Management’s Discussion and Analysis of Financial Condition and Results of Operations Continued Financial Services operations for 2005,2004 and 2003 were as fo llows:
## Table 0 ##
(a) Inchades the effect of hedging activities that do not qualify for hedge accounting treatment inder FAS 133, inchuding the relted foreign exhange gains and lbsses.
For 2005,2004 amd 2003, the effect was $(34) milion,$(27) milian nd $49 millon, respectively, in operating income for Aircraft Firnamce cnd $2.0l billon,$(122) milion and$(1.
O1) bilion in both revemues and operating income for Capitl Mankets.
(b) Reventues are primcridy from ILFC aircuft lease rentals.
(c) Reveruses, shoun net of interest expense, are primarily from hedged fmancinl positions entered into in connection uith counterparty transac- tions and the effect of hedgng actitities that do not qualify for hedge accounting treatment under FAS 133 descriked in (a) above.
(ddCertuin rnsactions entered into by AlGFP generte tax credits and benefits which re inchuded in income taxes in the consolidated statement of income.
The amount of such tax credits and benefits for the years ended December 31,2005,2004 and 2003 re $67 milion, $107 milion and $123 million, respectively.
(e) Reteuses are primanily fimcmce changes.
(f) Inclhdes $62 million of catastrphe related loses for 2005.
Financial Services Results Financial Services operating income increased in 2005 com- pared to 2004 as well as 2004 compared to 2003.
Fluctuations in revenues and operating income from quarter to quarter are not unusual because of the transaction-oriented nature of Capital Markets operations and the effect of hed ging activities that do not qualify for hedge accounting under FAS 133.
Capital Markets operating income was also negatively affected in 2004 by the costs of the PNC settlement.
See ltem 3.
Legal Proceedings.
To the extent the Financial Services subsidiaries, other than AIGFP, use derivatives to cconomically hedge their assets or liabilities with respect to their future cash flows, and such hedges do not qualify for hedge accounting treatment under FAS 133, the changes in fair value of such derivatives are recorded in realized capital gains(losses) or other revenues.
Financial market conditions in 2005 compared with 2004 were characterized by a general flattening of interest rate yield curves across fixed income markets globally, some tightening of credit spreads and equity valuations that were slightly higher.
AlGFP's 2005 results were adversely affected by customer uncertainty surrounding the negative actions of the rating agencies and the ongoing investigations, as well as the negative effect on its structured notes business of AlG being unable to fully access the capital markets during 2005.
Financial market conditions in 2004 compared with 2003 were characterized by interest rates which were broadly unchanged across fixed income markets globally,a tightening of credit spreads and higher equity valuations.
Capital Markets results in 2004 compared with 2003 reflected a shift in product activity to respond to these conditions.
The most significant component of Capital Markets operat- ing expenses is compensation, which was approximately $481million,$497 million and $616 million in 2005,2004 and 2003, respectively.
The amount of compensation was not affected by gains and losses not qualifying for hedge accounting treatment under FAS 133.
ILFC continued to see net improvements in lease rates, an increase in demand for the newer, modern, fuel efficient aircraft comprising the bulk of ILFC's fleet, and an increasing level of interest from traditional buyers, third-party investors and debt providers for the purchase of aircraft from ILFC's extensive lease portfolio.
During 2005, ILFC's revenues and operating income also increased as a result of adding more aincraft to its fleet and earning higher revenues on existing aircraft.
However, these increases were offset by increasing interest rates, fewer aircraft sales, and leasing related and other reserves.
During the fourth quarter of 2004, ATA Airlines and related entities(ATA) filed for protection under Chapter 11 of the U. S.  Bankruptcey Code.
On the basis of estimates of theprobable outcome of the ATA bankruptcy, ILFC recorded pre- tax charges aggregating $54 million in the fourth quarter of 2004 to write down the value of the ATA securities and guarantees.
Consumer Finance operations, both domestically and inter- nationally, did very well with increased revenues and operating income.
Domestically, the Consumer Finance operations had a record year in 2005.
The relatively low interest rate environ- ment contributed to a high level of mortgage refinancing activity.
Real estate finance receivables increased 21 percent during 2005.
Despite high energy costs, the U. S.  economy continued to expand during the year improving consumer credit quality.
Both AGF's charge-off ratio and delinquency ratio improved over prior years.
However, AGF incurred charges of approximately $62 million for the estimated effect of Hurricane Katrina on customers in the Gulf Coast areas affected by the storm.
A new bankruptcy law went into effect in October 2005.
Consumers, including some of AGF's customers, filed for personal bankruptcy protection under theold law in record numbers in third quarter 2005 ahead of the new law's effective date.
AGF does not anticipate a significanteffect on its carnings from this new law because 80 percent of its finance receivables are real estate loans with adequate collateral and conservative loan-to-value ratios.
Foreign Consumer Finance operations performed well, as the operations in Poland, Argentina and AIG Federal Savings Bank recorded strong carnings growth.
The Hong Kong
Table XV Quarterly Reconciliations to GAAP Financial Measures (1)
## Table 1 ##
(1) Presents reconciliations of non-GAAP financial measures to GAAP financial measures.
We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation.
Other companies may define or calculate these measures differently.
For more information on non-GAAP financial measures and ratios we use in assessing the results of the Corporation, see Supplemental Financial Data on page 28.
(2) The results for 2015 were impacted by the early adoption of new accounting guidance on recognition and measurement of financial instruments.
For additional information, see Executive Summary – Recent Events on page 20
Labor Agreements.
Approximately one-fifth of our employees are represented by labor unions or work councils under 55 company-negotiated agreements.
A number of these agreements expire within any given year.
Historically, we have been successful at renegotiating successor agreements without any material disruption of operating activities.
We expect to renegotiate the terms of nine collective agreements in 2011, covering approximately 2,400 employees.
We do not expect that the renegotiations will, either individually or in the aggregate, have a material impact on our results of operations, financial condition or cash flows.
Product Warranties.
We provide warranties to our customers associated with certain product sales.
We record estimated warranty costs in the period in which the related products are delivered.
The warranty liability recorded at each balance sheet date is generally based on the number of months of warranty coverage remaining for products delivered and the average historical monthly warranty payments.
Warranty obligations incurred in connection with long-term production contracts are accounted for within the contract estimates at completion (EACs).
Our other warranty obligations, primarily for business-jet aircraft, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet.
The changes in the carrying amount of warranty liabilities for each of the past three years were as follows:
## Table 2 ##
* Includes warranty liabilities assumed in connection with acquisitions, foreign exchange translation adjustments and reclassifications.
O.
EQUITY COMPENSATION PLANS Equity Compensation Overview We have various equity compensation plans for employees, as well as for non-employee members of the board of directors.
These include the General Dynamics Corporation 2009 Equity Compensation Plan (Equity Compensation Plan) and the 2009 General Dynamics United Kingdom Share Save Plan (U. K.  Plan).
The purpose of the Equity Compensation Plan is to provide an effective means of attracting, retaining and motivating directors, officers and key employees, and to provide them with incentives to enhance our growth and profitability.
Under the Equity Compensation Plan, awards may be granted to officers, employees or non-employee directors in common stock, options to purchase common stock, restricted shares of common stock, participation units or any combination of these.
Stock options may be granted either as incentive stock options, intended to qualify for capital gain treatment under Section 422 of the Internal Revenue Code (the Code), or as options not qualified under the Code.
All options granted under the Equity Compensation Plan are issued with an exercise price at the fair market value of the common stock on the date of grant.
Awards of stock options vest over two years, with 50 percent of the options vesting in one year and the remaining 50 percent vesting the following year.
Stock options that have been awarded under the Equity Compensation Plan expire five years after the grant date.
We grant stock options to participants in the Equity Compensation Plan on the first Wednesday of March based on the average of the high and low stock prices on that day as listed on the New York Stock Exchange.
Grants of restricted stock are awards of shares of common stock that are released approximately four years after the grant date.
During that restriction period, recipients may not sell, transfer, pledge, assign or otherwise convey their restricted shares to another party.
However, during the restriction period, the recipient is entitled to vote the restricted shares and to retain cash dividends paid on those shares.
Participation units represent obligations that have a value derived from or related to the value of our common stock.
These include stock appreciation rights, phantom stock units, and restricted stock units and are payable in cash or common stock.
Under the U. K.  Plan, our employees located in the United Kingdom may invest designated amounts in a savings account to be used to purchase a specified number of shares of common stock, based on option grants that the employee may receive, at an exercise price of not less than 80 percent of the fair market value of the common stock.
The options may be exercised three or five years after the date of grant, depending on the terms of the specific award.
We issue common stock under our equity compensation plans from treasury stock.
On December 31, 2010, in addition to the shares reserved for issuance upon the exercise of outstanding options, approximately 26 million shares have been authorized for options and restricted stock that may be granted in the future.
Stock-based Compensation Expense The following table details the components of stock-based compensation expense recognized in net earnings in each of the past three years:
## Table 3 ##
Stock-based compensation expense (pretax) is included in G&A expenses.
related expenses incurred by our logistics subsidiaries for external transportation and increased crew transportation and lodging due to volumes and a slower network.
In addition, higher consulting fees and higher contract expenses (including equipment maintenance) increased costs compared to 2013.
Locomotive and freight car material expenses increased in 2014 compared to 2013 due to additional volumes, including the impact of activating stored equipment to address operational issues caused by demand and a slower network.
Expenses for purchased services increased 10% in 2013 compared to 2012 due to logistics management fees, an increase in locomotive overhauls and repairs on jointly owned property.
Depreciation – The majority of depreciation relates to road property, including rail, ties, ballast, and other track material.
Depreciation was up 7% compared to 2013.
A higher depreciable asset base, reflecting higher ongoing capital spending drove the increase.
Depreciation was up 1% in 2013 compared to 2012.
Recent depreciation studies allowed us to use longer estimated service lives for certain equipment, which partially offset the impact of a higher depreciable asset base resulting from larger capital spending in recent years.
Equipment and Other Rents – Equipment and other rents expense primarily includes rental expense that the Railroad pays for freight cars owned by other railroads or private companies; freight car, intermodal, and locomotive leases; and office and other rent expenses.
Higher intermodal volumes and longer cycle times increased short-term freight car rental expense in 2014 compared to 2013.
Lower equipment leases essentially offset the higher freight car rental expense, as we exercised purchase options on some of our leased equipment.
Additional container costs resulting from the logistics management arrangement, and increased automotive shipments, partially offset by lower cycle times drove a $51 million increase in our short-term freight car rental expense in 2013 versus 2012.
Conversely, lower locomotive and freight car lease expenses partially offset the higher freight car rental expense.
Other – Other expenses include state and local taxes, freight, equipment and property damage, utilities, insurance, personal injury, environmental, employee travel, telephone and cellular, computer software, bad debt, and other general expenses.
Higher property taxes, personal injury expense and utilities costs partially offset by lower environmental expense and costs associated with damaged freight drove the increase in other costs in 2014 compared to 2013.
Higher property taxes and costs associated with damaged freight and property increased other costs in 2013 compared to 2012.
Continued improvement in our safety performance and lower estimated liability for personal injury, which reduced our personal injury expense year-over-year, partially offset increases in other costs.
Non-Operating Items
## Table 4 ##
Other Income – Other income increased in 2014 versus 2013 due to higher gains from real estate sales and a sale of a permanent easement.
These gains were partially offset by higher environmental costs on non-operating property in 2014 and lower lease income due to the $17 million settlement of a land lease contract in 2013.
Other income increased in 2013 versus 2012 due to higher gains from real estate sales and increased lease income, including the favorable impact from the $17 million settlement of a land lease contract.
These increases were partially offset by interest received from a tax refund in 2012.

Tables referenced above, in order (Table 0 first):
<table><tr><td><i>(in millions)</i></td><td> 2005</td><td>2004</td><td>2003</td></tr><tr><td>Revenues<i><sup>(a)</sup></i>:</td><td></td><td></td><td></td></tr><tr><td>Aircraft Finance<i><sup>(b)</sup></i></td><td>$3,578</td><td>$3,136</td><td>$2,897</td></tr><tr><td>Capital Markets<i><sup>(c)(d)</sup></i></td><td>3,260</td><td>1,278</td><td>595</td></tr><tr><td>Consumer Finance<i><sup>(e)</sup></i></td><td>3,613</td><td>2,978</td><td>2,642</td></tr><tr><td>Other</td><td>74</td><td>103</td><td>108</td></tr><tr><td>Total</td><td>$10,525</td><td>$7,495</td><td>$6,242</td></tr><tr><td>Operating income (loss)<i><sup>(a)</sup></i>:</td><td></td><td></td><td></td></tr><tr><td>Aircraft Finance</td><td>$679</td><td>$642</td><td>$672</td></tr><tr><td>Capital Markets<i><sup>(d)</sup></i></td><td>2,661</td><td>662</td><td>-188</td></tr><tr><td>Consumer Finance<i><sup>(f)</sup></i></td><td>901</td><td>808</td><td>623</td></tr><tr><td>Other, including intercompany adjustments</td><td>35</td><td>68</td><td>75</td></tr><tr><td>Total</td><td>$4,276</td><td>$2,180</td><td>$1,182</td></tr></table>
<table><tr><td></td><td colspan="4">2015 Quarters</td><td colspan="4">2014 Quarters</td></tr><tr><td>(Dollars in millions)</td><td>Fourth</td><td>Third</td><td>Second</td><td>First</td><td>Fourth</td><td>Third</td><td>Second</td><td>First</td></tr><tr><td>Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest income</td><td>$9,801</td><td>$9,511</td><td>$10,488</td><td>$9,451</td><td>$9,635</td><td>$10,219</td><td>$10,013</td><td>$10,085</td></tr><tr><td>Fully taxable-equivalent adjustment</td><td>231</td><td>231</td><td>228</td><td>219</td><td>230</td><td>225</td><td>213</td><td>201</td></tr><tr><td>Net interest income on a fully taxable-equivalent basis</td><td>$10,032</td><td>$9,742</td><td>$10,716</td><td>$9,670</td><td>$9,865</td><td>$10,444</td><td>$10,226</td><td>$10,286</td></tr><tr><td>Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenue, net of interest expense<sup>-2</sup></td><td>$19,528</td><td>$20,381</td><td>$21,816</td><td>$20,782</td><td>$18,725</td><td>$21,209</td><td>$21,747</td><td>$22,566</td></tr><tr><td>Fully taxable-equivalent adjustment</td><td>231</td><td>231</td><td>228</td><td>219</td><td>230</td><td>225</td><td>213</td><td>201</td></tr><tr><td>Total revenue, net of interest expense on a fully taxable-equivalent basis</td><td>$19,759</td><td>$20,612</td><td>$22,044</td><td>$21,001</td><td>$18,955</td><td>$21,434</td><td>$21,960</td><td>$22,767</td></tr><tr><td>Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income tax expense (benefit)<sup>(2)</sup></td><td>$1,511</td><td>$1,446</td><td>$2,084</td><td>$1,225</td><td>$1,260</td><td>$663</td><td>$504</td><td>$-405</td></tr><tr><td>Fully taxable-equivalent adjustment</td><td>231</td><td>231</td><td>228</td><td>219</td><td>230</td><td>225</td><td>213</td><td>201</td></tr><tr><td>Income tax expense (benefit) on a fully taxable-equivalent basis</td><td>$1,742</td><td>$1,677</td><td>$2,312</td><td>$1,444</td><td>$1,490</td><td>$888</td><td>$717</td><td>$-204</td></tr><tr><td>Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Common shareholders’ equity</td><td>$234,851</td><td>$231,620</td><td>$228,780</td><td>$225,357</td><td>$224,479</td><td>$222,374</td><td>$222,221</td><td>$223,207</td></tr><tr><td>Goodwill</td><td>-69,761</td><td>-69,774</td><td>-69,775</td><td>-69,776</td><td>-69,782</td><td>-69,792</td><td>-69,822</td><td>-69,842</td></tr><tr><td>Intangible assets (excluding MSRs)</td><td>-3,888</td><td>-4,099</td><td>-4,307</td><td>-4,518</td><td>-4,747</td><td>-4,992</td><td>-5,235</td><td>-5,474</td></tr><tr><td>Related deferred tax liabilities</td><td>1,753</td><td>1,811</td><td>1,885</td><td>1,959</td><td>2,019</td><td>2,077</td><td>2,100</td><td>2,165</td></tr><tr><td>Tangible common shareholders’ equity</td><td>$162,955</td><td>$159,558</td><td>$156,583</td><td>$153,022</td><td>$151,969</td><td>$149,667</td><td>$149,264</td><td>$150,056</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><td></td><td></td><td></td></tr><tr><td>Shareholders’ equity</td><td>$257,125</td><td>$253,893</td><td>$251,054</td><td>$245,744</td><td>$243,454</td><td>$238,040</td><td>$235,803</td><td>$236,559</td></tr><tr><td>Goodwill</td><td>-69,761</td><td>-69,774</td><td>-69,775</td><td>-69,776</td><td>-69,782</td><td>-69,792</td><td>-69,822</td><td>-69,842</td></tr><tr><td>Intangible assets (excluding MSRs)</td><td>-3,888</td><td>-4,099</td><td>-4,307</td><td>-4,518</td><td>-4,747</td><td>-4,992</td><td>-5,235</td><td>-5,474</td></tr><tr><td>Related deferred tax liabilities</td><td>1,753</td><td>1,811</td><td>1,885</td><td>1,959</td><td>2,019</td><td>2,077</td><td>2,100</td><td>2,165</td></tr><tr><td>Tangible shareholders’ equity</td><td>$185,229</td><td>$181,831</td><td>$178,857</td><td>$173,409</td><td>$170,944</td><td>$165,333</td><td>$162,846</td><td>$163,408</td></tr><tr><td>Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Common shareholders’ equity</td><td>$233,932</td><td>$233,632</td><td>$229,386</td><td>$227,915</td><td>$224,162</td><td>$220,768</td><td>$222,565</td><td>$218,536</td></tr><tr><td>Goodwill</td><td>-69,761</td><td>-69,761</td><td>-69,775</td><td>-69,776</td><td>-69,777</td><td>-69,784</td><td>-69,810</td><td>-69,842</td></tr><tr><td>Intangible assets (excluding MSRs)</td><td>-3,768</td><td>-3,973</td><td>-4,188</td><td>-4,391</td><td>-4,612</td><td>-4,849</td><td>-5,099</td><td>-5,337</td></tr><tr><td>Related deferred tax liabilities</td><td>1,716</td><td>1,762</td><td>1,813</td><td>1,900</td><td>1,960</td><td>2,019</td><td>2,078</td><td>2,100</td></tr><tr><td>Tangible common shareholders’ equity</td><td>$162,119</td><td>$161,660</td><td>$157,236</td><td>$155,648</td><td>$151,733</td><td>$148,154</td><td>$149,734</td><td>$145,457</td></tr><tr><td>Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Shareholders’ equity</td><td>$256,205</td><td>$255,905</td><td>$251,659</td><td>$250,188</td><td>$243,471</td><td>$238,681</td><td>$237,411</td><td>$231,888</td></tr><tr><td>Goodwill</td><td>-69,761</td><td>-69,761</td><td>-69,775</td><td>-69,776</td><td>-69,777</td><td>-69,784</td><td>-69,810</td><td>-69,842</td></tr><tr><td>Intangible assets (excluding MSRs)</td><td>-3,768</td><td>-3,973</td><td>-4,188</td><td>-4,391</td><td>-4,612</td><td>-4,849</td><td>-5,099</td><td>-5,337</td></tr><tr><td>Related deferred tax liabilities</td><td>1,716</td><td>1,762</td><td>1,813</td><td>1,900</td><td>1,960</td><td>2,019</td><td>2,078</td><td>2,100</td></tr><tr><td>Tangible shareholders’ equity</td><td>$184,392</td><td>$183,933</td><td>$179,509</td><td>$177,921</td><td>$171,042</td><td>$166,067</td><td>$164,580</td><td>$158,809</td></tr><tr><td>Reconciliation of period-end assets to period-end tangible assets</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets</td><td>$2,144,316</td><td>$2,153,006</td><td>$2,149,034</td><td>$2,143,545</td><td>$2,104,534</td><td>$2,123,613</td><td>$2,170,557</td><td>$2,149,851</td></tr><tr><td>Goodwill</td><td>-69,761</td><td>-69,761</td><td>-69,775</td><td>-69,776</td><td>-69,777</td><td>-69,784</td><td>-69,810</td><td>-69,842</td></tr><tr><td>Intangible assets (excluding MSRs)</td><td>-3,768</td><td>-3,973</td><td>-4,188</td><td>-4,391</td><td>-4,612</td><td>-4,849</td><td>-5,099</td><td>-5,337</td></tr><tr><td>Related deferred tax liabilities</td><td>1,716</td><td>1,762</td><td>1,813</td><td>1,900</td><td>1,960</td><td>2,019</td><td>2,078</td><td>2,100</td></tr><tr><td>Tangible assets</td><td>$2,072,503</td><td>$2,081,034</td><td>$2,076,884</td><td>$2,071,278</td><td>$2,032,105</td><td>$2,050,999</td><td>$2,097,726</td><td>$2,076,772</td></tr></table>
<table><tr><td>Year Ended December 31</td><td>2008</td><td>2009</td><td> 2010</td></tr><tr><td>Beginning balance</td><td>$ 237</td><td>$ 221</td><td>$ 239</td></tr><tr><td>Warranty expense</td><td>69</td><td>71</td><td>70</td></tr><tr><td>Payments</td><td>-52</td><td>-60</td><td>-51</td></tr><tr><td>Adjustments*</td><td>-33</td><td>7</td><td>2</td></tr><tr><td>Ending balance</td><td>$ 221</td><td>$ 239</td><td>$ 260</td></tr></table>
<table><tr><td>Year Ended December 31</td><td>2008</td><td>2009</td><td> 2010</td></tr><tr><td>Stock options</td><td>$ 49</td><td>$ 54</td><td>$ 53</td></tr><tr><td>Restricted stock</td><td>19</td><td>22</td><td>24</td></tr><tr><td>Total stock-based compensation expense, net of tax*</td><td>$ 68</td><td>$ 76</td><td>$ 77</td></tr></table>
<table><tr><td><i>Millions</i></td><td><i>2014</i></td><td><i>2013</i></td><td><i>2012</i></td><td><i>% Change</i> <i>2014 v 2013</i></td><td><i>% Change</i><i>2013 v 2012</i></td></tr><tr><td>Other income</td><td>$151</td><td>$128</td><td>$108</td><td>18%</td><td>19%</td></tr><tr><td>Interest expense</td><td>-561</td><td>-526</td><td>-535</td><td>7</td><td>-2</td></tr><tr><td>Income taxes</td><td>-3,163</td><td>-2,660</td><td>-2,375</td><td>19%</td><td>12%</td></tr></table>

Question: In the year with largest amount of Net interest income, what's the increasing rate of Net interest income on a fully taxable-equivalent basis?
Answer: -0.01619
Reasoning program: add(10032,9742), add(#0,10716), add(#1,9670), add(9865,10444), add(#3,10226), add(#4,10286), subtract(#2,#5), add(9865,10444), add(#7,10226), add(#8,10286), divide(#6,#9)