Equity Compensation Plan Information The plan documents for the plans described in the footnotes below are included as Exhibits to this Form 10-K, and are incorporated herein by reference in their entirety.
The following table provides information as of Dec.  31, 2006 regarding the number of shares of PPG Common Stock that may be issued under PPG’s equity compensation plans.
## Table 0 ##
(1) Equity compensation plans approved by security holders include the PPG Industries, Inc.  Stock Plan, the PPG Omnibus Plan, the PPG Industries, Inc.  Executive Officers’ Long Term Incentive Plan, and the PPG Industries Inc.  Long Term Incentive Plan.
(2) Equity compensation plans not approved by security holders include the PPG Industries, Inc.
Challenge 2000 Stock Plan.
This plan is a broadbased stock option plan under which the Company granted to substantially all active employees of the Company and its majority owned subsidiaries on July 1, 1998, the option to purchase 100 shares of the Company’s common stock at its then fair market value of $70.00 per share.
Options became exercisable on July 1, 2003, and expire on June 30, 2008.
There were 2,089,300 shares issuable upon exercise of options outstanding under this plan as of Dec.  31, 2006.
(3) Excluded from the information presented here are common stock equivalents held under the PPG Industries, Inc.
Deferred Compensation Plan, the PPG Industries, Inc.
Deferred Compensation Plan for Directors and the PPG Industries, Inc.  Directors’ Common Stock Plan, none of which are equity compensation plans.
As supplemental information, there were 491,168 common stock equivalents held under such plans as of Dec.  31, 2006.
Item 6.
Selected Financial Data The information required by Item 6 regarding the selected financial data for the five years ended Dec.  31, 2006 is included in Exhibit 99.2 filed with this Form 10-K and is incorporated herein by reference.
This information is also reported in the Eleven-Year Digest on page 72 of the Annual Report under the captions net sales, income (loss) before accounting changes, cumulative effect of accounting changes, net income (loss), earnings (loss) per common share before accounting changes, cumulative effect of accounting changes on earnings (loss) per common share, earnings (loss) per common share, earnings (loss) per common share – assuming dilution, dividends per share, total assets and long-term debt for the years 2002 through 2006.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Performance in 2006 compared with 2005 Performance Overview Our sales increased 8% to $11.0 billion in 2006 compared to $10.2 billion in 2005.
Sales increased 4% due to the impact of acquisitions, 2% due to increased volumes, and 2% due to increased selling prices.
Cost of sales as a percentage of sales increased slightly to 63.7% compared to 63.5% in 2005.
Selling, general and administrative expense increased slightly as a percentage of sales to 17.9% compared to 17.4% in 2005.
These costs increased primarily due to higher expenses related to store expansions in our architectural coatings operating segment and increased advertising to promote growth in our optical products operating segment.
Other charges decreased $81 million in 2006.
Other charges in 2006 included pretax charges of $185 million for estimated environmental remediation costs at sites in New Jersey and $42 million for legal settlements offset in part by pretax earnings of $44 million for insurance recoveries related to the Marvin legal settlement and to Hurricane Rita.
Other charges in 2005 included pretax charges of $132 million related to the Marvin legal settlement net of related insurance recoveries of $18 million, $61 million for the federal glass class action antitrust legal settlement, $34 million of direct costs related to the impact of hurricanes Rita and Katrina, $27 million for an asset impairment charge in our fine chemicals operating segment and $19 million for debt refinancing costs.
Other earnings increased $30 million in 2006 due to higher equity earnings, primarily from our Asian fiber glass joint ventures, and higher royalty income.
Net income and earnings per share – assuming dilution for 2006 were $711 million and $4.27, respectively, compared to $596 million and $3.49, respectively, for 2005.
Net income in 2006 included aftertax charges of $106 million, or 64 cents a share, for estimated environmental remediation costs at sites in New Jersey and Louisiana in the third quarter; $26 million, or 15 cents a share, for legal settlements; $23 million, or 14 cents a share for business restructuring; $17 million, or 10 cents a share, to reflect the net increase in the current value of the Company’s obligation relating to asbestos claims under the PPG Settlement Arrangement; and aftertax earnings of $24 million, or 14 cents a share for insurance recoveries.
Net income in 2005 included aftertax charges of $117 million, or 68 cents a share for legal settlements net of insurance; $21 million, or 12 cents a share for direct costs related to the impact of hurricanes Katrina and Rita; $17 million, or 10 cents a share, related to an asset impairment charge related to our fine chemicals operating segment; $12 million, or 7 cents a share, for debt refinancing cost; and $13 million, or 8 cents a share, to reflect the net increase in the current
Management’s Discussion and Analysis value of the Company’s obligation relating to asbestos claims under the PPG Settlement Arrangement.
The legal settlements net of insurance included aftertax charges of $80 million for the Marvin legal settlement, net of insurance recoveries of $11 million, and $37 million for the impact of the federal glass class action antitrust legal settlement.
## Table 1 ##
Industrial Coatings sales increased $315 million or 11% in 2006.
Sales increased 4% due to acquisitions, 4% due to increased volumes in the automotive, industrial and packaging coatings operating segments, 2% due to higher selling prices, particularly in the industrial and packaging coatings businesses and 1% due to the positive effects of foreign currency translation.
Segment income increased $65 million in 2006.
The increase in segment income was primarily due to the impact of increased sales volume, lower overhead and manufacturing costs, and the impact of acquisitions.
Segment income was reduced by the adverse impact of inflation, which was substantially offset by higher selling prices.
Performance and Applied Coatings sales increased $420 million or 16% in 2006.
Sales increased 8% due to acquisitions, 4% due to higher selling prices in the refinish, aerospace and architectural coatings operating segments, 3% due to increased volumes in our aerospace and architectural coatings businesses and 1% due to the positive effects of foreign currency translation.
Segment income increased $50 million in 2006.
The increase in segment income was primarily due to the impact of increased sales volume and higher selling prices, which more than offset the impact of inflation.
Segment income was reduced by increased overhead costs to support growth in our architectural coatings business.
Optical and Specialty Materials sales increased $134 million or 15% in 2006.
Sales increased 10% due to higher volumes, particularly in optical products and fine chemicals and 5% due to acquisitions in our optical products business.
Segment income increased $65 million in 2006.
The absence of the 2005 charge for an asset impairment in our fine chemicals business increased segment income by $27 million.
The remaining $38 million increase in segment income was primarily due to increased volumes, lower manufacturing costs, and the absence of the 2005 hurricane costs of $3 million, net of 2006 insurance recoveries, which were only partially offset by increased overhead costs in our optical products business to support growth and the negative impact of inflation.
Commodity Chemicals sales decreased $48 million or 3% in 2006.
Sales decreased 4% due to lower chlor-alkali volumes and increased 1% due to higher selling prices.
Segment income decreased $28 million in 2006.
The yearover-year decline in segment income was due primarily to lower sales volumes and higher manufacturing costs associated with reduced production levels.
The absence of the 2005 charges for direct costs related to hurricanes increased segment income by $29 million.
The impact of higher selling prices; lower inflation, primarily natural gas costs, and an insurance recovery of $10 million related to the 2005 hurricane losses also increased segment income in 2006.
Our fourth-quarter chlor-alkali sales volumes and earnings were negatively impacted by production outages at several customers over the last two months of 2006.
It is uncertain when some of these customers will return to a normal level of production which may impact the sales and earnings of our chlor-alkali business in early 2007.
Glass sales increased $15 million or 1% in 2006.
Sales increased 1% due to improved volumes resulting from a combination of organic growth and an acquisition.
A slight positive impact on sales due to foreign currency translation offset a slight decline in pricing.
Volumes increased in the performance glazings, automotive replacement glass and services and fiber glass businesses.
Automotive OEM glass volume declined during 2006.
Pricing was also up in performance glazings, but declined in the other glass businesses.
Segment income increased $25 million in 2006.
This increase in segment income was primarily the result of higher equity earnings from our Asian fiber glass joint ventures, higher royalty income and lower manufacturing and natural gas costs, which more than offset the negative impacts of higher inflation, lower margin mix of sales and reduced selling prices.
Our fiber glass operating segment made progress during 2006 in achieving our multi-year plan to improve profitability and cash flow.
A transformation of our supply chain, which includes production of a more focused product mix at each manufacturing plant, manufacturing cost reduction initiatives and improved equity earnings from our Asian joint ventures are the primary focus and represent the critical success factors in this plan.
During 2006, our new joint venture in China started producing high labor content fiber glass reinforcement products, which will allow us to refocus our U. S.  production capacity on higher margin, direct process products.
The 2006 earnings improvement by our fiber glass operating segment accounted for the bulk of the 2006 improvement in the Glass reportable business segment income.
Management’s Discussion and Analysis of increased volumes in our Performance and Applied Coatings, Optical and Specialty Materials and Glass reportable business segments was offset by volume declines in the Commodity Chemicals reportable business segment.
The volume decline in the Commodity Chemicals reportable business segment was due in part to lost sales resulting from the impact of Hurricane Rita, as discussed below.
Cost of sales as a percentage of sales increased to 63.5% as compared to 63.1% in 2004.
Inflation, including higher coatings raw material costs and higher energy costs in our Commodity Chemicals and Glass reportable business segments increased our cost of sales.
Selling, general and administrative expense declined slightly as a percentage of sales to 17.4% despite increasing by $56 million in 2005.
These costs increased primarily due to increased advertising in our optical products operating segment and higher expenses due to store expansions in our architectural coatings operating segment.
Interest expense declined $9 million in 2005, reflecting the year over year reduction in the outstanding debt balance of $80 million.
Other charges increased $284 million in 2005 primarily due to pretax charges of $132 million related to the Marvin legal settlement, net of $18 million in insurance recoveries, $61 million for the federal glass class action antitrust legal settlement, $34 million of direct costs related to the impact of hurricanes Rita and Katrina, $27 million for an asset impairment charge in our fine chemicals operating segment, $19 million for debt refinancing costs and an increase of $12 million for environmental remediation costs.
Net income and earnings per share – assuming dilution for 2005 were $596 million and $3.49 respectively, compared to $683 million and $3.95, respectively, for 2004.
Net income in 2005 included aftertax charges of $117 million, or 68 cents a share, for legal settlements net of insurance; $21 million, or 12 cents a share for direct costs related to the impact of hurricanes Katrina and Rita; $17 million, or 10 cents a share related to an asset impairment charge related to our fine chemicals business; and $12 million, or 7 cents a share, for debt refinancing costs.
The legal settlements net of insurance include aftertax charges of $80 million for the Marvin legal settlement, net of insurance recoveries, and $37 million for the impact of the federal glass class action antitrust legal settlement.
Net income for 2005 and 2004 included an aftertax charge of $13 million, or 8 cents a share, and $19 million, or 11 cents a share, respectively, to reflect the net increase in the current value of the Company’s obligation relating to asbestos claims under the PPG Settlement Arrangement.
Results of Reportable Business Segments
## Table 2 ##
Sales of Industrial Coatings increased $103 million or 4% in 2005.
Sales increased 2% due to higher selling prices in our industrial and packaging coatings businesses and 2% due to the positive effects of foreign currency translation.
Volume was flat year over year as increased volume in automotive coatings was offset by lower volume in industrial and packaging coatings.
Segment income decreased $54 million in 2005.
The decrease in segment income was due to the adverse impact of inflation, including raw materials costs increases of about $170 million, which more than offset the benefits of higher selling prices, improved sales margin mix, formula cost reductions, lower manufacturing costs and higher other income.
Performance and Applied Coatings sales increased $190 million or 8% in 2005.
Sales increased 4% due to higher selling prices in all three operating segments, 3% due to increased volumes as increases in our aerospace and architectural coatings businesses exceeded volume declines in automotive refinish, and 1% due to the positive effects of foreign currency translation.
Performance and Applied Coatings segment income increased $13 million in 2005.
Segment income increased due to the impact of increased sales volumes described above and higher other income, which combined to offset the negative impacts of higher overhead costs to support the growth in these businesses, particularly in the architectural coatings business, and higher manufacturing costs.
The impact of higher selling prices fully offset the adverse impact of inflation, including raw materials cost increases of about $75 million.
Optical and Specialty Materials sales increased $62 million or 8%.
Sales increased 8% due to higher sales volumes in our optical products and silica businesses, which offset lower sales volumes in our fine chemicals business.
Sales increased 1% due to an acquisition in our optical products business and decreased 1% due to lower pricing.
Segment income decreased $28 million.
The primary factor decreasing segment income was the $27 million impairment charge related to our fine chemicals business.
The impact of higher sales volumes described above was offset by higher inflation, including increased energy costs; lower selling prices; increased overhead costs in our optical products business to support growth
Notes to the Financial Statements expected to be recognized as expense over a weighted average period of 1.4 years.
The following table presents stock option activity for the years ended Dec.  31, 2006, 2005 and 2004:
## Table 3 ##
Restricted Stock Units Beginning in 2005, comparable long-term incentive value has been delivered to selected key management employees by reducing reliance on stock options and incorporating RSUs, which have either time or performance-based vesting features.
The fair value of an RSU is equal to the market value of a share of stock on the date of grant.
Time-based RSUs vest over the three-year period following the date of grant, unless forfeited, and will be paid out in the form of stock, cash or a combination of both at the end of the three-year vesting period.
Performance-based RSUs vest based on achieving specific annual performance targets for earnings per share growth and cash flow return on capital over the three-year period following the date of grant.
Unless forfeited, the performance-based RSUs will be paid out in the form of stock, cash or a combination of both at the end of the three-year vesting period if PPG meets the performance targets.
The actual award for performance-based vesting may range from 0% to 150% of the original grant, as 50% of the grant vests in each year that targets are met during the three-year period.
If the designated performance targets are not met in any of the three years in an award period, no payout will be made on the performance-based RSUs.
Compensation cost is generally recognized over the vesting period of the award.
However, the awards provide that an individual who retires from PPG automatically vests in any award that has been outstanding for more than 12 months.
As such, compensation cost related to grants to participants who are eligible to retire as of the date of the grant is recognized over a period of 12 months, as this represents the effective vesting period.
For the purposes of expense recognition, we have assumed that the performance-based RSUs granted in 2005 and 2006 will vest at the 100% level.
The performance targets for 2005 and 2006 were achieved.
The following table summarizes RSU activity under the long-term incentive plan for the year ended Dec.  31, 2006:
## Table 4 ##
There was $12 million of total unrecognized compensation cost related to nonvested RSUs outstanding as of Dec.  31, 2006.
This cost is expected to be recognized as expense over a weighted average period of 1.6 years.
Contingent Share Grants The Company also provides grants of contingent shares that will be earned based on PPG total shareholder return over the three-year period following the date of grant.
Contingent share grants (“TSR”) are made annually and are paid out at the end of each three-year period if the company achieves target performance.
Performance is measured by determining the percentile rank of the total shareholder return of PPG Common Stock (stock price plus accumulated dividends) in relation to the total shareholder return of the S&P 500 and of the Basic Materials sector of the S&P 500.
Compensation expense is recognized over the three-year award period based on fair value, giving consideration to the Company’s percentile rank of total shareholder return in relation to the S&P 500 and Basic Materials sector.
The payment of awards following the three-year award period will be based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 220% of the initial grant.
A payout of 100% is earned if the target performance is achieved.
Contingent share awards earn dividend equivalents during the threeyear award period, which are credited to participants in the form of Common Stock Equivalents.
Any payments made at the end of the award period may be in the form of stock, cash or a combination of both.
The TSR awards qualify as liability awards, and expense will be recognized over the award period based on the fair value of the awards as remeasured in each reporting period until settlement of the awards.
As of Dec.  31, 2006, there was $3 million of total unrecognized compensation cost related to outstanding TSR awards based on the current estimate of fair value.
This cost is expected to be recognized as expense over a weighted average period of 1.8 years.20.
Advertising Costs Advertising costs are expensed as incurred and totaled $121 million, $105 million and $91 million in 2006, 2005 and 2004, respectively.21.
Research and Development
## Table 5 ##
Notes to the Financial Statements 22.
Quarterly Financial Information (unaudited)
## Table 6 ##
(1) Exclusive of depreciation and amortization.23.
Reportable Business Segment Information Segment Organization and Products PPG is a multinational manufacturer with fourteen operating segments that are organized based on our major products lines.
These operating segments are also our reporting units for purposes of testing goodwill for impairment (see Note 1).
The operating segments have been aggregated based on the nature of their products, production processes, end-use markets and methods of distribution into five reportable business segments.
In 2006, we have changed the composition of our reportable business segment information to reflect management’s current view of our organization and to provide further clarity in our reporting of business performance.
The reportable business segment information presented for 2005 and 2004 has been restated to conform to the 2006 presentation.
The Industrial Coatings reportable business segment is comprised of the automotive, industrial and packaging coatings operating segments.
This reportable business segment primarily supplies a variety of protective and decorative coatings and finishes along with adhesives, sealants, inks and metal pretreatment products.
The Performance and Applied Coatings reportable business segment is comprised of the refinish, aerospace and architectural coatings operating segments.
This reportable business segment primarily supplies a variety of protective and decorative coatings, sealants and finishes along with paint strippers, transparent armor, transparencies, stains and related chemicals that are used by customers in addition to our coatings, sealants and finishes.
The Optical and Specialty Materials reportable business segment is comprised of the optical products, silica and fine chemicals operating segments.
The primary Optical and Specialty Materials products are Transitions?
lenses, sunlenses, optical materials, polarized film, amorphous precipitated silica products, advanced pharmaceutical intermediates and bulk active ingredients.
Transitions?
lenses are processed and distributed by PPG’s 51%-owned joint venture with Essilor International.
The Commodity Chemicals reportable business segment is comprised of the chlor-alkali and derivatives operating segment.
The primary chlor-alkali and derivative products are chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, chlorinated benzenes, calcium hypochlorite, ethylene dichloride and phosgene derivatives.
The Glass reportable business segment is comprised of the automotive OEM glass, automotive replacement glass and services, performance glazings and fiber glass operating segments.
This reportable business segment primarily supplies flat glass, fabricated glass and continuous-strand fiber glass products.
Production facilities and markets for Industrial Coatings, Performance and Applied Coatings, Optical and Specialty Materials, Commodity Chemicals and Glass are predominantly in North America and Europe.
Our reportable business segments continue to pursue opportunities to further develop markets in Asia, Eastern Europe and Latin America.
Each of the reportable business segments in which PPG is engaged is highly competitive.
However, the diversification of product lines and worldwide markets served tends to minimize the impact on PPG’s total sales and earnings from changes in demand in a particular market or in a particular geographic area.
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.
The Company allocates resources to operating segments and evaluates the performance of operating segments based upon segment income, which is earnings before interest expense—net, income taxes and minority interest and which may exclude certain charges which are considered to be unusual or non-recurring.
Legacy costs include current costs related to former operations of the Company, including certain environmental remediation, pension and other postretirement benefit costs, and certain charges for legal and other matters which are considered to be unusual or non-recurring.
These legacy costs are excluded from the segment income that is used to evaluate the performance of the operating segments.
A substantial portion of corporate administrative expenses is allocated to the operating segments.
The portion not allocated to the operating segments primarily represents the cost of corporate legal cases, net of related insurance recoveries, a business process redesign project in Europe and certain insurance and employee benefit programs and is included in the amount presented as Corporate loss.
Net periodic pension expense is allocated to the operating segments.
For Optical and Specialty Materials, Commodity Chemicals and Glass, intersegment sales and transfers are recorded at selling prices that approximate market prices.
Product movement between Industrial Coatings and Performance and Applied Coatings is very limited, is accounted for as an inventory transfer and is recorded at cost plus a mark-up, the impact of which is not significant to the segment income of the two coatings reportable business segments.

Tables referenced above, in order (Table 0 first):
<table><tr><td><i>Plan category</i></td><td><i>Numberof securities to be issued upon exercise of outstanding options, warrants and rights</i>  <i></i> <i></i> ( <i></i> a <i></i> ) <i></i></td><td><i></i> Weighted- average exercise price of outstanding options, warrants and rights <i></i> <i>(b)</i></td><td><i>Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))</i>  <i></i> <i></i> (c) <i></i></td></tr><tr><td>Equity compensation plans approved by security holders<sup>-1</sup></td><td>9,413,216</td><td>$58.35</td><td>10,265,556</td></tr><tr><td>Equity compensation plans not approved by security holders<sup>-2, -3</sup></td><td>2,089,300</td><td>$70.00</td><td>—</td></tr><tr><td>Total</td><td>11,502,516</td><td>$60.57</td><td>10,265,556</td></tr></table>
<table><tr><td></td><td><i>Net sales</i></td><td><i>Segment income</i></td></tr><tr><td><i>(Millions)</i></td><td>2006</td><td>2005</td><td>2006</td><td>2005</td></tr><tr><td>Industrial Coatings</td><td>$3,236</td><td>$2,921</td><td>$349</td><td>$284</td></tr><tr><td>Performance and Applied Coatings</td><td>3,088</td><td>2,668</td><td>514</td><td>464</td></tr><tr><td>Optical and Specialty Materials</td><td>1,001</td><td>867</td><td>223</td><td>158</td></tr><tr><td>Commodity Chemicals</td><td>1,483</td><td>1,531</td><td>285</td><td>313</td></tr><tr><td>Glass</td><td>2,229</td><td>2,214</td><td>148</td><td>123</td></tr></table>
<table><tr><td></td><td><i>Net sales</i></td><td><i>Segment income</i></td></tr><tr><td><i>(Millions)</i></td><td>2005</td><td>2004</td><td>2005</td><td>2004<sup></sup></td></tr><tr><td>Industrial Coatings<sup></sup></td><td>$2,921</td><td>$2,818</td><td>$284</td><td>$338</td></tr><tr><td>Performance and Applied Coatings</td><td>2,668</td><td>2,478</td><td>464</td><td>451</td></tr><tr><td>Optical and Specialty Materials</td><td>867</td><td>805</td><td>158</td><td>186</td></tr><tr><td>Commodity Chemicals</td><td>1,531</td><td>1,229</td><td>313</td><td>113</td></tr><tr><td>Glass</td><td>2,214</td><td>2,183</td><td>123</td><td>166</td></tr></table>
<table><tr><td><i>(Millions)</i></td><td><i>2006</i></td><td><i>2005</i></td><td><i>2004</i></td></tr><tr><td>Total intrinsic value of stock options exercised</td><td>$16</td><td>$42</td><td>$29</td></tr><tr><td>Cash received from stock option exercises</td><td>55</td><td>138</td><td>121</td></tr><tr><td>Income tax benefit from the exercise of stock options</td><td>6</td><td>16</td><td>10</td></tr><tr><td>Total fair value of stock options vested</td><td>4</td><td>11</td><td>7</td></tr></table>
<table><tr><td></td><td>Number of Shares</td><td>Weighted Average Fair Value</td><td>Intrinsic Value (in millions)</td></tr><tr><td>Outstanding, Jan. 1, 2006</td><td>236,100</td><td>$65.91</td><td>$14</td></tr><tr><td>Granted</td><td>250,623</td><td>$54.23</td><td></td></tr><tr><td>Forfeited</td><td>-11,335</td><td>$57.76</td><td></td></tr><tr><td><i></i> <i>Outstanding, Dec. 31, 2006</i></td><td>475,388</td><td>$59.95</td><td>$31</td></tr></table>
<table><tr><td><i>(Millions)</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Research and development – total</td><td>$334</td><td>$325</td><td>$321</td></tr><tr><td>Less depreciation on research facilities</td><td>16</td><td>16</td><td>18</td></tr><tr><td><i></i> <i>Research and development – net</i></td><td>$318</td><td>$309</td><td>$303</td></tr></table>
<table><tr><td></td><td><i>Net Sales (Millions)</i></td><td><i>Cost of Sales<sup>-1</sup></i><i>(Millions)</i></td><td><i>Net Income (Millions)</i></td><td><i>Earnings Per Common Share</i></td><td><i>Earnings Per Common Share– Assuming Dilution</i></td></tr><tr><td><i>2006 quarter ended</i></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>March 31<sup></sup></td><td>$2,638</td><td>$1,691</td><td>$184</td><td>$1.11</td><td>$1.11</td></tr><tr><td>June 30<sup></sup></td><td>2,824</td><td>1,747</td><td>280</td><td>1.69</td><td>1.68</td></tr><tr><td>September 30</td><td>2,802</td><td>1,791</td><td>90</td><td>.54</td><td>.54</td></tr><tr><td>December 31</td><td>2,773</td><td>1,807</td><td>157</td><td>.95</td><td>.94</td></tr><tr><td><i></i> <i>Total</i></td><td>$11,037</td><td>$7,036</td><td>$711</td><td>$4.29</td><td>$4.27</td></tr><tr><td><i>2005 quarter ended</i></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>March 31</td><td>$2,493</td><td>$1,558</td><td>$95</td><td>$.55</td><td>$.55</td></tr><tr><td>June 30</td><td>2,656</td><td>1,650</td><td>231</td><td>1.35</td><td>1.34</td></tr><tr><td>September 30</td><td>2,547</td><td>1,614</td><td>157</td><td>.93</td><td>.92</td></tr><tr><td>December 31</td><td>2,505</td><td>1,651</td><td>113</td><td>.68</td><td>.68</td></tr><tr><td><i></i> <i>Total</i></td><td>$10,201</td><td>$6,473</td><td>$596</td><td>$3.51</td><td>$3.49</td></tr></table>

Question: what was the percentage change in earnings per share from 2005 to 2006?
Answer: 0.2235
Reasoning program: subtract(4.27,3.49), divide(#0,3.49)