is not necessarily indicative of the results of future operations that would have been achieved had the acquisitions taken place at the beginning of 2001.
Pro forma information follows (in millions, except per share amounts):
## Table 0 ##
Note 5 -- Restructuring Charges Fiscal 2003 Restructuring Actions The Company recorded total restructuring charges of approximately $26.8 million during the year ended September 27, 2003, including approximately $7.4 million in severance costs, a $5.0 million charge to write-off deferred compensation, $7.1 million in asset impairments and a $7.3 million charge for lease cancellations.
Of the $26.8 million, nearly all had been spent by the end of 2003, except for approximately $400,000 of severance costs and approximately $4.5 million related to operating lease costs on abandoned facilities.
During the third quarter of 2003, approximately $500,000 of the amount originally accrued for lease cancellations was determined to be in excess due to the sublease of a property sooner than originally estimated and an approximately $500,000 shortfall was identified in the severance accrual due to higher than expected severance costs related to the closure of the Company’s Singapore manufacturing operations.
These adjustments had no net effect on reported operating expense.
During the second quarter of 2003, the Company’s management approved and initiated restructuring actions that resulted in recognition of a total restructuring charge of $2.8 million, including $2.4 million in severance costs and $400,000 for asset write-offs and lease payments on an abandoned facility.
Actions taken in the second quarter were for the most part supplemental to actions initiated in the prior two quarters and focused on further headcount reductions in various sales and marketing functions in the Company’s Americas and Europe operating segments and further reductions associated with PowerSchool-related activities in the Americas operating segment, including an accrual for asset write-offs and lease payments on an abandoned facility.
The second quarter actions resulted in the termination of 93 employees, 92 were terminated prior to the end of 2003.
During the first quarter of 2003, the Company’s management approved and initiated restructuring actions with a total cost of $24 million that resulted in the termination of manufacturing operations at the Company-owned facility in Singapore, further reductions in headcount resulting from the shift in PowerSchool product strategy that took place at the end of fiscal 2002, and termination of various sales and marketing activities in the United States and Europe.
These restructuring actions will ultimately result in the elimination of 260 positions worldwide, all but one of which were eliminated by the end of 2003.
Closure of the Company’s Singapore manufacturing operations resulted in severance costs of $1.8 million and costs of $6.7 million to write-off manufacturing related fixed assets, whose use ceased during the first quarter.
PowerSchool related costs included severance of approximately $550,000 and recognition of $5 million of previously deferred stock compensation that arose when PowerSchool was acquired by the Company in 2001 related to certain PowerSchool employee stockholders who were terminated in the first quarter of 2003.
Termination of sales and marketing activities and employees, principally in the United States and Europe, resulted in severance costs of $2.8 million and accrual of costs associated with operating leases on closed facilities of $6.7 million.
The total net restructuring charge of $23 million recognized during the first quarter of 2003 also reflects the reversal of $600,000 of unused restructuring accrual originally made during the first quarter of 2002.
Except for certain costs associated with operating leases on closed facilities, the Company currently anticipates that all of the remaining accrual for severance costs of approximately $400,000 will be spent by the end of the first quarter of fiscal 2004.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 1—Significant Accounting Policies (continued) 2007, were determined based on the simplified method as permitted by Staff Accounting Bulletins 107.
This method was used because the 2005 and 2007 Plans limited grants to a maximum contract term of seven years, and Torchmark had no previous experience with seven-year contract terms.
Prior to 2005, substantially all grants contained ten-year terms.
Because a large portion of these grants vest over a three-year period, the Company still does not have sufficient exercise history to determine an appropriate expected term on these grants.
Volatility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option.
Volatility is measured on a historical basis, because the Company has no basis at the present time to believe that future trends will differ from historical patterns.
Monthly data points are utilized by the independent quote service to derive volatility for periods greater than three years.
Expected dividend yield is based on current dividend yield held constant over the expected term.
Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s service period for that grant (from the grant date to the date the grant is fully vested).
The effect of the adoption of SFAS 123R on selected line items is as follows for the year ended December 31, 2006:
## Table 1 ##
* No stock option expense was capitalized.
Torchmark management views all stock-based compensation expense as a corporate or Parent Company expense and, therefore, presents it as such in its segment analysis (See Note 13—Business Segments).
It is included in “Other operating expense” in the Consolidated Statements of Operations.
In the fourth quarter of 2005, the FASB issued FASB Staff Position No.123R-3 (FSP123R–3), providing an alternative method for accounting for income taxes related to stock option expensing.
SFAS 123R requires that tax benefits for book purposes previously recorded in excess of actual tax benefits realized at the time of exercise, in addition to a cumulative pool of previously-realized actual tax benefits allowed by SFAS 123R, must be charged to income.
The alternative described in FSP123R–3 is a simplified method of computing this cumulative pool of actual tax benefits.
Torchmark has elected the simplified alternative method.
This election has had no impact on Torchmark’s net income since adoption.
Earnings Per Share: Torchmark presents basic and diluted earnings per share (EPS) on the face of the income statement.
Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period.
Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares.
For more information on earnings per share, see Note 11—Shareholders’ Equity
TORCHMARK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands, except per share data) Note 4—Investments (continued) 77 TMK 2017 FORM 10-K Unrealized gains/loss analysis: The following tables disclose gross unrealized investment losses by class and major sector of investments at December 31, 2017 and December 31, 2016 for the respective periods of time in a loss position.
Torchmark considers these investments to be only temporarily impaired.
ANALYSIS OF GROSS UNREALIZED INVESTMENT LOSSES At December 31, 2017
## Table 2 ##
We increased our gross profit by $163.5 million for the fiscal year ending September 30, 2011 as compared to the prior fiscal year, resulting in a 110 basis point expansion in gross profit margin to 43.7%.
This increase was principally the result of enhanced product mix, lower manufacturing costs as a result of higher factory utilization, and the aforementioned increase in net revenue.
During fiscal 2011 we continued to benefit from higher contribution margins associated with the licensing and/ or sale of intellectual property.
We increased our gross profit by $138.6 million for the fiscal year ended October 1, 2010 as compared to the prior fiscal year, resulting in a 300 basis point expansion in gross profit margin to 42.6%.
This was principally the result of continued factory process and productivity enhancements, product end-to-end yield improvements, year-over-year material cost reductions, targeted capital expenditure investments and the aforementioned increase in net revenue.
During fiscal 2010 we continued to benefit from higher contribution margins associated with the licensing and/ or sale of intellectual property.
RESEARCH AND DEVELOPMENT
## Table 3 ##
Research and development expenses consist primarily of direct personnel costs, costs for pre-production evaluation and testing of new devices, masks and engineering prototypes, share-based compensation expense and design and test tool costs.
The 25.7% increase in research and development expenses in fiscal year 2011 when compared to fiscal year 2010 is principally attributable to higher head count and related employee and share-based compensation costs including those related to the SiGe acquisition.
In addition, we increased design activity and expense in support of increased product development for our target markets.
Research and development expenses decreased as a percentage of net revenue for fiscal year 2011 as a result of the aforementioned increase in net revenue.
The 8.2% increase in research and development expenses in fiscal year 2010 when compared to fiscal year 2009 is principally attributable to higher head count and related compensation costs.
In addition, the Company had increased design activity resulting in higher mask, prototype and materials costs in support of increased product development for our target markets.
Research and development expenses decreased as a percentage of net revenue for fiscal year 2010 as a result of the aforementioned increase in net revenue.
SELLING, GENERAL AND ADMINISTRATIVE

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2001</td></tr><tr><td>Net sales</td><td>$5,370</td></tr><tr><td>Net loss</td><td>$-44</td></tr><tr><td>Basic loss per common share</td><td>$-0.13</td></tr><tr><td>Diluted loss per common share</td><td>$-0.13</td></tr></table>
<table><tr><td></td><td>Increase (Decrease)</td></tr><tr><td>Stock-based compensation expense*</td><td>$6,575</td></tr><tr><td>Income before income taxes</td><td>-6,575</td></tr><tr><td>Income tax (benefit)</td><td>-2,301</td></tr><tr><td>Net income</td><td>-4,274</td></tr><tr><td>Cash flow from operations</td><td>-3,072</td></tr><tr><td>Cash flow from financing activities</td><td>3,072</td></tr><tr><td>Basic earnings per share</td><td>-.04</td></tr><tr><td>Diluted earnings per share</td><td>-.04</td></tr><tr><td>* No stock option expense was capitalized.</td><td></td></tr></table>
<table><tr><td></td><td colspan="2">Less thanTwelve Months</td><td colspan="2">Twelve Monthsor Longer</td><td colspan="2">Total</td></tr><tr><td>Description of Securities</td><td>FairValue</td><td>UnrealizedLoss</td><td>Fair Value</td><td>UnrealizedLoss</td><td>Fair Value</td><td>UnrealizedLoss</td></tr><tr><td>Fixed maturities available for sale:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Investment grade securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Government direct, guaranteed, and government-sponsored enterprises</td><td>$34,388</td><td>$-422</td><td>$47,514</td><td>$-951</td><td>$81,902</td><td>$-1,373</td></tr><tr><td>States, municipalities and political subdivisions</td><td>4,561</td><td>-21</td><td>1,771</td><td>-9</td><td>6,332</td><td>-30</td></tr><tr><td>Foreign governments</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Corporates, by sector:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Financial</td><td>133,080</td><td>-652</td><td>35,302</td><td>-1,429</td><td>168,382</td><td>-2,081</td></tr><tr><td>Utilities</td><td>48,562</td><td>-569</td><td>32,345</td><td>-729</td><td>80,907</td><td>-1,298</td></tr><tr><td>Energy</td><td>23,463</td><td>-81</td><td>67,775</td><td>-3,682</td><td>91,238</td><td>-3,763</td></tr><tr><td>Metals and mining</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other corporate sectors</td><td>220,661</td><td>-2,312</td><td>163,886</td><td>-4,257</td><td>384,547</td><td>-6,569</td></tr><tr><td>Total corporates</td><td>425,766</td><td>-3,614</td><td>299,308</td><td>-10,097</td><td>725,074</td><td>-13,711</td></tr><tr><td>Other asset-backed securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Redeemable preferred stocks, by sector:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Utilities</td><td>—</td><td>—</td><td>5,953</td><td>-97</td><td>5,953</td><td>-97</td></tr><tr><td>Total redeemable preferred stocks</td><td>—</td><td>—</td><td>5,953</td><td>-97</td><td>5,953</td><td>-97</td></tr><tr><td>Total investment grade securities</td><td>464,715</td><td>-4,057</td><td>354,546</td><td>-11,154</td><td>819,261</td><td>-15,211</td></tr><tr><td>Below investment grade securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>States, municipalities and political subdivisions</td><td>200</td><td>-105</td><td>—</td><td>—</td><td>200</td><td>-105</td></tr><tr><td>Corporates, by sector:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Financial</td><td>—</td><td>—</td><td>84,432</td><td>-21,311</td><td>84,432</td><td>-21,311</td></tr><tr><td>Energy</td><td>8,114</td><td>-104</td><td>75,204</td><td>-21,525</td><td>83,318</td><td>-21,629</td></tr><tr><td>Metals and mining</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other corporate sectors</td><td>25,334</td><td>-5,066</td><td>54,383</td><td>-8,981</td><td>79,717</td><td>-14,047</td></tr><tr><td>Total corporates</td><td>33,448</td><td>-5,170</td><td>214,019</td><td>-51,817</td><td>247,467</td><td>-56,987</td></tr><tr><td>Collateralized debt obligations</td><td>—</td><td>—</td><td>12,347</td><td>-7,653</td><td>12,347</td><td>-7,653</td></tr><tr><td>Redeemable preferred stocks, by sector:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Financial</td><td>—</td><td>—</td><td>24,376</td><td>-2,727</td><td>24,376</td><td>-2,727</td></tr><tr><td>Total redeemable preferred stocks</td><td>—</td><td>—</td><td>24,376</td><td>-2,727</td><td>24,376</td><td>-2,727</td></tr><tr><td>Total below investment grade securities</td><td>33,648</td><td>-5,275</td><td>250,742</td><td>-62,197</td><td>284,390</td><td>-67,472</td></tr><tr><td>Total fixed maturities</td><td>$498,363</td><td>$-9,332</td><td>$605,288</td><td>$-73,351</td><td>$1,103,651</td><td>$-82,683</td></tr></table>
<table><tr><td></td><td colspan="5">Fiscal Years Ended</td></tr><tr><td></td><td>September 30,2011</td><td>Change</td><td>October 1,2010</td><td>Change</td><td>October 2,2009</td></tr><tr><td>(dollars in thousands)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Research and development</td><td>$168,637</td><td>25.7%</td><td>$134,140</td><td>8.2%</td><td>$123,996</td></tr><tr><td>% of net revenue</td><td>11.9%</td><td></td><td>12.5%</td><td></td><td>15.4%</td></tr></table>

Question: what percentage of the total restructuring charges during the year ended september 27 , 2003 were severance costs?
Answer: 0.27612
Reasoning program: divide(7.4,26.8)