Contracts and customer purchase orders are generally used to determine the existence of an arrangement.
Shipping documents are used to verify delivery.
The company assesses whether the selling price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment.
The company assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history.
Accruals for customer returns for defective product are based on historical experience with similar types of sales.
Accruals for rebates and incentives are based on pricing agreements and are generally tied to sales volume.
Changes in such accruals may be required if future returns differ from historical experience or if actual sales volume differ from estimated sales volume.
Rebates and incentives are recognized as a reduction of sales.
Compensated absences.
In the fourth quarter of 2001, the company changed its vacation policy for certain employees so that vacation pay is earned ratably throughout the year and must be used by year-end.
The accrual for compensated absences was reduced by $1.6 million in 2001 to eliminate vacation pay no longer required to be accrued under the current policy.
Advertising.
Advertising costs are charged to operations as incurred and amounted to $18.4, $16.2 and $8.8 million during 2003, 2002 and 2001 respectively.
Research and development.
Research and development costs are charged to operations as incurred and amounted to $34.6, $30.4 and $27.6 million during 2003, 2002 and 2001, respectively.
Product warranty.
The company’s products carry warranties that generally range from one to six years and are based on terms that are generally accepted in the market place.
The company records a liability for the expected cost of warranty-related claims at the time of sale.
The allocation of our warranty liability between current and long-term is based on expected warranty claims to be paid in the next year as determined by historical product failure rates.1.
Organization and Significant Accounting Policies (continued) The following table presents the company’s product warranty liability activity in 2003 and 2002:
## Table 0 ##
(1) In exchange for other concessions, the customer has agreed to accept responsibility for units they have purchased from the company which become defective.
The amount of the warranty reserve applicable to the estimated number of units previously sold to this customer that may become defective has been reclassified from the product warranty liability to a deferred revenue account.
Environmental costs.
The company accrues for losses associated with environmental obligations when such losses are probable and reasonably estimable.
Costs of estimated future expenditures are not discounted to their present value.
Recoveries of environmental costs from other parties are recorded as assets when their receipt is considered probable.
The accruals are adjusted as facts and circumstances change.
Stock based compensation.
The company has one stock-based employee compensation plan (see Note 11).
SFAS No.123, “Accounting for Stock-Based Compensation,” encourages, but does not require companies to record compensation cost for stock-based employee compensation plans at fair value.
The company has chosen to continue applying Accounting Principles Board Opinion No.25, “Accounting for Stock Issued to Employees,” and related interpretations, in accounting for its stock option plans.
Accordingly, because the number of shares is fixed and the exercise price of the stock options equals the market price of the underlying stock on the date of grant, no compensation expense has been recognized.
Had compensation cost been determined based upon the fair value at the grant date for awards under the plans based on the provisions of SFAS No.123, the company’s pro forma earnings and earnings per share would have been as follows:
We are pursuing various legal remedies to protect our interests.
We believe that ultimate disposition of this matter will not have a material adverse affect on our financial position, results of operations, or cash flows.
Legal Proceedings – We are among a group of 18 defendants named in a lawsuit filed August 23, 2002 by Dore Energy Corporation under Docket Number 10-16202 in the 38th Judicial District Court, Cameron Parish, Louisiana.
The lawsuit alleges damage to property owned by Dore resulting from oil and gas activities dating to the 1930’s.
Our predecessor, Samedan Oil Corporation, operated on a portion of the property from 1989 to 1999.
Dore has delivered documents alleging approximately $140 million in damages.
Trial is currently set for April 27, 2009.
We intend to vigorously defend against these allegations and believe that our share of damages, if any, will not have a material adverse effect on our financial position, results of operations, or cash flows.
We are involved in various other legal proceedings in the ordinary course of business.
These proceedings are subject to the uncertainties inherent in any litigation.
We are defending ourselves vigorously in all such matters and we believe that the ultimate disposition of such proceedings will not have a material adverse effect on our financial position, results of operations or cash flows.
Non-Cancelable Leases and Other Commitments—We hold leases and other commitments for drilling rigs, buildings, equipment and other properties.
Rental expense for office buildings and oil and gas operations equipment was approximately $20 million in 2008, $13 million in 2007, and $12 million in 2006.
Minimum commitments as of December 31, 2008 consist of the following:
## Table 1 ##
Note 18 – Recently Issued Pronouncements SFAS 141(R) and SFAS 160 – In 2007, the FASB issued SFAS No.141(R), “Business Combinations” (SFAS 141(R)) and SFAS No.160, “Noncontrolling Interests in Consolidated Financial Statements” (SFAS 160).
These statements require most identifiable assets, liabilities and noncontrolling interests to be recorded at full fair value and require noncontrolling interests to be reported as a component of equity.
Both statements are effective for periods beginning on or after December 15, 2008.
SFAS 141(R) will be applied to business combinations occurring after the effective date and SFAS 160 will be applied prospectively to all noncontrolling interests, including any that arose before the effective date.
We adopted SFAS 141(R) and SFAS 160 as of January 1, 2009.
There were no noncontrolling interests at adoption date.
Adoption had no effect on our financial position and results of operations.
Adoption of SFAS 159—In 2007, the FASB issued SFAS No.159, “The Fair Value Option for Financial Assets and Financial Liabilities” (SFAS 159).
SFAS 159 provides companies with an option to report selected financial assets and liabilities at fair value.
SFAS 159 was effective as of the beginning of an entity’s first fiscal year beginning after November 15, 2007.
We adopted SFAS 159 as of January 1, 2008.
Adoption had no effect on our financial position or results of operations as we made no elections to report selected financial assets or liabilities at fair value.
SFAS 161 – In March 2008, the FASB issued SFAS No.161, “Disclosures about Derivative Instruments and Hedging Activities” (SFAS 161).
SFAS 161 amends and expands the disclosure requirements of SFAS 133 and requires qualitative disclosures about objectives and strategies for using derivative instruments, quantitative disclosures about fair value amounts of derivative instruments and related gains and losses, and disclosures about credit-risk-related contingent features in derivative agreements.
SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.
We adopted SFAS 161 as of January 1, 2009.
The statement provides only for enhanced disclosures.
Therefore, adoption had no impact on our financial position or results of operations.
FSP FAS 132(R) – In December 2008, the FASB issued FSP FAS 132(R), “Employers’ Disclosures About Postretirement Benefit Plan Assets” (FSP FAS 132(R)).
FSP FAS 132(R) requires employers to make additional
Additionally, all former Patina employees were covered under the medical and life insurance plans effective January 1, 2006.
On December 31, 2006, we adopted SFAS 158, which required us to recognize the funded status (the difference between the fair value of plan assets and the benefit obligation) of our defined benefit pension, restoration and other postretirement benefit plans in the consolidated balance sheet, with a corresponding adjustment to AOCL, net of tax.
The adjustment to AOCL at adoption represented the unrecognized net actuarial loss, unrecognized prior service cost, and unrecognized net transition obligation remaining from the initial adoption of SFAS No.87, “Employers’ Accounting for Pensions” and SFAS No.106, “Employers’ Accounting for Post-Retirement Benefits Other Than Pensions”.
These amounts are currently being recognized as net periodic benefit cost pursuant to our historical accounting policy for amortizing such amounts.
Further, actuarial gains and losses that arise in periods subsequent to adoption and are not recognized as net periodic benefit cost in the same periods are recognized as a component of AOCL.
The adoption of SFAS 158 had no effect on our consolidated statements of operations for the year ended December 31, 2006, for any prior period presented, or for any periods subsequent to adoption.
Changes in the benefit obligation and plan assets of the pension, restoration and other postretirement benefit plans are as follows at December 31:
## Table 2 ##

<table><tr><td>Years ended December 31 (dollars in millions)</td><td>2003</td><td>2002</td></tr><tr><td>Balance at beginning of year</td><td>$63.2</td><td>$69.6</td></tr><tr><td>Expense</td><td>29.1</td><td>29.9</td></tr><tr><td>Claims settled</td><td>-30.2</td><td>-29.1</td></tr><tr><td>Customer warranty waiver -1</td><td>--</td><td>-7.2</td></tr><tr><td>Balance at end of year</td><td>$62.1</td><td>$63.2</td></tr></table>
<table><tr><td></td><td>Drilling, Equipment, and Purchase Obligations (in millions)</td><td>Throughput Agreement</td><td>Transportation and Gathering</td><td>Operating Lease Obligations</td><td>Total</td></tr><tr><td>2009</td><td>$485</td><td>$14</td><td>$12</td><td>$12</td><td>$523</td></tr><tr><td>2010</td><td>439</td><td>19</td><td>9</td><td>10</td><td>477</td></tr><tr><td>2011</td><td>399</td><td>19</td><td>8</td><td>8</td><td>434</td></tr><tr><td>2012</td><td>72</td><td>19</td><td>5</td><td>7</td><td>103</td></tr><tr><td>2013</td><td>-</td><td>19</td><td>5</td><td>1</td><td>25</td></tr><tr><td>2014 and thereafter</td><td>-</td><td>5</td><td>4</td><td>18</td><td>27</td></tr><tr><td>Total</td><td>$1,395</td><td>$95</td><td>$43</td><td>$56</td><td>$1,589</td></tr></table>
<table><tr><td></td><td colspan="2">Retirement and Restoration Plans</td><td colspan="2">Medical and Life Plans</td></tr><tr><td></td><td>2008</td><td>2007</td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Change in benefit obligation</td><td></td><td></td><td></td><td></td></tr><tr><td>Benefit obligation at beginning of year</td><td>$188</td><td>$175</td><td>$22</td><td>$22</td></tr><tr><td>Service cost</td><td>12</td><td>12</td><td>2</td><td>2</td></tr><tr><td>Interest cost</td><td>12</td><td>10</td><td>1</td><td>1</td></tr><tr><td>Amendments</td><td>-</td><td>8</td><td>-</td><td>-</td></tr><tr><td>Benefits paid</td><td>-17</td><td>-6</td><td>-1</td><td>-1</td></tr><tr><td>Actuarial (gain) loss</td><td>-1</td><td>-11</td><td>-2</td><td>-2</td></tr><tr><td>Benefit obligation at end of year</td><td>194</td><td>188</td><td>22</td><td>22</td></tr><tr><td>Change in plan assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>155</td><td>137</td><td>-</td><td>-</td></tr><tr><td>Actual return on plan assets</td><td>-43</td><td>13</td><td>-</td><td>-</td></tr><tr><td>Employer contributions</td><td>37</td><td>11</td><td>1</td><td>1</td></tr><tr><td>Benefits paid</td><td>-17</td><td>-6</td><td>-1</td><td>-1</td></tr><tr><td>Fair value of plan assets at end of year</td><td>132</td><td>155</td><td>-</td><td>-</td></tr><tr><td>Funded status</td><td></td><td></td><td></td><td></td></tr><tr><td>Funded status at end of year</td><td>-62</td><td>-33</td><td>-22</td><td>-22</td></tr><tr><td>Net amount recognized in consolidated balancesheets (after adoption of FAS 158)</td><td>-62</td><td>-33</td><td>-22</td><td>-22</td></tr><tr><td>Amounts recognized in consolidated balance sheets consist of:</td><td></td><td></td><td></td><td></td></tr><tr><td>Current liabilities</td><td>-2</td><td>-3</td><td>-1</td><td>-1</td></tr><tr><td>Noncurrent liabilities</td><td>-60</td><td>-30</td><td>-21</td><td>-21</td></tr><tr><td>Net amount recognized in consolidated balancesheets (after adoption of FAS 158)</td><td>-62</td><td>-33</td><td>-22</td><td>-22</td></tr><tr><td>Amounts not yet reflected in net periodic benefit cost and included in AOCL</td><td></td><td></td><td></td><td></td></tr><tr><td>Transition obligation</td><td>-</td><td>-1</td><td>-</td><td>-</td></tr><tr><td>Prior service (cost) credit</td><td>-3</td><td>-3</td><td>5</td><td>6</td></tr><tr><td>Accumulated loss</td><td>-86</td><td>-34</td><td>-10</td><td>-14</td></tr><tr><td>AOCL</td><td>-89</td><td>-38</td><td>-5</td><td>-8</td></tr><tr><td>Cumulative employer contributions in excess of net periodic benefit cost</td><td>27</td><td>5</td><td>-17</td><td>-14</td></tr><tr><td>Net amount recognized in consolidated balance sheet (after adoption of FAS 158)</td><td>$-62</td><td>-33</td><td>$-22</td><td>-22</td></tr></table>

Question: what was the percentage change in research and development costs between 2001 and 2002?
Answer: 0.10145