ADVANCE AUTO PARTS, INC.  AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2016, January 2, 2016 and January 3, 2015 (in thousands, except per share data) 2.
Inventories, net: Merchandise Inventory The Company used the LIFO method of accounting for approximately 89% of inventories at both December 31, 2016 and January 2, 2016.
Under LIFO, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in 2016 and prior years.
As a result of utilizing LIFO, the Company recorded a reduction to cost of sales of $40,711 and $42,295 in 2016 and 2015, respectively, and an increase to cost of sales of $8,930 in 2014.
Historically, the Company’s overall costs to acquire inventory for the same or similar products have generally decreased as the Company has been able to leverage its continued growth and execution of merchandise strategies.
The increase in cost of sales for 2014 was the result of an increase in supply chain costs.
Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries and the inventory of certain subsidiaries, which are valued under the first-in, first-out (“FIFO”) method.
Product cores are included as part of the Company’s merchandise costs and are either passed on to the customer or returned to the vendor.
Because product cores are not subject to frequent cost changes like the Company’s other merchandise inventory, there is no material difference when applying either the LIFO or FIFO valuation method.
Inventory Overhead Costs Purchasing and warehousing costs included in inventory as of December 31, 2016 and January 2, 2016, were $395,240 and $359,829, respectively.
Inventory Balance and Inventory Reserves Inventory balances at the end of 2016 and 2015 were as follows:
## Table 0 ##
Inventory quantities are tracked through a perpetual inventory system.
The Company completes physical inventories and other targeted inventory counts in its store locations to ensure the accuracy of the perpetual inventory quantities of merchandise and core inventory.
In its distribution centers and branches, the Company uses a cycle counting program to ensure the accuracy of the perpetual inventory quantities of merchandise and product core inventory.
Reserves for estimated shrink are established based on the results of physical inventories conducted by the Company and other targeted inventory counts in its stores, results from recent cycle counts in its distribution facilities and historical and current loss trends.
The Company also establishes reserves for potentially excess and obsolete inventories based on (i) current inventory levels, (ii) the historical analysis of product sales and (iii) current market conditions.
The Company has return rights with many of its vendors and the majority of excess inventory is returned to its vendors for full credit.
In certain situations, the Company establishes reserves when less than full credit is expected from a vendor or when liquidating product will result in retail prices below recorded costs.
market appreciation of $5.6 billion and a $1.1 billion positive impact of foreign currency translation.
Threadneedle retail fund net inflows for the year ended December 31, 2013 were driven by recovering consumer confidence and good sales in key areas such as Europe.
Threadneedle institutional AUM increased $8.5 billion, or 10%, during the year ended December 31, 2013 primarily due to market appreciation of $6.7 billion and a $1.6 billion positive impact of foreign currency translation, partially offset by net outflows.
Threadneedle institutional net outflows of $2.6 billion for the year ended December 31, 2013 primarily reflected $3.7 billion of outflows from legacy insurance assets, partially offset by funding of new mandates and additional flows into existing funds.
In January 2014, we lost part of our U. S.  equities team at Threadneedle.
A veteran member of the team, who has directly managed about one-third of the fund’s assets and who has had strong investment performance, has taken over the management of these funds.
We generally expect some level of outflows when this type of change occurs and we are monitoring it closely.
The following table presents the results of operations of our Asset Management segment on an operating basis:
## Table 1 ##
Our Asset Management segment pretax operating earnings, which exclude net realized gains or losses and integration and restructuring charges, increased $158 million, or 28%, to $715 million for the year ended December 31, 2013 compared to $557 million for the prior year reflecting equity market appreciation, a $30 million gain on the sale of Threadneedle’s strategic business investment in Cofunds, a $19 million benefit from a CDO unwind, continued revenue enhancements related to various pricing adjustments and expense re-engineering, partially offset by the impact of net outflows.
Net Revenues Net revenues, which exclude net realized gains or losses, increased $278 million, or 10%, to $3.2 billion for the year ended December 31, 2013 compared to $2.9 billion for the prior year driven by increases in management and financial advice fees and net investment income.
Management and financial advice fees increased $223 million, or 9%, to $2.6 billion for the year ended December 31, 2013 compared to $2.4 billion for the prior year due to an increase in assets under management, as well as a shift to higher fee retail assets at Threadneedle, revenue enhancements related to various pricing adjustments and $17 million of performance based incentive fees on a CDO unwind.
Average assets under management increased 4% compared to the prior year driven by equity market appreciation, partially offset by net outflows.
See our discussion above on the changes in assets under management.
Net investment income, which excludes net realized gains or losses, increased $35 million to $54 million for the year ended December 31, 2013 compared to $19 million for the prior year due to a $30 million gain on the sale of Threadneedle’s strategic business investment in Cofunds, as well as a $10 million gain on a CDO unwind related to our residual interest in the CDO.
Expenses Total expenses, which exclude integration and restructuring charges, increased $120 million, or 5%, to $2.5 billion for the year ended December 31, 2013 compared to $2.3 billion for the prior year primarily due to an $86 million increase in distribution expenses driven by higher retail fund assets and a $33 million increase in general and administrative expense driven by higher performance-based compensation, including $8 million of higher compensation related to a CDO unwind, and investments in the business, partially offset by re-engineering benefits.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) During 2012, CMG revenue increased by $104.9 compared to 2011, due principally to an organic revenue increase of $91.8.
The organic revenue increase was primarily due to net client wins and net higher spending from existing clients across all disciplines, primarily in our events marketing and public relations businesses.
The international organic revenue increase occurred throughout nearly all regions, primarily in the Asia Pacific region, most notably in Australia, Singapore and China, and in the United Kingdom, where our events marketing business benefited from work performed for the London Olympics in the third quarter of 2012.
Revenues in the events marketing business can fluctuate due to timing of completed projects where we act as principal, as revenue is typically recognized when the project is complete.
The domestic organic revenue increase was primarily due to growth in our public relations and sports marketing businesses.
SEGMENT OPERATING INCOME
## Table 2 ##
1 Segment operating income and operating margin exclude approximately $5 of restructuring and other reorganization-related charges.
See “Restructuring and Other Reorganization-Related Charges (Reversals), net” in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 9 to the Consolidated Financial Statements for further information.
Operating income increased during 2013 when compared to 2012 due to an increase in revenue of $99.0, partially offset by increases in salaries and related expenses of $38.8 and office and general expenses of $36.8.
The increase in salaries and related expenses was primarily attributable to increases in our workforce across most disciplines, primarily at our public relations business to support business growth.
Office and general expenses increased primarily due to higher production expenses related to pass-through costs for certain projects where we acted as principal that increased in size or were new during 2013.
Operating income increased during 2012 when compared to 2011 due to an increase in revenue of $104.9, partially offset by increases in salaries and related expenses of $51.2 and office and general expenses of $40.9.
The increase in salaries and related expenses was primarily attributable to increases in our workforce across all disciplines to support business growth, which resulted in an increase in base salaries and benefits.
Office and general expenses increased primarily due to higher production expenses related to pass-through costs for certain projects where we acted as principal that increased in size or were new during 2012.
CORPORATE AND OTHER Certain corporate and other charges are reported as a separate line item within total segment operating income and include corporate office expenses, as well as shared service center and certain other centrally managed expenses that are not fully allocated to operating divisions.
Salaries and related expenses include salaries, long-term incentives, annual bonuses and other miscellaneous benefits for corporate office employees.
Office and general expenses primarily include professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services that are engaged and managed through the corporate office.
In addition, office and general expenses also include rental expense and depreciation of leasehold improvements for properties occupied by corporate office employees.
A portion of centrally managed expenses are allocated to operating divisions based on a formula that uses the planned revenues of each of the operating units.
Amounts allocated also include specific charges for information technology-related projects, which are allocated based on utilization.
Corporate and other expenses increased during 2013 by $3.5 to $140.8 compared to 2012, primarily due to an increase in salaries and related expenses, mainly attributable to higher base salaries, benefits and temporary help, partially offset by lower severance expenses and a decrease in office and general expenses.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>December 31,2016</td><td>January 2,2016</td></tr><tr><td>Inventories at FIFO, net</td><td>$4,120,030</td><td>$4,009,641</td></tr><tr><td>Adjustments to state inventories at LIFO</td><td>205,838</td><td>165,127</td></tr><tr><td>Inventories at LIFO, net</td><td>$4,325,868</td><td>$4,174,768</td></tr></table>
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2013</td><td>2012</td><td colspan="2">Change</td></tr><tr><td></td><td colspan="3">(in millions)</td><td></td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$2,643</td><td>$2,420</td><td>$223</td><td>9%</td></tr><tr><td>Distribution fees</td><td>469</td><td>442</td><td>27</td><td>6</td></tr><tr><td>Net investment income</td><td>54</td><td>19</td><td>35</td><td>NM</td></tr><tr><td>Other revenues</td><td>5</td><td>12</td><td>-7</td><td>-58</td></tr><tr><td>Total revenues</td><td>3,171</td><td>2,893</td><td>278</td><td>10</td></tr><tr><td>Banking and deposit interest expense</td><td>2</td><td>2</td><td>—</td><td>—</td></tr><tr><td>Total net revenues</td><td>3,169</td><td>2,891</td><td>278</td><td>10</td></tr><tr><td>Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>1,191</td><td>1,105</td><td>86</td><td>8</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>17</td><td>16</td><td>1</td><td>6</td></tr><tr><td>General and administrative expense</td><td>1,246</td><td>1,213</td><td>33</td><td>3</td></tr><tr><td>Total expenses</td><td>2,454</td><td>2,334</td><td>120</td><td>5</td></tr><tr><td>Operating earnings</td><td>$715</td><td>$557</td><td>$158</td><td>28%</td></tr></table>
<table><tr><td></td><td colspan="3">Years ended December 31,</td><td colspan="2">Change</td></tr><tr><td></td><td>2013</td><td>2012</td><td>2011</td><td>2013 vs 2012</td><td>2012 vs 2011</td></tr><tr><td>Segment operating income<sup>1</sup></td><td>$137.6</td><td>$114.2</td><td>$101.4</td><td>20.5%</td><td>12.6%</td></tr><tr><td>Operating margin<sup>1</sup></td><td>10.4%</td><td>9.3%</td><td>9.0%</td><td></td><td></td></tr></table>

Question: What is the proportion of Distribution fees to the total in 2013?
Answer: 0.1479
Reasoning program: divide(469,3171)