Customers We sell our products and services to the major global OEMs in every region of the world.
The following table provides the percentage of net sales to our largest customers for the year ended December 31, 2018:
## Table 0 ##
Supply Relationships with Our Customers We typically supply products to our OEM customers through purchase orders, which are generally governed by general terms and conditions established by each OEM.
Although the terms and conditions vary from customer to customer, they typically contemplate a relationship under which our customers place orders for their requirements of specific components supplied for particular vehicles but are not required to purchase any minimum amount of products from us.
These relationships typically extend over the life of the related vehicle.
Prices are negotiated with respect to each business award, which may be subject to adjustments under certain circumstances, such as commodity or foreign exchange escalation/de-escalation clauses or for cost reductions achieved by us.
The terms and conditions typically provide that we are subject to a warranty on the products supplied; in most cases, the duration of such warranty is coterminous with the warranty offered by the OEM to the end-user of the vehicle.
We may also be obligated to share in all or a part of recall costs if the OEM recalls its vehicles for defects attributable to our products.
Individual purchase orders are terminable for cause or non-performance and, in most cases, upon our insolvency and certain change of control events.
In addition, many of our OEM customers have the option to terminate for convenience on certain programs, which permits our customers to impose pressure on pricing during the life of the vehicle program, and issue purchase contracts for less than the duration of the vehicle program, which potentially reduces our profit margins and increases the risk of our losing future sales under those purchase contracts.
Additionally, our largest customer, GM, expressly reserves a right to terminate for competitiveness on certain of our long-term supply contracts.
We manufacture and ship based on customer release schedules, normally provided on a weekly basis, which can vary due to cyclical automobile production or dealer inventory levels.
Although customer programs typically extend to future periods, and although there is an expectation that we will supply certain levels of OEM production during such future periods, customer agreements including applicable terms and conditions do not necessarily constitute firm orders.
Firm orders are generally limited to specific and authorized customer purchase order releases placed with our manufacturing and distribution centers for actual production and order fulfillment.
Firm orders are typically fulfilled as promptly as possible from the conversion of available raw materials, sub-components and work-in-process inventory for OEM orders and from current on-hand finished goods inventory for aftermarket orders.
The dollar amount of such purchase order releases on hand and not processed at any point in time is not believed to be significant based upon the time frame involved.
Materials We procure our raw materials from a variety of suppliers around the world.
Generally, we seek to obtain materials in the region in which our products are manufactured in order to minimize transportation and other costs.
The most significant raw materials we use to manufacture our products include copper and resins.
As of December 31, 2018, we have not experienced any significant shortages of raw materials and normally do not carry inventories of such raw materials in excess of those reasonably required to meet our production and shipping schedules.
Commodity cost volatility, most notably related to copper, petroleum-based resin products and fuel, is a challenge for us and our industry.
We are continually seeking to manage these and other material-related cost pressures using a combination of strategies, including working with our suppliers to mitigate costs, seeking alternative product designs and material
## Table 1 ##
(1) Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities.
Balances and ratios have been adjusted to exclude assets held-for-sale at December 31, 2007 and 2006 and exposure measured at fair value in accordance with SFAS 159 at December 31, 2007.
Had criticized exposure in the assets held-for-sale and fair value portfolios been included, the ratio of commercial utilized criticized exposure to total commercial utilized exposure would have been 4.77 percent and 2.23 percent at December 31, 2007 and 2006.
(2) Exposure includes standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances for which the bank is legally bound to advance funds under prescribed conditions, during a specified period.
Although funds have not been advanced, these exposure types are considered utilized for credit risk management purposes.
(3) Ratios are calculated as commercial utilized criticized exposure divided by total commercial utilized exposure for each exposure category.
Table 18 presents commercial utilized criticized exposure by product type and as a percentage of total commercial utilized exposure.
Commercial utilized criticized exposure increased $10.5 billion, or 149 percent, primarily due to increases in commercial real estate and commercial – domestic of which LaSalle contributed $5.1 billion as discussed in more detail in the product sections below.
The table above excludes utilized criticized exposure related to assets held-for-sale of $2.9 billion and $600 million at December 31, 2007 and 2006 and other utilized criticized exposure measured at fair value in accordance with SFAS 159 of $1.1 billion at December 31, 2007.
See Note 19 – Fair Value Disclosures to the Consolidated Financial Statements for a discussion of the fair value portfolio.
Criticized assets in the held-for-sale portfolio, are carried at the lower of cost or market, including bridge exposure of $2.3 billion and $550 million at December 31, 2007 and 2006 which funded in the normal course of our Business Lending and CMAS businesses and are managed in part through our “originate to distribute” strategy (see Management of Commercial Credit Risk Concentrations beginning on page 74 for more information on bridge financing).
The level of funded, criticized bridge exposures in the held-for-sale portfolio increased as a result of adverse market conditions in the second half of 2007.
Had criticized exposure in the assets held-for-sale and fair value portfolios been included, the ratio of commercial utilized criticized exposure to total commercial utilized exposure would have been 4.77 percent and 2.23 percent at December 31, 2007 and 2006.
Commercial – Domestic At December 31, 2007, approximately 89 percent of the commercial – domestic portfolio, excluding small business, was included in Business Lending (business banking, middle market and large multinational corporate loans and leases) and CMAS (acquisition and bridge financing).
The remaining 11 percent was mostly in GWIM (business-purpose loans for wealthy individuals).
Outstanding commercial – domestic loans and leases including loans measured at fair value, increased $45.8 billion to $194.0 billion at December 31, 2007 compared to December 31, 2006 driven primarily by an increase in loans within GCIB related to the addition of LaSalle and organic growth.
Nonperforming commercial – domestic loans increased by $364 million to $869 million primarily driven by the addition of LaSalle.
Net charge-offs were up $163 million from 2006 driven primarily by a lower level of recoveries.
Criticized utilized commercial – domestic exposure excluding assets in the held-for-sale and fair value portfolios, increased $4.0 billion to $8.8 billion primarily driven by the addition of LaSalle, higher exposure to mortgage lenders and asset-based lending.
Commercial Real Estate The commercial real estate portfolio is mostly managed in Business Lending and consists of loans issued primarily to public and private developers, homebuilders and commercial real estate firms.
Outstanding loans and leases, including loans measured at fair value, increased $25.3 billion to $61.6 billion at December 31, 2007 compared to 2006.
The increase was related to the acquisition of LaSalle, which increased outstandings by approximately $18.8 billion, and organic growth.
The portfolio remains diversified across property types and geographic regions with increases in Illinois, the Midwest and California largely related to the addition of LaSalle.
Organic growth was strong in the Northeast and in retail, office and apartment property types.
The addition of LaSalle contributed to growth in residential and broadly across all other property types.
Nonperforming commercial real estate loans increased $981 million to $1.1 billion and utilized criticized exposure increased $6.0 billion to $6.8 billion attributable to the continuing impact of the housing slowdown on the homebuilding sector as well as the addition of LaSalle.
Nonperforming loans and utilized criticized exposure in the homebuilding sector were $792 million and $5.4 billion, respectively, at December 31, 2007 compared to $71 million and $348 million at December 31, 2006.
Net charge-offs were up $44 million from 2006 principally related to the homebuilder sector of the portfolio.
At December 31, 2007, we had homebuilder-related exposure of $13.6 billion in loans and $21.6 billion in commercial committed exposure, of which 39 percent was criticized and six percent was classified as nonperforming.
Assets held-for-sale associated with commercial real estate increased $8.6 billion to $13.8 billion at December 31, 2007 compared to 2006, driven by reduced market liquidity resulting in a higher level of warehoused assets pending commercial mortgage-backed securitizations and the addition of LaSalle.
Refer to Management of Commercial Credit Risk Concentrations on page 74 for a discussion of our CMBS exposure.
among other items, authorized the issuance of an additional 7 million shares pursuant to the plan bringing the total number of shares authorized for issuance under the plan to 45 million.
No more than 14 million of the 45 million authorized shares may be granted in any form other than stock options or stock appreciation rights.
Stock options granted under the 2007 Stock Incentive Plan, the 1998 Stock Option Plan and the Tektronix Plans generally vest pro-rata over a five-year period and terminate ten years from the grant date, though the specific terms of each grant are determined by the Compensation Committee of the Company’s Board (the “Compensation Committee”).
The Company’s executive officers and certain other employees have been awarded options with different vesting criteria, and options granted to outside directors are fully vested as of the grant date.
Option exercise prices for options granted by the Company under these plans equal the closing price of the Company’s common stock on the NYSE on the date of grant.
Option exercise prices for the options outstanding under the Tektronix Plans were based on the closing price of Tektronix common stock on the date of grant.
In connection with the Company’s assumption of these options, the number of shares underlying each option and exercise price of each option were adjusted to reflect the substitution of the Company’s stock for the Tektronix stock underlying these awards.
RSUs issued under the 2007 Stock Incentive Plan and the 1998 Stock Option Plan provide for the issuance of a share of the Company’s common stock at no cost to the holder.
Most RSU awards granted prior to the third quarter of 2009 were granted subject to performance criteria determined by the Compensation Committee, and RSU awards granted during or after the third quarter of 2009 to members of the Company’s senior management are also subject to performance criteria.
The RSUs that have been granted to employees under the 2007 Stock Incentive Plan and the 1998 Stock Option Plan generally provide for timebased vesting over a five year period, although the specific time-based vesting terms vary depending on grant date and on whether the recipient is a member of senior management.
The RSUs that have been granted to directors under the 2007 Stock Incentive Plan vest on the earlier of the first anniversary of the grant date or the date of, and immediately prior to, the next annual meeting of the Company’s shareholders following the grant date, but the underlying shares are not issued until the earlier of the director’s death or the first day of the seventh month following the director’s retirement from the Board.
Prior to vesting, RSUs do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding.
Restricted shares issued under the Tektronix Plans were granted subject to certain time-based vesting restrictions such that the restricted share awards fully vested after a period of five years.
The holders of these restricted shares had the right to vote such shares and receive dividends and the shares were considered issued and outstanding at the date the award was granted.
As of December 31, 2012, all of the restricted shares and RSUs granted under the Tektronix Plans have fully vested.
The options, RSUs and restricted shares generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Company Board) on the vesting date or in other limited circumstances.
To cover the exercise of options and vesting of RSUs, the Company generally issues new shares from its authorized but unissued share pool, although it may instead issue treasury shares in certain circumstances.
At December 31, 2012, approximately 16 million shares of the Company’s common stock were reserved for issuance under the 2007 Stock Incentive Plan.
The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, RSUs and restricted shares, based on the fair value of the award as of the grant date.
The Company recognizes the compensation expense over the requisite service period (which is generally the vesting period but may be shorter than the vesting period if the employee becomes retirement eligible before the end of the vesting period).
The fair value for RSU and restricted stock awards was calculated using the closing price of the Company’s common stock on the date of grant.
The fair value of the options granted was calculated using a Black-Scholes Merton option pricing model (“Black-Scholes”).
The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31, 2012, 2011 and 2010:
## Table 2 ##
The Black-Scholes model incorporates assumptions to value stock-based awards.
The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U. S.  government instrument whose maturity period equals

<table><tr><td>Customer</td><td>Percentage of Net Sales</td></tr><tr><td>GM</td><td>11%</td></tr><tr><td>Volkswagen Group (“VW”)</td><td>9%</td></tr><tr><td>Fiat Chrysler Automobiles N.V. (“FCA”)</td><td>9%</td></tr><tr><td>Ford Motor Company (“Ford”)</td><td>7%</td></tr><tr><td>SAIC General Motors Corporation Limited</td><td>5%</td></tr><tr><td>PSA Peugeot Citroën (“PSA”)</td><td>5%</td></tr><tr><td>Geely Automobile Holdings Limited</td><td>4%</td></tr><tr><td>Daimler AG (“Daimler”)</td><td>4%</td></tr><tr><td>Toyota Motor Corporation</td><td>3%</td></tr><tr><td>Renault-Nissan</td><td>2%</td></tr></table>
<table><tr><td></td><td colspan="2">December 31, 2007</td><td colspan="2">December 31, 2006</td></tr><tr><td>(Dollars in millions)</td><td> Amount</td><td>Percent -3</td><td>Amount</td><td>Percent<sup>-3</sup></td></tr><tr><td>Commercial – domestic<sup>-4</sup></td><td>$8,829</td><td>3.37%</td><td>$4,803</td><td>2.39%</td></tr><tr><td>Commercial real estate</td><td>6,825</td><td>10.35</td><td>806</td><td>1.98</td></tr><tr><td>Commercial lease financing</td><td>594</td><td>2.63</td><td>504</td><td>2.31</td></tr><tr><td>Commercial – foreign</td><td>509</td><td>0.98</td><td>571</td><td>1.32</td></tr><tr><td></td><td>16,757</td><td>4.16</td><td>6,684</td><td>2.18</td></tr><tr><td>Small business commercial – domestic</td><td>796</td><td>4.46</td><td>377</td><td>2.72</td></tr><tr><td> Total commercial utilized criticized exposure</td><td>$17,553</td><td>4.17</td><td>$7,061</td><td>2.20</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31</td></tr><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Risk-free interest rate</td><td>0.7 – 1.7%</td><td>1.2 – 3.2%</td><td>1.4 – 3.4%</td></tr><tr><td>Weighted average volatility</td><td>30.1%</td><td>28.0%</td><td>28.0%</td></tr><tr><td>Dividend yield</td><td>0.2%</td><td>0.2%</td><td>0.2%</td></tr><tr><td>Expected years until exercise</td><td>6.0 – 8.5</td><td>6.0 – 8.5</td><td>6.0 – 8.5</td></tr></table>

Question: Which Commercial lease financing continue to rise between 2007 and 2006? (in millions)
Answer: 90.0