Management?s Discussion and Analysis of Financial Condition and Results of Operations are included in unamortized net gains and losses.
Unamortized gains and losses are amortized over future periods and, therefore, generally affect our recognized expense in future periods.
See Note 23 of the Notes to the Financial Statements for more information regarding costs and assumptions for employee retirement benefits.
Sensitivity Analysis.
The December 31, 2005 funded status of our pension plans is affected by December 31, 2005 assumptions.
Pension expense for 2005 is based on the plan design and assumptions as of December 31, 2004.
Note that these sensitivities may be asymmetric, and are specific to 2005.
They also may not be additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the individual sensitivities shown.
The effect of the indicated increase/(decrease) in selected factors is shown below (in millions):
## Table 0 ##
The foregoing indicates that changes in the discount rate and return on assets can have a significant effect on the funded status of our pension plans, stockholders' equity and expense.
We cannot predict these changes in discount rates or investment returns and, therefore, cannot reasonably estimate whether adjustments to our stockholders' equity for minimum pension liability in subsequent years will be significant.
Other Postretirement Employee Benefits (Retiree Health Care and Life Insurance) Nature of Estimates Required.
The estimation of our obligations, costs and liabilities associated with other postretirement employee benefits ("OPEB") (i. e. , retiree health care and life insurance) requires that we make use of estimates of the present value of the projected future payments to all participants, taking into consideration the likelihood of potential future events such as health care cost increases, salary increases and demographic experience, which may have an effect on the amount and timing of future payments.
Assumptions and Approach Used.
The assumptions used in developing the required estimates include the following key factors: ?
Discount rates ?
Salary growth ?
Retirement rates ?
Expected contributions ?
Health care cost trends ?
Expected return on plan assets ?
Mortality rates Our health care cost trend assumptions are developed based on historical cost data, the near-term outlook, anticipated efficiencies and other cost-mitigation actions (including eligibility management, employee education and wellness, competitive sourcing and appropriate employee cost sharing) and an assessment of likely long-term trends.
We base the discount rate assumption primarily on the results of a cash flow matching analysis, which matches the future cash outflows for each plan to a yield curve comprised of high quality bonds specific to the country of the plan.
The salary growth assumptions reflect our long-term actual experience, the near-term outlook and assumed inflation.
The expected return on plan assets assumption reflects historical plan returns and inputs from a range of internal and external advisors for capital market returns, inflation, bond yields, and other variables, adjusted for specific aspects of our investment strategy.
We also consider peer data in setting the expected return on asset assumption.
The expected amount and timing of contributions is based on an assessment of cash availability and other considerations (e. g. , funded status and tax efficiency).
Retirement and mortality rates are developed to reflect actual and projected plan experience.
Plan obligations and costs are based on existing retirement plan provisions.
No assumption is made regarding any potential future changes to benefit provisions beyond those to which we are presently committed (e. g. , in existing labor contracts).
The effects of actual results differing from our assumptions and the effects of changing assumptions are included in unamortized net gains and losses.
Unamortized gains and losses are amortized over future periods and, therefore, generally affect our recognized expense in future periods.
Management?s Discussion and Analysis of Financial Condition and Results of Operations See Note 23 of the Notes to the Financial Statements for more information regarding costs and assumptions for other postretirement benefits.
Sensitivity Analysis.
The December 31, 2005 OPEB obligation is affected by December 31, 2005 assumptions.
OPEB expense for 2005 is based on the plan design and assumptions as of December 31, 2004.
Note that these sensitivities may be asymmetric, and are specific to 2005.
They are not additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the individual sensitivities shown.
The effect of the indicated increase/(decrease) in selected assumptions is shown below (in millions):
## Table 1 ##
Allowance for Credit Losses — Financial Services Sector The allowance for credit losses is Ford Credit's estimate of credit losses related to impaired finance receivables and operating leases at the date of the financial statements.
Ford Credit monitors credit loss performance monthly and assesses the adequacy of its allowance for credit losses quarterly.
Because credit losses can vary substantially over time, estimating credit losses requires a number of assumptions about matters that are uncertain.
Nature of Estimates Required.
Ford Credit estimates the credit losses related to impaired finance receivables and operating leases by evaluating several factors including historical credit loss trends, the credit quality of its present portfolio, trends in historical and projected used vehicle values and general economic measures.
Assumptions Used.
Ford Credit makes projections of two key assumptions: ?
Frequency.
The number of finance receivables and operating lease contracts that it expects will default over a period of time, measured as repossessions; and ?
Loss severity.
The expected difference between the amount a customer owes Ford Credit when it charges off the finance contract and the amount it receives, net of expenses, from selling the repossessed vehicle, including any recoveries from the customer.
Ford Credit uses these assumptions to assist in setting its allowance for credit losses.
See Note 14 of the Notes to the Financial Statements for more information regarding allowance for credit losses.
Sensitivity Analysis.
Changes in the assumptions used to derive frequency and severity would affect the allowance for credit losses.
The effect of the indicated increase/decrease in the assumptions is shown below for Ford, Lincoln and Mercury brand vehicles in the United States (in millions):
## Table 2 ##
* Reflects the number of finance receivables and operating lease contracts that we expect will default over a period of time relative to the average number of contracts outstanding.
Changes in our assumptions affect the Provision for credit losses on our income statement and the allowance for credit losses contained within Finance receivables, net on our balance sheet.
Notes to the Financial Statements NOTE 15.
ACCRUED LIABILITIES AND DEFERRED REVENUE (in millions)
## Table 3 ##
NOTE 16.
DEBT AND COMMITMENTS Debt at December 31 was as follows (in millions):
## Table 4 ##
Notes to the Financial Statements NOTE 23.
RETIREMENT BENEFITS (Continued) A one percentage point increase/(decrease) in the assumed health care cost trend rates would increase/(decrease) the postretirement health care benefit obligation by approximately $4.9 billion/$(3.9) billion and the service and interest component of health care expense by $490 million/$(380) million.
The actual retiree health care cost trend for 2005 was 2%, primarily reflecting lower than expected drug costs and continued administrative efficiencies (e. g. , competitive sourcing and pricing).
The actual retiree health care cost trend for 2004 was 9%.
Plan Contributions Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations, and union agreements.
We do from time to time make contributions beyond those legally required.
Pension.
In 2005, we made $2.5 billion of cash contributions to our funded pension plans.
During 2006, we expect to contribute $1.5 billion to our worldwide pension plans, including about $300 million of benefit payments paid directly by us for unfunded plans.
Based on current assumptions and regulations, we do not expect to have a legal requirement to fund our major U. S.  pension plans in 2006.
Health Care and Life Insurance.
In 2005, we contributed $200 million to our previously established VEBA for U. S.  hourly retiree health care and life insurance benefits.
During 2006, we do not expect to contribute to the VEBA.
Estimated Future Benefit Payments The following table presents estimated future gross benefit payments and subsidy receipts related to the Medicare Prescription Drug Improvement and Modernization Act of 2003 (in millions):
## Table 5 ##
Plan Asset Information Pension.
Our investment strategy for pension assets has a long-term horizon and is tolerant of return volatility, in keeping with the long-term nature of the liabilities.
The target asset allocation for our major plans worldwide generally is 70% equities, 30% fixed income.
The present allocation to alternative investments (e. g. , private equity) is below 1%.
All assets are externally managed and most investment managers have discretion to invest globally within their respective mandates.
A diverse array of investment processes within asset classes reduces volatility.
Most assets are actively managed; manager skill and broad mandates have generally produced long-term returns in excess of common market indices.
Ford securities comprised less than five percent of the total market value of our assets in major worldwide plans (including U. S. , U. K. , Canada, Germany, Sweden, Netherlands, Belgium, and Australia) during 2005 and 2004.
Investment managers are permitted to use derivatives as efficient substitutes for traditional securities and to manage exposure to foreign exchange and interest rate risks.
Interest rate and foreign currency derivative instruments are used for the purpose of hedging changes in the fair value of assets that result from interest rate changes and currency fluctuations.
Derivatives may not be used to leverage or to alter the economic exposure to an asset class outside the scope of the mandate to which an investment manager has been appointed.
The equity allocation shown at year-end 2005 and 2004 includes public equity securities, private equity investments, and REITS.
Direct real estate investments shown separately reflect a liquidation strategy that has been in place for several years.
Other assets include cash held for near-term benefit funding; cash held by investment managers for liquidity purposes is included in the appropriate asset class balance.
Tax benefits recognized for stock-based compensation during the years ended December 31, 2011, 2010 and 2009, were $16 million, $6 million and $5 million, respectively.
The amount of Northrop Grumman shares issued before the spin-off to satisfy stock-based compensation awards are recorded by Northrop Grumman and, accordingly, are not reflected in HII’s consolidated financial statements.
The Company realized tax benefits during the year ended December 31, 2011, of $2 million from the exercise of stock options and $10 million from the issuance of stock in settlement of RPSRs and RSRs.
Unrecognized Compensation Expense At December 31, 2011 there was $1 million of unrecognized compensation expense related to unvested stock option awards, which will be recognized over a weighted average period of 1.1 years.
In addition, at December 31, 2011, there was $19 million of unrecognized compensation expense associated with the 2011 RSRs, which will be recognized over a period of 2.2 years; $10 million of unrecognized compensation expense associated with the RPSRs converted as part of the spin-off, which will be recognized over a weighted average period of one year; and $18 million of unrecognized compensation expense associated with the 2011 RPSRs which will be recognized over a period of 2.0 years.
Stock Options The compensation expense for the outstanding converted stock options was determined at the time of grant by Northrop Grumman.
There were no additional options granted during the year ended December 31, 2011.
The fair value of the stock option awards is expensed on a straight-line basis over the vesting period of the options.
The fair value of each of the stock option award was estimated on the date of grant using a Black-Scholes option pricing model based on the following assumptions: Dividend Yield—The dividend yield was based on Northrop Grumman’s historical dividend yield level.
Volatility—Expected volatility was based on the average of the implied volatility from traded options and the historical volatility of Northrop Grumman’s stock.
Risk-Free Interest Rate—The risk-free rate for periods within the contractual life of the stock option award was based on the yield curve of a zero-coupon U. S.  Treasury bond on the date the award was granted with a maturity equal to the expected term of the award.
Expected Term—The expected term of awards granted was derived from historical experience and represents the period of time that awards granted are expected to be outstanding.
A stratification of expected terms based on employee populations (executive and non-executive) was considered in the analysis.
The following significant weighted-average assumptions were used to value stock options granted during the years ended December 31, 2010 and 2009:
## Table 6 ##
The weighted-average grant date fair value of stock options granted during the years ended December 31, 2010 and 2009, was $11 and $7, per share, respectively.

<table><tr><td></td><td></td><td colspan="5">Increase/(Decrease) in:</td></tr><tr><td></td><td>Percentage</td><td colspan="3">December 31, 2005</td><td colspan="2"></td></tr><tr><td></td><td>Point</td><td>U.S. Plans</td><td>Non-U.S. Plans</td><td></td><td colspan="2">2005 Expense</td></tr><tr><td>Assumption</td><td>Change</td><td>Funded Status</td><td>Funded Status</td><td>Equity</td><td>U.S. Plans</td><td>Non-U.S. Plans</td></tr><tr><td>Discount rate</td><td>+/- 1.0 pt.</td><td>$4,690/$-5,250</td><td>$4,280/$-5,310</td><td>$3,450/$-6,560</td><td>$-110/$320</td><td>$-330/$430</td></tr><tr><td>Actual return on assets</td><td>+/- 1.0</td><td>390/-390</td><td>180/-180</td><td>1,400/-200</td><td>—</td><td>—</td></tr><tr><td>Expected return on assets</td><td>+/- 1.0</td><td>—</td><td>—</td><td>—</td><td>-380/380</td><td>-150/150</td></tr></table>
<table><tr><td></td><td></td><td></td><td colspan="2">Effect on U.S. and Canadian Plans: Increase/(Decrease)</td></tr><tr><td>Assumption</td><td>PercentagePoint Change</td><td></td><td>December 31, 2005 Obligation</td><td>2005 Expense</td></tr><tr><td>Discount rate</td><td>+/- 1.0</td><td>pt.</td><td>$-5,540/$6,330</td><td>$-460/$530</td></tr><tr><td>Health care cost trend rates — total expense</td><td>+/- 1.0</td><td></td><td>4,910/-3,890</td><td>830/-650</td></tr><tr><td>Health care cost trend rates — service and interest expense</td><td>+/- 1.0</td><td></td><td>4,910/-3,890</td><td>490/-380</td></tr></table>
<table><tr><td></td><td></td><td></td><td colspan="2">Increase/(Decrease)</td></tr><tr><td>Assumption</td><td>PercentagePoint Change</td><td></td><td>December 31, 2005 Allowance for Credit Losses</td><td>2005 Expense</td></tr><tr><td>Repossession rates *</td><td>+/- 0.1</td><td>pt.</td><td>$40/$-40</td><td>$40/$-40</td></tr><tr><td>Loss severity</td><td>+/- 1.0</td><td></td><td>10/-10</td><td>10/-10</td></tr></table>
<table><tr><td></td><td>2005</td><td>2004</td></tr><tr><td>Automotive Sector</td><td></td><td></td></tr><tr><td>Current</td><td></td><td></td></tr><tr><td>Dealer and customer allowances and claims</td><td>$12,953</td><td>$14,082</td></tr><tr><td>Deferred revenue</td><td>5,697</td><td>4,417</td></tr><tr><td>Employee benefit plans</td><td>2,070</td><td>1,921</td></tr><tr><td>Other postretirement employee benefits</td><td>1,442</td><td>1,572</td></tr><tr><td>Accrued interest</td><td>1,248</td><td>1,538</td></tr><tr><td>Pension liability</td><td>398</td><td>69</td></tr><tr><td>Other</td><td>4,925</td><td>6,101</td></tr><tr><td>Total Automotive current</td><td>28,733</td><td>29,700</td></tr><tr><td>Non-current</td><td></td><td></td></tr><tr><td>Other postretirement employee benefits</td><td>17,778</td><td>15,306</td></tr><tr><td>Dealer and customer allowances and claims</td><td>7,359</td><td>7,728</td></tr><tr><td>Pension liability</td><td>7,156</td><td>7,639</td></tr><tr><td>Deferred revenue</td><td>2,130</td><td>2,188</td></tr><tr><td>Employee benefit plans</td><td>1,121</td><td>1,106</td></tr><tr><td>Other</td><td>3,095</td><td>3,091</td></tr><tr><td>Total Automotive non-current</td><td>38,639</td><td>37,058</td></tr><tr><td>Total Automotive Sector</td><td>67,372</td><td>66,758</td></tr><tr><td>Financial Services Sector</td><td>5,605</td><td>6,834</td></tr><tr><td>Total</td><td>$72,977</td><td>$73,592</td></tr></table>
<table><tr><td></td><td colspan="2">Weighted Average Rate (a)</td><td colspan="2">Amount</td></tr><tr><td></td><td>2005</td><td>2004</td><td>2005</td><td>2004</td></tr><tr><td>Automotive Sector</td><td></td><td></td><td></td><td></td></tr><tr><td>Debt payable within one year</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term</td><td>6.0%</td><td>8.6%</td><td>$251</td><td>$270</td></tr><tr><td>Long-term payable within one year</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior indebtedness</td><td></td><td></td><td>727</td><td>707</td></tr><tr><td>Total debt payable within one year</td><td></td><td></td><td>978</td><td>977</td></tr><tr><td>Long-term debt</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior indebtedness</td><td></td><td></td><td></td><td></td></tr><tr><td>Notes and bank debt</td><td>7.5%</td><td>7.4%</td><td>11,942</td><td>12,303</td></tr><tr><td>Unamortized discount</td><td></td><td></td><td>-197</td><td>-208</td></tr><tr><td>Total senior indebtedness</td><td></td><td></td><td>11,745</td><td>12,095</td></tr><tr><td>Subordinated indebtedness</td><td>6.5%</td><td>6.5%</td><td>5,155</td><td>5,155</td></tr><tr><td>Total long-term debt</td><td></td><td></td><td>16,900</td><td>17,250</td></tr><tr><td>Total debt</td><td></td><td></td><td>$17,878</td><td>$18,227</td></tr><tr><td>Fair value (b)</td><td></td><td></td><td>$13,179</td><td>$18,074</td></tr><tr><td>Financial Services Sector</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term debt</td><td></td><td></td><td></td><td></td></tr><tr><td>Asset-backed commercial paper (c)</td><td></td><td></td><td>$21,751</td><td>$12,612</td></tr><tr><td>Commercial paper</td><td></td><td></td><td>1,041</td><td>8,916</td></tr><tr><td>Other short-term</td><td></td><td></td><td>9,543</td><td>10,590</td></tr><tr><td>Total short-term debt</td><td>5.0%</td><td>2.8%</td><td>32,335</td><td>32,118</td></tr><tr><td>Long-term debt</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior indebtedness</td><td></td><td></td><td></td><td></td></tr><tr><td>Notes payable within one year</td><td></td><td></td><td>21,234</td><td>29,661</td></tr><tr><td>Notes payable after one year</td><td></td><td></td><td>64,924</td><td>80,556</td></tr><tr><td>Unamortized discount</td><td></td><td></td><td>-63</td><td>-70</td></tr><tr><td>Asset-backed debt (d)</td><td></td><td></td><td></td><td></td></tr><tr><td>Notes payable within one year</td><td></td><td></td><td>5,357</td><td>624</td></tr><tr><td>Notes payable after one year</td><td></td><td></td><td>12,667</td><td>3,221</td></tr><tr><td>Total long-term debt</td><td>5.1%</td><td>4.4%</td><td>104,119</td><td>113,992</td></tr><tr><td>`Total debt</td><td></td><td></td><td>$136,454</td><td>$146,110</td></tr><tr><td>Fair value (b)</td><td></td><td></td><td>$131,233</td><td>$148,334</td></tr></table>
<table><tr><td></td><td colspan="2">Pension Benefits</td><td colspan="2"></td></tr><tr><td></td><td>U.S. Plans</td><td>Non-U.S. Plans</td><td colspan="2">Health Care and Life Insurance</td></tr><tr><td></td><td>Benefit Payments</td><td>Benefit Payments</td><td>Benefit Payments</td><td>Subsidy Receipts</td></tr><tr><td>2006</td><td>$2,870</td><td>$1,370</td><td>$1,750</td><td>$-80</td></tr><tr><td>2007</td><td>2,940</td><td>1,230</td><td>1,850</td><td>-90</td></tr><tr><td>2008</td><td>3,010</td><td>1,250</td><td>1,950</td><td>-100</td></tr><tr><td>2009</td><td>3,050</td><td>1,290</td><td>2,040</td><td>-110</td></tr><tr><td>2010</td><td>3,070</td><td>1,330</td><td>2,120</td><td>-110</td></tr><tr><td>2011 - 2015</td><td>15,410</td><td>7,340</td><td>11,630</td><td>-680</td></tr></table>
<table><tr><td></td><td>2010</td><td>2009</td></tr><tr><td>Dividend yield</td><td>2.9%</td><td>3.6%</td></tr><tr><td>Volatility Rate</td><td>25%</td><td>25%</td></tr><tr><td>Risk-free interest rate</td><td>2.3%</td><td>1.7%</td></tr><tr><td>Expected option life (years)</td><td>6</td><td>5 & 6</td></tr></table>

Question: what is the total tax benefits realized during 2011?
Answer: 12.0