value had declined and remained below cost or amortized cost by less than 20%, or 20% or more at:
## Table 2 ##
Equity Securities:
## Table 3 ##
December 31, 2007
Equity Securities:
The Company performs a regular evaluation, on a security-by-security basis, of its investment holdings in accordance with its impairment policy in order to evaluate whether such securities are other-than-temporarily impaired.
One of the criteria which the Company considers in its other-than-temporary impairment analysis is its intent and ability to hold securities for a period of time sufficient to allow for the recovery of their value to an amount equal to or greater than cost or amortized cost.
The Company’s intent and ability to hold securities considers broad portfolio management objectives such as asset/liability duration management, issuer and industry segment exposures, interest rate views and the overall total return focus.
In following these portfolio management objectives, changes in facts and circumstances that were present in past reporting periods may trigger a decision to sell securities that were held in prior reporting periods.
Decisions to sell are based on current conditions or the Company’s need to shift the portfolio to maintain its portfolio management objectives including liquidity needs or duration targets on asset/liability managed portfolios.
The Company attempts to anticipate these types of changes and if a sale decision has been made on an impaired security and that security is not expected to recover prior to the expected time of sale, the security will be deemed other-than-temporarily impaired in the period that the sale decision was made and an other-than-temporary impairment loss will be recognized.
See “— Summary of Critical Accounting Estimates — Investments.
” At December 31, 2008 and 2007, $8.0 billion and $3.9 billion, respectively, of unrealized losses related to fixed maturity securities with an unrealized loss position of less than 20% of cost or amortized cost, which represented 9% and 4%, respectively, of the cost or amortized cost of such securities.
At December 31, 2008 and 2007, $75 million and $316 million, respectively, of unrealized losses related to equity securities with an unrealized loss position of less than 20% of cost, which represented 13% and 10%, respectively, of the cost of such securities.
At December 31, 2008, $20.8 billion and $903 million of unrealized losses related to fixed maturity securities and equity securities, respectively, with an unrealized loss position of 20% or more of cost or amortized cost, which represented 38% and 43% of the cost or amortized cost of such fixed maturity securities and equity securities, respectively.
Of such unrealized losses of $20.8 billion and $903 million, $17.2 billion and $519 million related to fixed maturity securities and equity securities, respectively, that were in an unrealized loss position for a period of less than six months.
At December 31, 2007, $402 million and $133 million of unrealized losses related to fixed

Tables referenced above, in order (Table 0 first):
<table><tr><td>Project</td><td>Location</td><td>Fuel</td><td>Gross MW</td><td>AES Equity Interest (Percent, Rounded)</td></tr><tr><td>Ballylumford</td><td>United Kingdom</td><td>Gas</td><td>1,246</td><td>100%</td></tr><tr><td>JHRH<sup>-1</sup></td><td>China</td><td>Hydro</td><td>379</td><td>35%</td></tr><tr><td>Nueva Ventanas</td><td>Chile</td><td>Coal</td><td>272</td><td>71%</td></tr><tr><td>St. Nikola</td><td>Bulgaria</td><td>Wind</td><td>156</td><td>89%</td></tr><tr><td>Guacolda 4<sup>-2</sup></td><td>Chile</td><td>Coal</td><td>152</td><td>35%</td></tr><tr><td>Dong Qi<sup>-3</sup></td><td>China</td><td>Wind</td><td>49</td><td>49%</td></tr><tr><td>Huanghua II<sup>-3</sup></td><td>China</td><td>Wind</td><td>49</td><td>49%</td></tr><tr><td>St. Patrick</td><td>France</td><td>Wind</td><td>35</td><td>100%</td></tr><tr><td>North Rhins</td><td>Scotland</td><td>Wind</td><td>22</td><td>100%</td></tr><tr><td>Kepezkaya</td><td>Turkey</td><td>Hydro</td><td>28</td><td>51%</td></tr><tr><td>Damlapinar<sup>-4</sup></td><td>Turkey</td><td>Hydro</td><td>16</td><td>51%</td></tr></table>
<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td></td><td colspan="3">(In millions)</td></tr><tr><td>Investment return</td><td>$70</td><td>$-34</td><td>$-50</td></tr><tr><td>Separate account balances</td><td>-708</td><td>8</td><td>9</td></tr><tr><td>Net investment gain (loss) related</td><td>-521</td><td>126</td><td>233</td></tr><tr><td>Expense</td><td>61</td><td>-53</td><td>45</td></tr><tr><td>In-force/Persistency</td><td>-159</td><td>1</td><td>-34</td></tr><tr><td>Policyholder dividends and other</td><td>-30</td><td>-39</td><td>-7</td></tr><tr><td>Total</td><td>$-1,287</td><td>$9</td><td>$196</td></tr></table>
<table><tr><td></td><td colspan="6"> December 31, 2008</td></tr><tr><td></td><td colspan="2"> Cost or Amortized Cost</td><td colspan="2"> Gross Unrealized Loss</td><td colspan="2"> Number of Securities</td></tr><tr><td></td><td> Less than </td><td> 20% or </td><td> Less than </td><td> 20% or </td><td> Less than </td><td> 20% or </td></tr><tr><td></td><td> 20%</td><td> more</td><td> 20%</td><td> more</td><td> 20%</td><td> more</td></tr><tr><td></td><td colspan="6"> (In millions, except number of securities)</td></tr><tr><td> Fixed Maturity Securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Less than six months</td><td>$32,658</td><td>$48,114</td><td>$2,358</td><td>$17,191</td><td>4,566</td><td>2,827</td></tr><tr><td>Six months or greater but less than nine months</td><td>14,975</td><td>2,180</td><td>1,313</td><td>1,109</td><td>1,314</td><td>157</td></tr><tr><td>Nine months or greater but less than twelve months</td><td>16,372</td><td>3,700</td><td>1,830</td><td>2,072</td><td>934</td><td>260</td></tr><tr><td>Twelve months or greater</td><td>23,191</td><td>650</td><td>2,533</td><td>415</td><td>1,809</td><td>102</td></tr><tr><td>Total</td><td>$87,196</td><td>$54,644</td><td>$8,034</td><td>$20,787</td><td></td><td></td></tr><tr><td> Equity Securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Less than six months</td><td>$386</td><td>$1,190</td><td>$58</td><td>$519</td><td>351</td><td>551</td></tr><tr><td>Six months or greater but less than nine months</td><td>33</td><td>413</td><td>6</td><td>190</td><td>8</td><td>32</td></tr><tr><td>Nine months or greater but less than twelve months</td><td>3</td><td>487</td><td>—</td><td>194</td><td>5</td><td>15</td></tr><tr><td>Twelve months or greater</td><td>171</td><td>—</td><td>11</td><td>—</td><td>20</td><td>—</td></tr><tr><td>Total</td><td>$593</td><td>$2,090</td><td>$75</td><td>$903</td><td></td><td></td></tr></table>
<table><tr><td></td><td colspan="6"> December 31, 2007</td></tr><tr><td></td><td colspan="2"> Cost or Amortized Cost</td><td colspan="2"> Gross Unrealized Loss</td><td colspan="2"> Number of Securities</td></tr><tr><td></td><td> Less than </td><td> 20% or </td><td> Less than </td><td> 20% or </td><td> Less than </td><td> 20% or </td></tr><tr><td></td><td> 20%</td><td> more</td><td> 20%</td><td> more</td><td> 20%</td><td> more</td></tr><tr><td></td><td colspan="6"> (In millions, except number of securities)</td></tr><tr><td> Fixed Maturity Securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Less than six months</td><td>$46,343</td><td>$1,375</td><td>$1,482</td><td>$383</td><td>4,713</td><td>148</td></tr><tr><td>Six months or greater but less than nine months</td><td>15,833</td><td>14</td><td>730</td><td>4</td><td>1,028</td><td>24</td></tr><tr><td>Nine months or greater but less than twelve months</td><td>8,529</td><td>7</td><td>492</td><td>2</td><td>586</td><td>—</td></tr><tr><td>Twelve months or greater</td><td>29,893</td><td>50</td><td>1,162</td><td>13</td><td>2,692</td><td>32</td></tr><tr><td>Total</td><td>$100,598</td><td>$1,446</td><td>$3,866</td><td>$402</td><td></td><td></td></tr><tr><td> Equity Securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Less than six months</td><td>$1,757</td><td>$423</td><td>$148</td><td>$133</td><td>1,212</td><td>417</td></tr><tr><td>Six months or greater but less than nine months</td><td>528</td><td>—</td><td>62</td><td>—</td><td>154</td><td>—</td></tr><tr><td>Nine months or greater but less than twelve months</td><td>439</td><td>—</td><td>54</td><td>—</td><td>62</td><td>1</td></tr><tr><td>Twelve months or greater</td><td>511</td><td>—</td><td>52</td><td>—</td><td>90</td><td>—</td></tr><tr><td>Total</td><td>$3,235</td><td>$423</td><td>$316</td><td>$133</td><td></td><td></td></tr></table>

Question: Which section is Less than six months the highest?
Answer: Cost or Amortized Cost 20% or more