NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Fiscal years ended May 27, 2007, May 28, 2006, and May 29, 2005 Columnar Amounts in Millions Except Per Share Amounts Due to the purchase price of the cattle feeding business being entirely financed by the Company, the legal divestiture of the cattle feeding operation was not recognized as a divestiture for accounting purposes, and the assets, liabilities and results of operations of the cattle feeding business were reflected in continuing operations in the Company’s financial statements prior to October 15, 2004.
On September 24, 2004, the Company reached an agreement with affiliates of Swift Foods by which the Company took control and ownership of approximately $300 million of the net assets of the cattle feeding business, including feedlots and live cattle.
On October 15, 2004, the Company sold the feedlots to Smithfield Foods for approximately $70 million.
These transactions resulted in a gain of approximately $19 million (net of taxes of $11.6 million).
The Company retained live cattle inventory and related derivative instruments and liquidated those assets in an orderly manner over the succeeding several months.
Beginning September 24, 2004, the assets, liabilities and results of operations, including the gain on sale, of the cattle feeding business are classified as discontinued operations.
Culturelle Business During the first quarter of fiscal 2007, the Company completed its divestiture of its nutritional supplement business for proceeds of approximately $8.2 million, resulting in a pre-tax gain of approximately $6.2 million ($3.5 million after tax).
The Company reflects this gain within discontinued operations.
The results of the aforementioned businesses which have been divested are included within discontinued operations.
The summary comparative financial results of discontinued operations were as follows:
## Table 0 ##
The effective tax rate for discontinued operations is significantly higher than the statutory rate due to the nondeductibility of certain goodwill of divested businesses.
Other Assets Held for Sale During the third quarter of fiscal 2006, the Company initiated a plan to dispose of a refrigerated pizza business with annual revenues of less than $70 million.
During the second quarter of fiscal 2007, the Company disposed of this business for proceeds of approximately $22.0 million, resulting in no significant gain or loss.
Due to the Company’s expected significant continuing cash flows associated with this business, the results of operations of this business are included in continuing operations for all periods presented.
The assets and liabilities of this business are classified as assets and liabilities held for sale in the consolidated balance sheets for all periods prior to the sale.
During the second quarter of fiscal 2007, the Company completed the disposal of an oat milling business for proceeds of approximately $35.8 million, after final working capital adjustments made during the third quarter,
(b) For 2018, represents adjustments to the contingent consideration payable for PowderPure, and transaction costs related to Fragrance Resources and PowderPure within Selling and administrative expenses.
For 2017, represents the amortization of inventory “step-up” included in Cost of goods sold and transaction costs related to the acquisitions of Fragrance Resources and PowderPure within Selling and administrative expenses.
(c) For 2018, represents costs related to the integration of the Frutarom acquisition.
For 2017, represents costs related to the integration of the David Michael and Fragrance Resources acquisitions.
(d) Represents additional charge related to litigation settlement.
(e) Represents the reserve for payment of a tax assessment related to commercial rent for prior periods.
(f) For 2018, represents severance costs related to the 2017 Productivity Program and costs associated with the termination of agent relationships in a subsidiary.
For 2017, represents severance costs related to the 2017 Productivity Program.
(g) For 2018, principally represents recoveries from the supplier for the third and fourth quarter, partially offset by final payments to the customer made for the effected product in the first quarter.
For 2017, represents management’s best estimate of losses related to the previously disclosed FDA mandated recall.
(h) Represents pension settlement charges incurred in one of the Company’s UK pension plans.
(i) Represents transaction-related costs and expenses related to the acquisition of Frutarom.
Amount primarily includes $23.5 million of amortization for inventory “step-up” costs, $39.4 million of bridge loan commitment fees included in Interest expense; $34.9 million make whole payment on the Senior Notes— 2007 and $3.9 million realized loss on a fair value hedge included in Loss on extinguishment of debt; $12.5 million realized gain on a foreign currency derivative included in Other income; and $66.0 million of transaction costs included in Selling and administrative expenses.
The Company has not disclosed revenues at a lower level than provided herein, such as revenues from external customers by product, as it is impracticable for it to do so.
The Company had no customers that accounted for greater than 10% of consolidated net sales in 2018.
The Company had one customer that accounted for greater than 10% of consolidated net sales in each year for 2017 and 2016.
The Company’s largest customer had net sales of $356.8 million, $358.5 million and $364.8 million in 2018, 2017 and 2016, respectively.
The majority of these sales were in the Scent reportable operating segment.
Total long-lived assets consist of net property, plant and equipment and amounted to $1,241.2 million and $880.6 million at December 31, 2018 and 2017, respectively.
Of this total, $315.3 million and $219.1 million were located in the United States at December 31, 2018 and 2017, respectively, $104.0 million and $113.7 million were located in the Netherlands at December 31, 2018 and 2017, respectively, $74.0 million and $77.9 million were located in Singapore at December 31, 2018 and 2017, respectively, and $178.6 million and $135.8 million were located in China at December 31, 2018 and 2017, respectively.
## Table 1 ##
plan remeasurement as of the June 30, 2016 payment date.
As a result of settlement accounting, the Company recognized a pro-rata portion of the unamortized net actuarial loss, after remeasurement, resulting in a $439 million non-cash charge to the Company's earnings in the second quarter of 2016.
Additional payments of $8 million and $9 million were made during the third and fourth quarters, respectively, due to mandatory cash payouts and a small lump sum payout, and the Pension Plan was subsequently remeasured at September 30, 2016 and December 31, 2016.
As a result of settlement accounting, the Company recognized non-cash settlement charges of $3 million in both the third and fourth quarters of 2016.
ASSUMPTIONS International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements for employers’ accounting for pensions.
These assumptions are used to calculate benefit obligations as of December 31 of the current year and pension expense to be recorded in the following year (i. e. , the discount rate used to determine the benefit obligation as of December 31, 2016 was also the discount rate used to determine net pension expense for the 2017 year).
Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:
## Table 2 ##
(a) Represents the weighted average rate for the U. S.  qualified plans in 2016 and 2014 due to the remeasurement in the second, third and fourth quarters of 2016 and the first quarter of 2014.
(b) Represents the expected rate of return for International Paper's qualified pension plan for 2014.
The weighted average rate for the TempleInland Retirement Plan was 7.00% for 2014.
The expected long-term rate of return on plan assets is based on projected rates of return for current and planned asset classes in the plan’s investment portfolio.
Projected rates of return are developed through an asset/liability study in which projected returns for each of the plan’s asset classes are determined after analyzing historical experience and future expectations of returns and volatility of the various asset classes.
Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio is developed considering the effects of active portfolio management and expenses paid from plan assets.
The discount rate assumption was determined from a universe of high quality corporate bonds.
A settlement portfolio is selected and matched to the present value of the plan’s projected benefit payments.
To calculate pension expense for 2017, the Company will use an expected long-term rate of return on plan assets of 7.50% for the Retirement Plan of International Paper, a discount rate of 4.10% and an assumed rate of compensation increase of 3.75%.
The Company estimates that it will record net pension expense of approximately $310 million for its U. S.  defined benefit plans in 2017, with the decrease from expense of $809 million in 2016 mainly related to no expected settlement charges in 2017 and an increase in the discount rate to 4.10% in 2017 from 4.05% in 2016, partially offset by a reduction in the return on asset assumption to 7.50% in 2017 from 7.75% in 2016.
For non-U.
S.  pension plans, assumptions reflect economic assumptions applicable to each country.
The following illustrates the effect on pension expense for 2017 of a 25 basis point decrease in the above assumptions:
## Table 3 ##
## Table 4 ##
Mortgage Loans Mortgage loans consist primarily of commercial mortgage loans on real estate.
The carrying amount of our commercial mortgage loan portfolio was $10,121.8 million and $11,279.3 million as of December 31, 2009 and 2008, respectively.
Commercial mortgage loans on real estate are generally reported at cost adjusted for amortization of premiums and accrual of discounts, computed using the interest method and net of valuation allowances.
Commercial mortgage loans held for sale are carried at the lower of cost or fair value and reported as mortgage loans in the statements of financial position.
Commercial mortgage loans play an important role in our investment strategy by: ?
providing strong risk-adjusted relative value in comparison to other investment alternatives; ?
enhancing total returns and ?
providing strategic portfolio diversification.
As a result, we have focused on constructing a solid, high quality portfolio of mortgages.
Our portfolio is generally comprised of mortgages originated with conservative loan-to-value ratios, high debt service coverages and general purpose property types with a strong credit tenancy.
Our commercial mortgage loan portfolio consists of primarily non-recourse, fixed rate mortgages on fully or near fully leased properties.
The mortgage portfolio is comprised primarily of credit oriented retail properties, manufacturing office properties and general-purpose industrial properties.
In addition, we have a $174.4 million and a $261.3 million short-term high yield portfolio of mortgages held within the Global Asset Management segment as of December 31, 2009 and 2008, respectively.
For geographic and property type distribution of our commercial mortgage loans, see Item 8.
‘‘Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 5, Investments.
’’ Credit extensions in the state of California accounted for 20% of our commercial mortgage loan portfolio for both December 31, 2009 and 2008.
We are, therefore, exposed to potential losses resulting from the risk of catastrophes, such as earthquakes, that may affect the region.
Like other lenders, we generally do not require earthquake insurance for properties on which we make commercial mortgage loans.
With respect to California properties, however, we obtain an engineering report specific to each property.
The report assesses the building’s design specifications, whether it has been upgraded to meet seismic building codes and the maximum loss that is likely to result from a variety of different seismic events.
We also obtain a report that assesses, by building and geographic fault lines, the amount of loss our commercial mortgage loan portfolio might suffer under a variety of seismic events.
Our commercial loan portfolio is highly diversified by borrower.
As of December 31, 2009 and 2008, 31% and 30%, respectively, of the commercial mortgage loan portfolio was comprised of mortgage loans with principal balances of less than $10.0 million.
The total number of commercial mortgage loans outstanding was 1,101 and 1,223 as of December 31, 2009 and 2008, respectively.
The average loan size of our commercial mortgage portfolio was $9.3 million as of both December 31, 2009 and 2008.
Commercial Mortgage Loan Credit Monitoring.
We actively monitor and manage our commercial mortgage loan portfolio.
Substantially all loans within the portfolio are analyzed regularly and are internally rated, based on a proprietary risk rating cash flow model, in order to monitor the financial quality of these assets.
Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal ‘‘watch list’’.
Among the criteria that would indicate a potential problem are: imbalances in ratios of loan to value or contract rents to debt service, major tenant vacancies or bankruptcies, borrower sponsorship problems, late payments, delinquent taxes and loan relief/restructuring requests.
We review our mortgage loan portfolio and analyze the need for a valuation allowance for any loan that is delinquent for 60 days or more, in process of foreclosure, restructured, on the ‘‘watch list’’ or that currently has a valuation allowance.
We categorize loans that are 60 days or more delinquent, loans in process of foreclosure and loans to borrowers in bankruptcy that are delinquent as ‘‘problem’’ loans.
Valuation allowances have been recognized on problem

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Net sales</td><td>$727.6</td><td>$2,690.0</td><td>$4,131.7</td></tr><tr><td>Long-lived asset impairment charge</td><td>-21.1</td><td>-240.9</td><td>-59.4</td></tr><tr><td>Income from operations of discontinued operations before income taxes</td><td>92.5</td><td>179.7</td><td>157.7</td></tr><tr><td>Net gain from disposal of businesses</td><td>64.3</td><td>115.5</td><td>26.3</td></tr><tr><td>Income before income taxes</td><td>135.7</td><td>54.3</td><td>124.6</td></tr><tr><td>Income tax expense</td><td>-54.9</td><td>-109.8</td><td>-41.8</td></tr><tr><td>Income (loss) from discontinued operations, net of tax</td><td>$80.8</td><td>$-55.5</td><td>$82.8</td></tr></table>
<table><tr><td></td><td colspan="3">Capital Expenditures</td><td colspan="3">Depreciation and Amortization</td></tr><tr><td>(DOLLARS IN THOUSANDS)</td><td>2018</td><td>2017</td><td>2016</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Taste</td><td>$70,028</td><td>$68,937</td><td>$47,064</td><td>$72,474</td><td>$53,534</td><td>$47,705</td></tr><tr><td>Scent</td><td>82,206</td><td>53,089</td><td>73,345</td><td>85,078</td><td>59,951</td><td>50,724</td></tr><tr><td>Frutarom</td><td>12,878</td><td>—</td><td>—</td><td>8,738</td><td>—</td><td>—</td></tr><tr><td>Unallocated assets</td><td>4,982</td><td>6,947</td><td>6,003</td><td>7,502</td><td>4,482</td><td>4,040</td></tr><tr><td>Consolidated</td><td>$170,094</td><td>$128,973</td><td>$126,412</td><td>$173,792</td><td>$117,967</td><td>$102,469</td></tr></table>
<table><tr><td></td><td colspan="2">2016</td><td colspan="2">2015</td><td colspan="2">2014</td></tr><tr><td></td><td>U.S.Plans</td><td>Non-U.S.Plans</td><td>U.S.Plans</td><td>Non-U.S.Plans</td><td>U.S.Plans</td><td>Non-U.S.Plans</td></tr><tr><td>Actuarial assumptions used to determine benefit obligations as of December 31:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discount rate</td><td>4.10%</td><td>3.88%</td><td>4.40%</td><td>4.64%</td><td>4.10%</td><td>4.72%</td></tr><tr><td>Rate of compensation increase</td><td>3.75%</td><td>4.20%</td><td>3.75%</td><td>4.12%</td><td>3.75%</td><td>4.03%</td></tr><tr><td>Actuarial assumptions used to determine net periodic pension cost for years ended December 31:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discount rate (a)</td><td>4.05%</td><td>4.72%</td><td>4.10%</td><td>4.72%</td><td>4.65%</td><td>5.07%</td></tr><tr><td>Expected long-term rate of return on plan assets (b)</td><td>7.75%</td><td>6.55%</td><td>7.75%</td><td>6.64%</td><td>7.75%</td><td>7.53%</td></tr><tr><td>Rate of compensation increase</td><td>3.75%</td><td>4.03%</td><td>3.75%</td><td>4.03%</td><td>3.75%</td><td>4.13%</td></tr></table>
<table><tr><td>In millions</td><td>2017</td></tr><tr><td>Expense/(Income):</td><td></td></tr><tr><td>Discount rate</td><td>$33</td></tr><tr><td>Expected long-term rate of return on plan assets</td><td>26</td></tr><tr><td>Rate of compensation increase</td><td>-1</td></tr></table>
<table><tr><td> </td><td colspan="6"> December 31, 2008</td></tr><tr><td> </td><td colspan="2"> Problem, potential problem, and restructured</td><td colspan="2"> All other fixed maturity securities</td><td colspan="2"> Total</td></tr><tr><td> </td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td><td> Carrying amount</td><td> Gross unrealized losses</td></tr><tr><td> </td><td colspan="6"><i>(in millions)</i> </td></tr><tr><td>Three months or less</td><td>$53.7</td><td>$70.2</td><td>$6,433.5</td><td>$3,133.6</td><td>$6,487.2</td><td>$3,203.8</td></tr><tr><td>Greater than three to six months</td><td>27.5</td><td>28.5</td><td>1,374.2</td><td>1,314.6</td><td>1,401.7</td><td>1,343.1</td></tr><tr><td>Greater than six to nine months</td><td>6.1</td><td>14.5</td><td>279.3</td><td>415.5</td><td>285.4</td><td>430.0</td></tr><tr><td>Greater than nine to twelve months</td><td>11.5</td><td>10.3</td><td>486.8</td><td>904.1</td><td>498.3</td><td>914.4</td></tr><tr><td>Greater than twelve months</td><td>3.5</td><td>6.5</td><td>111.3</td><td>435.2</td><td>114.8</td><td>441.7</td></tr><tr><td>Total fixed maturity securities, available-for-sale</td><td>$102.3</td><td>$130.0</td><td>$8,685.1</td><td>$6,203.0</td><td>$8,787.4</td><td>$6,333.0</td></tr></table>

Question: Which carrying amount for total exceeds 10% of total in 2008?
Answer: three months or less and Greater than three to six months