Table 6 Supplemental Financial Data and Reconciliations to GAAP Financial Measures
## Table 0 ##
and allows for either a full retrospective or modified approach at adoption.
While the Company’s implementation efforts are ongoing, it does not expect adoption of the guidance to have a significant impact on the timing of recognition for the majority of its operating revenue.
The Company is evaluating certain costs to determine if they should be capitalized or expensed based on the criteria in the guidance for costs to obtain or fulfill a contract.
Additionally, it is assessing certain arrangements to determine whether it continues to act as a principal and present the related revenue gross of associated expenses.
The overall impact upon adoption may differ based on further evaluation, issuance of additional interpretive guidance and other facts and circumstances identified during implementation.
The Company has not yet determined its transition approach.
The FASB issued an amendment to the existing financial instruments guidance in January 2016.
The amendment requires substantially all equity investments in nonconsolidated entities to be measured at fair value with changes recognized in earnings, except for those accounted for using the equity method of accounting, which will impact all equity securities currently classified as available-for-sale.
The amendment also provides an election to measure equity investments that do not have a readily determinable fair value at cost less impairment, if any, which the Company expects to take.
The amendment is effective for the Company on October 1, 2018 and requires a cumulative effect adjustment to retained earnings at adoption.
The Company does not expect the adoption to have a material impact on its consolidated financial statements; however, this could be affected by market volatility as well as additional facts and circumstances identified during implementation.
The FASB issued new guidance for the accounting for leases in February 2016.
The new guidance requires lessees to recognize assets and liabilities arising from substantially all leases.
The guidance also requires an evaluation at the inception of a contract to determine whether the contract is or contains a lease.
The guidance is effective for the Company on October 1, 2019 and requires a modified retrospective approach at adoption.
The Company is currently evaluating the impact of adopting the guidance.
The FASB issued new guidance for the accounting for credit losses in June 2016.
The new guidance requires the application of a current expected credit loss model for financial assets measured at amortized cost and an allowance for credit loss model for available-for-sale debt securities.
The guidance is effective for the Company on October 1, 2020 and requires a cumulative effect adjustment to retained earnings at adoption.
The Company is currently evaluating the impact of adopting the guidance.
Note 3 – Earnings per Share The components of basic and diluted earnings per share were as follows:
## Table 1 ##
Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.7 million for fiscal year 2017, 1.3 million for the fiscal year ended September 30, 2016 (“fiscal year 2016”), and 0.9 million for the fiscal year ended September 30, 2015 (“fiscal year 2015”).
In April 2009, the Company acquired $2 million of finitelived management contracts with a five-year estimated useful life associated with the acquisition of the R3 Capital Partners funds.
In December 2009, in conjunction with the BGI Transaction, the Company acquired $163 million of finitelived management contracts with a weighted-average estimated useful life of approximately 10 years.
Estimated amortization expense for finite-lived intangible assets for each of the five succeeding years is as follows:
## Table 2 ##
Indefinite-Lived Acquired Management Contracts On September 29, 2006, in conjunction with the MLIM Transaction, the Company acquired indefinite-lived management contracts valued at $4,477 million consisting of $4,271 million for all retail mutual funds and $206 million for alternative investment products.
On October 1, 2007, in conjunction with the Quellos Transaction, the Company acquired $631 million in indefinite-lived management contracts associated with alternative investment products.
On October 1, 2007, the Company purchased the remaining 20% of an investment manager of a fund of hedge funds.
In conjunction with this transaction, the Company recorded $8 million in additional indefinite-lived management contracts associated with alternative investment products.
On December 1, 2009, in conjunction with the BGI Transaction, the Company acquired $9,785 million in indefinite-lived management contracts valued consisting primarily for exchange traded funds and common and collective trusts.
Indefinite-Lived Acquired Trade Names/Trademarks On December 1, 2009, in conjunction with the BGI Transaction, the Company acquired trade names/ trademarks primarily related to iShares valued at $1,402.5 million.
The fair value was determined using a royalty rate based primarily on normalized marketing and promotion expenditures to develop and support the brands globally.
13.
Borrowings Short-Term Borrowings 2007 Facility In August 2007, the Company entered into a five-year $2.5 billion unsecured revolving credit facility (the “2007 facility”), which permits the Company to request an additional $500 million of borrowing capacity, subject to lender credit approval, up to a maximum of $3.0 billion.
The 2007 facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less domestic unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2009.
The 2007 facility provides back-up liquidity, funds ongoing working capital for general corporate purposes and funds various investment opportunities.
At December 31, 2009, the Company had $200 million outstanding under the 2007 facility with an interest rate of 0.44% and a maturity date during February 2010.
During February 2010, the Company rolled over $100 million in borrowings with an interest rate of 0.43% and a maturity date in May 2010.
Lehman Commercial Paper Inc.  has a $140 million participation under the 2007 Facility; however BlackRock does not expect that Lehman Commercial Paper Inc.  will honor its commitment to fund additional amounts.
Bank of America, a related party, has a $140 million participation under the 2007 facility.
In December 2007, in order to support two enhanced cash funds that BlackRock manages, BlackRock elected to procure two letters of credit under the existing 2007 facility in an aggregate amount of $100 million.
In December 2008, the letters of credit were terminated.
Commercial Paper Program On October 14, 2009, BlackRock established a commercial paper program (the “CP Program”) under which the Company may issue unsecured commercial paper notes (the “CP Notes”) on a private placement basis up to a maximum aggregate amount outstanding at any time of $3 billion.
The proceeds of the commercial paper issuances were used for the financing of a portion of the BGI Transaction.
Subsidiaries of Bank of America and Barclays, as well as other third parties, act as dealers under the CP Program.
The CP Program is supported by the 2007 facility.
The Company began issuance of CP Notes under the CP Program on November 4, 2009.
As of December 31, 2009, BlackRock had approximately $2 billion of outstanding CP Notes with a weighted average interest rate of 0.20% and a weighted average maturity of 23 days.
Since December 31, 2009, the Company repaid approximately $1.4 billion of CP Notes with proceeds from the long-term notes issued in December 2009.
As of March 5, 2010, BlackRock had $596 million of outstanding CP Notes with a weighted average interest rate of 0.18% and a weighted average maturity of 38 days.
Japan Commitment-line In June 2008, BlackRock Japan Co. , Ltd. , a wholly owned subsidiary of the Company, entered into a five billion Japanese yen commitment-line agreement with a banking institution (the “Japan Commitment-line”).
The term of the Japan Commitment-line was one year and interest accrued at the applicable Japanese short-term prime rate.
In June 2009, BlackRock Japan Co. , Ltd.  renewed the Japan Commitment-line for a term of one year.
licensed software upgrade rights, installation fees, transaction processing and subscriptions, increased 7% to $1.4 billion in 2017, from $1.3 billion in 2016.
The increase in system sales was primarily driven by increases in licensed software and subscriptions of $63 million and $27 million, respectively.  ?
Support and maintenance revenues increased 3% from 2016 to 2017.
This increase was primarily attributable to continued success selling Cerner Millennium applications and implementing them at client sites.  ?
Services revenue, which includes professional services (excluding installation) and managed services, increased 9% to $2.6 billion in 2017, from $2.4 billion in 2016.
This increase was driven by a $148 million increase in professional services due to growth in implementation and consulting activities and growth in managed services of $65 million as a result of continued demand for our hosting services.
Revenue backlog, which reflects contracted revenue that has not yet been recognized as revenue, increased 10% to $17.5 billion in 2017, compared to $15.9 billion in 2016.
This increase was driven by solid levels of new business bookings during the past four quarters, including strong levels of managed services bookings that typically have longer contract terms.
Costs of Revenue Costs of revenue as a percent of total revenues were 17% in 2017, compared to 16% in 2016.
The marginally higher costs of revenue as a percent of total revenues was primarily due to higher third-party costs associated with technology resale.
Costs of revenue include the cost of reimbursed travel expense, sales commissions, third party consulting services and subscription content and computer hardware, devices and sublicensed software purchased from manufacturers for delivery to clients.
It also includes the cost of hardware maintenance and sublicensed software support subcontracted to the manufacturers.
Such costs, as a percent of total revenues, typically have varied as the mix of revenue (software, hardware, devices, maintenance, support, services and reimbursed travel) carrying different margin rates changes from period to period.
Costs of revenue does not include the costs of our client service personnel who are responsible for delivering our service offerings.
Such costs are included in sales and client service expense.
Operating Expenses Total operating expenses increased 7% to $3.3 billion in 2017, compared with $3.1 billion in 2016.  ?
Sales and client service expenses as a percent of total revenues were 44% in 2017, compared to 43% in 2016.
These expenses increased 10% to $2.3 billion in 2017, from $2.1 billion in 2016.
Sales and client service expenses include salaries and benefits of sales, marketing, support, and services personnel, depreciation and other expenses associated with our managed services business, communications expenses, unreimbursed travel expenses, expense for share-based payments, and trade show and advertising costs.
The growth in sales and client service expenses reflects hiring of services personnel to support the growth in services revenue.  ?
Software development expenses as a percent of total revenues were 12% in 2017, compared to 11% in 2016.
Expenditures for software development include ongoing development and enhancement of the Cerner Millennium and HealtheIntent platforms, with a focus on supporting key initiatives to enhance physician experience, revenue cycle and population health solutions.
A summary of our total software development expense in 2017 and 2016 is as follows:

Tables referenced above, in order (Table 0 first):
<table><tr><td>(Dollars in millions)</td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td> Operating basis</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating earnings</td><td>$15,240</td><td>$21,640</td><td>$16,740</td><td>$14,358</td><td>$10,762</td></tr><tr><td>Return on average assets</td><td>0.95%</td><td>1.48%</td><td>1.32%</td><td>1.37%</td><td>1.44%</td></tr><tr><td>Return on average common shareholders’ equity</td><td>11.27</td><td>16.66</td><td>16.79</td><td>16.96</td><td>21.50</td></tr><tr><td>Return on average tangible shareholders’ equity</td><td>22.64</td><td>33.59</td><td>30.70</td><td>29.79</td><td>27.84</td></tr><tr><td>Operating efficiency ratio (FTE basis)</td><td>53.77</td><td>47.14</td><td>48.73</td><td>51.35</td><td>51.13</td></tr><tr><td>Dividend payout ratio</td><td>71.02</td><td>44.59</td><td>45.84</td><td>44.98</td><td>39.76</td></tr><tr><td>Operating leverage (FTE basis)</td><td>-12.97</td><td>4.15</td><td>5.74</td><td>-0.55</td><td>-0.41</td></tr><tr><td> FTE basis data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest income</td><td>$36,182</td><td>$35,815</td><td>$31,569</td><td>$28,677</td><td>$21,149</td></tr><tr><td>Total revenue, net of interest expense</td><td>68,068</td><td>73,804</td><td>58,007</td><td>51,406</td><td>39,419</td></tr><tr><td>Net interest yield</td><td>2.60%</td><td>2.82%</td><td>2.84%</td><td>3.17%</td><td>3.26%</td></tr><tr><td>Efficiency ratio</td><td>54.37</td><td>48.23</td><td>49.44</td><td>52.55</td><td>51.13</td></tr><tr><td> Reconciliation of net income to operating earnings</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$14,982</td><td>$21,133</td><td>$16,465</td><td>$13,947</td><td>$10,762</td></tr><tr><td>Merger and restructuring charges</td><td>410</td><td>805</td><td>412</td><td>618</td><td>–</td></tr><tr><td>Related income tax benefit</td><td>-152</td><td>-298</td><td>-137</td><td>-207</td><td>–</td></tr><tr><td>Operating earnings</td><td>$15,240</td><td>$21,640</td><td>$16,740</td><td>$14,358</td><td>$10,762</td></tr><tr><td> Reconciliation of average shareholders’ equity to average tangible shareholders’ equity</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average shareholders’ equity</td><td>$136,662</td><td>$130,463</td><td>$99,861</td><td>$84,815</td><td>$50,091</td></tr><tr><td>Average goodwill</td><td>-69,333</td><td>-66,040</td><td>-45,331</td><td>-36,612</td><td>-11,440</td></tr><tr><td>Average tangible shareholders’ equity</td><td>$67,329</td><td>$64,423</td><td>$54,530</td><td>$48,203</td><td>$38,651</td></tr><tr><td> Reconciliation of return on average assets to operating return on average assets</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average assets</td><td>0.94%</td><td>1.44%</td><td>1.30%</td><td>1.34%</td><td>1.44%</td></tr><tr><td>Effect of merger and restructuring charges, net-of-tax</td><td>0.01</td><td>0.04</td><td>0.02</td><td>0.03</td><td>–</td></tr><tr><td>Operating return on average assets</td><td>0.95%</td><td>1.48%</td><td>1.32%</td><td>1.37%</td><td>1.44%</td></tr><tr><td> Reconciliation of return on average common shareholders’ equity to operating return on average common shareholders’equity</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average common shareholders’ equity</td><td>11.08%</td><td>16.27%</td><td>16.51%</td><td>16.47%</td><td>21.50%</td></tr><tr><td>Effect of merger and restructuring charges, net-of-tax</td><td>0.19</td><td>0.39</td><td>0.28</td><td>0.49</td><td>–</td></tr><tr><td>Operating return on average common shareholders’ equity</td><td>11.27%</td><td>16.66%</td><td>16.79%</td><td>16.96%</td><td>21.50%</td></tr><tr><td> Reconciliation of return on average tangible shareholders’ equity to operating return on average tangible shareholders’equity</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average tangible shareholders’ equity</td><td>22.25%</td><td>32.80%</td><td>30.19%</td><td>28.93%</td><td>27.84%</td></tr><tr><td>Effect of merger and restructuring charges, net-of-tax</td><td>0.39</td><td>0.79</td><td>0.51</td><td>0.86</td><td>–</td></tr><tr><td>Operating return on average tangible shareholders’ equity</td><td>22.64%</td><td>33.59%</td><td>30.70%</td><td>29.79%</td><td>27.84%</td></tr><tr><td> Reconciliation of efficiency ratio to operating efficiency ratio (FTE basis)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Efficiency ratio</td><td>54.37%</td><td>48.23%</td><td>49.44%</td><td>52.55%</td><td>51.13%</td></tr><tr><td>Effect of merger and restructuring charges</td><td>-0.60</td><td>-1.09</td><td>-0.71</td><td>-1.20</td><td>–</td></tr><tr><td>Operating efficiency ratio</td><td>53.77%</td><td>47.14%</td><td>48.73%</td><td>51.35%</td><td>51.13%</td></tr><tr><td> Reconciliation of dividend payout ratio to operating dividend payout ratio</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Dividend payout ratio</td><td>72.26%</td><td>45.66%</td><td>46.61%</td><td>46.31%</td><td>39.76%</td></tr><tr><td>Effect of merger and restructuring charges, net-of-tax</td><td>-1.24</td><td>-1.07</td><td>-0.77</td><td>-1.33</td><td>–</td></tr><tr><td>Operating dividend payout ratio</td><td>71.02%</td><td>44.59%</td><td>45.84%</td><td>44.98%</td><td>39.76%</td></tr><tr><td> Reconciliation of operating leverage to operating basis operating leverage (FTE basis)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating leverage</td><td>-11.74%</td><td>3.12%</td><td>6.67%</td><td>-3.62%</td><td>-0.41%</td></tr><tr><td>Effect of merger and restructuring charges</td><td>-1.23</td><td>1.03</td><td>-0.93</td><td>3.07</td><td>–</td></tr><tr><td>Operating leverage</td><td>-12.97%</td><td>4.15%</td><td>5.74%</td><td>-0.55%</td><td>-0.41%</td></tr></table>
<table><tr><td>for the fiscal years ended September 30,</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Net income attributable to Franklin Resources, Inc.</td><td>$1,696.7</td><td>$1,726.7</td><td>$2,035.3</td></tr><tr><td>Less: allocation of earnings to participating nonvested stock and stock unit awards</td><td>12.4</td><td>10.9</td><td>12.0</td></tr><tr><td>Net Income Available to Common Stockholders</td><td>$1,684.3</td><td>$1,715.8</td><td>$2,023.3</td></tr><tr><td>Weighted-average shares outstanding – basic</td><td>558.8</td><td>583.8</td><td>614.8</td></tr><tr><td>Dilutive effect of nonparticipating nonvested stock unit awards</td><td>0.3</td><td>—</td><td>0.1</td></tr><tr><td>Weighted-Average Shares Outstanding – Diluted</td><td>559.1</td><td>583.8</td><td>614.9</td></tr><tr><td>Earnings per Share</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$3.01</td><td>$2.94</td><td>$3.29</td></tr><tr><td>Diluted</td><td>3.01</td><td>2.94</td><td>3.29</td></tr></table>
<table><tr><td>2010</td><td>$160</td></tr><tr><td>2011</td><td>157</td></tr><tr><td>2012</td><td>156</td></tr><tr><td>2013</td><td>155</td></tr><tr><td>2014</td><td>149</td></tr></table>

Question: what is the 2010 estimated amortization expense for finite-lived intangible assets as a percentage of the unsecured revolving credit facility?
Answer: 0.0025
Reasoning program: divide(2.5,const_1000)