During the second quarter of 2005, the Company repurchased all of its outstanding $2.5 billion aggregate principal amount 4.75% Notes due 2006, and incurred an aggregate pre-tax loss of approximately $69 million in connection with the early redemption of the Notes and termination of related interest rate swaps.
A majority of the Company’s debt is fixed rate.
The Company, however, has entered into fixed to floating interest rate swaps for During the second quarter of 2005, the Company repurchased all of its outstanding $2.5 billion aggregate principal amount 4.75% Notes due 2006, and incurred an aggregate pre-tax loss of approximately $69 million in connection with the early redemption of the Notes and termination of related interest rate swaps.
A majority of the Company¡¯s debt is fixed rate.
The Company, however, has entered into fixed to floating interest rate swaps for $3.9 billion of its long-term debt, including €1 billion Euro.
Interest expense, net of interest swap gains, was $498 million, $349 million, and $310 million, in 2006, 2005 and 2004, respectively.
The increase in interest expense in 2006 from 2005 and in 2005 from 2004 was primarily due to higher interest rates.
The Moody¡¯s Investors Service (Moody¡¯s) long-term and short-term credit ratings for the Company are currently A2 and Prime- 1, respectively, following a downgrade of the long-term credit rating during the third quarter of 2006 from A1.
Moody¡¯s long-term credit rating was amended from negative outlook to stable outlook in the third quarter of 2006.
Standard & Poor¡¯s (S&P) long-term and short-term credit ratings for the Company are currently A+ and A-1, respectively.
S&P¡¯s long-term credit rating remains on negative outlook.
Fitch Ratings (Fitch) long-term and short-term credit ratings for the Company are currently A+ and F1, respectively.
Fitch has placed the Company on Rating Watch Negative.
Working capital for the years ended December 31, 2006 and 2005 were as follows:
## Table 0 ##
The decrease in working capital of $1,587 million from December 31, 2005 to December 31, 2006 was impacted by: ?
Decrease in cash and marketable securities, primarily due to the repayment of long-tem debt.  ?
Lower receivables, primarily due to lower Plavix sales and the loss of exclusivity of Pravachol, mostly offset by higher receivables due from alliance partners.  ?
Increase in inventories to support growth drivers and recently launched products, mostly offset by a reduction of Pravachol inventory resulting from loss of exclusivity.  ?
Reduction in deferred tax assets in 2006, primarily due to litigation settlement payments.  ?
Lower accounts payable due to lower purchases of Pravachol raw materials.  ?
Increase in deferred income resulting from higher deferred alliance revenue.  ?
Lower accrued rebates and returns, primarily due to exclusivity loss of Pravachol, volume erosion on highly rebated Paraplatin and TAXOL?
(paclitaxel) and lower Plavix volumes, partially offset by higher sales returns.
Cash flow activities for the years ended December 31, 2006, 2005 and 2004 were as follows:
## Table 1 ##
Net cash provided by operating activities was $2.1 billion in 2006 and $1.8 billion in 2005.
The $247 million increase in 2006 compared to 2005 is mainly attributable to significant changes in adjustments to net earnings of $1,398 million and net changes in operating assets and liabilities of $264 million, offset by lower net earnings of $1,415 million.
Significant positive changes in adjustments to net earnings in 2006 compared to 2005, of $1,398 million, mainly included: ?
A $576 million positive cash flow variance in the deferred income tax expense/(benefit), due to a lower level of increase in deferred tax benefit in 2006 compared to 2005.
In 2006, there was an increase in deferred tax benefits associated with U. S.  research and development, foreign tax credits and an increase in litigation reserves.
In 2005, there was an increase in deferred tax benefits associated with the reversal of the tax liability related to the repatriation of special dividends under the AJCA.  ?
A $425 million positive cash flow variance, due to lower gain on sale of a product asset in 2006 as compared to sale of a business in 2005.  ?
A $143 million positive cash flow variance for deferred income recognized related to the termination of the muraglitazar collaborative agreement in 2005.
Bristol-Myers Squibb 44 The Company provides comprehensive medical and group life benefits for substantially all U. S.  retirees who elect to participate in the Company’s comprehensive medical and group life plans.
The asset allocation for these postretirement plans is identical to the asset allocation described above for the U. S.  defined benefit pension plans.
Accrual Accounting and Significant Assumptions Consistent with the requirements of SFAS No.87, the Company accounts for pension benefits using the accrual method, recognizing pension expense before the payment of benefits to retirees.
The accrual method of accounting for pension benefits necessarily requires actuarial assumptions concerning future events that will determine the amount and timing of the benefit payments.
The Company’s key assumptions used in calculating its cost of pension benefits are the discount rate, the rate of compensation increase, and the expected long-term rate of return on plan assets.
The Company, in consultation with its actuaries, evaluates the key actuarial assumptions and other assumptions used in calculating its cost of pension benefits, such as retirement, turnover and mortality rates, based on expectations or actual experience, as appropriate, and determines such assumptions on December 31 of each year to calculate liability information as of that date and pension expense for the following year.
Depending on the assumptions used, the pension expense could vary within a range of outcomes and have a material effect on reported earnings.
In addition, the assumptions can materially affect projected benefit obligations and future cash funding.
Actual results in any given year may differ from those estimated because of economic and other factors.
In determining the discount rate, the Company uses the yield on high quality corporate bonds that coincides with the cash flows of its plans’ estimated payouts.
The Citigroup Above Median yield curve is used in determining the discount rate for the U. S.  plans.
The assumed rate of compensation increase used by the Company for determining future pension obligations reflects an estimate of the change in actual future compensation levels due to general price levels, productivity, seniority and other factors.
In 2006, net pension expense for the Company’s defined benefit pension plans included in earnings before minority interest and income taxes was $332 million compared to $392 million in 2005.
The U. S.  plans’ pension expense for 2006 was determined using a 5.75% assumed discount rate and a 3.56% assumed rate of compensation increase.
The present value of benefit obligations at December 31, 2006 for the U. S.  plans was determined using a 6.00% assumed discount rate and a 3.56% assumed rate of compensation increase.
If the assumed discount rate used in determining the U. S.  plans’ pension expense for 2006 had been reduced by 0.25%, such expense would have increased by approximately $18 million.
If the assumed rate of compensation increase used in determining the U. S.  plans’ pension expense for 2006 had been reduced by 0.25%, such expense would have decreased by approximately $9 million.
If the assumed discount rate used in determining the accumulated benefit obligation at December 31, 2006 had been reduced by 0.25%, the accumulated benefit obligation would have increased by $123 million.
The U. S.  plans’ pension expense for 2006 was determined using an 8.75% expected long-term rate of return on plan assets.
If the expected long-term rate of return on plan assets used in determining the U. S.  plans’ pension expense for 2006 had been reduced by 1%, such expense would have increased by $38 million.
Actual rates of return earned on U. S.  plan assets for each of the last 10 years were as follows:
## Table 2 ##
At December 31, 2006, the Company increased its assumed discount rate for U. S.  plans from 5.75% to 6.00% and maintained its assumed rate of compensation increase at 3.56%.
Compensation is assumed to increase on a scale with different rates for different ages.
The 3.56% rate disclosed at December 31, 2006 is the single rate, which, if used at each age, would produce the same present value of benefit obligations.
The Company maintained the expected rate of return on U. S.  plan assets at 8.75% for 2007.
The Company expects that the net pension expense for its defined benefit pension plans included in earnings before minority interest and income taxes will be approximately $25 million lower in 2007 than the $332 million in 2006, reflecting primarily the positive delayed impact of the favorable 2004-2006 investment returns.
Bristol-Myers Squibb 52 SFAS No.133 requires the revaluation, at fair value, of the swap contracts as well as the underlying debt being hedged.
As such, the swap contracts and the underlying debt have been revalued resulting in an increase in non-current assets of $7 million, and current liabilities of $57 million, and a reduction in long-term debt of $50 million at December 31, 2006; and an increase in non-current assets of $21 million, and current liabilities of $51 million, and a reduction in long-term debt of $30 million at December 31, 2005.
Swap contracts are generally held to maturity and are intended to create an appropriate balance of fixed and floating rate debt for the Company.
Swap contracts that qualify as fair value hedges that are terminated prior to their maturity dates are reported as part of the carrying value of the underlying debt and are amortized to earnings over the remaining life of the debt.
Swap contracts that qualify as cash flow hedges that are terminated are reported in accumulated other comprehensive income and amortized to earnings over the remaining life of the debt.
Interest rate swaps outstanding as of December 31, 2006 and terminated interest rate swaps for 2006 and 2005 were as follows:
## Table 3 ##
(1) The underlying 2011 and 2006 Notes were extinguished in 2006 and 2005, respectively.
Bristol-Myers Squibb 52 SFAS No.133 requires the revaluation, at fair value, of the swap contracts as well as the underlying debt being hedged.
As such, the swap contracts and the underlying debt have been revalued resulting in an increase in non-current assets of $7 million, and current liabilities of $57 million, and a reduction in long-term debt of $50 million at December 31, 2006; and an increase in non-current assets of $21 million, and current liabilities of $51 million, and a reduction in long-term debt of $30 million at December 31, 2005.
Swap contracts are generally held to maturity and are intended to create an appropriate balance of fixed and floating rate debt for the Company.
Swap contracts that qualify as fair value hedges that are terminated prior to their maturity dates are reported as part of the carrying value of the underlying debt and are amortized to earnings over the remaining life of the debt.
Swap contracts that qualify as cash flow hedges that are terminated are reported in accumulated other comprehensive income and amortized to earnings over the remaining life of the debt.
Interest rate swaps outstanding as of December 31, 2006 and terminated interest rate swaps for 2006 and 2005 were as follows:
## Table 4 ##
(1) The underlying 2011 and 2006 Notes were extinguished in 2006 and 2005, respectively.
At December 31, 2006, the Company held interest rate swap contracts with a notional value of $2.6 billion and €1.0 billion Euro ($1.3 billion) and a fair value of a net liability of $50 million.
It is estimated that an increase or decrease of 50 basis points in short-term or long-term interest rates would not have a material impact on the Company¡¯s consolidated financial position, results of operations or cash flows.
The Company had $7,248 million and $8,364 million of long-term debt outstanding at December 31, 2006 and 2005, respectively.
For additional information, see Note 14 ¡°Short-Term Borrowings and Long-Term Debt¡± and see Note 17 ¡°Financial Instruments.
¡± The Company maintains cash, cash equivalents and marketable securities with various financial institutions, in order to limit exposure to any one financial institution.
These financial institutions are headquartered primarily in North America and Europe.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSIn order to borrow funds under the 5-Year Credit Facility, the Company must be in compliance with variousconditions, covenants and representations contained in the agreements.
The Company was in compliance with theterms of the 5-Year Credit Facility at December 31, 2006.
The Company has never borrowed under its domesticrevolving credit facilities.
Utilization of the non-U.
S.  credit facilities may also be dependent on the Company'sability to meet certain conditions at the time a borrowing is requested.
Contractual Obligations, Guarantees, and Other Purchase CommitmentsContractual ObligationsSummarized in the table below are the Company's obligations and commitments to make future paymentsunder debt obligations (assuming earliest possible exercise of put rights by holders), lease payment obligations, andpurchase obligations as of December 31, 2006.

<table><tr><td></td><td colspan="2"> December 31,</td></tr><tr><td> Dollars in Millions </td><td> 2006</td><td> 2005</td></tr><tr><td>Working capital</td><td>$3,806</td><td>$5,393</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td> Dollars in Millions </td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Cash flow provided by/(used in):</td><td></td><td></td><td></td></tr><tr><td>Operating activities</td><td>$2,083</td><td>$1,836</td><td>$3,176</td></tr><tr><td>Investing activities</td><td>206</td><td>1,191</td><td>-1,622</td></tr><tr><td>Financing activities</td><td>-3,351</td><td>-3,637</td><td>-463</td></tr></table>
<table><tr><td> Year</td><td>Return</td><td> Year</td><td>Return</td></tr><tr><td>2006</td><td>14.9%</td><td>2001</td><td>-6.1%</td></tr><tr><td>2005</td><td>9.8%</td><td>2000</td><td>3.5%</td></tr><tr><td>2004</td><td>12.6%</td><td>1999</td><td>18.2%</td></tr><tr><td>2003</td><td>25.0%</td><td>1998</td><td>13.3%</td></tr><tr><td>2002</td><td>-13.4%</td><td>1997</td><td>22.2%</td></tr></table>
<table><tr><td> Interest Rate Contracts</td><td> Notional Amount of Underlying Debt</td><td> Variable Rate Received</td><td> Year of Transaction</td><td> Maturity</td><td>Fair Value</td></tr><tr><td> Dollars in Millions </td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps associated with:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>4.00% Notes due 2008</td><td>$400</td><td>1 month U.S. $ LIBOR +0.35%</td><td>2003</td><td>2008</td><td>$-9</td></tr><tr><td>5.25% Notes due 2013</td><td>600</td><td>1 month U.S. $ LIBOR +0.42%</td><td>2003</td><td>2013</td><td>-9</td></tr><tr><td>4.375% €500 Million EUR Notes due 2016</td><td>656</td><td>3 month EUR € EURIBOR +0.40%</td><td>2006</td><td>2016</td><td>-12</td></tr><tr><td>4.625% €500 Million EUR Notes due 2021</td><td>656</td><td>3 month EUR € EURIBOR +0.56%</td><td>2006</td><td>2021</td><td>-16</td></tr><tr><td>7.15% Notes due 2023</td><td>350</td><td>1 month U.S. $ LIBOR +1.66%</td><td>2004</td><td>2023</td><td>7</td></tr><tr><td>5.875% Notes due 2036</td><td>1,250</td><td>1 month U.S. $ LIBOR +0.62%</td><td>2006</td><td>2036</td><td>-11</td></tr><tr><td></td><td>$3,912</td><td></td><td></td><td></td><td>$-50</td></tr></table>
<table><tr><td> Interest Rate Contracts</td><td> Year of Termination</td><td> Notional Amount of Underlying Debt</td><td>Total Pre-Tax Deferred Gain/(Loss)</td><td>2006 Pre-Tax Income/(Expense) Recognized</td><td>2005 Pre-Tax Income/(Expense) Recognized</td></tr><tr><td> Dollars in Millions </td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate swap lock associated with 5.75% Notes due 2011<sup>-1</sup></td><td>2001</td><td>$2,500</td><td>$-58</td><td>$-37</td><td>$-5</td></tr><tr><td>Interest Rate Swap Lock associated with 4.75% Notes due 2006</td><td>2001</td><td>2,000</td><td>-48</td><td>—</td><td>-15</td></tr><tr><td>Swaps associated with 4.75% Notes due 2006<sup>-1</sup></td><td>2005</td><td>2,000</td><td>-13</td><td>—</td><td>-13</td></tr><tr><td>Swaps associated with 5.75% Notes due 2011<sup>-1</sup></td><td>2005</td><td>500</td><td>-23</td><td>-21</td><td>-2</td></tr><tr><td>Swaps associated with 6.8% Notes due 2026</td><td>2005</td><td>350</td><td>39</td><td>1</td><td>—</td></tr><tr><td>Swaps associated with 5.75% Notes due 2011<sup>-1</sup></td><td>2006</td><td>2,000</td><td>-62</td><td>-62</td><td>—</td></tr><tr><td></td><td></td><td></td><td>$-165</td><td>$-119</td><td>$-35</td></tr></table>

Question: How many Notional Amount of Underlying Debt exceed the average of 4.625% €500 Million EUR Notes due 2021 in 2016?
Answer: 1