Backlog Applied manufactures systems to meet demand represented by order backlog and customer commitments.
Backlog consists of: (1) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months, or shipment has occurred but revenue has not been recognized; and (2) contractual service revenue and maintenance fees to be earned within the next 12 months.
Backlog by reportable segment as of October 26, 2014 and October 27, 2013 was as follows:
## Table 0 ##
Applied’s backlog on any particular date is not necessarily indicative of actual sales for any future periods, due to the potential for customer changes in delivery schedules or cancellation of orders.
Customers may delay delivery of products or cancel orders prior to shipment, subject to possible cancellation penalties.
Delays in delivery schedules and/or a reduction of backlog during any particular period could have a material adverse effect on Applied’s business and results of operations.
Manufacturing, Raw Materials and Supplies Applied’s manufacturing activities consist primarily of assembly, test and integration of various proprietary and commercial parts, components and subassemblies (collectively, parts) that are used to manufacture systems.
Applied has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including the United States, Europe, Israel, Singapore, Taiwan, and other countries in Asia, and assembly of some systems is completed at customer sites.
Applied uses numerous vendors, including contract manufacturers, to supply parts and assembly services for the manufacture and support of its products.
Although Applied makes reasonable efforts to assure that parts are available from multiple qualified suppliers, this is not always possible.
Accordingly, some key parts may be obtained from only a single supplier or a limited group of suppliers.
Applied seeks to reduce costs and to lower the risks of manufacturing and service interruptions by: (1) selecting and qualifying alternate suppliers for key parts; (2) monitoring the financial condition of key suppliers; (3) maintaining appropriate inventories of key parts; (4) qualifying new parts on a timely basis; and (5) locating certain manufacturing operations in close proximity to suppliers and customers.
Research, Development and Engineering Applied’s long-term growth strategy requires continued development of new products, including products that enable expansion into new markets.
The Company’s significant investment in research, development and engineering (RD&E) has generally enabled it to deliver new products and technologies before the emergence of strong demand, thus allowing customers to incorporate these products into their manufacturing plans at an early stage in the technology selection cycle.
Applied works closely with its global customers to design systems and processes that meet their planned technical and production requirements.
Product development and engineering organizations are located primarily in the United States, as well as in Europe, Israel, Taiwan, and China.
In addition, Applied outsources certain RD&E activities, some of which are performed outside the United States, primarily in India and Singapore.
Process support and customer demonstration laboratories are located in the United States, China, Taiwan, Europe, and Israel.
Applied’s investments in RD&E for product development and engineering programs to create or improve products and technologies over the last three years were as follows: $1.4 billion (16 percent of net sales) in fiscal 2014, $1.3 billion (18 percent of net sales) in fiscal 2013, and $1.2 billion (14 percent of net sales) in fiscal 2012.
Applied has spent an average of 13 percent of net sales in RD&E over the last five years.
In addition to RD&E for specific product technologies, Applied maintains ongoing programs for automation control systems, materials research, and environmental control that are applicable to its products.
The following data includes the financial results of CBOT Holdings beginning July 13, 2007, the financial results of CMA beginning March 24, 2008, the financial results of NYMEX Holdings beginning August 23, 2008 and the financial results of Index Services beginning March 19, 2010
## Table 1 ##
The following table presents key statistical information on the volume of contracts traded, expressed in round turn trades, and notional value of contracts traded.
The 2008 volume data includes average daily volume for NYMEX products for the period August 23 through December 31, 2008.
The 2007 volume data includes average daily volume for CBOT products for the period July 13 through December 31, 2007.
All amounts exclude our TRAKRS, HuRLO, Swapstream, credit default swaps, interest rate swaps and auction-traded products
## Table 2 ##
The increase in the effective tax rate in 2010 when compared with 2009 was attributable to a $51.2 million charge to record the impact of our new combined state and local tax rate on our existing deferred tax liabilities.
The state and local tax rate increased due to revised state apportionment estimates resulting from annual state tax filings.
The increase in the effective tax rate was also due to the impairment of CMA’s goodwill and trade name in the second quarter of 2010 which was not deductible.
In 2009, the rate increased as a result of an additional valuation allowance of $64.4 million related to unrealized capital losses.
The increase was offset by a decrease resulting from a $38.9 million reduction in net deferred tax liabilities related to a New York City tax law change enacted in 2009.
In 2008, the rate reflected a $48.3 million charge to record the impact of our new combined state and local tax rate on our existing net deferred tax liabilities, partially offset by a first quarter 2008 Illinois tax law change that resulted in a $38.6 million reduction in net deferred tax liabilities.
LIQUIDITY AND CAPITAL RESOURCES Cash Requirements.
Until we began our commercial paper program in mid-2007, we historically met our funding requirements with cash generated by our ongoing operations.
While our cost structure is fixed in the short term, our sources of operating cash are dependent on trading volume levels.
We believe that our existing cash, cash equivalents and marketable securities and cash generated from operations will be sufficient to cover our working capital needs, capital expenditures, and other commitments.
However, it is possible that we may need to raise additional funds to finance our activities through issuances of commercial paper, future public debt offerings or by borrowing money from financial institutions.
Cash will also be required for operating leases and non-cancelable purchase obligations as well as other obligations reflected as long-term liabilities in our consolidated balance sheet at December 31, 2010.
These were as follows:
## Table 3 ##
(1) Gross unrecognized income tax liabilities, including interest and penalties, of $71.9 million for uncertain tax positions are not included in the table due to uncertainty about the date of their settlement.
Operating leases include rent payments for office space in Chicago and other smaller offices in the United States and in various foreign countries.
The operating lease for our headquarters in Chicago expires in November 2022.
Annual minimum rental payments under this lease range from $8.5 million to $13.6 million.
We also maintain an operating lease for additional office space in Chicago, which expires in November 2023.
Annual minimum rental payments under this lease range from $3.9 million to $6.2 million.
Purchase obligations include minimum payments due under agreements to purchase software licenses, hardware and maintenance as well as telecommunication services.
Other long-term liabilities include primarily funding obligations for pension and other post-retirement benefit plans.
Future capital expenditures for technology are anticipated as we continue to support our growth through investment in increased system capacity and performance and through technological initiatives on our electronic
Foreign Currency Exchange Rate Risk Foreign Currency Transaction Risk Our exposure to foreign currency transaction risk resulting from our operations is considered minimal and is not expected to be material to our financial condition or operating results.
Foreign Currency Translation Risk We have foreign currency translation risk related to the translation of our foreign subsidiaries’ assets and liabilities from their respective functional currencies to the U. S.  dollar at each reporting date.
Fluctuations in exchange rates may impact the amount of total assets and liabilities we report in our consolidated balance sheets.
The financial statements of certain of our foreign subsidiaries are denominated in the British pound and the Brazilian real and are translated into U. S.  dollars using a current exchange rate.
Gains and losses resulting from this translation are recognized as a foreign currency translation adjustment within accumulated other comprehensive income, which is a component of shareholders’ equity.
The translation adjustment, net of tax, for 2010, 2009 and 2008 was $(0.5) million, $2.6 million and $(95.7) million, respectively.
At December 31, 2010 and 2009, 10% and 13% of our consolidated cash and cash equivalents balances were held by foreign subsidiaries whose balance sheets were translated from a foreign functional currency to U. S.  dollars at each reporting date.
Other Foreign Currency Risk We are also exposed to foreign exchange rate risk related to the equity investments noted under Equity Price Risk.
Any foreign exchange rate risk related to these investments is reflected in the Equity Price Risk section below.
Equity Price Risk We hold certain investments in equity securities for strategic purposes.
Investments subject to equity price risks are generally recorded at their fair value.
Equity securities whose sale is restricted for greater than 12 months are carried at original cost, net of impairment charges, until the restriction is within 12 months of expiration at which time they are recorded at fair value.
Fair values for publicly-traded equity investments are based on quoted market prices.
Fair values are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may differ significantly from its current reported value.
Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions.
The table below summarizes our equity investments subject to equity price fluctuation at December 31, 2010.
Equity investments are included in other assets in our consolidated balance sheets.

<table><tr><td></td><td>2014</td><td>2013</td><td></td><td>(In millions, except percentages)</td></tr><tr><td>Silicon Systems Group</td><td>$1,400</td><td>48%</td><td>$1,295</td><td>55%</td></tr><tr><td>Applied Global Services</td><td>775</td><td>27%</td><td>591</td><td>25%</td></tr><tr><td>Display</td><td>593</td><td>20%</td><td>361</td><td>15%</td></tr><tr><td>Energy and Environmental Solutions</td><td>149</td><td>5%</td><td>125</td><td>5%</td></tr><tr><td>Total</td><td>$2,917</td><td>100%</td><td>$2,372</td><td>100%</td></tr></table>
<table><tr><td></td><td colspan="5"> Year Ended or At December 31</td></tr><tr><td> (in millions, except per share data)</td><td>2010</td><td>2009</td><td>2008</td><td> 2007</td><td> 2006</td></tr><tr><td> Income Statement Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenues</td><td>$3,003.7</td><td>$2,612.8</td><td>$2,561.0</td><td>$1,756.1</td><td>$1,089.9</td></tr><tr><td>Operating income</td><td>1,831.1</td><td>1,589.1</td><td>1,582.2</td><td>1,051.9</td><td>621.5</td></tr><tr><td>Non-operating income (expense)</td><td>-109.2</td><td>-151.6</td><td>-334.2</td><td>43.9</td><td>50.2</td></tr><tr><td>Income before income taxes</td><td>1,721.9</td><td>1,437.5</td><td>1,248.0</td><td>1,095.8</td><td>671.7</td></tr><tr><td>Net income attributable to CME Group</td><td>951.4</td><td>825.8</td><td>715.5</td><td>658.5</td><td>407.3</td></tr><tr><td>Earnings per common share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$14.35</td><td>$12.44</td><td>$12.18</td><td>$15.05</td><td>$11.74</td></tr><tr><td>Diluted</td><td>14.31</td><td>12.41</td><td>12.13</td><td>14.93</td><td>11.60</td></tr><tr><td>Cash dividends per share</td><td>4.60</td><td>4.60</td><td>9.60</td><td>3.44</td><td>2.52</td></tr><tr><td> Balance Sheet Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets</td><td>$35,046.1</td><td>$35,651.0</td><td>$48,158.7</td><td>$20,306.2</td><td>$4,306.5</td></tr><tr><td>Short-term debt</td><td>420.5</td><td>299.8</td><td>249.9</td><td>164.4</td><td>—</td></tr><tr><td>Long-term debt</td><td>2,104.8</td><td>2,014.7</td><td>2,966.1</td><td>—</td><td>—</td></tr><tr><td>Shareholders’ equity</td><td>20,060.1</td><td>19,301.0</td><td>18,688.6</td><td>12,305.6</td><td>1,519.1</td></tr></table>
<table><tr><td></td><td colspan="5"> Year Ended or At December 31</td></tr><tr><td> (in thousands, except notional value)</td><td> 2010</td><td> 2009</td><td> 2008</td><td> 2007</td><td> 2006</td></tr><tr><td> Average Daily Volume:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Product Lines:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate</td><td>5,449</td><td>4,260</td><td>6,085</td><td>7,093</td><td>3,078</td></tr><tr><td>Equity</td><td>2,907</td><td>2,916</td><td>3,663</td><td>2,744</td><td>1,734</td></tr><tr><td>Foreign exchange</td><td>919</td><td>624</td><td>623</td><td>569</td><td>453</td></tr><tr><td>Agricultural commodity</td><td>914</td><td>741</td><td>848</td><td>728</td><td>78</td></tr><tr><td>Energy</td><td>1,662</td><td>1,492</td><td>1,348</td><td>—</td><td>—</td></tr><tr><td>Metal</td><td>316</td><td>225</td><td>208</td><td>—</td><td>—</td></tr><tr><td> Total Average Daily Volume</td><td>12,167</td><td>10,258</td><td>12,775</td><td>11,134</td><td>5,343</td></tr><tr><td> Method of Trade:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Electronic</td><td>10,120</td><td>8,290</td><td>10,180</td><td>8,661</td><td>3,808</td></tr><tr><td>Open outcry</td><td>1,402</td><td>1,310</td><td>1,943</td><td>2,276</td><td>1,483</td></tr><tr><td>Privately negotiated</td><td>198</td><td>164</td><td>208</td><td>197</td><td>52</td></tr><tr><td>CME ClearPort</td><td>447</td><td>494</td><td>444</td><td>—</td><td>—</td></tr><tr><td> Total Average Daily Volume</td><td>12,167</td><td>10,258</td><td>12,775</td><td>11,134</td><td>5,343</td></tr><tr><td> Other Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total Notional Value (in trillions)</td><td>$994</td><td>$813</td><td>$1,227</td><td>$1,134</td><td>$824</td></tr><tr><td>Total Trading Volume (round turn trades)</td><td>3,078,149</td><td>2,584,891</td><td>2,978,459</td><td>2,249,632</td><td>1,341,111</td></tr><tr><td>Open Interest at Year End (contracts)</td><td>84,873</td><td>78,102</td><td>63,049</td><td>53,981</td><td>35,107</td></tr></table>
<table><tr><td> (in millions)</td><td> Operating Leases</td><td> Purchase Obligations</td><td> Other Long-Term Liabilities</td><td> Total<sup>-1</sup></td></tr><tr><td> Year</td><td></td><td></td><td></td><td></td></tr><tr><td>2011</td><td>$22.5</td><td>$10.4</td><td>$36.8</td><td>$69.7</td></tr><tr><td>2012-2013</td><td>43.7</td><td>6.5</td><td>—</td><td>50.2</td></tr><tr><td>2014-2015</td><td>41.1</td><td>0.4</td><td>—</td><td>41.5</td></tr><tr><td>Thereafter</td><td>142.5</td><td>—</td><td>—</td><td>142.5</td></tr><tr><td>Total</td><td>$249.8</td><td>$17.3</td><td>$36.8</td><td>$303.9</td></tr></table>

Question: Does Interest rate keeps increasing each year between 2009 and 2010 ?
Answer: yes