McKESSON CORPORATION FINANCIAL REVIEW (Continued)
## Table 0 ##
Revenues increased 10% to $122.7 billion in 2012 and 3% to $112.1 billion in 2011.
The increase in revenues in each year primarily reflects market growth in our Distribution Solutions segment, which accounted for approximately 97% of our consolidated revenues, and our acquisition of US Oncology.
Direct distribution and services revenues increased in 2012 compared to 2011 primarily due to market growth, which includes growing drug utilization and price increases, and from our acquisition of US Oncology.
These increases were partially offset by price deflation associated with brand to generic drug conversions.
Direct distribution and services revenues increased in 2011 compared to 2010 primarily due to market growth, the effect of a shift of revenues from sales to customers’ warehouses to direct store delivery, the lapping of which was completed in the third quarter of 2011, and due to our acquisition of US Oncology.
These increases were partially offset by a decline in demand associated with the flu season and the impact of price deflation associated with brand to generic drug conversions.
Sales to customers’ warehouses for 2012 increased compared to 2011 primarily due to a new customer and new business with existing customers.
Sales to customers’ warehouses for 2011 decreased compared to 2010 primarily reflecting reduced revenues associated with existing customers, the effect of a shift of revenues to direct store delivery, the lapping of which was completed in the third quarter of 2011, and the impact of price deflation associated with brand to generic drug conversions.
Sales to retail customers’ warehouses represent large volume sales of pharmaceuticals primarily to a limited number of large self-warehousing retail chain customers whereby we order bulk product from the manufacturer, receive and process the product through our central distribution facility and subsequently deliver the bulk product (generally in the same form as received from the manufacturer) directly to our customers’ warehouses.
This distribution method is typically not marketed or sold by the Company as a stand-alone service; rather, it is offered as an additional distribution method for our large retail chain customers that have an internal self-warehousing distribution network.
Sales to customers’ warehouses provide a benefit to these customers because they can utilize the Company as one source for both their direct-to-store business and their warehouse business.
We generally have significantly lower gross profit margins on sales to customers’ warehouses as we pass much of the efficiency of this low cost-to-serve model on to the customer.
These sales do, however, contribute to our gross profit dollars.
McKESSON CORPORATION FINANCIAL NOTES (Continued) Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows: $180 million, $64 million, $64 million, $62 million and $62 million for 2020 to 2024 and $327 million for 2025 through 2029.
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service.
Expected contributions to be made for our pension plans are $146 million for 2020.
Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows:
## Table 1 ##
(1) This assumption is no longer needed in actuarial valuations as U. S.  plans are frozen or have fixed benefits for the remaining active participants.
Our defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of our plans.
For March 31, 2019, our U. S.  defined benefit liabilities are valued using a weighted average discount rate of 3.65%, which represents a decrease of 4 basis points from our 2018 weighted-average discount rate of 3.69%.
Our non-U.
S.  defined benefit pension plan liabilities are valued using a weighted-average discount rate of 2.13%, which represents a decrease of 22 basis points from our 2018 weighted average discount rate of 2.35%.
Plan Assets Investment Strategy: The overall objective for U.  S.  pension plan assets has been to generate long-term investment returns consistent with capital preservation and prudent investment practices, with a diversification of asset types and investment strategies.
Periodic adjustments were made to provide liquidity for benefit payments and to rebalance plan assets to their target allocations.
In September 2018, a new investment allocation strategy was put in place to protect the funded status of the U. S.  plan assets subsequent to Board approval of U. S.  pension plan termination.
The target allocation for U. S.  plan assets at March 31, 2019 is 100% fixed income investments including cash and cash equivalents.
The target allocations for U. S.  plan assets at March 31, 2018 were 26% equity investments, 70% fixed income investments including cash and cash equivalents and 4% real estate.
Equity investments include common stock, preferred stock, and equity commingled funds.
Fixed income investments include corporate bonds, government securities, mortgage-backed securities, asset-backed securities, other directly held fixed income investments, and fixed income commingled funds.
The real estate investments are in a commingled real estate fund.
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009 Net revenues increased $207.5 million, or 24.2%, to $1,063.9 million in 2010 from $856.4 million in 2009.
Net revenues by product category are summarized below:
## Table 2 ##
Net sales increased $201.5 million, or 24.5%, to $1,024.6 million in 2010 from $823.1 million in 2009 as noted in the table above.
The increase in net sales primarily reflects: ?
$88.9 million, or 56.8%, increase in direct to consumer sales, which includes 19 additional stores in 2010; and ?
unit growth driven by increased distribution and new offerings in multiple product categories, most significantly in our training, base layer, mountain, golf and underwear categories; partially offset by ?
$9.0 million decrease in footwear sales driven primarily by a decline in running and training footwear sales.
License revenues increased $6.1 million, or 18.1%, to $39.4 million in 2010 from $33.3 million in 2009.
This increase in license revenues was primarily a result of increased sales by our licensees due to increased distribution and continued unit volume growth.
We have developed our own headwear and bags, and beginning in 2011, these products are being sold by us rather than by one of our licensees.
Gross profit increased $120.4 million to $530.5 million in 2010 from $410.1 million in 2009.
Gross profit as a percentage of net revenues, or gross margin, increased 200 basis points to 49.9% in 2010 compared to 47.9% in 2009.
The increase in gross margin percentage was primarily driven by the following: ?
approximate 100 basis point increase driven by increased direct to consumer higher margin sales; ?
approximate 50 basis point increase driven by decreased sales markdowns and returns, primarily due to improved sell-through rates at retail; and ?
approximate 50 basis point increase driven primarily by liquidation sales and related inventory reserve reversals.
The current year period benefited from reversals of inventory reserves established in the prior year relative to certain cleated footwear, sport specific apparel and gloves.
These products have historically been more difficult to liquidate at favorable prices.
Selling, general and administrative expenses increased $93.3 million to $418.2 million in 2010 from $324.9 million in 2009.
As a percentage of net revenues, selling, general and administrative expenses increased to 39.3% in 2010 from 37.9% in 2009.
These changes were primarily attributable to the following: ?
Marketing costs increased $19.3 million to $128.2 million in 2010 from $108.9 million in 2009 primarily due to an increase in sponsorship of events and collegiate and professional teams and athletes, increased television and digital campaign costs, including media campaigns for specific customers and additional personnel costs.
In addition, we incurred increased expenses for our performance incentive plan as compared to the prior year.
As a percentage of net revenues, marketing costs decreased to 12.0% in 2010 from 12.7% in 2009 primarily due to decreased marketing costs for specific customers.

<table><tr><td></td><td colspan="3"> Years Ended March 31,</td><td colspan="2"> Change</td></tr><tr><td> <i>(Dollars in millions)</i> </td><td> 2012</td><td> 2011</td><td> 2010</td><td> 2012</td><td> 2011</td></tr><tr><td>Distribution Solutions</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Direct distribution & services</td><td>$85,523</td><td>$77,554</td><td>$72,210</td><td>10%</td><td>7%</td></tr><tr><td>Sales to customers’ warehouses</td><td>20,453</td><td>18,631</td><td>21,435</td><td>10</td><td>-13</td></tr><tr><td>Total U.S. pharmaceutical distribution & services</td><td>105,976</td><td>96,185</td><td>93,645</td><td>10</td><td>3</td></tr><tr><td>Canada pharmaceutical distribution & services</td><td>10,303</td><td>9,784</td><td>9,072</td><td>5</td><td>8</td></tr><tr><td>Medical-Surgical distribution & services</td><td>3,145</td><td>2,920</td><td>2,861</td><td>8</td><td>2</td></tr><tr><td>Total Distribution Solutions</td><td>119,424</td><td>108,889</td><td>105,578</td><td>10</td><td>3</td></tr><tr><td>Technology Solutions</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Services</td><td>2,594</td><td>2,483</td><td>2,439</td><td>4</td><td>2</td></tr><tr><td>Software & software systems</td><td>596</td><td>590</td><td>571</td><td>1</td><td>3</td></tr><tr><td>Hardware</td><td>120</td><td>122</td><td>114</td><td>-2</td><td>7</td></tr><tr><td>Total Technology Solutions</td><td>3,310</td><td>3,195</td><td>3,124</td><td>4</td><td>2</td></tr><tr><td>Total Revenues</td><td>$122,734</td><td>$112,084</td><td>$108,702</td><td>10</td><td>3</td></tr></table>
<table><tr><td></td><td colspan="3">U.S. Plans Years Ended March 31,</td><td colspan="3">Non-U.S. Plans Years Ended March 31,</td></tr><tr><td></td><td>2019</td><td>2018</td><td>2017</td><td>2019</td><td>2018</td><td>2017</td></tr><tr><td>Net periodic pension expense</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discount rates</td><td>3.83%</td><td>3.55%</td><td>3.40%</td><td>2.35%</td><td>2.34%</td><td>2.72%</td></tr><tr><td>Rate of increase in compensation</td><td>N/A -1</td><td>4.00</td><td>4.00</td><td>3.13</td><td>2.72</td><td>2.76</td></tr><tr><td>Expected long-term rate of return on plan assets</td><td>5.25</td><td>6.25</td><td>6.25</td><td>3.71</td><td>4.03</td><td>4.51</td></tr><tr><td>Benefit obligation</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discount rates</td><td>3.65%</td><td>3.69%</td><td>3.39%</td><td>2.13%</td><td>2.35%</td><td>2.35%</td></tr><tr><td>Rate of increase in compensation</td><td>N/A -1</td><td>N/A -1</td><td>4.00</td><td>3.18</td><td>2.59</td><td>3.18</td></tr></table>
<table><tr><td></td><td>Year Ended December 31,</td></tr><tr><td><i>(In thousands)</i></td><td>2010</td><td>2009</td><td>$ Change</td><td>% Change</td></tr><tr><td>Apparel</td><td>$853,493</td><td>$651,779</td><td>$201,714</td><td>30.9%</td></tr><tr><td>Footwear</td><td>127,175</td><td>136,224</td><td>-9,049</td><td>-6.6</td></tr><tr><td>Accessories</td><td>43,882</td><td>35,077</td><td>8,805</td><td>25.1</td></tr><tr><td>Total net sales</td><td>1,024,550</td><td>823,080</td><td>201,470</td><td>24.5</td></tr><tr><td>License revenues</td><td>39,377</td><td>33,331</td><td>6,046</td><td>18.1</td></tr><tr><td>Total net revenues</td><td>$1,063,927</td><td>$856,411</td><td>$207,516</td><td>24.2%</td></tr></table>

Question: In the year with largest amount of Services, what's the increasing rate of Hardware ?
Answer: -0.01639