Corporate Snap-on’s general corporate expenses totaled $53.8 million in 2006, up from $46.4 million in 2005, primarily due to $15.2 million of increased stock-based and performance-based incentive compensation, including $6.3 million from the January 1, 2006, adoption of SFAS No.123(R).
Increased expenses in 2006 also included $4.2 million of higher insurance and other costs.
These expense increases were partially offset by $9.5 million of benefits from RCI initiatives.
See Note 13 to the Consolidated Financial Statements for information on the company’s adoption of SFAS No.123(R).
Financial Condition Snap-on’s growth has historically been funded by a combination of cash provided by operating activities and debt financing.
Snap-on believes that its cash from operations, coupled with its sources of borrowings, are sufficient to fund its anticipated requirements for working capital, capital expenditures, restructuring activities, acquisitions, common stock repurchases and dividend payments.
Due to Snap-on’s credit rating over the years, external funds have been available at a reasonable cost.
As of the close of business on February 15, 2008, Snap-on’s long-term debt and commercial paper was rated A3 and P-2 by Moody’s Investors Service and A- and A-2 by Standard & Poor’s.
Snap-on believes that the strength of its balance sheet, combined with its cash flows from operating activities, affords the company the financial flexibility to respond to both internal growth opportunities and those available through acquisitions.
The following discussion focuses on information included in the accompanying Consolidated Balance Sheets.
Snap-on has been focused on improving asset utilization by making more effective use of its investment in certain working capital items.
The company assesses management’s operating performance and effectiveness relative to those components of working capital, particularly accounts receivable and inventories, that are more directly impacted by operational decisions.
As of December 29, 2007, working capital (current assets less current liabilities) of $548.2 million was up $117.0 million from $431.2 million as of December 30, 2006.
The increase in year-over-year working capital primarily reflects higher levels of “Cash and cash equivalents” of $29.6 million, lower “Notes payable and current maturities of long-term debt” of $27.7 million, and $27.7 million of increased “Accounts receivable – net of allowances.
” The following represents the company’s working capital position as of December 29, 2007, and December 30, 2006.
## Table 0 ##
Accounts receivable at the end of 2007 was $586.9 million, up $27.7 million from year-end 2006 levels.
The year-overyear increase in accounts receivable primarily reflects the impact of higher sales in the fourth quarter of 2007 and $25.1 million of currency translation.
This increase in accounts receivable was partially offset by lower levels of receivables as a result of an improvement in days sales outstanding from 76 days at year-end 2006 to 73 days at year-end 2007.
Valuation Allowances With the exception of the valuation allowance discussed below, we believe it is more likely than not that we will have sufficient future taxable income to realize our deferred tax assets.
Our valuation allowance on our deferred tax assets was $88 million as of the end of 2008.
Total changes in our valuation allowance over the last year, including $13 million in decreases from discontinued operations, were: ?$14 million net decrease in 2008.
This net decrease resulted primarily from: – $10 million decrease due to the sale of Containerboard, Packaging and Recycling operations; – $11 million decrease due to foreign exchange gains; – $8 million increase due to the expectation of future use of state credits; – $3 million decrease due to the sale of Australian operations; and – $2 million increase due to additional foreign losses.
Reinvestment of Undistributed Earnings We have $54 million in undistributed earnings from our foreign subsidiaries as of the end of 2008.
We have reinvested our foreign undistributed earnings; therefore they are not subject to U. S.  income taxes.
It is not practical to determine the income tax liability that would result from repatriation.
HOW WE ACCOUNT FOR INCOME TAXES The Income Taxes section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our income taxes.
UNRECOGNIZED TAX BENEFITS The company adopted Interpretation 48 on January 1, 2007.
Subsequent to adoption, we recognized income tax expense of $25 million in accordance with Interpretation 48, of which $20 million was classified in discontinued operations during 2007.
Under Interpretation 48, unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained.
The total amount of unrecognized tax benefits as of December 31, 2008, and December 30, 2007, are $136 million and $193 million, respectively, which includes related interest of $22 million and $25 million, respectively.
These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as the federal deduction that could be realized if an unrecognized state deduction was not sustained.
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits
## Table 1 ##
The net liability recorded in our Consolidated Balance Sheet under Interpretation 48 was $33 million as of December 31, 2008, and $98 million as of December 30, 2007, which includes interest of $21 million and $25 million, respectively.
These amounts represent tax positions across all jurisdictions that, if sustained, would affect our effective tax rate.
In accordance with our accounting policy, we accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense and current taxes payable.
This policy did not change as a result of Interpretation 48.
During 2008, we settled audits for the tax years 2005 and 2006.
These settlements resulted in a $21 million reduction in our net liability.
As of December 31, 2008, our 2007 federal income tax return is being examined under the IRS Compliance Assurance Process (CAP).
This program accelerates the examination of key issues in an attempt to resolve them before the tax return is filed.
We are also undergoing examination in various state and foreign jurisdictions for the 2000–2006 tax years.
We expect that the outcome of any examination will not have a material effect on our financial statements; however, audit outcomes and the timing of audit settlements are subject to significant uncertainty.
In the next 12 months, we estimate a decrease of up to $4 million in unrecognized tax benefits on several individually insignificant tax positions due to the lapse of applicable statutes of limitation in multiple jurisdictions.
NOTE 24: ACQUISITIONS MARACAY ACQUISITION In February 2006, WRECO acquired Maracay Homes Arizona I LLC (Maracay), a privately held homebuilder located in Phoenix, Arizona.
WRECO paid $213 million, including transaction-related WEYERHAEUSER COMPANY > 2008 ANNUAL REPORT AND FORM 10-K 109
CONTAINERBOARD, PACKAGING AND RECYCLING HOW WE DID IN 2008 We report sales volume and annual production data for our Containerboard, Packaging and Recycling business segment in Our Business/What We Do/Containerboard, Packaging and Recycling.
Here is a comparison of net sales and revenues and contribution to earnings for the last three years: Net Sales and Revenues and Contribution to Earnings for Containerboard, Packaging and Recycling
## Table 2 ##
COMPARING 2008 WITH 2007 In 2008: ?Net sales and revenues decreased by $2 billion.
?Contribution to earnings decreased by $178 million.
Net sales and revenues and contribution to earnings decreased as a result of the sale of these operations during the third quarter of 2008.
Other changes affecting the year-to-date comparison are discussed below.
Net Sales and Revenues Prior to the third-quarter sale, year-to-date net sales and revenues increased primarily due to the following: ?Packaging price realizations increased primarily due to the price increases implemented in September through December 2007.
?Containerboard price realizations increased primarily due to the price increases implemented during the third and fourth quarters of 2007.
?Containerboard shipments increased primarily due to a shift from low-margin box customers to the domestic containerboard market.
?Recycled price realizations increased primarily due to increased demand from China.
These increases in net sales and revenues were partially offset by a decrease in packaging shipments primarily due to a: ?shift from low-margin box customers to the domestic containerboard market; and ?weak U. S.  economy, which adversely affected box demand.
Contribution to Earnings Depreciation of the segment’s assets was suspended as of March 15, 2008, when the assets qualified as held for sale for accounting purposes.
The year-to-date 2008 results include depreciation expense of $60 million.
Items that negatively affected earnings included the following: ?Raw material costs increased primarily from increases in old corrugated containers (OCC) due to the startup of new recycled containerboard machines in China, which caused pricing pressure in the U. S.  Wood chip costs also increased due to weakness in housing starts.
?Energy costs increased primarily due to higher natural gas and electricity costs.
?Mill nonfiber and nonenergy costs increased primarily due to higher costs for chemicals and due to an unscheduled shutdown of a mill in June because of flooding.
?Transportation costs increased primarily due to higher fuel prices.
?Net charges for special items increased.2008 included charges for facility closures, legal settlements and flood costs partially offset by fire insurance proceeds at a box plant and a gain on a property sale.2007 included gains on two property sales partially offset by charges for facility closures and costs incurred as a result of the fire at a box plant.
These decreases to earnings were partially offset by the following: ?Packaging and containerboard price realizations increased.
?OCC costs moderated beginning in the second quarter of 2008 after having increased all of last year and into the first part of this year as a result of strong demand from China.
?Prices for wood chips were stable, but remained high.
?Decreased supplies in both the West and South resulted from production curtailments at wood products manufacturing facilities due to weak housing markets.
December 30, 2007, include assets of the Containerboard, Packaging and Recycling operations and our Australian operations.
SALE OF BUILDING PRODUCTS DISTRIBUTION CENTERS In the second quarter of 2007, we sold our Canadian building products distribution facilities.
In connection with this sale, we recorded pretax charges of $38 million – including $22 million for the impairment of goodwill.
During 2008, we also sold six U. S.  distribution facilities.
We recorded net losses of $6 million – including $5 million for the impairment of goodwill.
The sale of these distribution centers provided us with net cash proceeds of: ?$62 million in 2008 and ?$100 million in 2007 We continue to sell wood products through many of these distribution centers.
As a result, the operations of these facilities are not included in discontinued operations in the accompanying consolidated financial statements.
NOTE 4: NET EARNINGS (LOSS) PER SHARE Our basic net earnings (loss) per share – without considering the dilutive effect of our share-based awards – for the last three years was: ?$(5.57) in 2008, ?$3.60 in 2007 and ?$1.85 in 2006.
Our net earnings (loss) per diluted share for the last three years was: ?$(5.57) in 2008, ?$3.60 in 2007 and ?$1.84 in 2006.
This note provides details about: ?how we calculate basic and diluted net earnings per share and ?our shares with an anti-dilutive effect.
HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE “Basic earnings” per share is net earnings divided by the weighted average number of our outstanding common and exchangeable shares.
As of year-end 2008, we no longer have exchangeable shares outstanding.
More information about this can be found in Note 17: Shareholder’s Interest.
“Diluted earnings” per share is net earnings divided by the sum of the: ?weighted average number of our outstanding common and exchangeable shares and ?effect of our outstanding dilutive potential common shares.
Dilutive potential common shares may include: ?outstanding stock options, ?restricted stock units or ?performance share units.
We use the treasury stock method to calculate the effect of our outstanding dilutive potential common shares.
Components of Our Basic and Diluted Earnings per Share

<table><tr><td><i>(Amounts in millions)­</i></td><td>2007</td><td>2006</td></tr><tr><td>Cash and cash equivalents</td><td>$93.0</td><td>$63.4</td></tr><tr><td>Accounts receivable – net of allowances</td><td>586.9</td><td>559.2</td></tr><tr><td>Inventories</td><td>322.4</td><td>323.0</td></tr><tr><td>Other current assets</td><td>185.1</td><td>167.6</td></tr><tr><td>Total current assets</td><td>1,187.4</td><td>1,113.2</td></tr><tr><td>Accounts payable</td><td>-171.6</td><td>-178.8</td></tr><tr><td>Notes payable and current maturities of long-term debt</td><td>-15.9</td><td>-43.6</td></tr><tr><td>Other current liabilities</td><td>-451.7</td><td>-459.6</td></tr><tr><td>Total current liabilities</td><td>-639.2</td><td>-682.0</td></tr><tr><td>Total working capital</td><td>$548.2</td><td>$431.2</td></tr></table>
<table><tr><td></td><td>DECEMBER 31, 2008</td><td>DECEMBER 30, 2007</td></tr><tr><td>Balance at beginning of year</td><td>$193</td><td>$175</td></tr><tr><td>Additions based on tax positions related to current year</td><td>14</td><td>28</td></tr><tr><td>Additions for tax positions of prior years</td><td>4</td><td>21</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-7</td><td>-27</td></tr><tr><td>Foreign currency translation</td><td>-23</td><td>17</td></tr><tr><td>Settlements</td><td>-21</td><td>-21</td></tr><tr><td>Lapse of statute</td><td>-24</td><td>—</td></tr><tr><td>Balance at end of year</td><td>$136</td><td>$193</td></tr></table>
<table><tr><td></td><td></td><td></td><td></td><td colspan="2">AMOUNT OF CHANGE</td></tr><tr><td></td><td>2008</td><td>2007</td><td>2006</td><td>2008 vs. 2007</td><td>2007 vs. 2006</td></tr><tr><td>Net sales and revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Containerboard</td><td>$301</td><td>$457</td><td>$377</td><td>$-156</td><td>$80</td></tr><tr><td>Packaging</td><td>2,449</td><td>4,019</td><td>3,931</td><td>-1,570</td><td>88</td></tr><tr><td>Recycling</td><td>275</td><td>413</td><td>345</td><td>-138</td><td>68</td></tr><tr><td>Kraft bags and sacks</td><td>56</td><td>96</td><td>88</td><td>-40</td><td>8</td></tr><tr><td>Other products</td><td>88</td><td>183</td><td>171</td><td>-95</td><td>12</td></tr><tr><td> Total</td><td>$3,169</td><td>$5,168</td><td>$4,912</td><td>$-1,999</td><td>$256</td></tr><tr><td> Contribution to earnings</td><td>$204</td><td>$382</td><td>$263</td><td>$-178</td><td>$119</td></tr></table>

Question: what is the percentage change in total current assets from 2006 to 2007?
Answer: 0.06665