The 2006 impact on the Consolidated Balance Sheet of the purchase price allocations related to the 2006 acquisitions and adjustments relative to other acquisitions within the allocation period were provided in the preceding table.
Year 2005 acquisitions: The Company acquired CUNO on August 2, 2005.
The operating results of CUNO are included in the Industrial and Transportation Business segment.
CUNO is engaged in the design, manufacture and marketing of a comprehensive line of filtration products for the separation, clarification and purification of fluids and gases.3M and CUNO have complementary sets of filtration technologies, creating an opportunity to bring an even wider range of filtration solutions to customers around the world.3M acquired CUNO for approximately $1.36 billion, comprised of $1.27 billion of cash paid (net of cash acquired) and the acquisition of $80 million of debt, most of which has been repaid.
Purchased identifiable intangible assets of $268 million for the CUNO acquisition will be amortized on a straight-line basis over lives ranging from 5 to 20 years (weighted-average life of 15 years).
In-process research and development charges from the CUNO acquisition were not material.
Pro forma information related to this acquisition is not included because its impact on the Company’s consolidated results of operations is not considered to be material.
The allocation of the purchase price is presented in the table that follows.
## Table 0 ##
During the year ended December 31, 2005, 3M entered into two immaterial additional business combinations for a total purchase price of $27 million, net of cash acquired.1) 3M (Electro and Communications Business) purchased certain assets of Siemens Ultrasound division’s flexible circuit manufacturing line, a U. S.  operation.
The acquired operation produces flexible interconnect circuits that provide electrical connections between components in electronics systems used primarily in the transducers of ultrasound machines.2) 3M (Display and Graphics Business) purchased certain assets of Mercury Online Solutions Inc. , a U. S.  operation.
The acquired operation provides hardware and software technologies and network management services for digital signage and interactive kiosk networks.
NOTE 3.
Goodwill and Intangible Assets As discussed in Note 16 to the Consolidated Financial Statements, effective in the first quarter of 2007, 3M made certain product moves between its business segments, which resulted in changes in the goodwill balances by business segment as presented below.
For those changes that resulted in reporting unit changes, the Company applied the relative fair value method to determine the impact to reporting units.
SFAS No.142, “Goodwill and Other Intangible Assets,” requires that goodwill be tested for impairment at least annually and when reporting units are changed.
Purchased goodwill from acquisitions totaled $326 million in 2007, $55 million of which is deductible for tax purposes.
Purchased goodwill from acquisitions totaled $536 million in 2006, $41 million of which is deductible for tax purposes.
WOOD PRODUCTS The production capacity, number of facilities and actual production we report in this section reflect: ?
the disposition of our B. C.  Coastal operations in May 2005, and ?
the disposition of our North American composite panel operations in July 2006.
PRINCIPAL MANUFACTURING LOCATIONS Our Wood Products business segment has manufacturing facilities throughout the United States and Canada.
Broken out by major products, locations of our principal manufacturing facilities are: ?
Softwood Lumber – U. S.  – Alabama, Arkansas, Louisiana, Mississippi, North Carolina, Oklahoma, Oregon and Washington – Canada – Alberta, British Columbia and Ontario ?
Engineered Lumber – U. S.  – Alabama, Georgia, Kentucky, Louisiana, Minnesota, Oregon and West Virginia – Canada – Alberta, British Columbia and Ontario ?
Structural Panels: – Oriented Strand Board – U. S.  – Louisiana, Michigan, North Carolina and West Virginia – Canada – Alberta, New Brunswick, Ontario and Saskatchewan ?
Plywood and Veneer – U. S.  – Alabama, Arkansas, Louisiana, Oregon and Washington – Canada – Saskatchewan ?
Hardwood Lumber – U. S.  – Michigan, Oregon, Washington and Wisconsin – Canada – British Columbia
## Table 1 ##
FIVE-YEAR SUMMARY OF WOOD PRODUCTS PRODUCTION
## Table 2 ##
(1) Fiscal year 2006 includes 53 weeks of operations compared to 52 weeks in fiscal years 2002 through 2005.
(2) All Weyerhaeuser plywood facilities also produce veneer.
(3) Veneer production represents lathe production and includes volumes that are used to produce plywood and engineered lumber products by company mills.
(4) Weyerhaeuser engineered I-Joist facilities may also produce engineered solid section.
Proceeds from the sale of nonstrategic assets Proceeds received from the sale of nonstrategic assets in each of the last three years were: ?
$304 million in 2006 – includes $273 million from the sale of the North American and Irish composite panel operations; ?
$1.4 billion in 2005 – includes $1.2 billion from the sale of the B. C.  Coastal and French composite panel operations and $115 million from the sale of an equity investment; and ?
$543 million in 2004 – includes $384 million from the sale of timberlands in Georgia HOW WE USE CASH In addition to paying for ongoing operating costs, we use cash to: ?
invest in our business, ?
repay long-term debt and credit facilities, ?
pay dividends and repurchase our stock and ?
meet our contractual obligations and commercial commitments.
Investing in our business We anticipate that our capital expenditures for 2007 – excluding acquisitions and our Real Estate and Related Assets business segment – will be approximately $800 million.
However, that amount could change due to: ?
future economic conditions, ?
weather and ?
timing of equipment purchases.
In addition, we finalized the following transactions during 2006: ?
WRECO acquired Maracay Homes Arizona I, LLC –, a privately held homebuilder in Arizona – in February 2006.
WRECO paid $213 million, including transaction related costs, in connection with the acquisition.  ?
Weyerhaeuser purchased PSA Composites LLC – a company that has developed technology for extrusion and pulltrusion of oriented polymer composites – in October 2006 for $20 million.
Internally generated cash flows provided the cash needed to meet our capital expenditure and investment and other requirements in 2006.
THREE-YEAR SUMMARY OF CAPITAL SPENDING BY BUSINESS SEGMENT – EXCLUDING REAL ESTATE AND RELATED ASSETS
## Table 3 ##
Long-term debt During 2006, we reduced overall debt – including that for our Real Estate and Related Assets segment – by approximately $401 million.
Our consolidated long-term debt was: ?
$8.2 billion as of December 31, 2006; ?
$8.6 billion as of December 25, 2005; and ?
$10.6 billion as of December 26, 2004.
During 2005 and 2004, we retired some of our long-term debt prior to its scheduled maturity.
The premiums and other costs related to doing so were: ?
$32 million in 2005 and ?
$68 million in 2004.
Revolving credit facilities In December 2006, Weyerhaeuser Company and WRECO entered into two multi-year revolving credit facility agreements: a $1.2 billion revolving credit facility that expires in March 2010 and a $1.0 billion 5-year revolving credit facility that expires in December 2011.
The former replaces a $1.2 billion credit facility that was scheduled to expire in March 2010 and the latter replaces an $800 million multi-year revolving line of credit that was scheduled to expire in March 2007.
WRECO can borrow up to $400 million under each of these facilities.
Neither of the entities is a guarantor of the borrowing of the other under either of these credit facilities.
As of December 31, 2006, approximately $1.6 billion of our credit facilities were available for incremental borrowings.
Our wholly-owned Canadian subsidiary – Weyerhaeuser Company Limited – had a multi-year revolving credit facility with a group of banks that provides for borrowings up to $200 million (Canadian) or $172 million (U. S. ).
The credit facility was fully drawn at December 31, 2006.
Weyerhaeuser is a guarantor of the borrowings on this credit facility, which was scheduled to expire in December 2008.
In January 2007, Weyerhaeuser Company Limited repaid the outstanding balance and terminated the credit facility.
of the Board of Directors (the Committee) establishes an overall pool of stock awards available for grant in any given year based on performance.
For stock-settled awards, the company issues new stock into the marketplace and generally does not repurchase shares in connection with the issuance of new awards.
Prior to 2006, only stock options and stock appreciation rights had been issued under the Plan.
In 2006, the company also issued restricted stock units and performance share units under the Plan.
If all options outstanding at December 31, 2006, including some options that were previously granted under an earlier plan, and all remaining options that could be granted under the Plan were exercised, the company’s common shares would increase by approximately 25 million shares.
In December 2004, the FASB issued Statement 123R, which revises Statement 123 and supersedes APB 25.
Statement 123R eliminates the alternative of using the intrinsic value method of accounting for share-based awards that was provided under APB 25.
Under APB 25, the company generally did not recognize compensation expense related to the issuance of stock options; however, compensation expense was recognized related to changes in the intrinsic value of stock appreciation rights issued under the Plan.
Statement 123R established a fair-value-based measurement of share-based awards and requires that the cost of these awards be recognized in the company’s Consolidated Financial Statements.
The cost is recognized in the Consolidated Statement of Earnings over the period from the date of grant to the date when the award is no longer contingent upon the employee providing additional service (the required service period).
For awards that vest upon retirement, the required service period does not extend beyond the date an employee is eligible for retirement, including early retirement.
For awards that continue to vest following job elimination as a result of restructuring or the closure or sale of a facility, the required service period does not extend beyond the date the position is eliminated.
These situations can result in compensation expense being recognized over a period less than the stated vesting period.
The company adopted Statement 123R as of the beginning of fiscal year 2006, using the modified prospective transition method.
Accordingly, prior period amounts have not been restated.
Prior to adoption of Statement 123R, the company defined the past year as the service period and share-based employee compensation expense was recognized in the company’s pro forma disclosures in accordance with Statement 123 as of the option grant dates.
Therefore, under the modified prospective method, no additional compensation expense will be recognized in the company’s Consolidated Statement of Earnings related to equity-classified awards issued prior to 2006, unless those awards are subsequently modified.
Share-based compensation expense (income) recognized in 2006 for all share-based awards was $28 million, which included a $6 million charge in the first quarter for the cumulative effect to revalue the liability for stock appreciation rights as of December 25, 2005, from the intrinsic value of the outstanding awards to the estimated fair value of the outstanding awards.
Total compensation expense recognized for share-based awards in 2005 and 2004 was $11 million and $9 million, respectively.
The total income tax benefit recognized in the Consolidated Statement of Earnings for share-based awards for 2006, 2005 and 2004 was $9 million, $4 million and $3 million, respectively.
Statement 123R requires the benefits of tax deductions in excess of the compensation cost recognized for share-based awards to be classified as financing cash inflows rather than operating cash inflows, on a prospective basis on the Consolidated Statement of Cash Flows.
The company realized $23 million in excess tax benefits from share-based payment arrangements in 2006, which is shown as “Excess tax benefits from share-based payment arrangements” on the Consolidated Statement of Cash Flows.
The company realized tax benefits on the exercise of stock options of $15 million in both 2005 and 2004.
These amounts are included in other operating cashflows.
As of December 31, 2006, there was approximately $31 million of total unrecognized compensation cost related to nonvested equity-classified share-based compensation arrangements granted under the Plan that is expected to be recognized over a weighted-average period of approximately 2.5 years.
In addition, as of December 31, 2006, there was approximately $1 million of unrecognized compensation related to nonvested liability-classified stock appreciation rights that are expected to vest over a weighted-average period of approximately 3.1 years.
The following table illustrates the effect on 2005 and 2004 net earnings and net earnings per share as if the company had applied the fair value recognition provisions of Statement 123 to share-based employee compensation.
For awards issued prior to 2006, the company defined the prior year as the service period for purposes of applying the fair value recognition provisions of Statement 123.
As a result, share-based employee compensation expense is reflected as of the option grant dates in the following table:

<table><tr><td>Accounts receivable</td><td>$96</td></tr><tr><td>Inventory</td><td>61</td></tr><tr><td>Property, plant, and equipment — net</td><td>121</td></tr><tr><td>Purchased intangible assets</td><td>268</td></tr><tr><td>Purchased goodwill</td><td>992</td></tr><tr><td>Other assets</td><td>30</td></tr><tr><td>Deferred tax liability</td><td>-102</td></tr><tr><td>Accounts payable and other current liabilities</td><td>-104</td></tr><tr><td>Interest bearing debt</td><td>-80</td></tr><tr><td>Other long-term liabilities</td><td>-16</td></tr><tr><td>Net assets acquired</td><td>$1,266</td></tr><tr><td>Supplemental information:</td><td></td></tr><tr><td>Cash paid</td><td>$1,294</td></tr><tr><td>Less: Cash acquired</td><td>28</td></tr><tr><td>Cash paid, net of cash acquired</td><td>$1,266</td></tr></table>
<table><tr><td></td><td> PRODUCTION CAPACITY</td><td> NUMBER OF FACILITIES</td></tr><tr><td>Softwood lumber – board feet</td><td>6,600</td><td>32</td></tr><tr><td>Plywood – square feet (3/8”)<sup>(2)</sup></td><td>645</td><td>3</td></tr><tr><td>Veneer – square feet (3/8”)<sup>(2)(3)</sup></td><td>1,630</td><td>8</td></tr><tr><td>Oriented strand board – square feet (3/8”)</td><td>4,260</td><td>9</td></tr><tr><td>Hardwood lumber – board feet</td><td>350</td><td>8</td></tr><tr><td>Engineered I-Joists – lineal feet<sup>-4</sup></td><td>575</td><td>7</td></tr><tr><td>Engineered solid section – cubic feet<sup>-4</sup></td><td>50</td><td>11</td></tr></table>
<table><tr><td></td><td> 2006</td><td> 2005</td><td> 2004</td><td> 2003</td><td> 2002</td></tr><tr><td>Softwood lumber – board feet</td><td>6,355</td><td>6,986</td><td>7,187</td><td>7,113</td><td>6,831</td></tr><tr><td>Plywood – square feet (3/8”)<sup>(2)</sup></td><td>900</td><td>1,155</td><td>1,628</td><td>1,708</td><td>1,776</td></tr><tr><td>Veneer – square feet (3/8”)<sup>(2)(3)</sup></td><td>1,739</td><td>1,979</td><td>2,386</td><td>2,199</td><td>2,187</td></tr><tr><td>Composite panels – square feet (3/4”)</td><td>666</td><td>1,080</td><td>1,066</td><td>988</td><td>864</td></tr><tr><td>Oriented strand board – square feet (3/8”)</td><td>4,166</td><td>4,078</td><td>4,081</td><td>4,170</td><td>4,020</td></tr><tr><td>Hardwood lumber – board feet</td><td>324</td><td>364</td><td>349</td><td>373</td><td>372</td></tr><tr><td>Engineered I-Joists – lineal feet<sup>-4</sup></td><td>473</td><td>483</td><td>504</td><td>437</td><td>409</td></tr><tr><td>Engineered solid section – cubic feet<sup>-4</sup></td><td>41</td><td>41</td><td>42</td><td>34</td><td>32</td></tr></table>
<table><tr><td></td><td> 2006</td><td> 2005</td><td> 2004</td></tr><tr><td>Timberlands</td><td>$62</td><td>$59</td><td>$55</td></tr><tr><td>Wood Products</td><td>191</td><td>161</td><td>147</td></tr><tr><td>Cellulose Fiber and White Papers</td><td>252</td><td>317</td><td>154</td></tr><tr><td>Containerboard, Packaging and Recycling</td><td>234</td><td>221</td><td>85</td></tr><tr><td>Corporate and Other</td><td>110</td><td>117</td><td>63</td></tr><tr><td></td><td>$849</td><td>$875</td><td>$504</td></tr></table>

Question: Which element occupies the greatest proportion in total amount 2006?
Answer: Softwood lumber – board feet