PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value.
The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position.
In some cases, as described below, the carrying amount equals or approximates fair value.
## Table 0 ##
December 31, 2017(1)
## Table 1 ##
(1) The information presented as of December 31, 2017, excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient.
The fair value and the carrying
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements A valuation allowance has been recorded against deferred tax assets related to state and local taxes and foreign operations.
Adjustments to the valuation allowance are made to reflect changes in management’s assessment of the amount of the deferred tax asset that is realizable and the amount of deferred tax asset actually realized during the year.
The valuation allowance includes amounts recorded in connection with deferred tax assets as follows:
## Table 2 ##
The following table sets forth the amount and expiration dates of federal, state and foreign operating losses, capital loss and tax credit carryforwards for tax purposes, as of the periods indicated:
## Table 3 ##
(1) Expires between 2019 and 2038.
(2) $17 million expires between 2021 and 2035 and $35 million has an unlimited carryforward.
Consistent with the Tax Act of 2017, the Company provides applicable U. S.  income tax for all unremitted earnings of the Company’s foreign affiliates.
For certain foreign affiliates organized in withholding tax jurisdictions, the Company considers the unremitted foreign earnings of those affiliates to be indefinitely reinvested, and therefore does not provide for the withholding tax when calculating its current and deferred tax obligations.
For certain other foreign affiliates organized in withholding tax jurisdictions, the Company does not consider unremitted earnings indefinitely reinvested, and therefore provides for foreign withholding tax when calculating its current and deferred tax obligations.
The following table summarizes the Company’s indefinite reinvestment assertions for jurisdictions in which the Company operates that impose a withholding tax on dividends or may be subject to other foreign country tax upon a remittance: Unremitted earnings are indefinitely reinvested Unremitted earnings are not indefinitely reinvested Insurance operations in Chile, China, and Taiwan and non-insurance operations in Korea and certain operations in Luxembourg Insurance operations in Argentina, Indonesia, Italy, Ghana, and Poland, and non-insurance operations in China, Italy and Taiwan, as well as partially for the insurance operation in Korea During the fourth quarter of 2017, in light of and for the period after the Tax Act of 2017, the Company determined that all unremitted earnings of the Company’s foreign operations are not considered indefinitely reinvested for purposes of determining U. S.  tax liability, as well as determining whether the unremitted earnings of the Company’s foreign operations are considered indefinitely reinvested for purposes of determining its foreign withholding tax liability, as described above.
Prior to the enactment of the Tax Act of 2017, for the Japanese insurance operations, the Company provided for U. S.  income taxes on pre-2014 U. S.  GAAP earnings, post-2013 realized and unrealized capital gains, and an additional amount from Gibraltar Life and Prudential Gibraltar Financial Life Insurance Co.  Ltd.  (“PGFL”), not to exceed the deferred tax asset recorded in the Statement of Financial Position as of the acquisition date for PGFL and the Star and Edison Businesses.
The Company had no change to its U. S.  tax in “Income (loss) before equity in earnings of operating joint ventures” during 2017.
During the first and second quarters of 2018, respectively, the Company determined that the earnings of its Polish and Italian insurance operation would be repatriated to the U. S.  Accordingly, earnings of the Polish and Italian insurance operations were not considered indefinitely reinvested, and the Company recognized an income tax expense of $10 million during 2018.
During the first and fourth quarters of 2018, the Company determined that a portion of the earnings of its Korean insurance operation would be repatriated to the U. S.  Accordingly, a portion of the earnings of the Korean insurance operation were not considered indefinitely reinvested, and the Company recognized an income tax expense of $14 million in “Income (loss) before equity in earnings of operating joint ventures” during 2018.
increase in dividends paid.
Free cash flow is defined as cash provided by operating activities less cash used in investing activities and dividends paid.
Free cash flow is not considered a financial measure under accounting principles generally accepted in the U. S.  (GAAP) by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner.
We believe free cash flow is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financings.
Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):

<table><tr><td></td><td colspan="5">December 31, 2018-1</td></tr><tr><td></td><td colspan="4">Fair Value</td><td>CarryingAmount-2</td></tr><tr><td></td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total</td><td>Total</td></tr><tr><td></td><td colspan="5">(in millions)</td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities, held-to-maturity-3</td><td>$0</td><td>$1,468</td><td>$904</td><td>$2,372</td><td>$2,013</td></tr><tr><td>Assets supporting experience-rated contractholder liabilities</td><td>0</td><td>0</td><td>0</td><td>0</td><td>0</td></tr><tr><td>Commercial mortgage and other loans</td><td>0</td><td>109</td><td>59,106</td><td>59,215</td><td>59,067</td></tr><tr><td>Policy loans</td><td>0</td><td>0</td><td>12,016</td><td>12,016</td><td>12,016</td></tr><tr><td>Other invested assets</td><td>0</td><td>40</td><td>0</td><td>40</td><td>40</td></tr><tr><td>Short-term investments</td><td>951</td><td>25</td><td>0</td><td>976</td><td>976</td></tr><tr><td>Cash and cash equivalents</td><td>4,871</td><td>1,004</td><td>0</td><td>5,875</td><td>5,875</td></tr><tr><td>Accrued investment income</td><td>0</td><td>3,318</td><td>0</td><td>3,318</td><td>3,318</td></tr><tr><td>Other assets</td><td>141</td><td>2,189</td><td>483</td><td>2,813</td><td>2,813</td></tr><tr><td>Total assets</td><td>$5,963</td><td>$8,153</td><td>$72,509</td><td>$86,625</td><td>$86,118</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholders’ account balances—investment contracts</td><td>$0</td><td>$31,422</td><td>$67,006</td><td>$98,428</td><td>$99,829</td></tr><tr><td>Securities sold under agreements to repurchase</td><td>0</td><td>9,950</td><td>0</td><td>9,950</td><td>9,950</td></tr><tr><td>Cash collateral for loaned securities</td><td>0</td><td>3,929</td><td>0</td><td>3,929</td><td>3,929</td></tr><tr><td>Short-term debt</td><td>0</td><td>1,854</td><td>658</td><td>2,512</td><td>2,451</td></tr><tr><td>Long-term debt-5</td><td>1,734</td><td>15,057</td><td>1,181</td><td>17,972</td><td>17,378</td></tr><tr><td>Notes issued by consolidated VIEs</td><td>0</td><td>0</td><td>360</td><td>360</td><td>360</td></tr><tr><td>Other liabilities</td><td>0</td><td>6,338</td><td>510</td><td>6,848</td><td>6,848</td></tr><tr><td>Separate account liabilities—investment contracts</td><td>0</td><td>66,914</td><td>26,022</td><td>92,936</td><td>92,936</td></tr><tr><td>Total liabilities</td><td>$1,734</td><td>$135,464</td><td>$95,737</td><td>$232,935</td><td>$233,681</td></tr></table>
<table><tr><td></td><td colspan="5">December 31, 2017-1</td></tr><tr><td></td><td colspan="4">Fair Value</td><td>CarryingAmount-2</td></tr><tr><td></td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total</td><td>Total</td></tr><tr><td></td><td colspan="5">(in millions)</td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities, held-to-maturity-3</td><td>$0</td><td>$1,484</td><td>$946</td><td>$2,430</td><td>$2,049</td></tr><tr><td>Assets supporting experience-rated contractholder liabilities-4</td><td>58</td><td>51</td><td>0</td><td>109</td><td>109</td></tr><tr><td>Commercial mortgage and other loans</td><td>0</td><td>129</td><td>56,619</td><td>56,748</td><td>55,452</td></tr><tr><td>Policy loans</td><td>1</td><td>0</td><td>11,890</td><td>11,891</td><td>11,891</td></tr><tr><td>Short-term investments</td><td>989</td><td>22</td><td>0</td><td>1,011</td><td>1,011</td></tr><tr><td>Cash and cash equivalents</td><td>5,997</td><td>195</td><td>0</td><td>6,192</td><td>6,192</td></tr><tr><td>Accrued investment income</td><td>0</td><td>3,325</td><td>0</td><td>3,325</td><td>3,325</td></tr><tr><td>Other assets</td><td>45</td><td>2,385</td><td>685</td><td>3,115</td><td>3,115</td></tr><tr><td>Total assets</td><td>$7,090</td><td>$7,591</td><td>$70,140</td><td>$84,821</td><td>$83,144</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholders’ account balances—investment contracts</td><td>$0</td><td>$33,045</td><td>$67,141</td><td>$100,186</td><td>$99,948</td></tr><tr><td>Securities sold under agreements to repurchase</td><td>0</td><td>8,400</td><td>0</td><td>8,400</td><td>8,400</td></tr><tr><td>Cash collateral for loaned securities</td><td>0</td><td>4,354</td><td>0</td><td>4,354</td><td>4,354</td></tr><tr><td>Short-term debt</td><td>0</td><td>1,384</td><td>0</td><td>1,384</td><td>1,380</td></tr><tr><td>Long-term debt-5</td><td>1,296</td><td>16,369</td><td>2,095</td><td>19,760</td><td>17,172</td></tr><tr><td>Notes issued by consolidated VIEs</td><td>0</td><td>0</td><td>322</td><td>322</td><td>322</td></tr><tr><td>Other liabilities</td><td>0</td><td>6,002</td><td>715</td><td>6,717</td><td>6,717</td></tr><tr><td>Separate account liabilities—investment contracts</td><td>0</td><td>71,336</td><td>30,490</td><td>101,826</td><td>101,826</td></tr><tr><td>Total liabilities</td><td>$1,296</td><td>$140,890</td><td>$100,763</td><td>$242,949</td><td>$240,119</td></tr></table>
<table><tr><td></td><td>State</td><td>Foreign Operations</td><td>Total</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Balance at January 1, 2016</td><td>$99</td><td>$34</td><td>$133</td></tr><tr><td>Charged to costs and expenses</td><td>74</td><td>-6</td><td>68</td></tr><tr><td>Other adjustments</td><td>-35</td><td>-3</td><td>-38</td></tr><tr><td>Balance at December 31, 2016</td><td>138</td><td>25</td><td>163</td></tr><tr><td>Charged to costs and expenses</td><td>63</td><td>3</td><td>66</td></tr><tr><td>Other adjustments</td><td>-5</td><td>-10</td><td>-15</td></tr><tr><td>Balance at December 31, 2017</td><td>196</td><td>18</td><td>214</td></tr><tr><td>Charged to costs and expenses</td><td>24</td><td>-6</td><td>18</td></tr><tr><td>Other adjustments</td><td>-114</td><td>-1</td><td>-115</td></tr><tr><td>Balance at December 31, 2018</td><td>$106</td><td>$11</td><td>$117</td></tr></table>
<table><tr><td></td><td colspan="2">As of December 31,</td></tr><tr><td></td><td>2018</td><td>2017</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Federal net operating and capital loss carryforwards</td><td>$0</td><td>$0</td></tr><tr><td>State net operating and capital loss carryforwards-1</td><td>$2,152</td><td>$5,806</td></tr><tr><td>Foreign operating loss carryforwards-2</td><td>$52</td><td>$58</td></tr></table>

Question: What do all Level 1 sum up in 2017 for Fair Value for December 31, 2017-1, excluding Assets supporting experience-rated contractholder liabilities-4 and Short-term investments? (in million)
Answer: 7339