Scheduled maturities of our marketable securities are as follows:
## Table 0 ##
As of May 27, 2018, we did not any have cash and cash equivalents pledged as collateral for derivative contracts.
As of May 27, 2018, $0.9 million of certain accounts receivable were pledged as collateral against a foreign uncommitted line of credit.
The fair value and carrying amounts of long-term debt, including the current portion, were $14,169.7 million and $14,268.8 million, respectively, as of May 27, 2018.
The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments.
Long-term debt is a Level 2 liability in the fair value hierarchy.
RISK MANAGEMENT ACTIVITIES As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices.
To manage these risks, we may enter into various derivative transactions (e. g. , futures, options, and swaps) pursuant to our established policies.
COMMODITY PRICE RISK Many commodities we use in the production and distribution of our products are exposed to market price risks.
We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel.
Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain.
We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps.
We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close to our planned cost as possible.
We use derivatives to manage our exposure to changes in commodity prices.
We do not perform the assessments required to achieve hedge accounting for commodity derivative positions.
Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings.
Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain.
Accordingly, for purposes of measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment operating results until such time that the exposure we are managing affects earnings.
At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items.
Table of Contents and services revenues as a percentage of equipment and services revenues may fluctuate in future periods depending on the mix of products sold and services provided, competitive pricing, new product introduction costs and other factors.
Research and Development Expenses.
For fiscal 2010, research and development expenses were $2.55 billion or 23% of revenues, compared to $2.44 billion or 23% of revenues for fiscal 2009.
The dollar increase is primarily attributable to a $156 million increase in costs related to the development of integrated circuit products, next generation CDMA and OFDMA technologies and other initiatives to support the acceleration of advanced wireless products and services, including lower-cost devices, the integration of wireless with consumer electronics and computing, the convergence of multiband, multimode, multinetwork products and technologies, third-party operating systems and services platforms.
The increase in research and development expenses was partially offset by a $65 million decrease in costs primarily related to the development of our asset-tracking products and services and Brew products.
Research and development expenses for fiscal 2010 included share-based compensation of $300 million, compared to $280 million in fiscal 2009.
Selling, General and Administrative Expenses.
For fiscal 2010, selling, general and administrative expenses were $1.64 billion or 15% of revenues, compared to $1.56 billion or 15% of revenues for fiscal 2009.
The dollar increase was primarily attributable to a $61 million increase in selling and marketing expenses, a $56 million increase in patent-related costs and a $23 million increase in employee-related expenses, partially offset by a $62 million gain on the sale of our Australia spectrum license.
Selling, general and administrative expenses for fiscal 2010 included share-based compensation of $273 million, compared to $263 million in fiscal 2009.
Other Operating Expenses.
Operating expenses for fiscal 2009 included a $783 million charge in connection with the Settlement and Patent License and Non-Assert Agreement with Broadcom and a $230 million fine levied by the KFTC.
Net Investment Income.
Net investment income was $751 million for fiscal 2010, compared to a net investment loss of $150 million for fiscal 2009.
The net increase was comprised as follows (in millions):
## Table 1 ##
During fiscal 2010, we recorded lower impairment losses and higher realized gains on marketable securities, compared to fiscal 2009.
Depressed security values caused by a major disruption in the United States and foreign financial markets impacted our results in fiscal 2009 and continued to cause impairment losses in fiscal 2010, but to a much lesser extent.
The increase in interest expense is primarily the result of the short-term bank loan related to the BWA spectrum recently won in the India auction.
Income Tax Expense.
Income tax expense was $787 million for fiscal 2010, compared to $484 million for fiscal 2009.
The annual effective tax rate was 20% for fiscal 2010, compared to 23% for fiscal 2009.
The annual effective tax rate for fiscal 2010 was lower than fiscal 2009 primarily as a result of the net decrease in valuation allowance on the deferred tax asset related to capital losses and an increase in tax benefits related to foreign earnings taxed at less than the United States federal rate, partially offset by a decrease in tax benefit related to tax audits settled during the year and a decrease in research and development tax credits.
The annual effective tax rate for fiscal 2010 was 20% and only reflected the United States federal research and development credits generated through December 31, 2009, the date on which they expired.
The annual effective tax
Contractual Obligations Payments Due By Fiscal Period
## Table 2 ##
(1) Total purchase obligations include $1.2 billion in commitments to purchase integrated circuit product inventories.
(2) These commitments do not have fixed funding dates and are subject to certain conditions.
Commitments represent the maximum amounts to be financed or funded under these arrangements; actual financing or funding may be in lesser amounts or not at all.
(3) Amounts represent future minimum lease payments including interest payments.
Capital lease obligations are included in other liabilities in the consolidated balance sheet at September 26, 2010.
(4) Certain long-term liabilities reflected on our balance sheet, such as unearned revenues, are not presented in this table because they do not require cash settlement in the future.
Other long-term liabilities as presented in this table include the related current portions.
(5) Our consolidated balance sheet at September 26, 2010 included a $6 million noncurrent liability for uncertain tax positions, all of which may result in cash payment.
The future payments related to uncertain tax positions have not been presented in the table above due to the uncertainty of the amounts and timing of cash settlement with the taxing authorities.
Additional information regarding our financial commitments at September 26, 2010 is provided in the notes to our consolidated financial statements.
See “Notes to Consolidated Financial Statements, Note 9 — Commitments and Contingencies.
” Item 7A.
Quantitative and Qualitative Disclosures about Market Risk Interest Rate Risk.
We invest our cash in a number of diversified investment- and non-investment-grade fixed and floating rate securities, consisting of cash equivalents, marketable debt securities and debt mutual funds.
Changes in the general level of United States interest rates can affect the principal values and yields of fixed interest-bearing securities.
If interest rates in the general economy were to rise rapidly in a short period of time, our fixed interest-bearing securities could lose value.
When the general economy weakens significantly, the credit profile, financial strength and growth prospects of certain issuers of interest-bearing securities held in our investment portfolios may deteriorate, and our interest-bearing securities may lose value either temporarily or other than temporarily.
We may implement investment strategies of different types with varying duration and risk/return trade-offs that do not perform well.
The following table provides information about our interest-bearing cash and cash equivalents, marketable securities and loan payable to banks that are sensitive to changes in interest rates.
The table presents principal cash flows, weighted-average yield at cost and contractual maturity dates.
Additionally, we have assumed that the interest-bearing securities are similar enough within the specified categories to aggregate the securities for presentation purposes.
Table of Contents QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company believes, more likely than not, that it will have sufficient taxable income after stock option related deductions to utilize the majority of its deferred tax assets.
At September 26, 2010, the Company has provided a valuation allowance on certain foreign deferred tax assets, state net operating losses and net capital losses of $24 million, $7 million and $8 million, respectively.
The valuation allowances reflect the uncertainty surrounding the Company’s ability to generate sufficient future taxable income in certain foreign and state tax jurisdictions to utilize its net operating losses and the Company’s ability to generate sufficient capital gains to utilize all capital losses.
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2010, 2009 and 2008 follows (in millions):

<table><tr><td></td><td>Available for Sale</td></tr><tr><td>In Millions</td><td>Cost</td><td>Fair Value</td></tr><tr><td>Under 1 year (current)</td><td>$25.4</td><td>$25.4</td></tr><tr><td>Equity securities</td><td>0.3</td><td>3.5</td></tr><tr><td>Total</td><td>$25.7</td><td>$28.9</td></tr></table>
<table><tr><td></td><td colspan="2">Year Ended</td><td></td></tr><tr><td></td><td>September 26, 2010</td><td>September 27, 2009</td><td>Change</td></tr><tr><td>Interest and dividend income:</td><td></td><td></td><td></td></tr><tr><td>Corporate and other segments</td><td>$522</td><td>$513</td><td>$9</td></tr><tr><td>QSI</td><td>8</td><td>3</td><td>$5</td></tr><tr><td>Interest expense</td><td>-58</td><td>-24</td><td>-34</td></tr><tr><td>Net realized gains on investments:</td><td></td><td></td><td></td></tr><tr><td>Corporate and other segments</td><td>379</td><td>107</td><td>272</td></tr><tr><td>QSI</td><td>26</td><td>30</td><td>-4</td></tr><tr><td>Net impairment losses on investments:</td><td></td><td></td><td></td></tr><tr><td>Corporate and other segments</td><td>-110</td><td>-734</td><td>624</td></tr><tr><td>QSI</td><td>-15</td><td>-29</td><td>14</td></tr><tr><td>Gains on derivative instruments</td><td>3</td><td>1</td><td>2</td></tr><tr><td>Equity in losses of investees</td><td>-4</td><td>-17</td><td>13</td></tr><tr><td></td><td>$751</td><td>$-150</td><td>$901</td></tr></table>
<table><tr><td></td><td> Total</td><td> 2011</td><td> 2012-2013</td><td> 2014-2015</td><td> Beyond  2015</td><td> No  Expiration  Date</td></tr><tr><td>Purchase obligations<sup>-1</sup></td><td>$1,729</td><td>$1,401</td><td>$222</td><td>$67</td><td>$39</td><td>$—</td></tr><tr><td>Operating lease obligations</td><td>471</td><td>95</td><td>100</td><td>48</td><td>228</td><td>—</td></tr><tr><td>Equity funding commitments<sup>-2</sup></td><td>30</td><td>—</td><td>—</td><td>—</td><td>—</td><td>30</td></tr><tr><td>Total commitments</td><td>2,230</td><td>1,496</td><td>322</td><td>115</td><td>267</td><td>30</td></tr><tr><td>Loan payable to banks</td><td>1,086</td><td>1,086</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Capital lease obligations<sup>-3</sup></td><td>521</td><td>17</td><td>32</td><td>34</td><td>438</td><td>—</td></tr><tr><td>Otherlong-term liabilities<sup>-4</sup><sup>(5)</sup></td><td>305</td><td>—</td><td>293</td><td>—</td><td>12</td><td>—</td></tr><tr><td>Total recorded liabilities</td><td>1,912</td><td>1,103</td><td>325</td><td>34</td><td>450</td><td>—</td></tr><tr><td>Total</td><td>$4,142</td><td>$2,599</td><td>$647</td><td>$149</td><td>$717</td><td>$30</td></tr></table>

Question: what is the difference between carrying amounts of long-term debt and fair value?
Answer: 99.1