5.
Income Taxes (continued) The effective tax rate of zero differs from the statutory rate of 34% primarily due to the inability of the Company to recognize deferred tax assets for its operating losses and tax credits.
Of the total valuation allowance, approximately $2,400,000 relates to stock option compensation deductions.
The tax benefit associated with the stock option compensation deductions will be credited to equity when realized.6.
Commitments and Contingencies The Company applies the disclosure provisions of FIN No.45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Guarantees of Indebtedness of Others, and Interpretation of FASB Statements No.5, 57 and 107 and Rescission of FASB Interpretation No.34 (FIN No.45) to its agreements that contain guarantee or indemnification clauses.
These disclosure provisions expand those required by SFAS No.5, Accounting for Contingencies, by requiring that guarantors disclose certain types of guarantees, even if the likelihood of requiring the guarantor’s performance is remote.
The following is a description of arrangements in which the Company is a guarantor.
Product Warranties – The Company routinely accrues for estimated future warranty costs on its product sales at the time of sale.
The AB5000 and BVS products are subject to rigorous regulation and quality standards.
While the Company engages in extensive product quality programs and processes, including monitoring and evaluating the quality of component suppliers, its warranty obligation is affected by product failure rates.
Operating results could be adversely effected if the actual cost of product failures exceeds the estimated warranty provision.
Patent indemnifications – In many sales transactions, the Company indemnifies customers against possible claims of patent infringement caused by the Company’s products.
The indemnifications contained within sales contracts usually do not include limits on the claims.
The Company has never incurred any material costs to defend lawsuits or settle patent infringement claims related to sales transactions.
Under the provisions of FIN No.45, intellectual property indemnifications require disclosure only.
As of March 31, 2004, the Company had entered into leases for its facilities, including its primary operating facility in Danvers, Massachusetts, with terms through fiscal 2010.
The Company has elected not to exercise a buyout option available under its primary lease that would have allowed for early termination in 2005.
Total rent expense under these leases, included in the accompanying consolidated statements of operations, was approximately $856,000, $823,000 and $821,000 for the fiscal years ended March 31, 2002, 2003 and 2004, respectively.
During the fiscal year ended March 31, 2000, the Company entered into 36-month operating leases totaling approximately $644,000 for the lease of office furniture.
These leases ended in fiscal year 2003 and at the Company’s option the furniture was purchased.
Rental expense recorded for these leases during the fiscal years ended March 31, 2002 and 2003 was approximately $215,000 and $127,000 respectively.
During fiscal 2000, the Company entered into a 36-month capital lease for computer equipment and software for approximately $221,000.
This lease ended in fiscal year 2003 and at the Company’s option these assets were purchased.
Future minimum lease payments under all non-cancelable operating leases as of March 31, 2004 are approximately as follows (in thousands):
## Table 0 ##
From time-to-time, the Company is involved in legal and administrative proceedings and claims of various types.
While any litigation contains an element of uncertainty, management, in consultation with the Company’s general counsel, presently believes that the outcome of each such other proceedings or claims which are pending or known to be threatened, or all of them combined, will not have a material adverse effect on the Company.
At December 31, 2014, the fair value of the qualified pension plan assets was less than both the accumulated benefit obligation and the projected benefit obligation.
The nonqualified pension plan is unfunded.
Contributions from PNC and, in the case of the postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans.
The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in Table 109.
In March 2010, the Patient Protection and Affordable Care Act (PPACA) was enacted.
Key aspects of the PPACA which are reflected in our consolidated financial statements include the excise tax on high-cost health plans beginning in 2018 and fees for the Transitional Reinsurance Program and the PatientCentered Outcomes Research Institute.
These provisions did not have a significant effect on our postretirement medical liability or costs.
The Early Retiree Reinsurance Program (ERRP) was established by the PPACA.
Congress appropriated funding of $5.0 billion for this temporary ERRP to provide financial assistance to employers, unions, and state and local governments to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare, including their spouses, surviving spouses, and dependents.
In 2014, PNC did not receive reimbursement related to the 2013 plan year and did not receive reimbursement in 2013 related to the 2012 plan year.
In 2012, the amount of reimbursement PNC received related to the 2011 plan year was not significant.
PNC Pension Plan Assets Assets related to our qualified pension plan (the Plan) are held in trust (the Trust).
Effective July 1, 2011, the trustee is The Bank of New York Mellon.
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, U. S.  government and agency securities, corporate debt securities, and real estate investments.
The Plan held no PNC common stock as of December 31, 2014 and December 31, 2013.
The PNC Financial Services Group, Inc.
Administrative Committee (the Administrative Committee) adopted the Pension Plan Investment Policy Statement, including target allocations and allowable ranges, on August 13, 2008.
On February 25, 2010, the Administrative Committee amended the investment policy to include a dynamic asset allocation approach and also updated target allocation ranges for certain asset categories.
On February 24, 2014, the Administrative Committee amended the investment policy to update the target allocation ranges for certain asset categories.
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 expenses 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.
Under the dynamic asset allocation strategy, scenarios are outlined in which the Administrative Committee has the ability to make short to intermediate term asset allocation shifts based on factors such as the Plan’s funded status, the Administrative Committee’s view of return on equities relative to long term expectations, the Administrative Committee’s view on the direction of interest rates and credit spreads, and other relevant financial or economic factors which would be expected to impact the ability of the Trust to meet its obligation to participants and beneficiaries.
Accordingly, the allowable asset allocation ranges have been updated to incorporate the flexibility required by the dynamic allocation policy.
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 2014 and 2013, and the target allocation range at the end of 2014, by asset category, are as follows.
Table 110: Asset Strategy Allocations
## Table 1 ##
before permanently restructuring the loan into a HAMP modification.
Subsequent to successful borrower performance under the trial payment period, we will capitalize the original contractual amount past due, to include accrued interest and fees receivable, and restructure the loan’s contractual terms, along with bringing the restructured account current.
As the borrower is often already delinquent at the time of participation in the HAMP trial payment period, generally enrollment in the program does not significantly increase the ALLL.
If the trial payment period is unsuccessful, the loan will be evaluated for further action based upon our existing policies.
Residential conforming and certain residential construction loans have been permanently modified under HAMP or, if they do not qualify for a HAMP modification, under PNCdeveloped programs, which in some cases may operate similarly to HAMP.
These programs first require a reduction of the interest rate followed by an extension of term and, if appropriate, deferral of principal payments.
As of December 31, 2014 and December 31, 2013, 6,349 accounts with a balance of $.9 billion and 5,834 accounts with a balance of $.9 billion, respectively, of residential real estate loans had been modified under HAMP and were still outstanding on our balance sheet.
Commercial Loan Modifications and Payment Plans Modifications of terms for commercial loans are based on individual facts and circumstances.
Commercial loan modifications may involve reduction of the interest rate, extension of the loan term and/or forgiveness of principal.
Modified commercial loans are usually already nonperforming prior to modification.
We evaluate these modifications for TDR classification based upon whether we granted a concession to a borrower experiencing financial difficulties.
Additional detail on TDRs is discussed below as well as in Note 3 Asset Quality in the Notes To Consolidated Financial Statements of this Report.
We have established certain commercial loan modification and payment programs for small business loans, Small Business Administration loans, and investment real estate loans.
As of December 31, 2014 and December 31, 2013, $34 million and $47 million, respectively, in loan balances were covered under these modification and payment plan programs.
Of these loan balances, $12 million and $16 million have been determined to be TDRs as of December 31, 2014 and December 31, 2013, respectively.
Troubled Debt Restructurings A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.
TDRs result from our loss mitigation activities and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral.
Additionally, TDRs also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC.
For the twelve months ended December 31, 2014, $1.2 billion of Consumer loans held for sale, loans accounted for under the fair value option and pooled purchased impaired loans, as well as certain government insured or guaranteed loans, were excluded from the TDR population.
The comparable amount for the twelve months ended December 31, 2013 was $2.3 billion.
Table 39: Summary of Troubled Debt Restructurings (a)
## Table 2 ##
(a) Amounts in table represent recorded investment, which includes the unpaid principal balance plus accrued interest and net accounting adjustments, less any charge-offs.
Recorded investment does not include any associated valuation allowance.
(b) Accruing loans have demonstrated a period of at least six months of performance under the restructured terms and are excluded from nonperforming loans.
Loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC and loans to borrowers not currently obligated to make principal and interest payments under the restructured terms are not returned to accrual status.
Total TDRs decreased $156 million, or 6%, during 2014.
Nonperforming TDRs totaled $1.4 billion, which represents approximately 55% of total nonperforming loans, and 53% of total TDRs.
TDRs that are performing, including credit card loans, are excluded from nonperforming loans.
These TDRs decreased $15 million, or 1%, during 2014 to $1.2 billion as of December 31, 2014.
Generally, the accruing category is comprised of loans where borrowers have been performing under the restructured terms for at least six consecutive months.
Loans where borrowers have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to PNC and loans to borrowers not currently obligated to make both principal and interest payments under the restructured terms are not returned to accrual status.
See Note 3 Asset Quality in the Notes To Consolidated Financial Statements in this Report for additional information.
SUMMARY OF LOAN LOSS EXPERIENCE
## Table 3 ##
(a) Includes $468 million in write-offs of purchased impaired loans in 2015 due to the change in derecognition policy effective December 31, 2015 for certain consumer purchased impaired loans.
See Note 1 Accounting Policies in our 2015 Form 10-K for additional information.
The following table presents the assignment of the allowance for loan and lease losses and the categories of loans as a percentage of total loans.
Changes in the allocation over time reflect the changes in loan portfolio composition, risk profile and refinements to reserve methodologies.
ALLOCATION OF ALLOWANCE FOR LOAN AND LEASE LOSSES
## Table 4 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td>Year ending March 31,</td><td>Operating Leases</td></tr><tr><td>2005</td><td>$781</td></tr><tr><td>2006</td><td>776</td></tr><tr><td>2007</td><td>769</td></tr><tr><td>2008</td><td>772</td></tr><tr><td>2009</td><td>772</td></tr><tr><td>Thereafter</td><td>708</td></tr><tr><td>Total future minimum lease payments</td><td>$4,578</td></tr></table>
<table><tr><td></td><td>Target Allocation Range</td><td colspan="2">Percentage of Plan Assets by Strategyat December 31</td></tr><tr><td> PNC Pension Plan </td><td></td><td>2014</td><td>2013</td></tr><tr><td>Asset Category</td><td></td><td></td><td></td></tr><tr><td>Domestic Equity</td><td>20 – 40%</td><td>34%</td><td>33%</td></tr><tr><td>International Equity</td><td>10 – 25%</td><td>23%</td><td>23%</td></tr><tr><td>Private Equity</td><td>0 – 15%</td><td>6%</td><td>4%</td></tr><tr><td>Total Equity</td><td>40 – 70%</td><td>63%</td><td>60%</td></tr><tr><td>Domestic Fixed Income</td><td>10 – 40%</td><td>17%</td><td>21%</td></tr><tr><td>High Yield Fixed Income</td><td>0 – 25%</td><td>13%</td><td>13%</td></tr><tr><td>Total Fixed Income</td><td>10 – 65%</td><td>30%</td><td>34%</td></tr><tr><td>Real estate</td><td>0 – 15%</td><td>5%</td><td>5%</td></tr><tr><td>Other</td><td>0 – 5%</td><td>2%</td><td>1%</td></tr><tr><td>Total</td><td></td><td>100%</td><td>100%</td></tr></table>
<table><tr><td>In millions</td><td>December 312014</td><td>December 312013</td></tr><tr><td>Consumer lending:</td><td></td><td></td></tr><tr><td>Real estate-related</td><td>$1,864</td><td>$1,939</td></tr><tr><td>Credit card</td><td>130</td><td>166</td></tr><tr><td>Other consumer</td><td>47</td><td>56</td></tr><tr><td>Total consumer lending</td><td>2,041</td><td>2,161</td></tr><tr><td>Total commercial lending</td><td>542</td><td>578</td></tr><tr><td>Total TDRs</td><td>$2,583</td><td>$2,739</td></tr><tr><td>Nonperforming</td><td>$1,370</td><td>$1,511</td></tr><tr><td>Accruing (b)</td><td>1,083</td><td>1,062</td></tr><tr><td>Credit card</td><td>130</td><td>166</td></tr><tr><td>Total TDRs</td><td>$2,583</td><td>$2,739</td></tr></table>
<table><tr><td>Year ended December 31 – dollars in millions</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Allowance for loan and lease losses – January 1</td><td>$2,589</td><td>$2,727</td><td>3,331</td><td>$3,609</td><td>$4,036</td></tr><tr><td>Gross charge-offs</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>-186</td><td>-332</td><td>-206</td><td>-276</td><td>-395</td></tr><tr><td>Commercial real estate</td><td>-24</td><td>-26</td><td>-44</td><td>-70</td><td>-203</td></tr><tr><td>Equipment lease financing</td><td>-11</td><td>-5</td><td>-5</td><td>-14</td><td>-8</td></tr><tr><td>Home equity</td><td>-123</td><td>-143</td><td>-181</td><td>-275</td><td>-486</td></tr><tr><td>Residential real estate</td><td>-9</td><td>-14</td><td>-24</td><td>-40</td><td>-133</td></tr><tr><td>Credit card</td><td>-182</td><td>-161</td><td>-160</td><td>-163</td><td>-178</td></tr><tr><td>Other consumer</td><td>-251</td><td>-205</td><td>-185</td><td>-183</td><td>-185</td></tr><tr><td>Total charge-offs</td><td>-786</td><td>-886</td><td>-805</td><td>-1,021</td><td>-1,588</td></tr><tr><td>Recoveries</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>81</td><td>117</td><td>170</td><td>207</td><td>248</td></tr><tr><td>Commercial real estate</td><td>28</td><td>51</td><td>66</td><td>84</td><td>93</td></tr><tr><td>Equipment lease financing</td><td>7</td><td>10</td><td>4</td><td>14</td><td>16</td></tr><tr><td>Home equity</td><td>91</td><td>84</td><td>93</td><td>78</td><td>73</td></tr><tr><td>Residential real estate</td><td>18</td><td>9</td><td>13</td><td>26</td><td>4</td></tr><tr><td>Credit card</td><td>21</td><td>19</td><td>21</td><td>21</td><td>22</td></tr><tr><td>Other consumer</td><td>83</td><td>53</td><td>52</td><td>60</td><td>55</td></tr><tr><td>Total recoveries</td><td>329</td><td>343</td><td>419</td><td>490</td><td>511</td></tr><tr><td>Net charge-offs</td><td>-457</td><td>-543</td><td>-386</td><td>-531</td><td>-1,077</td></tr><tr><td>Provision for credit losses</td><td>441</td><td>433</td><td>255</td><td>273</td><td>643</td></tr><tr><td>Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit</td><td>4</td><td>-40</td><td>-2</td><td>-17</td><td>8</td></tr><tr><td>Other (a)</td><td>34</td><td>12</td><td>-471</td><td>-3</td><td>-1</td></tr><tr><td>Allowance for loan and lease losses – December 31</td><td>$2,611</td><td>$2,589</td><td>$2,727</td><td>$3,331</td><td>$3,609</td></tr><tr><td>Allowance as a percentage of December 31:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans (a)</td><td>1.18%</td><td>1.23%</td><td>1.32%</td><td>1.63%</td><td>1.84%</td></tr><tr><td>Nonperforming loans</td><td>140%</td><td>121%</td><td>128%</td><td>133%</td><td>117%</td></tr><tr><td>As a percentage of average loans:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net charge-offs</td><td>.21%</td><td>.26%</td><td>.19%</td><td>.27%</td><td>.57%</td></tr><tr><td>Provision for credit losses</td><td>.20%</td><td>.21%</td><td>.12%</td><td>.14%</td><td>.34%</td></tr><tr><td>Allowance for loan and lease losses (a)</td><td>1.20%</td><td>1.24%</td><td>1.33%</td><td>1.67%</td><td>1.90%</td></tr><tr><td>Allowance as a multiple of net charge-offs</td><td>5.71x</td><td>4.77x</td><td>7.06x</td><td>6.27x</td><td>3.35x</td></tr></table>
<table><tr><td></td><td colspan="2">2017</td><td colspan="2">2016</td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td>December 31 Dollars in millions</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td></tr><tr><td>Commercial</td><td>$1,302</td><td>50.1%</td><td>$1,179</td><td>48.1%</td><td>$1,286</td><td>47.7%</td><td>$1,209</td><td>47.6%</td><td>$1,100</td><td>45.2%</td></tr><tr><td>Commercial real estate</td><td>244</td><td>13.1</td><td>320</td><td>13.8</td><td>281</td><td>13.3</td><td>318</td><td>11.4</td><td>400</td><td>10.8</td></tr><tr><td>Equipment lease financing</td><td>36</td><td>3.6</td><td>35</td><td>3.6</td><td>38</td><td>3.6</td><td>44</td><td>3.7</td><td>47</td><td>3.9</td></tr><tr><td>Home equity</td><td>284</td><td>12.9</td><td>357</td><td>14.2</td><td>484</td><td>15.5</td><td>872</td><td>16.9</td><td>1,051</td><td>18.6</td></tr><tr><td>Residential real estate</td><td>300</td><td>7.8</td><td>332</td><td>7.4</td><td>307</td><td>7.0</td><td>561</td><td>7.0</td><td>642</td><td>7.7</td></tr><tr><td>Credit card</td><td>220</td><td>2.6</td><td>181</td><td>2.5</td><td>167</td><td>2.4</td><td>173</td><td>2.3</td><td>169</td><td>2.3</td></tr><tr><td>Other consumer</td><td>225</td><td>9.9</td><td>185</td><td>10.4</td><td>164</td><td>10.5</td><td>154</td><td>11.1</td><td>200</td><td>11.5</td></tr><tr><td>Total</td><td>$2,611</td><td>100.0%</td><td>$2,589</td><td>100.0%</td><td>$2,727</td><td>100.0%</td><td>$3,331</td><td>100.0%</td><td>$3,609</td><td>100.0%</td></tr></table>

Question: In the year with the most Home equity for Recoveries, what is the growth rate of Commercial for Recoveries ?
Answer: -0.17874
Reasoning program: subtract(170,207), divide(#0,207)