The Containerboard Group(a Division of Tenneco Packaging Inc. )Notes to Combined Financial Statements (Continued)April 11, 19995.
PENSION AND OTHER BENEFIT PLANS (Continued)The funded status of the Group’s allocation of defined benefit plans, excluding the RetirementPlan, reconciles with amounts recognized in the 1998 statements of assets and liabilities andinterdivision account as follows (in thousands):
## Table 0 ##
The weighted average discount rate used in determining the actuarial present value of the benefitobligations was 7.00% for the year ended December 31, 1998.
The weighted average expectedlong-term rate of return on plan assets was 10% for 1998.
Middle management employees participate in a variety of incentive compensation plans.
Theseplans provide for incentive payments based on the achievement of certain targeted operating resultsand other specific business goals.
The targeted operating results are determined each year by seniormanagement of Packaging.
The amounts charged to expense for these plans were $1,599,000 for theperiod ended April 11, 1999.
In June, 1992, Tenneco initiated an Employee Stock Purchase Plan (‘‘ESPP’’).
The plan allows U. S. and Canadian employees of the Group to purchase Tenneco Inc.  common stock through payrolldeductions at a 15% discount.
Each year, an employee in the plan may purchase shares with adiscounted value not to exceed $21,250.
The weighted average fair value of the employee purchaseright, which was estimated using the Black-Scholes option pricing model and the assumptions describedbelow except that the average life of each purchase right was assumed to be 90 days, was $6.31 for theperiod ended December 31, 1998.
The ESPP was terminated as of September 30, 1996.
Tennecoadopted a new employee stock purchase plan effective April 1, 1997.
Under the respective ESPPs,Tenneco sold 36,883 shares to Group employees for the period ended April 11, 1999.
In December, 1996, Tenneco adopted the 1996 Stock Ownership Plan, which permits the grantingof a variety of awards, including common stock, restricted stock, performance units, stock appreciationrights, and stock options to officers and employees of Tenneco.
Tenneco can issue up to 17,000,000shares of common stock under this plan, which will terminate December 31, 2001.
The April 11, 1999, fair market value of the options granted was calculated using Tenneco’s stockprice at the grant date and multiplying the amount by the historical percentage of past Black-Scholespricing values fair value (approximately 25%).
The fair value of each stock option issued by Tenneco tothe Group in prior periods was estimated on the date of grant using the Black-Sholes option pricingmodel using the following ranges of weighted average assumptions for grants during the past three
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements non-U.
S.  dollar-denominated earnings in all countries for a particular year, including its interim reporting periods, are translated at fixed currency exchange rates.
The fixed rates are determined in connection with a currency hedging program designed to mitigate the risk that unfavorable rate changes will reduce the segment’s U. S.  dollar-equivalent earnings.
Pursuant to this program, the Company’s Corporate and Other operations may execute forward currency contracts with third parties to sell the net exposure of projected earnings from the hedged currency in exchange for U. S.  dollars at a specified exchange rate.
The maturities of these contracts correspond with the future periods in which the identified non-U.
S.  dollar-denominated earnings are expected to be generated.
These contracts do not qualify for hedge accounting under U. S.  GAAP, so the resulting profits or losses are recorded in “Realized investment gains (losses), net.
” When the contracts are terminated in the same period that the expected earnings emerge, the resulting positive or negative cash flow effect is included in adjusted operating income.
Current Period Yield Adjustments.
The Company uses interest rate and currency swaps and other derivatives to manage interest and currency exchange rate exposures arising from mismatches between assets and liabilities, including duration mismatches.
For derivative contracts that do not qualify for hedge accounting treatment, the periodic swap settlements, as well as certain other derivative related yield adjustments are recorded in “Realized investment gains (losses), net,” and are included in adjusted operating income to reflect the afterhedge yield of the underlying instruments.
In certain instances, when these derivative contracts are terminated or offset before their final maturity, the resulting realized gains or losses are recognized in adjusted operating income over periods that generally approximate the expected terms of the derivatives or underlying instruments in order for adjusted operating income to reflect the after-hedge yield of the underlying instruments.
Included in the amounts shown in the table above are gains on certain derivative contracts that were terminated or offset before their final maturity of $49 million, $55 million and $105 million for the years ended 2016, 2015 and 2014, respectively.
As of December 31, 2016, there was a $169 million deferred net gain related to certain derivative contracts that were terminated or offset before their final maturity, primarily in the International Insurance segment.
Also included in the amounts shown in the table above are fees related to synthetic GICs of $158 million, $158 million and $168 million for the years ended 2016, 2015 and 2014, respectively.
Synthetic GICs are accounted for as derivatives under U. S.  GAAP and, therefore, these fees are recorded in “Realized investment gains (losses), net.
” See Note 21 for additional information on synthetic GICs.
Principal Source of Earnings.
The Company conducts certain activities for which realized investment gains (losses) are a principal source of earnings for its businesses and therefore included in adjusted operating income, particularly within the Company’s Asset Management segment.
For example, Asset Management’s strategic investing business makes investments for sale or syndication to other investors or for placement or co-investment in the Company’s managed funds and structured products.
The realized investment gains (losses) associated with the sale of these strategic investments, as well as the majority of derivative results, are a principal activity for this business and included in adjusted operating income.
In addition, the realized investment gains (losses) associated with loans originated by the Company’s commercial mortgage operations, as well as related derivative results and retained mortgage servicing rights, are a principal activity for this business and included in adjusted operating income.
Other items reflected as adjustments to Realized investment gains (losses), net The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
## Table 1 ##
Other Trading Account Assets.
The Company has certain investments in its general account portfolios that are classified as trading.
These trading investments are carried at fair value and included in “Other trading account assets, at fair value” on the Company’s Consolidated Statements of Financial Position.
Realized and unrealized gains (losses) for these investments are recorded in “Other income.
” Consistent with the exclusion of realized investment gains (losses) with respect to other investments managed on a consistent basis, the net gains or losses on these investments are excluded from adjusted operating income.
Foreign Currency Exchange Movements.
The Company has certain assets and liabilities for which, under U. S.  GAAP, the changes in value, including those associated with changes in foreign currency exchange rates during the period, are recorded in “Other income.
” To the extent the foreign currency exposure on these assets and liabilities is economically hedged or considered part of the Company’s capital funding strategies for its international subsidiaries, the change in value included in “Other income” is excluded from adjusted operating income.
The amount in the table above for the year ended 2014 was largely driven by non-yen denominated insurance liabilities in the Company’s Japanese insurance operations.
The insurance liabilities are supported by investments denominated in corresponding currencies, including a significant portion designated as available-for-sale.
While these non-yen denominated assets and liabilities are economically hedged, unrealized gains (losses) on available-for-sale investments, including those arising from foreign currency exchange rate movements, are recorded in AOCI under U. S.  GAAP, while the non-yen denominated liabilities are re-measured for foreign currency exchange rate movements, with the related change in value recorded in earnings within “Other income.
” Due to this non-economic volatility that has been reflected in U. S.  GAAP earnings, the change in value recorded within “Other income” is excluded from adjusted operating income.
2015 to 2014 Annual Comparison.
Adjusted operating income increased $153 million, primarily reflecting favorable comparative net impacts from our annual reviews and updates of assumptions and other refinements.
Results for 2015 included a $28 million net benefit from these updates related to actuarial assumptions used in calculating both group disability and group life reserves and other refinements, while results for 2014 included a $107 million net charge from these updates.
Excluding the effect of these items, adjusted operating income increased $18 million primarily driven by more favorable underwriting results in our group disability business and lower expenses, partially offset by a lower contribution from net investment spread results and less favorable underwriting results in our group life business.
The favorable underwriting results for our group disability business reflected the impact of higher claim resolutions and fewer new claims for long-term contracts, while the less favorable underwriting results for our group life business reflected lower premiums due to lapsed business.
Revenues, Benefits and Expenses 2016 to 2015 Annual Comparison.
Revenues increased $200 million.
Excluding a favorable comparative impact of $42 million resulting from our annual reviews and updates of assumptions and other refinements, as discussed above, revenues increased $158 million.
The increase reflected $140 million of higher premiums and policy charges and fee income primarily driven by the increase in new business in both our group life and group disability businesses, as well as higher premiums on existing experience-rated contracts in our group life business.
Net investment income increased $21 million driven by higher prepayment income and income from non-coupon investments.
Benefits and expenses increased $156 million.
Excluding an unfavorable comparative impact of $29 million resulting from our annual review and update of assumptions and other refinements, as discussed above, benefits and expenses increased $127 million.
Policyholders’ benefits, including the change in reserves, increased $120 million, driven by the impact of new business for both our group life and group disability businesses, the impact of lower claim resolutions on long-term contracts in our group disability business, and higher benefits on existing experience-rated contracts in our group life business, partially offset by a decrease in general and administrative expenses.2015 to 2014 Annual Comparison.
Revenues decreased $214 million.
Excluding a favorable impact of $2 million resulting from our annual reviews and updates of assumptions and other refinements, as discussed above, revenues decreased $216 million.
The decrease reflected $160 million lower premiums and policy charges and fee income in both our group life and group disability businesses primarily driven by lapses resulting from continued pricing discipline on contract renewals and improved claim experience for experience-rated contracts.
Net investment income decreased $27 million driven by lower income from non-coupon investments.
Benefits and expenses decreased $367 million.
Excluding a favorable impact of $133 million resulting from our annual review and update of assumptions and other refinements, as discussed above, benefits and expenses decreased $234 million.
Policyholders’ benefits, including the change in reserves, decreased $198 million, driven by declines in both our group disability and group life businesses, reflecting fewer claims as a result of lapses.
The decline in our group disability business also reflected the impact of higher claim resolutions for long-term contracts.
The decline in our group life business also reflected improved claim experience for experience-rated contracts.
Sales Results The following table sets forth the Group Insurance segment’s annualized new business premiums, as defined under “—Segment Measures” above, for the periods indicated.
## Table 2 ##
(1) Amounts exclude new premiums resulting from rate changes on existing policies, from additional coverage under our Servicemembers’ Group Life Insurance contract and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts.2016 to 2015 Annual Comparison.
Total annualized new business premiums increased $162 million as we continued to grow through sales to new and existing clients in both our group life and group disability businesses while maintaining pricing and underwriting discipline.2015 to 2014 Annual Comparison.
Total annualized new business premiums increased $17 million primarily driven by sales to new and existing clients for our group life and group disability businesses, respectively.
International Insurance Division International Insurance Operating Results The results of our International Insurance operations are translated on the basis of weighted average monthly exchange rates, inclusive of the effects of the intercompany arrangement discussed in “—Impact of Foreign Currency Exchange Rates” above.
To provide a better
as well as all the counterparties to these agreements, are investment grade credit quality and our credit derivatives have a remaining term to maturity of thirty-one years or less.
The premium or credit spread generally corresponds to the difference between the yield on the reference name’s (or index’s underlying reference names) public fixed maturity cash instruments and swap rates at the time the agreement is executed.
Credit derivative contracts are recorded at fair value with changes in fair value, including the premiums received, recorded in “Realized investment gains (losses), net.
” As of December 31, 2016 and 2015, PFI excluding the Closed Block division had $162 million and $807 million, respectively, of notional amounts of exposure, where we have sold credit protection through credit derivatives, reported at fair value as an asset of less than $1 million and a liability of $27 million, respectively.
“Realized investment gains (losses), net” from credit derivatives we sold was a gain of $7 million and $6 million for the years ended December 31, 2016 and 2015, respectively.
This excludes a credit derivative related to surplus notes issued by a subsidiary of Prudential Insurance.
See Note 14 to the Consolidated Financial Statements for additional information regarding this derivative.
In addition to selling credit protection, we have purchased credit protection using credit derivatives in order to hedge specific credit exposures in our investment portfolio.
As of December 31, 2016 and 2015, PFI excluding the Closed Block division had $141 million and $409 million of notional amounts, respectively, reported at fair value as a liability of $4 million for both years.
“Realized investment gains (losses), net” from credit derivatives we purchased was a loss of $5 million and $9 million for the years ended December 31, 2016 and 2015, respectively.
See Note 14 to the Consolidated Financial Statements for additional information regarding credit derivatives and an overall description of our derivative activities.
OTTI of Fixed Maturity Securities We maintain separate monitoring processes for public and private fixed maturities and create watch lists to highlight securities that require special scrutiny and management.
Our public fixed maturity asset managers review all public fixed maturity holdings on a quarterly basis and more frequently when necessary to identify potential credit deterioration whether due to ratings downgrades, unexpected price variances and/or company or industry specific concerns.
For private placements, our credit and portfolio management processes help ensure prudent controls over valuation and management.
We have separate pricing and authorization processes to establish “checks and balances” for new investments.
We apply consistent standards of credit analysis and due diligence for all transactions, whether they originate through our own in-house origination staff or through agents.
Our regional offices closely monitor the portfolios in their regions.
We set all valuation standards centrally, and we assess the fair value of all investments quarterly.
Our private fixed maturity asset managers formally review all private fixed maturity holdings on a quarterly basis and more frequently when necessary to identify potential credit deterioration whether due to ratings downgrades, unexpected price variances and/or company or industry specific concerns.
For additional information regarding our policies regarding OTTI for fixed maturity securities, see Note 2 to the Consolidated Financial Statements.
OTTI of general account fixed maturity securities attributable to PFI excluding the Closed Block division that were recognized in earnings were $144 million, $97 million and $36 million for the years ended December 31, 2016, 2015 and 2014, respectively.
For a further discussion of OTTI, see “—Realized Investment Gains (Losses)” above.
Trading Account Assets Supporting Insurance Liabilities The following table sets forth the composition of the TAASIL portfolio attributable to PFI excluding the Closed Block division as of the dates indicated:
## Table 3 ##
(1) As a percentage of amortized cost, 80% and 77% of the portfolio was publicly-traded as of December 31, 2016 and 2015, respectively.
Other Trading Account Assets Other trading account assets consist primarily of certain financial instruments that contain an embedded derivative where we elected to classify the entire instrument as a trading account asset rather than bifurcate.
These instruments are carried at fair value, with realized and unrealized gains (losses) reported in “Other income” and excluded from adjusted operating income.
Interest and dividend income from these investments is reported in “Net investment income” and is included in adjusted operating income.

<table><tr><td>Vested benefit obligation</td><td>$-98,512</td></tr><tr><td>Accumulated benefit obligation</td><td>-108,716</td></tr><tr><td>Projected benefit obligation</td><td>$-108,716</td></tr><tr><td>Plan assets at fair value at September 30, 1998</td><td>146,579</td></tr><tr><td>Unrecognized transition liability</td><td>-1,092</td></tr><tr><td>Unrecognized net gain</td><td>-14,623</td></tr><tr><td>Unrecognized prior service cost</td><td>13,455</td></tr><tr><td>Prepaid pension cost at December 31, 1998</td><td>$35,603</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Net gains (losses) from:</td><td colspan="3"></td></tr><tr><td>Other trading account assets</td><td>$-95</td><td>$-94</td><td>$-21</td></tr><tr><td>Foreign currency exchange movements</td><td>$-154</td><td>$69</td><td>$-3,023</td></tr><tr><td>Other activities</td><td>$-18</td><td>$9</td><td>$13</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Annualized new business premiums-1:</td><td></td><td></td><td></td></tr><tr><td>Group life</td><td>$316</td><td>$204</td><td>$189</td></tr><tr><td>Group disability</td><td>119</td><td>69</td><td>67</td></tr><tr><td>Total</td><td>$435</td><td>$273</td><td>$256</td></tr></table>
<table><tr><td></td><td colspan="2">December 31, 2016</td><td colspan="2">December 31, 2015</td></tr><tr><td></td><td>AmortizedCost</td><td>FairValue</td><td>AmortizedCost</td><td>FairValue</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Short-term investments and cash equivalents</td><td>$655</td><td>$655</td><td>$765</td><td>$765</td></tr><tr><td>Fixed maturities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Corporate securities</td><td>13,903</td><td>13,997</td><td>12,797</td><td>12,851</td></tr><tr><td>Commercial mortgage-backed securities</td><td>2,032</td><td>2,052</td><td>1,860</td><td>1,862</td></tr><tr><td>Residential mortgage-backed securities</td><td>1,142</td><td>1,150</td><td>1,411</td><td>1,428</td></tr><tr><td>Asset-backed securities</td><td>1,333</td><td>1,349</td><td>1,295</td><td>1,299</td></tr><tr><td>Foreign government bonds</td><td>915</td><td>926</td><td>680</td><td>694</td></tr><tr><td>U.S. government authorities and agencies and obligations of U.S. states</td><td>330</td><td>376</td><td>326</td><td>369</td></tr><tr><td>Total fixed maturities</td><td>19,655</td><td>19,850</td><td>18,369</td><td>18,503</td></tr><tr><td>Equity securities</td><td>1,097</td><td>1,335</td><td>1,030</td><td>1,254</td></tr><tr><td>Total trading account assets supporting insurance liabilities-1</td><td>$21,407</td><td>$21,840</td><td>$20,164</td><td>$20,522</td></tr></table>

Question: What's the 10% of total Fixed maturities for fair value in 2016? (in million)
Answer: 1985