Undistributed earnings of $696.9 million from certain foreign subsidiaries are considered to be permanently reinvested abroad and will not be repatriated to the United States in the foreseeable future.
Because those earnings are considered to be indefinitely reinvested, no domestic federal or state deferred income taxes have been provided thereon.
If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, we would be subject to both U. S.  income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign jurisdictions.
Because of the availability of U. S.  foreign tax credit carryforwards, it is not practicable to determine the domestic federal income tax liability that would be payable if such earnings were no longer considered to be reinvested indefinitely.
A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Changes to our valuation allowance during the years ended May 31, 2015 and 2014 are summarized below (in thousands):
## Table 0 ##
Net operating loss carryforwards of foreign subsidiaries totaling $12.4 million and U. S.  net operating loss carryforwards previously acquired totaling $19.8 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2033 if not utilized.
Capital loss carryforwards of U. S.  subsidiaries totaling $4.7 million will expire if not utilized by May 31, 2017.
Tax credit carryforwards totaling $8.4 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2023 if not utilized.
We conduct business globally and file income tax returns in the U. S.  federal jurisdiction and various state and foreign jurisdictions.
In the normal course of business, we are subject to examination by taxing authorities around the world.
As a result of events that occurred in the fourth quarter of the year ended May 31, 2015, management concluded that it was more likely than not that the tax positions in a foreign jurisdiction, for which we had recorded estimated liabilities of $65.6 million in other noncurrent liabilities on our consolidated balance sheet, would be sustained on their technical merits based on information available as of May 31, 2015.
Therefore, the liability and corresponding deferred tax assets were eliminated as of May 31, 2015.
The uncertain tax positions have been subject to an ongoing examination in that foreign jurisdiction by the tax authority.
Discussions and correspondence between the tax authority and us during the fourth quarter indicated that the likelihood of the positions being sustained had increased.
Subsequent to May 31, 2015, we received a final closure notice regarding the examination resulting in no adjustments to taxable income related to this matter for the tax returns filed for the periods ended May 31, 2010 through May 31, 2013.
The unrecognized tax benefits were effectively settled with this final closure notice.
We are no longer subjected to state income tax examinations for years ended on or before May 31, 2008, U. S.  federal income tax examinations for fiscal years prior to 2012 and United Kingdom federal income tax examinations for years ended on or before May 31, 2013.
Item 6.
SELECTED FINANCIAL DATA The following table sets forth selected consolidated financial and other information as of and for each of the years in the five-year period ended December 31, 2007.
The table should be read in conjunction with our consolidated financial statements and the notes thereto, and Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations, included elsewhere in this Report.
## Table 1 ##
(a) Reclassified to conform to current year presentation in accordance with FASB Statement No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” as described in Note 3 to the consolidated financial statements.
(b) Funds from operations, or FFO, is defined as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable property, premiums or original issuance costs associated with preferred stock redemptions, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
This definition conforms with the National Association of Real Estate Investment Trust’s definition issued in April 2002.
We consider FFO in evaluating property acquisitions and our operating performance and believe that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of our activities in accordance with generally accepted accounting principles.
FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs.
RE3 is our subsidiary that focuses on development, land entitlement and short-term hold investments.
RE3 tax benefits and gain on sales, net of taxes, is defined as net sales proceeds less a tax provision and the gross investment basis of the asset before accumulated depreciation.
We consider FFO with RE3 tax benefits and gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produce a profit that differs from the traditional long-term investment in real estate for REITs.
For 2005, FFO includes $2.5 million of hurricane related insurance recoveries.
For 2004, FFO includes a charge of $5.5 million to cover hurricane related expenses.
For the years ended December 31, 2007, 2004 and 2003, distributions to preferred stockholders exclude $2.6 million, $5.7 million and $19.3 million, respectively, related to premiums on preferred stock repurchases.
$1,138 per home, and major renovations totaled $71.8 million or $1,045 per home for the year ended December 31, 2007.
The following table outlines capital expenditures and repair and maintenance costs for all of our communities, excluding real estate under development, condominium conversions and commercial properties, for the periods presented:
## Table 2 ##
Total capital expenditures for our communities decreased $21.3 million or $167 per home for the year ended December 31, 2007 compared to the same period in 2006.
This decrease was attributable to a $65.9 million decrease in revenue enhancing improvements at certain of our properties that was offset by an additional $9.8 million being invested in recurring capital expenditures and an additional $34.8 million being invested in major renovations as compared to the same period in 2006.
We will continue to selectively add revenue enhancing improvements which we believe will provide a return on investment substantially in excess of our cost of capital.
Recurring capital expenditures during 2008 are currently expected to be approximately $650 per home.
Impairment of Long-Lived Assets We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets.
Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods.
The net book value of impaired assets is reduced to fair market value.
Our estimates of fair market value represent our best estimate based upon industry trends and reference to market rates and transactions.
Real Estate Investment Properties We purchase real estate investment properties from time to time and allocate the purchase price to various components, such as land, buildings, and intangibles related to in-place leases in accordance with FASB Statement No.141, “Business Combinations.
” The purchase price is allocated based on the relative fair value of each component.
The fair value of buildings is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates.
As such, the determination of fair value considers the present value of all cash flows expected to be generated from the property including an initial lease-up period.
We determine the fair value of in-place leases by assessing the net effective rent and remaining term of the lease relative to market terms for similar leases at acquisition.
In addition, we consider the cost of acquiring similar leases, the foregone rents associated with the lease-up period, and the carrying costs associated with the lease-up period.
The fair value of in-place leases is recorded and amortized as amortization expense over the remaining contractual lease period.

<table><tr><td>Balance at May 31, 2013</td><td>$-28,464</td></tr><tr><td>Utilization of foreign net operating loss carryforwards</td><td>2,822</td></tr><tr><td>Allowance for foreign tax credit carryforward</td><td>18,061</td></tr><tr><td>Other</td><td>382</td></tr><tr><td>Balance at May 31, 2014</td><td>-7,199</td></tr><tr><td>Utilization of foreign net operating loss carryforwards</td><td>3,387</td></tr><tr><td>Other</td><td>-11</td></tr><tr><td>Balance at May 31, 2015</td><td>$-3,823</td></tr></table>
<table><tr><td></td><td colspan="5">Years Ended December 31, (In thousands, except per share data and apartment homes owned)</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td> Operating Data(a)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Rental income</td><td>$497,474</td><td>$463,719</td><td>$407,038</td><td>$306,691</td><td>$244,758</td></tr><tr><td>Loss before minority interests and discontinued operations</td><td>-100,596</td><td>-91,870</td><td>-63,499</td><td>-58,003</td><td>-59,187</td></tr><tr><td>Income from discontinued operations, net of minority interests</td><td>208,130</td><td>214,102</td><td>214,126</td><td>150,073</td><td>123,453</td></tr><tr><td>Net income</td><td>221,349</td><td>128,605</td><td>155,166</td><td>97,152</td><td>70,404</td></tr><tr><td>Distributions to preferred stockholders</td><td>13,911</td><td>15,370</td><td>15,370</td><td>19,531</td><td>26,326</td></tr><tr><td>Net income available to common stockholders</td><td>205,177</td><td>113,235</td><td>139,796</td><td>71,892</td><td>24,807</td></tr><tr><td>Common distributions declared</td><td>177,540</td><td>168,408</td><td>163,690</td><td>152,203</td><td>134,876</td></tr><tr><td>Weighted average number of common shares outstanding — basic</td><td>134,016</td><td>133,732</td><td>136,143</td><td>128,097</td><td>114,672</td></tr><tr><td>Weighted average number of common shares outstanding — diluted</td><td>134,016</td><td>133,732</td><td>136,143</td><td>128,097</td><td>114,672</td></tr><tr><td>Weighted average number of common shares, OP Units, and common stock equivalents outstanding — diluted</td><td>146,936</td><td>147,981</td><td>150,141</td><td>145,842</td><td>136,975</td></tr><tr><td>Per share — basic and diluted:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loss from continuing operations available to common stockholders, net of minority interests</td><td>$-0.02</td><td>$-0.75</td><td>$-0.54</td><td>$-0.61</td><td>$-0.86</td></tr><tr><td>Income from discontinued operations, net of minority interests</td><td>1.55</td><td>1.60</td><td>1.57</td><td>1.17</td><td>1.08</td></tr><tr><td>Net income available to common stockholders</td><td>1.53</td><td>0.85</td><td>1.03</td><td>0.56</td><td>0.22</td></tr><tr><td>Common distributions declared</td><td>1.32</td><td>1.25</td><td>1.20</td><td>1.17</td><td>1.14</td></tr><tr><td> Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Real estate owned, at cost</td><td>$5,952,541</td><td>$5,820,122</td><td>$5,512,424</td><td>$5,243,296</td><td>$4,351,551</td></tr><tr><td>Accumulated depreciation</td><td>1,371,759</td><td>1,253,727</td><td>1,123,829</td><td>1,007,887</td><td>896,630</td></tr><tr><td>Total real estate owned, net of accumulated depreciation</td><td>4,580,782</td><td>4,566,395</td><td>4,388,595</td><td>4,235,409</td><td>3,454,921</td></tr><tr><td>Total assets</td><td>4,801,121</td><td>4,675,875</td><td>4,541,593</td><td>4,332,001</td><td>3,543,643</td></tr><tr><td>Secured debt</td><td>1,137,936</td><td>1,182,919</td><td>1,116,259</td><td>1,197,924</td><td>1,018,028</td></tr><tr><td>Unsecured debt</td><td>2,364,740</td><td>2,155,866</td><td>2,043,518</td><td>1,682,058</td><td>1,114,009</td></tr><tr><td>Total debt</td><td>3,502,676</td><td>3,338,785</td><td>3,159,777</td><td>2,879,982</td><td>2,132,037</td></tr><tr><td>Stockholders’ equity</td><td>1,019,393</td><td>1,055,255</td><td>1,107,724</td><td>1,195,451</td><td>1,163,436</td></tr><tr><td>Number of common shares outstanding</td><td>133,318</td><td>135,029</td><td>134,012</td><td>136,430</td><td>127,295</td></tr><tr><td> Other Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> Cash Flow Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash provided by operating activities</td><td>$250,578</td><td>$229,613</td><td>$248,186</td><td>$251,747</td><td>$234,945</td></tr><tr><td>Cash used in investing activities</td><td>-71,397</td><td>-149,973</td><td>-219,017</td><td>-595,966</td><td>-304,217</td></tr><tr><td>Cash (used in)/provided by financing activities</td><td>-178,105</td><td>-93,040</td><td>-21,530</td><td>347,299</td><td>70,944</td></tr><tr><td> Funds from Operations(b)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Funds from operations — basic</td><td>$247,210</td><td>$244,471</td><td>$238,254</td><td>$211,670</td><td>$193,750</td></tr><tr><td>Funds from operations — diluted</td><td>250,936</td><td>248,197</td><td>241,980</td><td>219,557</td><td>208,431</td></tr><tr><td> Apartment Homes Owned</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total apartment homes owned at December 31</td><td>65,867</td><td>70,339</td><td>74,875</td><td>78,855</td><td>76,244</td></tr><tr><td>Weighted average number of apartment homes owned during the year</td><td>69,662</td><td>73,731</td><td>76,069</td><td>76,873</td><td>74,550</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended December 31, (dollars in thousands)</td><td colspan="3">Year Ended December 31, (per home)</td></tr><tr><td></td><td> 2007</td><td> 2006</td><td>% Change</td><td> 2007</td><td> 2006</td><td>% Change</td></tr><tr><td>Turnover capital expenditures</td><td>$13,362</td><td>$14,214</td><td>-6.0%</td><td>$194</td><td>$197</td><td>-1.5%</td></tr><tr><td>Asset preservation expenditures</td><td>31,071</td><td>20,409</td><td>52.2%</td><td>452</td><td>283</td><td>59.7%</td></tr><tr><td>Total recurring capital expenditures</td><td>44,433</td><td>34,623</td><td>28.3%</td><td>646</td><td>480</td><td>34.6%</td></tr><tr><td>Revenue enhancing improvements</td><td>78,209</td><td>144,102</td><td>-45.7%</td><td>1,138</td><td>2,002</td><td>-43.2%</td></tr><tr><td>Major renovations</td><td>71,785</td><td>36,996</td><td>94.0%</td><td>1,045</td><td>514</td><td>103.3%</td></tr><tr><td>Total capital expenditures</td><td>$194,427</td><td>$215,721</td><td>-9.9%</td><td>$2,829</td><td>$2,996</td><td>-5.6%</td></tr><tr><td>Repair and maintenance expense</td><td>$42,518</td><td>$43,498</td><td>-2.3%</td><td>$619</td><td>$604</td><td>2.5%</td></tr></table>

Question: What will Secured debt be like in 2007 Ended December 31 if it develops with the same increasing rate as in 2006 Ended December 31? (in thousand)
Answer: 1253559.7568