Income Taxes American Water and its subsidiaries participate in a consolidated federal income tax return for U. S.  tax purposes.
Members of the consolidated group are charged with the amount of federal income tax expense determined as if they filed separate returns.
Certain income and expense items are accounted for in different time periods for financial reporting than for income tax reporting purposes.
The Company provides deferred income taxes on the difference between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements.
These deferred income taxes are based on the enacted tax rates expected to be in effect when these temporary differences are projected to reverse.
In addition, the regulated utility subsidiaries recognize regulatory assets and liabilities for the effect on revenues expected to be realized as the tax effects of temporary differences, previously flowed through to customers, reverse.
Investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets.
The Company recognizes accrued interest and penalties related to tax positions as a component of income tax expense and accounts for sales tax collected from customers and remitted to taxing authorities on a net basis.
See Note 13—Income Taxes.
Allowance for Funds Used During Construction AFUDC is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction.
The regulated utility subsidiaries record AFUDC to the extent permitted by the PUCs.
The portion of AFUDC attributable to borrowed funds is shown as a reduction of interest, net in the accompanying Consolidated Statements of Operations.
Any portion of AFUDC attributable to equity funds would be included in other income (expenses) in the accompanying Consolidated Statements of Operations.
AFUDC is summarized in the following table for the years ended December 31:
## Table 0 ##
Environmental Costs The Company’s water and wastewater operations and the operations of its Market-Based Businesses are subject to U. S.  federal, state, local and foreign requirements relating to environmental protection, and as such, the Company periodically becomes subject to environmental claims in the normal course of business.
Environmental expenditures that relate to current operations or provide a future benefit are expensed or capitalized as appropriate.
Remediation costs that relate to an existing condition caused by past operations are accrued, on an undiscounted basis, when it is probable that these costs will be incurred and can be reasonably estimated.
A conservation agreement entered into by a subsidiary of the Company with the National Oceanic and Atmospheric Administration in 2010 and amended in 2017 required the Company to, among other provisions, implement certain measures to protect the steelhead trout and its habitat in the Carmel River watershed in the State of California.
The Company agreed to pay $1 million annually commencing in 2010 with the final payment being made in 2021.
Remediation costs accrued amounted to $6 million and less than $1 million as of December 31, 2017 and 2016, respectively.
Derivative Financial Instruments The Company uses derivative financial instruments for purposes of hedging exposures to fluctuations in interest rates.
These derivative contracts are entered into for periods consistent with the related underlying
NOTE 20.
DERIVATIVES We are exposed to financial risk resulting from volatility in foreign exchange rates, commodity prices and interest rates.
This risk is closely monitored and managed through the use of financial derivative instruments including foreign currency forward contracts, commodity swap contracts and interest rate swaps.
As stated in our policies and procedures, financial derivatives are used expressly for hedging purposes, and under no circumstances are they used for speculative purposes.
When material, we adjust the value of our derivative contracts for counterparty or our credit risk.
Foreign Exchange Rates As a result of our international business presence, we are exposed to foreign currency exchange risks.
We transact business in foreign currencies and, as a result, our income experiences some volatility related to movements in foreign currency exchange rates.
To help manage our exposure to exchange rate volatility, we use foreign exchange forward contracts on a regular basis to hedge forecasted intercompany and third-party sales and purchases denominated in non-functional currencies.
Our internal policy allows for managing anticipated foreign currency cash flows for up to one year.
These foreign currency forward contracts are designated and qualify as foreign currency cash flow hedges under GAAP.
The effective portion of the unrealized gain or loss on the forward contract is deferred and reported as a component of “Accumulated other comprehensive loss” (AOCL).
When the hedged forecasted transaction (sale or purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income.
The ineffective portion of the hedge, unrealized gain or loss, if any, is recognized in current income during the period of change.
As of December 31, 2011, the amount we expect to reclassify from AOCL to income over the next year is an unrealized net loss of $6 million.
For the years ended December 31, 2011 and 2010, there were no circumstances that would have resulted in the discontinuance of a foreign currency cash flow hedge.
To minimize the income volatility resulting from the remeasurement of net monetary assets and payables denominated in a currency other than the functional currency, we enter into foreign currency forward contracts, which are considered economic hedges.
The objective is to offset the gain or loss from remeasurement with the gain or loss from the fair market valuation of the forward contract.
These derivative instruments are not designated as hedges under GAAP.
The table below summarizes our outstanding foreign currency forward contracts.
Only the U. S.  dollar forward contracts are designated and qualify for hedge accounting as of each period presented below.
The currencies in this table represent 98 percent and 97 percent of the notional amounts of contracts outstanding as of December 31, 2011 and 2010.
## Table 1 ##
Commodity Price Risk We are exposed to fluctuations in commodity prices due to contractual agreements with component suppliers.
In order to protect ourselves against future price volatility and, consequently, fluctuations in gross margins, we periodically enter into commodity swap contracts with designated banks to fix the cost of certain raw material purchases with the objective of minimizing changes in inventory cost due to market price fluctuations.
Certain commodity swap contracts are derivative contracts that are designated as cash flow hedges under GAAP.
We also have commodity swap contracts that represent an economic hedge, however do not qualify for hedge accounting and are marked to market through earnings.
For those contracts that qualify for hedge accounting, the effective portion of the unrealized gain or loss is deferred and reported as a component of AOCL.
When the hedged forecasted transaction (purchase) occurs, the unrealized gain or loss is reclassified into income in the same line item associated with the hedged transaction in the same period or periods during which the hedged transaction affects income.
The ineffective portion of the hedge, if any, is recognized in current income in the period in which the ineffectiveness occurs.
As of December 31, 2011, we expect to reclassify an unrealized net loss of $11 million from AOCL to income over the next year.
Our internal policy allows for managing these cash flow hedges for up to three years.
Fuel systems business sales increased primarily due to improved OEM first fit sales in China and the aftermarket recovery in North America, which was partially offset by decreased first fit sales in North America.
Segment EBIT Components segment EBIT almost tripled versus 2009, primarily due to the improved gross margin which was partially offset by increased selling, general and administrative expenses and research, development and engineering expenses.
Changes in Components segment EBIT and EBIT as a percentage of sales were as follows:
## Table 2 ##
The increase in gross margin was due to higher volumes for all businesses, increased aftertreatment content on 2010 North American truck engines and efficiencies gained from restructuring actions partially offset by higher commodity costs and warranty expenses.
The increase in selling, general and administrative expenses and research, development and engineering expenses were primarily due to increased variable compensation which resulted from the segment’s strong performance; other people costs and new product development program spending.
The increase in equity, royalty and interest income from investees was driven by improved joint venture income from the filtration business in China and India.
Power Generation Segment Results Financial data for the Power Generation segment was as follows:
## Table 3 ##
Sales for our Power Generation segment by business were as follows:
## Table 4 ##
A reconciliation of the U. S.  federal income tax rate of 35 percent to the actual effective tax rate is as follows:

<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Allowance for other funds used during construction</td><td>$19</td><td>$15</td><td>$13</td></tr><tr><td>Allowance for borrowed funds used during construction</td><td>8</td><td>6</td><td>8</td></tr></table>
<table><tr><td> </td><td colspan="2"> Notional amount in millions</td></tr><tr><td> Currency denomination</td><td> December 31, 2011</td><td> December 31, 2010</td></tr><tr><td>United States Dollar (USD)</td><td> 181</td><td>142</td></tr><tr><td>British Pound Sterling (GBP)</td><td> 347</td><td>87</td></tr><tr><td>Euro (EUR)</td><td> 47</td><td>46</td></tr><tr><td>Singapore Dollar (SGD)</td><td> 20</td><td>17</td></tr><tr><td>Indian Rupee (INR)</td><td> 1,701</td><td>1,275</td></tr><tr><td>Japanese Yen (JPY)</td><td> 3,348</td><td>3,722</td></tr><tr><td>Canadian Dollar (CAD)</td><td> 39</td><td>39</td></tr><tr><td>South Korea Won (KRW)</td><td> 36,833</td><td>28,028</td></tr><tr><td>Chinese Renmimbi (CNY)</td><td> 61</td><td>60</td></tr></table>
<table><tr><td> </td><td colspan="3"> Year ended December 31, 2010 vs. 2009 Favorable/(Unfavorable) Change</td></tr><tr><td> In millions </td><td>Amount</td><td>Percent</td><td> Percentage point change as a percent of sales</td></tr><tr><td>Gross margin</td><td>$233</td><td>67%</td><td>4.3</td></tr><tr><td>Selling, general and administrative expenses</td><td>-44</td><td>-24%</td><td>0.3</td></tr><tr><td>Research, development and engineering expenses</td><td>-26</td><td>-30%</td><td>—</td></tr><tr><td>Equity, royalty and interest income from investees</td><td>10</td><td>77%</td><td>0.2</td></tr></table>
<table><tr><td> </td><td></td><td></td><td></td><td colspan="4">Favorable/(Unfavorable)</td></tr><tr><td> </td><td colspan="3">Years ended December 31,</td><td colspan="2">2011 vs. 2010</td><td colspan="2">2010 vs. 2009</td></tr><tr><td> In millions </td><td>2011</td><td>2010</td><td>2009</td><td>Amount</td><td>Percent</td><td>Amount</td><td>Percent</td></tr><tr><td>External sales</td><td>$2,492</td><td>$2,150</td><td>$1,879</td><td>$342</td><td>16%</td><td>$271</td><td>14%</td></tr><tr><td>Intersegment sales</td><td>1,006</td><td>769</td><td>538</td><td>237</td><td>31%</td><td>231</td><td>43%</td></tr><tr><td>Total sales</td><td>3,498</td><td>2,919</td><td>2,417</td><td>579</td><td>20%</td><td>502</td><td>21%</td></tr><tr><td>Depreciation and amortization</td><td>42</td><td>41</td><td>49</td><td>-1</td><td>-2%</td><td>8</td><td>16%</td></tr><tr><td>Research, development and engineering expenses</td><td>54</td><td>36</td><td>33</td><td>-18</td><td>-50%</td><td>-3</td><td>-9%</td></tr><tr><td>Equity, royalty and interest income from investees</td><td>47</td><td>35</td><td>22</td><td>12</td><td>34%</td><td>13</td><td>59%</td></tr><tr><td>Interest income</td><td>8</td><td>5</td><td>3</td><td>3</td><td>60%</td><td>2</td><td>67%</td></tr><tr><td>Segment EBIT</td><td>373</td><td>299</td><td>167</td><td>74</td><td>25%</td><td>132</td><td>79%</td></tr><tr><td></td><td></td><td></td><td></td><td>Percentage Points</td><td></td><td>Percentage Points</td><td></td></tr><tr><td>Segment EBIT as a percentage of total sales</td><td>10.7%</td><td>10.2%</td><td>6.9%</td><td></td><td>0.5</td><td></td><td>3.3</td></tr></table>
<table><tr><td> </td><td> </td><td> </td><td> </td><td colspan="4">Favorable/(Unfavorable)</td></tr><tr><td> </td><td colspan="3"> Years ended December 31,</td><td colspan="2">2011 vs. 2010</td><td colspan="2">2010 vs. 2009</td></tr><tr><td> In millions </td><td> 2011</td><td> 2010</td><td> 2009</td><td> Amount</td><td>Percent</td><td>Amount</td><td>Percent</td></tr><tr><td>Commercial products</td><td>$2,230</td><td>$1,831</td><td>$1,456</td><td>$399</td><td>22%</td><td>$375</td><td>26%</td></tr><tr><td>Generator technologies</td><td>673</td><td>549</td><td>512</td><td>124</td><td>23%</td><td>37</td><td>7%</td></tr><tr><td>Commercial projects</td><td>243</td><td>222</td><td>177</td><td>21</td><td>9%</td><td>45</td><td>25%</td></tr><tr><td>Consumer</td><td>200</td><td>186</td><td>140</td><td>14</td><td>8%</td><td>46</td><td>33%</td></tr><tr><td>Power electronics</td><td>152</td><td>131</td><td>132</td><td>21</td><td>16%</td><td>-1</td><td>-1%</td></tr><tr><td>Total sales</td><td>$3,498</td><td>$2,919</td><td>$2,417</td><td>$579</td><td>20%</td><td>$502</td><td>21%</td></tr></table>

Question: If Commercial products develops with the same increasing rate in 2011, what will it reach in 2012? (in millions)