## Table 0 ##
(1) The Company determines the adjustment for taxes on international operations based on the difference between the statutory tax rate applicable to earnings in each foreign jurisdiction and the enacted rate of 19.0%, 19.3% and 20.0% at December 31, 2018, 2017, and 2016, respectively.
The benefit to the Company’s effective income tax rate from taxes on international operations relates to benefits from lower-taxed global operations, primarily due to the use of global funding structures and the tax holiday in Singapore.
The impact decreased from 2017 to 2018 primarily as a result of the decrease in the U. S.  federal tax rate.
(2) With the adoption of ASU 2016-09 in 2017, excess tax benefits and deficiencies from share-based payment transactions are recognized as income tax expense or benefit in the Company’s Consolidated Statements of Income.
(3) The impact of the Tax Reform Act including the Transition Tax, the re-measurement of U. S.  deferred tax assets and liabilities from 35% to 21%, withholding tax accruals, and the allocation of tax benefit between continuing operations and discontinued operations related to utilization of foreign tax credits.
Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support.
The results are affected substantially by the overall asset type and quality of our investments.
Pursuant to the documentation for the disposition of our property and casualty operations completed in 2003, we were required to deposit cash or securities into a trust for the purpose of securing insurance liabilities that were to have been transferred to Prudential Insurance following completion of the disposition but that have not been so transferred.
In June 2010, we deposited securities which, as of December 31, 2010, have a market value of $577 million.
The deposit of these assets was not a material liquidity event for Prudential Insurance.
Cash Flow The principal sources of liquidity for Prudential Insurance and our other domestic insurance subsidiaries are premiums and annuity considerations, investment and fee income, and investment maturities and sales associated with our insurance and annuity operations, as well as internal and external borrowings.
The principal uses of that liquidity include benefits, claims, dividends paid to policyholders, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity.
Other uses of liquidity include commissions, general and administrative expenses, purchases of investments, and payments in connection with financing activities.
We believe that the cash flows from our insurance and annuity operations are adequate to satisfy the current liquidity requirements of these operations, including under reasonably foreseeable stress scenarios.
The continued adequacy of this liquidity will depend upon factors such as future securities market conditions, changes in interest rate levels, policyholder perceptions of our financial strength, and the relative safety of competing products, each of which could lead to reduced cash inflows or increased cash outflows.
In addition, market volatility can impact the level of capital required to support our businesses, particularly in our annuity business.
Our domestic insurance operations’ cash flows from investment activities result from repayments of principal, proceeds from maturities and sales of invested assets and investment income, net of amounts reinvested.
The primary liquidity risks with respect to these cash flows are the risk of default by debtors or bond insurers, our counterparties’ willingness to extend repurchase and/or securities lending arrangements, commitments to invest and market volatility.
We closely manage these risks through our credit risk management process and regular monitoring of our liquidity position.
In managing the liquidity of our domestic insurance operations, we also consider the risk of policyholder and contractholder withdrawals of funds earlier than our assumptions when selecting assets to support these contractual obligations.
We use surrender charges and other contract provisions to mitigate the extent, timing and profitability impact of withdrawals of funds by customers from annuity contracts and deposit liabilities.
The following table sets forth withdrawal characteristics of our general account annuity reserves and deposit liabilities (based on statutory liability values) as of the dates indicated.
## Table 1 ##
Individual life insurance policies are less susceptible to withdrawal than our annuity reserves and deposit liabilities because policyholders may incur surrender charges and be subject to a new underwriting process in order to obtain a new insurance policy.
Our annuity reserves with guarantee features may be less susceptible to withdrawal than historical experience indicates, due to the perceived value of these guarantee features to policyholders as a result of market declines in recent years.
Annuity benefits and guaranteed investment withdrawals under group annuity contracts are generally not subject to early withdrawal.
Gross account withdrawals for our domestic insurance operations’ products were consistent with our assumptions in asset/liability management, and the associated cash outflows did not have a material adverse impact on our overall liquidity.
Liquid Assets Liquid assets include cash, cash equivalents, short-term investments, fixed maturities that are not designated as held to maturity and public equity securities.
As of December 31, 2010 and 2009, our domestic insurance operations had liquid assets of $138.5 billion and $134.3 billion, respectively, which includes a portion financed with asset-based financing.
The portion of liquid assets comprised of cash and cash equivalents and short-term investments was $5.8 billion and $11.1 billion as of December 31, 2010 and 2009, respectively.
As of December 31, 2010, $116.7 billion, or 90.5%, of the fixed maturity investments that are not designated as held-to-maturity within our domestic insurance company general account portfolios were considered high or highest quality based on NAIC or equivalent rating.
The remaining $12.2 billion, or 9.5%, of these fixed maturity investments were considered other than high or highest quality based on NAIC or equivalent rating.
We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures in order to evaluate the adequacy of our domestic insurance operations’ liquidity under a variety of stress scenarios.
We believe that the liquidity profile of our assets is sufficient to satisfy current liquidity requirements, including under foreseeable stress scenarios.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 7.
INVESTMENTS IN OPERATING JOINT VENTURES (continued) Wachovia Corporation’s (“Wachovia”) contribution to the joint venture of the A. G.  Edwards retail securities brokerage business on January 1, 2008 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.
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.
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 joint venture to Wells Fargo on December 31, 2009, the Company’s final diluted ownership percentage in the joint venture for 2008 and 2009 was established as 23%.
On December 31, 2009, the Company recognized a decrease to “Additional paid-in capital” of $109 million, net of tax, and a true-up to the Company’s 2008 and 2009 earnings from the joint venture of $15 million, net of tax based on the difference between the diluted ownership percentage previously used to record earnings and the final diluted ownership percentage.
On August 15, 2008, Wachovia announced that it had reached an agreement in principle for a global settlement of investigations concerning the underwriting, sale and subsequent auction of certain auction rate securities by subsidiaries of Wachovia Securities and had recorded an increase to legal reserves.
The Company’s recorded share of pre-tax losses from the joint venture for the year ended December 31, 2008 included $355 million related to the impact of this item on our share of the equity earnings of the joint venture.8.
VALUATION OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December 31, are as follows:
## Table 2 ##
(1) The VOBA balances at December 31, 2010 were $277 million, $33 million, and $174 million related to the insurance transactions associated with the CIGNA, American Skandia, Inc.  (“American Skandia”), and Aoba Life Insurance Company, LTD.  (“Aoba Life”), respectively.
The weighted average remaining expected life of VOBA varies by product.
The weighted average remaining expected lives were approximately 17, 4 and 6 years for the VOBA related to CIGNA, American Skandia and Aoba Life, respectively.
(2) The interest accrual rates vary by product.
The interest rates for 2010 were 7.00%, 4.97%, and 2.60% for the VOBA related to CIGNA, American Skandia, and Aoba Life, respectively.
The interest rates for 2009 were 5.42%, 6.90%, 5.24%, and 2.60% for the VOBA related to Allstate, CIGNA, American Skandia, and Aoba Life, respectively.
The interest rates for 2008 were 5.42%, 7.30%, 5.72%, and 2.50% to 2.60% for the VOBA related to Allstate, CIGNA, American Skandia, and Aoba Life, respectively.
During the first quarter of 2009 and the fourth quarter of 2008, the Company recognized impairments of $73 million and $234 million, respectively, related to the VOBA associated with the Allstate acquisition.
These impairments are included on the “Amortization—Impact of assumption and experience unlocking and true-ups” line in the table above.
The impairment recorded in 2009 represented the remaining VOBA balance associated with the Allstate acquisition.
These impairments were reflective of the deterioration in the financial markets, which resulted in additional market depreciation within the separate account assets and corresponding decreases in fee income and overall expected future earnings for this business.
These impairments were determined using discounted present value of future estimated gross profits.
Since the VOBA balance was completely impaired for these contracts, it cannot be reestablished for market value appreciation in subsequent periods.
There were no impairments during 2010.
Private Fixed Maturities—Credit Quality The following table sets forth our private fixed maturity portfolios by NAIC designation attributable to the Financial Services Businesses as of the dates indicated.
Private Fixed Maturity Securities—Financial Services Businesses
## Table 3 ##
(1) Reflects equivalent ratings for investments of the international insurance operations.
(2) Includes, as of December 31, 2010 and 2009, 160 securities with amortized cost of $1,776 million (fair value, $1,800 million) and 138 securities with amortized cost of $1,117 million (fair value, $1,124 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.
(3) Includes $47 million of gross unrealized gains and $1 million of gross unrealized losses as of December 31, 2010, compared to $16 million of gross unrealized gains and $4 million of gross unrealized losses as of December 31, 2009 on securities classified as held to maturity.
(4) On an amortized cost basis, as December 31, 2010 includes $591 million in securitized bank loans and $215 million in commercial asset finance securities.
The following table sets forth our private fixed maturity portfolios by NAIC designation attributable to the Closed Block Business as of the dates indicated.
Private Fixed Maturity Securities—Closed Block Business
## Table 4 ##
(1) Includes, as of December 31, 2010 and 2009, 103 securities with amortized cost of $1,523 million (fair value, $1,506 million) and 85 securities with amortized cost of $1,358 million (fair value, $1,375 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings.
(2) On an amortized cost basis, as of December 31, 2010, includes $389 million in securitized bank loans and $289 million in commercial asset finance securities.

Tables referenced above, in order (Table 0 first):
<table><tr><td>Years ended December 31</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Statutory tax rate</td><td>19.0%</td><td>19.3%</td><td>20.0%</td></tr><tr><td>U.S. state income taxes, net of U.S. federal benefit</td><td>-0.4</td><td>-1.5</td><td>0.4</td></tr><tr><td>Taxes on international operations<sup>-1</sup></td><td>-7.3</td><td>-30.3</td><td>-12.2</td></tr><tr><td>Nondeductible expenses</td><td>2.7</td><td>3.4</td><td>1.4</td></tr><tr><td>Adjustments to prior year tax requirements</td><td>0.9</td><td>2.0</td><td>-1.2</td></tr><tr><td>Adjustments to valuation allowances</td><td>3.8</td><td>-1.8</td><td>-2.2</td></tr><tr><td>Change in uncertain tax positions</td><td>0.9</td><td>1.6</td><td>3.2</td></tr><tr><td>Excess tax benefits related to shared based compensation<sup>-2</sup></td><td>-3.6</td><td>-8.0</td><td>—</td></tr><tr><td>U.S. Tax Reform impact<sup>-3</sup></td><td>7.1</td><td>51.2</td><td>—</td></tr><tr><td>Loss on disposition</td><td>-10.2</td><td>—</td><td>—</td></tr><tr><td>Other — net</td><td>-1.2</td><td>0.6</td><td>1.2</td></tr><tr><td>Effective tax rate</td><td>11.7%</td><td>36.5%</td><td>10.6%</td></tr></table>
<table><tr><td></td><td colspan="2">December 31, 2010</td><td colspan="2"> December 31, 2009</td></tr><tr><td></td><td> Amount</td><td>% of Total</td><td> Amount</td><td> % of Total</td></tr><tr><td></td><td colspan="4"> ($ in millions)</td></tr><tr><td>Not subject to discretionary withdrawal provisions</td><td>$37,505</td><td>47%</td><td>$38,078</td><td>47%</td></tr><tr><td>Subject to discretionary withdrawal, with adjustment:</td><td></td><td></td><td></td><td></td></tr><tr><td>With market value adjustment</td><td>21,105</td><td>26</td><td>20,570</td><td>26</td></tr><tr><td>At market value</td><td>1,876</td><td>2</td><td>1,598</td><td>2</td></tr><tr><td>At contract value, less surrender charge of 5% or more</td><td>2,471</td><td>3</td><td>4,166</td><td>5</td></tr><tr><td>Subtotal</td><td>62,957</td><td>78</td><td>64,412</td><td>80</td></tr><tr><td>Subject to discretionary withdrawal at contract value with no surrender charge or surrender charge of less than5%</td><td>17,404</td><td>22</td><td>16,382</td><td>20</td></tr><tr><td>Total annuity reserves and deposit liabilities</td><td>$80,361</td><td>100%</td><td>$80,794</td><td>100%</td></tr></table>
<table><tr><td></td><td>2010-1</td><td>2009</td><td>2008</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Balance, beginning of year</td><td>$511</td><td>$719</td><td>$1,072</td></tr><tr><td>Amortization—Impact of assumption and experience unlocking and true-ups</td><td>-4</td><td>-80</td><td>-345</td></tr><tr><td>Amortization—All Other</td><td>-60</td><td>-137</td><td>-103</td></tr><tr><td>Change in unrealized investment gains and losses</td><td>-11</td><td>-13</td><td>3</td></tr><tr><td>Interest-2</td><td>25</td><td>27</td><td>51</td></tr><tr><td>Foreign currency translation</td><td>23</td><td>-5</td><td>41</td></tr><tr><td>Balance, end of year</td><td>$484</td><td>$511</td><td>$719</td></tr></table>
<table><tr><td> -1(2)</td><td colspan="4"> December 31, 2010</td><td colspan="4"> December 31, 2009</td></tr><tr><td> NAIC Designation</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td><td> Amortized Cost</td><td> Gross Unrealized Gains-3</td><td> Gross Unrealized Losses-3</td><td> Fair Value</td></tr><tr><td></td><td colspan="8"> (in millions)</td></tr><tr><td>1</td><td>$6,226</td><td>$511</td><td>$90</td><td>$6,647</td><td>$5,795</td><td>$259</td><td>$121</td><td>$5,933</td></tr><tr><td>2</td><td>13,264</td><td>792</td><td>341</td><td>13,715</td><td>10,485</td><td>452</td><td>379</td><td>10,558</td></tr><tr><td>Subtotal High or Highest Quality Securities</td><td>19,490</td><td>1,303</td><td>431</td><td>20,362</td><td>16,280</td><td>711</td><td>500</td><td>16,491</td></tr><tr><td>3</td><td>2,467</td><td>104</td><td>63</td><td>2,508</td><td>2,292</td><td>52</td><td>131</td><td>2,213</td></tr><tr><td>4</td><td>948</td><td>26</td><td>44</td><td>930</td><td>1,193</td><td>18</td><td>118</td><td>1,093</td></tr><tr><td>5</td><td>518</td><td>21</td><td>17</td><td>522</td><td>482</td><td>6</td><td>36</td><td>452</td></tr><tr><td>6</td><td>95</td><td>29</td><td>6</td><td>118</td><td>313</td><td>24</td><td>39</td><td>298</td></tr><tr><td>Subtotal Other Securities-4</td><td>4,028</td><td>180</td><td>130</td><td>4,078</td><td>4,280</td><td>100</td><td>324</td><td>4,056</td></tr><tr><td>Total Private Fixed Maturities</td><td>$23,518</td><td>$1,483</td><td>$561</td><td>$24,440</td><td>$20,560</td><td>$811</td><td>$824</td><td>$20,547</td></tr></table>
<table><tr><td> -1</td><td colspan="4"> December 31, 2010</td><td colspan="4"> December 31, 2009</td></tr><tr><td> NAIC Designation</td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair Value</td><td> Amortized Cost</td><td> Gross Unrealized Gains</td><td> Gross Unrealized Losses</td><td> Fair Value</td></tr><tr><td></td><td colspan="8"> (in millions)</td></tr><tr><td>1</td><td>$3,702</td><td>$447</td><td>$11</td><td>$4,138</td><td>$3,091</td><td>$247</td><td>$13</td><td>$3,325</td></tr><tr><td>2</td><td>7,386</td><td>711</td><td>35</td><td>8,062</td><td>6,632</td><td>467</td><td>41</td><td>7,058</td></tr><tr><td>Subtotal High or Highest Quality Securities</td><td>11,088</td><td>1,158</td><td>46</td><td>12,200</td><td>9,723</td><td>714</td><td>54</td><td>10,383</td></tr><tr><td>3</td><td>1,292</td><td>67</td><td>21</td><td>1,338</td><td>1,354</td><td>55</td><td>72</td><td>1,337</td></tr><tr><td>4</td><td>803</td><td>12</td><td>23</td><td>792</td><td>923</td><td>12</td><td>65</td><td>870</td></tr><tr><td>5</td><td>307</td><td>6</td><td>16</td><td>297</td><td>269</td><td>4</td><td>14</td><td>259</td></tr><tr><td>6</td><td>46</td><td>7</td><td>2</td><td>51</td><td>157</td><td>5</td><td>17</td><td>145</td></tr><tr><td>Subtotal Other Securities-2</td><td>2,448</td><td>92</td><td>62</td><td>2,478</td><td>2,703</td><td>76</td><td>168</td><td>2,611</td></tr><tr><td>Total Private Fixed Maturities</td><td>$13,536</td><td>$1,250</td><td>$108</td><td>$14,678</td><td>$12,426</td><td>$790</td><td>$222</td><td>$12,994</td></tr></table>

Question: What's the growth rate of Subtotal Other Securities-2 in fair value? (in %)
Answer: -0.05094
Reasoning program: subtract(2478,2611), divide(#0,2611)