Notes to Consolidated Financial Statements Note 1.
Summary of Significant Accounting Policies – (Continued) results of operations when they occur.
For these contracts, the amortization period is typically the estimated life of the policy.
CNA evaluates deferred acquisition costs for recoverability.
Anticipated investment income is considered in the determination of the recoverability of deferred acquisition costs.
Adjustments, if necessary, are recorded in current results of operations.
Deferred acquisition costs are presented net of ceding commissions and other ceded acquisition costs.
Unamortized deferred acquisition costs relating to contracts that have been substantially changed by a modification in benefits, features, rights or coverages that were not anticipated in the original contract are not deferred and are included as a charge to operations in the period during which the contract modification occurred.
Investments in life settlement contracts and related revenue recognition – Prior to 2002, CNA purchased investments in life settlement contracts.
A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor).
Under a life settlement contract, CNA obtained the ownership and beneficiary rights of an underlying life insurance policy.
CNA accounts for its investments in life settlement contracts using the fair value method.
Under the fair value method, each life settlement contract is carried at its fair value at the end of each reporting period.
The change in fair value, life insurance proceeds received and periodic maintenance costs, such as premiums, necessary to keep the underlying policy in force, are recorded in Other revenues on the Consolidated Statements of Income.
CNA’s investments in life settlement contracts were $130 million and $129 million at December 31, 2009 and 2008, and are included in Other assets on the Consolidated Balance Sheets.
The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows.
The following table details the values for life settlement contracts.
The determination of fair value is discussed in Note 4.
## Table 0 ##
CNA uses an actuarial model to estimate the aggregate face amount of life insurance that is expected to mature in each future year and the corresponding fair value.
This model projects the likelihood of the insured’s death for each in force policy based upon CNA’s estimated mortality rates, which may vary due to the relatively small size of the portfolio of life settlement contracts.
The number of life settlement contracts presented in the table above is based upon the average face amount of in force policies estimated to mature in each future year.
The increase in fair value recognized for the years ended December 31, 2009, 2008 and 2007 on contracts still being held was $10 million, $17 million and $12 million.
The gain recognized during the years ended December 31, 2009, 2008 and 2007 on contracts that matured was $24 million, $30 million and $38 million.
Separate Account Business – Separate account assets and liabilities represent contract holder funds related to investment and annuity products for which the policyholder assumes substantially all the risk and reward.
The assets are segregated into accounts with specific underlying investment objectives and are legally segregated from CNA.
All assets of the separate account business are carried at fair value with an equal amount recorded for separate account liabilities.
Certain of the separate account investment contracts related to CNA’s pension deposit business
Stock performance graph:The graph below shows the cumulative total shareholder return assuming the investment of $100, on December 31, 2011, and the reinvestment of dividends thereafter, if any, in the Company’s common stock versus the Standard and Poor’s S&P 500 Retail Index (“S&P 500 Retail Index”) and the Standard and Poor’s S&P 500 Index (“S&P 500”).
## Table 1 ##
## Table 2 ##
(a) In 2008, 2012, and 2016, the Company acquired CSK Auto Corporation (“CSK”), VIP Parts, Tires & Service (“VIP”), and Bond Auto Parts (“Bond”), respectively.
The 2008 CSK acquisition added 1,342 stores, the 2012 VIP acquisition added 56 stores, and the 2016 Bond acquisition added 48 stores to the O’Reilly store count.
Financial results for these acquired companies have been included in the Company’s consolidated financial statements from the dates of the acquisitions forward.
(b) Total square footage includes normal selling, office, stockroom and receiving space.
(c) Sales per weighted-average store are weighted to consider the approximate dates of store openings, acquisitions or closures.
(d) Sales per weighted-average square foot are weighted to consider the approximate dates of store openings, acquisitions, expansions or closures.
(e) Comparable store sales are calculated based on the change in sales of stores open at least one year and excludes sales of specialty machinery, sales to independent parts stores, sales to Team Members, sales from Leap Day during the years ended December 31, 2016, 2012 and 2008, and sales during the one to two week period certain CSK branded stores were closed for conversion.
(f) Comparable store sales for 2008 include sales for stores acquired in the CSK acquisition.
Comparable store sales for stores operating on O’Reilly systems open at least one year increased 2.4% for the year ended December 31, 2008.
Comparable store sales for stores operating on the legacy CSK system open at least one year decreased 1.7% for the portion of CSK’s sales in 2008 since the July 11, 2008, acquisition.
(g) Certain prior period amounts have been reclassified to conform to current period presentation, due to the Company’s adoption of new accounting standards during the fourth quarter ended December 31, 2015.
See Note 1 “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the annual report on Form 10-K for the year ended December 31, 2015.
(h) Inventory turnover is calculated as cost of goods sold for the last 12 months divided by average inventory.
Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.
(i) Accounts payable to inventory is calculated as accounts payable divided by inventory.
(j) Free cash flow is calculated as net cash provided by operating activities less capital expenditures for the period.
Cash and Cash Equivalents Cash equivalents include highly-liquid investments with a maturity of three months or less when purchased.
Accounts Receivable and Allowance For Doubtful Accounts Accounts receivable are carried at the invoiced amounts, less an allowance for doubtful accounts, and generally do not bear interest.
The Company estimates the balance of allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates.
The Company’s estimates include separately providing for customer receivables based on specific circumstances and credit conditions, and when it is deemed probable that the balance is uncollectible.
Account balances are charged off against the allowance when it is determined the receivable will not be recovered.
The Company’s allowance for doubtful accounts balance also includes an allowance for the expected return of products shipped and credits related to pricing or quantities shipped of $14 million, $15 million and $14 million as of December 31, 2016, 2015, and 2014, respectively.
Returns and credit activity is recorded directly to sales as a reduction.
The following table summarizes the activity in the allowance for doubtful accounts:
## Table 3 ##
(a) Other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits.
Inventory Valuations Inventories are valued at the lower of cost or market.
Certain U. S.  inventory costs are determined on a last-in, first-out (“LIFO”) basis.
LIFO inventories represented 40% and 39% of consolidated inventories as of December 31, 2016 and 2015, respectively.
LIFO inventories include certain legacy Nalco U. S.  inventory acquired at fair value as part of the Nalco merger.
All other inventory costs are determined using either the average cost or first-in, first-out (“FIFO”) methods.
Inventory values at FIFO, as shown in Note 5, approximate replacement cost.
During 2015, the Company improved and standardized estimates related to its inventory reserves and product costing, resulting in a net pre-tax charge of approximately $6 million.
Separately, the actions resulted in a charge of $20.6 million related to inventory reserve calculations, partially offset by a gain of $14.5 million related to the capitalization of certain cost components into inventory.
During 2016, the Company took additional actions to improve and standardize estimates related to the capitalization of certain cost components into inventory, which resulted in a gain of $6.2 million.
These items are reflected within special (gains) and charges, as discussed in Note 3.
Property, Plant and Equipment Property, plant and equipment assets are stated at cost.
Merchandising and customer equipment consists principally of various dispensing systems for the Company’s cleaning and sanitizing products, dishwashing machines and process control and monitoring equipment.
Certain dispensing systems capitalized by the Company are accounted for on a mass asset basis, whereby equipment is capitalized and depreciated as a group and written off when fully depreciated.
The Company capitalizes both internal and external costs of development or purchase of computer software for internal use.
Costs incurred for data conversion, training and maintenance associated with capitalized software are expensed as incurred.
Expenditures for major renewals and improvements, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated.
Expenditures for repairs and maintenance are charged to expense as incurred.
Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income.
Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives ranging from 5 to 40 years for buildings and leasehold improvements, 3 to 20 years for machinery and equipment, 3 to 15 years for merchandising and customer equipment and 3 to 7 years for capitalized software.
The straight-line method of depreciation reflects an appropriate allocation of the cost of the assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period.
Depreciation expense was $561 million, $560 million and $558 million for 2016, 2015 and 2014, respectively.
Pacific (the “AP Put Option”).
HSBC Asia Pacific may exercise the AP Put Option on the fifth anniversary of the closing of the acquisition and on each anniversary thereafter.
By exercising the AP Put Option, HSBC Asia Pacific can require us to purchase, on an annual basis, up to 15% of the total issued shares of GPAP.
While not redeemable until beginning in July 2011, we estimate the maximum total redemption amount of the minority interest under the AP Put Option would be $91.7 million as of May 31, 2009.
We also had a redeemable minority interest associated with the HSBC Merchant Services LLP partnership agreement.
Under the HSBC Merchant Services LLP partnership agreement, HSBC UK could compel us to purchase, at fair value, additional membership units (the “UK Put Option”).
HSBC UK could exercise the UK Put Option on the fifth anniversary of the closing of the acquisition and on each anniversary thereafter.
By exercising the UK Put Option, HSBC UK could require us to purchase, on an annual basis, up to 15% of the total membership units.
While not redeemable until June 2013, we estimate the maximum total redemption amount of the minority interest under the UK Put Option would be $307.7 million, as of May 31, 2009.
On June 12, 2009 we purchased the remaining 49% of HSBC Merchant Services LLP from HSBC UK.
Please see Note 16— Subsequent Events for further information.
We adopted the provisions of EITF Topic D-98 beginning June 1, 2009.
Topic D-98 requires that redeemable minority interests be recorded at the maximum redemption amount.
Pursuant to the adoption of Topic D-98, we recorded a $379.6 million increase to the carrying amount of redeemable minority interests with a corresponding decrease to retained earnings in the consolidated balance sheets.
The carrying amount of redeemable minority interests was subsequently reduced by $307.7 million on June 12, 2009 when we purchased the remaining 49% of the LLP.
Pursuant to FAS 160, the purchase of the remaining 49% of the LLP is reflected as an equity transaction and no additional value has been ascribed to the assets of the LLP.
As a result, our tax basis in the LLP exceeds our book basis and we anticipate recording a deferred tax asset in the amount of $97.6 million with a corresponding increase to retained earnings.
Off-Balance Sheet Arrangements We have not entered into any transactions with unconsolidated entities whereby we have financial guarantees, subordinated retained interest, derivative instruments, or other contingent arrangements that expose us to material continuing risks, contingent liabilities, or other obligations under a variable interest in an unconsolidated entity that provides us with financing, liquidity, market, or credit risk support other than the guarantee products described under “Critical Accounting Estimates” below.
Commitments and Contractual Obligations The following table summarizes our contractual obligations and commitments as of May 31, 2009:
## Table 4 ##
(1) Interest on variable rate debt is based on rates effective as of May 31, 2009.
Note: This table excludes other obligations that we may have, such as employee benefit plan obligations, and other current and long–term liabilities reflected in our consolidated balance sheet and the minority interest put option rights described in Note 13.
We do not have any material purchase commitments as of May 31, 2009.
Selling, General and Administrative Expenses The following table sets forth the significant components of selling, general and administrative expenses (in millions):
## Table 5 ##
Year Ended December 31, 2011, versus Year Ended December 31, 2010 Selling, general and administrative expenses increased $4,282 million, or 33 percent.
Foreign currency fluctuations increased selling, general and administrative expenses by 3 percent.
The decrease in stock-based compensation expense was primarily related to the impact of modifications made to certain replacement performance share unit awards on our prior year results, partially offset by higher estimated payouts tied to performance in conjunction with our long-term incentive compensation programs.
Advertising expenses increased during the year and reflect the Company’s continued investment in the health and strength of our brands and building market execution capabilities.
The increase in bottling and distribution expenses was primarily due to the full year impact of consolidating CCE’s North American business in addition to our continued investments in our other bottling operations around the world.
This increase was partially offset by the full year impact of the sale of our Norwegian and Swedish bottling operations to New CCE during the fourth quarter of 2010.
Other operating expenses decreased during the year, partially reflecting the impact of the Company’s productivity and integration initiatives.
In 2012, our pension expense is expected to decrease by approximately $50 million compared to 2011.
The anticipated decrease is primarily due to approximately $953 million of contributions the Company expects to make to various plans in 2012, of which $900 million was contributed to the Company’s U. S.  pension plans during the first quarter of 2012.
The expected favorable impact of this item will be partially offset by the expected unfavorable impact of a decrease in the weighted-average discount rate used to calculate the Company’s benefit obligation.
Refer to the heading ‘‘Liquidity, Capital Resources and Financial Position’’ below for information related to these contributions.
Refer to the heading ‘‘Critical Accounting Policies and Estimates — Pension Plan Valuations’’ above and Note 13 of Notes to Consolidated Financial Statements for additional information related to the discount rates used by the Company.
As of December 31, 2011, we had $516 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under our plans.
This cost is expected to be recognized over a weighted-average period of 1.8 years as stock-based compensation expense.
This expected cost does not include the impact of any future stock-based compensation awards.
Refer to Note 12 of Notes to Consolidated Financial Statements.
Year Ended December 31, 2010, versus Year Ended December 31, 2009 Selling, general and administrative expenses increased $1,800 million, or 16 percent.
Foreign currency fluctuations increased selling, general and administrative expenses by 1 percent.
The increase in stock-based compensation was primarily related to higher payouts tied to performance in conjunction with our long-term incentive compensation programs and the impact of modifications made to certain replacement performance share unit awards issued by the Company in connection with our acquisition of CCE’s North American business.
The Company modified primarily all of these replacement performance share unit awards to eliminate the remaining holding period, which resulted in $74 million of accelerated expense in the fourth quarter of 2010.
Refer to Note 2 of Notes to Consolidated Financial Statements.
The increase in advertising expenses reflected the Company’s continued investment in our brands and building market execution capabilities.
The increase in bottling and distribution expenses was primarily related to the impact of our acquisition of CCE’s North American business and our continued investments in our other bottling operations.
The unfavorable impact of these items was partially offset by the deconsolidation of certain entities as a result of the Company’s adoption of new accounting guidance issued by the FASB.
These entities are primarily bottling operations and accounted for approximately 2 percent of the Company’s consolidated selling, general and administrative expenses in 2009.
Bottling and distribution expenses were also reduced due to the sale of our Norwegian and Swedish bottling operations to New CCE.
Refer to the heading ‘‘Structural Changes, Acquired Brands and New License Agreements’’ above for additional information related to significant structural changes.
2009, we experienced a decline in insured exposures, which contributed approximately $16 million to the decrease in operating earnings.
While this decrease in exposures had a positive impact on the amount of claims, it was more than offset by the negative impact on premiums.
The decrease in exposures is largely attributable to slightly higher non-renewal rates, partially offset by greater sales of new policies.
Also contributing to the decline in earnings was a decrease of $9 million in the average premium per policy, which is primarily due to a shift in earned exposures to lower average premium states and an increase of $10 million in loss adjustment expenses, primarily related to a decrease in unallocated loss adjusting expense liabilities at the end of 2008.
The impact of the items discussed above can be seen in the unfavorable change in the combined ratio, excluding catastrophes, to 88.9% in 2009 from 83.1% in 2008 and the unfavorable change in the combined ratio, including catastrophes, to 92.3% in 2009 from 91.2% in 2008.
A $25 million decrease in other expenses, including the net change in DAC, partially offset the declines in operating earnings discussed above.
This improvement resulted from decreases in sales related expenses and from minor fluctuations in a number of expense categories, a portion of which is due to our Operational Excellence initiative.
Also contributing to the decrease in operating earnings was a decline in net investment income of $4 million which was primarily due to a $9 million decrease from a decline in average invested assets, partially offset by an increase of $5 million due to improved yields.
International
## Table 6 ##
An improvement in the global financial markets has contributed to a recovery of sales in the majority of our International regions and has resulted in improved investment performance in some regions during the second half of 2009.
Sales in our Asia Pacific region are down primarily from a decrease in variable annuity sales in Japan, primarily as a result of pricing actions we took during the latter half of 2009.
This decline was somewhat offset by growth in South Korea’s fixed annuities product and an increase of variable universal life sales, which are indications that markets are beginning to recover.
We experienced growth in the pension, group life, and medical businesses of our Latin America region, specifically in Mexico.
Our EMEI region continues to have strong growth in the European variable annuity business.
As we continue to focus on our business in India, we have made significant investments in our distribution capabilities.
The reduction in operating earnings includes the adverse impact of changes in foreign currency exchange rates in 2009 as the U. S.  Dollar strengthened against the various foreign currencies.
This decreased operating earnings by $99 million in 2009 relative to 2008.
Excluding the impact of changes in foreign currency exchange rates, operating earnings increased $83 million, or 22%, from the prior year.
This increase was primarily driven by higher operating earnings of $184 million in our Asia Pacific region, while operating earnings from our Latin America and EMEI regions decreased by $83 million and $18 million, respectively.
Asia Pacific Region.
Improving financial market conditions was the primary driver of the increase in operating earnings.
Net investment income in the region increased by $422 million due to an increase of $278 million from improved yields on our investment portfolio, $111 million from the change in results of operating joint ventures, and $33 million from an increase in average invested assets.
The increase in yields was primarily due to higher income of $277 million on the trading securities portfolio, stemming from equity markets experiencing some recovery in 2009.
As our trading securities portfolio backs unit-linked policyholder liabilities, this increase in income was entirely offset by a corresponding increase in interest credited expense.
The income of the Japan joint venture improved by $103 million due to favorable investment results and lower amortization of DAC and VOBA.
The decrease in DAC and VOBA amortization was primarily due to an increase in the market value of the joint venture’s separate account balances, which is directly tied to the improving financial markets.
A factor that determines the amount of DAC and VOBA amortization is expected future fees earned on separate account balances.
Since the market value of separate account balances have increased, it is expected that future earnings on this block of business will be higher than previously anticipated.
As a result, the amortization of DAC and VOBA was less in the current year.
Operating earnings in this region also benefited from higher surrender charges of $16 million.
Difficult economic conditions in Korea during the first half of the year resulted in a higher level of surrenders.
Growth in our Japan reinsurance business and an increase in reinsurance rates contributed $21 million to the increase in operating earnings.
In addition, the favorable impact of a reduction in the liability for our variable annuity guarantees contributed $22 million to operating earnings.
The change in the liability was primarily due to an increase in separate account balances in the Japan joint venture.
These liabilities are accrued over the life of the contract in proportion to actual and future

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td> Number of Life Settlement Contracts</td><td> Fair Value of Life Settlement Contracts</td><td> Face Amount of Life Insurance Policies</td></tr><tr><td> (Dollar amounts in millions)</td><td></td><td></td><td></td></tr><tr><td>Estimated maturity during:</td><td></td><td></td><td></td></tr><tr><td>2010</td><td>100</td><td>$ 17</td><td>$ 53</td></tr><tr><td>2011</td><td>90</td><td>15</td><td>49</td></tr><tr><td>2012</td><td>90</td><td>13</td><td>46</td></tr><tr><td>2013</td><td>80</td><td>11</td><td>44</td></tr><tr><td>2014</td><td>80</td><td>10</td><td>41</td></tr><tr><td>Thereafter</td><td>817</td><td>64</td><td>443</td></tr><tr><td>Total</td><td>1,257</td><td>$130</td><td>$676</td></tr></table>
<table><tr><td></td><td>December 31,</td></tr><tr><td>Company/Index</td><td>2011</td><td>2012</td><td>2013</td><td>2014</td><td>2015</td><td>2016</td></tr><tr><td>O’Reilly Automotive, Inc.</td><td>$100</td><td>$112</td><td>$161</td><td>$241</td><td>$317</td><td>$348</td></tr><tr><td>S&P 500 Retail Index</td><td>100</td><td>125</td><td>180</td><td>197</td><td>245</td><td>257</td></tr><tr><td>S&P 500</td><td>$100</td><td>$113</td><td>$147</td><td>$164</td><td>$163</td><td>$178</td></tr></table>
<table><tr><td>Years ended December 31,</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>(In thousands, except per share, Team Members, stores and ratio data)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>BALANCE SHEET DATA:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Working capital (g)($)</td><td>-142,674</td><td>-36,372</td><td>252,082</td><td>430,832</td><td>478,093</td><td>1,028,330</td><td>1,029,861</td><td>900,857</td><td>749,276</td><td>573,328</td></tr><tr><td>Total assets (g)($)</td><td>7,204,189</td><td>6,676,684</td><td>6,532,083</td><td>6,057,895</td><td>5,741,241</td><td>5,494,174</td><td>5,031,950</td><td>4,695,536</td><td>4,551,586</td><td>2,279,737</td></tr><tr><td>Inventory turnover (h)</td><td>1.5</td><td>1.5</td><td>1.4</td><td>1.4</td><td>1.4</td><td>1.5</td><td>1.4</td><td>1.4</td><td>1.6</td><td>1.6</td></tr><tr><td>Accounts payable to inventory (i)</td><td>105.7%</td><td>99.1%</td><td>94.6%</td><td>86.6%</td><td>84.7%</td><td>64.4%</td><td>44.3%</td><td>42.8%</td><td>46.9%</td><td>43.2%</td></tr><tr><td>Current portion of long-term debt and short-term debt ($)</td><td>—</td><td>—</td><td>25</td><td>67</td><td>222</td><td>662</td><td>1,431</td><td>106,708</td><td>8,131</td><td>25,320</td></tr><tr><td>Long-term debt, less current portion (g)($)</td><td>1,887,019</td><td>1,390,018</td><td>1,388,397</td><td>1,386,828</td><td>1,087,789</td><td>790,585</td><td>357,273</td><td>684,040</td><td>724,564</td><td>75,149</td></tr><tr><td>Shareholders’ equity ($)</td><td>1,627,136</td><td>1,961,314</td><td>2,018,418</td><td>1,966,321</td><td>2,108,307</td><td>2,844,851</td><td>3,209,685</td><td>2,685,865</td><td>2,282,218</td><td>1,592,477</td></tr><tr><td>CASH FLOW DATA:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash provided by operating activities ($)</td><td>1,454,167</td><td>1,281,476</td><td>1,190,430</td><td>908,026</td><td>1,251,555</td><td>1,118,991</td><td>703,687</td><td>285,200</td><td>298,542</td><td>299,418</td></tr><tr><td>Capital expenditures ($)</td><td>476,344</td><td>414,020</td><td>429,987</td><td>395,881</td><td>300,719</td><td>328,319</td><td>365,419</td><td>414,779</td><td>341,679</td><td>282,655</td></tr><tr><td>Free cash flow (j)($)</td><td>977,823</td><td>867,456</td><td>760,443</td><td>512,145</td><td>950,836</td><td>790,672</td><td>338,268</td><td>-129,579</td><td>-43,137</td><td>16,763</td></tr></table>
<table><tr><td>(millions)</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Beginning balance</td><td>$75</td><td>$77</td><td>$81</td></tr><tr><td>Bad debt expense</td><td>20</td><td>26</td><td>23</td></tr><tr><td>Write-offs</td><td>-25</td><td>-22</td><td>-20</td></tr><tr><td>Other (a)</td><td>-2</td><td>-6</td><td>-7</td></tr><tr><td>Ending balance</td><td>$68</td><td>$75</td><td>$77</td></tr></table>
<table><tr><td></td><td colspan="5"> Payments Due by Future Period</td></tr><tr><td></td><td> Total</td><td> Less than 1 Year</td><td> 1-3 Years</td><td> 3-5 Years</td><td> 5+ Years</td></tr><tr><td></td><td colspan="5"> (in thousands)</td></tr><tr><td>Operating leases (Note 13)</td><td>$39,937</td><td>$19,703</td><td>$15,457</td><td>$3,416</td><td>$1,361</td></tr><tr><td>Long-term debt including current portion (Note 6)</td><td>197,003</td><td>29,393</td><td>106,428</td><td>61,182</td><td>—</td></tr><tr><td>Interest on long-term debt -1</td><td>3,886</td><td>814</td><td>2,094</td><td>978</td><td>—</td></tr></table>
<table><tr><td>Year Ended December 31,</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Stock-based compensation expense</td><td>$354</td><td>$380</td><td>$241</td></tr><tr><td>Advertising expenses</td><td>3,256</td><td>2,917</td><td>2,791</td></tr><tr><td>Bottling and distribution expenses</td><td>8,501</td><td>3,902</td><td>2,627</td></tr><tr><td>Other operating expenses</td><td>5,329</td><td>5,959</td><td>5,699</td></tr><tr><td>Selling, general and administrative expenses</td><td>$17,440</td><td>$13,158</td><td>$11,358</td></tr></table>
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2009</td><td>2008</td><td>Change</td><td>% Change</td></tr><tr><td></td><td colspan="3">(In millions)</td><td></td></tr><tr><td> Operating Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Premiums</td><td>$3,187</td><td>$3,470</td><td>$-283</td><td>-8.2%</td></tr><tr><td>Universal life and investment-type product policy fees</td><td>1,061</td><td>1,095</td><td>-34</td><td>-3.1%</td></tr><tr><td>Net investment income</td><td>1,193</td><td>1,180</td><td>13</td><td>1.1%</td></tr><tr><td>Other revenues</td><td>14</td><td>18</td><td>-4</td><td>-22.2%</td></tr><tr><td>Total operating revenues</td><td>5,455</td><td>5,763</td><td>-308</td><td>-5.3%</td></tr><tr><td> Operating Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholder benefits and claims and policyholder dividends</td><td>2,660</td><td>3,185</td><td>-525</td><td>-16.5%</td></tr><tr><td>Interest credited to policyholder account balances</td><td>581</td><td>171</td><td>410</td><td>239.8%</td></tr><tr><td>Capitalization of DAC</td><td>-630</td><td>-798</td><td>168</td><td>21.1%</td></tr><tr><td>Amortization of DAC and VOBA</td><td>415</td><td>381</td><td>34</td><td>8.9%</td></tr><tr><td>Interest expense</td><td>8</td><td>9</td><td>-1</td><td>-11.1%</td></tr><tr><td>Other expenses</td><td>1,797</td><td>2,079</td><td>-282</td><td>-13.6%</td></tr><tr><td>Total operating expenses</td><td>4,831</td><td>5,027</td><td>-196</td><td>-3.9%</td></tr><tr><td>Provision for income tax expense (benefit)</td><td>161</td><td>257</td><td>-96</td><td>-37.4%</td></tr><tr><td>Operating earnings</td><td>$463</td><td>$479</td><td>$-16</td><td>-3.3%</td></tr></table>

Question: In the year with lowest amount of Capitalization of DAC the lowest?, what's the increasing rate of Interest credited to policyholder account balances?
Answer: 2.39766
Reasoning program: subtract(581,171), divide(#0,171)