PENSION PLAN ASSETS Assets related to our qualified pension plan (the “Plan”) are held in trust (the “Trust”).
The trustee is PNC Bank, N. A.
The Trust is exempt from tax pursuant to section 501(a) of the Internal Revenue Code (the “Code”).
The Plan is qualified under section 401(a) of the Code.
Plan assets consist primarily of listed domestic and international equity securities and US government, agency, and corporate debt securities and real estate investments.
Plan assets do not include common stock, preferred stock or debt of PNC.
The Pension Plan Administrative Committee (the “Committee”) adopted the current Pension Plan Investment Policy Statement, including the updated target allocations and allowable ranges shown below, on November 29, 2005.
The long-term investment strategy for pension plan assets is to: ?
Meet present and future benefit obligations to all participants and beneficiaries, ?
Cover reasonable expenses incurred to provide such benefits, including expense incurred in the administration of the Trust and the Plan, ?
Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis, and ?
Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk.
The Plan’s specific investment objective is to meet or exceed the investment policy benchmark over the long term.
The investment policy benchmark compares actual performance to a weighted market index, and measures the contribution of active investment management and policy implementation.
This investment objective is expected to be achieved over the long term (one or more market cycles) and is measured over rolling five-year periods.
Total return calculations are timeweighted and are net of investment-related fees and expenses.
The asset strategy allocations for the Trust at the end of 2007 and 2006, and the target allocation range, by asset category, are as follows:
## Table 0 ##
The asset category represents the allocation of Plan assets in accordance with the investment objective of each of the Plan’s investment managers.
Certain domestic equity investment managers utilize derivatives and fixed income securities as described in their Investment Management Agreements to achieve their investment objective under the Investment Policy Statement.
Other investment managers may invest in eligible securities outside of their assigned asset category to meet their investment objectives.
The actual percentage of the fair value of total plan assets held as of December 31, 2007 for equity securities, fixed income securities, real estate and all other assets are 37%, 57%, 0%, and 6%, respectively.
We believe that, over the long term, asset allocation is the single greatest determinant of risk.
Asset allocation will deviate from the target percentages due to market movement, cash flows, and investment manager performance.
Material deviations from the asset allocation targets can alter the expected return and risk of the Trust.
On the other hand, frequent rebalancing to the asset allocation targets may result in significant transaction costs, which can impair the Trust’s ability to meet its investment objective.
Accordingly, the Trust portfolio is periodically rebalanced to maintain asset allocation within the target ranges described above.
In addition to being diversified across asset classes, the Trust is diversified within each asset class.
Secondary diversification provides a reasonable basis for the expectation that no single security or class of securities will have a disproportionate impact on the total risk and return of the Trust.
The Committee selects investment managers for the Trust based on the contributions that their respective investment styles and processes are expected to make to the investment performance of the overall portfolio.
The managers’ Investment Objectives and Guidelines, which are a part of each manager’s Investment Management Agreement, document performance expectations and each manager’s role in the portfolio.
The Committee uses the Investment Objectives and Guidelines to establish, guide, control and measure the strategy and performance for each manager.
The purpose of investment manager guidelines is to: ?
Establish the investment objective and performance standards for each manager, ?
Provide the manager with the capability to evaluate the risks of all financial instruments or other assets in which the manager’s account is invested, and ?
Prevent the manager from exposing its account to excessive levels of risk, undesired or inappropriate risk, or disproportionate concentration of risk.
LOANS OUTSTANDING
## Table 1 ##
(a) Includes $2.3 billion at December 31, 2004 and $2.2 billion at December 31, 2003 related to Market Street, which was deconsolidated effective October 17, 2005.
NONPERFORMING ASSETS AND RELATED INFORMATION
## Table 2 ##
(a) Excludes loans held for sale carried at lower of cost or market value of $25 million at December 31, 2007, $1 million at December 31, 2005, $3 million at December 31, 2004 and $27 million at December 31, 2003 (includes $1 million, $2 million and $10 million of troubled debt restructured loans held for sale at December 31, 2005, 2004 and 2003, respectively).
Amount at December 31, 2007 related to the Mercantile and Yardville acquisitions.
(b) Excludes equity management assets that are carried at estimated fair value of $4 million at December 31, 2007, $11 million (including $4 million of troubled debt restructured assets) at December 31, 2006, $25 million (including $7 million of troubled debt restructured assets) at December 31, 2005, $32 million (including $11 million of troubled debt restructured assets) at December 31, 2004, and $37 million (including $5 million of troubled debt restructured assets) at December 31, 2003.
levels during 2008, an indication that efforts to improve network operations translated into better customer service.  ?
Fuel Prices – Crude oil prices increased at a steady rate through the first seven months of 2008, closing at a record high of $145.29 a barrel in early July.
As the economy worsened during the third and fourth quarters, fuel prices dropped dramatically, hitting $33.87 per barrel in December, a near five-year low.
Despite these price declines toward the end of the year, our 2008 average fuel price increased by 39% and added $1.1 billion of operating expenses compared to 2007.
Our fuel surcharge programs helped offset the impact of higher fuel prices.
In addition, we reduced our consumption rate by 4%, saving approximately 58 million gallons of fuel during the year.
The use of newer, more fuel efficient locomotives; our fuel conservation programs; improved network operations; and a shift in commodity mix, primarily due to growth in bulk shipments, contributed to the improvement.  ?
Free Cash Flow – Cash generated by operating activities totaled a record $4.1 billion, yielding free cash flow of $825 million in 2008.
Free cash flow is defined as cash provided by operating activities, less cash used in investing activities and dividends paid.
Free cash flow is not considered a financial measure under accounting principles generally accepted in the United States (GAAP) by SEC Regulation G and Item 10 of SEC Regulation S-K.  We believe free cash flow is important in evaluating our financial performance and measures our ability to generate cash without additional external financings.
Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):
## Table 3 ##
2009 Outlook ?
Safety – Operating a safe railroad benefits our employees, our customers, our shareholders, and the public.
We will continue using a multi-faceted approach to safety, utilizing technology, risk assessment, quality control, and training and engaging our employees.
We plan to continue implementation of Total Safety Culture (TSC) throughout our operations.
TSC, an employee-focused initiative that has helped improve safety, is a process designed to establish, maintain, and promote safety among co-workers.
With respect to public safety, we will continue our efforts to maintain, upgrade, and close crossings, install video cameras on locomotives, and educate the public about crossing safety through various Railroad and industry programs, along with other activities.  ?
Transportation Plan – In 2009, we will continue to evaluate traffic flows and network logistic patterns to identify additional opportunities to simplify operations and improve network efficiency and asset utilization.
We plan to maintain adequate manpower and locomotives, and improve productivity using industrial engineering techniques.  ?
Fuel Prices – On average, we expect fuel prices to decrease substantially from the average price we paid in 2008.
However, due to economic uncertainty, other global pressures, and weather incidents, fuel prices again could be volatile during the year.
To reduce the impact of fuel price on earnings, we

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>TargetAllocationRange</td><td colspan="2">Percentage of Plan Assets by Strategy atDecember 31</td></tr><tr><td></td><td></td><td>2007</td><td>2006</td></tr><tr><td> Asset category</td><td></td><td></td><td></td></tr><tr><td>Equity securities</td><td>49-69%</td><td>62%</td><td>62%</td></tr><tr><td>Fixed income securities</td><td>27-41%</td><td>34%</td><td>33%</td></tr><tr><td>Real estate</td><td>0-8%</td><td>4%</td><td>5%</td></tr><tr><td>Other</td><td>0-1%</td><td>—</td><td>—</td></tr><tr><td>Total</td><td></td><td>100%</td><td>100%</td></tr></table>
<table><tr><td>December 31 - in millions</td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Commercial</td><td>$28,607</td><td>$20,584</td><td>$19,325</td><td>$17,438</td><td>$15,082</td></tr><tr><td>Commercial real estate</td><td>8,906</td><td>3,532</td><td>3,162</td><td>1,980</td><td>1,824</td></tr><tr><td>Consumer</td><td>18,326</td><td>16,515</td><td>16,173</td><td>15,606</td><td>11,855</td></tr><tr><td>Residential mortgage</td><td>9,557</td><td>6,337</td><td>7,307</td><td>4,772</td><td>2,886</td></tr><tr><td>Lease financing</td><td>3,500</td><td>3,556</td><td>3,628</td><td>4,096</td><td>5,147</td></tr><tr><td>Other</td><td>413</td><td>376</td><td>341</td><td>505</td><td>518</td></tr><tr><td>Total loans</td><td>69,309</td><td>50,900</td><td>49,936</td><td>44,397</td><td>37,312</td></tr><tr><td>Unearned income</td><td>-990</td><td>-795</td><td>-835</td><td>-902</td><td>-1,009</td></tr><tr><td>Total loans, net of unearned income (a)</td><td>$68,319</td><td>$50,105</td><td>$49,101</td><td>$43,495</td><td>$36,303</td></tr></table>
<table><tr><td>December 31 - dollars in millions</td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Nonaccrual loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$193</td><td>$109</td><td>$134</td><td>$89</td><td>$213</td></tr><tr><td>Lease financing</td><td>3</td><td>1</td><td>17</td><td>5</td><td>11</td></tr><tr><td>Commercial real estate</td><td>212</td><td>12</td><td>14</td><td>14</td><td>6</td></tr><tr><td>Consumer</td><td>17</td><td>13</td><td>10</td><td>11</td><td>11</td></tr><tr><td>Residential mortgage</td><td>10</td><td>12</td><td>15</td><td>21</td><td>24</td></tr><tr><td>Total nonaccrual loans</td><td>$435</td><td>$147</td><td>$190</td><td>$140</td><td>$265</td></tr><tr><td>Troubled debt restructured loan</td><td>2</td><td></td><td></td><td>3</td><td>1</td></tr><tr><td>Total nonperforming loans</td><td>437</td><td>147</td><td>190</td><td>143</td><td>266</td></tr><tr><td>Foreclosed and other assets</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Lease</td><td>11</td><td>12</td><td>13</td><td>14</td><td>17</td></tr><tr><td>Residential mortgage</td><td>16</td><td>10</td><td>9</td><td>10</td><td>9</td></tr><tr><td>Other</td><td>14</td><td>2</td><td>3</td><td>5</td><td>9</td></tr><tr><td>Total foreclosed and other assets</td><td>41</td><td>24</td><td>25</td><td>29</td><td>35</td></tr><tr><td>Total nonperforming assets (a) (b)</td><td>$478</td><td>$171</td><td>$215</td><td>$172</td><td>$301</td></tr><tr><td>Nonperforming loans to total loans</td><td>.64%</td><td>.29%</td><td>.39%</td><td>.33%</td><td>.73%</td></tr><tr><td>Nonperforming assets to total loans and foreclosed assets</td><td>.70</td><td>.34</td><td>.42</td><td>.38</td><td>.80</td></tr><tr><td>Nonperforming assets to total assets</td><td>.34</td><td>.17</td><td>.23</td><td>.22</td><td>.44</td></tr><tr><td>Interest on nonperforming loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Computed on original terms</td><td>$51</td><td>$15</td><td>$16</td><td>$11</td><td>$29</td></tr><tr><td>Recognized prior to nonperforming status</td><td>32</td><td>4</td><td>5</td><td>2</td><td>5</td></tr><tr><td>Past due loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Accruing loans past due 90 days or more</td><td>$106</td><td>$50</td><td>$46</td><td>$49</td><td>$57</td></tr><tr><td>As a percentage of total loans</td><td>.16%</td><td>.10%</td><td>.09%</td><td>.11%</td><td>.16%</td></tr><tr><td>Past due loans held for sale</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Accruing loans held for sale past due 90 days or more</td><td>$8</td><td>$9</td><td>$47</td><td>$9</td><td>$6</td></tr><tr><td>As a percentage of total loans held for sale</td><td>.20%</td><td>.38%</td><td>1.92%</td><td>.54%</td><td>.43%</td></tr></table>
<table><tr><td><i>Millions of Dollars</i></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Cash provided by operating activities</td><td>$4,070</td><td>$3,277</td><td>$2,880</td></tr><tr><td>Cash used in investing activities</td><td>-2,764</td><td>-2,426</td><td>-2,042</td></tr><tr><td>Dividends paid</td><td>-481</td><td>-364</td><td>-322</td></tr><tr><td>Free cash flow</td><td>$825</td><td>$487</td><td>$516</td></tr></table>

Question: what was the percentage change in free cash flow from 2006 to 2007?
Answer: -0.0562
Reasoning program: subtract(487,516), divide(#0,516)