stock-based compensation 2013 we have several stock-based compensation plans under which employees and non-employee directors receive stock options , nonvested retention shares , and nonvested stock units .
we refer to the nonvested shares and stock units collectively as 201cretention awards 201d .
we issue treasury shares to cover option exercises and stock unit vestings , while new shares are issued when retention shares vest .
we adopted fasb statement no .
123 ( r ) , share-based payment ( fas 123 ( r ) ) , on january 1 , 2006 .
fas 123 ( r ) requires us to measure and recognize compensation expense for all stock-based awards made to employees and directors , including stock options .
compensation expense is based on the calculated fair value of the awards as measured at the grant date and is expensed ratably over the service period of the awards ( generally the vesting period ) .
the fair value of retention awards is the stock price on the date of grant , while the fair value of stock options is determined by using the black-scholes option pricing model .
we elected to use the modified prospective transition method as permitted by fas 123 ( r ) and did not restate financial results for prior periods .
we did not make an adjustment for the cumulative effect of these estimated forfeitures , as the impact was not material .
as a result of the adoption of fas 123 ( r ) , we recognized expense for stock options in 2006 , in addition to retention awards , which were expensed prior to 2006 .
stock-based compensation expense for the year ended december 31 , 2006 was $ 22 million , after tax , or $ 0.08 per basic and diluted share .
this includes $ 9 million for stock options and $ 13 million for retention awards for 2006 .
before taxes , stock-based compensation expense included $ 14 million for stock options and $ 21 million for retention awards for 2006 .
we recorded $ 29 million of excess tax benefits as an inflow of financing activities in the consolidated statement of cash flows for the year ended december 31 , 2006 .
prior to the adoption of fas 123 ( r ) , we applied the recognition and measurement principles of accounting principles board opinion no .
25 , accounting for stock issued to employees , and related interpretations .
no stock- based employee compensation expense related to stock option grants was reflected in net income , as all options granted under those plans had a grant price equal to the market value of our common stock on the date of grant .
stock-based compensation expense related to retention shares , stock units , and other incentive plans was reflected in net income .
the following table details the effect on net income and earnings per share had compensation expense for all of our stock-based awards , including stock options , been recorded in the years ended december 31 , 2005 and 2004 based on the fair value method under fasb statement no .
123 , accounting for stock-based compensation .
pro forma stock-based compensation expense year ended december 31 , millions of dollars , except per share amounts 2005 2004 .

<i>Pro Forma Stock-Based Compensation Expense</i>
Year Ended December 31,
<i>Millions of Dollars, Except Per Share Amounts</i>
2005
2004
Net income, as reported
$1,026
$604
Stock-based employee compensation expense, reported in net income, net of tax
13
13
Total stock-based employee compensation expense determined under fair value–based method for allawards, net of tax [a]
(50)
(35)
Pro forma net income
$989
$582
Earnings per share – basic, as reported
$3.89
$2.33
Earnings per share – basic, pro forma
$3.75
$2.25
Earnings per share – diluted, as reported
$3.85
$2.30
Earnings per share – diluted, pro forma
$3.71
$2.22

[a] stock options for executives granted in 2003 and 2002 included a reload feature .
this reload feature allowed executives to exercise their options using shares of union pacific corporation common stock that they already owned and obtain a new grant of options in the amount of the shares used for exercise plus any shares withheld for tax purposes .
the reload feature of these option grants could only be exercised if the .

Question: Analyse this data from a financial earnings document. what was the percentage difference of earnings per share 2013 basic pro forma compared to earnings per share 2013 diluted pro forma in 2005?
Choices:
1
0.01067
0.26954
0
0.01078
Correct choice index: 1