Table of Contents related to Mac OS X Version 10.6 Snow Leopard and excluded from R&D expense, while R&D expense for 2007 excluded $75 million of capitalized software development costs related to Mac OS X Leopard and iPhone.
Although total R&D expense increased 42% during 2008, it remained relatively flat as a percentage of net sales given the 35% increase in revenue during 2008.
The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy.
As such, the Company expects to increase spending in R&D to remain competitive.
Expenditures for R&D increased 10% or $70 million to $782 million in 2007 compared to 2006.
The increases in R&D expense were due primarily to an increase in R&D headcount in 2007 to support expanded R&D activities, partially offset by one less week of expenses in the first quarter of 2007 and the capitalized software development costs mentioned above.
Selling, General, and Administrative Expense (“SG&A”) Expenditures for SG&A increased $798 million or 27% to $3.8 billion in 2008 compared to 2007.
These increases are due primarily to higher stock-based compensation expenses, higher variable selling expenses resulting from the significant year-over-year increase in total net sales and the Company’s continued expansion of its Retail segment in both domestic and international markets.
In addition, the Company incurred higher spending on marketing and advertising during 2008 compared to 2007.
Expenditures for SG&A increased $530 million or 22% during 2007 compared to 2006.
The increase was due primarily to higher direct and indirect channel variable selling expenses resulting from the significant year-over-year increase in total net sales in 2007, the Company’s continued expansion of its Retail segment in both domestic and international markets, and higher spending on marketing and advertising, partially offset by one less week of expenses in the first quarter of 2007.
Other Income and Expense Other income and expense for the three fiscal years ended September 27, 2008, are as follows (in millions):
## Table 0 ##
Total other income and expense increased $21 million to $620 million during 2008 as compared to $599 million and $365 million in 2007 and 2006, respectively.
While the Company’s cash, cash equivalents and short-term investment balances increased by 59% in 2008, other income and expense increased only 4% due to the decline in the weighted average interest rate earned of 3.44%.
The overall increase in other income and expense is attributable to the Company’s higher cash and short-term investment balances, which more than offset the decline in interest rates during 2008 as compared to 2007.
The weighted average interest rate earned by the Company on its cash, cash equivalents, and short-term investments was 5.27% and 4.58% during 2007 and 2006, respectively.
During 2008, 2007 and 2006, the Company had no debt outstanding and accordingly did not incur any related interest expense.
Provision for Income Taxes The Company’s effective tax rates were 30% for the years ended September 27, 2008 and September 29, 2007, and 29% for the year ended September 30, 2006.
The Company’s effective rates differ from the statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings for which no U. S.  taxes are provided because such earnings are intended to be indefinitely reinvested outside the U. S.  As of September 27, 2008, the Company had deferred tax assets arising from deductible temporary differences, tax losses, and tax credits of $2.1 billion before being offset against certain deferred liabilities for presentation on the Company’s balance sheet.
Management believes it is more likely than not that forecasted income, including
SILICON VALLEY BANCSHARES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 23.
Regulatory Matters (Continued) The Company and the Bank are subject to capital adequacy guidelines issued by the Federal Reserve Board.
Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material impact on the Company’s and/or the Bank’s financial condition and results of operations.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s balance sheet items, as well as certain off-balance sheet items, as calculated under regulatory accounting practices.
The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Under these capital guidelines, the minimum total risk-based capital ratio and Tier 1 risk-based capital ratio requirements are 10.0% and 6.0%, respectively, of risk-weighted assets and certain off-balance sheet items for a well capitalized depository institution.
The Federal Reserve Board has also established minimum capital leverage ratio guidelines for state member banks.
The ratio is determined using Tier 1 capital divided by quarterly average total assets.
The guidelines require a minimum of 5.0% for a well-capitalized depository institution.
The following table presents the capital ratios for the Company and the bank, as compared to the minimum regulatory capital requirements for an adequately capitalized depository institution, as of December 31, 2003 and 2002:
## Table 1 ##
SILICON VALLEY BANCSHARES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 24.
Stockholders’ Rights Plan On October 22, 1998, the Company’s board of directors (the “Board”) approved and adopted a stockholders’ rights plan (the “Rights Plan”) to, among other things, protect the Company’s stockholders from coercive takeover tactics.
On November 6, 2003, the Board approved and adopted Amendment No.1 to the Rights Plan to increase from 10% to 15% the minimum percentage of common shares that any person shall beneficially own to qualify as an “Acquiring Person” for purposes of triggering the stockholders’ rights under the Rights Plan.
On January 29, 2004, the Board approved and adopted an amended and restated Rights Plan (the “Amended and Restated Rights Plan”), which supercedes and replaces in entirety the Rights Plan.
The following summary of the Rights and the Amended and Restated Rights Plan is a general description only and is subject to the detailed terms and conditions of the Amended and Restated Rights Plan, a copy of which is attached as Exhibit 4.20 to the Company’s
SVB FINANCIAL GROUP AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Investments in Entities that Calculate Net Asset Value Per Share FASB guidance over certain fund investments requires that we disclose the fair value of funds, significant investment strategies of the investees, redemption features of the investees, restrictions on the ability to sell investments, estimate of the period of time over which the underlying assets are expected to be liquidated by the investee, and unfunded commitments related to the investments.
Our investments in debt funds and venture capital and private equity fund investments generally cannot be redeemed.
Alternatively, we expect distributions, if any, to be received primarily through IPOs and M&A activity of the underlying assets of the fund.
We currently do not have any plans to sell any of these fund investments.
If we decide to sell these investments in the future, the investee fund’s management must approve of the buyer before the sale of the investments can be completed.
The fair values of the fund investments have been estimated using the net asset value per share of the investments, adjusted for any differences between our measurement date and the date of the fund investment’s net asset value by using the most recently available financial information from the investee general partner, for example September 30 th , for our December 31 st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.
The following table is a summary of the estimated fair values of these investments and remaining unfunded commitments for each major category of these investments as of December 31, 2014 :
## Table 2 ##
(1) Venture capital and private equity fund investments within non-marketable and other securities (fair value accounting) include investments made by our managed funds of funds and one of our direct venture funds.
These investments represent investments in venture capital and private equity funds that invest primarily in U. S.  and global technology and life science & healthcare companies.
Included in the fair value and unfunded commitments of fund investments under fair value accounting are $1.0 billion and $459 million , respectively, attributable to noncontrolling interests.
It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of terms of the funds.
(2) Other investments within non-marketable securities (equity method accounting) include investments in debt funds and venture capital and private equity fund investments that invest in or lend money to primarily U. S.  and global technology and life science & healthcare companies.
It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds.
(3) Venture capital and private equity fund investments within non-marketable securities (cost method accounting) include investments in venture capital and private equity fund investments that invest primarily in U. S.  and global technology and life science & healthcare companies.
It is estimated that we will receive distributions from the fund investments over the next 10 to 13 years, depending on the age of the funds and any potential extensions of the terms of the funds.
HEALTH CARE PROPERTY INVESTORS, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
## Table 3 ##
HCP MOP acquired 100 properties from MedCap in October 2003 for cash of $464 million and the assumption of $26 million of mortgage debt that accrues interest at 7%.
In connection therewith, the Company contributed $143 million to HCP MOP.
In January 2004, HCP MOP completed $288 million of non-recourse mortgage financings, including $254 million at a weighted average fixed interest rate of 5.57% with the balance based on LIBOR plus 1.75%.
The Company received $92 million of distributions from HCP MOP in connection with this financing during early 2004.
The Company has not guaranteed any indebtedness or other obligations of HCP MOP.
Generally, the Company may only be required to provide additional funding to HCP MOP under limited circumstances as specified in the related agreements.
At December 31, 2005 and 2004, investments and advances to unconsolidated joint ventures includes outstanding advances to HCP MOP of $3.7 million and $6.4 million, respectively.
During the year ended December 31, 2005, HCP MOP revised its purchase price allocation related to its 2003 acquisition of certain properties acquired from MedCap Properties, LLC.
The revisions made by HCP MOP to the purchase price allocation attributed more value to below-market lease intangibles and other intangibles from real estate assets.
Lease intangibles generally amortize over a shorter period of time relative to tangible real estate assets.
The impact to net income for HCP MOP, for the year ended December 31, 2005, resulting from the purchase price allocation revisions was a charge of $1.4 million.
In late August and early September 2005, ten medical office buildings owned by HCP MOP, principally in Louisiana and the surrounding area, sustained varying degrees of damage due to hurricanes Katrina and Rita.
Due to the nature and extent of the overall damage to the area, the Company has not been able to finalize damage assessments.
Preliminary estimates indicate that four of the buildings have incurred substantial damage, and may be a total loss.
For the years ended December 31, 2005 and 2004, the four buildings generated revenues of $0.9 million and $1.4 million, respectively.
As of December 31, 2005, the $3.8 million carrying value of these four buildings was written off and an equal amount was recorded as a receivable for the expected insurance proceeds up to the carrying value of each building.
At December 31, 2005, the remaining six buildings had resumed operations with repairs underway.
Revenues for the six facilities undergoing repair were $5.8 million and $5.9 million for the years ended December 31, 2005, and 2004, respectively.
Repair costs and other related expenses for damages caused by hurricanes Katrina and Rita during the year ended December 31, 2005, were approximately $1.4 million.
The Company has property, business interruption and other related insurance coverage to mitigate the financial impact of these types of events; such coverage is subject to various limits and deductible provisions based on the terms of the policies.
Any excess insurance recovery above the carrying value of the assets is expected to be recognized by HCP MOP as a gain at the time the claims settle with the insurance carrier.
HCP, Inc.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Mr.  Sullivan, a director of the Company, was a director of Covenant Care, Inc.  through March 2006.
During 2006 Covenant Care made payments of approximately $8.2 million to the Company for the lease of certain of its nursing home properties.
Mr.  Elcan, a former Executive Vice President of the Company through April 30, 2008, and certain members of Mr.  Elcan’s immediate family, including without limitation his wife and father-in-law, may be deemed to own directly or indirectly, in the aggregate, greater than 10% of the outstanding common stock of HCA, Inc.  (‘‘HCA’’) at April 29, 2008.
During 2008, 2007 and 2006, HCA contributed $95 million, $83 million and $37 million, respectively, in aggregate revenues and interest income, for the lease of certain assets and obligations under debt securities.
Mr.  Elcan and Mr.  Klaritch, an Executive Vice President of the Company, were previously senior executives and limited liability company members of MedCap Properties, LLC, which was acquired in October 2003 by HCP and a joint venture of which HCP was the managing member.
As part of that transaction, MedCap Properties, LLC contributed certain property interests to a newly-formed entity, HCPI/Tennessee LLC, in exchange for DownREIT units.
In connection with the transactions, Messrs.  Elcan and Klaritch received 610,397 and 113,431 non-managing member units, respectively, in HCPI/Tennessee, LLC in a distribution of their respective interests in MedCap Properties, LLC.
Each DownREIT unit is redeemable for an amount of cash approximating the then-current market value of two shares of HCP’s common stock or, at HCP’s option, two shares of HCP’s common stock (subject to certain adjustments, such as stock splits, stock dividends and reclassifications).
In addition, the HCPI/Tennessee, LLC agreement provides for a ‘‘make-whole’’ payment, intended to cover grossed-up tax liabilities, to the non-managing members upon the sale of certain properties acquired by HCPI/Tennessee, LLC in the MedCap transactions and other events.
The HCPI/Tennessee, LLC agreement was amended, with an effective date of January 1, 2007, to change the allocation of the taxable income among the members, to more closely correspond with the relative cash distributions each member receives.
Previously, taxable income was allocated disproportionately to the non-managing members to reflect the priority rights of the non-managing member unit holders in distributions of cash.
The amendment has no effect on the amounts of cash distributions to the non-managing members.
(25) Selected Quarterly Financial Data Selected quarterly information for the years ended December 31, 2008 and 2007 is as follows (in thousands, except per share amounts).
Results of operations for properties sold or to be sold have been classified as discontinued operations for all periods presented:
## Table 4 ##
The following table summarizes our outstanding interest rate swap contracts as of December 31, 2010 (dollars in thousands):
## Table 5 ##
(1) Represents three interest-rate swap contracts with an aggregate notional amount of $45.6 million.
For a more detailed description of our derivative financial instruments, see Note 24 of the Consolidated Financial Statements and ‘‘Quantitative and Qualitative Disclosures About Market Risk’’ in Item 7A.
Equity At December 31, 2010, we had 4.0 million shares of 7.25% Series E cumulative redeemable preferred stock, 7.8 million shares of 7.10% Series F cumulative redeemable preferred stock and 370.9 million shares of common stock outstanding.
At December 31, 2010, equity totaled $8.1 billion and our equity securities had a market value of $14.2 billion.
As of December 31, 2010, there were a total of 4.2 million DownREIT units outstanding in five limited liability companies in which we are the managing member.
The DownREIT units are exchangeable for an amount of cash approximating the then-current market value of shares of our common stock or, at our option, shares of our common stock (subject to certain adjustments, such as stock splits and reclassifications).
Shelf Registration We have a prospectus on file with the SEC as part of a registration statement on Form S-3, using a shelf registration process that expires in September 2012.
Under this ‘‘shelf’’ process, we may sell from time to time any combination of the registered securities in one or more offerings.
The securities described in the prospectus include common stock, preferred stock and debt securities.
Each time we sell securities under the shelf registration, we will provide a prospectus supplement that will contain specific information about the terms of the securities being offered and of the offering.
We may offer and sell the securities pursuant to this prospectus from time to time in one or more of the following ways: through underwriters or dealers, through agents, directly to purchasers or through a combination of any of these methods of sales.
Proceeds from the sale of these securities may be used for general corporate purposes, which may include repayment of indebtedness, working capital and potential acquisitions.
Non-GAAP Financial Measure—Funds From Operations (‘‘FFO’’) We believe FFO applicable to common shares, diluted FFO applicable to common shares, FFO, before the impact of impairments, recoveries and litigation provision, and basic and diluted FFO per common share are important supplemental measures of operating performance for a real estate investment trust.
Because the historical cost accounting convention used for real estate assets utilizes straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time.
Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real estate investment trust
The following table summarizes occupancy and average annual rent trends for our owned portfolio for the years ended December 31, (square feet in thousands):
## Table 6 ##
(1) Senior housing includes average units of 5,008 and 1,672 for the years ended December 31, 2012 and 2011, respectively, that are in a RIDEA structure in which resident occupancy impacts our annual revenue.
The average resident occupancy for these units was 86% and 88% for the years ended December 31, 2012 and 2011, respectively.
All other senior housing, post-acute/skilled nursing and hospital facilities are generally leased to single tenants under triple-net lease structures for each of the periods reported, for which these facilities were or approximately 100% leased.
(2) Average annual rent per unit/square feet is presented as a ratio of revenues comprised of rental and related revenues, tenant recoveries and income from direct financing leases divided by the average capacity or average occupied square feet of the facilities and annualized for mergers and acquisitions for the year in which they occurred.
Average annual rent for leased properties (including DFLs) exclude termination fees and non-cash revenue adjustments (i. e. , straight-line rents, amortization of above and below market lease intangibles and DFL interest accretion).
Average annual rent for operating properties operated under a RIDEA structure is calculated based on NOI divided by the average capacity of the facilities.
(3) Capacity for senior housing facilities is measured in units (e. g. , studio, one or two bedroom units).
Capacity for post-acute/ skilled nursing and hospitals is measured in licensed bed count.
Capacity for life science facilities and MOBs is measured in square feet.
Average capacity for senior housing, post-acute/skilled nursing and hospitals is as reported by the respective tenants or operators for the twelve month period and one quarter in arrears from the periods presented.

['

2008	2007	2006
Interest income	$653	$647	$394
Other income (expense), net	-33	-48	-29
Total other income and expense	$620	$599	$365

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Actual Ratio	Actual Amount	Minimum Ratio	Minimum Capital Requirement
(Dollars in thousands)
As of December 31, 2003:
Total risk-based capital ratio
Company	16.6%	$590,298	8.0%	$284,675
Bank	14.0%	$476,807	8.0%	$273,308
Tier 1 risk-based capital ratio
Company	12.0%	$425,570	4.0%	$142,337
Bank	12.7%	$433,834	4.0%	$136,654
Tier 1 leverage ratio
Company	10.3%	$425,570	4.0%	$164,855
Bank	11.0%	$433,834	4.0%	$158,222
As of December 31, 2002:
Total risk-based capital ratio
Company	16.0%	$555,979	8.0%	$277,383
Bank	13.9%	$463,439	8.0%	$267,554
Tier 1 risk-based capital ratio
Company	14.8%	$512,303	4.0%	$138,691
Bank	12.6%	$421,324	4.0%	$133,777
Tier 1 leverage ratio
Company	13.9%	$512,303	4.0%	$147,764
Bank	11.8%	$421,324	4.0%	$142,365

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(Dollars in thousands)	Carrying Amount	Fair Value	Unfunded Commitments
Non-marketable securities (fair value accounting):
Venture capital and private equity fund investments -1	$1,130,882	$1,130,882	$462,314
Non-marketable securities (equity method accounting):
Other investments -2	47,876	49,066	5,836
Non-marketable securities (cost method accounting):
Venture capital and private equity fund investments -3	140,551	234,053	18,563
Total	$1,319,309	$1,414,001	$486,713

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Year Ended December 31,
2005	2004	2003
(In thousands)
Rental and other income	$74,690	$70,330	$16,850
Net income (loss)	$-3,829	$4,932	$3,853
HCP’s equity income (loss)	$-1,379	$1,537	$1,694
Fees earned by HCP	$3,102	$3,112	$2,491
Distributions received	$5,302	$98,291	$—

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Three Months Ended During 2008
March 31	June 30	September 30	December 31
(in thousands, except share data, unaudited)
Total revenues	$245,052	$249,054	$268,447	$263,265
Income before income taxes, equity income from unconsolidated joint ventures and minority interests\' share in earnings	37,495	43,976	100,211	44,876
Total discontinued operations	19,457	194,018	30,450	241
Net income applicable to common shares	45,129	227,012	120,135	35,089
Dividends paid per common share	0.455	0.455	0.455	0.455
Basic earnings per common share	0.21	0.97	0.49	0.14
Diluted earnings per common share	0.21	0.96	0.49	0.14

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Date Entered	Maturity Date	Hedge Designation	Fixed Rate	Floating Rate Index	Notional Amount	Fair Value
July 2005-1	July 2020	Cash Flow	3.82%	BMA Swap Index	$45,600	$-4,184
November 2008	October 2016	Cash Flow	5.95%	1 Month LIBOR+1.50%	28,200	-3,191
June 2009	September 2011	Fair Value	5.95%	1 Month LIBOR+4.21%	250,000	2,291
July 2009	July 2013	Cash Flow	6.13%	1 Month LIBOR+3.65%	14,200	-545
August 2009	February 2011	Cash Flow	0.87%	1 Month LIBOR	250,000	165
August 2009	August 2011	Cash Flow	1.24%	1 Month LIBOR	250,000	1,409

', '

2012	2011	2010	2009	2008
Senior housing-1:
Average annual rent per unit-2	$13,059	$12,887	$12,656	$11,918	$12,530
Average capacity (units)(3)	37,089	33,911	24,453	24,209	24,143
Post-acute/skilled nursing-1:
Average annual rent per bed-2	$11,624	$11,140	$6,885	$6,817	$6,537
Average capacity (beds)(3)	39,856	30,565	5,063	5,041	5,043
Life science:
Average occupancy percentage	90%	90%	89%	91%	87%
Average annual rent per square foot-2	$45	$44	$44	$43	$37
Average occupied square feet-3	6,250	6,076	5,740	5,554	5,362
Medical office:
Average occupancy percentage	91%	91%	91%	91%	90%
Average annual rent per square foot-2	$27	$26	$26	$26	$25
Average occupied square feet-3	12,295	11,865	11,583	11,577	11,719
Hospital-1:
Average annual rent per bed-2	$34,236	$33,499	$32,710	$29,825	$33,357
Average capacity (beds)(3)	2,410	2,410	2,399	2,376	2,392

']

Question: what was the change in the weighted average interest rate earned by the company on its cash , cash equivalents , and short-term investments between 2007 and 2006?
Answer: 0.6900000000000001