CITIZENS FINANCIAL GROUP, INC.
SELECTED STATISTICAL INFORMATION
## Table 0 ##
The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands):
## Table 1 ##
Goodwill of $203.8 million arising from the acquisition, included in the Asia-Pacific segment, was attributable to expected growth opportunities in Australia and New Zealand, as well as growth opportunities and operating synergies in integrated payments in our existing Asia-Pacific and North America markets.
Goodwill associated with this acquisition is not deductible for income tax purposes.
The customer-related intangible assets have an estimated amortization period of 15 years.
The acquired technology has an estimated amortization period of 15 years.
The trade name has an estimated amortization period of 5 years.
NOTE 3 — SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS Funds settlement refers to the process of transferring funds for sales and credits between card issuers and merchants.
For transactions processed on our systems, we use our internal network to provide funding instructions to financial institutions that in turn fund the merchants.
We process funds settlement under two models, a sponsorship model and a direct membership model.
Under the sponsorship model, we are designated as a Merchant Service Provider by MasterCard and an Independent Sales Organization by Visa, which means that member clearing banks (“Member”) sponsor us and require our adherence to the standards of the payment networks.
In certain markets, we have sponsorship or depository and clearing agreements with financial institution sponsors.
These agreements allow us to route transactions under the Members’ control and identification numbers to clear credit card transactions through MasterCard and Visa.
In this model, the standards of the payment networks restrict us from performing funds settlement or accessing merchant settlement funds, and, instead, require that these funds be in the possession of the Member until the merchant is funded.
Under the direct membership model, we are members in various payment networks, allowing us to process and fund transactions without third-party sponsorship.
In this model, we route and clear transactions directly through the card brand’s network and are not restricted from performing funds settlement.
Otherwise, we process these transactions similarly to how we process transactions in the sponsorship model.
We are required to adhere to the standards of the payment networks in which we are direct members.
We maintain relationships with financial institutions, which may also serve as our Member sponsors for other card brands or in other markets, to assist with funds settlement.
Timing differences, interchange fees, Merchant Reserves and exception items cause differences between the amount received from the payment networks and the amount funded to the merchants.
These intermediary balances arising in our settlement process for direct merchants are reflected as settlement processing assets and obligations on our consolidated balance sheets.
Settlement processing assets and obligations include the components outlined below: ?
Interchange reimbursement.
Our receivable from merchants for the portion of the discount fee related to reimbursement of the interchange fee.
x The Executive Benefits business offers corporate-owned universal and variable universal life insurance (“COLI”) and bankowned universal and variable universal life insurance (“BOLI”) to small to mid-sized banks and mid to large-sized corporations, mostly through executive benefit brokers.11 The Group Protection segment focuses on offering group term life, disability income and dental insurance primarily in the small to mid-sized employer marketplace for their eligible employees.
Employer Markets - Retirement Products The Defined Contribution business is the largest business in this segment and focuses on 403(b) plans and 401(k) plans.
Lincoln has a strong historical presence in the 403(b) space where assets account for about 61% of total assets under management in this segment as of December 31, 2007.
The 401(k) business accounts for 51% of our new deposits as of December 31, 2007.
The Retirement Products segment’s deposits (in millions) were as follows:
## Table 2 ##
Retirement Products - Defined Contribution Products Employer Markets currently offers four primary products to the employer-sponsored market: Lincoln American Legacy RetirementSM, LINCOLN DIRECTORSM, LINCOLN ALLIANCE?
and Multi-Fund?.
Lincoln American Legacy RetirementSM , LINCOLN DIRECTORSM and Multi-Fund?
products are group variable annuities.
LINCOLN ALLIANCE?
is a mutual fund-based product.
These products cover both the 403(b) and 401(k) marketplace.
Both 403(b) and 401(k) plans are tax-deferred, defined contribution plans offered to employees of an entity to enable them to save for retirement.
The 403(b) plans are available to employees of educational institutions and certain non-profit entities, while 401(k) plans are generally available to employees of forprofit entities.
The investment options for our annuities encompass the spectrum of asset classes with varying levels of risk and include both equity and fixed income.
As of December 31, 2007, healthcare clients accounted for 43% of account values for these products.
The Lincoln American Legacy RetirementSM variable annuity, launched in the third quarter of 2006, offers 51 investment options with 10 fund families, 20 of which are American Funds?
options.
This product is focused on the micro to small corporate 401(k) market.
LALR account values were $49 million as of December 31, 2007.
LINCOLN DIRECTORSM is a defined contribution retirement plan solution available to businesses of all sizes, but focused on micro- to small-sized corporations, generally with five to 200 lives.
Funded through a Lincoln National Life Insurance Company (“LNL”) group variable annuity contract, LINCOLN DIRECTORSM offers participants 60 investment options from 15 fund families.
In New York, Lincoln Life & Annuity Company of New York (“LLANY”) underwrites the annuity contracts, and these contracts offer 57 investment options from 16 fund families.
LINCOLN DIRECTORSM has the option of being serviced through a third-party administrator or fully serviced by Lincoln.
The Employer Markets Defined Contribution segment earns advisory fees, investment income, surrender charges and recordkeeping fees from this product.
Account values for LINCOLN DIRECTORSM were $7.7 billion, $7.5 billion and $6.5 billion as of December 31, 2007, 2006 and 2005, respectively.
Deposits for LINCOLN DIRECTORSM were $1.5 billion, $1.7 billion and $1.6 billion as of December 31, 2007, 2006 and 2005, respectively.
The LINCOLN ALLIANCE?
program, with an open architecture platform, bundles our traditional fixed annuity products with the employer’s choice of retail mutual funds, along with recordkeeping and customized employee education components.
We earn fees for the services we provide to mutual fund accounts and investment margins on fixed annuities of LINCOLN ALLIANCE?
program accounts.
The retail mutual funds associated with this program are not included in the separate accounts reported on our Consolidated Balance Sheets.
This program is customized for each employer.
The target market is primarily education and

['

As of and for the Year Ended December 31,
(dollars in millions)	2014	2013	2012	2011	2010
Gross Charge-offs:
Commercial	-$31	-$72	-$127	-$170	-$267
Commercial real estate	-12	-36	-129	-208	-420
Leases	—	—	-1	—	-1
Total commercial	-43	-108	-257	-378	-688
Residential mortgages	-36	-54	-85	-98	-121
Home equity loans	-55	-77	-121	-124	-131
Home equity lines of credit	-80	-102	-118	-106	-112
Home equity loans serviced by others-2	-55	-119	-220	-300	-443
Home equity lines of credit serviced by others-2	-12	-27	-48	-66	-97
Automobile	-41	-19	-29	-47	-94
Student	-54	-74	-88	-97	-118
Credit cards	-64	-68	-68	-85	-176
Other retail	-53	-55	-76	-85	-111
Total retail	-450	-595	-853	-1,008	-1,403
Total gross charge-offs	-$493	-$703	-$1,110	-$1,386	-$2,091
Gross Recoveries:
Commercial	$35	$46	$64	$42	$33
Commercial real estate	23	40	47	47	23
Leases	—	1	2	3	1
Total commercial	58	87	113	92	57
Residential mortgages	11	10	16	15	11
Home equity loans	24	26	27	27	32
Home equity lines of credit	15	19	9	9	5
Home equity loans serviced by others-2	21	23	22	18	16
Home equity lines of credit serviced by others-2	5	5	5	4	4
Automobile	20	12	21	35	46
Student	9	13	14	12	57
Credit cards	7	7	8	9	14
Other retail	—	—	—	—	—
Total retail	112	115	122	129	185
Total gross recoveries	$170	$202	$235	$221	$242
Net (Charge-offs)/Recoveries:
Commercial	$4	-$26	-$63	-$128	-$234
Commercial real estate	11	4	-82	-161	-397
Leases	—	1	1	3	—
Total commercial	15	-21	-144	-286	-631
Residential mortgages	-25	-44	-69	-83	-110
Home equity loans	-31	-51	-94	-97	-99
Home equity lines of credit	-65	-83	-109	-97	-107
Home equity loans serviced by others-2	-34	-96	-198	-282	-427
Home equity lines of credit serviced by others-2	-7	-22	-43	-62	-93
Automobile	-21	-7	-8	-12	-48
Student	-45	-61	-74	-85	-61
Credit cards	-57	-61	-60	-76	-162
Other retail	-53	-55	-76	-85	-111
Total retail	-338	-480	-731	-879	-1,218
Total net (charge-offs)/recoveries	-$323	-$501	-$875	-$1,165	-$1,849
Ratio of net charge-offs to average loans and leases	-0.36%	-0.59%	-1.01%	-1.35%	-2.04%

', '

Cash	$45,826
Customer-related intangible assets	42,721
Acquired technology	27,954
Trade name	2,901
Other assets	2,337
Deferred income tax assets (liabilities)	-9,788
Other liabilities	-49,797
Total identifiable net assets	62,154
Goodwill	203,828
Total purchase consideration	$265,982

', '

For the Years Ended December 31,
2007	2006	2005
Variable portion of variable annuity	$2,355	$2,525	$2,254
Fixed portion of variable annuity	351	441	520
Total variable annuity	2,706	2,966	2,774
Fixed annuity	754	506	563
Alliance Mutual Fund	2,090	1,113	1,066
Total annuity and Alliance	5,550	4,585	4,403
COLI and BOLI	303	267	210
Total deposits	$5,853	$4,852	$4,613

']

Question: In the year with largest amount of Commercial of Gross Recoveries, what's the increasing rate of Total gross recoveries?
Answer: 0.06335