NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 8—Income Taxes (continued) The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
## Table 0 ##
Torchmark’s Federal income tax returns are routinely audited by the Internal Revenue Service (IRS).
In the fourth quarter of 2005, the Appeals division of the IRS and Torchmark agreed to settle all issues with respect to the Company’s 1996 and 1997 tax years.
In the fourth quarter of 2006, the Appeals division of the IRS and Torchmark agreed to settle all issues with respect to the Company’s 1998, 2001, and 2002 tax years.
As a result, Torchmark recorded a $15.9 million tax benefit in 2005 and a $7.4 million tax benefit in 2006 to reflect the impact of these settlements on the tax years covered by the examinations as well as all other tax years prior to 2006 to which the settled issues apply.
The benefits relate primarily to Torchmark’s computation of the dividends received deduction on its separate account assets and the amount of life insurance reserves for income tax purposes.
The statutes of limitation for the assessment of additional tax are closed for the 1999 and 2000 tax years.
The IRS has substantially completed its examination of Torchmark’s 2003 and 2004 tax years.
The IRS is not currently examining the tax years 2005 through 2007, but such tax years remain subject to examination.
Final settlement and closing of the statute of limitations for the open tax years 1998 through 2004 is expected to occur in 2008 and is not expected to have any material impact on the Company’s effective tax rate.
Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from the completed examinations, future tax examinations, and other taxrelated matters for all open tax years.
For the tax years 1993 through 1998, Torchmark filed unitary state income tax returns with certain of its subsidiaries, including subsidiaries disposed of in 1998.
Disputes arose regarding whether Torchmark was entitled to receive certain state tax benefit payments relating to these unitary returns.
In 2006, an arbitration panel ruled in favor of the Company and payments of the state income taxes in dispute were made to Torchmark.
As a result, Torchmark recorded a state income tax benefit of $4.3 million, net of federal income tax.
A tax deferred component of statutory income accumulated prior to 1984 in a “policyholders’ surplus account” is not taxable unless it exceeds certain statutory limitations or is distributed to shareholders.
As of December 31, 2004, Torchmark had not recognized a deferred tax liability of approximately $10 million that related to this accumulated income as management considered the situations causing taxation of the account to be remote.
During 2004, the American Jobs Creation Act of 2004 amended Federal income tax law to permit life insurance companies to distribute amounts from policyholders’ surplus accounts in
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 4—Investments (continued)
## Table 1 ##
The following table represents changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
## Table 2 ##
* Includes redeemable preferred stocks ** Includes capitalized interest and foreign exchange adjustments.
PERFORMANCE GRAPH The following chart presents a comparison for the five-year period ended June 30, 2016, of the market performance of the Company’s common stock with the S&P 500 Index and an index of peer companies selected by the Company: COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN Among Jack Henry & Associates, Inc. , the S&P 500 Index, and a Peer Group
## Table 3 ##
The following information depicts a line graph with the following values:
This comparison assumes $100 was invested on June 30, 2011, and assumes reinvestments of dividends.
Total returns are calculated according to market capitalization of peer group members at the beginning of each period.
Peer companies selected are in the business of providing specialized computer software, hardware and related services to financial institutions and other businesses.
Companies in the Peer Group are ACI Worldwide, Inc. , Bottomline Technology, Inc. , Broadridge Financial Solutions, Cardtronics, Inc. , Convergys Corp. , Corelogic, Inc. , DST Systems, Inc. , Euronet Worldwide, Inc. , Fair Isaac Corp. , Fidelity National Information Services, Inc. , Fiserv, Inc. , Global Payments, Inc. , Moneygram International, Inc. , SS&C Technologies Holdings, Inc. , Total Systems Services, Inc. , Tyler Technologies, Inc. , Verifone Systems, Inc. , and WEX, Inc. .  Heartland Payment Systems, Inc.  was removed from the peer group as it merged with Global Payments, Inc.  in April 2016.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2"> December 31, </td></tr><tr><td></td><td> 2007 </td><td> 2006 </td></tr><tr><td>Deferred tax assets:</td><td></td><td></td></tr><tr><td>Present value of future policy surrender charges</td><td>$5,536</td><td>$7,701</td></tr><tr><td>Carryover of nonlife net operating losses</td><td>10,509</td><td>6,801</td></tr><tr><td>Unrealized investment losses</td><td>46,378</td><td>-0-</td></tr><tr><td>Other assets and other liabilities, principally due to the current nondeductibility of certain accrued expenses for tax purposes</td><td>23,383</td><td>5,785</td></tr><tr><td>Total gross deferred tax assets</td><td>85,806</td><td>20,287</td></tr><tr><td>Deferred tax liabilities:</td><td></td><td></td></tr><tr><td>Unrealized investment gains</td><td>-0-</td><td>78,055</td></tr><tr><td>Deferred acquisition costs</td><td>786,560</td><td>733,955</td></tr><tr><td>Future policy benefits, unearned and advance premiums, and policy claims</td><td>291,410</td><td>240,471</td></tr><tr><td>Other</td><td>12,930</td><td>8,385</td></tr><tr><td>Total gross deferred tax liabilities</td><td>1,090,900</td><td>1,060,866</td></tr><tr><td>Net deferred tax liability</td><td>$1,005,094</td><td>$1,040,579</td></tr></table>
<table><tr><td></td><td colspan="4"> Fair Value Measurements at December 31, 2011 Using:</td></tr><tr><td> Description</td><td>Quoted Prices in Active Markets for Identical Assets (Level 1)</td><td>Significant Other Observable Inputs (Level 2)</td><td>Significant Unobservable Inputs (Level 3)</td><td> Total Fair Value</td></tr><tr><td>Fixed maturities available for sale:</td><td></td><td></td><td></td><td></td></tr><tr><td>Bonds:</td><td>`</td><td></td><td></td><td></td></tr><tr><td>U.S. Government direct, guaranteed, and government-sponsored enterprises</td><td>$0</td><td>$67,035</td><td>$0</td><td>$67,035</td></tr><tr><td>States, municipalities, and political subdivisions</td><td>0</td><td>1,329,822</td><td>0</td><td>1,329,822</td></tr><tr><td>Foreign governments</td><td>0</td><td>23,159</td><td>0</td><td>23,159</td></tr><tr><td>Corporates</td><td>28,092</td><td>9,231,578</td><td>11,250</td><td>9,270,920</td></tr><tr><td>Collateralized debt obligations</td><td>0</td><td>0</td><td>30,320</td><td>30,320</td></tr><tr><td>Other asset-backed securities</td><td>0</td><td>37,558</td><td>7,122</td><td>44,680</td></tr><tr><td>Redeemable preferred stocks</td><td>217,613</td><td>904,656</td><td>0</td><td>1,122,269</td></tr><tr><td>Total fixed maturities</td><td>245,705</td><td>11,593,808</td><td>48,692</td><td>11,888,205</td></tr><tr><td>Equity securities</td><td>16,346</td><td>0</td><td>710</td><td>17,056</td></tr><tr><td>Total fixed maturities and equity securities</td><td>$262,051</td><td>$11,593,808</td><td>$49,402</td><td>$11,905,261</td></tr><tr><td>Percentage of total</td><td>2.2%</td><td>97.4%</td><td>0.4%</td><td>100.0%</td></tr></table>
<table><tr><td></td><td colspan="5">Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)</td></tr><tr><td></td><td>Asset- backed securities</td><td>Collateralized debt Obligations</td><td>Corporates*</td><td>Other</td><td>Total</td></tr><tr><td>Balance at January 1, 2010</td><td>$7,981</td><td>$18,037</td><td>$71,764</td><td>$5,836</td><td>$103,618</td></tr><tr><td>Total gains or losses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Included in realized gains/losses</td><td>0</td><td>-1,712</td><td>1,504</td><td>708</td><td>500</td></tr><tr><td>Included in other comprehensive income</td><td>255</td><td>2,445</td><td>14,711</td><td>-534</td><td>16,877</td></tr><tr><td>Sales</td><td>0</td><td>0</td><td>-5,862</td><td>-2,331</td><td>-8,193</td></tr><tr><td>Amortization</td><td>-194</td><td>2,333</td><td>2,536</td><td>-1</td><td>4,674</td></tr><tr><td>Other **</td><td>0</td><td>1,353</td><td>0</td><td>0</td><td>1,353</td></tr><tr><td>Transfers out of Level 3</td><td>0</td><td>0</td><td>-10,980</td><td>-3,008</td><td>-13,988</td></tr><tr><td>Balance at December 31, 2010</td><td>8,042</td><td>22,456</td><td>73,673</td><td>670</td><td>$104,841</td></tr><tr><td>Total gains or losses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Included in realized gains/losses</td><td>0</td><td>0</td><td>-12,542</td><td>0</td><td>-12,542</td></tr><tr><td>Included in other comprehensive income</td><td>-714</td><td>3,952</td><td>14,578</td><td>40</td><td>17,856</td></tr><tr><td>Sales</td><td>0</td><td>0</td><td>-13,875</td><td>0</td><td>-13,875</td></tr><tr><td>Amortization</td><td>-206</td><td>2,470</td><td>1,302</td><td>0</td><td>3,566</td></tr><tr><td>Other **</td><td>0</td><td>1,442</td><td>0</td><td>0</td><td>1,442</td></tr><tr><td>Transfers out of Level 3</td><td>0</td><td>0</td><td>-51,886</td><td>0</td><td>-51,886</td></tr><tr><td>Balance at December 31, 2011</td><td>7,122</td><td>30,320</td><td>11,250</td><td>710</td><td>49,402</td></tr><tr><td>Total gains or losses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Included in realized gains/losses</td><td>0</td><td>0</td><td>1,482</td><td>0</td><td>1,482</td></tr><tr><td>Included in other comprehensive income</td><td>1,078</td><td>12,067</td><td>3,600</td><td>29</td><td>16,774</td></tr><tr><td>Acquisitions</td><td>0</td><td>0</td><td>183,676</td><td>0</td><td>183,676</td></tr><tr><td>Sales</td><td>0</td><td>0</td><td>-13,429</td><td>0</td><td>-13,429</td></tr><tr><td>Amortization</td><td>-219</td><td>2,648</td><td>699</td><td>0</td><td>3,128</td></tr><tr><td>Other **</td><td>0</td><td>1,536</td><td>0</td><td>0</td><td>1,536</td></tr><tr><td>Transfers out of Level 3</td><td>0</td><td>0</td><td>43,794</td><td>0</td><td>43,794</td></tr><tr><td>Balance at December 31, 2012</td><td>$7,981</td><td>$46,571</td><td>$231,072</td><td>$739</td><td>$286,363</td></tr></table>
<table><tr><td></td><td>2011</td><td>2012</td><td>2013</td><td>2014</td><td>2015</td><td>2016</td></tr><tr><td>JKHY</td><td>100.00</td><td>116.62</td><td>161.33</td><td>206.53</td><td>228.24</td><td>312.11</td></tr><tr><td>Peer Group</td><td>100.00</td><td>107.65</td><td>126.89</td><td>174.28</td><td>219.46</td><td>251.24</td></tr><tr><td>S&P 500</td><td>100.00</td><td>105.45</td><td>127.17</td><td>158.46</td><td>170.22</td><td>177.02</td></tr></table>

Question: Which element for Total Fair Value exceeds 10% of total in 2011?
Answer: States, municipalities, and political subdivisions, Corporates, Redeemable preferred stocks