(b) In Monterey, in order to augment our sources of water supply, we have implemented conservation rates and other programs to address demand and are utilizing aquifer storage and recovery facilities to store winter water for summer use.
Additionally, in other areas, we are making arrangements to extend or expand our purchase of water from neighboring water providers.
The level of treatment we apply to the water varies significantly depending upon the quality of the water source and customer stipulations.
Surface water sources, such as rivers, typically require significant treatment, while some groundwater sources, such as aquifers, require chemical treatment only.
In addition, a small amount of treated water is purchased from neighboring water purveyors.
Treated water is transported through our transmission and distribution network, which includes underground pipes, above ground storage facilities and numerous pumping facilities with the ultimate distribution of the treated water to the customers’ premises.
We also have installed production meters to measure the water that we deliver to our distribution network.
We employ a variety of methods of customer meter reading to monitor consumption; ranging from meters with mechanical registers where consumption is manually recorded by meter readers to meters with electronic registers capable of transmitting consumption data to proximity devices (touch read) or via radio frequency to mobile or fixed network data collectors.
The majority of new meters are able to support future advances in electronic meter reading.
Wastewater services involve the collection of wastewater from customers’ premises through sewer lines.
The wastewater is then transported through a sewer network to a treatment facility, where it is treated to meet required effluent standards.
The treated wastewater is finally returned to the environment as effluent, and the solid waste byproduct of the treatment process is disposed of in accordance with applicable standards and regulations.
Customers We have a large and geographically diverse customer base in our Regulated Businesses.
For the purposes of our Regulated Businesses, an active customer is defined as a connection to our water and/or wastewater networks.
A customer with both water and wastewater would count as two customers.
Also, as in the case of apartment complexes, businesses and many homes, multiple individuals may be served by a single connection.
Residential customers make up the majority of our customer base in all of the states in which we operate.
In 2012, residential customers accounted for 91.2% of the customers and 59.6% of the operating revenue of our Regulated Businesses.
We also serve commercial customers, such as shops and businesses; industrial customers, such as large-scale manufacturing and production operations; and public authorities, such as government buildings and other public sector facilities, including schools.
We also supply water to public fire hydrants for firefighting purposes, to private fire customers for use in fire suppression systems in office buildings and other facilities as well as providing bulk water supplies to other water utilities for distribution to their own customers.
The following table sets forth the number of water and wastewater customers (by customer class) for our Regulated Businesses as of December 31, 2012, 2011, and 2010:
## Table 0 ##
The following table sets forth water services operating revenue by customer class and wastewater services operating revenue, excluding other revenues, for our Regulated Businesses for 2012, 2011, and 2010:
## Table 1 ##
The vast majority of our regulated water customers are metered, which allows us to measure and bill for our customers’ water consumption, typically on a monthly basis.
Our wastewater customers are billed either on a fixed charge basis or based on their water consumption.
Customer usage of water is affected by weather conditions, particularly during the summer.
Our water systems generally experience higher demand in the summer due to the warmer temperatures and increased usage by customers for lawn irrigation and other outdoor uses.
Summer weather that is cooler and wetter than average generally serves to suppress customer water demand and can reduce water operating revenue and operating income.
Summer weather that is hotter and drier than average generally increases operating revenues and operating income.
However, when weather conditions are extremely dry and even if our water supplies are sufficient to serve our customers, our systems may be affected by drought-related warnings and/or water usage restrictions imposed by governmental agencies, thereby reducing customer demand and operating revenue.
These restrictions may be imposed at a regional or state level and may affect our service areas, regardless of our readiness to meet unrestricted customer demands.
Other factors affecting our customers’ usage of water include conservation initiatives, such as the use of more efficient household fixtures and appliances among residential consumers; declining household sizes in the United States; and deterioration in the economy and credit markets which could have an adverse impact on our industrial and commercial customers’ operational and financial performance.
Customer growth in our Regulated Businesses is driven by (i) organic population growth in our authorized service areas; (ii) adding new customers to our regulated customer base by acquiring water and/or wastewater utility systems; and (iii) the sale of water to other community water systems.
Generally, we add customers through tuck-ins of small water and/or wastewater systems, typically serving fewer than 10,000 customers, in close geographic proximity to areas where we operate our Regulated Businesses.
We will continue to acquire water and wastewater utilities through tuck-ins.
The proximity of tuck-in opportunities to our regulated footprint allows us to integrate and manage the acquired systems and operations using our existing management and to achieve efficiencies.
Historically, pursuing tuck-ins has been a fundamental part of our growth strategy.
We intend to continue to expand our regulated footprint geographically by acquiring water and wastewater systems in our existing markets and, if appropriate, certain markets in the United States where we do not operate our Regulated Businesses.
We will also selectively seek larger acquisitions that allow us to acquire multiple water and wastewater utility systems in our existing and new markets.
Before entering new regulated markets, we will evaluate the regulatory environment to ensure that we will have the opportunity to achieve an appropriate rate of return on our investment while maintaining our high standards for quality, reliability and compliance with environmental, health and safety and water quality standards.
Supplies Our water and wastewater operations require an uninterrupted supply of chemicals, energy and fuel, as well as maintenance material and other critical inputs.
Many of these inputs are subject to short-term price volatility.
Market-Based Operations Segment The following table provides certain financial information for our Market-Based Operations segment for the periods indicated:
## Table 2 ##
Comparison of Results of Operations for the Years Ended December 31, 2012 and 2011 Operating revenues.
The increase in revenues for the year ended December 31, 2012, compared to the same period in 2011, is primarily attributable to an $8.0 million increase in our HOS revenues associated with continued contract growth and a price increase.
Also contributing to the higher revenues was a $2.2 million increase in our Contract Operations Group revenues which is mainly due to incremental revenues associated with military construction and operation and maintenance projects.
These increases were offset by decreases in our Carbon Services Group revenues of $6.0 million, as we are no longer providing these services to the Regulated Businesses, and a decrease in revenues in our Residuals Operations Group of $1.8 million.
Operation and maintenance.
Operation and maintenance expense decreased $1.6 million, or 0.6%, for the year ended December 31, 2012, compared to the year ended December 31, 2011.
The following table provides information regarding operation and maintenance expense for the years ended December 31, 2012, and 2011, by major expense category:
## Table 3 ##
The increase in operating supplies and services is attributable to increased construction activity for our military contracts.
In addition, 2011 included the release of a $2.2 million loss contract reserve due to the resolution of certain outstanding issues and uncertainties.
Offsetting the increase in operating supplies and services are decreases in production, employee-related and maintenance costs which is the result of expired and terminated contracts.
Additionally, operating supplies and services is lower due to lower Carbon Services Group expenses, which corresponds to its lower revenues.
Operating expense.
The decrease in operating expenses for the year ended December 31, 2012 is primarily driven by the decrease in operation and maintenance expense, which is explained above.
?
Selling costs increased $5.4 million to $17.1 million in 2005 from $11.7 million in 2004.
This increase was due to increased headcount in our sales force and startup costs associated with our international growth initiatives.
As a percentage of net revenues, selling costs increased to 6.1% in 2005 from 5.7% in 2004 due to the increased costs described above.  ?
Payroll and related costs (excluding those specifically related to marketing and selling) increased $8.6 million to $26.9 million in 2005, from $18.3 million in 2004.
The increase during 2005 was due to the following initiatives: we began to build our team to design and source our footwear line, which we expect to offer for the fall 2006 season, we added personnel to our information technology team to support our Company-wide initiative to upgrade our information systems, we incurred equity compensation costs, we added personnel to operate our 3 new retail outlet stores, and we invested in the personnel needed to enhance our compliance function and operate as a public company.
As a percentage of net revenues, payroll and related costs (excluding those specifically related to marketing and selling) increased to 9.6% in 2005 from 8.9% in 2004 due to the items described above.  ?
Other corporate costs increased $7.2 million to $25.5 million in 2005, from $18.3 million in 2004.
This increase was attributable to higher costs in support of our footwear initiative, freight and duty related to increased Canada sales, expansion of our leased corporate office space and distribution facility, and necessary costs associated with being a public company.
As a percentage of net revenues, other corporate costs were 9.1% in 2005, which is a slight increase from 8.9% in 2004 due to the items noted above.
Income from operations increased $10.5 million, or 41.4%, to $35.9 million in 2005 from $25.4 million in 2004.
Income from operations as a percentage of net revenues increased to 12.7% in 2005 from 12.4% in 2004.
This increase was a result of an increase in gross margin partially offset by an increase in selling, general and administrative expenses as a percentage of net revenues.
Interest expense, net increased $1.6 million to $2.9 million in 2005 from $1.3 million in 2004.
This increase was primarily due to higher average borrowings and a higher effective interest rate under our revolving credit facility prior to being repaid in November 2005 with proceeds from the initial public offering.
Provision for income taxes increased $5.5 million to $13.3 million in 2005 from $7.8 million in 2004.
For the year ended December 31, 2005 our effective tax rate was 40.2% compared to 32.3% in 2004.
This increase was primarily due to an increase in our effective state tax rate, which reflected reduced state tax credits earned as a percentage of income before taxes.
Net income increased $3.4 million to $19.7 million in 2005 from $16.3 million in 2004, as a result of the factors described above.
Year Ended December 31, 2004 Compared to Year Ended December 31, 2003 Net revenues increased $89.8 million, or 77.8%, to $205.2 million in 2004 from $115.4 million in 2003.
The increase was a result of increases in both our net sales and license revenues as noted in the product category table below.
## Table 4 ##

<table><tr><td></td><td colspan="6"> December 31,</td></tr><tr><td></td><td colspan="2"> 2012</td><td colspan="2"> 2011</td><td colspan="2"> 2010</td></tr><tr><td></td><td> Water</td><td> Wastewater</td><td> Water</td><td> Wastewater</td><td> Water</td><td> Wastewater</td></tr><tr><td>Residential</td><td>2,783,354</td><td>95,576</td><td>2,730,524</td><td>95,092</td><td>2,728,205</td><td>93,156</td></tr><tr><td>Commercial</td><td>218,988</td><td>5,477</td><td>216,415</td><td>5,462</td><td>216,967</td><td>5,355</td></tr><tr><td>Industrial</td><td>3,894</td><td>12</td><td>3,885</td><td>13</td><td>4,033</td><td>13</td></tr><tr><td>Private fire</td><td>34,858</td><td>10</td><td>33,887</td><td>10</td><td>33,610</td><td>11</td></tr><tr><td>Public authority & other</td><td>15,844</td><td>213</td><td>15,818</td><td>199</td><td>15,436</td><td>197</td></tr><tr><td>Total</td><td>3,056,938</td><td>101,288</td><td>3,000,529</td><td>100,776</td><td>2,998,251</td><td>98,732</td></tr></table>
<table><tr><td></td><td colspan="3"> Year Ended December 31,</td></tr><tr><td></td><td> 2012</td><td> 2011  (in millions)</td><td> 2010</td></tr><tr><td> Water service</td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>$1,468.6</td><td>$1,339.4</td><td>$1,300.2</td></tr><tr><td>Commercial</td><td>518.3</td><td>474.2</td><td>457.0</td></tr><tr><td>Industrial</td><td>128.4</td><td>116.0</td><td>110.2</td></tr><tr><td>Public and other</td><td>328.4</td><td>323.0</td><td>314.1</td></tr><tr><td>Total water services</td><td>$2,443.7</td><td>$2,252.6</td><td>$2,181.5</td></tr><tr><td> Wastewater services</td><td>78.2</td><td>76.3</td><td>69.0</td></tr><tr><td>Total</td><td>$2,521.9</td><td>$2,328.9</td><td>$2,250.5</td></tr></table>
<table><tr><td></td><td colspan="3"> For the years ended December 31,</td></tr><tr><td></td><td> 2012</td><td> 2011</td><td> 2010</td></tr><tr><td></td><td colspan="3"> (in thousands)</td></tr><tr><td>Operating revenues</td><td>$330,329</td><td>$327,815</td><td>$294,723</td></tr><tr><td>Operation and maintenance expense</td><td>276,809</td><td>278,375</td><td>256,633</td></tr><tr><td>Operating expenses, net</td><td>288,099</td><td>290,768</td><td>269,059</td></tr><tr><td>Income from continuing operations before income taxes</td><td>45,817</td><td>39,324</td><td>30,416</td></tr></table>
<table><tr><td></td><td colspan="4">For the years ended December 31,</td></tr><tr><td></td><td> 2012</td><td> 2011</td><td>Increase (Decrease)</td><td>Percentage</td></tr><tr><td></td><td colspan="4">(Dollars in thousands)</td></tr><tr><td>Production costs</td><td>$42,772</td><td>$47,897</td><td>$-5,125</td><td>-10.7%</td></tr><tr><td>Employee-related costs</td><td>71,002</td><td>75,012</td><td>-4,010</td><td>-5.3%</td></tr><tr><td>Operating supplies and services</td><td>117,749</td><td>108,552</td><td>9,197</td><td>8.5%</td></tr><tr><td>Maintenance materials and services</td><td>36,730</td><td>38,568</td><td>-1,838</td><td>-4.8</td></tr><tr><td>Other</td><td>8,556</td><td>8,346</td><td>210</td><td>2.5%</td></tr><tr><td>Total</td><td>$276,809</td><td>$278,375</td><td>$-1,566</td><td>-0.6%</td></tr></table>
<table><tr><td></td><td colspan="4"> Year Ended December 31,</td></tr><tr><td>  <i>(In thousands)</i> </td><td> 2004</td><td> 2003</td><td> $ Change</td><td> % Change</td></tr><tr><td>Mens</td><td>$151,962</td><td>$92,197</td><td>$59,765</td><td>64.8%</td></tr><tr><td>Womens</td><td>28,659</td><td>10,968</td><td>17,691</td><td>161.3%</td></tr><tr><td>Youth</td><td>12,705</td><td>8,518</td><td>4,187</td><td>49.2%</td></tr><tr><td>Accessories</td><td>7,548</td><td>2,072</td><td>5,476</td><td>264.3%</td></tr><tr><td>Total net sales</td><td>200,874</td><td>113,755</td><td>87,119</td><td>76.6%</td></tr><tr><td>License revenues</td><td>4,307</td><td>1,664</td><td>2,643</td><td>158.8%</td></tr><tr><td>Total net revenues</td><td>$205,181</td><td>$115,419</td><td>$89,762</td><td>77.8%</td></tr></table>

Question: What's the average of production costs and employee-related costs in 2012? (in thousand)
Answer: 56887.0