NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 79 Note 1—Summary of Significant Accounting Policies (Continued) present value is accreted over the life of the related lease as an operating expense.
All of the Company’s existing asset retirement obligations are associated with commitments to return property subject to operating leases to original condition upon lease termination.
The following table reconciles changes in the Company’s asset retirement liabilities for fiscal 2006 and 2005 (in millions):
## Table 0 ##
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets The Company reviews property, plant, and equipment and certain identifiable intangibles, excluding goodwill, for impairment in accordance with SFAS No.144, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.
Recoverability of these assets is measured by comparison of its carrying amount to future undiscounted cash flows the assets are expected to generate.
If property, plant, and equipment and certain identifiable intangibles are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its fair market value.
For the three fiscal years ended September 30, 2006, the Company had no material impairment of its long-lived assets, except for the impairment of certain assets in connection with the restructuring actions described in Note 6 of these Notes to Consolidated Financial Statements.
SFAS No.142, Goodwill and Other Intangible Assets requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired.
The Company performs its goodwill impairment tests on or about August 30 of each year.
The Company did not recognize any goodwill or intangible asset impairment charges in 2006, 2005, or 2004.
The Company established reporting units based on its current reporting structure.
For purposes of testing goodwill for impairment, goodwill has been allocated to these reporting units to the extent it relates to each reporting unit.
SFAS No.142 also requires that intangible assets with definite lives be amortized over their estimated useful lives and reviewed for impairment in accordance with SFAS No.144.
The Company is currently amortizing its acquired intangible assets with definite lives over periods ranging from 3 to 10 years.
Foreign Currency Translation The Company translates the assets and liabilities of its international non-U.
S.  functional currency subsidiaries into U. S.  dollars using exchange rates in effect at the end of each period.
Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period.
Gains and losses from these translations are credited or charged to foreign currency translation
Table of Contents warranty costs; price reductions on certain products, including iPad 2 and iPhone 4; and unfavorable impact from foreign exchange fluctuations.
The gross margin percentage in 2012 was 43.9%, compared to 40.5% in 2011.
This year-over-year increase in gross margin was largely driven by lower commodity and other product costs, a higher mix of iPhone sales, and improved leverage on fixed costs from higher net sales.
The increase in gross margin was partially offset by the impact of a stronger U. S.  dollar.
The gross margin percentage during the first half of 2012 was 45.9% compared to 41.4% during the second half of 2012.
The primary drivers of higher gross margin in the first half of 2012 compared to the second half are a higher mix of iPhone sales and improved leverage on fixed costs from higher net sales.
Additionally, gross margin in the second half of 2012 was also affected by the introduction of new products with flat pricing that have higher cost structures and deliver greater value to customers, price reductions on certain existing products, higher transition costs associated with product launches, and continued strengthening of the U. S.  dollar; partially offset by lower commodity costs.
The Company anticipates gross margin during the first quarter of 2014 to be between 36.5% and 37.5%.
The foregoing statement regarding the Company’s expected gross margin percentage in the first quarter of 2014 is forward-looking and could differ from actual results.
The Company’s future gross margin can be impacted by multiple factors including, but not limited to those set forth above in Part I, Item 1A of this Form 10-K under the heading “Risk Factors” and those described in this paragraph.
In general, gross margins and margins on individual products will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions, potential increases in the cost of components, and potential strengthening of the U. S.  dollar, as well as potential increases in the costs of outside manufacturing services and a potential shift in the Company’s sales mix towards products with lower gross margins.
In response to competitive pressures, the Company expects it will continue to take product pricing actions, which would adversely affect gross margins.
Gross margins could also be affected by the Company’s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products.
Due to the Company’s significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates.
Operating Expenses Operating expenses for 2013, 2012 and 2011 are as follows (in millions, except for percentages):
## Table 1 ##
Research and Development (“R&D”) Expense The growth in R&D expense was driven by an increase in headcount and related expenses to support expanded R&D activities.
Although total R&D expense increased 32% and 39% in 2013 and 2012, respectively, it remained fairly consistent as a percentage of net sales.
The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company’s core business strategy.
As such, the Company expects to make further investments in R&D to remain competitive.
Selling, General and Administrative (“SG&A”) Expense The growth in SG&A during 2013 was primarily due to the Company’s continued expansion of its Retail segment and increased headcount and related expenses, partially offset by decreased spending on professional
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) 5.
Fair Value Considerable judgment is often required in interpreting market data to develop estimates of fair value and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.
Assets and Liabilities Measured at Fair Value Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis, including those items for which the Company has elected the FVO, were determined as described below.
These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows
## Table 2 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td>Asset retirement liability as of September 25, 2004</td><td>$8.2</td></tr><tr><td>Additional asset retirement obligations recognized</td><td>2.8</td></tr><tr><td>Accretion recognized</td><td>0.7</td></tr><tr><td>Asset retirement liability as of September 24, 2005</td><td>$11.7</td></tr><tr><td>Additional asset retirement obligations recognized</td><td>2.5</td></tr><tr><td>Accretion recognized</td><td>0.5</td></tr><tr><td>Asset retirement liability as of September 30, 2006</td><td>$14.7</td></tr></table>
<table><tr><td></td><td> 2013</td><td> Change</td><td> 2012</td><td> Change</td><td> 2011</td></tr><tr><td>Research and development</td><td>$4,475</td><td>32%</td><td>$3,381</td><td>39%</td><td>$2,429</td></tr><tr><td>Percentage of total net sales</td><td>3%</td><td></td><td>2%</td><td></td><td>2%</td></tr><tr><td>Selling, general and administrative</td><td>$10,830</td><td>8%</td><td>$10,040</td><td>32%</td><td>$7,599</td></tr><tr><td>Percentage of total net sales</td><td>6%</td><td></td><td>6%</td><td></td><td>7%</td></tr><tr><td>Total operating expenses</td><td>$15,305</td><td>14%</td><td>$13,421</td><td>34%</td><td>$10,028</td></tr><tr><td>Percentage of total net sales</td><td>9%</td><td></td><td>9%</td><td></td><td>9%</td></tr></table>
<table><tr><td></td><td colspan="4"> December 31, 2010</td></tr><tr><td></td><td colspan="3"> Fair Value Measurements at Reporting Date Using</td><td></td></tr><tr><td></td><td> Quoted Prices in </td><td></td><td></td><td></td></tr><tr><td></td><td> Active Markets for </td><td></td><td> Significant </td><td> Total </td></tr><tr><td></td><td> Identical Assets </td><td> Significant Other </td><td> Unobservable </td><td> Estimated </td></tr><tr><td></td><td> and Liabilities </td><td> Observable Inputs </td><td> Inputs </td><td> Fair </td></tr><tr><td></td><td> (Level 1)</td><td> (Level 2)</td><td> (Level 3)</td><td> Value</td></tr><tr><td></td><td colspan="4"> (In millions)</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturity securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. corporate securities</td><td>$—</td><td>$85,419</td><td>$7,149</td><td>$92,568</td></tr><tr><td>Foreign corporate securities</td><td>—</td><td>62,401</td><td>5,777</td><td>68,178</td></tr><tr><td>RMBS</td><td>274</td><td>43,037</td><td>1,422</td><td>44,733</td></tr><tr><td>Foreign government securities</td><td>149</td><td>40,092</td><td>3,159</td><td>43,400</td></tr><tr><td>U.S. Treasury, agency and government guaranteed securities</td><td>14,602</td><td>18,623</td><td>79</td><td>33,304</td></tr><tr><td>CMBS</td><td>—</td><td>19,664</td><td>1,011</td><td>20,675</td></tr><tr><td>ABS</td><td>—</td><td>10,142</td><td>4,148</td><td>14,290</td></tr><tr><td>State and political subdivision securities</td><td>—</td><td>10,083</td><td>46</td><td>10,129</td></tr><tr><td>Other fixed maturity securities</td><td>—</td><td>3</td><td>4</td><td>7</td></tr><tr><td>Total fixed maturity securities</td><td>15,025</td><td>289,464</td><td>22,795</td><td>327,284</td></tr><tr><td>Equity securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Common stock</td><td>832</td><td>1,094</td><td>268</td><td>2,194</td></tr><tr><td>Non-redeemable preferred stock</td><td>—</td><td>507</td><td>905</td><td>1,412</td></tr><tr><td>Total equity securities</td><td>832</td><td>1,601</td><td>1,173</td><td>3,606</td></tr><tr><td>Trading and other securities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Actively Traded Securities</td><td>—</td><td>453</td><td>10</td><td>463</td></tr><tr><td>FVO general account securities</td><td>—</td><td>54</td><td>77</td><td>131</td></tr><tr><td>FVO contractholder-directed unit-linked investments</td><td>6,270</td><td>10,789</td><td>735</td><td>17,794</td></tr><tr><td>FVO securities held by consolidated securitization entities</td><td>—</td><td>201</td><td>—</td><td>201</td></tr><tr><td>Total trading and other securities</td><td>6,270</td><td>11,497</td><td>822</td><td>18,589</td></tr><tr><td>Short-term investments -1</td><td>3,026</td><td>4,681</td><td>858</td><td>8,565</td></tr><tr><td>Mortgage loans:</td><td></td><td></td><td></td><td></td></tr><tr><td>Mortgage loans held by consolidated securitization entities</td><td>—</td><td>6,840</td><td>—</td><td>6,840</td></tr><tr><td>Mortgage loansheld-for-sale-2</td><td>—</td><td>2,486</td><td>24</td><td>2,510</td></tr><tr><td>Total mortgage loans</td><td>—</td><td>9,326</td><td>24</td><td>9,350</td></tr><tr><td>MSRs -3</td><td>—</td><td>—</td><td>950</td><td>950</td></tr><tr><td>Other invested assets — investment funds</td><td>373</td><td>121</td><td>—</td><td>494</td></tr><tr><td>Derivative assets: -4</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate contracts</td><td>131</td><td>3,583</td><td>39</td><td>3,753</td></tr><tr><td>Foreign currency contracts</td><td>2</td><td>1,711</td><td>74</td><td>1,787</td></tr><tr><td>Credit contracts</td><td>—</td><td>125</td><td>50</td><td>175</td></tr><tr><td>Equity market contracts</td><td>23</td><td>1,757</td><td>282</td><td>2,062</td></tr><tr><td>Total derivative assets</td><td>156</td><td>7,176</td><td>445</td><td>7,777</td></tr><tr><td>Net embedded derivatives within asset host contracts -5</td><td>—</td><td>—</td><td>185</td><td>185</td></tr><tr><td>Separate account assets -6</td><td>25,660</td><td>155,589</td><td>2,088</td><td>183,337</td></tr><tr><td>Total assets</td><td>$51,342</td><td>$479,455</td><td>$29,340</td><td>$560,137</td></tr></table>

Question: What's the average of equity securities for total estimated fair value in 2010?
Answer: 1803
Reasoning program: add(2194,1412), divide(#0,2)