credit and therefore was not the primary beneficiary at December 31, 2014.
The Company’s maximum exposure to loss at December 31, 2014 equaled the principal amount of the Timber Notes; however, an analysis performed by the Company concluded the likelihood of this exposure was remote.
During the third quarter of 2015, we initiated a series of actions in order to extend the 2006 monetization structure and maintain the long-term nature of the $1.4 billion deferred tax liability.
First, International Paper acquired the Class A interests in the Investor Entities from a third party for $198 million in cash.
As a result, International Paper became the owner of all of the Class A and Class B interests in the Entities and became the primary beneficiary of the Entities.
The assets and liabilities of the Entities, primarily consisting of the Timber Notes and third party bank loans, were recorded at fair value as of the acquisition date of the Class A interests.
Subsequent to purchasing the Class A interests in the Investor Entities, International Paper restructured the Entities, which resulted in the formation of whollyowned, bankruptcy-remote special purpose entities (the 2015 Financing Entities).
As part of the restructuring, the Timber Notes held by the Borrower Entities, subject to the third party bank loans, were contributed to the 2015 Financing Entities along with approximately $150 million in International Paper debt obligations, approximately $600 million in cash and approximately $130 million in demand loans from International Paper, and certain Entities were liquidated.
As a result of these transactions, International Paper began consolidating the 2015 Financing Entities during the third quarter of 2015.
Also, during the third quarter of 2015, the 2015 Financing Entities used $630 million in cash to pay down a portion of the third party bank loans and refinanced approximately $4.2 billion of those loans on nonrecourse terms (the 2015 Refinance Loans).
During the fourth quarter of 2015, International Paper extended the maturity date on the Timber Notes for an additional five years.
The Timber Notes are shown in Financial assets of special purpose entities on the accompanying consolidated balance sheet and mature in August 2021 unless extended for an additional five years.
These notes are supported by approximately $4.8 billion of irrevocable letters of credit.
In addition, the Company extinguished the 2015 Refinance Loans scheduled to mature in May 2016 and entered into new nonrecourse third party bank loans totaling approximately $4.2 billion (the Extension Loans).
Provisions of loan agreements related to approximately $1.1 billion of the Extension Loans require the bank issuing letters of credit supporting the Timber Notes pledged as collateral to maintain a credit rating at or above a specified threshold.
In the event the credit rating of the letter of credit bank is downgraded below the specified threshold, the letters of credit must be replaced within 60 days with letters of credit from a qualifying financial institution.
The Extension Loans are shown in Nonrecourse financial liabilities of special purpose entities on the accompanying consolidated balance sheet and mature in the fourth quarter of 2020.
The extinguishment of the 2015 Refinance Loans of approximately $4.2 billion and the issuance of the Extension Loans of approximately $4.2 billion are shown as part of reductions of debt and issuances of debt, respectively, in the financing activities of the consolidated statement of cash flows.
The Extension Loans are nonrecourse to the Company, and are secured by approximately $4.8 billion of Timber Notes, the irrevocable letters of credit supporting the Timber Notes and approximately $150 million of International Paper debt obligations.
The $150 million of International Paper debt obligations are eliminated in the consolidation of the 2015 Financing Entities and are not reflected in the Company’s consolidated balance sheet.
The purchase of the Class A interests and subsequent restructuring described above facilitated the refinancing and extensions of the third party bank loans on nonrecourse terms.
The transactions described in these paragraphs result in continued long-term classification of the $1.4 billion deferred tax liability recognized in connection with the 2006 forestlands sale.
As of December 31, 2015, the fair value of the Timber Notes and Extension Loans is $4.68 billion and $4.28 billion, respectively.
The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14.
Activity between the Company and the 2015 Financing Entities (the Entities prior to the purchase of the Class A interest discussed above) was as follows:
## Table 0 ##
(a) The net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to effect its legal right to offset as discussed above.
After formation of the 2015 Financing Entities, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations.
(b) The cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities.
After formation of the 2015 Financing Entities, cash receipts are interest received on the Financial assets of special purpose entities.
## Table 1 ##
Rail Equipment – Our equipment includes owned and leased locomotives and rail cars; heavy maintenance equipment and machinery; other equipment and tools in our shops, offices, and facilities; and vehicles for maintenance, transportation of crews, and other activities.
As of December 31, 2007, we owned or leased the following units of equipment:
## Table 2 ##
Freight cars
## Table 3 ##
Capital Expenditures – Our rail network requires significant annual capital investments for maintenance, improvement, and expansion.
These investments maintain and enhance safe operations, support the transportation needs of our customers, and improve our operational efficiency.
Additionally, we add new locomotives and freight cars to our fleet to replace older, less efficient equipment, to support growth and customer demand, and to reduce our impact on the environment through the acquisition of more fuel efficient and low emission locomotives, including yard engines that use new hybrid technology.2007 Capital Expenditures – During 2007, we made capital investments totaling $3.1 billion, which included cash spending of $2.5 billion (see the capital expenditures table in Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Financial Condition, Item 7).
We also acquired 259 locomotives and 150 freight cars under long-term operating leases with an aggregate net present value of $434 million.
We procured an additional 56 locomotives and other equipment through capital lease financings valued at $82 million.
4.
Stock Options and Other Stock Plans We have 12,542 options outstanding under the 1993 Stock Option and Retention Stock Plan of Union Pacific Corporation (1993 Plan).
There are 7,140 restricted shares outstanding under the 1992 Restricted Stock Plan for Non-Employee Directors of Union Pacific Corporation.
We no longer grant options or awards of retention shares and units under these plans.
In April 2000, the shareholders approved the Union Pacific Corporation 2000 Directors Plan (Directors Plan) whereby 1,100,000 shares of our common stock were reserved for issuance to our non-employee directors.
Under the Directors Plan, each non-employee director, upon his or her initial election to the Board of Directors, receives a grant of 2,000 retention shares or retention stock units.
Prior to December 31, 2007, each non-employee director received annually an option to purchase at fair value a number of shares of our common stock, not to exceed 10,000 shares during any calendar year, determined by dividing 60,000 by 1/3 of the fair market value of one share of our common stock on the date of such Board of Directors meeting, with the resulting quotient rounded up or down to the nearest 50 shares.
In September 2007, the Board of Directors eliminated the annual payment of options for 2008 and future years.
As of December 31, 2010, 18,000 restricted shares and 264,000 options were outstanding under the Directors Plan.
The Union Pacific Corporation 2001 Stock Incentive Plan (2001 Plan) was approved by the shareholders in April 2001.
The 2001 Plan reserved 24,000,000 shares of our common stock for issuance to eligible employees of the Corporation and its subsidiaries in the form of non-qualified options, incentive stock options, retention shares, stock units, and incentive bonus awards.
Non-employee directors were not eligible for awards under the 2001 Plan.
As of December 31, 2010, 1,861,066 options were outstanding under the 2001 Plan.
We no longer grant any stock options or other stock or unit awards under this plan.
The Union Pacific Corporation 2004 Stock Incentive Plan (2004 Plan) was approved by shareholders in April 2004.
The 2004 Plan reserved 42,000,000 shares of our common stock for issuance, plus any shares subject to awards made under the 2001 Plan and the 1993 Plan that were outstanding on April 16, 2004, and became available for regrant pursuant to the terms of the 2004 Plan.
Under the 2004 Plan, non-qualified options, stock appreciation rights, retention shares, stock units, and incentive bonus awards may be granted to eligible employees of the Corporation and its subsidiaries.
Non-employee directors are not eligible for awards under the 2004 Plan.
As of December 31, 2010, 7,677,841 options and 3,788,877 retention shares and stock units were outstanding under the 2004 Plan.
Pursuant to the above plans 32,904,291; 33,559,150; and 36,961,123 shares of our common stock were authorized and available for grant at December 31, 2010, 2009, and 2008, respectively.
Stock-Based Compensation – We have several stock-based compensation plans under which employees and non-employee directors receive stock options, nonvested retention shares, and nonvested stock units.
We refer to the nonvested shares and stock units collectively as “retention awards”.
We have elected to issue treasury shares to cover option exercises and stock unit vestings, while new shares are issued when retention shares are granted.
Information regarding stock-based compensation appears in the table below:
## Table 4 ##
For retirements of depreciable railroad properties that do not occur in the normal course of business, a gain or loss may be recognized if the retirement meets each of the following three conditions: (i) is unusual, (ii) is material in amount, and (iii) varies significantly from the retirement profile identified through our depreciation studies.
During the last three fiscal years, no gains or losses were recognized due to the retirement of depreciable railroad properties.
A gain or loss is recognized in other income when we sell land or dispose of assets that are not part of our railroad operations.
Income Taxes – We account for income taxes by recording taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns.
These expected future tax consequences are measured based on current tax law; the effects of future tax legislation are not anticipated.
Future tax legislation, such as a change in the corporate tax rate, could have a material impact on our financial condition, results of operations, or liquidity.
For example, a 1% increase in future income tax rates would increase our deferred tax liability by approximately $320 million.
When appropriate, we record a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized.
In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based on management’s judgments using available evidence for purposes of estimating whether future taxable income will be sufficient to realize a deferred tax asset.
In 2011 and 2010, there were no valuation allowances.
We recognize tax benefits that are more likely than not to be sustained upon examination by tax authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement.
A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards.
Pension and Other Postretirement Benefits – We use an actuarial analysis to measure the liabilities and expenses associated with providing pension and medical and life insurance benefits (OPEB) to eligible employees.
In order to use actuarial methods to value the liabilities and expenses, we must make several assumptions.
The critical assumptions used to measure pension obligations and expenses are the discount rate and expected rate of return on pension assets.
For OPEB, the critical assumptions are the discount rate and health care cost trend rate.
We evaluate our critical assumptions at least annually, and selected assumptions are based on the following factors: ?
Discount rate is based on a Mercer yield curve of high quality corporate bonds (rated AA by a recognized rating agency) for which the timing and amount of cash flows matches our plans’ expected benefit payments.  ?
Expected return on plan assets is based on our asset allocation mix and our historical return, taking into consideration current and expected market conditions.  ?
Health care cost trend rate is based on our historical rates of inflation and expected market conditions.
The following tables present the key assumptions used to measure net periodic pension and OPEB cost/(benefit) for 2011 and the estimated impact on 2011 net periodic pension and OPEB cost/(benefit) relative to a change in those assumptions:
## Table 5 ##
For retirements of depreciable railroad properties that do not occur in the normal course of business, a gain or loss may be recognized if the retirement meets each of the following three conditions: (i) it is unusual, (ii) it is material in amount, and (iii) it varies significantly from the retirement profile identified through our depreciation studies.
During the last three fiscal years, no gains or losses were recognized due to the retirement of depreciable railroad properties.
A gain or loss is recognized in other income when we sell land or dispose of assets that are not part of our railroad operations.
Income Taxes – We account for income taxes by recording taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns.
These expected future tax consequences are measured based on current tax law; the effects of future tax legislation are not anticipated.
Future tax legislation, such as a change in the corporate tax rate, could have a material impact on our financial condition, results of operations, or liquidity.
For example, a 1% increase in future income tax rates would increase our deferred tax liability by approximately $380 million.
When appropriate, we record a valuation allowance against deferred tax assets to reflect that these tax assets may not be realized.
In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based on management’s judgments using available evidence for purposes of estimating whether future taxable income will be sufficient to realize a deferred tax asset.
In 2014 and 2013, there were no valuation allowances.
We recognize tax benefits that are more likely than not to be sustained upon examination by tax authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement.
A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards.
Pension and Other Postretirement Benefits – We use an actuarial analysis to measure the liabilities and expenses associated with providing pension and medical and life insurance benefits (OPEB) to eligible employees.
In order to use actuarial methods to value the liabilities and expenses, we must make several assumptions.
The critical assumptions used to measure pension obligations and expenses are the discount rate and expected rate of return on pension assets.
For OPEB, the critical assumptions are the discount rate and health care cost trend rate.
We evaluate our critical assumptions at least annually, and selected assumptions are based on the following factors: ?
Discount rate is based on a Mercer yield curve of high quality corporate bonds (rated AA by a recognized rating agency) for which the timing and amount of cash flows matches our plans’ expected benefit payments.  ?
Expected return on plan assets is based on our asset allocation mix and our historical return, taking into consideration current and expected market conditions.  ?
Health care cost trend rate is based on our historical rates of inflation and expected market conditions.
The following tables present the key assumptions used to measure net periodic pension and OPEB cost/(benefit) for 2014 and the estimated impact on 2014 net periodic pension and OPEB cost/(benefit) relative to a change in those assumptions:

<table><tr><td>In millions</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Revenue (a)</td><td>$43</td><td>$38</td><td>$45</td></tr><tr><td>Expense (a)</td><td>81</td><td>72</td><td>79</td></tr><tr><td>Cash receipts (b)</td><td>21</td><td>22</td><td>33</td></tr><tr><td>Cash payments (c)</td><td>71</td><td>73</td><td>84</td></tr></table>
<table><tr><td></td><td colspan="2"> <i>Annual Lifts</i></td></tr><tr><td><i>Top 10 Intermodal Terminals</i></td><td> <i>2007</i></td><td><i>2006</i></td></tr><tr><td>ICTF (Los Angeles), California</td><td> 719,000</td><td>725,000</td></tr><tr><td>Marion (Memphis), Tennessee</td><td> 414,000</td><td>406,000</td></tr><tr><td>East Los Angeles, California</td><td> 360,000</td><td>329,000</td></tr><tr><td>Global II (Chicago), Illinois</td><td> 353,000</td><td>297,000</td></tr><tr><td>Global I (Chicago), Illinois</td><td> 310,000</td><td>321,000</td></tr><tr><td>Dallas, Texas</td><td> 292,000</td><td>284,000</td></tr><tr><td>Seattle, Washington</td><td> 250,000</td><td>238,000</td></tr><tr><td>Yard Center (Chicago), Illinois</td><td> 238,000</td><td>248,000</td></tr><tr><td>Oakland, California</td><td> 236,000</td><td>268,000</td></tr><tr><td>Englewood (Houston), Texas</td><td> 214,000</td><td>206,000</td></tr></table>
<table><tr><td><i>Locomotives</i></td><td><i>Owned</i></td><td><i>Leased</i></td><td><i>Total</i></td><td><i>Average</i><i>Age (yrs.)</i></td></tr><tr><td>Road</td><td>4,330</td><td>3,704</td><td>8,034</td><td>14.8</td></tr><tr><td>Switching</td><td>488</td><td>32</td><td>520</td><td>30.5</td></tr><tr><td>Other</td><td>112</td><td>55</td><td>167</td><td>20.6</td></tr><tr><td>Total locomotives</td><td>4,930</td><td>3,791</td><td>8,721</td><td>N/A</td></tr></table>
<table><tr><td><i>Freight cars</i></td><td><i>Owned</i></td><td><i>Leased</i></td><td><i>Total</i></td><td><i>Average</i><i>Age (yrs.)</i></td></tr><tr><td>Covered hopper</td><td>13,864</td><td>21,573</td><td>35,437</td><td>28.7</td></tr><tr><td>Open hoppers</td><td>13,431</td><td>5,216</td><td>18,647</td><td>28.6</td></tr><tr><td>Gondolas</td><td>7,639</td><td>6,141</td><td>13,780</td><td>26.6</td></tr><tr><td>Boxcars</td><td>8,132</td><td>4,140</td><td>12,272</td><td>27.1</td></tr><tr><td>Mechanical refrigerated</td><td>3,309</td><td>5,291</td><td>8,600</td><td>22.3</td></tr><tr><td>Flat cars</td><td>3,687</td><td>1,149</td><td>4,836</td><td>30.2</td></tr><tr><td>Other</td><td>127</td><td>585</td><td>712</td><td>N/A</td></tr><tr><td>Total freight cars</td><td>50,189</td><td>44,095</td><td>94,284</td><td>N/A</td></tr></table>
<table><tr><td><i>Millions</i></td><td>2010</td><td>2009</td><td>2008</td><td><i></i></td></tr><tr><td>Stock-based compensation, before tax:</td><td></td><td></td><td></td><td></td></tr><tr><td>Stock options</td><td>$17</td><td>$19</td><td>$25</td><td></td></tr><tr><td>Retention awards</td><td>57</td><td>39</td><td>40</td><td></td></tr><tr><td>Total stock-based compensation, before tax</td><td>$74</td><td>$58</td><td>$65</td><td></td></tr><tr><td>Total stock-based compensation, after tax</td><td>$46</td><td>$36</td><td>$40</td><td></td></tr><tr><td>Excess tax benefits from equity compensation plans</td><td>$51</td><td>$10</td><td>$54</td><td></td></tr></table>
<table><tr><td> <i>Assumptions</i></td><td><i>Pension</i></td><td><i>OPEB</i></td></tr><tr><td>Discount rate</td><td>5.35%</td><td>5.01%</td></tr><tr><td>Expected return on plan assets</td><td>7.50%</td><td>N/A</td></tr><tr><td>Compensation increase</td><td>4.48%</td><td>N/A</td></tr><tr><td>Health care cost trend rate:</td><td></td><td></td></tr><tr><td>Pre-65 current</td><td>N/A</td><td>7.07%</td></tr><tr><td>Pre-65 level in 2028</td><td>N/A</td><td>4.50%</td></tr></table>

Question: What is the ratio of all Locomotives that are smaller than 100 to the sum of Locomotives, in leases?
Answer: 0.02295