The following table sets forth Selected Consolidated Financial Information for the Company. The Selected Consolidated Financial Information as of and for the years ended December 31, 2000, 1999 and 1998 is different, as discussed in Note 1 below, from that presented in the Company’s audited consolidated financial statements contained elsewhere herein. The Selected Consolidated Financial Information as of and for the years ended December 31, 1997 and 1996 has been derived from audited financial statements. The selected consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, the Company’s consolidated financial statements and the notes thereto and the other financial information included elsewhere herein.
Includes writedowns for impairment and net changes in valuation 	allowances on real estate, mortgage loans and investment 	securities aggregating $5.9 million, $23.5 million, $24.4 	million, $76.0 million, and $20.1 million for the years ended 	December 31, 2000, 1999, 1998, 1997, and 1996, respectively.
all assets and liabilities allocated to the Closed Block are 	reported separately in the Company’s balance sheet under 	the captions “Closed Block assets” and “Closed 	Block liabilities”, respectively, whereas prior to the 	establishment of the Closed Block such assets and liabilities 	were reported in various line items in the Company’s 	balance sheet, including fixed maturity securities, mortgage 	loans on real estate, policy loans, deferred policy acquisition 	costs, etc.
revenues and expenses reported in the income statement for the 	year ended December 31, 1998 represent all revenues and 	associated expenses earned or incurred during such period; 	however, in accordance with generally accepted accounting 	principles, actual “basic” and “diluted” per 	share amounts are presented only for periods subsequent to the 	effective date of the Plan (see Notes 4 and 21 to the 	Consolidated Financial Statements).
The following tables present the Company’s consolidated and segment results of operations for the years ended December 31, 2000, 1999 and 1998. For comparability with prior periods, the results of operations of the Closed Block for the year ended December 31, 2000, 1999, and the period from November 16, 1998 (the date of the formation of the Closed Block) to December 31, 1998 have been combined on a line by line basis with the results of operations outside the Closed Block. In all other respects the financial information herein is presented in accordance with GAAP unless otherwise noted. Management’s Discussion and Analysis, which follows this table, discusses the Company’s results of operations on the aforementioned combined basis unless otherwise noted.
Amount presented for 2000 and 1999 are net of approximately 	$1,005 million and $727 million; respectively of exchanges to 	new product series.
$115.0 million face amount 9.5% coupon surplus notes, and $123.0 million face amount of its $125.0 million face amount 11.25% coupon surplus notes that were outstanding at December 31, 1999.
The combined cash flow from operations for 1999, including the Closed Block, was $145.7 million as compared to $164.0 million for 1998, a decrease of $18.3 million. The decrease was primarily due to higher operating expenses, higher benefit payments, and lower payments from the Group Pension Transaction, offset by lower federal income tax payments. The Company’s liquid assets include substantial U.S. treasury holdings, short-term money market investments and marketable long-term fixed maturity securities. Management believes that the Company’s sources of liquidity are adequate to meet its anticipated needs.
As of December 31, 2000 the fair value of the Company’s problem, potential problem and restructured fixed maturities was $54.1 million, $6.6 million and $0.0 million, respectively, which, in the aggregate, represented approximately 0.9% of total fixed maturities. As of December 31, 1999 the fair value of the Company’s problem, potential problem and restructured fixed maturities was $45.9 million, $32.8 million and $0.0 million, respectively, which, in the aggregate, represented approximately 1.2% of total fixed maturities.
Includes impairment writedowns recorded prior to the adoption of 	SFAS No. 114, Accounting by Creditors for Impairment of a Loan, 	of $11.1 million and $26.3 million at December 31, 2000 and 	1999.
Equity real estate is evenly distributed across geographic regions of the country with a slightly larger concentration in the mountain region of the United States at December 31, 2000. By property type, there is a concentration in hotels which