NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) NOTE 14—COMMITMENTS AND CONTINGENCIES Leases We conduct a major part of our operations using leased facilities and equipment.
Many of these leases have renewal and purchase options and provide that we pay the cost of property taxes, insurance and maintenance.
Rent expense on all operating leases for fiscal 2010, 2009 and 2008 was $32.8 million, $30.2 million, and $30.4 million, respectively.
Future minimum lease payments for all noncancelable leases at May 31, 2010 were as follows:
## Table 0 ##
Legal We are party to a number of claims and lawsuits incidental to our business.
In the opinion of management, the reasonably possible outcome of such matters, individually or in the aggregate, will not have a material adverse impact on our financial position, liquidity or results of operations.
Taxes We define operating taxes as tax contingencies that are unrelated to income taxes, such as sales and property taxes.
During the course of operations, we must interpret the meaning of various operating tax matters in the United States and in the foreign jurisdictions in which we do business.
Taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations as they relate to such operating tax matters, which could result in the payment of additional taxes in those jurisdictions.
As of May 31, 2010 and 2009 we did not have a liability for operating tax items.
The amount of the liability is based on management’s best estimate given our history with similar matters and interpretations of current laws and regulations.
BIN/ICA Agreements In connection with our acquisition of merchant credit card operations of banks, we have entered into sponsorship or depository and processing agreements with certain of the banks.
These agreements allow us to use the banks’ identification numbers, referred to as Bank Identification Number for Visa transactions and Interbank Card Association number for MasterCard transactions, to clear credit card transactions through Visa and MasterCard.
Certain of such agreements contain financial covenants, and we were in compliance with all such covenants as of May 31, 2010.
On June 18, 2010, CIBC provided notice that it will not renew its sponsorship with us for Visa in Canada after the initial ten year term.
As a result, their Canadian Visa sponsorship will expire in March 2011.
We are
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company’s experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves.
The interest rates used in the determination of the present values range from 1.0% to 7.3%.
The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts.
Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above.
The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract.
See Note 12 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts.
Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses.
Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years.
In these situations, accounting standards require that an additional PFL liability be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years.
Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; certain individual health policies; and certain interest-sensitive life products.
Unpaid claims and claim settlement expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet date related to group disability products.
Unpaid claim liabilities that are discounted use interest rates ranging from 2.6% to 6.4%.
Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows:
## Table 1 ##
Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable.
These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities.
Included in “Funding agreements” at December 31, 2018 and 2017 are $3,755 million and $4,165 million, respectively, related to the Company’s Funding Agreement Notes Issuance Program (“FANIP”).
Under this program, which has a maximum authorized amount of $15 billion of medium-term notes and $3 billion of commercial paper, Delaware statutory trusts issue short-term commercial paper and/or medium-term notes to investors that are secured by funding agreements issued to the trusts by Prudential Insurance.
The outstanding commercial paper and notes have fixed or floating interest rates that range from 0.0% to 3.5% and original maturities ranging from two months to five years.
Included in the amounts at December 31, 2018 and 2017 is the medium-term note liability, which is carried at amortized cost, of $2,764 million and $3,211 million, respectively and short-term note liability of $997 million and $957 million, respectively.
Also included in “Funding agreements” are collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”), which at December 31, 2018 and 2017 totaled $0 and $436 million, respectively.
These obligations, which are carried at amortized cost, have fixed or floating interest rates that range from 1.2% to 2.1% and original maturities ranging from five to seven years.
For additional details on the FHLBNY program, see Note 16.
Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 13.3% for contracts other than interest-sensitive life.
Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%.
future periods (typically on a three-year rolling basis) in which the identified non-USD-denominated earnings are expected to be generated.
In establishing the level of non-USD-denominated earnings that will be hedged through this program, we exclude the anticipated level of USD-denominated earnings that will be generated by USD-denominated products and investments.
For the twelve months ended December 31, 2018, approximately 18% of the segment’s earnings were yen-based and, as of December 31, 2018, we have hedged 100%, 72% and 28% of expected yen-based earnings for 2019, 2020 and 2021, respectively.
To the extent currently unhedged, our International Insurance segment’s future expected USD-equivalent of yen-based earnings will be impacted by yen exchange rate movements.
As a result of these arrangements, our International Insurance segment’s results for 2018, 2017 and 2016 reflect the impact of translating yen-denominated earnings at fixed currency exchange rates of 111, 112, 106 yen per U. S.  dollar, respectively, and Korean won-denominated earnings at fixed currency exchange rates of 1150, 1130, and 1100 Korean won per U. S.  dollar, respectively.
We expect our 2019 results to reflect the impact of translating yen-denominated earnings at a fixed currency exchange rate of 105 yen per U. S.  dollar and Korean won-denominated earnings at a fixed currency exchange rate of 1110 won per U. S.  dollar.
Since determination of the fixed currency exchange rates for a given year is impacted by changes in foreign currency exchange rates over time, the segment’s future earnings will ultimately be impacted by these changes in exchange rates.
For PGIM and certain other currencies within International Insurance, the fixed currency exchange rates for the current year are predetermined during the third quarter of the prior year using forward currency exchange rates.
The table below presents, for the periods indicated, the increase (decrease) to revenues and adjusted operating income for the International Insurance, PGIM and Retirement segments and for Corporate and Other operations, reflecting the impact of these intercompany arrangements.
## Table 2 ##
(1) Effective January 1, 2018 the intercompany arrangement between our Corporate and Other operations and Retirement was terminated and this risk is now managed within our Retirement segment using a strategy that may include external hedges.
(2) Represents the difference between non-USD-denominated earnings translated on the basis of weighted average monthly currency exchange rates versus fixed currency exchange rates determined in connection with the foreign currency income hedging program.
(3) As of December 31, 2018, 2017 and 2016, the notional amounts of these forward currency contracts within our Corporate and Other operations were $2.6 billion, $2.8 billion and $2.7 billion, respectively, of which $1.3 billion, $1.5 billion and $1.6 billion, respectively, were related to our Japanese insurance operations.
Impact of products denominated in non-local currencies on U. S.  GAAP earnings While our international insurance operations offer products denominated in local currency, several also offer products denominated in non-local currencies, most notably our Japanese operations, which offer USD- and Australian dollar (“AUD”)-denominated products.
The non-local currency-denominated insurance liabilities related to these products are supported by investments denominated in corresponding currencies, including a significant portion designated as available-for-sale.
While the impact from foreign currency exchange rate movements on these non-local currency-denominated assets and liabilities is economically matched, differences in the accounting for changes in the value of these assets and liabilities due to changes in foreign currency exchange rate movements have historically resulted in volatility in U. S.  GAAP earnings.
In the first quarter of 2015 we implemented a structure in Gibraltar Life’s operations that disaggregated the USD- and AUD-denominated businesses into separate divisions, each with its own functional currency that aligns with the underlying products and investments.
The result of this alignment was to reduce differences in the accounting for changes in the value of these assets and liabilities that arise due to changes in foreign currency exchange rate movements.
For the USD- and AUD-denominated assets that were transferred under this structure, the net cumulative unrealized investment gains associated with foreign exchange remeasurement that were recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) totaled $6.0 billion and will be recognized in earnings within “Realized investment gains (losses), net” over time as these assets mature or are sold.
As of December 31, 2018, the remaining net cumulative unrealized investment gains balance related to these assets was $3.2 billion.
Absent the sale of any of these assets prior to their stated maturity, approximately 9% of the $3.2 billion balance will be recognized in 2019, approximately 12% will be recognized in 2020, and a majority of the remaining balance will be recognized from 2021 through 2024.
Corporate and Other Corporate and Other includes corporate operations, after allocations to our business segments, and Divested and Run-off Businesses other than those that qualify for “discontinued operations” accounting treatment under U. S.  GAAP.
## Table 3 ##
(1) Includes consolidating adjustments.2018 to 2017 Annual Comparison.
The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $154 million.
Net charges from other corporate activities decreased $147 million, primarily reflecting lower costs for employee compensation plans tied to Company stock and equity market performance, partially offset by increased expenses, including expenses related to corporate initiatives.
Results for investment income, net of operating debt interest expense, decreased $10 million, including lower net investment income driven by transfers of investments in the second quarter of 2018 to support higher capital requirements in the Long-Term Care Run-off business, partially offset by higher income on non-coupon investments and highly liquid assets, and lower operating debt interest expense.
Capital debt interest expense increased $21 million, reflecting higher debt balances from debt issuances in the third quarter of 2017 and the first and third quarters of 2018, partially offset by the extinguishment of junior subordinated debt in the second quarter of 2018 and a senior debt maturity in the fourth quarter of 2017.
Results from pension and employee benefits increased $38 million, primarily reflecting higher income from our qualified pension plan, including higher expected earnings on plan assets and lower interest costs on plan obligations driven by a decline in interest rates in 2017.
For purposes of calculating pension income from our qualified pension plan for the year ended December 31, 2019, we will increase the discount rate from 3.65% to 4.30% as of December 31, 2018.
The expected rate of return on plan assets will increase from 6.25% in 2018 to 6.50% in 2019.
The assumed rate of increase in compensation will remain unchanged at 4.50%.
Giving effect to the foregoing assumptions and other factors, we expect income from our qualified pension plan in 2019 to be approximately $50 million to $55 million lower than 2018 levels.
The decrease is driven by lower expected returns on plan assets due to lower than expected plan fixed income asset growth in 2018 as well as higher interest costs on the plan obligation due to the higher discount rate.
For purposes of calculating postretirement benefit expenses for the year ended December 31, 2019, we will increase the discount rate from 3.60% to 4.30% as of December 31, 2018.
The expected rate of return on plan assets will remain unchanged at 7.00%.
Giving effect to the foregoing assumptions and other factors, we expect postretirement benefit expenses in 2019 to be approximately $30 million to $35 million higher than 2018 levels.
The increase in expenses is driven by lower expected returns on plan assets due to lower than expected asset growth in 2018, as well as higher interest costs on the plan obligation due to the higher discount rate.
In 2019, pension and other postretirement benefit service costs related to active employees will continue to be allocated to our business segments.
For further information regarding our pension and postretirement plans, see Note 17 to the Consolidated Financial Statements.2017 to 2016 Annual Comparison.
The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $144 million.
Results for investment income, net of operating debt interest expense, improved $95 million, primarily reflecting lower operating debt interest expense, including efforts in 2016 to reduce leverage through senior debt maturities and early extinguishment of debt, and higher investment income, driven by the absence of a non-coupon investment loss incurred in the prior year and higher income on highly liquid assets.
Net charges from other corporate activities decreased $14 million, reflecting the absence of costs incurred in the prior year associated with the early extinguishment of certain debt, partially offset by increases in other corporate expenses, including higher costs for employee compensation plans tied to equity market and Company performance, and increased expenses related to corporate initiatives.
Capital debt interest expense increased $19 million, primarily resulting from a junior subordinated debt issuance in the third quarter of 2017.
Results from pension and employee benefits increased $54 million, primarily reflecting higher income from our qualified pension plan, including higher expected earnings on plan assets and lower interest costs on plan obligations driven by a decline in interest rates in 2016.
The following table sets forth the fair value of certain of our domestic insurance operations’ portfolio of liquid assets, as of the dates indicated.
## Table 4 ##
(1) Excludes fixed maturities designated as held-to-maturity.
Classified by NAIC or equivalent rating.
The following table sets forth the fair value of our international insurance operations’ portfolio of liquid assets, as of the dates indicated.
## Table 5 ##
(1) Includes PGFL.
(2) Represents our international insurance operations, excluding Japan.
(3) Excludes fixed maturities designated as held-to-maturity.
Classified by NAIC or equivalent rating.
(4) As of December 31, 2018, $112.3 billion, or 75%, were invested in government or government agency bonds.
Given the size and liquidity profile of our investment portfolios, we believe that claim experience, including policyholder withdrawals and surrenders, varying from our projections does not constitute a significant liquidity risk.
Our asset/liability management process takes into account the expected maturity of investments and expected claim payments as well as the specific nature and risk profile of the liabilities.
To the extent we need to pay claims in excess of projections, we may borrow temporarily or sell investments sooner than anticipated to pay these claims, which may result in increased borrowing costs or realized investment gains or losses, including from changes in interest rates or credit spreads.
The payment of claims and sale of investments earlier than anticipated would have an impact on the reported level of cash flow from operating, investing, and financing activities, in our financial statements.
Historically, there has been no significant variation between the expected maturities of our investments and the payment of claims.
Liquidity associated with other activities Hedging activities associated with Individual Annuities For the portion of our Individual Annuities’ ALM strategy executed through hedging, as well as the capital hedge program, we enter into a range of exchange-traded, cleared and other OTC equity and interest rate derivatives in order to hedge certain capital market risks related to more severe market conditions.
For a full discussion of our Individual Annuities’ risk management strategy, see “—Results of Operations by Segment—U.
S.  Individual Solutions Division—Individual Annuities.
” This portion of our Individual Annuities’ ALM strategy and capital hedge program requires access to liquidity to meet payment obligations relating to these derivatives, such as payments for periodic settlements, purchases, maturities and terminations.
These liquidity needs can vary materially due to, among other items, changes in interest rates, equity markets, mortality and policyholder behavior.
The hedging portion of our Individual Annuities’ ALM strategy and capital hedge program may also result in derivative related collateral postings to (when we are in a net pay position) or from (when we are in a net receive position) counterparties.
The net collateral position depends on changes in interest rates and equity markets related to the amount of the exposures hedged.
Depending on market conditions, the collateral posting requirements can result in material liquidity needs when we are in a net pay position.
As of December 31, 2018, the derivatives comprising the hedging portion of our ALM strategy and capital hedge program were in a net receive position of $2.9 billion compared to a net receive position of $3.3 billion as of December 31, 2017.
The change in collateral position was primarily driven by an increase in interest rates.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Operating Leases</td></tr><tr><td>2011</td><td>$9,856</td></tr><tr><td>2012</td><td>3,803</td></tr><tr><td>2013</td><td>2,538</td></tr><tr><td>2014</td><td>1,580</td></tr><tr><td>2015</td><td>928</td></tr><tr><td>Thereafter</td><td>1,428</td></tr><tr><td>Total future minimum lease payments</td><td>$20,133</td></tr></table>
<table><tr><td></td><td>2018</td><td>2017</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Individual annuities</td><td>$43,309</td><td>$41,449</td></tr><tr><td>Group annuities</td><td>27,618</td><td>28,152</td></tr><tr><td>Guaranteed investment contracts and guaranteed interest accounts</td><td>13,558</td><td>14,002</td></tr><tr><td>Funding agreements</td><td>3,785</td><td>4,631</td></tr><tr><td>Interest-sensitive life contracts</td><td>39,228</td><td>36,879</td></tr><tr><td>Dividend accumulation and other</td><td>22,840</td><td>23,076</td></tr><tr><td>Total policyholders’ account balances</td><td>$150,338</td><td>$148,189</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Segment impacts of intercompany arrangements:</td><td></td><td></td><td></td></tr><tr><td>International Insurance</td><td>$10</td><td>$3</td><td>$23</td></tr><tr><td>PGIM</td><td>0</td><td>0</td><td>6</td></tr><tr><td>Retirement-1</td><td>0</td><td>2</td><td>9</td></tr><tr><td>Impact of intercompany arrangements-2</td><td>10</td><td>5</td><td>38</td></tr><tr><td>Corporate and Other operations:</td><td></td><td></td><td></td></tr><tr><td>Impact of intercompany arrangements-2</td><td>-10</td><td>-5</td><td>-38</td></tr><tr><td>Settlement gains (losses) on forward currency contracts(3)</td><td>-13</td><td>-16</td><td>38</td></tr><tr><td>Net benefit (detriment) to Corporate and Other operations</td><td>-23</td><td>-21</td><td>0</td></tr><tr><td>Net impact on consolidated revenues and adjusted operating income</td><td>$-13</td><td>$-16</td><td>$38</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Operating results:</td><td></td><td></td><td></td></tr><tr><td>Capital debt interest expense</td><td>$-726</td><td>$-705</td><td>$-686</td></tr><tr><td>Investment income, net of operating debt interest expense</td><td>86</td><td>96</td><td>1</td></tr><tr><td>Pension and employee benefits</td><td>195</td><td>157</td><td>103</td></tr><tr><td>Other corporate activities-1</td><td>-838</td><td>-985</td><td>-999</td></tr><tr><td>Adjusted operating income</td><td>-1,283</td><td>-1,437</td><td>-1,581</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments</td><td>216</td><td>-407</td><td>-1,797</td></tr><tr><td>Related charges</td><td>7</td><td>-26</td><td>-1</td></tr><tr><td>Divested and Run-off Businesses</td><td>-1,535</td><td>38</td><td>-84</td></tr><tr><td>Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests</td><td>4</td><td>-19</td><td>-3</td></tr><tr><td>Income (loss) before income taxes and equity in earnings of operating joint ventures</td><td>$-2,591</td><td>$-1,851</td><td>$-3,466</td></tr></table>
<table><tr><td></td><td colspan="5">December 31, 2018</td><td></td><td></td></tr><tr><td></td><td>PrudentialInsurance</td><td>PLIC</td><td>PRIAC</td><td>PALAC</td><td>Pruco Life</td><td>Total</td><td>December 31, 2017</td></tr><tr><td></td><td colspan="7">(in billions)</td></tr><tr><td>Cash and short-term investments</td><td>$5.0</td><td>$0.9</td><td>$0.3</td><td>$4.5</td><td>$0.4</td><td>$11.1</td><td>$11.7</td></tr><tr><td>Fixed maturity investments-1:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High or highest quality</td><td>110.7</td><td>34.8</td><td>19.2</td><td>9.6</td><td>4.9</td><td>179.2</td><td>175.1</td></tr><tr><td>Other than high or highest quality</td><td>6.6</td><td>2.4</td><td>1.4</td><td>0.5</td><td>0.4</td><td>11.3</td><td>13.8</td></tr><tr><td>Subtotal</td><td>117.3</td><td>37.2</td><td>20.6</td><td>10.1</td><td>5.3</td><td>190.5</td><td>188.9</td></tr><tr><td>Public equity securities, at fair value</td><td>0.1</td><td>1.8</td><td>0.0</td><td>0.0</td><td>0.0</td><td>1.9</td><td>2.8</td></tr><tr><td>Total</td><td>$122.4</td><td>$39.9</td><td>$20.9</td><td>$14.6</td><td>$5.7</td><td>$203.5</td><td>$203.4</td></tr></table>
<table><tr><td></td><td colspan="4">December 31, 2018</td><td></td></tr><tr><td></td><td>Prudentialof Japan</td><td>GibraltarLife-1</td><td>AllOther-2</td><td>Total</td><td>December 31, 2017</td></tr><tr><td></td><td colspan="5">(in billions)</td></tr><tr><td>Cash and short-term investments</td><td>$0.7</td><td>$2.2</td><td>$1.2</td><td>$4.1</td><td>$4.2</td></tr><tr><td>Fixed maturity investments-3:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High or highest quality-4</td><td>40.0</td><td>90.2</td><td>18.9</td><td>149.1</td><td>145.2</td></tr><tr><td>Other than high or highest quality</td><td>0.8</td><td>3.6</td><td>1.8</td><td>6.2</td><td>6.0</td></tr><tr><td>Subtotal</td><td>40.8</td><td>93.8</td><td>20.7</td><td>155.3</td><td>151.2</td></tr><tr><td>Public equity securities</td><td>1.7</td><td>1.6</td><td>0.7</td><td>4.0</td><td>4.5</td></tr><tr><td>Total</td><td>$43.2</td><td>$97.6</td><td>$22.6</td><td>$163.4</td><td>$159.9</td></tr></table>

Question: What's the growth rate of the value of the total Public equity securities on December 31 in 2018?
Answer: -0.11111
Reasoning program: subtract(4.0,4.5), divide(#0,4.5)