THE INTERPUBLIC GROUP OF COMPANIES, INC.  AND SUBSIDIARIES MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (Continued) (Amounts in Millions, Except Per Share Amounts) 2006 Compared to 2005 Salaries and related expenses decreased during 2006 due to net divestitures, primarily from the sale of several businesses at IAN during 2005, partially offset by changes in foreign currency exchange rates and a slight organic increase.
Total salaries and related expenses as a percentage of revenue remained flat as a result of the decline in revenue.
Key factors behind the change in salaries and related expenses from the prior year were a significant reduction in severance expense of $63.7, offset by an increase in long-term incentive awards and bonus awards of $67.2.
Expenses related to incentive awards increased in 2006 due to long-term equity based awards granted in June 2006 and the full year impact of awards granted in August 2005, while expenses related to bonus awards increased primarily due to performance.
The slight organic increase reflected in CMG and Corporate was offset by a decrease at IAN and was primarily the result of higher salary costs to upgrade our talent and to support revenue initiatives and technology-related projects, increased incentive awards and bonus awards.
This was partially offset by a decrease in severance expense, primarily at international locations within IAN, which we incurred in 2005 due to client losses.2005 Compared to 2004 Salaries and related expenses increased primarily due to an organic increase and changes in foreign currency exchange rates, partially offset by net divestitures, primarily at McCann during 2005 and the sale of the Motorsports business during 2004.
The organic increase was primarily the result of higher severance expense, largely recorded in the fourth quarter of 2005 for international headcount reductions within IAN as a result of client losses, the hiring of additional creative talent to enable future revenue growth, additional staff to address weaknesses in our accounting and control environment, and to develop shared services at certain locations.
Office and General Expenses Office and general expenses include rent expense, professional fees, expenses attributable to the support of client service professional staff, depreciation and amortization costs, bad debt expense relating to accounts receivable, the costs associated with the development of a shared services center and implementation costs associated with upgrading our information technology infrastructure.
Office and general expenses also include costs directly attributable to client engagements.
These costs include out-of-pocket costs such as travel for client service professional staff, production costs and other direct costs that are rebilled to our clients.
## Table 0 ##
2006 Compared to 2005 Office and general expenses for 2006 declined as a result of significant reductions in professional fees, which decreased by $93.7, primarily for projects related to our restatement activities and internal control compliance that occurred in 2005, lower production expenses, lower bad debt expenses and net divestitures, primarily due to the sale of several businesses at IAN during 2005.
The decline in office and general expenses occurred in both segments as well as Corporate.
Partially offsetting this decrease were higher rent expense and reduced foreign exchange gains on certain balance sheet items.
The above items resulted in an organic decline which was primarily reflected at Corporate and IAN.2005 Compared to 2004 Office and general expenses for 2005 increased as a result of an organic increase and changes in foreign currency exchange rates, partially offset by net divestitures, primarily at McCann during 2005 and the sale of the Motorsports business during 2004.
The organic increase was primarily the result of higher professional fees,
THE INTERPUBLIC GROUP OF COMPANIES, INC.  AND SUBSIDIARIES MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS — (Continued) (Amounts in Millions, Except Per Share Amounts) During 2004, a valuation allowance of $236.0 was established in continuing operations on existing deferred tax assets and 2004 losses with no benefit.
The total valuation allowance as of December 31, 2004 was $488.6.
For additional information, see Note 9 to the Consolidated Financial Statements.
Segment Results of Operations As discussed in Note 15 to the Consolidated Financial Statements, we have two reportable segments as of December 31, 2006: IAN and CMG.
We also report results for the Corporate and other group.
As of December 31, 2005, we had an additional segment, Motorsports operations (“Motorsports”), which was sold during 2004 and had immaterial residual operating results in 2005.
On June 1, 2006, we announced we would merge two units included in our IAN segment, Draft Worldwide (“Draft”) and Foote, Cone & Belding Worldwide (“FCB”), to create a global integrated marketing organization.
The new merged entity, Draftfcb, remains within the IAN segment.
INTEGRATED AGENCY NETWORKS (‘‘IAN”) REVENUE 2006 Compared to 2005
## Table 1 ##
The revenue decline in 2006 was a result of net divestitures, primarily from the sale of several businesses at Draftfcb and McCann in 2005, partially offset by an organic increase and changes in foreign currency exchange rates.
The organic increase was driven primarily by McCann and Draftfcb, partially offset by decreases at Lowe and The Works, one of our independent agencies.
The organic increase at McCann was the result of higher revenue from existing clients across domestic and international regions, primarily Asia Pacific and Latin America.
McCann’s increase was primarily driven by digital, direct and event marketing services.
The increase at Draftfcb was primarily the result of increased spending from existing clients partially offset by net client losses, primarily in 2005, across domestic and most international regions, primarily Europe, Asia Pacific and Latin America.
The decrease at Lowe was primarily due to reduced spending by existing clients and net client losses, primarily in domestic locations in 2005.
The revenue decrease at The Works, a dedicated General Motors resource, was primarily due to the loss of the General Motors U. S.  media buying business in 2005.2005 Compared to 2004
## Table 2 ##
The revenue decline in 2005 primarily resulted from organic revenue decreases and net divestitures, partially offset by changes in foreign currency exchange rates.
The organic revenue decrease was primarily driven by declines at Deutsch and Lowe, partially offset by increases at Draftfcb and Mullen.
The decline at Deutsch was due to client losses and reduced spending from existing clients domestically, partially offset by client wins.
The decline
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Amounts in Millions, Except Per Share Amounts) foreign subsidiaries and thereby postpone their remittance.
We have not provided deferred U. S.  income taxes or foreign withholding taxes on temporary differences resulting from earnings for certain foreign subsidiaries which are permanently reinvested outside the United States.
It is not practicable to determine the amount of unrecognized deferred tax liability associated with these temporary differences.
In 2006 we finalized the 1994-1996 IRS audit cycle.
We agreed to an IRS adjustment to move a tax deduction into later years.
The deferral of this deduction has not impacted our tax provision in 2006.
In addition, in 2006 the IRS completed their field audit of the years 1997 through 2002 and has proposed additionstoourtaxableincome.
Wehaveappealed anumberoftheseproposedadditions.
Further,duringthesecond quarter of 2006, the IRS commenced the audit of the 2003 and 2004 income tax returns.
In 2006, we presented the IRS with an adjustment to our taxable loss for 2004 to claim a deduction for a worthlessness loss of an acquired business which we originally claimed on our 2002 tax return but which the IRS disallowed.
We had previously received a refund of approximately $45.0 from the carryback of the 2002 loss to a previous year.
In 2006, we paid $52.7, including interest, as a result of the disallowance of this loss deduction for 2002.
This loss claim is currently being reviewed by the IRS in conjunction with their audit of the 2003-2004 income tax return.
Also in 2006, a decision was reached to carryback our loss generated in 2005 to 2003.
The taxable income in 2003 would be reduced, with the corollary effect of previously claimed foreign tax credits being displaced.
The displaced foreign tax credits will become part of our foreign tax credit carryforward, on which a full valuation allowance has been recorded.
Accordingly, we have recorded a charge to tax expense in 2006 for this item.
We have various tax years under examination by tax authorities in various countries, such as the United Kingdom, and in various states, such as New York, in which we have significant business operations.
It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes.
We have established tax reserves that we believe to be adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation.
We regularly assess the likelihood of additional tax assessments in those jurisdictions and adjust our reserves as additional information or events require.
See Note 19 for further information.
Note 10: Debt Long-Term Debt A summary of the carrying amounts and fair values of our long-term debt is as follows:
## Table 3 ##
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (Amounts in Millions, Except Per Share Amounts) Annual maturities as of December 31, 2006 are scheduled as follows:
## Table 4 ##
In addition, holders of our $400.0 4.50% Notes may require us to repurchase their 4.50% Notes for cash at par in March 2008.
These Notes will mature in 2023 if not converted or repurchased.
Redemption of Long-Term Debt In August 2005, we redeemed the remainder of our 7.875% Senior Unsecured Notes with an aggregate principal amount of $250.0 at maturity for a total cost of $258.6, which included the principal amount of the Notes, accrued interest to the redemption date, and a prepayment penalty of $1.4.
To redeem these Notes we used the proceeds from the sale and issuance in July 2005 of $250.0 Floating Rate Senior Unsecured Notes due 2008.
Floating Rate Senior Unsecured Notes In December 2006, we exchanged all of our $250.0 Floating Rate Notes due 2008 for $250.0 aggregate principal amount Floating Rate Notes due 2010.
The new Floating Rate Notes mature on November 15, 2010 and bear interest at a per annum rate equal to three-month LIBOR plus 200 basis points, 125 basis points less than the interest rate on the old Floating Rate Notes.
In connection with the exchange, we made an early participation payment of $41.25 (actual amount) in cash per $1,000 (actual amount) principal amount of old Floating Rate Notes for a total payment of $10.3.
In accordance with EITF Issue No.96-19, Debtor’s Accounting for a Modification or Exchange of Debt Instruments (“EITF 96-19”), this transaction is treated as an exchange of debt for accounting purposes because the present value of the remaining cash flows under the terms of the original instrument are not substantially different from those of the new instrument.
The new Floating Rate Notes are reflected on our Consolidated Balance Sheet net of the $10.3 early participation payment, which is amortized over the life of the new Floating Rate Notes as a discount, using an effective interest method, and recorded in interest expense.
Direct fees associated with the exchange of $3.5 were reflected in interest expense.4.25% and 4.50% Convertible Senior Notes In November 2006, we exchanged $400.0 of our 4.50% Convertible Senior Notes due 2023 (the “4.50% Notes”) for $400.0 aggregate principal amount of 4.25% Convertible Senior Notes due 2023 (the “4.25% Notes”).
As required by EITF 96-19, this exchange is treated as an extinguishment of the 4.50% Notes and an issuance of 4.25% Notes for accounting purposes because the present value of the remaining cash flows plus the fair value of the embedded conversion option under the terms of the original instrument are substantially different from those of the new instrument.
As a result, the 4.25% Notes are reflected on our Consolidated Balance Sheet at their fair value at issuance, or $477.0.
We recorded a non-cash charge in the fourth quarter of 2006 of $77.0 reflecting the difference between the fair value of the new debt and the carrying value of the old debt.
The difference between fair value and carrying value will be amortized through March 15, 2012, which is the first date holders may require us to repurchase the 4.25% Notes, resulting in a reduction of reported interest expense in future periods.
We also recorded a non-cash charge of $3.8 for the extinguishment of unamortized debt issuance costs related to the exchanged 4.50% Notes.
Our 4.25% Notes are convertible into our common stock at a conversion price of $12.42 per share, subject to adjustment in specified circumstances including any payment of cash dividends on our common stock.
The conversion rate of the new notes is also subject to adjustment for certain events arising from stock splits and combinations, stock dividends, certain cash dividends and certain other actions by us that modify our capital

<table><tr><td></td><td></td><td colspan="3"> Components of change during the year</td><td></td><td colspan="4"> Change</td></tr><tr><td></td><td> Prior year   amount</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> Reported   amount</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> Total</td></tr><tr><td> 2006</td><td>$2,288.1</td><td>6.5</td><td>-95.8</td><td>-119.8</td><td>$2,079.0</td><td>0.3%</td><td>-4.2%</td><td>-5.2%</td><td>-9.1%</td></tr><tr><td> 2005</td><td>2,250.4</td><td>13.9</td><td>-88.6</td><td>112.4</td><td>2,288.1</td><td>0.6%</td><td>-3.9%</td><td>5.0%</td><td>1.7%</td></tr></table>
<table><tr><td></td><td></td><td colspan="3"> Components of change during 2006</td><td></td><td colspan="4"> Change</td></tr><tr><td></td><td> 2005</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> 2006</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> Total</td></tr><tr><td> Total</td><td>$5,327.8</td><td>19.7</td><td>-151.9</td><td>35.0</td><td>$5,230.6</td><td>0.4%</td><td>-2.9%</td><td>0.7%</td><td>-1.8%</td></tr><tr><td> Domestic</td><td>2,904.6</td><td>—</td><td>-37.8</td><td>-26.8</td><td>2,840.0</td><td>—</td><td>-1.3%</td><td>-0.9%</td><td>-2.2%</td></tr><tr><td> International</td><td>2,423.2</td><td>19.7</td><td>-114.1</td><td>61.8</td><td>2,390.6</td><td>0.8%</td><td>-4.7%</td><td>2.6%</td><td>-1.3%</td></tr></table>
<table><tr><td></td><td></td><td colspan="3"> Components of change during 2005</td><td></td><td colspan="4"> Change</td></tr><tr><td></td><td> 2004</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> 2005</td><td> Foreign   currency</td><td> Net   acquisitions/   (divestitures)</td><td> Organic</td><td> Total</td></tr><tr><td> Total</td><td>$5,399.2</td><td>39.5</td><td>-46.0</td><td>-64.9</td><td>$5,327.8</td><td>0.7%</td><td>-0.9%</td><td>-1.2%</td><td>-1.3%</td></tr><tr><td> Domestic</td><td>2,933.3</td><td>—</td><td>-23.1</td><td>-5.6</td><td>2,904.6</td><td>—</td><td>-0.8%</td><td>-0.2%</td><td>-1.0%</td></tr><tr><td> International</td><td>2,465.9</td><td>39.5</td><td>-22.9</td><td>-59.3</td><td>2,423.2</td><td>1.6%</td><td>-0.9%</td><td>-2.4%</td><td>-1.7%</td></tr></table>
<table><tr><td></td><td></td><td colspan="4"> Years ended December 31,</td></tr><tr><td></td><td> Effective </td><td colspan="2"> 2006</td><td colspan="2"> 2005</td></tr><tr><td></td><td> Interest </td><td> Book </td><td> Fair </td><td> Book </td><td> Fair </td></tr><tr><td></td><td> Rate<sup>1</sup></td><td> Value</td><td> Value</td><td> Value</td><td> Value</td></tr><tr><td>Floating Rate Senior Unsecured Notes due 2008</td><td>—</td><td>$—</td><td>$—</td><td>$250.0</td><td>$250.6</td></tr><tr><td>5.40% Senior Unsecured Notes due 2009 (less unamortized discount of $0.2)</td><td>5.43%</td><td>249.8</td><td>245.0</td><td>249.7</td><td>225.0</td></tr><tr><td>Floating Rate Senior Unsecured Notes due 2010 (less unamortized discount of $10.1)</td><td>8.65%</td><td>239.9</td><td>253.8</td><td>—</td><td>—</td></tr><tr><td>7.25% Senior Unsecured Notes due 2011</td><td>7.25%</td><td>499.3</td><td>500.0</td><td>499.2</td><td>465.0</td></tr><tr><td>6.25% Senior Unsecured Notes due 2014 (less unamortized discount of $0.8)</td><td>6.29%</td><td>350.2</td><td>322.0</td><td>350.3</td><td>297.5</td></tr><tr><td>4.50% Convertible Senior Notes due 2023</td><td>4.50%</td><td>400.0</td><td>467.2</td><td>800.0</td><td>834.0</td></tr><tr><td>4.25% Convertible Senior Notes due 2023 (plus unamortized premium of $75.2)</td><td>0.58%</td><td>475.2</td><td>487.2</td><td>—</td><td>—</td></tr><tr><td>Other notes payable and capitalized leases — at interest rates from 1.2% to 19.5%</td><td></td><td>36.8</td><td></td><td>36.9</td><td></td></tr><tr><td>Total long-term debt</td><td></td><td>2,251.2</td><td></td><td>2,186.1</td><td></td></tr><tr><td>Less: current portion</td><td></td><td>2.6</td><td></td><td>3.1</td><td></td></tr><tr><td>Long-term debt, excluding current portion</td><td></td><td>$2,248.6</td><td></td><td>$2,183.0</td><td></td></tr></table>
<table><tr><td>2007</td><td>$2.6</td></tr><tr><td>2008<sup>1</sup></td><td>2.8</td></tr><tr><td>2009</td><td>257.0</td></tr><tr><td>2010</td><td>240.9</td></tr><tr><td>2011</td><td>500.0</td></tr><tr><td>Thereafter</td><td>1,247.9</td></tr><tr><td>Total long-term debt</td><td>$2,251.2</td></tr></table>

Question: What is the increasing rate of the Book Value of the total long-term debt between 2005 and 2006?
Answer: 0.02978