Item 6.
Selected Financial Data The following table sets forth selected financial data for each of the five years in the period ended December 31, 2006 (amounts in millions, except per share amounts).
This financial data should be read together with our consolidated financial statements and related notes, Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other financial data appearing elsewhere in this report.
## Table 0 ##
UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26 Revenue per piece for our Next Day Air and deferred products decreased in 2012 compared with 2011, as declines in fuel surcharge rates and product mix changes more than offset the impact of a base rate increase that took effect in early 2012.
Changes in product mix negatively impacted revenue per piece for our air products, as our lightweight service offerings accounted for a larger portion of our overall air volume in 2012 compared with 2011, and our Next Day Air Saver volume continued to grow at a faster rate than our premium Next Day Air services.
Ground revenue per piece increased in 2012 compared with 2011, primarily due to a base rate increase that took effect in early 2012; however, this was partially offset by product mix changes, as strong volume growth in our lightweight service offerings resulted in these relatively lower-yielding products accounting for a greater portion of our overall volume in 2012, compared with 2011.
Revenue per piece for our ground and air products was positively impacted by an increase in base rates that took effect on January 2, 2012.
We increased the base rates 6.9% on UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select, and 5.9% on UPS Ground, while reducing our fuel surcharge indices (discussed further below).
Other pricing changes included an increase in the residential surcharge, and an increase in the delivery area surcharge on certain residential and commercial services.
These rate changes are customary and occur on an annual basis.2011 compared to 2010 Overall revenue per piece increased for our ground and air products during 2011 due to a combination of base price increases and fuel surcharge rate changes, which are discussed further below.
The overall revenue per piece increase was also positively affected by our focus on revenue management initiatives.
In addition, the revenue per piece increase for our air products was positively impacted by the overall mix shift from letters to packages.
Comparing the fourth quarter of 2011 with 2010, the average revenue per piece increase slowed to 3.4% due to the higher volume of lighter-weight business-to-consumer packages.
Revenue per piece for our ground and air products was also impacted by an increase in base rates that took effect on January 3, 2011.
We increased the base rates 6.9% on UPS Next Day Air, UPS 2nd Day Air, and UPS 3 Day Select, and 5.9% on UPS Ground, while reducing our fuel surcharge indices (discussed further below).
Other pricing changes included an increase in the residential surcharge, and an increase in the delivery area surcharge on both residential and commercial services to certain ZIP codes.
Fuel Surcharges UPS applies a fuel surcharge on our domestic air and ground services.
The air fuel surcharge is based on the U. S.  Department of Energy’s (“DOE”) Gulf Coast spot price for a gallon of kerosene-type jet fuel, while the ground fuel surcharge is based on the DOE’s On-Highway Diesel Fuel Price.
Based on published rates, the average fuel surcharge rates for domestic air and ground products were as follows:
## Table 1 ##
In connection with our base rate increases on January 2, 2012 and January 3, 2011, we modified the fuel surcharge on air and ground services by reducing the index used to determine the fuel surcharge by 2% and 1%, respectively, each year.
In 2012, these index reductions offset the increase in jet and diesel fuel prices, resulting in a small decrease in the average air fuel surcharge rate and no change in the average ground surcharge rate.
The 2011 increases in the air and ground fuel surcharge rates were due to the significant increases in jet and diesel fuel prices, but partially offset by the reductions in the index on both the air and ground surcharges.
Total domestic fuel surcharge revenue increased $54 and $884 million in 2012 and 2011, respectively, primarily due to volume growth in 2012 and the higher fuel surcharge rates in 2011.
Contractual Commitments We have contractual obligations and commitments in the form of capital leases, operating leases, debt obligations, purchase commitments, and certain other liabilities.
We intend to satisfy these obligations through the use of cash flow from operations.
The following table summarizes the expected cash outflow to satisfy our contractual obligations and commitments as of December 31, 2010 (in millions):
## Table 2 ##
Our capital lease obligations relate primarily to leases on aircraft.
Capital leases, operating leases, and purchase commitments, as well as our debt principal obligations, are discussed further in Note 7 to our consolidated financial statements.
The amount of interest on our debt was calculated as the contractual interest payments due on our fixed-rate debt, in addition to interest on variable rate debt that was calculated based on interest rates as of December 31, 2010.
The calculations of debt interest take into account the effect of interest rate swap agreements.
For debt denominated in a foreign currency, the U. S.  Dollar equivalent principal amount of the debt at the end of the year was used as the basis to calculate future interest payments.
Purchase commitments represent contractual agreements to purchase goods or services that are legally binding, the largest of which are orders for aircraft, engines, and parts.
As of December 31, 2010, we have firm commitments to purchase 20 Boeing 767-300ER freighters to be delivered between 2011 and 2013, and two Boeing 747-400F aircraft scheduled for delivery during 2011.
These aircraft purchase orders will provide for the replacement of existing capacity and anticipated future growth.
Pension fundings represent the anticipated required cash contributions that will be made to our qualified pension plans.
These contributions include those to the UPS IBT Pension Plan, which was established upon ratification of the national master agreement with the Teamsters, as well as the UPS Pension Plan.
These plans are discussed further in Note 5 to the consolidated financial statements.
The pension funding requirements were estimated under the provisions of the Pension Protection Act of 2006 and the Employee Retirement Income Security Act of 1974, using discount rates, asset returns, and other assumptions appropriate for these plans.
To the extent that the funded status of these plans in future years differs from our current projections, the actual contributions made in future years could materially differ from the amounts shown in the table above.
Additionally, we have not included minimum funding requirements beyond 2015, because these projected contributions are not reasonably determinable.
We are not subject to any minimum funding requirement for cash contributions in 2011 in the UPS Retirement Plan or UPS Pension Plan.
The amount of any minimum funding requirement, as applicable, for these plans could change significantly in future periods, depending on many factors, including future plan asset returns and discount rates.
A sustained significant decline in the world equity markets, and the resulting impact on our pension assets and investment returns, could result in our domestic pension plans being subject to significantly higher minimum funding requirements.
Such an outcome could have a material adverse impact on our financial position and cash flows in future periods.
The contractual payments due for “other liabilities” primarily include commitment payments related to our investment in certain partnerships.
The table above does not include approximately $284 million of liabilities for
forward starting swaps and similar instruments to lock in all or a portion of the borrowing cost of anticipated debt issuances.
Our floating rate debt and interest rate swaps subject us to risk resulting from changes in short-term (primarily LIBOR) interest rates.
We also are subject to interest rate risk with respect to our pension and postretirement benefit obligations, as changes in interest rates will effectively increase or decrease our liabilities associated with these benefit plans, which also results in changes to the amount of pension and postretirement benefit expense recognized in future periods.
We have investments in debt and preferred equity securities (including auction rate securities), as well as cash-equivalent instruments, some of which accrue income at variable rates of interest.
Additionally, we hold a portfolio of finance receivables that accrue income at fixed and floating rates of interest.
Equity Price Risk We hold investments in various common equity securities that are subject to price risk.
These securities are primarily in the form of equity index funds.
Credit Risk The forward contracts, swaps, and options previously discussed contain an element of risk that the counterparties may be unable to meet the terms of the agreements.
However, we minimize such risk exposures for these instruments by limiting the counterparties to financial institutions that meet established credit guidelines.
We do not expect to incur any material losses as a result of counterparty default.
Sensitivity Analysis The following analysis provides quantitative information regarding our exposure to commodity price risk, foreign currency exchange risk, interest rate risk, and equity price risk embedded in our existing financial instruments.
We utilize valuation models to evaluate the sensitivity of the fair value of financial instruments with exposure to market risk that assume instantaneous, parallel shifts in exchange rates, interest rate yield curves, and commodity and equity prices.
For options and instruments with non-linear returns, models appropriate to the instrument are utilized to determine the impact of market shifts.
There are certain limitations inherent in the sensitivity analyses presented, primarily due to the assumption that exchange rates change in a parallel fashion and that interest rates change instantaneously.
In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled.
While this is our best estimate of the impact of the specified interest rate scenarios, these estimates should not be viewed as forecasts.
We adjust the fixed and floating interest rate mix of our interest rate sensitive assets and liabilities in response to changes in market conditions.
Additionally, changes in the fair value of foreign currency derivatives and commodity derivatives are offset by changes in the cash flows of the underlying hedged foreign currency and commodity transactions.
S

<table><tr><td></td><td colspan="5">Years Ended December 31,</td></tr><tr><td></td><td>2006</td><td>2005</td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td> Selected Income Statement Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Domestic Package</td><td>$30,456</td><td>$28,610</td><td>$26,960</td><td>$25,362</td><td>$24,280</td></tr><tr><td>International Package</td><td>9,089</td><td>7,977</td><td>6,809</td><td>5,609</td><td>4,720</td></tr><tr><td>Supply Chain & Freight</td><td>8,002</td><td>5,994</td><td>2,813</td><td>2,514</td><td>2,272</td></tr><tr><td>Total revenue</td><td>47,547</td><td>42,581</td><td>36,582</td><td>33,485</td><td>31,272</td></tr><tr><td>Operating expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Compensation and benefits</td><td>24,421</td><td>22,517</td><td>20,823</td><td>19,251</td><td>17,849</td></tr><tr><td>Other</td><td>16,491</td><td>13,921</td><td>10,770</td><td>9,789</td><td>9,327</td></tr><tr><td>Total operating expenses</td><td>40,912</td><td>36,438</td><td>31,593</td><td>29,040</td><td>27,176</td></tr><tr><td>Operating profit (loss):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Domestic Package</td><td>4,923</td><td>4,493</td><td>3,702</td><td>3,657</td><td>3,925</td></tr><tr><td>International Package</td><td>1,710</td><td>1,494</td><td>1,149</td><td>732</td><td>338</td></tr><tr><td>Supply Chain and Freight</td><td>2</td><td>156</td><td>138</td><td>56</td><td>-167</td></tr><tr><td>Total operating profit</td><td>6,635</td><td>6,143</td><td>4,989</td><td>4,445</td><td>4,096</td></tr><tr><td>Other income (expense):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Investment income</td><td>86</td><td>104</td><td>82</td><td>18</td><td>63</td></tr><tr><td>Interest expense</td><td>-211</td><td>-172</td><td>-149</td><td>-121</td><td>-173</td></tr><tr><td>Gain on redemption of long-term debt</td><td>—</td><td>—</td><td>—</td><td>28</td><td>—</td></tr><tr><td>Reversal of tax assessment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,023</td></tr><tr><td>Income before income taxes</td><td>6,510</td><td>6,075</td><td>4,922</td><td>4,370</td><td>5,009</td></tr><tr><td>Income taxes</td><td>-2,308</td><td>-2,205</td><td>-1,589</td><td>-1,472</td><td>-1,755</td></tr><tr><td>Cumulative effect of change in accounting principle</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-72</td></tr><tr><td>Net income</td><td>$4,202</td><td>$3,870</td><td>$3,333</td><td>$2,898</td><td>$3,182</td></tr><tr><td>Per share amounts:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings per share</td><td>$3.87</td><td>$3.48</td><td>$2.95</td><td>$2.57</td><td>$2.84</td></tr><tr><td>Diluted earnings per share</td><td>$3.86</td><td>$3.47</td><td>$2.93</td><td>$2.55</td><td>$2.81</td></tr><tr><td>Dividends declared per share</td><td>$1.52</td><td>$1.32</td><td>$1.12</td><td>$0.92</td><td>$0.76</td></tr><tr><td>Weighted average shares outstanding:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>1,085</td><td>1,113</td><td>1,129</td><td>1,128</td><td>1,120</td></tr><tr><td>Diluted</td><td>1,089</td><td>1,116</td><td>1,137</td><td>1,138</td><td>1,134</td></tr><tr><td></td><td colspan="5">As of December 31,</td></tr><tr><td></td><td>2006</td><td>2005</td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td> Selected Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and marketable securities</td><td>$1,983</td><td>$3,041</td><td>$5,197</td><td>$3,952</td><td>$3,014</td></tr><tr><td>Total assets</td><td>33,210</td><td>34,947</td><td>32,847</td><td>29,734</td><td>26,868</td></tr><tr><td>Long-term debt</td><td>3,133</td><td>3,159</td><td>3,261</td><td>3,149</td><td>3,495</td></tr><tr><td>Shareowners’ equity</td><td>15,482</td><td>16,884</td><td>16,378</td><td>14,852</td><td>12,455</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31,</td><td colspan="2">% Point Change</td></tr><tr><td></td><td>2010</td><td>2009</td><td>2008</td><td>2010 / 2009</td><td>2009 / 2008</td></tr><tr><td>Next Day Air / Deferred</td><td>8.0%</td><td>4.0%</td><td>25.2%</td><td>4.0%</td><td>-21.2%</td></tr><tr><td>Ground</td><td>5.6%</td><td>3.3%</td><td>8.0%</td><td>2.3%</td><td>-4.7%</td></tr></table>
<table><tr><td>Commitment Type</td><td>2011</td><td>2012</td><td>2013</td><td>2014</td><td>2015</td><td>After 2016</td><td>Total</td></tr><tr><td>Capital Leases</td><td>$18</td><td>$19</td><td>$19</td><td>$20</td><td>$21</td><td>$112</td><td>$209</td></tr><tr><td>Operating Leases</td><td>348</td><td>268</td><td>205</td><td>150</td><td>113</td><td>431</td><td>1,515</td></tr><tr><td>Debt Principal</td><td>345</td><td>—</td><td>1,750</td><td>1,000</td><td>100</td><td>7,363</td><td>10,558</td></tr><tr><td>Debt Interest</td><td>322</td><td>321</td><td>300</td><td>274</td><td>269</td><td>4,940</td><td>6,426</td></tr><tr><td>Purchase Commitments</td><td>642</td><td>463</td><td>425</td><td>16</td><td>—</td><td>—</td><td>1,546</td></tr><tr><td>Pension Fundings</td><td>1,200</td><td>196</td><td>752</td><td>541</td><td>274</td><td>—</td><td>2,963</td></tr><tr><td>Other Liabilities</td><td>69</td><td>67</td><td>64</td><td>58</td><td>43</td><td>38</td><td>339</td></tr><tr><td>Total</td><td>$2,944</td><td>$1,334</td><td>$3,515</td><td>$2,059</td><td>$820</td><td>$12,884</td><td>$23,556</td></tr></table>

Question: what percentage of contractual obligations and commitments in total are debt principal and debt interest?
Answer: 0.72101