higher in the first half of the year, but declined during the second half of the year reflecting the passthrough to customers of lower resin input costs.
However, average margins benefitted from a more favorable mix of products sold.
Raw material costs were lower, primarily for resins.
Freight costs were also favorable, while operating costs increased.
Shorewood sales volumes in 2009 declined from 2008 levels reflecting weaker demand in the home entertainment segment and a decrease in tobacco segment orders as customers have shifted production outside of the United States, partially offset by higher shipments in the consumer products segment.
Average sales margins improved reflecting a more favorable mix of products sold.
Raw material costs were higher, but were partially offset by lower freight costs.
Operating costs were favorable, reflecting benefits from business reorganization and cost reduction actions taken in 2008 and 2009.
Charges to restructure operations totaled $7 million in 2009 and $30 million in 2008.
Entering 2010, Coated Paperboard sales volumes are expected to increase, while average sales price realizations should be comparable to 2009 fourth-quarter levels.
Raw material costs are expected to be significantly higher for wood, energy and chemicals, but planned maintenance downtime costs will decrease.
Foodservice sales volumes are expected to remain about flat, but average sales price realizations should improve slightly.
Input costs for resins should be higher, but will be partially offset by lower costs for bleached board.
Shorewood sales volumes are expected to decline reflecting seasonal decreases in home entertainment segment shipments.
Operating costs are expected to be favorable reflecting the benefits of business reorganization efforts.
EUROPEAN CONSUMER PACKAGING net sales in 2009 were $315 million compared with $300 million in 2008 and $280 million in 2007.
Operating earnings in 2009 of $66 million increased from $22 million in 2008 and $30 million in 2007.
Sales volumes in 2009 were higher than in 2008 reflecting increased shipments to export markets.
Average sales margins declined due to increased shipments to lowermargin export markets and lower average sales prices in Western Europe.
Entering 2010, sales volumes for the first quarter are expected to remain strong.
Average margins should improve reflecting increased sales price realizations and a more favorable geographic mix of products sold.
Input costs are expected to be higher due to increased wood prices in Poland and annual energy tariff increases in Russia.
ASIAN CONSUMER PACKAGING net sales were $545 million in 2009 compared with $390 million in 2008 and $330 million in 2007.
Operating earnings in 2009 were $24 million compared with a loss of $13 million in 2008 and earnings of $12 million in 2007.
The improved operating earnings in 2009 reflect increased sales volumes, higher average sales margins and lower input costs, primarily for chemicals.
The loss in 2008 was primarily due to a $12 million charge to revalue pulp inventories at our Shandong International Paper and Sun Coated Paperboard Co. , Ltd.  joint venture and start-up costs associated with the joint venture’s new folding box board paper machine.
Distribution xpedx, our distribution business, markets a diverse array of products and supply chain services to customers in many business segments.
Customer demand is generally sensitive to changes in general economic conditions, although the commercial printing segment is also dependent on consumer advertising and promotional spending.
Distribution’s margins are relatively stable across an economic cycle.
Providing customers with the best choice and value in both products and supply chain services is a key competitive factor.
Additionally, efficient customer service, cost-effective logistics and focused working capital management are key factors in this segment’s profitability.
## Table 0 ##
DISTRIBUTION’S 2009 annual sales decreased 18% from 2008 and 11% from 2007 while operating profits in 2009 decreased 51% compared with 2008 and 54% compared with 2007.
Annual sales of printing papers and graphic arts supplies and equipment totaled $4.1 billion in 2009 compared with $5.2 billion in 2008 and $4.7 billion in 2007, reflecting weak economic conditions in 2009.
Trade margins as a percent of sales for printing papers increased from 2008 but decreased from 2007 due to a higher mix of lower margin direct shipments from manufacturers.
Revenue from packaging products was $1.3 billion in 2009 compared with $1.7 billion in 2008 and $1.5 billion in 2007.
Trade margins as a percent of sales for packaging products were higher than in the past two years reflecting an improved product and service mix.
Facility supplies annual revenue was $1.1 billion in 2009, essentially
Table of Contents Part II, Item 8 In the fourth quarter of 2003, Schlumberger sold the subordinated note for $177 million and realized a pretax gain of $32 million ($20 million after-tax).
At December 31, 2003 the carrying value of Schlumberger’s investment in Hanover Compressor common stock exceeded the market value.
As required by generally accepted accounting principles (SFAS 115), Schlumberger wrote down its investment to the fair market value of $91.4 million at December 31, 2003 and recorded a pretax and after-tax charge of $81.2 million.
As part of the sale agreement, Hanover Compressor had an option to put its interest in the PIGAP II joint venture in Venezuela back to Schlumberger if certain financing conditions were not met.
Hanover Compressor did not exercise this option.4.
Charges – Continuing Operations Schlumberger recorded the following charges/credits in continuing operations: In December 2003, a pretax gain of $32 million ($20 million after-tax, $0.03 per share – diluted) resulting from the sale of the Hanover Compressor note.
The pretax gain is classified in Interest and other income in the Consolidated Statement of Income.
In December 2003, a pretax and after-tax charge of $81 million ($0.13 per share – diluted) relating to the write-down to fair market value of Schlumberger’s investment in Hanover Compressor common stock.
The write-down was required by SFAS 115 as the decline in the market value of the stock is “other than temporary” and is classified in Cost of goods sold and services in the Consolidated Statement of Income.
In September 2003, a pretax multiclient library impairment charge of $398 million ($205 million, $0.34 per share – diluted, after a tax credit of $106 million and a minority interest of $88 million), following an evaluation of current and expected future conditions in the seismic sector, a pretax seismic vessel impairment charge of $54 million ($38 million, $0.06 per share – diluted, after a minority interest credit of $16 million) and a $31 million pretax and after-tax gain ($0.05 per share – diluted) on the sale of a drilling rig.
The pretax amounts are classified in Cost of goods sold and services in the Consolidated Statement of Income.
Between June 12 and July 22, 2003 subsidiaries of Schlumberger launched and concluded tender offers to acquire three series of outstanding European bonds; $1.3 billion of principal was repurchased for a total cost of $1.5 billion, which included the premium, and issuing and tender costs.
The total charge on the tenders was $168 million, of which $81.5 million was recorded in the second quarter of 2003, when the first tender closed, with the balance of $86.3 million recorded in the third quarter of 2003.
The total of the above 2003 charges was $440 million.
A summary is as follows:
## Table 1 ##
In December 2002, a net charge of $3,081 million ($5.30 per share).
On December 10, 2002, Schlumberger announced that the Board of Directors had approved an updated strategy for its SchlumbergerSema business segment.
The new strategic plan outlook, current business values and the reorganization of SchlumbergerSema constitute significant events that required an impairment analysis to be performed in accordance with FAS 142.
SchlumbergerSema was ‘valued’ on a stand-alone basis; each reporting unit within SchlumbergerSema
the capability of existing Q-Land* systems and is currently acquiring data from 53,000 live point-receiver channels in conjunction with the WesternGeco DX-80* Desert Explorer with MD Sweep* technology introduced the previous year.
The outlook for 2010 remains largely dependent on the prospects for the general economy.
At the end of the third quarter of 2009, we indicated that we were encouraged that signs were emerging that demand for oil and gas would begin to increase.
Consensus forecasts now predict that oil demand in 2010 will increase, particularly in the developing world, for the first time since 2007.
As a result we feel that oil prices are likely to be sustained at current levels and that as our customers’ confidence grows, their exploration and production budgets will increase.
We feel that considerable leverage to increase investment exists in offshore markets, in Russia, as well as in certain emerging investment opportunities such as Iraq.
These events will be dependent on continued increases in economic growth in the second half of the year beyond the current government stimulus packages.
For natural gas activity we remain a great deal more cautious.
Despite signs of some recovery in industrial demand as well as the recent cold weather, we consider that markets remain generally oversupplied.
Increased LNG flows together with further capacity being added in 2010, as well as the general uncertainty over the decline rates of unconventional gas production, have the potential to limit the current increase in the North American gas drilling rig count.
We anticipate that 2010 will be a better year for multiclient seismic, and for activity in land seismic particularly in Middle East and North Africa.
While Marine activity is expected to be reasonably robust, pricing improvements will be limited due to continued new capacity additions.
Longer term we remain confident that considerably increased spending will be necessary to maintain sufficient reserves and production of hydrocarbons to meet the world’s needs.
Our technology portfolio and worldwide infrastructure mean we are strongly positioned to capture growth opportunities as our customers begin to increase their investment.
The following discussion and analysis of results of operations should be read in conjunction with the Consolidated Financial Statements.
Fourth Quarter 2009 Results
## Table 2 ##
Pretax operating income represents the segments’ income before taxes and noncontrolling interests.
The pretax operating income excludes such items as corporate expenses and interest income and interest expense not allocated to the segments as well as the charges described in detail in Note 3 to the Consolidated Financial Statements, interest on postretirement medical benefits and stock-based compensation costs.
Fourth-quarter revenue was $5.74 billion versus $5.43 billion in the third quarter of 2009.
Income from continuing operations attributable to Schlumberger was $817 million – an increase of 4% sequentially.
Oilfield Services fourth-quarter revenue of $5.17 billion was up 4% compared to the third quarter of 2009.
Sequential pretax segment operating income of $1.01 billion was down 3%.
WesternGeco fourth-quarter revenue of $549 million was up 19% sequentially.
Fourth-quarter pretax segment operating income of $115 million was up 89% compared to the third quarter of 2009.
an initial conversion price of $40.00 per share).
The conversion rate may be adjusted for certain events, but it will not be adjusted for accrued interest.
On or after June 6, 2010, Schlumberger may redeem for cash all or part of the debentures, upon notice to the holders, at the redemption prices of 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of redemption.
On June 1, 2010, June 1, 2013 and June 1, 2018, holders may require Schlumberger to repurchase their Series B debentures.
The repurchase price will be 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price for repurchases on June 1, 2010 will be paid in cash.
On the other repurchase dates, Schlumberger may choose to pay the repurchase price in cash or common stock or any combination of cash and common stock.
In addition, upon the occurrence of a Fundamental Change (defined as a change in control or a termination of trading of Schlumberger’s common stock), holders may require Schlumberger to repurchase all or a portion of their debentures for an amount equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price may be paid in cash, Schlumberger common stock (or if Schlumberger is not the surviving entity in a merger, the securities of the surviving entity) or a combination of cash and the applicable securities, at Schlumberger’s option.
The applicable securities will be valued at 99% of their market price.
Schlumberger’s option to pay the repurchase price with securities is subject to certain conditions.
The debentures will mature on June 1, 2023 unless earlier redeemed or repurchased.
During 2008 and 2007, $95 million and $34 million of the Series B debentures were converted into 2.4 million and 0.9 million shares of Schlumberger common stock, respectively.
There were $321 million of the Series B debentures outstanding at both December 31, 2009 and December 31, 2008.
The fair value of the Series B debentures at December 31, 2009 and December 31, 2008 was $527 million and $398 million, respectively, and was based on quoted market prices.
Other Long-term Debt Other Long-term Debt consists of the following:
## Table 3 ##
The fair value adjustment presented above represents changes in the fair value of the portion of Schlumberger’s fixed rate debt that is hedged through the use of interest rate swaps.
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.  an initial conversion price of $40.00 per share).
The conversion rate may be adjusted for certain events, but it will not be adjusted for accrued interest.
On or after June 6, 2010, Schlumberger may redeem for cash all or part of the debentures, upon notice to the holders, at the redemption prices of 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of redemption.
On June 1, 2010, June 1, 2013 and June 1, 2018, holders may require Schlumberger to repurchase their Series B debentures.
The repurchase price will be 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price for repurchases on June 1, 2010 will be paid in cash.
On the other repurchase dates, Schlumberger may choose to pay the repurchase price in cash or common stock or any combination of cash and common stock.
In addition, upon the occurrence of a Fundamental Change (defined as a change in control or a termination of trading of Schlumberger¡¯s common stock), holders may require Schlumberger to repurchase all or a portion of their debentures for an amount equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price may be paid in cash, Schlumberger common stock (or if Schlumberger is not the surviving entity in a merger, the securities of the surviving entity) or a combination of cash and the applicable securities, at Schlumberger¡¯s option.
The applicable securities will be valued at 99% of their market price.
Schlumberger¡¯s option to pay the repurchase price with securities is subject to certain conditions.
The debentures will mature on June 1, 2023 unless earlier redeemed or repurchased.
During 2008 and 2007, $95 million and $34 million of the Series B debentures were converted into 2.4 million and 0.9 million shares of Schlumberger common stock, respectively.
There were $321 million of the Series B debentures outstanding at both December 31, 2009 and December 31, 2008.
The fair value of the Series B debentures at December 31, 2009 and December 31, 2008 was $527 million and $398 million, respectively, and was based on quoted market prices.
Other Long-term Debt Other Long-term Debt consists of the following:
The fair value adjustment presented above represents changes in the fair value of the portion of Schlumberger¡¯s fixed rate debt that is hedged through the use of interest rate swaps.
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.
During the first quarter of 2009, Schlumberger entered into a €3.0 billion Euro Medium Term Note program.
This program provides for the issuance of various types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies.
Schlumberger issued €1.0 billion 4.50% Guaranteed Notes due 2014 in the first quarter of 2009 under this program.
Schlumberger entered into agreements to swap these euro notes
The following discussion and analysis of results of operations should be read in conjunction with the Consolidated Financial Statements.
Fourth Quarter 2012 Results Product Groups
## Table 4 ##
Geographic Areas
## Table 5 ##
(1) Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with intangible assets recorded as a result of the 2010 acquisition of Smith International, Inc.  (“Smith”) and certain other nonoperating items.
(2) Excludes interest income included in the segments’ income (fourth quarter 2012 – $- million; third quarter 2012 – $- million).
(3) Excludes interest expense included in the segments’ income (fourth quarter 2012–$3 million; third quarter 2012 – $3 million).
(4) Charges and credits are described in detail in Note 3 to the Consolidated Financial Statements.
Oilfield Services Fourth-quarter revenue of $11.17 billion increased $567 million or 5% sequentially, on robust international activity.
Of the revenue increase, approximately 36% came from the typical year-end surge in product and software sales, and 12% came from the increase in WesternGeco multiclient sales.
Reservoir Characterization Group revenue grew 8% to reach $3.2 billion, while Drilling Group revenue of $4.1 billion was 2% higher.
Production Group revenue increased 7% to $3.9 billion.
Geographically, International revenue of $7.6 billion increased $409 million or 6% sequentially, while North America revenue of $3.4 billion grew by $118 million or 4% sequentially.

Tables referenced above, in order (Table 0 first):
<table><tr><td><i>In millions</i></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Sales</td><td>$6,525</td><td>$7,970</td><td>$7,320</td></tr><tr><td>Operating Profit</td><td>50</td><td>103</td><td>108</td></tr></table>
<table><tr><td>Gain on sale of Hanover Compressor note</td><td>$-32</td></tr><tr><td>Write-down of Hanover Compressor stock</td><td>81</td></tr><tr><td>Multiclient seismic library impairment</td><td>398</td></tr><tr><td>Seismic vessel impairment</td><td>54</td></tr><tr><td>Gain on sale of rig</td><td>-31</td></tr><tr><td>Bond repurchase premium and costs</td><td>168</td></tr><tr><td>Charges before tax and Minority interest</td><td>638</td></tr><tr><td>Tax</td><td>-94</td></tr><tr><td>Minority interest</td><td>-104</td></tr><tr><td></td><td>$440</td></tr></table>
<table><tr><td></td><td> Fourth Qtr. 2009</td><td>Third Qtr. 2009</td><td>% change</td></tr><tr><td> <i>OILFIELD SERVICES</i></td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>$5,170</td><td>$4,953</td><td>4%</td></tr><tr><td>Pretax Operating Income</td><td>$1,006</td><td>$1,042</td><td>-3%</td></tr><tr><td> <i>WESTERNGECO</i></td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>$549</td><td>$463</td><td>19%</td></tr><tr><td>Pretax Operating Income</td><td>$115</td><td>$61</td><td>89%</td></tr></table>
<table><tr><td> As at December 31,</td><td> 2009</td><td> 2008</td></tr><tr><td>5.25% Guaranteed Notes due 2013</td><td>$727</td><td>$714</td></tr><tr><td>6.5% Notes due 2012</td><td>649</td><td>647</td></tr><tr><td>5.875% Guaranteed Bonds due 2011</td><td>362</td><td>355</td></tr><tr><td>4.50% Guaranteed Notes due 2014</td><td>1,449</td><td>–</td></tr><tr><td>3.00% Guaranteed Notes due 2013</td><td>449</td><td>–</td></tr><tr><td>5.14% Guaranteed Notes due 2010</td><td>–</td><td>203</td></tr><tr><td>Commercial paper borrowings</td><td>358</td><td>771</td></tr><tr><td>Other variable rate debt</td><td>360</td><td>682</td></tr><tr><td></td><td>4,354</td><td>3,372</td></tr><tr><td>Fair value adjustment – hedging</td><td>1</td><td>–</td></tr><tr><td></td><td>$4,355</td><td>$3,372</td></tr></table>
<table><tr><td></td><td colspan="2">Fourth Quarter 2012</td><td colspan="2">(Stated in millions) Third Quarter 2012</td></tr><tr><td></td><td>Revenue</td><td>Income before taxes</td><td>Revenue</td><td>Income before taxes</td></tr><tr><td> Oilfield Services</td><td></td><td></td><td></td><td></td></tr><tr><td>Reservoir Characterization</td><td>$3,150</td><td>$917</td><td>$2,910</td><td>$838</td></tr><tr><td>Drilling</td><td>4,137</td><td>696</td><td>4,048</td><td>733</td></tr><tr><td>Production</td><td>3,924</td><td>590</td><td>3,675</td><td>548</td></tr><tr><td>Eliminations & other</td><td>-37</td><td>-39</td><td>-25</td><td>23</td></tr><tr><td></td><td>11,174</td><td>2,164</td><td>10,608</td><td>2,142</td></tr><tr><td> Corporate & other<sup>-1</sup></td><td>–</td><td>-180</td><td>–</td><td>-176</td></tr><tr><td> Interest income<sup>-2</sup></td><td>–</td><td>6</td><td>–</td><td>8</td></tr><tr><td> Interest expense<sup>-3</sup></td><td>–</td><td>-90</td><td>–</td><td>-85</td></tr><tr><td> Charges & credits<sup>-4</sup> </td><td>–</td><td>-93</td><td>–</td><td>-32</td></tr><tr><td></td><td>$11,174</td><td>$1,807</td><td>$10,608</td><td>$1,857</td></tr></table>
<table><tr><td></td><td colspan="2">Fourth Quarter 2012</td><td colspan="2">Third Quarter 2012</td></tr><tr><td></td><td> Revenue</td><td>Income before taxes</td><td> Revenue</td><td>Income before taxes</td></tr><tr><td> Oilfield Services</td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$3,409</td><td>$655</td><td>$3,290</td><td>$610</td></tr><tr><td>Latin America</td><td>2,071</td><td>377</td><td>1,860</td><td>333</td></tr><tr><td>Europe/CIS/Africa</td><td>2,958</td><td>579</td><td>2,985</td><td>646</td></tr><tr><td>Middle East & Asia</td><td>2,577</td><td>601</td><td>2,352</td><td>570</td></tr><tr><td>Eliminations & other</td><td>159</td><td>-48</td><td>121</td><td>-17</td></tr><tr><td></td><td>11,174</td><td>2,164</td><td>10,608</td><td>2,142</td></tr><tr><td>Corporate & other<sup>-1</sup></td><td>–</td><td>-180</td><td>–</td><td>-176</td></tr><tr><td>Interest income<sup>-2</sup></td><td>–</td><td>6</td><td>–</td><td>8</td></tr><tr><td>Interest expense<sup>-3</sup></td><td>–</td><td>-90</td><td>–</td><td>-85</td></tr><tr><td>Charges & credits<sup>-4</sup></td><td>–</td><td>-93</td><td>–</td><td>-32</td></tr><tr><td></td><td>$11,174</td><td>$1,807</td><td>$10,608</td><td>$1,857</td></tr></table>

Question: what was the percentage increase in annual sales of printing papers and graphic arts supplies and equipment from 2007 to 2008?
Answer: 0.10638
Reasoning program: subtract(5.2,4.7), divide(#0,4.7)