As of December 31, 2017, we had $1.238 billion of gross unrecognized tax benefits, of which a net $1.150 billion, if recognized, would affect our effective tax rate.
As of December 31, 2016, we had $1.095 billion of gross unrecognized tax benefits, of which a net $1.006 billion, if recognized, would affect our effective tax rate.
As of December 31, 2015, we had $1.056 billion of gross unrecognized tax benefits, of which a net $900 million, if recognized, would affect our effective tax rate.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
## Table 0 ##
We are subject to U. S.  Federal income tax as well as income tax of multiple state and foreign jurisdictions.
We have concluded all U. S.  federal income tax matters through 2000, all foreign income tax matters through 2002 and substantially all material state and local income tax matters through 2005.
We have received Notices of Deficiency from the Internal Revenue Service (IRS) reflecting proposed audit adjustments for Guidant Corporation for its 2001 through 2006 tax years and Boston Scientific Corporation for its 2006 and 2007 tax years.
The total incremental tax liability asserted by the IRS for the applicable periods is $1.162 billion plus interest.
The primary issue in dispute for all years is the transfer pricing associated with the technology license agreements between domestic and foreign subsidiaries of Guidant.
In addition, the IRS has proposed adjustments in connection with the financial terms of our Transaction Agreement with Abbott Laboratories pertaining to the sale of Guidant's vascular intervention business to Abbott Laboratories in April 2006.
During 2014, we received a Revenue Agent Report from the IRS reflecting significant proposed audit adjustments to our 2008, 2009 and 2010 tax years based upon the same transfer pricing methodologies that the IRS applied to our 2001 through 2007 tax years.
We do not agree with the transfer pricing methodologies applied by the IRS or its resulting assessment.
We have filed petitions with the U. S.  Tax Court contesting the Notices of Deficiency for the 2001 through 2007 tax years in challenge and submitted a letter to the IRS Office of Appeals protesting the Revenue Agent Report for the 2008 through 2010 tax years and requesting an administrative appeal hearing.
The issues in dispute were scheduled to be heard in U. S.  Tax Court in July 2016.
On July 19, 2016, we entered into a Stipulation of Settled Issues with the IRS intended to resolve all of the aforementioned transfer pricing issues, as well as the issues related to our transaction with Abbott Laboratories, for the 2001 through 2007 tax years.
The Stipulation of Settled Issues is contingent upon the IRS Office of Appeals applying the same basis of settlement to all transfer pricing issues for the Company’s 2008, 2009 and 2010 tax years as well as review by the United States Congress Joint Committee on Taxation.
In October 2016, we reached an agreement in principle with IRS Office of Appeals as to the resolution of transfer pricing issues in 2008, 2009 and 2010 tax years, subject to additional calculations of tax as well as documentation to memorialize our agreement.
In the event that the conditions in the Stipulation of Settled Items are satisfied, we expect to make net tax payments of approximately $275 million, plus interest through the date of payment with respect to the settled issues.
If finalized, payments related to the resolution are expected in the next six months.
We believe that our income tax reserves associated with these matters are adequate as of December 31, 2017 and we do not expect to recognize any additional charges related to resolution of this controversy.
However, the final resolution of these issues is contingent and if the Stipulation of Settled Issues is not finalized, it could have a material impact on our financial condition, results of operations, or cash flows.
We recognize interest and penalties related to income taxes as a component of income tax expense.
We had $655 million accrued for gross interest and penalties as of December 31, 2017 and $572 million as of December 31, 2016.
The increase in gross interest and penalties of $83 million was recognized in our consolidated statements of operations.
We recognized net tax expense related to interest and penalties of $154 million in 2017, $46 million in 2016 and $37 million in 2015.
The increase in our net tax expense related to interest and penalties as of December 31, 2017, as compared to December 31, 2016, is primarily attributable to remeasuring the future tax benefit of our accrued interest as a result of the TCJA.
segment includes AWE and our share of earnings for our investment in ULA, which provides expendable launch services to the U. S.  Government.
Space Systems’ operating results included the following (in millions):
## Table 1 ##
2016 compared to 2015 Space Systems’ net sales in 2016 increased $304 million, or 3%, compared to 2015.
The increase was attributable to net sales of approximately $410 million from AWE following the consolidation of this business in the third quarter of 2016; and approximately $150 million for commercial space transportation programs due to increased launch-related activities; and approximately $70 million of higher net sales for various programs (primarily Fleet Ballistic Missiles) due to increased volume.
These increases were partially offset by a decrease in net sales of approximately $340 million for government satellite programs due to decreased volume (primarily SBIRS and MUOS) and the wind-down or completion of mission solutions programs.
Space Systems’ operating profit in 2016 increased $118 million, or 10%, compared to 2015.
The increase was primarily attributable to a non-cash, pre-tax gain of approximately $127 million related to the consolidation of AWE; and approximately $80 million of increased equity earnings from joint ventures (primarily ULA).
These increases were partially offset by a decrease of approximately $105 million for government satellite programs due to lower risk retirements (primarily SBIRS, MUOS and mission solutions programs) and decreased volume.
Adjustments not related to volume, including net profit booking rate adjustments, were approximately $185 million lower in 2016 compared to 2015.2015 compared to 2014 Space Systems’ net sales in 2015 decreased $97 million, or 1%, compared to 2014.
The decrease was attributable to approximately $335 million lower net sales for government satellite programs due to decreased volume (primarily AEHF) and the wind-down or completion of mission solutions programs; and approximately $55 million for strategic missile and defense systems due to lower volume.
These decreases were partially offset by higher net sales of approximately $235 million for businesses acquired in 2014; and approximately $75 million for the Orion program due to increased volume.
Space Systems’ operating profit in 2015 decreased $16 million, or 1%, compared to 2014.
Operating profit increased approximately $85 million for government satellite programs due primarily to increased risk retirements.
This increase was offset by lower operating profit of approximately $65 million for commercial satellite programs due to performance matters on certain programs; and approximately $35 million due to decreased equity earnings in joint ventures.
Adjustments not related to volume, including net profit booking rate adjustments and other matters, were approximately $105 million higher in 2015 compared to 2014.
Equity earnings Total equity earnings recognized by Space Systems (primarily ULA) represented approximately $325 million, $245 million and $280 million, or 25%, 21% and 24% of this business segment’s operating profit during 2016, 2015 and 2014.
Backlog Backlog increased in 2016 compared to 2015 primarily due to the addition of AWE’s backlog.
Backlog decreased in 2015 compared to 2014 primarily due to lower orders for government satellite programs and the Orion program and higher sales on the Orion program.
Trends We expect Space Systems’ 2017 net sales to decrease in the mid-single digit percentage range as compared to 2016, driven by program lifecycles on government satellite programs, partially offset by the recognition of AWE net sales for a full year in 2017 versus a partial year in 2016 following the consolidation of AWE in the third quarter of 2016.
Operating profit
(2) The following table shows the amounts of other venture capital investments held by the following consolidated funds and amounts attributable to SVBFG for each fund at December 31, 2014 , 2013 and 2012 :
## Table 2 ##
(3) Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds.
At December 31, 2014 , the amount primarily includes total unrealized gains of $75 million in one public company, FireEye.
The extent to which any unrealized gains (or losses) will become realized is subject to a variety of factors, including, among other things, changes in prevailing market prices and the timing of any sales or distribution of securities and may also be constrained by lock-up agreements.
None of the FireEye related investments currently are subject to a lock-up agreement.
Loans The following table details the composition of the loan portfolio, net of unearned income, as of the five most recent year-ends:
## Table 3 ##
(1) Because of the diverse nature of energy and resource innovation products and services, for our loan-related reporting purposes, ERI-related loans are reported under our hardware, software and internet, life science & healthcare and other commercial loan categories, as applicable.
(2) Included in our premium wine portfolio are gross construction loans of $112 million , $112 million , $148 million , $111 million and $119 million at December 31, 2014 , 2013 , 2012 , 2011 and 2010 , respectively.
(3) Consumer loans secured by real estate at December 31, 2014 , 2013 , 2012 , 2011 and 2010 were comprised of the following:

<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>(in millions)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Beginning Balance</td><td>$1,095</td><td>$1,056</td><td>$1,047</td></tr><tr><td>Additions based on positions related to the current year</td><td>134</td><td>47</td><td>32</td></tr><tr><td>Additions based on positions related to prior years</td><td>16</td><td>14</td><td>38</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-3</td><td>-17</td><td>-36</td></tr><tr><td>Settlements with taxing authorities</td><td>-2</td><td>-3</td><td>-18</td></tr><tr><td>Statute of limitation expirations</td><td>-2</td><td>-2</td><td>-7</td></tr><tr><td>Ending Balance</td><td>$1,238</td><td>$1,095</td><td>$1,056</td></tr></table>
<table><tr><td></td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Net sales</td><td>$9,409</td><td>$9,105</td><td>$9,202</td></tr><tr><td>Operating profit</td><td>1,289</td><td>1,171</td><td>1,187</td></tr><tr><td>Operating margin</td><td>13.7%</td><td>12.9%</td><td>12.9%</td></tr><tr><td>Backlog atyear-end</td><td>$18,900</td><td>$17,400</td><td>$20,300</td></tr></table>
<table><tr><td></td><td colspan="6">December 31,</td></tr><tr><td></td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td>(Dollars in thousands)</td><td>Carrying value(as reported)</td><td>Amount attributableto SVBFG</td><td>Carrying value(as reported)</td><td>Amount attributableto SVBFG</td><td>Carrying value(as reported)</td><td>Amount attributableto SVBFG</td></tr><tr><td>Silicon Valley BancVentures, LP</td><td>$3,291</td><td>$352</td><td>$6,564</td><td>$702</td><td>$43,493</td><td>$4,652</td></tr><tr><td>SVB Capital Partners II, LP</td><td>20,481</td><td>1,040</td><td>22,684</td><td>1,152</td><td>79,761</td><td>4,051</td></tr><tr><td>Capital Partners III, LP</td><td>41,055</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>SVB Capital Shanghai Yangpu Venture Capital Fund</td><td>6,377</td><td>431</td><td>3,591</td><td>243</td><td>3,837</td><td>259</td></tr><tr><td>Total other venture capital investments</td><td>$71,204</td><td>$1,823</td><td>$32,839</td><td>$2,097</td><td>$127,091</td><td>$8,962</td></tr></table>
<table><tr><td></td><td colspan="5">December 31,</td></tr><tr><td>(Dollars in thousands)</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Commercial loans:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Software and internet -1</td><td>$4,954,676</td><td>$4,102,636</td><td>$3,261,489</td><td>$2,492,849</td><td>$1,820,680</td></tr><tr><td>Hardware -1</td><td>1,131,006</td><td>1,213,032</td><td>1,118,370</td><td>952,303</td><td>641,052</td></tr><tr><td>Private equity/venture capital</td><td>4,582,906</td><td>2,386,054</td><td>1,732,699</td><td>1,117,419</td><td>1,036,201</td></tr><tr><td>Life science & healthcare -1</td><td>1,289,904</td><td>1,170,220</td><td>1,066,199</td><td>863,737</td><td>575,944</td></tr><tr><td>Premium wine</td><td>187,568</td><td>149,841</td><td>143,511</td><td>130,245</td><td>144,972</td></tr><tr><td>Other -1</td><td>234,551</td><td>288,904</td><td>315,453</td><td>342,147</td><td>375,928</td></tr><tr><td>Total commercial loans</td><td>12,380,611</td><td>9,310,687</td><td>7,637,721</td><td>5,898,700</td><td>4,594,777</td></tr><tr><td>Real estate secured loans:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Premium wine -2</td><td>606,753</td><td>514,993</td><td>413,513</td><td>345,988</td><td>312,255</td></tr><tr><td>Consumer loans -3</td><td>1,118,115</td><td>873,255</td><td>685,300</td><td>534,001</td><td>361,704</td></tr><tr><td>Other</td><td>39,651</td><td>30,743</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total real estate secured loans</td><td>1,764,519</td><td>1,418,991</td><td>1,098,813</td><td>879,989</td><td>673,959</td></tr><tr><td>Construction loans -4</td><td>78,626</td><td>76,997</td><td>65,742</td><td>30,256</td><td>60,178</td></tr><tr><td>Consumer loans</td><td>160,520</td><td>99,711</td><td>144,657</td><td>161,137</td><td>192,823</td></tr><tr><td>Total loans, net of unearned income -5(6)</td><td>$14,384,276</td><td>$10,906,386</td><td>$8,946,933</td><td>$6,970,082</td><td>$5,521,737</td></tr></table>

Question: what is the growth rate of net sales from 2014 to 2015?
Answer: -0.01054