Question: what percent did the balance increase from the beginning of 2016 to the end of 2017?

def solution():
    # Define variables name and value
    ending_balance = 219
    beginning_balance = 143

    # Do math calculation to get the answer
    answer = ((ending_balance / beginning_balance) - 1) * 100

    return answer

(1) Includes separate account assets that are segregated funds held for purposes of funding individual and group pension contracts and collateral held under securities lending agreements related to these assets that have equal and offsetting amounts recorded in liabilities and ultimately do not impact BlackRock’s stockholders’ equity or cash flows.

(2) Equal and offsetting amounts, related to separate account assets and collateral held under securities lending agreements, are recorded in liabilities.

(3) Amounts include assets held by consolidated sponsored investment products.

During 2015, the Company adopted new accounting guidance on consolidations effective January 1, 2015 using the modified retrospective method.

As a result of the adoption, the Company’s balance sheet at December 31, 2015 reflects the deconsolidation of the Company’s previously consolidated collateralized loan obligations.

(4) Amounts include commodity iShares ETFs.

(5) Advisory AUM represents long-term portfolio liquidation assignments.

(1) See Non-GAAP Financial Measures for further information on and reconciliation of as adjusted items.

(2) Net of net income (loss) attributable to NCI.

(3) GAAP income tax expense and effective tax rate for 2017 reflects $1.2 billion of a net tax benefit related to the 2017 Tax Act.

The Company’s tax rate is affected by tax rates in foreign jurisdictions and the relative amount of income earned in those jurisdictions, which the Company expects to be fairly consistent in the near term.

The significant foreign jurisdictions that have lower statutory tax rates than the U. S.  federal statutory rate of 35% include the United Kingdom, Channel Islands, Ireland and Netherlands.2017.

the following amounts related to the 2017 Tax Act: ?

$106 million tax expense related to the revaluation of certain deferred income tax assets; ?

$1,758 million noncash tax benefit related to the revaluation of certain deferred income tax liabilities; and ?

$477 million tax expense related to the mandatory deemed repatriation of undistributed foreign earnings and profits.  ?

a noncash expense of $16 million, primarily associated with the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes; and ?

$173 million discrete tax benefits, primarily related to stock-based compensation awards, including $151 million related to the adoption of new accounting guidance related to stock-based compensation awards.

See Note 2, Significant Accounting Policies, for further information.

The as adjusted effective tax rate of 29.3% for 2017 excluded the noncash deferred tax revaluation benefit of $1,758 million and noncash expense of $16 million mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.

In addition, the deemed repatriation tax expense of $477 million has been excluded from the as adjusted results due to the one-time nature and to ensure comparability among periods presented.2016.

a net noncash benefit of $30 million, primarily associated with the revaluation of certain deferred income tax liabilities; and ?

a benefit from $65 million of nonrecurring items, including the resolution of certain outstanding tax matters.

The as adjusted effective tax rate of 29.6% for 2016 excluded the net noncash benefit of $30 million mentioned above as it will not have a cash flow impact and to ensure comparability among periods presented.2015.

a net noncash benefit of $54 million, primarily associated with the revaluation of certain deferred income tax liabilities; and ?

a benefit from $75 million of nonrecurring items, primarily due to the realization of losses from changes in the Company’s organizational tax structure and the resolution of certain outstanding tax matters.

The as adjusted effective tax rate of 28.4% for 2015 excluded the net noncash benefit of $54 million mentioned above, as it will not have a cash flow impact and to ensure comparability among periods presented.

BALANCE SHEET OVERVIEW As Adjusted Balance Sheet The following table presents a reconciliation of the consolidated statement of financial condition presented on a GAAP basis to the consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and consolidated sponsored investment funds, including consolidated VIEs.

The Company presents the as adjusted balance sheet as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows.

Management views the as adjusted balance sheet, which contains non-GAAP financial measures, as an economic presentation of the Company’s total assets and liabilities; however, it does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Separate Account Assets and Liabilities and Separate Account Collateral Held under Securities Lending Agreements Separate account assets are maintained by BlackRock Life Limited, a wholly owned subsidiary of the Company that is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts.

when the likelihood of clawback is considered mathematically improbable.

The Company records a deferred carried interest liability to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria.

At December 31, 2017 and 2016, the Company had $219 million and $152 million, respectively, of deferred carried interest recorded in other liabilities/other liabilities of consolidated VIEs on the consolidated statements of financial condition.

A portion of the deferred carried interest liability will be paid to certain employees.

The ultimate timing of the recognition of performance fee revenue, if any, for these products is unknown.

The following table presents changes in the deferred carried interest liability (including the portion related to consolidated VIEs) for 2017 and 2016:

|(in millions)|2017|2016|
|Beginning balance|$152|$143|
|Net increase (decrease) in unrealized allocations|75|37|
|Performance fee revenue recognized|-21|-28|
|Acquisition|13|—|
|Ending balance|$219|$152|

For 2017, 2016 and 2015, performance fee revenue (which included recognized carried interest) totaled $594 million, $295 million and $621 million, respectively.

Fees earned for technology and risk management revenue are recorded as services are performed and are generally determined using the value of positions on the Aladdin platform or on a fixed-rate basis.

For 2017, 2016 and 2016, technology and risk management revenue totaled $677 million, $595 million and $528 million, respectively.

Adjustments to revenue arising from initial estimates recorded historically have been immaterial since the majority of BlackRock’s investment advisory and administration revenue is calculated based on AUM and since the Company does not record performance fee revenue until performance thresholds have been exceeded and the likelihood of clawback is mathematically improbable.

Accounting Developments Recent Accounting Pronouncements Not Yet Adopted.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”).

ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.

The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements.

The key changes in the standard that impact the Company’s revenue recognition relate to the presentation of certain revenue contracts and associated contract costs.

The most significant of these changes relates to the presentation of certain distribution costs, which are currently presented net against revenues (contra-revenue) and will be presented as an expense on a gross basis.

The Company adopted ASU 2014-09 effective January 1, 2018 on a full retrospective basis, which will require 2016 and 2017 to be restated in future filings.

The cumulative effect adjustment to the 2016 opening retained earnings was not material.

The Company currently expects the net gross up to revenue to be approximately $1 billion with a corresponding gross up to expense for both 2016 and 2017.

Consequently, the Company expects its GAAP operating margin to decline upon adoption due to the gross up of revenue.

However, no material impact is expected on the Company’s as adjusted operating margin.

For accounting pronouncements that the Company adopted during the year ended December 31, 2017 and for additional recent accounting pronouncements not yet adopted, see Note 2, Significant Accounting Policies, in the consolidated financial statements contained in Part II, Item 8 of this filing.

Quantitative and Qualitative Disclosures about Market Risk AUM Market Price Risk.

BlackRock’s investment advisory and administration fees are primarily comprised of fees based on a percentage of the value of AUM and, in some cases, performance fees expressed as a percentage of the returns realized on AUM.

At December 31, 2017, the majority of the Company’s investment advisory and administration fees were based on average or period end AUM of the applicable investment funds or separate accounts.

Movements in equity market prices, interest rates/credit spreads, foreign exchange rates or all three could cause the value of AUM to decline, which would result in lower investment advisory and administration fees.

As a leading investment management firm, BlackRock devotes significant resources across all of its operations to identifying, measuring, monitoring, managing and analyzing market and operating risks, including the management and oversight of its own investment portfolio.

The Board of Directors of the Company has adopted guidelines for the review of investments to be made by the Company, requiring, among other things, that investments be reviewed by certain senior officers of the Company, and that certain investments may be referred to the Audit Committee or the Board of Directors, depending on the circumstances, for approval.

In the normal course of its business, BlackRock is exposed to equity market price risk, interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments.

BlackRock has investments primarily in sponsored investment products that invest in a variety of asset classes, including real assets, private equity and hedge funds.

Investments generally are made for co-investment purposes, to establish a performance track record, to hedge exposure to certain deferred compensation plans or for regulatory purposes.

Currently, the Company has a seed capital hedging program in which it enters into swaps to hedge market and interest rate exposure to certain investments.

At December 31, 2017, the Company had outstanding total return swaps with an aggregate notional value of approximately $587 million.

At December 31, 2017, there were no outstanding interest rate swaps.

There are significant costs associated with the Recall Transaction.

We currently estimate total operating and capital expenditures associated with the Recall Transaction to be approximately $380.0 million, the majority of which is expected to be incurred by the end of 2018.

This amount consists of approximately $80.0 million of Recall Deal Close Costs and approximately $300.0 million of Recall Integration Costs.

Of these amounts, approximately $47.1 million was incurred through December 31, 2015 ($24.7 million of Recall Deal Close Costs and $22.4 million of Recall Integration Costs), including approximately $47.0 million of operating expenditures and approximately $0.1 million of capital expenditures.

Additionally, upon closing of the Recall Transaction we will incur costs associated with (i) the cash components of the purchase price noted above and (ii) the payoff of outstanding borrowings under Recall’s existing revolving credit facility.

We expect the total cost to close the Recall Transaction (including Recall Deal Close Costs, the cash components of the purchase price and the payoff of Recall’s revolving credit facility, but excluding Recall Integration Costs) to be approximately $1,100.0 million.

We intend to fund these costs through a combination of cash on hand, borrowings under our Revolving Credit Facility and, as necessary, public or private debt financing.

Contractual Obligations The following table summarizes our contractual obligations as of December 31, 2015 and the anticipated effect of these obligations on our liquidity in future years (in thousands):


Question: as of february 19 , 2016 what was the market capitalization

def solution():
    # Define variables name and value
    outstanding_shares = 423897556
    share_price = 87.32

    # Do math calculation to get the answer
    answer = outstanding_shares * share_price

    return answer

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The following table presents reported quarterly high and low per share sale prices of our common stock on the NYSE for the years 2015 and 2014.

|2015|High|Low|
|Quarter ended March 31|$101.88|$93.21|
|Quarter ended June 30|98.64|91.99|
|Quarter ended September 30|101.54|86.83|
|Quarter ended December 31|104.12|87.23|
|2014|High|Low|
|Quarter ended March 31|$84.90|$78.38|
|Quarter ended June 30|90.73|80.10|
|Quarter ended September 30|99.90|89.05|
|Quarter ended December 31|106.31|90.20|

On February 19, 2016, the closing price of our common stock was $87.32 per share as reported on the NYSE.

As of February 19, 2016, we had 423,897,556 outstanding shares of common stock and 159 registered holders.

Dividends As a REIT, we must annually distribute to our stockholders an amount equal to at least 90% of our REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain).

Generally, we have distributed and expect to continue to distribute all or substantially all of our REIT taxable income after taking into consideration our utilization of net operating losses (“NOLs”).

We have two series of preferred stock outstanding, 5.25% Mandatory Convertible Preferred Stock, Series A, issued in May 2014 (the “Series A Preferred Stock”), with a dividend rate of 5.25%, and the 5.50% Mandatory Convertible Preferred Stock, Series B (the “Series B Preferred Stock”), issued in March 2015, with a dividend rate of 5.50%.

Dividends are payable quarterly in arrears, subject to declaration by our Board of Directors.

The amount, timing and frequency of future distributions will be at the sole discretion of our Board of Directors and will be dependent upon various factors, a number of which may be beyond our control, including our financial condition and operating cash flows, the amount required to maintain our qualification for taxation as a REIT and reduce any income and excise taxes that we otherwise would be required to pay, limitations on distributions in our existing and future debt and preferred equity instruments, our ability to utilize NOLs to offset our distribution requirements, limitations on our ability to fund distributions using cash generated through our TRSs and other factors that our Board of Directors may deem relevant.

We have distributed an aggregate of approximately $2.3 billion to our common stockholders, including the dividend paid in January 2016, primarily subject to taxation as ordinary income.

During the year ended December 31, 2015, we declared the following cash distributions:

S.  exposure was $232.6 billion at December 31, 2011, a decrease of $29.4 billion from December 31, 2010.

S.  exposure remained concentrated in Europe which accounted for $115.9 billion, or 50 percent, of total non-U.

The European exposure was mostly in Western Europe and was distributed across a variety of industries.

The decrease of $32.2 billion in Europe was primarily driven by our efforts to reduce risk in countries affected by the ongoing debt crisis in the Eurozone.

Select European countries are further detailed in Table 54.

Asia Pacific was our second largest non-U.

S.  exposure at $74.6 billion, or 32 percent.

The $1.3 billion increase in Asia Pacific was driven by increases in securities and local exposure in Japan and increases in the emerging markets, predominately in local exposure, loans and securities offset by the sale of CCB shares.

For more information on our CCB investment, see Note 5 – Securities to the Consolidated Financial Statements.

Latin America accounted for $17.4 billion, or seven percent, of total non-U.

The $2.6 billion increase in Latin America was primarily driven by an increase in Brazil in securities and local country exposure.

Middle East and Africa increased $926 million to $4.6 billion, representing two percent of total non-U.

S.  exposure was $20.1 billion at December 31, 2011, a decrease of $2.1 billion in 2011 resulting primarily from a decrease in local exposure as a result of the sale of our Canadian consumer card business.

For more information on our Asia Pacific and Latin America exposure, see non-U.

S.  exposure to selected countries defined as emerging markets on page 100.

Table 52 presents countries where total cross-border exposure exceeded one percent of our total assets.

At December 31, 2011, the United Kingdom and Japan were the only countries where total cross-border exposure exceeded one percent of our total assets.

At December 31, 2011, Canada and France had total cross-border exposure of $16.9 billion and $16.1 billion representing 0.79 percent and 0.75 percent of total assets.

Canada and France were the only other countries that had total cross-border exposure that exceeded 0.75 percent of our total assets at December 31, 2011.

Exposure includes cross-border claims by our non-U.

S.  offices including loans, acceptances, time deposits placed, trading account assets, securities, derivative assets, other interestearning investments and other monetary assets.

Amounts also include unused commitments, SBLCs, commercial letters of credit and formal guarantees.

Sector definitions are consistent with FFIEC reporting requirements for preparing the Country Exposure Report.

|Table 52|Total Cross-border Exposure Exceeding One Percent of Total Assets-1|
|(Dollars in millions)|December 31|Public Sector|Banks|Private Sector|Cross-borderExposure|Exposure as aPercentage ofTotal Assets|
|United Kingdom|2011|$6,401|$4,424|$18,056|$28,881|1.36%|
||2010|101|5,544|32,354|37,999|1.68|
|Japan-2|2011|4,603|10,383|8,060|23,046|1.08|

(1) Total cross-border exposure for the United Kingdom and Japan included derivatives exposure of $5.9 billion and $3.5 billion at December 31, 2011 and $2.3 billion and $2.8 billion at December 31, 2010 which has been reduced by the amount of cash collateral applied of $9.3 billion and $1.2 billion at December 31, 2011 and $13.0 billion and $1.6 billion at December 31, 2010.

Derivative assets were collateralized by other marketable securities of $242 million and $1.7 billion at December 31, 2011 and $96 million and $743 million at December 31, 2010.

(2) At December 31, 2010, total cross-border exposure for Japan was $17.0 billion, representing 0.75 percent of total assets.

Tables 43 and 44 present commercial real estate credit quality data by non-homebuilder and homebuilder property types.

The homebuilder portfolio presented in Tables 42, 43 and 44 includes condominiums and other residential real estate.

Other property types in Tables 42, 43 and 44 primarily include special purpose, nursing/retirement homes, medical facilities and restaurants, as well as unsecured loans to borrowers whose primary business is commercial real estate.

Table 43 Commercial Real Estate Credit Quality Data

|Table 43|Commercial Real Estate Credit Quality Data December 31|
||Nonperforming Loans andForeclosed Properties-1|Utilized ReservableCriticized Exposure-2|
|(Dollars in millions)|2011|2010|2011|2010|
|Non-homebuilder|||||
|Office|$807|$1,061|$2,375|$3,956|
|Multi-family rental|339|500|1,604|2,940|
|Shopping centers/retail|561|1,000|1,378|2,837|
|Industrial/warehouse|521|420|1,317|1,878|
|Multi-use|345|483|971|1,316|
|Hotels/motels|173|139|716|1,191|
|Land and land development|530|820|749|1,420|
|Other|223|168|997|1,604|
|Total non-homebuilder|3,499|4,591|10,107|17,142|
|Homebuilder|993|1,963|1,418|3,376|
|Total commercial real estate|$4,492|$6,554|$11,525|$20,518|

Table 44 Commercial Real Estate Net Charge-offs and Related Ratios

|Table 44|Commercial Real Estate Net Charge-offs and Related Ratios|
||Net Charge-offs|Net Charge-off Ratios-1|
|(Dollars in millions)|2011|2010|2011|2010|
|Non-homebuilder|||||
|Office|$126|$273|1.51%|2.49%|
|Multi-family rental|36|116|0.52|1.21|
|Shopping centers/retail|184|318|2.69|3.56|
|Industrial/warehouse|88|59|1.94|1.07|
|Multi-use|61|143|1.63|2.92|
|Hotels/motels|23|45|0.86|1.02|
|Land and land development|152|377|7.58|13.04|
|Other|19|220|0.33|3.14|
|Total non-homebuilder|689|1,551|1.67|2.86|
|Homebuilder|258|466|8.00|8.26|
|Total commercial real estate|$947|$2,017|2.13|3.37|

(1) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.

At December 31, 2011, total committed non-homebuilder exposure was $53.1 billion compared to $64.2 billion at December 31, 2010, with the decrease due to exposure reductions in all non-homebuilder property types.

Non-homebuilder nonperforming loans and foreclosed properties were $3.5 billion and $4.6 billion at December 31, 2011 and 2010, which represented 9.29 percent and 10.08 percent of total nonhomebuilder loans and foreclosed properties.

Non-homebuilder utilized reservable criticized exposure decreased to $10.1 billion, or 25.34 percent of non-homebuilder utilized reservable exposure, at December 31, 2011 compared to $17.1 billion, or 35.55 percent, at December 31, 2010.

The decrease in reservable criticized exposure was driven primarily by office, shopping centers/retail and multi-family rental property types.

For the nonhomebuilder portfolio, net charge-offs decreased $862 million in 2011 due in part to resolution of criticized assets through payoffs and sales.

At December 31, 2011, we had committed homebuilder exposure of $3.9 billion compared to $6.0 billion at December 31, 2010, of which $2.4 billion and $4.3 billion were funded secured loans.

The decline in homebuilder committed exposure was due to repayments, net charge-offs, reductions in new home construction and continued risk mitigation initiatives with market conditions providing fewer origination opportunities to offset the reductions.

Homebuilder nonperforming loans and foreclosed properties decreased $970 million due to repayments, a decline in the volume of loans being downgraded to nonaccrual status and net charge-offs.

Homebuilder utilized reservable criticized exposure decreased $2.0 billion to $1.4 billion due to repayments and net charge-offs.

The nonperforming loans, leases and foreclosed properties and the utilized reservable criticized ratios for the homebuilder portfolio were 38.89 percent and 54.65 percent at December 31, 2011 compared to 42.80 percent and 74.27 percent at December 31, 2010.

Net charge-offs for the homebuilder portfolio decreased $208 million in 2011.

Capital Management During 2015, we repurchased approximately $2.4 billion of common stock, with an average price of $16.92 per share, in connection with our 2015 Comprehensive Capital Analysis and Review (CCAR) capital plan, which included a request to repurchase $4.0 billion of common stock over five quarters beginning in the second quarter of 2015, and to maintain the quarterly common stock dividend at the current rate of $0.05 per share.

Based on the conditional non-objection we received from the Federal Reserve on our 2015 CCAR submission, we were required to resubmit our CCAR capital plan by September 30, 2015 and address certain weaknesses the Federal Reserve identified in our capital planning process.

We have established plans and taken actions which addressed the identified weaknesses, and we resubmitted our CCAR capital plan on September 30, 2015.

The Federal Reserve announced that it did not object to our resubmitted CCAR capital plan on December 10, 2015.

As an Advanced approaches institution, under Basel 3, we were required to complete a qualification period (parallel run) to demonstrate compliance with the Basel 3 Advanced approaches capital framework to the satisfaction of U. S.  banking regulators.

We received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015.

As previously disclosed, with the approval to exit parallel run, U. S.  banking regulators requested modifications to certain internal analytical models including the wholesale (e. g. , commercial) credit models.

All requested modifications were incorporated, which increased our risk-weighted assets, and are reflected in the risk-based ratios in the fourth quarter of 2015.

Having exited parallel run on October 1, 2015, we are required to report regulatory risk-based capital ratios and risk-weighted assets under both the Standardized and Advanced approaches.

The approach that yields the lower ratio is used to assess capital adequacy including under the Prompt Corrective Action (PCA) framework and was the Advanced approaches in the fourth quarter of 2015.

For additional information, see Capital Management on page 51.

Trust Preferred Securities On December 29, 2015, the Corporation provided notice of the redemption on January 29, 2016 of all trust preferred securities of Merrill Lynch Preferred Capital Trust III, Merrill Lynch Preferred Capital Trust IV and Merrill Lynch Preferred Capital Trust V (the Trust Preferred Securities).

In connection with the Corporation’s acquisition of Merrill Lynch & Co. , Inc.  in 2009, the Corporation recorded a discount to par value as purchase accounting adjustments associated with the Trust Preferred Securities.

The Corporation recorded a $612 million charge to net interest income related to the discount on these securities.

New Accounting Guidance on Recognition and Measurement of Financial Instruments In January 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance on recognition and measurement of financial instruments.

The Corporation has early adopted, retrospective to January 1, 2015, the provision that requires the Corporation to present unrealized gains and losses resulting from changes in the Corporation’s own credit spreads on liabilities accounted for under the fair value option (referred to as debit valuation adjustments, or DVA) in accumulated other comprehensive income (OCI).

The impact of the adoption was to reclassify, as of January 1, 2015, unrealized DVA losses of $2.0 billion pretax ($1.2 billion after tax) from retained earnings to accumulated OCI.

Further, pretax unrealized DVA gains of $301 million, $301 million and $420 million were reclassified from other income to accumulated OCI for the third, second and first quarters of 2015, respectively.

This had the effect of reducing net income as previously reported for the aforementioned quarters by $187 million, $186 million and $260 million, or approximately $0.02 per share in each quarter.

This change is reflected in consolidated results and the Global Markets segment results.

Results for 2014 were not subject to restatement under the provisions of the new accounting guidance.

Selected Financial Data Table 1 provides selected consolidated financial data for 2015 and 2014.


Question: What is the ratio of Greater than twelve to twenty-four months for Carrying amount of Private to the total in 2009?

def solution():
    # Define variables name and value
    private_carrying_amount_greater_than_twelve_to_twenty_four_months = 365.6
    total_private_carrying_amount = 922.4

    # Do math calculation to get the answer
    answer = (private_carrying_amount_greater_than_twelve_to_twenty_four_months / total_private_carrying_amount) * 100

    return answer

During 2010, we granted 3.8 million RSUs and 1.1 million Employee SARs.

See Footnote No.4, “Share-Based Compensation,” of the Notes to our Financial Statements for additional information.

NEW ACCOUNTING STANDARDS See Footnote No.1, “Summary of Significant Accounting Policies,” of the Notes to our Financial Statements for information related to our adoption of new accounting standards in 2010 and for information on our anticipated adoption of recently issued accounting standards.

LIQUIDITY AND CAPITAL RESOURCES Cash Requirements and Our Credit Facilities Our Credit Facility, which expires on May 14, 2012, and associated letters of credit, provide for $2.4 billion of aggregate effective borrowings.

Borrowings under the Credit Facility bear interest at the London Interbank Offered Rate (LIBOR) plus a fixed spread based on the credit ratings for our public debt.

We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating.

For additional information on our Credit Facility, including participating financial institutions, see Exhibit 10, “Amended and Restated Credit Agreement,” to our Current Report on Form 8-K filed with the SEC on May 16, 2007.

Although our Credit Facility does not expire until 2012, we expect that we may extend or replace it during 2011.

The Credit Facility contains certain covenants, including a single financial covenant that limits our maximum leverage (consisting of Adjusted Total Debt to Consolidated EBITDA, each as defined in the Credit Facility) to not more than 4 to 1.

Our outstanding public debt does not contain a corresponding financial covenant or a requirement that we maintain certain financial ratios.

We currently satisfy the covenants in our Credit Facility and public debt instruments, including the leverage covenant under the Credit Facility, and do not expect the covenants to restrict our ability to meet our anticipated borrowing and guarantee levels or increase those levels should we need to do so in the future.

We believe the Credit Facility, together with cash we expect to generate from operations and our ability to raise capital, remains adequate to meet our short-term and long-term liquidity requirements, finance our long-term growth plans, meet debt service, and fulfill other cash requirements.

At year-end 2010, our available borrowing capacity amounted to $2.831 billion and reflected borrowing capacity of $2.326 billion under our Credit Facility and our cash balance of $505 million.

We calculate that borrowing capacity by taking $2.404 billion of effective aggregate bank commitments under our Credit Facility and subtracting $78 million of outstanding letters of credit under our Credit Facility.

During 2010, we repaid our outstanding Credit Facility borrowings and had no outstanding balance at year-end.

As noted in the previous paragraphs, we anticipate that this available capacity will be adequate to fund our liquidity needs.

Since we continue to have ample flexibility under the Credit Facility’s covenants, we also expect that undrawn bank commitments under the Credit Facility will remain available to us even if business conditions were to deteriorate markedly.

Cash from Operations Cash from operations, depreciation expense, and amortization expense for the last three fiscal years are as follows:

|($ in millions)|2010|2009|2008|
|Cash from operations|$1,151|$868|$641|
|Depreciation expense|138|151|155|
|Amortization expense|40|34|35|

Our ratio of current assets to current liabilities was roughly 1.4 to 1.0 at year-end 2010 and 1.2 to 1.0 at year-end 2009.

We minimize working capital through cash management, strict credit-granting policies, and aggressive collection efforts.

We also have significant borrowing capacity under our Credit Facility should we need additional working capital.

Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 4.

Variable Interest Entities — (continued) the credit-linked note if cumulative losses exceeded the subordination of a synthetic reference portfolio.

As of December 31, 2008, the credit default swap entered into by the trust had an outstanding notional amount of $130.0 million.

The credit default swap counterparties of the grantor trusts had no recourse to our assets.

In October 2009, the grantor trust was terminated and we received $122.2 million in cash.

We determined that this grantor trust was a VIE and that we were the primary beneficiary of the trust as we were the sole investor in the trust and the manager of the synthetic reference portfolios.

Upon consolidation of the trust, as of December 31, 2008, our consolidated statements of financial position included $93.5 million of available-for-sale fixed maturity securities, which represented the collateral held by the trust.

The assets of the trust were held by a trustee and could only be liquidated to settle obligations of the trust.

These obligations included losses on the synthetic reference portfolio and the return of investments due to maturity or termination of the trust.

As of December 31, 2008, our consolidated statements of financial position included $53.4 million of other liabilities representing derivative market values of the trust.

During the year December 31, 2008 and 2007, the credit default swaps had a change in fair value that resulted in a $54.5 million pre-tax loss and $3.2 million pre-tax loss, respectively.

During the year ended December 31, 2009, we recognized a pre-tax gain of $49.8 million related to the change in fair value and termination of the credit default swaps.

We contributed undated subordinated floating rate notes to three grantor trusts.

The trusts separated the cash flows of the underlying $425.9 million par value notes by issuing an interest-only certificate and a residual certificate related to each note contributed.

Each interest-only certificate entitles the holder to interest on the stated note for a specified term while the residual certificate entitles the holder to interest payments subsequent to the term of the interest-only certificate and to all principal payments.

We retained the interest-only certificate and the residual certificates were subsequently sold to a third party.

We have determined that these grantor trusts are VIEs as our interest-only certificates are exposed to the majority of the risk of loss due to interest rate risk.

The restricted interest periods end between 2016 and 2020 and, at that time, the residual certificate holders’ certificates are redeemed by the trust in return for the notes.

We have determined that it will be necessary for us to consolidate these entities until the expiration of the interest-only period.

As of December 31, 2009 and 2008, our consolidated statements of financial position include $226.6 million and $212.2 million, respectively, of undated subordinated floating rate notes of the grantor trusts, which are classified as available-for-sale fixed maturity securities and represent the collateral held by the trust.

The obligation to deliver the underlying securities to the residual certificate holders of $89.1 million and $103.8 million as of December 31, 2009 and 2008, respectively, is classified as an other liability and contains an embedded derivative of the forecasted transaction to deliver the underlying securities.

The creditors of the grantor trusts have no recourse to our assets.

In addition to the entities above, we have a number of relationships with a disparate group of entities, which meet the criteria for VIEs.

Due to the nature of our direct investment in the equity and/or debt of these VIEs, we are the primary beneficiary of such entities, which requires us to consolidate them.

These entities include five private investment vehicles and several hedge funds.

The consolidation of these VIEs did not have a material effect on either our consolidated statements of financial position as of December 31, 2009 or 2008, or results of operations for the years ended December 31, 2009, 2008 and 2007.

For these entities, the creditors have no recourse to our assets.

The carrying amount and classification of other consolidated VIE assets that are pledged as collateral that the VIEs have designated for their other obligations and the debt of the VIEs are as follows:

| | December 31,|
| | 2009| 2008|
| |(in millions) |
|Fixed maturity securities, available-for-sale|$59.2|$103.8|
|Fixed maturity securities, trading|19.8|17.2|
|Equity securities, trading|90.9|30.7|
|Cash and other assets|119.8|140.8|
|Total assets pledged as collateral|$289.7|$292.5|
|Long-term debt and other obligations|$178.9|$248.6|

The assets of the trusts are held by a trustee and can only be liquidated to settle obligations of the trusts.

These obligations primarily include unrealized losses on derivatives, the synthetic reference portfolios or financial guarantees and the return of investments due to maturity or termination of the trusts.

Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 5.

Investments — (continued) Each reporting period, all securities are reviewed to determine whether an other-than-temporary decline in value exists and whether losses should be recognized.

We consider relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary.

Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.

Prior to 2009, our ability and intent to hold fixed maturity securities for a period of time that allowed for a recovery in value was considered rather than our intent to sell these securities.

To the extent we determine that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.

Impairment losses on equity securities are recognized in net income and are measured as the difference between amortized cost and fair value.

The way in which impairment losses on fixed maturity securities are now recognized in the financial statements is dependent on the facts and circumstances related to the specific security.

If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, we recognize an other-than-temporary impairment in net income for the difference between amortized cost and fair value.

If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated.

We recognize the credit loss portion in net income and the noncredit loss portion in OCI.

Prior to 2009, other-than-temporary impairments on fixed maturity securities were recorded in net income in their entirety and the amount recognized was the difference between amortized cost and fair value.

We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security.

The present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.

The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security.

The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees.

The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or liquidations using bond specific facts and circumstances including timing, security interests and loss severity.

Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities, were as follows:

||For the year ended December 31,|
||2009|2008|2007|
||(in millions)|
|Fixed maturities, available-for-sale|$-693.6|$-432.0|$-262.8|
|Equity securities, available-for-sale|-20.5|-47.3|-51.3|
|Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities|$-714.1|$-479.3|$-314.1|

Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 10.

Debt — (continued) Long-Term Debt The components of long-term debt as of December 31, 2009 and 2008, were as follows:

| | December 31,|
| | 2009| 2008|
| |(in millions) |
|8.2% notes payable, due 2009|$—|$454.9|
|3.31% notes payable, due 2011|61.2|49.9|
|3.63% notes payable, due 2011|31.4|25.6|
|7.875% notes payable, due 2014|400.0|—|
|8.875% notes payable, due 2019|350.0|—|
|6.05% notes payable, due 2036|601.8|601.8|
|8% surplus notes payable, due 2044|99.2|99.2|
|Non-recourse mortgages and notes payable|40.6|58.7|
|Other mortgages and notes payable|0.4|0.4|
|Total long-term debt|$1,584.6|$1,290.5|

The amounts included above are net of the discount and premium associated with issuing these notes, which are being amortized to expense over their respective terms using the interest method.

On May 18, 2009, we issued $750.0 million of senior notes.

We issued a $400.0 million series of notes that bear interest at 7.875% and will mature on May 15, 2014, and a $350.0 million series of notes that bear interest at 8.875% and will mature on May 15, 2019.

Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on November 15, 2009.

The proceeds were primarily used to refinance $440.9 million of notes that matured on August 15, 2009, with the remaining proceeds being used for general corporate purposes.

On October 16 and December 5, 2006, we issued $500.0 million and $100.0 million, respectively, of senior notes.

The notes bear interest at a rate of 6.05% per year.

Interest on the notes is payable semi-annually on April 15 and October 15 each year and began on April 15, 2007.

The notes will mature on October 15, 2036.

A portion of the proceeds were used to fund the 2006 acquisition of WM Advisors, Inc. , with the remaining proceeds being used for general corporate purposes.

On November 3, 2005, Principal International de Chile S. A. , a wholly owned indirect subsidiary, entered into long-term borrowing agreements with two Chilean banks in the amount of US $93.9 million.

This debt is denominated in Unidades de Formento (‘‘UF’’), a Chilean inflation-indexed, peso-denominated monetary unit.

Of this amount, US $49.0 million of UF +3.31% notes, which was refinanced from +4.59% during 2007, and US $44.9 million of UF +3.63% notes, which was refinanced from +4.93% in 2007, mature on November 3, 2011.

Interest on the notes is payable semi-annually on May 3 and November 3 each year.

The debt outstanding and interest expense will vary due to fluctuations in the Chilean peso to US dollar exchange rates and Chilean inflation.

On August 25, 1999, Principal Financial Group (Australia) Holdings Pty.

Limited, a wholly owned indirect subsidiary, issued $665.0 million of unsecured redeemable long-term debt.

Principal Financial Group (Australia) Holdings Pty.

Limited used the net proceeds from the notes to partially fund the purchase of the outstanding stock of several companies affiliated with Bankers Trust Australia Group.

On December 28, 2001, all of the long-term debt obligations of Principal Financial Group (Australia) Holdings Pty.

Limited were assumed by its parent, Principal Financial Services, Inc.  Of the original amount issued, $200.0 million of 7.95% notes matured on August 15, 2004, with the remaining $465.0 million in 8.2% notes maturing on August 15, 2009.

On March 10, 1994, Principal Life issued $100.0 million of surplus notes due March 1, 2044, at an 8% annual interest rate.

None of our affiliates hold any portion of the notes.

Each payment of interest and principal on the notes, however, may be made only with the prior approval of the Commissioner of Insurance of the State of Iowa (the ‘‘Commissioner’’) and only to the extent that Principal Life has sufficient surplus earnings to make such payments.

Interest of $8.0 million for each of the years ended December 31, 2009, 2008 and 2007 was approved by the Commissioner, and charged to expense.

Subject to Commissioner approval, the notes due March 1, 2044, may be redeemed at Principal Life’s election on or after March 1, 2014, in whole or in part at a redemption price of approximately 102.3% of par.

The approximate 2.3% premium is scheduled to gradually diminish over the following ten years.

These notes may be redeemed on or after March 1, 2024, at a redemption price of 100% of the principal amount plus interest accrued to the date of redemption.

The non-recourse mortgages, other mortgages and notes payable are primarily financings for real estate developments.

Outstanding principal balances as of December 31, 2009, ranged from $5.9 million to $9.1 million per

The following tables present the carrying amount and the gross unrealized losses, including other-than-temporary impairment losses reported in OCI, on below investment grade fixed maturity securities available-for-sale by aging category for the time periods indicated.

| | December 31, 2009|
| | Public| Private| Total|
| | Carrying amount| Gross unrealized losses| Carrying amount| Gross unrealized losses| Carrying amount| Gross unrealized losses|
| |(in millions) |
|Three months or less|$55.7|$3.3|$52.8|$1.2|$108.5|$4.5|
|Greater than three to six months|3.4|—|14.8|—|18.2|—|
|Greater than six to nine months|12.7|0.2|0.1|0.1|12.8|0.3|
|Greater than nine to twelve months|32.8|11.2|1.0|1.8|33.8|13.0|
|Greater than twelve to twenty-four months|441.3|112.2|365.6|186.7|806.9|298.9|
|Greater than twenty-four to thirty-six months|609.0|314.8|403.5|435.8|1,012.5|750.6|
|Greater than thirty-six months|113.8|26.8|84.6|76.6|198.4|103.4|
|Total fixed maturity securities, available-for-sale|$1,268.7|$468.5|$922.4|$702.2|$2,191.1|$1,170.7|

| | December 31, 2008|
| | Public| Private| Total|
| | Carrying amount| Gross unrealized losses| Carrying amount| Gross unrealized losses| Carrying amount| Gross unrealized losses|
| |(in millions) |
|Three months or less|$133.1|$56.5|$114.6|$32.1|$247.7|$88.6|
|Greater than three to six months|88.8|12.7|297.1|74.3|385.9|87.0|
|Greater than six to nine months|102.5|42.9|129.1|46.5|231.6|89.4|
|Greater than nine to twelve months|163.0|65.9|44.5|43.7|207.5|109.6|
|Greater than twelve to twenty-four months|242.0|151.7|351.8|239.5|593.8|391.2|
|Greater than twenty-four to thirty-six months|41.2|26.1|13.3|21.4|54.5|47.5|
|Greater than thirty-six months|100.3|29.7|100.9|30.3|201.2|60.0|
|Total fixed maturity securities, available-for-sale|$870.9|$385.5|$1,051.3|$487.8|$1,922.2|$873.3|

The following tables present the carrying amount and the gross unrealized losses, including other-than-temporary impairment losses reported in OCI, on fixed maturity securities available-for-sale where the estimated fair value has declined and remained below amortized cost by 20% or more as the time periods indicate.


Question: In the year with lowest amount of Service cost, what's the increasing rate of Interest cost for Pension Benefits? (in %)

def solution():
    # Define variables name and value
    interest_cost_2015 = 242
    interest_cost_2014 = 253

    # Do math calculation to get the answer
    difference = interest_cost_2015 - interest_cost_2014
    increasing_rate = (difference / interest_cost_2014) * 100

    return increasing_rate

The funded status of the Company's plans as of December 31, 2015 and 2014, was as follows

||Pension Benefits December 31|Other Benefits December 31|
|($ in millions)|2015|2014|2015|2014|
|Change in Benefit Obligation|||||
|Benefit obligation at beginning of year|$5,671|$4,730|$650|$616|
|Service cost|150|136|13|13|
|Interest cost|242|253|27|30|
|Plan participants' contributions|11|26|6|7|
|Actuarial loss (gain)|-254|714|-91|24|
|Benefits paid|-185|-168|-39|-40|
|Curtailments|—|-20|—|—|
|Benefit obligation at end of year|5,635|5,671|566|650|
|Change in Plan Assets|||||
|Fair value of plan assets at beginning of year|4,731|4,310|—|—|
|Actual return on plan assets|-47|437|—|—|
|Employer contributions|103|126|33|33|
|Plan participants' contributions|11|26|6|7|
|Benefits paid|-185|-168|-39|-40|
|Fair value of plan assets at end of year|4,613|4,731|—|—|
|Funded status|$-1,022|$-940|$-566|$-650|
|Amounts Recognized in the Consolidated Statements of Financial Position:|||||
|Pension plan assets|$—|$17|$—|$—|
|Current liability-1|-21|-18|-143|-143|
|Non-current liability-2|-1,001|-939|-423|-507|
|Accumulated other comprehensive loss (income) (pre-tax) related to:|||||
|Prior service costs (credits)|86|105|-105|-125|
|Net actuarial loss (gain)|1,433|1,374|-21|73|

(1) Included in other current liabilities and current portion of postretirement plan liabilities, respectively.

(2) Included in pension plan liabilities and other postretirement plan liabilities, respectively.

The Projected Benefit Obligation ("PBO"), Accumulated Benefit Obligation ("ABO"), and asset values for the Company's qualified pension plans were $5,490 million, $5,146 million, and $4,613 million, respectively, as of December 31, 2015, and $5,529 million, $5,124 million, and $4,731 million, respectively, as of December 31, 2014.

The PBO represents the present value of pension benefits earned through the end of the year, with allowance for future salary increases.

The ABO is similar to the PBO, but does not provide for future salary increases.

The PBO and fair value of plan assets for all qualified and non-qualified pension plans with PBOs in excess of plan assets were $5,635 million and $4,613 million, respectively, as of December 31, 2015, and $4,394 million and $3,438 million, respectively, as of December 31, 2014.

The ABO and fair value of plan assets for all qualified and non-qualified pension plans with ABOs in excess of plan assets were $4,051 million and $3,391 million, respectively, as of December 31, 2015, and $3,981 million and $3,438 million, respectively, as of December 31, 2014.

The ABO for all pension plans was $5,273 million and $5,244 million as of December 31, 2015 and 2014, respectively.

The changes in amounts recorded in accumulated other comprehensive income (loss) were as follows:

FAS/CAS Adjustment The FAS/CAS Adjustment represents the difference between our pension and postretirement plan expense under FAS and under CAS.

2015 - The FAS/CAS Adjustment in 2015 was a net benefit of $104 million, compared to a net benefit of $72 million in 2014.

The favorable change was driven by the phase-in of Harmonization and better than expected 2014 asset returns, partially offset by higher FAS expense primarily due to lower discount rates at the end of 2014.2014 - The FAS/CAS Adjustment in 2014 was a net benefit of $72 million, compared to a net expense of $61 million in 2013.

The favorable change was driven by lower FAS expense, due primarily to higher discount rates and plan assets at the end of 2013, the full year effect of the 2013 postretirement benefits amendment, and the phase-in of Harmonization.

We expect the FAS/CAS Adjustment in 2016 to be a net benefit of approximately $137 million ($161 million FAS and $298 million CAS), primarily driven by the continued phase-in of Harmonization and higher FAS discount rates, partially offset by lower than expected 2015 asset returns.

The expected FAS/CAS Adjustment is subject to change during 2016, when we remeasure our actuarial estimate of the unfunded benefit obligation for CAS with updated census data and other items.

Deferred State Income Taxes Deferred state income taxes reflect the change in deferred state tax assets and liabilities in the relevant period.

These amounts are recorded within operating income, while the current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income.2015 - The deferred state income tax expense remained constant at $2 million in 2015 and 2014.

Deferred state tax expense in 2015 was primarily attributable to changes in the timing of contract taxable income and pension related adjustments, partially offset by a reduction in the valuation allowance for state tax credit carryforwards.2014 - The deferred state income tax expense in 2014 was $2 million, compared to a benefit of $6 million in 2013.

This change was primarily attributable to non-recurring adjustments related to establishing a valuation allowance for a state tax loss carryforward and the true-up of 2013 deferred taxes.

These increases were partially offset by changes in the timing of contract taxable income and reserves that are not currently deductible for tax purposes.

Interest Expense 2015 - Interest expense in 2015 was $137 million, compared to $149 million in 2014.

The decrease was primarily a result of refinancing 6.875% senior notes with 5.000% senior notes and repayment in full of the term loans, partially offset by loss on early extinguishment of debt.

See Note 14: Debt in Item 8.2014 - Interest expense in 2014 was $149 million, compared to $118 million in 2013.

The increase was primarily a result of a loss on the early extinguishment of debt in the fourth quarter of 2014.

Federal Income Taxes 2015 - Our effective tax rate on earnings from continuing operations was 36.1% in 2015, compared to 33.3% in 2014.

The increase in our effective tax rate for 2015 was primarily attributable to adjustments to the domestic manufacturing deduction and an increase in the goodwill impairment that is not amortizable for tax purposes.

Advance Payments and Billings in Excess of Revenues - Payments received in excess of inventoried costs and revenues are recorded as advance payment liabilities.

Property, Plant, and Equipment - Depreciable properties owned by the Company are recorded at cost and depreciated over the estimated useful lives of individual assets.

Major improvements are capitalized while expenditures for maintenance, repairs, and minor improvements are expensed.

Costs incurred for computer software developed or obtained for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine years.

Leasehold improvements are amortized over the shorter of their useful lives or the term of the lease.

The remaining assets are depreciated using the straight-line method, with the following lives:

||Years|
|Land improvements|3|-|40|
|Buildings and improvements|3|-|60|
|Capitalized software costs|3|-|9|
|Machinery and other equipment|2|-|45|

The Company evaluates the recoverability of its property, plant, and equipment when there are changes in economic circumstances or business objectives that indicate the carrying value may not be recoverable.

The Company's evaluations include estimated future cash flows, profitability, and other factors affecting fair value.

As these assumptions and estimates may change over time, it may or may not be necessary to record impairment charges.

Leases - The Company uses its incremental borrowing rate in the assessment of lease classification as capital or operating and defines the initial lease term to include renewal options determined to be reasonably assured.

The Company conducts operations primarily under operating leases.

Many of the Company's real property lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses.

For incentives for tenant improvements, the Company records a deferred rent liability and amortizes the deferred rent over the term of the lease as a reduction to rent expense.

For rent holidays and rent escalation clauses during the lease term, the Company records minimum rental expenses on a straight-line basis over the term of the lease.

For purposes of recognizing lease incentives, the Company uses the date of initial possession as the commencement date, which is generally the date on which the Company is given the right of access to the space and begins to make improvements in preparation for the intended use.

Goodwill and Other Intangible Assets - The Company performs impairment tests for goodwill as of November 30 of each year and between annual impairment tests if evidence of potential impairment exists, by first comparing the carrying value of net assets to the fair value of the related operations.

If the fair value is determined to be less than the carrying value, a second step is performed to determine if goodwill is impaired, by comparing the estimated fair value of goodwill to its carrying value.

Purchased intangible assets are amortized on a straight-line basis or a method based on the pattern of benefits over their estimated useful lives, and the carrying value of these assets is reviewed for impairment when events indicate that a potential impairment may have occurred.

Equity Method Investments - Investments in which the Company has the ability to exercise significant influence over the investee but does not own a majority interest or otherwise control are accounted for under the equity method of accounting and included in other assets in its consolidated statements of financial position.

The Company's equity investments align strategically and are integrated with the Company's operations, and therefore the Company's share of the net earnings or losses of the investee is included in operating income (loss).

The Company evaluates its equity investments for other than temporary impairment whenever events or changes in business circumstances indicate that the carrying amounts of such investments may not be fully recoverable.

If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period.

Self-Insured Group Medical Insurance - The Company maintains a self-insured group medical insurance plan.

The plan is designed to provide a specified level of coverage for employees and their dependents.


Question: What's the sum of Operating profit of 2012, and Net income of Year Ended December 31, 2002 3,4 is ?

def solution():
    # Define variables name and value
    operating_profit_2012 = 1083.0
    net_income_2002 = 3050.0

    # Do math calculation to get the answer
    answer = operating_profit_2012 + net_income_2002

    return answer

SELECTED FINANCIAL DATA The Coca-Cola Company and Subsidiaries

| |Compound Growth Rates |Year Ended December 31,|
|(In millions except per share data, ratios and growth rates) |5 Years |10 Years |2003 2|2002 3,4|
| SUMMARY OF OPERATIONS|||||
|Net operating revenues|5.2 %|5.3%|$ 21,044|$ 19,564|
|Cost of goods sold|6.9 %|4.2%|7,762|7,105|
|Gross profit|4.3 %|6.1%|13,282|12,459|
|Selling, general and administrative expenses|5.6 %|5.9%|7,488|7,001|
|Other operating charges|||573|—|
|Operating income|1.0 %|5.4%|5,221|5,458|
|Interest income|||176|209|
|Interest expense|||178|199|
|Equity income (loss)—net|||406|384|
|Other income (loss)—net|||-138|-353|
|Gains on issuances of stock by equity investees|||8|—|
|Income before income taxes and changes in accounting principles|1.1 %|5.6%|5,495|5,499|
|Income taxes|-7.2%|1.4%|1,148|1,523|
|Net income before changes in accounting principles|4.2 %|7.1%|$ 4,347|$ 3,976|
|Net income|4.2 %|7.2%|$ 4,347|$ 3,050|
|Average shares outstanding|||2,459|2,478|
|Average shares outstanding assuming dilution|||2,462|2,483|
| PER SHARE DATA|||||
|Income before changes in accounting principles—basic|4.4 %|7.7%|$ 1.77|$ 1.60|
|Income before changes in accounting principles—diluted|4.5 %|7.9%|1.77|1.60|
|Basic net income|4.4 %|7.7%|1.77|1.23|
|Diluted net income|4.5 %|7.9%|1.77|1.23|
|Cash dividends|8.0 %|10.0%|0.88|0.80|
|Market price on December 31,|-5.4%|8.6%|50.75|43.84|
| TOTAL MARKET VALUE OF COMMON STOCK1|-5.6%|7.9%|$ 123,908|$ 108,328|
| BALANCE SHEET AND OTHER DATA|||||
|Cash, cash equivalents and current marketable securities|||$ 3,482|$ 2,345|
|Property, plant and equipment—net|||6,097|5,911|
|Depreciation|||667|614|
|Capital expenditures|||812|851|
|Total assets|||27,342|24,406|
|Long-term debt|||2,517|2,701|
|Total debt|||5,423|5,356|
|Share-owners' equity|||14,090|11,800|
|Total capital1|||19,513|17,156|
| OTHER KEY FINANCIAL MEASURES1|||||
|Total debt-to-total capital|||27.8%|31.2%|
|Net debt-to-net capital|||12.1%|20.3%|
|Return on common equity|||33.6%|34.3%|
|Return on capital|||24.5%|24.5%|
|Dividend payout ratio|||49.8%|65.1%|
|Net cash provided by operations|||$ 5,456|$ 4,742|

1 Refer to Glossary on pages 103 and 104.2 In 2003, we adopted SFAS No.146, ‘‘Accounting for Costs Associated with Exit or Disposal Activities.

’’ 3 In 2002, we adopted SFAS No.142, ‘‘Goodwill and Other Intangible Assets.

’’ 4 In 2002, we adopted the fair value method provisions of SFAS No.123, ‘‘Accounting for Stock-Based Compensation,’’ and we adopted SFAS No.148, ‘‘Accounting for Stock-Based Compensation—Transition and Disclosure.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Coca-Cola Company and Subsidiaries NOTE 12: NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions):

||2003|2002|2001|
|Decrease (increase) in trade accounts receivable|$ 80|$ -83|$ -73|
|Decrease (increase) in inventories|111|-49|-17|
|Decrease (increase) in prepaid expenses and other assets|-276|74|-349|
|Decrease in accounts payable and accrued expenses|-164|-442|-179|
|Increase in accrued taxes|53|20|247|
|Increase (decrease) in other liabilities|28|73|-91|
||$ -168|$ -407|$ -462|

NOTE 13: RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS Prior to 2002, our Company accounted for our stock option plans and restricted stock plans under the recognition and measurement provisions of APB No.25 and related interpretations.

Effective January 1, 2002, our Company adopted the preferable fair value recognition provisions of SFAS No.123.

Our Company selected the modified prospective method of adoption described in SFAS No.148.

Compensation cost recognized in 2002 was the same as that which would have been recognized had the fair value method of SFAS No.123 been applied from its original effective date.

In accordance with the provisions of SFAS No.123 and SFAS No.148, $422 million and $365 million, respectively, were recorded for total stock-based compensation expense in 2003 and 2002.

Of the $422 million recorded in 2003, $407 million was recorded in selling, general and administrative expenses and $15 million was recorded in other operating charges (refer to Note 17).

In accordance with APB No.25, total stock-based compensation expense was $41 million for the year ended December 31, 2001.

Stock Option Plans Under our 1991 Stock Option Plan (the ‘‘1991 Option Plan’’), a maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options and stock appreciation rights granted under the 1991 Option Plan.

The stock appreciation rights permit the holder, upon surrendering all or part of the related stock option, to receive cash, common stock or a combination thereof, in an amount up to 100 percent of the difference between the market price and the option price.

Options to purchase common stock under the 1991 Option Plan have been granted to Company employees at fair market value at the date of grant.

The 1999 Stock Option Plan (the ‘‘1999 Option Plan’’) was approved by share owners in April of 1999.

Following the approval of the 1999 Option Plan, no grants were made from the 1991 Option Plan, and shares available under the 1991 Option Plan were no longer available to be granted.

Under the 1999 Option Plan, a maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 1999 Option Plan.

Options to purchase common stock under the 1999 Option Plan have been granted to Company employees at fair market value at the date of grant.

The 2002 Stock Option Plan (the ‘‘2002 Option Plan’’) was approved by share owners in April of 2002.

Under the 2002 Option Plan, a maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 2002 Option Plan.

2011 compared to 2010 MST’s net sales for 2011 decreased $311 million, or 4%, compared to 2010.

The decrease was attributable to decreased volume of approximately $390 million for certain ship and aviation system programs (primarily Maritime Patrol Aircraft and PTDS) and approximately $75 million for training and logistics solutions programs.

Partially offsetting these decreases was higher sales of about $165 million from production on the LCS program.

MST’s operating profit for 2011 decreased $68 million, or 10%, compared to 2010.

The decrease was attributable to decreased operating profit of approximately $55 million as a result of increased reserves for contract cost matters on various ship and aviation system programs (including the terminated presidential helicopter program) and approximately $40 million due to lower volume and increased reserves on training and logistics solutions.

Partially offsetting these decreases was higher operating profit of approximately $30 million in 2011 primarily due to the recognition of reserves on certain undersea systems programs in 2010.

Adjustments not related to volume, including net profit rate adjustments described above, were approximately $55 million lower in 2011 compared to 2010.

Backlog Backlog increased in 2012 compared to 2011 mainly due to increased orders on ship and aviation system programs (primarily MH-60 and LCS), partially offset decreased orders and higher sales volume on integrated warfare systems and sensors programs (primarily Aegis).

Backlog decreased slightly in 2011 compared to 2010 primarily due to higher sales volume on various integrated warfare systems and sensors programs.

Trends We expect MST’s net sales to decline in 2013 in the low single digit percentage range as compared to 2012 due to the completion of PTDS deliveries in 2012 and expected lower volume on training services programs.

Operating profit and margin are expected to increase slightly from 2012 levels primarily due to anticipated improved contract performance.

Space Systems Our Space Systems business segment is engaged in the research and development, design, engineering, and production of satellites, strategic and defensive missile systems, and space transportation systems.

Space Systems is also responsible for various classified systems and services in support of vital national security systems.

Space Systems’ major programs include the Space-Based Infrared System (SBIRS), Advanced Extremely High Frequency (AEHF) system, Mobile User Objective System (MUOS), Global Positioning Satellite (GPS) III system, Geostationary Operational Environmental Satellite R-Series (GOES-R), Trident II D5 Fleet Ballistic Missile, and Orion.

Operating results for our Space Systems business segment include our equity interests in United Launch Alliance (ULA), which provides expendable launch services for the U. S.  Government, United Space Alliance (USA), which provided processing activities for the Space Shuttle program and is winding down following the completion of the last Space Shuttle mission in 2011, and a joint venture that manages the U. K. ’s Atomic Weapons Establishment program.

Space Systems’ operating results included the following (in millions):

2012 compared to 2011 Space Systems’ net sales for 2012 increased $186 million, or 2%, compared to 2011.

The increase was attributable to higher net sales of approximately $150 million due to increased commercial satellite deliveries (two commercial satellites delivered in 2012 compared to one during 2011); about $125 million from the Orion program due to higher volume and an increase in risk retirements; and approximately $70 million from increased volume on various strategic and defensive missile programs.

Partially offsetting the increases were lower net sales of approximately $105 million from certain government satellite programs (primarily SBIRS and MUOS) as a result of decreased volume and a decline in risk retirements; and about $55 million from the NASA External Tank program, which ended in connection with the completion of the Space Shuttle program in 2011.


Question: What was the total amount of assets for Assumed in 2014? (in million)

def solution():
    # Define variables name and value
    assets_assumed_2014 = 491
    assets_assumed_other = 112

    # Do math calculation to get the answer
    answer = assets_assumed_2014 + assets_assumed_other

    return answer

environmental regulations, and the continuing advancement of remediation technology.

Taking these factors into account, Eaton has estimated the costs of remediation, which will be incurred over a period of years.

The Company accrues an amount on an undiscounted basis, consistent with the estimates of these costs, when it is probable that a liability has been incurred.

At December 31, 2012 and 2011, $125 and $62 was accrued for these costs.

Based upon Eaton's analysis and subject to the difficulty in estimating these future costs, the Company expects that any sum it may be required to pay in connection with environmental matters is not reasonably possible to exceed the recorded liability by an amount that would have a material effect on its financial position, results of operations or cash flows.

Market Risk Disclosure On a regular basis, Eaton monitors third-party depository institutions that hold its cash and short-term investments, primarily for safety of principal and secondarily for maximizing yield on those funds.

The Company diversifies its cash and shortterm investments among counterparties to minimize exposure to any one of these entities.

Eaton also monitors the creditworthiness of its customers and suppliers to mitigate any adverse impact.

Eaton uses derivative instruments to manage exposure to volatility in raw material costs, currency and interest rates on certain debt instruments.

Derivative financial instruments used by the Company are straightforward and non-leveraged.

The counterparties to these instruments are financial institutions with strong credit ratings.

Eaton maintains control over the size of positions entered into with any one counterparty and regularly monitors the credit rating of these institutions.

See Note 12 to the Consolidated Financial Statements for additional information about hedges and derivative financial instruments.

Eaton’s ability to access the commercial paper market, and the related cost of these borrowings, is based on the strength of its credit rating and overall market conditions.

The Company has not experienced any material limitations in its ability to access these sources of liquidity.

At December 31, 2012, Eaton had $2,000 of longterm revolving credit facilities with banks in support of its commercial paper program.

It has no direct borrowings outstanding under these credit facilities.

Eaton’s non-United States operations also had available short-term lines of credit of approximately $2,099 at December 31, 2012.

Interest rate risk can be measured by calculating the short-term earnings impact that would result from adverse changes in interest rates.

This exposure results from short-term debt, which includes commercial paper at a floating interest rate, longterm debt that has been swapped to floating rates, and money market investments that have not been swapped to fixed rates.

Based upon the balances of investments and floating rate debt at year end 2012, a 100 basis-point increase in short-term interest rates would have increased the Company’s net, pretax interest expense by $15.

Eaton also measures interest rate risk by estimating the net amount by which the fair value of the Company’s financial liabilities would change as a result of movements in interest rates.

Based on Eaton’s best estimate for a hypothetical, 100 basis point decrease in interest rates at December 31, 2012, the market value of the Company’s debt and interest rate swap portfolio, in aggregate, would increase by $779.

Currency risk is the risk of economic losses due to adverse changes in exchange rates.

The Company mitigates currency risk by funding some investments in certain markets through local currency financings.

Non-United States dollar debt was $148 at December 31, 2012.

To augment Eaton’s non-United States dollar debt portfolio, the Company also enters into forward exchange contracts and currency swaps from time to time to mitigate the risk of economic loss in its investments.

At December 31, 2012, the aggregate balance of such contracts was $599.

Eaton also monitors exposure to transactions denominated in currencies other than the functional currency of each country in which the Company operates, and regularly enters into forward contracts to mitigate that exposure.

In the aggregate, Eaton’s portfolio of forward contracts related to such transactions was not material to its Consolidated Financial Statements.

Contractual Obligations A summary of contractual obligations as of December 31, 2012 follows:

(1) Long-term debt excludes deferred gains and losses on derivatives related to debt, adjustments to fair market value, and premiums and discounts on long-term debentures.

Interest expense related to long-term debt is based on the fixed interest rate, or other applicable interest rate, related to the debt instrument.

The reduction of interest expense due to interest rate swap agreements related to long-term debt is based on the difference in the fixed interest rate the Company receives from the swap, compared to the floating interest rate the Company pays on the swap.

Purchase obligations are entered into with various vendors in the normal course of business.

These amounts include commitments for purchases of raw materials, outstanding non-cancelable purchase orders, releases under blanket purchase orders and commitments under ongoing service arrangements.

Other long-term obligations principally include anticipated contributions of $303 to pension plans in 2013 and $101 of deferred compensation earned under various plans for which the participants have elected to receive disbursement at a later date.

The table above does not include future expected pension benefit payments or expected other postretirement benefits payments.

Information related to the amounts of these future payments is described in Note 6 to the Consolidated Financial Statements.

The table above also excludes the liability for unrecognized income tax benefits, since the Company cannot predict with reasonable certainty the timing of cash settlements with the respective taxing authorities.

At December 31, 2012, the gross liability for unrecognized income tax benefits totaled $280 and interest and penalties were $34.

Forward-Looking Statements This Annual Report to Shareholders contains forward-looking statements concerning Eaton's full year 2013 sales, the performance in 2013 of its worldwide end markets, and Eaton's 2013 growth in relation to end markets, among other matters.

These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to Eaton, based on current beliefs of management as well as assumptions made by, and information currently available to, management.

Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions.

These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside Eaton’s control.

The following factors could cause actual results to differ materially from those in the forward-looking statements: unanticipated changes in the markets for the Company’s business segments; unanticipated downturns in business relationships with customers or their purchases from us; the availability of credit to customers and suppliers; competitive pressures on sales and pricing; increases in the cost of material and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; unexpected claims, charges, litigation or dispute resolutions; strikes or other labor unrest; the impact of acquisitions and divestitures; unanticipated difficulties integrating acquisitions; new laws and governmental regulations; interest rate changes; tax rate changes or exposure to additional income tax liability; stock market and currency fluctuations; and unanticipated deterioration of economic and financial conditions in the United States and around the world.

Eaton does not assume any obligation to update these forward-looking statements.

Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – CNA Financial – (Continued) Net income increased $246 million in 2006 as compared with 2005.

This increase was attributable to increases in net operating income and net realized investment gains.

See the Investments section of this MD&A for further discussion of net investment income and net realized investment results.

Net operating income increased $225 million in 2006 as compared with 2005.

This improvement was primarily driven by an increase in net investment income, a decrease in net prior year development as discussed below and reduced catastrophe impacts in 2006.

Catastrophe impacts were $1 million after tax and minority interest for the year ended December 31, 2006, as compared to $15 million after tax and minority interest for the year ended December 31, 2005.

The 2005 results also included a $54 million loss, after taxes and minority interest, in the surety line of business related to a large national contractor.

Further information related to the large national contractor is included in Note 22 of the Notes to Consolidated Financial Statements included under Item 8.

The combined ratio improved 7.9 points in 2006 as compared with 2005.

The loss ratio improved 7.9 points, due to decreased net prior year development as discussed below and improved current accident year impacts.

The 2005 loss ratio was unfavorably impacted by surety losses of $110 million, before taxes and minority interest, related to a national contractor as discussed above.

Partially offsetting this favorable impact was less favorable current accident year loss ratios across several other lines of business in 2006.

Favorable net prior year development of $66 million was recorded in 2006, including $61 million of favorable claim and allocated claim adjustment expense reserve development and $5 million of favorable premium development.

Unfavorable net prior year development of $103 million, including $173 million of unfavorable claim and allocated claim adjustment expense reserve development and $70 million of favorable premium development, was recorded in 2005.

Further information on Specialty Lines Net Prior Year Development for 2006 and 2005 is included in Note 9 of the Notes to Consolidated Financial Statements included under Item 8.

Life & Group Non-Core The following table summarizes the results of operations for Life & Group Non-Core.

|Year Ended December 31|2007|2006|2005|
|(In millions)||||
|Net earned premiums|$618|$641|$704|
|Net investment income|622|698|593|
|Net operating loss|-141|-13|-46|
|Net realized investment losses|-33|-30|-18|
|Net loss|-174|-43|-64|

2007 Compared with 2006 Net earned premiums for Life & Group Non-Core decreased $23 million in 2007 as compared with 2006.

The 2007 and 2006 net earned premiums relate primarily to the group and individual long term care businesses.

The net loss increased $131 million in 2007 as compared with 2006.

The increase in net loss was primarily due to the after tax and minority interest loss of $96 million related to the settlement of the IGI contingency.

The IGI contingency related to reinsurance arrangements with respect to personal accident insurance coverages between 1997 and 1999 which were the subject of arbitration proceedings.

CNA reached an agreement in 2007 to settle the arbitration matter for a onetime payment of $250 million, which resulted in an incurred loss, net of reinsurance, of $167 million pretax.

The decreased net investment income included a decline of net investment income in the trading portfolio of $82 million, a significant portion of which was offset by a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.

The trading portfolio supports our pension deposit business, which experienced a decline in net results of $29 million in 2007 compared to 2006.

See the Investments section of this MD&A for further discussion of net investment income and net realized investment results.

MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) 6.

Reinsurance (continued) The amounts in the consolidated balance sheets include the impact of reinsurance.

Information regarding the significant effects of reinsurance was as follows at:

Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting.

The deposit assets on reinsurance were $2.3 billion at both December 31, 2014 and 2013.

The deposit liabilities on reinsurance were $35 million and $37 million at December 31, 2014 and 2013, respectively.7.

Closed Block On April 7, 2000 (the “Demutualization Date”), MLIC converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc.

The conversion was pursuant to an order by the New York Superintendent of Insurance approving MLIC’s plan of reorganization, as amended (the “Plan of Reorganization”).

On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.

Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes.

At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales.

Dividend scales are adjusted periodically to give effect to changes in experience.

The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block.

To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued.

Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders.

If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block.

The closed block will continue in effect as long as any policy in the closed block remains in-force.

The expected life of the closed block is over 100 years.

The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date.

However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below.

The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes.

Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force.

Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes.

If, over the period the closed block remains in

Mondavi produces, markets and sells premium, super-premium and fine California wines under the Woodbridge by Robert Mondavi, Robert Mondavi Private Selection and Robert Mondavi Winery brand names.

Woodbridge and Robert Mondavi Private Selection are the leading premium and super-premium wine brands by volume, respectively, in the United States.

The acquisition of Robert Mondavi supports the Company’s strategy of strengthening the breadth of its portfolio across price segments to capitalize on the overall growth in the premium, super-premium and fine wine categories.

The Company believes that the acquired Robert Mondavi brand names have strong brand recognition globally.

The vast majority of Robert Mondavi’s sales are generated in the United States.

The Company intends to leverage the Robert Mondavi brands in the United States through its selling, marketing and distribution infrastructure.

The Company also intends to further expand distribution for the Robert Mondavi brands in Europe through its Constellation Europe infrastructure.

The Company and Robert Mondavi have complementary businesses that share a common growth orientation and operating philosophy.

The Robert Mondavi acquisition provides the Company with a greater presence in the fine wine sector within the United States and the ability to capitalize on the broader geographic distribution in strategic international markets.

The Robert Mondavi acquisition supports the Company’s strategy of growth and breadth across categories and geographies, and strengthens its competitive position in its core markets.

In particular, the Company believes there are growth opportunities for premium, super-premium and fine wines in the United Kingdom, United States and other wine markets.

Total consideration paid in cash to the Robert Mondavi shareholders was $1,030.7 million.

Additionally, the Company expects to incur direct acquisition costs of $11.2 million.

The purchase price was financed with borrowings under the Company’s 2004 Credit Agreement (as defined in Note 9).

In accordance with the purchase method of accounting, the acquired net assets are recorded at fair value at the date of acquisition.

The purchase price was based primarily on the estimated future operating results of Robert Mondavi, including the factors described above, as well as an estimated benefit from operating cost synergies.

The results of operations of the Robert Mondavi business are reported in the Constellation Wines segment and have been included in the Consolidated Statement of Income since the acquisition date.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the Robert Mondavi acquisition at the date of acquisition.

The Company is in the process of obtaining third-party valuations of certain assets and liabilities, and refining its restructuring plan which is under development and will be finalized during the Company’s year ending February 28, 2006 (see Note19).

Accordingly, the allocation of the purchase price is subject to refinement.

Estimated fair values at December 22, 2004, are as follows: