Table VII Allowance for Credit Losses
## Table 0 ##
(1) The 2010 balance includes $10.8 billion of allowance for loan and lease losses related to the adoption of consolidation guidance that was effective January 1, 2010.
(2) Includes U. S.  small business commercial charge-offs of $457 million, $799 million, $1.1 billion, $2.0 billion and $3.0 billion in 2013, 2012, 2011, 2010 and 2009, respectively.
(3) Includes U. S.  small business commercial recoveries of $98 million, $100 million, $106 million, $107 million and $65 million in 2013, 2012, 2011, 2010 and 2009, respectively.
(4) The 2013, 2012 and 2011 amounts primarily represent the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
In addition, the 2011 amount includes a $449 million reduction in the allowance for loan and lease losses related to Canadian consumer card loans that were transferred to LHFS.
The 2009 amount includes a $750 million reduction in the allowance for loan and lease losses related to credit card loans of $8.5 billion which were exchanged for $7.8 billion in held-to-maturity debt securities that were issued by the Corporation’s U. S.  Credit Card Securitization Trust and retained by the Corporation.
(5) The 2013, 2012, 2011 and 2010 amounts primarily represent accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions.
The 2009 amount includes the remaining balance of the acquired Merrill Lynch reserve excluding those commitments accounted for under the fair value option, net of accretion, and the impact of funding previously unfunded positions.
At various times during fiscal 2006, 2005 and 2004, the Company acquired businesses engaged in the wholesale distribution and retail sale of Aveda products, as well as other products, in the United States and other countries.
The aggregate cost for these activities, which includes purchase price, earn-out payments and acquisition costs, was $51.7 million, $7.1 million, and $4.4 million in fiscal 2006, 2005 and 2004, respectively, and each transaction was accounted for using the purchase method of accounting.
Accordingly, the results of operations for each of the acquired businesses are included in the accompanying consolidated financial statements commencing with its date of original acquisition.
Pro forma results of operations, as if each of such businesses had been acquired as of the beginning of the year of acquisition, have not been presented, as the impact on the Company’s consolidated financial results would not have been material.
In fiscal 2006, the Company entered into a license agreement with Daisy Fuentes for the development of fragrance products.
In fiscal 2005, the Company was developing products under license agreements for Sean John (announced in May 2004), Tom Ford (announced in April 2005) and Missoni (announced in May 2005) and an Origins license agreement to develop and sell products using the name of Dr.  Andrew Weil (announced in October 2004).
Certain license agreements may require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities.
Royalty expenses are accrued in the period in which net sales are earned while advertising and promotional expenses are accrued at the time these costs are incurred.
NOTE 5 – COST SAVINGS INITIATIVE During fiscal 2006, the Company recorded special charges associated with a cost savings initiative that was designed to support its long-term financial objectives.
As part of this multi-faceted initiative, the Company has identified savings opportunities that include streamlined processes and organizational changes.
The principal component of the initiative is a voluntary separation program offered primarily to North America-based employees.
During the fourth quarter of fiscal 2006, involuntary separations were communicated to certain employees.
Under this initiative, the Company incurred expenses related to one-time termination benefits for 494 employees, of which 28 were involuntary, which benefits were based principally upon years of service.
In addition, the Company identified other cost savings opportunities to improve efficiencies in the Company’s distribution network and product offerings and to eliminate other nonessential costs.
These charges primarily related to employee severance for facilities that are closing, contract cancellations, counter and door closings and product returns.
For the year ended June 30, 2006, aggregate expenses of $92.1 million were recorded as special charges related to the cost savings initiative in the accompanying consolidated statement of earnings.
At June 30, 2006, $40.7 million and $28.2 million related to the cost savings initiative were recorded in other accrued liabilities and other noncurrent liabilities, respectively, in the accompanying consolidated balance sheet.
The following table summarizes the cost savings initiative, which impacted, and will continue to impact, the Company’s operating expenses and cost of sales:
## Table 1 ##
The fair value of the Interest Agreements at December 31, 2007 and December 31, 2006 was $3 million and $1 million, respectively.
The Company is exposed to credit loss in the event of nonperformance by the counterparties to its swap contracts.
The Company minimizes its credit risk on these transactions by only dealing with leading, creditworthy financial institutions and does not anticipate nonperformance.
In addition, the contracts are distributed among several financial institutions, all of whom presently have investment grade credit ratings, thus minimizing credit risk concentration.
Stockholders’ Equity Derivative instruments activity, net of tax, included in Non-owner changes to equity within the consolidated statements of stockholders’ equity for the years ended December 31, 2007 and 2006 is as follows:
## Table 2 ##
Net Investment in Foreign Operations Hedge At December 31, 2007 and 2006, the Company did not have any hedges of foreign currency exposure of net investments in foreign operations.
Investments Hedge During the first quarter of 2006, the Company entered into a zero-cost collar derivative (the “Sprint Nextel Derivative”) to protect itself economically against price fluctuations in its 37.6 million shares of Sprint Nextel Corporation (“Sprint Nextel”) non-voting common stock.
During the second quarter of 2006, as a result of Sprint Nextel’s spin-off of Embarq Corporation through a dividend to Sprint Nextel shareholders, the Company received approximately 1.9 million shares of Embarq Corporation.
The floor and ceiling prices of the Sprint Nextel Derivative were adjusted accordingly.
The Sprint Nextel Derivative was not designated as a hedge under the provisions of SFAS No.133, “Accounting for Derivative Instruments and Hedging Activities.
” Accordingly, to reflect the change in fair value of the Sprint Nextel Derivative, the Company recorded a net gain of $99 million for the year ended December 31, 2006, included in Other income (expense) in the Company’s consolidated statements of operations.
In December 2006, the Sprint Nextel Derivative was terminated and settled in cash and the 37.6 million shares of Sprint Nextel were converted to common shares and sold.
The Company received aggregate cash proceeds of approximately $820 million from the settlement of the Sprint Nextel Derivative and the subsequent sale of the 37.6 million Sprint Nextel shares.
The Company recognized a loss of $126 million in connection with the sale of the remaining shares of Sprint Nextel common stock.
As described above, the Company recorded a net gain of $99 million in connection with the Sprint Nextel Derivative.
Prior to the merger of Sprint Corporation (“Sprint”) and Nextel Communications, Inc.  (“Nextel”), the Company had entered into variable share forward purchase agreements (the “Variable Forwards”) to hedge its Nextel common stock.
The Company did not designate the Variable Forwards as a hedge of the Sprint Nextel shares received as a result of the merger.
Accordingly, the Company recorded $51 million of gains for the year ended December 31, 2005 reflecting the change in value of the Variable Forwards.
The Variable Forwards were settled during the fourth quarter of 2005.
Fair Value of Financial Instruments The Company’s financial instruments include cash equivalents, Sigma Fund investments, short-term investments, accounts receivable, long-term finance receivables, accounts payable, accrued liabilities, derivatives and other financing commitments.
The Company’s Sigma Fund and investment portfolios and derivatives are recorded in the Company’s consolidated balance sheets at fair value.
All other financial instruments, with the exception of long-term debt, are carried at cost, which is not materially different than the instruments’ fair values.
Provision (Benefit) for Income Taxes

Tables referenced above, in order (Table 0 first):
<table><tr><td>(Dollars in millions)</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td><td>2009</td></tr><tr><td>Allowance for loan and lease losses, January 1<sup>-1</sup></td><td>$24,179</td><td>$33,783</td><td>$41,885</td><td>$47,988</td><td>$23,071</td></tr><tr><td>Loans and leases charged off</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>-1,508</td><td>-3,276</td><td>-4,294</td><td>-3,843</td><td>-4,525</td></tr><tr><td>Home equity</td><td>-2,258</td><td>-4,573</td><td>-4,997</td><td>-7,072</td><td>-7,220</td></tr><tr><td>U.S. credit card</td><td>-4,004</td><td>-5,360</td><td>-8,114</td><td>-13,818</td><td>-6,753</td></tr><tr><td>Non-U.S. credit card</td><td>-508</td><td>-835</td><td>-1,691</td><td>-2,424</td><td>-1,332</td></tr><tr><td>Direct/Indirect consumer</td><td>-710</td><td>-1,258</td><td>-2,190</td><td>-4,303</td><td>-6,406</td></tr><tr><td>Other consumer</td><td>-273</td><td>-274</td><td>-252</td><td>-320</td><td>-491</td></tr><tr><td>Total consumer charge-offs</td><td>-9,261</td><td>-15,576</td><td>-21,538</td><td>-31,780</td><td>-26,727</td></tr><tr><td>U.S. commercial<sup>-2</sup></td><td>-774</td><td>-1,309</td><td>-1,690</td><td>-3,190</td><td>-5,237</td></tr><tr><td>Commercial real estate</td><td>-251</td><td>-719</td><td>-1,298</td><td>-2,185</td><td>-2,744</td></tr><tr><td>Commercial lease financing</td><td>-4</td><td>-32</td><td>-61</td><td>-96</td><td>-217</td></tr><tr><td>Non-U.S. commercial</td><td>-79</td><td>-36</td><td>-155</td><td>-139</td><td>-558</td></tr><tr><td>Total commercial charge-offs</td><td>-1,108</td><td>-2,096</td><td>-3,204</td><td>-5,610</td><td>-8,756</td></tr><tr><td>Total loans and leases charged off</td><td>-10,369</td><td>-17,672</td><td>-24,742</td><td>-37,390</td><td>-35,483</td></tr><tr><td>Recoveries of loans and leases previously charged off</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>424</td><td>165</td><td>377</td><td>117</td><td>89</td></tr><tr><td>Home equity</td><td>455</td><td>331</td><td>517</td><td>279</td><td>155</td></tr><tr><td>U.S. credit card</td><td>628</td><td>728</td><td>838</td><td>791</td><td>206</td></tr><tr><td>Non-U.S. credit card</td><td>109</td><td>254</td><td>522</td><td>217</td><td>93</td></tr><tr><td>Direct/Indirect consumer</td><td>365</td><td>495</td><td>714</td><td>967</td><td>943</td></tr><tr><td>Other consumer</td><td>39</td><td>42</td><td>50</td><td>59</td><td>63</td></tr><tr><td>Total consumer recoveries</td><td>2,020</td><td>2,015</td><td>3,018</td><td>2,430</td><td>1,549</td></tr><tr><td>U.S. commercial<sup>-3</sup></td><td>287</td><td>368</td><td>500</td><td>391</td><td>161</td></tr><tr><td>Commercial real estate</td><td>102</td><td>335</td><td>351</td><td>168</td><td>42</td></tr><tr><td>Commercial lease financing</td><td>29</td><td>38</td><td>37</td><td>39</td><td>22</td></tr><tr><td>Non-U.S. commercial</td><td>34</td><td>8</td><td>3</td><td>28</td><td>21</td></tr><tr><td>Total commercial recoveries</td><td>452</td><td>749</td><td>891</td><td>626</td><td>246</td></tr><tr><td>Total recoveries of loans and leases previously charged off</td><td>2,472</td><td>2,764</td><td>3,909</td><td>3,056</td><td>1,795</td></tr><tr><td>Net charge-offs</td><td>-7,897</td><td>-14,908</td><td>-20,833</td><td>-34,334</td><td>-33,688</td></tr><tr><td>Write-offs of PCI loans</td><td>-2,336</td><td>-2,820</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Provision for loan and lease losses</td><td>3,574</td><td>8,310</td><td>13,629</td><td>28,195</td><td>48,366</td></tr><tr><td>Other<sup>-4</sup></td><td>-92</td><td>-186</td><td>-898</td><td>36</td><td>-549</td></tr><tr><td>Allowance for loan and lease losses, December 31</td><td>17,428</td><td>24,179</td><td>33,783</td><td>41,885</td><td>37,200</td></tr><tr><td>Reserve for unfunded lending commitments, January 1</td><td>513</td><td>714</td><td>1,188</td><td>1,487</td><td>421</td></tr><tr><td>Provision for unfunded lending commitments</td><td>-18</td><td>-141</td><td>-219</td><td>240</td><td>204</td></tr><tr><td>Other<sup>-5</sup></td><td>-11</td><td>-60</td><td>-255</td><td>-539</td><td>862</td></tr><tr><td>Reserve for unfunded lending commitments, December 31</td><td>484</td><td>513</td><td>714</td><td>1,188</td><td>1,487</td></tr><tr><td>Allowance for credit losses, December 31</td><td>$17,912</td><td>$24,692</td><td>$34,497</td><td>$43,073</td><td>$38,687</td></tr></table>
<table><tr><td> </td><td> Fiscal 2006  expense</td><td> Fiscal 2006  payments</td><td> Accrued at  June 30, 2006</td></tr><tr><td> </td><td colspan="3"> (In millions)</td></tr><tr><td>Employee separation expenses</td><td>$75.9</td><td>$20.7</td><td>$55.2</td></tr><tr><td>Facility closures and product/distribution rationalization</td><td>12.5</td><td>—</td><td>12.5</td></tr><tr><td>Advertising and promotional effectiveness</td><td>3.7</td><td>2.5</td><td>1.2</td></tr><tr><td></td><td>$92.1</td><td>$23.2</td><td>$68.9</td></tr></table>
<table><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Balance at January 1</td><td>$16</td><td>$2</td><td>$-272</td></tr><tr><td>Increase (decrease) in fair value</td><td>-6</td><td>75</td><td>28</td></tr><tr><td>Reclassifications to earnings</td><td>-10</td><td>-61</td><td>246</td></tr><tr><td>Balance at December 31</td><td>$—</td><td>$16</td><td>$2</td></tr></table>

Question: what is the percent change in increase of fair value between 2005 and 2006?
Answer: 1.67857
Reasoning program: subtract(75,28), divide(#0,28)