The table below provides aggregated information on the portion of our obligations to make future payments under existing contracts that have been assumed by United States Steel as of December 31, 2006: Summary of Contractual Cash Obligations Assumed by United States Steel
## Table 0 ##
(a) We anticipate cash payments for interest of $23 million for 2007, $46 million for 2008-2009, $45 million for 2010-2011 and $239 million for the later years to be assumed by United States Steel.
Marathon and United States Steel have entered into a tax sharing agreement that allocates tax liabilities relating to taxable periods ended on or before December 31, 2001.
In 2006 and 2005, in accordance with the terms of the tax sharing agreement, we paid $35 million and $6 million to United States Steel in connection with the settlement with the Internal Revenue Service of the consolidated federal income tax returns of USX Corporation for the years 1995 through 2001.
The final payment of $13 million to United States Steel related to U. S.  federal income tax returns under the tax sharing agreement was made in January 2007.
United States Steel reported in its Form 10-K for the year ended December 31, 2006, that it has significant restrictive covenants related to its indebtedness including cross-default and cross-acceleration clauses on selected debt that could have an adverse effect on its financial position and liquidity.
However, United States Steel management believes that its liquidity will be adequate to satisfy its obligations for the foreseeable future.
Transactions with Related Parties We own a 63 percent working interest in the Alba field offshore Equatorial Guinea.
We own a 52 percent interest in an onshore LPG processing plant in EG through an equity method investee, Alba Plant LLC.
Additionally, we own a 45 percent interest in an onshore methanol production plant through AMPCO, an equity method investee.
We sell our marketed natural gas from the Alba field to Alba Plant LLC and AMPCO.
AMPCO uses the natural gas to manufacture methanol and sells the methanol through another equity method investee, AMPCO Marketing LLC.
Sales to our 50 percent equity method investee, PTC, which consists primarily of refined petroleum products, accounted for two percent or less of our total sales revenue for 2006, 2005 and 2004.
PTC is the largest travel center network in the United States and operates 269 travel centers in the United States and Canada.
Prior to the Acquisition on June 30, 2005, Ashland was a related party as a result of its 38 percent minority interest in MPC.
During that time, we sold refined petroleum products consisting mainly of petrochemicals, base lube oils and asphalt to Ashland.
Our sales to Ashland accounted for less than one percent of our total sales revenue for 2005 and 2004.
We believe that these transactions were conducted under terms comparable to those with unrelated parties.
Marathon holds a 60 percent interest, SONAGAS holds a 25 percent interest, Mitsui holds an 8.5 percent interest and Marubeni holds a 6.5 percent interest in EGHoldings.
As of December 31, 2006, total expenditures of $1.363 billion, including $1.300 billion of capital expenditures, related to the Equatorial Guinea LNG production facility have been incurred.
Cash of $234 million held in escrow to fund future contributions from SONAGAS to EGHoldings is classified as restricted cash and is included in investments and long-term receivables as of December 31, 2006.
Our current receivables from and payables to the interest holders in EGHoldings are $13 million and $232 million as of December 31, 2006, including a payable to SONAGAS of $229 million.
Management’s Discussion and Analysis of Environmental Matters, Litigation and Contingencies We have incurred and will continue to incur substantial capital, operating and maintenance, and remediation expenditures as a result of environmental laws and regulations.
If these expenditures, as with all costs, are not ultimately reflected in the prices of our products and services, our operating results will be adversely affected.
We believe that substantially all of our competitors must comply with similar environmental laws and regulations.
However, the specific impact on each competitor may vary depending on a number of factors, including the age and
Consolidated Statements of Stockholders’ Equity
## Table 1 ##
(a) On March 31, 2004, Marathon issued 34,500,000 shares of its common stock at the offering price of $30 per share and recorded net proceeds of $1.004 billion.
On June 30, 2005, in connection with the acquisition of Ashland Inc. ’s minority interest in Marathon Petroleum Company LLC, Marathon distributed 17,538,815 shares of its common stock valued at $54.45 per share to Ashland’s shareholders.
The accompanying notes are an integral part of these consolidated financial statements
Transactions arising from all matching buy/sell arrangements entered into before April 1, 2006 will continue to be reported as separate sale and purchase transactions.
The adoption of EITF Issue No.04-13 and the change in the accounting for nontraditional derivative instruments had no effect on net income.
The amounts of revenues and cost of revenues recognized after April 1, 2006 are less than the amounts that would have been recognized under previous accounting practices.
SFAS No.123 (Revised 2004) – In December 2004, the FASB issued SFAS No.123(R), ‘‘Share-Based Payment,’’ as a revision of SFAS No.123, ‘‘Accounting for Stock-Based Compensation.
’’ This statement requires entities to measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date.
That cost is recognized over the period during which an employee is required to provide service in exchange for the award, usually the vesting period.
In addition, awards classified as liabilities are remeasured at fair value each reporting period.
Marathon had previously adopted the fair value method under SFAS No.123 for grants made, modified or settled on or after January 1, 2003.
SFAS No.123(R) also requires a company to calculate the pool of excess tax benefits available to absorb tax deficiencies recognized subsequent to adopting the statement.
In November 2005, the FASB issued FSP No.123R-3, ‘‘Transition Election Related to Accounting for the Tax Effects of Share-Based Payment Awards,’’ to provide an alternative transition election (the ‘‘short-cut method’’) to account for the tax effects of share-based payment awards to employees.
Marathon elected the long-form method to determine its pool of excess tax benefits as of January 1, 2006.
Marathon adopted SFAS No.123(R) as of January 1, 2006, for all awards granted, modified or cancelled after adoption and for the unvested portion of awards outstanding at January 1, 2006.
At the date of adoption, SFAS No.123(R) requires that an assumed forfeiture rate be applied to any unvested awards and that awards classified as liabilities be measured at fair value.
Prior to adopting SFAS No.123(R), Marathon recognized forfeitures as they occurred and applied the intrinsic value method to awards classified as liabilities.
The adoption did not have a significant effect on Marathon’s consolidated results of operations, financial position or cash flows.
SFAS No.151 – Effective January 1, 2006, Marathon adopted SFAS No.151, ‘‘Inventory Costs – an amendment of ARB No.43, Chapter 4.
’’ This statement requires that items such as idle facility expense, excessive spoilage, double freight and re-handling costs be recognized as a current-period charge.
The adoption did not have a significant effect on Marathon’s consolidated results of operations, financial position or cash flows.
SFAS No.154 – Effective January 1, 2006, Marathon adopted SFAS No.154, ‘‘Accounting Changes and Error Corrections – A Replacement of APB Opinion No.20 and FASB Statement No.3.
’’ SFAS No.154 requires companies to recognize (1) voluntary changes in accounting principle and (2) changes required by a new accounting pronouncement, when the pronouncement does not include specific transition provisions, retrospectively to prior periods’ financial statements, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change.
FIN No.47 – In March 2005, the FASB issued FASB Interpretation (‘‘FIN’’) No.47, ‘‘Accounting for Conditional Asset Retirement Obligations – an interpretation of FASB Statement No.143.
’’ This interpretation clarifies that an entity is required to recognize a liability for a legal obligation to perform asset retirement activities when the retirement is conditional on a future event if the liability’s fair value can be reasonably estimated.
If the liability’s fair value cannot be reasonably estimated, then the entity must disclose (1) a description of the obligation, (2) the fact that a liability has not been recognized because the fair value cannot be reasonably estimated and (3) the reasons why the fair value cannot be reasonably estimated.
FIN No.47 also clarifies when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation.
Marathon adopted FIN No.47 as of December 31, 2005.
A charge of $19 million, net of taxes of $12 million, related to adopting FIN No.47 was recognized as a cumulative effect of a change in accounting principle in 2005.
At the time of adoption, total assets increased $22 million and total liabilities increased $41 million.
The pro forma net income and net income per share effect as if FIN No.47 had been applied during 2005 and 2004 is not significantly different than amounts reported.
The following summarizes the total amount of the liability for asset retirement obligations as if FIN No.47 had been applied during all periods presented.
The pro forma impact of the adoption of FIN No.47 on these unaudited pro forma liability amounts has been measured using the information, assumptions and interest rates used to measure the obligation recognized upon adoption of FIN No.47.
@T@SFAS No.153 – Marathon adopted SFAS No.153, ‘‘Exchanges of Nonmonetary Assets – an amendment of APB Opinion No.29,’’ on a prospective basis as of July 1, 2005.
This amendment eliminates the APB Opinion No.29 exception for fair value recognition of nonmonetary exchanges of similar productive assets and replaces it with an exception for exchanges of nonmonetary assets that do not have commercial substance.
FSP No.
FAS 19-1 – Effective January 1, 2005, Marathon adopted FSP No.
FAS 19-1, ‘‘Accounting for Suspended Well Costs,’’ which amended the guidance for suspended exploratory well costs in SFAS No.19, ‘‘Financial Accounting and Reporting by Oil and Gas Producing Companies.
’’ SFAS No.19 requires costs of drilling exploratory wells to be capitalized pending determination of whether the well has found proved reserves.
When a classification of proved
## Table 2 ##

<table><tr><td><i>(In millions)</i>  </td><td> Total </td><td> 2007 </td><td> 2008- 2009 </td><td> 2010- 2011 </td><td> Later Years </td></tr><tr><td> Contractual obligations assumed by United States Steel</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term debt<sup>(a)</sup></td><td>$415</td><td>$–</td><td>$–</td><td>$–</td><td>$415</td></tr><tr><td>Sale-leaseback financing (includes imputed interest)</td><td>75</td><td>20</td><td>22</td><td>22</td><td>11</td></tr><tr><td>Capital lease obligations</td><td>58</td><td>10</td><td>19</td><td>19</td><td>10</td></tr><tr><td>Operating lease obligations</td><td>3</td><td>3</td><td>–</td><td>–</td><td>–</td></tr><tr><td>Operating lease obligations under sublease</td><td>30</td><td>5</td><td>10</td><td>10</td><td>5</td></tr><tr><td> Total contractual obligations assumed by United States Steel</td><td>$581</td><td>$38</td><td>$51</td><td>$51</td><td>$441</td></tr></table>
<table><tr><td> </td><td colspan="3">Stockholders' Equity</td><td colspan="3">Shares in thousands</td></tr><tr><td><i>(Dollars in millions, except per share data) </i> </td><td>2006</td><td>2005</td><td>2004</td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td> Common stock issued</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$367</td><td>$347</td><td>$312</td><td>366,926</td><td>346,718</td><td>312,166</td></tr><tr><td>Issuances<sup>(a)</sup></td><td>1</td><td>20</td><td>35</td><td>926</td><td>20,208</td><td>34,552</td></tr><tr><td>Balance at end of year</td><td>$368</td><td>$367</td><td>$347</td><td>367,852</td><td>366,926</td><td>346,718</td></tr><tr><td> Common stock held in treasury, at cost</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$-8</td><td>$-1</td><td>$-46</td><td>-180</td><td>-35</td><td>-1,744</td></tr><tr><td>Repurchases</td><td>-1,698</td><td>-7</td><td>-4</td><td>-20,745</td><td>-10</td><td>-129</td></tr><tr><td>Reissuances for employee stock plans</td><td>68</td><td>–</td><td>49</td><td>844</td><td>-135</td><td>1,838</td></tr><tr><td>Balance at end of year</td><td>$-1,638</td><td>$-8</td><td>$-1</td><td>-20,081</td><td>-180</td><td>-35</td></tr><tr><td> </td><td></td><td></td><td></td><td colspan="3">Comprehensive Income</td></tr><tr><td>  </td><td></td><td></td><td></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td> Additional paid-in capital</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$5,111</td><td>$4,028</td><td>$3,033</td><td></td><td></td><td></td></tr><tr><td>Stock issuances<sup>(a)</sup></td><td>-7</td><td>1,048</td><td>983</td><td></td><td></td><td></td></tr><tr><td>Stock-based compensation expense</td><td>48</td><td>35</td><td>12</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$5,152</td><td>$5,111</td><td>$4,028</td><td></td><td></td><td></td></tr><tr><td> Unearned compensation</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$-20</td><td>$-9</td><td>$-9</td><td></td><td></td><td></td></tr><tr><td>Change in accounting principle</td><td>20</td><td>–</td><td>–</td><td></td><td></td><td></td></tr><tr><td>Changes during year</td><td>–</td><td>-11</td><td>–</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$–</td><td>$-20</td><td>$-9</td><td></td><td></td><td></td></tr><tr><td> Retained earnings</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$6,406</td><td>$3,810</td><td>$2,897</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>5,234</td><td>3,032</td><td>1,261</td><td>$5,234</td><td>$3,032</td><td>$1,261</td></tr><tr><td>Dividends paid (per share: $1.53 in 2006, $1.22 in 2005 and $1.03 in 2004)</td><td>-547</td><td>-436</td><td>-348</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$11,093</td><td>$6,406</td><td>$3,810</td><td></td><td></td><td></td></tr><tr><td> Accumulated other comprehensive loss</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Minimum pension liability adjustments:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$-141</td><td>$-71</td><td>$-93</td><td></td><td></td><td></td></tr><tr><td>Changes during year, net of tax of $74, $42 and $3</td><td>114</td><td>-70</td><td>22</td><td>114</td><td>-70</td><td>22</td></tr><tr><td>Reclassification to defined benefit postretirement plans</td><td>27</td><td>–</td><td>–</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$–</td><td>$-141</td><td>$-71</td><td></td><td></td><td></td></tr><tr><td>Defined benefit postretirement plans:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$–</td><td>$–</td><td>$–</td><td></td><td></td><td></td></tr><tr><td>Reclassification from minimum pension liability adjustments</td><td>-27</td><td>–</td><td>–</td><td></td><td></td><td></td></tr><tr><td>Change in accounting principle, net of tax of $289</td><td>-348</td><td>–</td><td>–</td><td></td><td></td><td></td></tr><tr><td>Balance at end of year</td><td>$-375</td><td>$–</td><td>$–</td><td></td><td></td><td></td></tr><tr><td>Deferred gains (losses) on derivative instruments:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$-5</td><td>$12</td><td>$-15</td><td></td><td></td><td></td></tr><tr><td>Reclassification of the cumulative effect adjustment into net income, net of tax of $–, $– and $1</td><td>-2</td><td>-2</td><td>-3</td><td>-2</td><td>-2</td><td>-3</td></tr><tr><td>Changes in fair value, net of tax of $1, $3 and $20</td><td>4</td><td>-15</td><td>-82</td><td>4</td><td>-15</td><td>-82</td></tr><tr><td>Reclassification to net income, net of tax of $–, $– and $30</td><td>1</td><td>–</td><td>112</td><td>1</td><td>–</td><td>112</td></tr><tr><td>Balance at end of year</td><td>$-2</td><td>$-5</td><td>$12</td><td></td><td></td><td></td></tr><tr><td>Other:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at beginning of year</td><td>$-5</td><td>$-5</td><td>$-4</td><td></td><td></td><td></td></tr><tr><td>Changes during year, net of tax of $8, $– and $–</td><td>14</td><td>–</td><td>-1</td><td>9</td><td>–</td><td>-1</td></tr><tr><td>Balance at end of year</td><td>$9</td><td>$-5</td><td>$-5</td><td></td><td></td><td></td></tr><tr><td>Total at end of year</td><td>$-368</td><td>$-151</td><td>$-64</td><td></td><td></td><td></td></tr><tr><td> Comprehensive income</td><td></td><td></td><td></td><td>$5,360</td><td>$2,945</td><td>$1,309</td></tr><tr><td> Total stockholders' equity</td><td>$14,607</td><td>$11,705</td><td>$8,111</td><td></td><td></td><td></td></tr><tr><td colspan="7">(a) On March 31, 2004, Marathon issued 34,500,000 shares of its common stock at the offering price of $30 per share and recorded net proceeds of $1.004 billion. On June 30, 2005, in connectionwith the acquisition of Ashland Inc.'s minority interest in Marathon Petroleum Company LLC, Marathon distributed 17,538,815 shares of its common stock valued at $54.45 per share to Ashland's shareholders.</td></tr></table>
<table><tr><td>December 31, 2003</td><td>$438</td></tr><tr><td>December 31, 2004</td><td>527</td></tr><tr><td>December 31, 2005</td><td>711</td></tr></table>

Question: by what percentage did total amount of the liability for asset retirement obligations increase from 2004 to 2005?