notes to the financial statements as a reduction of debt or accrued interest .
new esop shares that have been released are considered outstanding in computing earnings per common share .
unreleased new esop shares are not considered to be outstanding .
pensions and other postretirement benefits in september 2006 , the fasb issued sfas no .
158 , 201cemployers 2019 accounting for defined benefit pension and other postretirement plans , an amendment of fasb statements no .
87 , 88 , 106 , and 132 ( r ) . 201d under this new standard , a company must recognize a net liability or asset to report the funded status of its defined benefit pension and other postretirement benefit plans on its balance sheets as well as recognize changes in that funded status , in the year in which the changes occur , through charges or credits to comprehensive income .
sfas no .
158 does not change how pensions and other postretirement benefits are accounted for and reported in the income statement .
ppg adopted the recognition and disclosure provisions of sfas no .
158 as of dec .
31 , 2006 .
the following table presents the impact of applying sfas no .
158 on individual line items in the balance sheet as of dec .
31 , 2006 : ( millions ) balance sheet caption : before application of sfas no .
158 ( 1 ) adjustments application of sfas no .
158 .

<i>(Millions)</i><i>Balance Sheet Caption:</i>
Before Application of SFAS No. 158 (1)
Adjustments
After Application of SFAS No. 158
Other assets
$494
$105
$599
Deferred income tax liability
(193)
57
(136)
Accrued pensions
(371)
(258)
(629)
Other postretirement benefits
(619)
(409)
(1,028)
Accumulated other comprehensive loss
480
505
985

other postretirement benefits ( 619 ) ( 409 ) ( 1028 ) accumulated other comprehensive loss 480 505 985 ( 1 ) represents balances that would have been recorded under accounting standards prior to the adoption of sfas no .
158 .
see note 13 , 201cpensions and other postretirement benefits , 201d for additional information .
derivative financial instruments and hedge activities the company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet .
the accounting for changes in the fair value of a derivative depends on the use of the derivative .
to the extent that a derivative is effective as a cash flow hedge of an exposure to future changes in value , the change in fair value of the derivative is deferred in accumulated other comprehensive ( loss ) income .
any portion considered to be ineffective is reported in earnings immediately .
to the extent that a derivative is effective as a hedge of an exposure to future changes in fair value , the change in the derivative 2019s fair value is offset in the statement of income by the change in fair value of the item being hedged .
to the extent that a derivative or a financial instrument is effective as a hedge of a net investment in a foreign operation , the change in the derivative 2019s fair value is deferred as an unrealized currency translation adjustment in accumulated other comprehensive ( loss ) income .
product warranties the company accrues for product warranties at the time the associated products are sold based on historical claims experience .
as of dec .
31 , 2006 and 2005 , the reserve for product warranties was $ 10 million and $ 4 million , respectively .
pretax charges against income for product warranties in 2006 , 2005 and 2004 totaled $ 4 million , $ 5 million and $ 4 million , respectively .
cash outlays related to product warranties were $ 5 million , $ 4 million and $ 4 million in 2006 , 2005 and 2004 , respectively .
in addition , $ 7 million of warranty obligations were assumed as part of the company 2019s 2006 business acquisitions .
asset retirement obligations an asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition , construction , development or normal operation of that long-lived asset .
we recognize asset retirement obligations in the period in which they are incurred , if a reasonable estimate of fair value can be made .
the asset retirement obligation is subsequently adjusted for changes in fair value .
the associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life .
ppg 2019s asset retirement obligations are primarily associated with closure of certain assets used in the chemicals manufacturing process .
as of dec .
31 , 2006 and 2005 the accrued asset retirement obligation was $ 10 million and as of dec .
31 , 2004 it was $ 9 million .
in march 2005 , the fasb issued fasb interpretation ( 201cfin 201d ) no .
47 , 201caccounting for conditional asset retirement obligations , an interpretation of fasb statement no .
143 201d .
fin no .
47 clarifies the term conditional asset retirement obligation as used in sfas no .
143 , 201caccounting for asset retirement obligations 201d , and provides further guidance as to when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation .
effective dec .
31 , 2005 , ppg adopted the provisions of fin no .
47 .
our only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain ppg production facilities .
the asbestos in our production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed .
this asbestos is encapsulated in place and , as a result , there is no current legal requirement to abate it .
inasmuch as there is no requirement to abate , we do not have any current plans or an intention to abate and therefore the timing , method and cost of future abatement , if any , are not 40 2006 ppg annual report and form 10-k 4282_txt .

Question: Analyse this data from a financial earnings document. what would the cash expense for product warranties be in 2007 if the amounts increased the same percentage as in 2006 ( in millions ) ?
Choices:
625
0.25
6.25
1.25
5
Correct choice index: 2