reflects the contribution from higher net sales, partially offset by higher input costs for energy, wood and freight.
Entering 2007, earnings in the first quarter are expected to improve compared with the 2006 fourth quarter due primarily to reduced manufacturing costs reflecting the completion of the mill optimization project in Brazil in the fourth quarter.
Sales volumes are expected to be seasonally better in the U. S.  uncoated paper and market pulp businesses, but seasonally weaker in the Russian paper business.
Average sales price realizations should improve as we continue to implement previously announced price increases in Europe and Brazil, although U. S.  average price realizations are expected to remain flat.
Wood costs are anticipated to be higher due to supply difficulties in the winter months, and energy costs will be mixed.
The first-quarter 2007 acquisition of the Luiz Antonio mill in Brazil will provide incremental earnings.
During 2007, the Pensacola, Florida mill will be converted to produce containerboard, reducing future U. S.  production capacity for uncoated freesheet paper.
Industrial Packaging Demand for Industrial Packaging products is closely correlated with non-durable industrial goods production in the United States, as well as with demand for processed foods, poultry, meat and agricultural products.
In addition to prices and volumes, major factors affecting the profitability of Industrial Packaging are raw material and energy costs, manufacturing efficiency and product mix.
INDUSTRIAL PACKAGING net sales for 2006 increased 6% compared with 2005 and 8% compared with 2004.
Operating profits in 2006 were 82% higher than in 2005 and 7% higher than in 2004.
Benefits from improved price realizations ($156 million), sales volume increases ($29 million), a more favorable mix ($21 million), reduced market related downtime ($25 million) and strong mill performance ($43 million) were partially offset by the effects of higher raw material costs ($12 million), higher freight costs ($48 million), higher converting operations costs ($21 million) and other costs ($26 million).
In addition, a gain of $13 million was recognized in 2006 related to a sale of property in Spain.
The segment took 135,000 tons of downtime in 2006, none of which was market-related, compared with 370,000 tons of downtime in 2005, which included 230,000 tons of lack-of-order downtime.
## Table 0 ##
U. S.  CONTAINERBOARD net sales for 2006 were $955 million, compared with $895 million in 2005 and $950 million for 2004.
Average sales price realizations in the first quarter of 2006 began the year below first-quarter 2005 levels, but improved significantly during the second quarter and were higher than in 2005 for the remainder of the year.
Sales volumes were higher throughout 2006.
Operating profits in 2006 were more than double 2005 levels, and 68% higher than in 2004.
The favorable impacts of the higher average sales price realizations, higher sales volumes, reduced lack-of-order downtime and strong mill performance were only partially offset by higher input costs for freight, chemicals and energy.
U. S.  CONVERTING OPERATIONS net sales totaled $2.8 billion in 2006, $2.6 billion in 2005 and $2.3 billion in 2004.
Sales volumes throughout the year in 2006 were above 2005 levels, reflecting solid market demand for boxes and packaging solutions.
In the first two quarters of 2006, margins were favorable compared with the prior year as average sales prices outpaced containerboard cost increases, but average margins began to decline in the third quarter as containerboard increases outpaced the increase in box prices.
Operating profits in 2006 decreased 72% from 2005 and 86% from 2004 levels, primarily due to higher distribution, utility and raw material costs, and inventory adjustment charges.
EUROPEAN CONTAINER net sales for 2006 were $1.0 billion, compared with $883 million in 2005 and $865 million in 2004.
The increase was principally due to contributions from the Moroccan box plants acquired in the fourth quarter of 2005, although sales volumes for the rest of the business were also slightly higher.
Operating profits in 2006 were up 31% compared with 2005 and 6% compared with 2004.
This increase included a $13 million gain on the sale of property in Spain as well as the increased contributions from the Moroccan acquisition, partially offset by higher energy costs.
IN T E RNA T IONA L PA P E R D I S T R I BU T ION L IMITED, our Asian box and containerboard business, had net sales for 2006 of $182 million.
In 2005, net sales were $104 million subsequent to International Paper’s acquisition of a majority interest in August 2005.
This business generated a small operating profit in 2006, compared with a small loss in 2005.
Additionally during the fourth quarter, a $38 million pre-tax credit ($23 million after taxes) was recorded for refunds received from the Canadian government of duties paid by the Company’s former Weldwood of Canada Limited business, and a pre-tax charge of $1 million ($1 million after taxes) was recorded for smaller adjustments of prior discontinued operation estimates.
During the third quarter of 2006, management determined there was a current expectation that, more likely than not, the Beverage Packaging and Wood Products businesses would be sold.
Based on the resulting impairment testing, pre-tax impairment charges of $115 million ($82 million after taxes) and $165 million ($165 million after taxes) were recorded to reduce the carrying values of the net assets of the Beverage Packaging and Wood Products businesses, respectively, to their estimated fair values.
Also during the 2006 third quarter, International Paper completed the sale of its interests in a Beverage Packaging operation in Japan for a pre-tax gain of $12 million ($3 million after taxes), and the sale of its Brazilian Coated Papers business to Stora Enso Oyj for approximately $420 million, subject to certain post-closing adjustments.
This business included a coated paper mill and lumber mill in Aropoti, Parana State, Brazil, as well as 50,000 hectares (approximately 124,000 acres) of forestlands in Parana.
As the Company determined that the accounting requirements under SFAS No.144 for reporting this business as a discontinued operation were met, the resulting $100 million pre-tax gain ($79 million after taxes) was recorded as a gain on sale of a discontinued operation.
Revenues, earnings and earnings per share related to the Brazilian Coated Papers business for 2006, 2005 and 2004 were as follows:
## Table 1 ##
During the first quarter of 2006, the Company determined that the accounting requirements under SFAS No.144 for reporting the Kraft Papers business as a discontinued operation were met.
Accordingly, a $100 million pre-tax charge ($61 million after taxes) was recorded to reduce the carrying value of the net assets of this business to their estimated fair value.
During the 2006 second quarter, the Company signed a definitive agreement to sell this business for approximately $155 million in cash, subject to certain closing and post-closing adjustments, and two additional payments totaling up to $60 million payable five years from the date of closing, contingent upon business performance.
A $16 million pre-tax charge ($11 million after taxes) was recorded during the second quarter to further reduce the carrying value of the assets of the Kraft Papers business based on the terms of this definitive agreement.
The sale of this business was subsequently completed on January 2, 2007.
The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2006 and 2005, were as follows:
## Table 2 ##
Deferred tax assets and liabilities are recorded in the accompanying consolidated balance sheet under the captions Deferred income tax assets, Deferred charges and other assets, Other accrued liabilities and Deferred income taxes.
The increase in 2006 in Deferred income taxes principally reflects installment sales treatment of certain forestland sales during the year.
Other contributing factors include the utilization of U. S.  net operating loss carryforwards, the generation of income tax credits and a decrease in deferred tax assets relating to pension costs.
The valuation allowance for deferred tax assets as of January 1, 2006, was $118 million.
The net change in the total valuation allowance for the year ended December 31, 2006, was a decrease of $7 million.
The Company recorded an income tax provision for 2006 of $1.9 billion, consisting of a $1.6 billion deferred tax provision (principally reflecting deferred taxes on the 2006 Transformation Plan forestland sales) and a $300 million current tax provision.
The provision also included an $11 million provision related to a special tax adjustment.
Excluding the impact of special items, the tax provision was $272 million, or 29% of pre-tax earnings before minority interest.
The Company recorded an income tax benefit for 2005 of $407 million, including a $454 million net tax benefit related to special tax adjustment items, consisting of a tax benefit of $627 million resulting from an agreement reached with the U. S.  Internal Revenue Service concerning the 1997 through 2000 U. S.  federal income tax audit, a $142 million charge for deferred taxes related to earnings repatriations under the American Jobs Creation Act of 2004, and $31 million of other tax charges.
Excluding the impact of special items, the tax provision was $83 million, or 20% of pre-tax earnings before minority interest.
The income tax provision for 2004 was $114 million, or 30% of pre-tax earnings from continuing operations before minority interest, including a $32 million provision related to special items.
Excluding the impact of this special tax adjustment item, the tax provision was $98 million, or 19% of pre-tax earnings before minority interest.
International Paper has federal and non-U.
S.  net operating loss carryforwards that expire as follows: 2007 through 2016 – $161 million, 2017 through 2026 – $1.8 billion, and indefinite carryforwards of $890 million.
International Paper has tax benefits from net operating loss carryforwards for state taxing jurisdictions of approximately $338 million that expire as follows: 2007 through 2016 – $96 million and 2017 through 2026 – $243 million.
International Paper also has federal, non-U.
S.  and state tax credit carryforwards that expire as follows: 2007 through 2016—$80 million, 2017 through 2026 – $90 million, and indefinite carryforwards – $304 million.
Further, International Paper has state capital loss carryforwards that expire as follows: 2007 through 2016 – $10 million.
Deferred income taxes are not provided for temporary differences of approximately $2.7 billion, $2.4 billion and $2.7 billion as of December 31, 2006, 2005 and 2004, respectively, representing earnings of non-U.
S.  subsidiaries intended to be permanently reinvested.
Computation of the potential deferred tax liability associated with these undistributed earnings and other basis differences is not practicable.
International Paper is currently being audited by various federal, state and non-U.
S.  taxing authorities for tax periods from 1996 through 2005.
While the Company believes that it is adequately accrued for possible audit adjustments, the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates.
NOTE 10 COMMITMENTS AND CONTINGENT LIABILITIES Certain property, machinery and equipment are leased under cancelable and non-cancelable agreements.
INTERIM FINANCIAL RESULTS (UNAUDITED)

Tables referenced above, in order (Table 0 first):
<table><tr><td><i>In millions</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Sales</td><td>$4,925</td><td>$4,625</td><td>$4,545</td></tr><tr><td>Operating Profit</td><td>$399</td><td>$219</td><td>$373</td></tr></table>
<table><tr><td><i>In millions, except per share amounts</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td> Revenues</td><td>$127</td><td>$218</td><td>$165</td></tr><tr><td> Earnings from discontinued operation</td><td></td><td></td><td></td></tr><tr><td>Earnings from operation</td><td>$20</td><td>$49</td><td>$38</td></tr><tr><td>Income tax expense</td><td>-9</td><td>-23</td><td>-11</td></tr><tr><td> Earnings from operation, net of taxes</td><td>11</td><td>26</td><td>27</td></tr><tr><td>Gain on sale</td><td>100</td><td>–</td><td>–</td></tr><tr><td>Income tax expense</td><td>-21</td><td>–</td><td>–</td></tr><tr><td> Gain on sale, net of taxes</td><td>79</td><td>–</td><td>–</td></tr><tr><td> Earnings from discontinued operation, net of taxes</td><td>$90</td><td>$26</td><td>$27</td></tr><tr><td> Earnings per common share from discontinued operation - assuming dilution</td><td></td><td></td><td></td></tr><tr><td>Earnings from operation</td><td>$0.02</td><td>$0.05</td><td>$0.05</td></tr><tr><td>Gain on sale</td><td>0.16</td><td>–</td><td>–</td></tr><tr><td> Earnings per common share from discontinued operation, net of taxes and minority interest - assumingdilution</td><td>$0.18</td><td>$0.05</td><td>$0.05</td></tr></table>
<table><tr><td><i>In millions</i></td><td>2006</td><td>2005</td></tr><tr><td>Deferred tax assets:</td><td></td><td></td></tr><tr><td>Postretirement benefit accruals</td><td>$381</td><td>$339</td></tr><tr><td>Prepaid pension costs</td><td>258</td><td>588</td></tr><tr><td>Alternative minimum and other tax credits</td><td>400</td><td>300</td></tr><tr><td>Net operating loss carryforwards</td><td>1,156</td><td>1,786</td></tr><tr><td>Compensation reserves</td><td>285</td><td>211</td></tr><tr><td>Legal reserves</td><td>59</td><td>40</td></tr><tr><td>Other</td><td>446</td><td>343</td></tr><tr><td>Gross deferred tax assets</td><td>2,985</td><td>3,607</td></tr><tr><td>Less: valuation allowance</td><td>-111</td><td>-118</td></tr><tr><td> Net deferred tax assets</td><td>$2,874</td><td>$3,489</td></tr><tr><td>Deferred tax liabilities:</td><td></td><td></td></tr><tr><td>Plants, properties and equipment</td><td>$-1,965</td><td>$-2,580</td></tr><tr><td>Forestlands and related installment sales</td><td>-2,095</td><td>-753</td></tr><tr><td>Other</td><td>-192</td><td>-281</td></tr><tr><td>Total deferred tax liabilities</td><td>$-4,252</td><td>$-3,614</td></tr><tr><td> Net deferred tax liabilities</td><td>$-1,378</td><td>$-125</td></tr></table>

Question: what percentage of 2005 industrial packaging sales are containerboard sales?
Answer: 0.19351
Reasoning program: divide(895,4625)