ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Quantitative Disclosures We are exposed to market risks inherent in our operations, primarily related to interest rate risk and currency risk.
These risks arise from transactions and operations entered into in the normal course of business.
We do not use derivatives to alter the interest characteristics of our marketable securities or our debt instruments.
We have no holdings of derivative or commodity instruments.
Interest Rate Risk.
We are subject to interest rate risks on cash and cash equivalents, available-for-sale marketable securities, existing long-term debts and any future financing requirements.
Interest rate risks related to marketable securities are managed by monitoring maturities in our marketable securities portfolio.
Our longterm debt at December 31, 2003 consists of outstanding balances on capital lease obligations of $0.5 million and a $3.3 million equipment-based term loan.
The fair value of our investment portfolio or related income would not be significantly impacted by changes in interest rates since the marketable securities maturities do not exceed fiscal year 2004 and the interest rates are primarily fixed.
Our capital lease obligations of $0.5 million at December 31, 2003 carry fixed interest rates of 6.53% and 11.15% per annum, with principal payments due in 60 and 48 monthly installments, respectively, which began in 2000.
In December 2002, we obtained a $5.0 million equipment-based term loan which accrues interest at a rate of 2.25% above prime.
In December 2002 we had drawn down $5.0 million from the equipment-based term loan.
Principal payments are due in 36 monthly installments which began in January 2003.
The following table presents the future principal cash flows or amounts and related weighted average interest rates expected by year for our existing cash and cash equivalents, marketable securities and long-term debt instruments:
## Table 0 ##
Qualitative Disclosures Interest Rate Risk.
Our primary interest rate risk exposures relate to: ?
A decrease in the value of available-for-sale securities if market interest rates increase; ?
Our ability to pay long-term debts at maturity; and ?
The impact of interest rate movements on our ability to obtain adequate financing to fund future operations.
We have the ability to hold at least a portion of the fixed income investments until maturity.
As a result, we would not expect our operating results or cash flows to be affected to any significant degree by a sudden change in market interest rates on our short- and long-term marketable securities portfolio.
Note: During fiscal 2008, we relocated eight Best Buy stores.
No other store in the Domestic segment was relocated during fiscal 2008.
Fiscal 2008 Results Compared With Fiscal 2007 In fiscal 2008, our Domestic segment’s operating income was $2.0 billion, or 6.0% of revenue, compared with $1.9 billion, or 6.1% of revenue, in fiscal 2007.
The Domestic segment’s operating income rate in fiscal 2008 benefited from revenue gains and an improvement in the SG&A rate, partially offset by a decrease in the gross profit rate.
Our Domestic segment’s revenue in fiscal 2008 increased 7% to $33.3 billion.
Excluding the impact of an extra week of business in fiscal 2007, revenue increased 9% in fiscal 2008.
Excluding the impact of the extra week, the net addition of new stores accounted for nearly eight-tenths of the revenue increase in fiscal 2008; the 1.9% comparable store sales gain accounted for nearly two-tenths of the revenue increase; and the remainder of the revenue increase was due to the non-comparable store sales generated from the acquisition of Speakeasy.
The following table presents the Domestic segment’s revenue mix percentages and comparable store sales percentage changes by revenue category in fiscal 2008 and 2007:
## Table 1 ##
Our Domestic segment’s comparable store sales gain in fiscal 2008 benefited from a higher average transaction amount driven by the continued growth in sales of higher-ticket items, including video gaming hardware, flat-panel televisions and notebook computers.
Also contributing to the fiscal 2008 comparable store sales gain was an increase in online purchases, as we continued to add features and capabilities to our Web sites, including the launch of a Spanish-language version of BestBuy.
com and the ability of our loyalty club members to redeem Reward Zone certificates online.
Revenue from our Domestic segment’s online operations increased approximately 30% in fiscal 2008 and added to the overall comparable store sales increase.
Our Domestic segment’s consumer electronics revenue category posted a 2.4% comparable store sales decline, driven by declines in the sales of tube and projection televisions and MP3 players and accessories, which was offset by gains in the sales of flat-panel televisions and navigation products.
A 7.0% comparable store sales gain in our Domestic segment’s home office revenue category was driven primarily by increased sales of notebook computers.
The comparable store sales gain was partially offset by declines in the sales of desktop computers, printers and monitors.
Our Domestic segment’s entertainment software revenue category recorded a 6.1% comparable store sales gain due primarily to sales growth in video gaming hardware and software, fueled by the increased availability of hardware and a greater selection of software.
The comparable store sales gain was partially offset by continued declines in the sales of CDs and DVDs.
A 5.0% comparable store sales decline in our Domestic segment’s appliances revenue category was driven primarily by declines in the sales of major appliances and small electrics due to soft macro-economic conditions in the housing sector.
Our Domestic segment’s services revenue category recorded a 4.1% comparable store sales gain due primarily to sales growth in home theater installation and computer services, partially offset by declines in the sales of service contracts and extended warranties.
Our Domestic segment’s gross profit rate in fiscal 2008 decreased by 0.3% of revenue to 24.5% of revenue.
The decrease was due primarily to a lower-margin revenue mix, including increased revenue from video gaming hardware and notebook computers.
These declines were partially offset by better promotional spending in home theater, music and movies, as well as lower financing rates and Reward Zone costs.
Our Domestic segment’s SG&A rate in fiscal 2008 decreased by 0.2% of revenue to 18.5% of revenue.
The improvement was due primarily to the leveraging effect of the 7% growth in revenue and store operating model improvements, which includes labor efficiencies and an operating procedure change.
assets (including trade receivables) that are in the scope of the update.
ASU 2016-13 also made amendments to the current impairment model for held-to-maturity and available-for-sale debt securities and certain guarantees.
The guidance will become effective for us on January 1, 2020.
Early adoption is permitted for periods beginning on or after January 1, 2019.
We are evaluating the effect of ASU 2016-13 on our consolidated financial statements.
NOTE 2 — ACQUISITIONS The transactions described below were accounted for as business combinations, which requires that we record the assets acquired and liabilities assumed at fair value as of the acquisition date.
SICOM On October 17, 2018, we acquired SICOM Systems, Inc.  (“SICOM”) for total purchase consideration of $409.2 million, which we funded with cash on hand and by drawing on our Revolving Credit Facility (described in “Note 8 — Long-Term Debt and Lines of Credit”).
SICOM is a provider of end-to-end enterprise, cloud-based software solutions and other technologies to quick service restaurants and food service management companies.
SICOM’s technologies are complementary to our existing Xenial solutions, and we believe this acquisition will expand our software-driven payments strategy by enabling us to increase our capabilities and expand on our existing presence in the restaurant vertical market.
Prior to the acquisition, SICOM was indirectly owned by a private equity investment firm where one of our board members is a partner and investor.
His direct interest in the transaction was approximately $1.1 million, the amount distributed to him based on his investment interest in the fund of the private equity firm that sold SICOM to us.
Based on consideration of all relevant information, the audit committee of our board of directors recommended that the board approve the acquisition of SICOM, which it did.
The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed as of December 31, 2018, including a reconciliation to the total purchase consideration, were as follows (in thousands):
## Table 2 ##
As of December 31, 2018, we considered these balances to be provisional because we were still in the process of determining the final purchase consideration, which is subject to adjustment pursuant to the purchase agreement, and gathering and reviewing information to support the valuations of the assets acquired and liabilities assumed.
Goodwill arising from the acquisition of $264.8 million, included in the North America segment, was attributable to expected growth opportunities, an assembled workforce and potential synergies from combining our existing businesses.
We expect that approximately $50 million of the goodwill from this acquisition will be deductible for income tax purposes.
Additionally during the fourth quarter, a $37 million pre-tax credit ($22 million after taxes) was recorded for refunds received from the Canadian government of duties paid by the Company’s former Weldwood of Canada Limited business and for other smaller items.
During the third quarter of 2006, management had determined there was a current expectation that, more likely than not, the Beverage Packaging and Wood Products businesses would be sold.
Based on the resulting impairment testing, pre-tax impairment charges of $115 million ($82 million after taxes) and $165 million ($165 million after taxes) were recorded to reduce the carrying values of the net assets of the Beverage Packaging and Wood Products businesses, respectively, to their estimated fair values.
Also during the 2006 third quarter, International Paper completed the sale of its interests in a Beverage Packaging operation in Japan for a pre-tax gain of $12 million ($3 million after taxes), and the sale of its Brazilian Coated Papers business to Stora Enso Oyj for approximately $420 million.
This business included a coated paper mill and lumber mill in Aropoti, Parana State, Brazil, as well as 50,000 hectares (approximately 124,000 acres) of forestlands in Parana.
As the Company determined that the accounting requirements under SFAS No.144 for reporting this business as a discontinued operation were met, the resulting $100 million pre-tax gain ($79 million after taxes) was recorded as a gain on sale of a discontinued operation.
During the first quarter of 2006, the Company determined that the accounting requirements under SFAS No.144 for reporting the Kraft Papers business as a discontinued operation were met.
A $100 million pre-tax charge ($61 million after taxes) was recorded to reduce the carrying value of the net assets of this business to their estimated fair value.
During the 2006 second quarter, the Company signed a definitive agreement to sell this business for approximately $155 million in cash, subject to certain closing and post-closing adjustments, and two additional payments totaling up to $60 million payable five years from the date of closing, contingent upon business performance.
A $16 million pre-tax charge ($11 million after taxes) was recorded during the second quarter to further reduce the carrying value of the assets of the Kraft Papers business based on the terms of this definitive agreement.
The sale of this business was subsequently completed on January 2, 2007.
Revenues, earnings (loss) and earnings (loss) per share related to the Beverage Packaging, Wood Products, Brazilian Coated Papers, Kraft Papers and Weldwood of Canada Limited businesses for 2007, 2006 and 2005 were as follows:

<table><tr><td></td><td colspan="7"> Expected Maturity Date (as of December 31, 2003) </td></tr><tr><td></td><td>2004</td><td>2005</td><td> 2006 </td><td> 2007 </td><td> 2008 </td><td> Total </td><td> Fair Value </td></tr><tr><td></td><td colspan="7"> (in thousands)</td></tr><tr><td> ASSETS:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$45,378</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$45,378</td><td>$45,378</td></tr><tr><td>Short-term marketable securities</td><td>2,292</td><td>—</td><td>—</td><td>—</td><td>—</td><td>2,292</td><td>2,292</td></tr><tr><td>Weighted average interest rate</td><td>1.16%</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td> LIABILITIES:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Equipment-based term loan</td><td>$1,667</td><td>$1,667</td><td>$—</td><td>$—</td><td>$—</td><td>$3,334</td><td>$3,334</td></tr><tr><td>Fixed rate debt lease obligation</td><td>322</td><td>182</td><td>—</td><td>—</td><td>—</td><td>504</td><td>504</td></tr><tr><td>Weighted average interest rate</td><td>6.5%</td><td>6.5%</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr></table>
<table><tr><td></td><td colspan="2">Revenue Mix Summary Year Ended</td><td colspan="2">Comparable Store Sales Summary Year Ended</td></tr><tr><td></td><td>March 1, 2008</td><td>March 3, 2007</td><td>March 1, 2008</td><td>March 3, 2007</td></tr><tr><td>Consumer electronics</td><td>41%</td><td>42%</td><td>-2.4%</td><td>8.3%</td></tr><tr><td>Home office</td><td>28%</td><td>27%</td><td>7.0%</td><td>-1.2%</td></tr><tr><td>Entertainment software</td><td>20%</td><td>19%</td><td>6.1%</td><td>2.4%</td></tr><tr><td>Appliances</td><td>5%</td><td>6%</td><td>-5.0%</td><td>-1.7%</td></tr><tr><td>Services</td><td>6%</td><td>5%</td><td>4.1%</td><td>9.0%</td></tr><tr><td>Other</td><td><1%</td><td><1%</td><td>n/a</td><td>n/a</td></tr><tr><td>Total</td><td>100%</td><td>100%</td><td>1.9%</td><td>4.1%</td></tr></table>
<table><tr><td>Cash and cash equivalents</td><td>$7,540</td></tr><tr><td>Property and equipment</td><td>5,943</td></tr><tr><td>Identified intangible assets</td><td>188,294</td></tr><tr><td>Other assets</td><td>22,278</td></tr><tr><td>Deferred income taxes</td><td>-48,448</td></tr><tr><td>Other liabilities</td><td>-31,250</td></tr><tr><td>Total identifiable net assets</td><td>144,357</td></tr><tr><td>Goodwill</td><td>264,844</td></tr><tr><td>Total purchase consideration</td><td>$409,201</td></tr></table>

Question: what is the percent of assets are definitive net assets?