Net sales of the Retail segment grew to $1.185 billion during 2004 from $621 million and $283 million, in 2003 and 2002, respectively.
The increases in net sales during both 2004 and 2003 reflect the impact of new store openings for each fiscal year, including the opening of 21 new stores in 2004 and 25 new stores in 2003.
An increase in average revenue per store also contributed to the segment’s strong sales in fiscal 2004.
With an average of 76 stores open during 2004, the Retail segment achieved annualized revenue per store of approximately $15.6 million, as compared to $11.5 million in 2003 with a 54 store average and $10.2 million in 2002 with a 28 store average.
As measured by the Company’s operating segment reporting, the Retail segment reported profit of $39 million during fiscal 2004 as compared to losses of $5 million and $22 million during 2003 and 2002, respectively.
This improvement is primarily attributable to the segment’s year-over-year increase in average quarterly revenue per store, the impact of opening new stores, and the segment’s year-over-year increase in net sales, which resulted in higher leverage on occupancy, depreciation and other fixed costs.
Expansion of the Retail segment has required and will continue to require a substantial investment in fixed assets and related infrastructure, operating lease commitments, personnel, and other operating expenses.
Capital expenditures associated with the Retail segment were $104 million in fiscal 2004, bringing the total capital expenditures since inception of the Retail segment to approximately $394 million.
As of September 25, 2004, the Retail segment had approximately 2,100 employees and had outstanding operating lease commitments associated with retail store space and related facilities of approximately $436 million.
The Company would incur substantial costs should it choose to terminate its Retail segment or close individual stores.
Such costs could adversely affect the Company’s results of operations and financial condition.
Gross Margin Gross margin for the three fiscal years ended September 25, 2004 are as follows (in millions, except gross margin percentages):
## Table 0 ##
Gross margin declined in fiscal 2004 to 27.3% of net sales from 27.5% of net sales in 2003.
The Company’s gross margin during fiscal 2004 declined due to an increase in mix towards lower margin iPod and iBook sales, pricing actions on certain Power Macintosh G5 models that were transitioned during the beginning of 2004, higher warranty costs on certain portable Macintosh products, and higher freight and duty costs during fiscal 2004.
These unfavorable factors were partially offset by an increase in direct sales and a 39% year-over-year increase in higher margin software sales.
The Company anticipates that its gross margin and the gross margin of the overall personal computer and consumer electronics industries will remain under pressure throughout fiscal 2005 in light of price competition, especially for the iPod product line.
The Company also expects to continue to incur air freight charges, which negatively impact gross margins on the iMac and other products during the first quarter of 2005 and possibly beyond.
The foregoing statements regarding the Company’s expected gross margin during 2005, general demand for personal computers, anticipated air freight charges, and future economic conditions are forwardlooking.
There can be no assurance that current gross margins will be maintained or targeted gross margin levels will be achieved.
In general, gross margins and margins on individual products, including iPods, will remain under significant downward pressure due to a variety of factors, including continued industry wide
CBRE GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) foreign currency denominated EBITDA.
Hedge accounting was not elected for any of these contracts.
As such, changes in the fair values of these contracts are recorded directly in earnings.
Included in the consolidated statement of operations were net gains of $5.3 million for the year ended December 31, 2014 resulting from net gains on foreign currency exchange forward contracts.
As of December 31, 2014, we had 52 foreign currency exchange forward contracts outstanding covering a notional amount of $302.0 million.
As of December 31, 2014, the fair value of forward contracts with two counterparties aggregated to a $0.5 million asset position, which was included in other current assets in the accompanying consolidated balance sheets.
As of December 31, 2014, the fair value of forward contracts with four counterparties aggregated to a $1.3 million liability position, which was included in other current liabilities in the accompanying consolidated balance sheets.
We also routinely monitor our exposure to currency exchange rate changes in connection with certain transactions and sometimes enter into foreign currency exchange option and forward contracts to limit our exposure to such transactions, as appropriate.
In the normal course of business, we also sometimes utilize derivative financial instruments in the form of foreign currency exchange contracts to attempt to mitigate foreign currency exchange exposure resulting from intercompany loans.
Included in the consolidated statements of operations were net gains of $4.3 million for the year ended December 31, 2014, and net losses of $1.8 million and $4.4 million for the years ended December 31, 2013 and 2012, respectively, resulting from net gains/losses on these foreign currency exchange option and forward contracts.
As of December 31, 2014, the fair value of forward contracts with one counterparty aggregated to a $0.8 million asset position, which was included in other current assets in the accompanying consolidated balance sheets.
As of December 31, 2014, the fair value of forward contracts with one counterparty aggregated to a $0.1 million liability position, which was included in other current liabilities in the accompanying consolidated balance sheets.
As of December 31, 2013, we did not have any such foreign currency exchange contracts outstanding.
We also enter into loan commitments that relate to the origination of commercial mortgage loans that will be held for resale.
FASB ASC Topic 815 requires that these commitments be recorded at their fair values as derivatives.
Included in the consolidated statements of operations were net gains of $2.4 million for the year ended December 31, 2014, resulting from gains on these loan commitments.
As of December 31, 2014, the fair value of such contracts with three counterparties aggregated to a $2.4 million asset position, which was included in other current assets in the accompanying consolidated balance sheets.
The net impact on our financial position and earnings resulting from loan commitments for years prior to 2014 was not significant.6.
Property and Equipment Property and equipment consists of the following (dollars in thousands):
## Table 1 ##
Results of Operations The following table sets forth items derived from our consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012:
## Table 2 ##
(1) Includes EBITDA related to discontinued operations of $7.9 million and $5.6 million for the years ended December 31, 2013 and 2012, respectively.
EBITDA represents earnings before net interest expense, write-off of financing costs, income taxes, depreciation and amortization, while amounts shown for EBITDA, as adjusted, remove the impact of certain cash and non-cash charges related to acquisitions and cost containment expenses, as well as certain carried interest incentive compensation (reversal) expense.
Our management believes that both of these measures are useful in evaluating our operating performance compared to that of other companies in our industry because the calculations of EBITDA and EBITDA, as adjusted, generally eliminate the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions.
Such items may vary for different companies for reasons

<table><tr><td></td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td>Net sales</td><td>$8,279</td><td>$6,207</td><td>$5,742</td></tr><tr><td>Cost of sales</td><td>6,020</td><td>4,499</td><td>4,139</td></tr><tr><td>Gross margin</td><td>$2,259</td><td>$1,708</td><td>$1,603</td></tr><tr><td>Gross margin percentage</td><td>27.3%</td><td>27.5%</td><td>27.9%</td></tr></table>
<table><tr><td></td><td></td><td colspan="2">December 31,</td></tr><tr><td></td><td> Useful Lives</td><td>2014</td><td>2013</td></tr><tr><td>Computer hardware and software</td><td>3-10 years</td><td>$511,669</td><td>$471,237</td></tr><tr><td>Leasehold improvements</td><td>1-15 years</td><td>283,218</td><td>248,359</td></tr><tr><td>Furniture and equipment</td><td>1-10 years</td><td>211,511</td><td>211,893</td></tr><tr><td>Equipment under capital leases</td><td>3-5 years</td><td>10,644</td><td>10,697</td></tr><tr><td>Total cost</td><td></td><td>1,017,042</td><td>942,186</td></tr><tr><td>Accumulated depreciation and amortization</td><td></td><td>-519,116</td><td>-483,590</td></tr><tr><td>Property and equipment, net</td><td></td><td>$497,926</td><td>$458,596</td></tr></table>
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td></td><td colspan="6">(Dollars in thousands)</td></tr><tr><td>Revenue</td><td>$9,049,918</td><td>100.0%</td><td>$7,184,794</td><td>100.0%</td><td>$6,514,099</td><td>100.0%</td></tr><tr><td>Costs and expenses:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of services</td><td>5,611,262</td><td>62.0</td><td>4,189,389</td><td>58.3</td><td>3,742,514</td><td>57.5</td></tr><tr><td>Operating, administrative and other</td><td>2,438,960</td><td>27.0</td><td>2,104,310</td><td>29.3</td><td>2,002,914</td><td>30.7</td></tr><tr><td>Depreciation and amortization</td><td>265,101</td><td>2.9</td><td>190,390</td><td>2.6</td><td>169,645</td><td>2.6</td></tr><tr><td>Non-amortizable intangible asset impairment</td><td>—</td><td>—</td><td>98,129</td><td>1.4</td><td>19,826</td><td>0.3</td></tr><tr><td>Total costs and expenses</td><td>8,315,323</td><td>91.9</td><td>6,582,218</td><td>91.6</td><td>5,934,899</td><td>91.1</td></tr><tr><td>Gain on disposition of real estate</td><td>57,659</td><td>0.7</td><td>13,552</td><td>0.2</td><td>5,881</td><td>0.1</td></tr><tr><td>Operating income</td><td>792,254</td><td>8.8</td><td>616,128</td><td>8.6</td><td>585,081</td><td>9.0</td></tr><tr><td>Equity income from unconsolidated subsidiaries</td><td>101,714</td><td>1.1</td><td>64,422</td><td>0.9</td><td>60,729</td><td>0.9</td></tr><tr><td>Other income</td><td>12,183</td><td>0.1</td><td>13,523</td><td>0.2</td><td>11,093</td><td>0.2</td></tr><tr><td>Interest income</td><td>6,233</td><td>0.1</td><td>6,289</td><td>0.1</td><td>7,643</td><td>0.1</td></tr><tr><td>Interest expense</td><td>112,035</td><td>1.2</td><td>135,082</td><td>1.9</td><td>175,068</td><td>2.7</td></tr><tr><td>Write-off of financing costs</td><td>23,087</td><td>0.3</td><td>56,295</td><td>0.8</td><td>—</td><td>—</td></tr><tr><td>Income from continuing operations before provision for income taxes</td><td>777,262</td><td>8.6</td><td>508,985</td><td>7.1</td><td>489,478</td><td>7.5</td></tr><tr><td>Provision for income taxes</td><td>263,759</td><td>2.9</td><td>187,187</td><td>2.6</td><td>185,322</td><td>2.8</td></tr><tr><td>Income from continuing operations</td><td>513,503</td><td>5.7</td><td>321,798</td><td>4.5</td><td>304,156</td><td>4.7</td></tr><tr><td>Income from discontinued operations, net of income taxes</td><td>—</td><td>—</td><td>26,997</td><td>0.4</td><td>631</td><td>—</td></tr><tr><td>Net income</td><td>513,503</td><td>5.7</td><td>348,795</td><td>4.9</td><td>304,787</td><td>4.7</td></tr><tr><td>Less: Net income (loss) attributable to non-controlling interests</td><td>29,000</td><td>0.3</td><td>32,257</td><td>0.5</td><td>-10,768</td><td>-0.2</td></tr><tr><td>Net income attributable to CBRE Group, Inc.</td><td>$484,503</td><td>5.4%</td><td>$316,538</td><td>4.4%</td><td>$315,555</td><td>4.9%</td></tr><tr><td>EBITDA -1</td><td>$1,142,252</td><td>12.6%</td><td>$982,883</td><td>13.7%</td><td>$861,621</td><td>13.2%</td></tr><tr><td>EBITDA, as adjusted -1</td><td>$1,166,125</td><td>12.9%</td><td>$1,022,255</td><td>14.2%</td><td>$918,439</td><td>14.1%</td></tr></table>

Question: In the year with largest amount of Total costs and expenses, what's the increasing rate of Cost of services?
Answer: 0.3394