Table of Contents The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities using significant unobservable inputs:
## Table 0 ##
* Prior to the adoption of guidance included in ASU 2010-06, discussed in Note 1, “Accounting Policies,” purchases, sales, issuances and settlements/prepayments were presented net.
For the year ended December 31, 2011, the consolidated private equity and real estate funds recorded $52.2 million related to purchase activity and $187.6 million of sale activity, respectively, of level 3 assets.
For the year ended December 31, 2011, the consolidated CLOs recorded $530.4 million related to the settlement of level 3 liabilities.
** Included in gains and losses of consolidated investment products in the Condensed Consolidated Statement of Income for the year ended December 31, 2011 are $24.1 million in net unrealized gains attributable to investments still held at December 31, 2011 by consolidated investment products (year ended December 31, 2010: $46.5 million net unrealized gains attributable to investments still held at December 31, 2010).
Fair value of consolidated CLOs The company elected the fair value option for collateral assets held and notes issued by its consolidated CLOs to eliminate the measurement and recognition inconsistency that would otherwise arise from measuring assets and liabilities and recognizing the related gains and losses on different accounting bases.
The collateral assets held by consolidated CLOs are primarily invested in senior secured bank loans, bonds, and equity securities.
Bank loan investments, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans from a variety of industries, including but not limited to the aerospace and defense, broadcasting, technology, utilities, household products, healthcare, oil and gas, and finance industries.
Bank loan investments mature at various dates between 2012 and 2019, pay interest at Libor or Euribor plus a spread of up to 13.0%, and typically range in credit rating categories from BBB down to unrated.
At December 31, 2011, the unpaid principal balance exceeded the fair value of the senior secured bank loans and bonds by approximately $701 million (December 31, 2010: $261.0 million excess).
Less than 1% of the collateral assets are in default as of December 31, 2011 (December 31, 2010: less than 2% of the collateral assets were in default).
CLO investments are valued based on price quotations provided by a primary and secondary independent third-party pricing source.
These third- party sources aggregate indicative price quotations daily to provide the company with a price for the CLO investments.
The company has developed internal controls to review the reasonableness and completeness of these price quotations on a daily basis.
If necessary, price quotations are challenged through the third-party pricing source price challenge process.
As of December 31, 2011 there have been no price quotation challenges by the company.
In addition, the company's internal valuation committee conducts an annual due diligence review of all independent third-party pricing sources to review the provider's valuation methodology as well as ensure internal controls exist over the valuation of the CLO investments.
In the event that the third-party pricing source is unable to price an investment, other relevant factors, data and information are considered, including: i) information relating to the market for the investment, including price quotations for and trading in the investment, interest in similar investments, the market environment, investor attitudes towards the investment and interests in similar investments; ii) the characteristics of and fundamental analytical data relating to the investment, including, for senior secured corporate loans, the cost, size, current interest rate, period until next interest rate reset, maturity and base lending rate, the terms and conditions of the senior secured corporate loan and any related agreements, and the position of the senior secured corporate loan in the borrower's debt structure; iii) the nature, adequacy and value of the senior secured corporate loan's collateral, including the CLO's rights, remedies and interests with respect to the collateral; iv) for senior secured corporate loans,
Table of Contents reimbursement costs from the correction of historical foreign exchange allocations.
Other net decreases of $2.1 million in general and administrative expenses consist of a reduction in acquisition-related contingent consideration payable, gains on disposal of property, plant and equipment and fund reimbursement costs on trade corrections, offset by an increase in intangible amortization expense due to the acquisitions and that includes a write down of certain management contract intangibles.
The impact of foreign exchange rate movements accounted for $3.6 million (10.8%) of the increase in general and administrative costs during the year ended December 31, 2011 as compared to the year ended December 31, 2010.
Transaction and integration Transaction and integration expenses include acquisition-related charges incurred during the period to effect a business combination, including legal, regulatory, advisory, valuation, integration-related employee incentive awards and other professional or consulting fees, general and administrative costs, including travel costs related to the transaction and the costs of temporary staff involved in executing the transaction, and post-closing costs of integrating the acquired business into the company's existing operations.
Additionally, transaction and integration expenses include legal costs related to the defense of auction rate preferred securities complaints raised in the pre-acquisition period with respect to various closed-end funds included in the acquisition.
See Item 8, Financial Statements and Supplementary Data - Note 19, “Commitments and Contingencies” for additional information.
Transaction and integration charges were $29.4 million in the year ended December 31, 2011 (year ended December 31, 2010: $150.0 million) related to the integration of acquired businesses.
Transaction and integration expenses during the year ended December 31, 2011 include $19.9 million of professional services and other costs, principally legal, proxy solicitation, consultancy and insurance, $4.9 million of property and office, $2.8 million of employee compensation costs, $1.4 million of technology and communication costs and $0.4 million of marketing and client services.
Transaction and integration expenses for the year ended December 31, 2010 include $39.1 million of staff costs, $53.4 million of technology contractor and related costs, and $57.5 million of professional services, principally legal, proxy solicitation, consultancy and insurance.
Operating Income, Adjusted Operating Income, Operating Margin and Adjusted Operating Margin Operating income increased by $308.2 million (52.2%) to $898.1 million in the year ended December 31, 2011 (year ended December 31, 2010: $589.9 million).
Operating margin (operating income divided by operating revenues), increased from 16.9% in the year ended December 31, 2010 to 21.9% in the year ended December 31, 2011.
The increase in operating income and margin resulted from a greater relative increase in operating revenues (17.3%) than in operating expenses (10.2%) during the period.
Adjusted operating income, increased by $171.2 million (19.1%) to $1,068.9 million in the year ended December 31, 2011 from $897.7 million in the year ended December 31, 2010.
Adjusted operating margin increased to 36.9% in the year ended December 31, 2011 from 35.6% in the year ended December 31, 2010.
See “Schedule of Non-GAAPInformation” for a reconciliation of operating revenues to net revenues, a reconciliation of operating income to adjusted operating income and additional important disclosures regarding net revenues, adjusted operating income and adjusted operating margin.
Other Income and Expenses The main categories of other income and expenses, and the dollar and percentage changes between periods are as follows:
## Table 1 ##
Equity in earnings of unconsolidated affiliates Equity in earnings of unconsolidated affiliates decreased by $9.7 million (24.1%) to $30.5 million in the year ended December 31, 2011 (year ended December 31, 2010: $40.2 million).
Included in equity in earnings from affiliates is our share of the income from our joint ventures in China, which declined by $2.4 million to $21.5 million in the year ended December 31, 2011 from $23.9 million earned during the year ended December 31, 2010.
Declinesin equity in earnings from our joint ventures are due to declines
Table of Contents Other Income and Expenses The main categories of other income and expenses, and the dollar and percentage changes between periods are as follows:
## Table 2 ##
Equity in earnings of unconsolidated affiliates Equity in earnings of unconsolidated affiliates increased by $13.2 million (48.9%) to $40.2 million in the year ended December 31, 2010 (year ended December 31, 2009: $27.0 million).
Included in equity in earnings from affiliates is our share of the income from our joint ventures in China, which declined by $5.5 million to $23.9 million in the year ended December 31, 2010 from $29.4 million earned during the year ended December 31, 2009.
Declines in equity in earnings from our joint ventures are due to declines in average AUM in those entities during the year.
Earnings from our affiliate in Poland also decreased by $1.1 million to $1.1 million in year ended December 31, 2010 from $2.2 million earned in the year ended December 31, 2009.
These declines were more than offset by our share of the market-driven valuation changes in the underlying holdings of certain partnership investments which increased by $19.6 million to $15.1 million earned in the year ended December 31, 2010 from $4.5 million of losses during the year ended December 31, 2009.
Interest and dividend income and interest expense Interest and dividend income increased by $0.6 million (6.1%) to $10.4 million in the year ended December 31, 2010 (year ended December 31, 2009: $9.8 million).
The year ended December 31, 2010 includes dividend income of $2.7 million on investments held to hedge economically deferred compensation plans.
This dividend income is passed through to employee participants in the deferred compensation plans.
See “Schedule of Non-GAAP Information” for additional details.
Higher yields during the year ended December 31, 2010 offset lower average cash and cash equivalent balances.
Interest expense decreased by $5.9 million (9.1%) to $58.6 million in the year ended December 31, 2010 (year ended December 31, 2009: $64.5 million).
Higher average debt balances were more than offset by lower average cost of debt during the year ended December 31, 2010 following the restructuring of our debt versus the comparative period.
Interest income and interest expense of consolidated investment products In the year ended December 31, 2010, interest income and interest expense of consolidated investment products were $240.9 million and $118.6 million, respectively.
The balances reflect the adoption of guidance now encompassed in ASC Topic 810 on January 1, 2010.
In accordance with the standard, prior periods have not been restated to reflect the consolidation.
Gains and losses of consolidated investment products, net income impact of consolidated investment products, and noncontrolling interests in consolidated entities Included in other income and expenses are gains and losses of consolidated investment products, net, which are driven by realized and unrealized gains and losses of underlying investments held by consolidated investment products.
In the year ended December 31, 2010 other gains and losses of consolidated investment products were a net gain of $114.0 million, as compared to a net loss of $106.9 million in the year ended December 31, 2009.
The net gain in the period is primarily due to changes in market values of investments held by consolidated private equity funds.
As illustrated in the Condensed Consolidating Statements of Income for the year ended December 31, 2010 and 2009 at the beginning of this Results of Operations section, the consolidation of investment products during the year ended December 31, 2010 resulted in an increase to net income of $180.7 million before attribution to noncontrolling interests.
Invesco invests in only
Balance Sheet Discussion Condensed Consolidating Balance Sheets are presented below and reflect the consolidation of investment products, including the adoption of guidance now encompassed in ASC Topic 810 on January 1, 2010.
The majority of the company's consolidated investment products balances were CLO related as of December 31, 2011 and 2010.
The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs.
The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company's minimal direct investments in, and management fees generated from, CLOs.
If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets.
Additionally, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs.
The company therefore does not consider this debt to be a company liability.
Condensed Consolidating Balance Sheets
## Table 3 ##
Consolidated
## Table 4 ##
(1) The Before Consolidation column includes Invesco's equity interest in the investment products, accounted for as equity method and available-for-sale investments and does not include any other adjustments related to non-GAAP financial measure presentation.
(2) Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products and the elimination of the company’s equity at risk recorded as investments by the company (before consolidation) against either the equity (private equity and real estate partnership funds) or debt (CLOs) of the consolidated investment products.
Shareowner Return Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates such information by reference into such filing.
The following graph shows a five year comparison of cumulative total shareowners’ returns for our class B common stock, the Standard & Poor’s 500 Index, and the Dow Jones Transportation Average.
The comparison of the total cumulative return on investment, which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods, assumes that $100 was invested on December 31, 2008 in the Standard & Poor’s 500 Index, the Dow Jones Transportation Average, and our class B common stock.

<table><tr><td></td><td colspan="2">Year ended December 31, 2011</td><td colspan="2">Year ended December 31, 2010</td></tr><tr><td>$ in millions</td><td>Level 3 Assets</td><td>Level 3 Liabilities</td><td>Level 3 Assets</td><td>Level 3 Liabilities</td></tr><tr><td>Beginning balance</td><td>972.8</td><td>-5,865.4</td><td>667.1</td><td>-5,234.9</td></tr><tr><td>Purchases, sales, issuances and settlements/prepayments, net*</td><td>-135.4</td><td>530.4</td><td>-81.2</td><td>209.1</td></tr><tr><td>Acquisition of businesses</td><td>—</td><td>—</td><td>289.9</td><td>-630.2</td></tr><tr><td>Gains/(losses) included in the Consolidated Statement of Income**</td><td>81.1</td><td>-74.1</td><td>97.0</td><td>-414.3</td></tr><tr><td>Foreign exchange</td><td>10.6</td><td>-103.8</td><td>—</td><td>204.9</td></tr><tr><td>Ending balance</td><td>929.1</td><td>-5,512.9</td><td>972.8</td><td>-5,865.4</td></tr></table>
<table><tr><td></td><td colspan="2">Year ended December 31,</td><td></td><td></td></tr><tr><td>$ in millions</td><td>2011</td><td>2010</td><td>$ Change</td><td>% Change</td></tr><tr><td>Equity in earnings of unconsolidated affiliates</td><td>30.5</td><td>40.2</td><td>-9.7</td><td>-24.1%</td></tr><tr><td>Interest and dividend income</td><td>11.0</td><td>10.4</td><td>0.6</td><td>5.8%</td></tr><tr><td>Interest income of consolidated investment products</td><td>307.2</td><td>240.9</td><td>66.3</td><td>27.5%</td></tr><tr><td>Gains/(losses) of consolidated investment products, net</td><td>-138.9</td><td>114.0</td><td>-252.9</td><td>N/A</td></tr><tr><td>Interest expense</td><td>-61.8</td><td>-58.6</td><td>-3.2</td><td>5.5%</td></tr><tr><td>Interest expense of consolidated investment products</td><td>-187.0</td><td>-118.6</td><td>-68.4</td><td>57.7%</td></tr><tr><td>Other gains and losses, net</td><td>49.0</td><td>15.6</td><td>33.4</td><td>214.1%</td></tr><tr><td>Total other income and expenses</td><td>10.0</td><td>243.9</td><td>-233.9</td><td>-95.9%</td></tr></table>
<table><tr><td></td><td colspan="2">Year ended December 31,</td><td></td><td></td></tr><tr><td>$ in millions</td><td>2010</td><td>2009</td><td>$ Change</td><td>% Change</td></tr><tr><td>Equity in earnings of unconsolidated affiliates</td><td>40.2</td><td>27.0</td><td>13.2</td><td>48.9%</td></tr><tr><td>Interest and dividend income</td><td>10.4</td><td>9.8</td><td>0.6</td><td>6.1%</td></tr><tr><td>Interest income of consolidated investment products</td><td>240.9</td><td>—</td><td>240.9</td><td>N/A</td></tr><tr><td>Gains/(losses) of consolidated investment products, net</td><td>114.0</td><td>-106.9</td><td>220.9</td><td>N/A</td></tr><tr><td>Interest expense</td><td>-58.6</td><td>-64.5</td><td>5.9</td><td>9.1%</td></tr><tr><td>Interest expense of consolidated investment products</td><td>-118.6</td><td>—</td><td>-118.6</td><td>N/A</td></tr><tr><td>Other gains and losses, net</td><td>15.6</td><td>7.8</td><td>7.8</td><td>100%</td></tr><tr><td>Total other income and expenses</td><td>243.9</td><td>-126.8</td><td>370.7</td><td>N/A</td></tr></table>
<table><tr><td>$ in millions</td><td>Before Consolidation<sup>-1</sup></td><td>Consolidated Investment Products</td><td>Adjustments<sup>-2</sup></td><td>Total</td></tr><tr><td>As of December 31, 2011</td><td></td><td></td><td></td><td></td></tr><tr><td>Current assets</td><td>3,352.7</td><td>511.3</td><td>-29.9</td><td>3,834.1</td></tr><tr><td>Non-current assets</td><td>8,976.5</td><td>6,628.9</td><td>-92.5</td><td>15,512.9</td></tr><tr><td>Total assets</td><td>12,329.2</td><td>7,140.2</td><td>-122.4</td><td>19,347.0</td></tr><tr><td>Current liabilities</td><td>2,818.9</td><td>185.4</td><td>-29.9</td><td>2,974.4</td></tr><tr><td>Long-term debt of consolidated investment products</td><td>—</td><td>5,563.3</td><td>-50.4</td><td>5,512.9</td></tr><tr><td>Other non-current liabilities</td><td>1,722.1</td><td>—</td><td>—</td><td>1,722.1</td></tr><tr><td>Total liabilities</td><td>4,541.0</td><td>5,748.7</td><td>-80.3</td><td>10,209.4</td></tr><tr><td>Retained earnings appropriated for investors in consolidated investment products</td><td>—</td><td>334.3</td><td>—</td><td>334.3</td></tr><tr><td>Other equity attributable to common shareholders</td><td>7,783.7</td><td>43.2</td><td>-42.1</td><td>7,784.8</td></tr><tr><td>Equity attributable to noncontrolling interests in consolidated entities</td><td>4.5</td><td>1,014.0</td><td>—</td><td>1,018.5</td></tr><tr><td>Total liabilities and equity</td><td>12,329.2</td><td>7,140.2</td><td>-122.4</td><td>19,347.0</td></tr></table>
<table><tr><td>$ in millions</td><td>Before Consolidation<sup>-1</sup></td><td>Consolidated Investment Products</td><td>Adjustments<sup>-2</sup></td><td>Total</td></tr><tr><td>As of December 31, 2010</td><td></td><td></td><td></td><td></td></tr><tr><td>Current assets</td><td>3,480.0</td><td>816.8</td><td>-22.3</td><td>4,274.5</td></tr><tr><td>Non-current assets</td><td>9,025.1</td><td>7,205.5</td><td>-61.0</td><td>16,169.6</td></tr><tr><td>Total assets</td><td>12,505.1</td><td>8,022.3</td><td>-83.3</td><td>20,444.1</td></tr><tr><td>Current liabilities</td><td>2,777.9</td><td>508.9</td><td>-22.3</td><td>3,264.5</td></tr><tr><td>Long-term debt of consolidated investment products</td><td>—</td><td>5,888.2</td><td>-22.8</td><td>5,865.4</td></tr><tr><td>Other non-current liabilities</td><td>1,953.3</td><td>—</td><td>—</td><td>1,953.3</td></tr><tr><td>Total liabilities</td><td>4,731.2</td><td>6,397.1</td><td>-45.1</td><td>11,083.2</td></tr><tr><td>Retained earnings appropriated for investors in consolidated investment products</td><td>—</td><td>495.5</td><td>—</td><td>495.5</td></tr><tr><td>Other equity attributable to common shareholders</td><td>7,769.1</td><td>38.2</td><td>-38.2</td><td>7,769.1</td></tr><tr><td>Equity attributable to noncontrolling interests in consolidated entities</td><td>4.8</td><td>1,091.5</td><td>—</td><td>1,096.3</td></tr><tr><td>Total liabilities and equity</td><td>12,505.1</td><td>8,022.3</td><td>-83.3</td><td>20,444.1</td></tr></table>

Question: What is the ratio of all Before Consolidation that are smaller than 2000 to the sum of Before Consolidation, in 2010?
Answer: 0.06584