notes to consolidated financial statements 2014 ( continued ) company 2019s financial statements and establishes guidelines for recognition and measurement of a tax position taken or expected to be taken in a tax return .
as a result of this adoption , we recorded a $ 1.5 million increase in the liability for unrecognized income tax benefits , which was accounted for as a $ 1.0 million reduction to the june 1 , 2007 balance of retained earnings and a $ 0.5 million reduction to the june 1 , 2007 balance of additional paid-in capital .
as of the adoption date , other long-term liabilities included liabilities for unrecognized income tax benefits of $ 3.8 million and accrued interest and penalties of $ 0.7 million .
a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ( in thousands ) : .

Balance at June 1, 2007
$3,760
Additions based on tax positions related to the current year
93
Additions for tax positions of prior years
50
Reductions for tax positions of prior years
—
Settlements with taxing authorities
(190)
Balance at May 31, 2008
$3,713

as of may 31 , 2008 , the total amount of gross unrecognized tax benefits that , if recognized , would affect the effective tax rate is $ 3.7 million .
we recognize accrued interest related to unrecognized income tax benefits in interest expense and accrued penalty expense related to unrecognized tax benefits in sales , general and administrative expenses .
during fiscal 2008 , we recorded $ 0.3 million of accrued interest and penalty expense related to the unrecognized income tax benefits .
we anticipate the total amount of unrecognized income tax benefits will decrease by $ 1.1 million net of interest and penalties from our foreign operations within the next 12 months as a result of the expiration of the statute of limitations .
we conduct business globally and file income tax returns in the united states federal jurisdiction and various state and foreign jurisdictions .
in the normal course of business , we are subject to examination by taxing authorities throughout the world , including such major jurisdictions as the united states and canada .
with few exceptions , we are no longer subject to income tax examinations for years ended may 31 , 2003 and prior .
we are currently under audit by the internal revenue service of the united states for the 2004 to 2005 tax years .
we expect that the examination phase of the audit for the years 2004 to 2005 will conclude in fiscal 2009 .
note 8 2014shareholders 2019 equity on april 5 , 2007 , our board of directors approved a share repurchase program that authorized the purchase of up to $ 100 million of global payments 2019 stock in the open market or as otherwise may be determined by us , subject to market conditions , business opportunities , and other factors .
under this authorization , we repurchased 2.3 million shares of our common stock during fiscal 2008 at a cost of $ 87.0 million , or an average of $ 37.85 per share , including commissions .
as of may 31 , 2008 , we had $ 13.0 million remaining under our current share repurchase authorization .
no amounts were repurchased during fiscal 2007 .
note 9 2014share-based awards and options as of may 31 , 2008 , we had four share-based employee compensation plans .
for all share-based awards granted after june 1 , 2006 , compensation expense is recognized on a straight-line basis .
the fair value of share- based awards granted prior to june 1 , 2006 is amortized as compensation expense on an accelerated basis from the date of the grant .
there was no share-based compensation capitalized during fiscal 2008 , 2007 , and 2006. .

Question: Analyse this data from a financial earnings document. what is the net change in the balance of unrecognized tax benefits from 2007 to 2008?
Choices:
13960880
-47.0
-147
0
7473
Correct choice index: 1