Item 2: Properties Information concerning Applied’s principal properties at October 28, 2012 is set forth below:
## Table 0 ##
Because of the interrelation of Applied’s operations, properties within a country may be shared by the segments operating within that country.
Products in the Silicon Systems Group are manufactured in Austin, Texas; Gloucester, Massachusetts; Rehovot, Israel; and Singapore.
Remanufactured products in the Applied Global Services segment are produced primarily in Austin, Texas.
Products in the Display segment are manufactured in Santa Clara, California; Alzenau, Germany; and Tainan, Taiwan.
Products in the Energy and Environmental Solutions segment are primarily manufactured in Alzenau, Germany; Cheseaux, Switzerland; and Treviso, Italy.
In addition to the above properties, Applied leases office space for marketing, sales, engineering and customer support offices in 79 locations throughout the world: 17 in Europe, 23 in Japan, 16 in North America (principally the United States), 7 in China, 7 in Korea, 6 in Southeast Asia, and 3 in Taiwan.
Applied also owns 112 acres of buildable land in Texas that could accommodate approximately 1,708,000 square feet of additional building space, 12.5 acres in California that could accommodate approximately 400,000 square feet of additional building space, 10.8 acres in Massachusetts that could accommodate approximately 65,000 square feet of additional building space and 10 acres in Israel that could accommodate approximately 111,000 square feet of additional building space.
Applied also leases 4 acres in Italy that could accommodate approximately 180,000 square feet of additional building space.
Applied considers the properties that it owns or leases as adequate to meet its current and future requirements.
Applied regularly assesses the size, capability and location of its global infrastructure and periodically makes adjustments based on these assessments.
Financial Services The Company’s exposure to the financial services sector is predominantly through banking and insurance institutions.
The following table presents the Company’s exposure to the financial services sector included in the Securities by Type table above.
## Table 1 ##
Domestic financial companies continued to stabilize throughout 2011 due to improved earnings performance, strengthening of asset quality and capital retention.
However, spread volatility remains high due to concerns around European sovereign risks and potential contagion, regulatory pressures and a weaker U. S.  macroeconomic environment.
Financial institutions remain vulnerable to these concerns, as well as ongoing stress in the real estate markets which could adversely impact the Company’s net unrealized position.
Included in the table above as of December 31, 2011, is an amortized cost and fair value of $1.3 billion and $1.2 billion, respectively, related to European investment exposure, of which only $20 and $19, respectively, relates to GIIPS.
As of December 31, 2010, amortized cost and fair value includes $1.8 billion and $1.7 billion, respectively, of European exposure, of which only $75 and $66, respectively, relates to GIIPS.
Commercial Real Estate The commercial real estate market continued to show signs of improving fundamentals, such as increases in transaction activities, more readily available financing and new issuances.
While delinquencies still remain at historically high levels, they are expected to move lower in 2012.
The following table presents the Company’s exposure to commercial mortgage backed-securities (“CMBS”) bonds by current credit quality and vintage year, included in the Securities by Type table above.
Credit protection represents the current weighted average percentage of the outstanding capital structure subordinated to the Company’s investment holding that is available to absorb losses before the security incurs the first dollar loss of principal and excludes any equity interest or property value in excess of outstanding debt.
CMBS – Bonds [1] December 31, 2011
## Table 2 ##
THE HARTFORD FINANCIAL SERVICES GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F-30 5.
Investments and Derivative Instruments Significant Investment Accounting Policies Overview The Company’s investments in fixed maturities include bonds, redeemable preferred stock and commercial paper.
These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are classified as AFS and are carried at fair value.
The after-tax difference from cost or amortized cost is reflected in stockholders’ equity as a component of Other Comprehensive Income (Loss) (“OCI”), after adjustments for the effect of deducting the life and pension policyholders’ share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments.
Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value.
The equity investments associated with the variable annuity products offered in Japan are recorded at fair value and are classified as trading with changes in fair value recorded in net investment income.
Policy loans are carried at outstanding balance.
Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances.
Short-term investments are carried at amortized cost, which approximates fair value.
Limited partnerships and other alternative investments are reported at their carrying value with the change in carrying value accounted for under the equity method and accordingly the Company’s share of earnings are included in net investment income.
Recognition of limited partnerships and other alternative investment income is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds are on a one-month delay.
Accordingly, income for the years ended December 31, 2011, 2010 and 2009 may not include the full impact of current year changes in valuation of the underlying assets and liabilities, which are generally obtained from the limited partnerships and other alternative investments’ general partners.
Other investments primarily consist of derivatives instruments which are carried at fair value.
Recognition and Presentation of Other-Than-Temporary Impairments The Company deems debt securities and certain equity securities with debt-like characteristics (collectively “debt securities”) to be other-than-temporarily impaired (“impaired”) if a security meets the following conditions: a) the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security.
If the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security.
For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the security’s amortized cost basis and the fair value is separated into the portion representing a credit other-than-temporary impairment (“impairment”), which is recorded in net realized capital losses, and the remaining impairment, which is recorded in OCI.
Generally, the Company determines a security's credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the security’s effective yield prior to impairment.
The remaining non-credit impairment, which is recorded in OCI, is the difference between the security’s fair value and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment, which typically represents current market liquidity and risk premiums.
The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the security’s new cost basis.
The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary.
The following table presents the change in non-credit impairments recognized in OCI as disclosed in the Company’s Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2011 and 2010, respectively.
## Table 3 ##
THE HARTFORD FINANCIAL SERVICES GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) F-34 5.
Investments and Derivative Instruments (continued) Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.
When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings.
When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings.
In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item.
Embedded Derivatives The Company purchases and issues financial instruments and products that contain embedded derivative instruments.
When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes.
The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses.
Credit Risk Credit risk is measured as the amount owed to the Company based on current market conditions and potential payment obligations between the Company and its counterparties.
For each legal entity of the Company, credit exposures are generally quantified daily based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of derivatives exceeds the contractual thresholds for every counterparty.
For the company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single level entity is generally $10.
The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management.
In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations.
The Company generally requires that derivative contracts, other than exchange traded contracts, certain forward contracts, and certain embedded and reinsurance derivatives, be governed by an International Swaps and Derivatives Association Master Agreement which is structured by legal entity and by counterparty and permits right of offset.
Net Investment Income (Loss)
## Table 4 ##
The net unrealized gain (loss) on equity securities, trading, included in net investment income during the years ended December 31, 2011, 2010 and 2009, was ($1.3) billion, ($68) and $3.4 billion, respectively, substantially all of which have corresponding amounts credited to policyholders.
These amounts were not included in gross unrealized gains (losses).
## Table 5 ##
[1] Represents servicing revenues.

<table><tr><td>Location</td><td>Type</td><td>Principal Use</td><td>SquareFootage</td><td>Ownership</td></tr><tr><td>Santa Clara, CA</td><td>Office, Plant & Warehouse</td><td>Headquarters; Marketing; Manufacturing; Distribution; Research, Development,Engineering; Customer Support</td><td>1,512,000150,000</td><td>OwnedLeased</td></tr><tr><td>Austin, TX</td><td>Office, Plant & Warehouse</td><td>Manufacturing</td><td>1,719,000145,000</td><td>OwnedLeased</td></tr><tr><td>Rehovot, Israel</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development, Engineering;Customer Support</td><td>417,0005,000</td><td>OwnedLeased</td></tr><tr><td>Alzenau, Germany</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development andEngineering</td><td>281,000</td><td>Leased</td></tr><tr><td>Kalispell, MT</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development, Engineering;Customer Support</td><td>252,000</td><td>Owned</td></tr><tr><td>Cheseaux, Switzerland</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development, Engineering;Customer Support</td><td>165,000</td><td>Leased</td></tr><tr><td>Treviso, Italy</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development, Engineering;Customer Support</td><td>150,000</td><td>Leased</td></tr><tr><td>Singapore</td><td>Office, Plant & Warehouse</td><td>Manufacturing andCustomer Support</td><td>392,0005,000</td><td>OwnedLeased</td></tr><tr><td>Gloucester, MA</td><td>Office, Plant & Warehouse</td><td>Manufacturing; Research,Development, Engineering;Customer Support</td><td>319,000135,000</td><td>OwnedLeased</td></tr><tr><td>Tainan, Taiwan</td><td>Office, Plant & Warehouse</td><td>Manufacturing andCustomer Support</td><td>320,000</td><td>Owned</td></tr><tr><td>Xi’an, China</td><td>Office, Plant & Warehouse</td><td>Research, Development andEngineering</td><td>567,000</td><td>Owned</td></tr><tr><td>Hsinchu, Taiwan</td><td>Office & Warehouse</td><td>Customer Support</td><td>93,0006,000</td><td>OwnedLeased</td></tr><tr><td>Shanghai, China</td><td>Office & Warehouse</td><td>Customer Support</td><td>105,000</td><td>Leased</td></tr></table>
<table><tr><td></td><td colspan="3">December 31, 2011</td><td colspan="3">December 31, 2010</td></tr><tr><td></td><td> Amortized  Cost</td><td> Fair Value</td><td>Net Unrealized</td><td> Amortized  Cost</td><td> Fair Value</td><td>Net Unrealized</td></tr><tr><td>AAA</td><td>$240</td><td>$245</td><td>$5</td><td>$302</td><td>$309</td><td>$7</td></tr><tr><td>AA</td><td>1,698</td><td>1,675</td><td>-23</td><td>2,085</td><td>2,095</td><td>10</td></tr><tr><td>A</td><td>3,664</td><td>3,685</td><td>21</td><td>3,760</td><td>3,599</td><td>-161</td></tr><tr><td>BBB</td><td>2,335</td><td>1,998</td><td>-337</td><td>1,677</td><td>1,518</td><td>-159</td></tr><tr><td>BB & below</td><td>305</td><td>270</td><td>-35</td><td>290</td><td>253</td><td>-37</td></tr><tr><td> Total</td><td>$8,242</td><td>$7,873</td><td>$-369</td><td>$8,114</td><td>$7,774</td><td>$-340</td></tr></table>
<table><tr><td></td><td colspan="2">AAA</td><td colspan="2">AA</td><td colspan="2">A</td><td colspan="2">BBB</td><td colspan="2">BB and Below</td><td colspan="2"> Total</td></tr><tr><td></td><td> Amortized  Cost</td><td>Fair Value</td><td> Amortized  Cost</td><td>Fair Value</td><td> Amortized  Cost</td><td>Fair Value</td><td> Amortized  Cost</td><td>Fair Value</td><td> Amortized  Cost</td><td>Fair Value</td><td> Amortized  Cost</td><td> Fair  Value</td></tr><tr><td>2003 & Prior</td><td>$408</td><td>$415</td><td>$148</td><td>$144</td><td>$83</td><td>$81</td><td>$16</td><td>$13</td><td>$33</td><td>$30</td><td>$688</td><td>$683</td></tr><tr><td>2004</td><td>333</td><td>349</td><td>68</td><td>75</td><td>45</td><td>41</td><td>30</td><td>28</td><td>26</td><td>21</td><td>502</td><td>514</td></tr><tr><td>2005</td><td>520</td><td>556</td><td>101</td><td>96</td><td>178</td><td>151</td><td>177</td><td>138</td><td>71</td><td>57</td><td>1,047</td><td>998</td></tr><tr><td>2006</td><td>713</td><td>762</td><td>516</td><td>493</td><td>180</td><td>159</td><td>362</td><td>298</td><td>430</td><td>302</td><td>2,201</td><td>2,014</td></tr><tr><td>2007</td><td>245</td><td>267</td><td>296</td><td>275</td><td>123</td><td>97</td><td>166</td><td>130</td><td>195</td><td>149</td><td>1,025</td><td>918</td></tr><tr><td>2008</td><td>55</td><td>60</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>55</td><td>60</td></tr><tr><td>2009</td><td>28</td><td>29</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>28</td><td>29</td></tr><tr><td>2010</td><td>29</td><td>31</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>29</td><td>31</td></tr><tr><td>2011</td><td>417</td><td>440</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>417</td><td>440</td></tr><tr><td> Total</td><td>$2,748</td><td>$2,909</td><td>$1,129</td><td>$1,083</td><td>$609</td><td>$529</td><td>$751</td><td>$607</td><td>$755</td><td>$559</td><td>$5,992</td><td>$5,687</td></tr><tr><td>Credit protection</td><td></td><td>27.3%</td><td></td><td>22.7%</td><td></td><td>19.7%</td><td></td><td>13.8%</td><td></td><td>8.2%</td><td></td><td>21.6%</td></tr></table>
<table><tr><td></td><td colspan="3">For the years ended December 31,</td></tr><tr><td></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>OTTI losses recognized in OCI</td><td>$-89</td><td>$-418</td><td>$-683</td></tr><tr><td>Changes in fair value and/or sales</td><td>112</td><td>647</td><td>244</td></tr><tr><td>Tax and deferred acquisition costs</td><td>-14</td><td>-113</td><td>215</td></tr><tr><td> Change in non-credit impairments recognized in OCI</td><td>$9</td><td>$116</td><td>$-224</td></tr></table>
<table><tr><td></td><td colspan="3">For the years ended December 31,</td></tr><tr><td><i>(Before-tax)</i></td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Fixed maturities</td><td>$3,396</td><td>$3,489</td><td>$3,617</td></tr><tr><td>Equity securities, AFS</td><td>36</td><td>53</td><td>93</td></tr><tr><td>Mortgage loans</td><td>281</td><td>260</td><td>307</td></tr><tr><td>Policy loans</td><td>131</td><td>132</td><td>139</td></tr><tr><td>Limited partnerships and other alternative investments</td><td>243</td><td>216</td><td>-341</td></tr><tr><td>Other investments</td><td>301</td><td>329</td><td>314</td></tr><tr><td>Investment expenses</td><td>-116</td><td>-115</td><td>-112</td></tr><tr><td> Total securities AFS and other</td><td>4,272</td><td>4,364</td><td>4,017</td></tr><tr><td>Equity securities, trading</td><td>-1,359</td><td>-774</td><td>3,188</td></tr><tr><td> Total net investment income (loss)</td><td>$2,913</td><td>$3,590</td><td>$7,205</td></tr></table>
<table><tr><td> Ratios and Supplemental Data</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Loss and loss adjustment expense ratio</td><td></td><td></td><td></td></tr><tr><td>Current accident year before catastrophes</td><td>67.7</td><td>69.4</td><td>68.4</td></tr><tr><td>Current accident year catastrophes</td><td>11.3</td><td>7.6</td><td>5.8</td></tr><tr><td>Prior accident years</td><td>-2.0</td><td>-2.2</td><td>-0.8</td></tr><tr><td>Total loss and loss adjustment expense ratio</td><td>77.0</td><td>74.8</td><td>73.3</td></tr><tr><td>Expense ratio</td><td>24.5</td><td>24.2</td><td>23.9</td></tr><tr><td>Combined ratio</td><td>101.5</td><td>99.0</td><td>97.2</td></tr><tr><td>Catastrophe ratio</td><td></td><td></td><td></td></tr><tr><td>Current accident year</td><td>11.3</td><td>7.6</td><td>5.8</td></tr><tr><td>Prior accident years</td><td>0.7</td><td>0.3</td><td>0.1</td></tr><tr><td>Total catastrophe ratio</td><td>12.0</td><td>7.8</td><td>5.9</td></tr><tr><td>Combined ratio before catastrophes</td><td>89.5</td><td>91.2</td><td>91.3</td></tr><tr><td>Combined ratio before catastrophes and prior accident years development</td><td>92.2</td><td>93.6</td><td>92.3</td></tr><tr><td>Other revenues [1]</td><td>$156</td><td>$172</td><td>$154</td></tr></table>

Question: What's the average of Kalispell, MT of SquareFootage 1,512,000150,000, and A of December 31, 2010 Amortized Cost ?
Answer: 127880