Operating revenues--A summary by segment of the Company's operating revenues is as follows:
Investment and other income--Investment and other income increased $4.8 million in 2000 over 1999 and decreased $24.8 million in 1999 from 1998. The increase in 2000 over 1999 was primarily due to a 4.6% increase in the average investment portfolio balance, investment gains totaling $5.7 million relating to the joint venture agreements with LandAmerica Financial Group, Inc, and Transamerica Corporation (see Note 18 to the consolidated financial statements) and $2.5 million of interest income contributed by a new acquisition in the United Kingdom, offset in part by a $4.3 million realized investment loss and reduced equity in earnings of unconsolidated affiliates. The decrease in 1999 from 1998 was primarily due to an investment gain of $32.4 million recognized in 1998 relating to the joint venture agreement with Experian, offset in part, in 1999, by a 24.8% increase in the average investment portfolio balance and a $5.2 million gain resulting from stock received in the demutualization of a life insurance company, which insures a large portion of the Company's corporate-owned life insurance portfolio. See Note 9 to the consolidated financial statements for additional information.
Real estate information other operating expenses decreased 3.5% in 2000 from 1999 and 5.2% in 1999 from 1998. These decreases were primarily due to a reduction in costs resulting from the Company's cost-containment programs, offset in part by $15.5 million and $6.9 million of costs associated with new acquisitions for 2000 and 1999, respectively, and for 1999, Y2K expenses of $19.0 million.
Notes and contracts payable, as a percentage of total capitalization, was 16.9% as of December 31, 2000, as compared with 16.4% as of the prior year end. This increase was primarily attributable to debt incurred in connection with company acquisitions, offset, in part, by an increase in the capital base primarily due to the net income for the period. Notes and contracts payable are more fully described in Note 8 to the consolidated financial statements.
The carrying value of the passbook accounts approximates fair value due to the short-term nature of this liability. The fair value of investment certificate accounts was $69.9 million and $69.5 million at December 31, 2000 and 1999, respectively, and was estimated based on the discounted value of future cash flows using a discount rate approximating current market for similar liabilities.
The fair value of notes and contracts payable was $223.8 million and $195.7 million at December 31, 2000 and 1999, respectively, and was estimated based on the current rates offered to the Company for debt of the same remaining maturities. The weighted-average interest rate for the Company's notes and contracts payable was 8.0% and 7.5% at December 31, 2000 and 1999, respectively.
The rate of increase in future compensation levels for the plans of 4.5% and the weighted-average discount rate of 7.5% were used in determining the actuarial present value of the projected benefit obligation at December 31,
The Company's principal profit sharing plan was amended effective January 1, 1995, to discontinue future contributions. The plan holds 5,393,000 and 5,799,000 shares of the Company's common stock, representing 8.4% and 9.0% of the total shares outstanding at December 31, 2000 and 1999, respectively.
Total rental expense for all operating leases and month-to-month rentals was $144.7 million, $126.3 million, and $110.3 million for the years ended December 31, 2000, 1999 and 1998, respectively.
On July 31, 2000, the Company combined its Smart Title Solutions(TM) division, which it acquired in the 1998 business combination transaction with Experian, with the Datatrace division of LandAmerica Financial Group, Inc. The combined entity, Data Trace Information Services, is a provider of advanced title information delivery systems. The Company treated this transaction as an acquisition of the assets and liabilities of the Datatrace division in consideration for a 20% interest in its Smart Title Solutions division. The operating results of the combined entity are included in the Company's consolidated financial statements commencing July 31, 2000.
On August 2, 2000, the Company combined its First American Real Estate Solutions (RES) division, which it acquired in the 1998 business combination transaction with Experian, with the Intellitech real estate information business of Transamerica Corporation, to form a new entity, First American Real Estate Solutions, L.P. This joint venture, is a provider of property characteristic information, supplying data and decision-support products to the real estate and mortgage finance industries. The Company treated this transaction as an acquisition of the assets and liabilities of the Intellitech division in consideration for a 20% interest in its RES division and $22.5 million in cash. The operating results of the joint venture are included in the Company's consolidated financial statement commencing August 2, 2000.
Note D--Amount represents elimination of reserve in connection with disposition and/or revaluation of the related asset.