expansion of the retail segment has required and will continue to require a substantial investment in fixed assets and related infrastructure , operating lease commitments , personnel , and other operating expenses . capital expenditures associated with the retail segment were $ 132 million in 2005 , bringing the total capital expenditures since inception of the retail segment to approximately $ 529 million . as of september 24 , 2005 , the retail segment had approximately 3673 employees and had outstanding operating lease commitments associated with retail store space and related facilities of approximately $ 606 million . the company would incur substantial costs should it choose to terminate its retail segment or close individual stores . such costs could adversely affect the company 2019s results of operations and financial condition . gross margin gross margin for each of the last three fiscal years are as follows ( in millions , except gross margin percentages ) : september 24 , september 25 , september 27 .
what was the largest gross margin in millions dollars over the three year period?
gross margin increased in 2005 to 29.0% ( 29.0 % ) of net sales from 27.3% ( 27.3 % ) of net sales in 2004 . the company 2019s gross margin during 2005 increased due to more favorable pricing on certain commodity components including lcd flat-panel displays and dram memory ; an increase in higher margin software sales ; a favorable shift in direct sales related primarily to the company 2019s retail and online stores ; and higher overall revenue that provided for more leverage on fixed production costs . these increases to gross margin were partially offset by an increase in lower margin ipod sales . the company anticipates that its gross margin and the gross margin of the overall personal computer and consumer electronics industries will remain under pressure in light of price competition , especially for the ipod product line . the company expects gross margin percentage to decline in the first quarter of 2006 primarily as a result of a shift in the mix of revenue toward lower margin products such as the ipod and content from the itunes music store . the foregoing statements regarding the company 2019s expected gross margin are forward-looking . there can be no assurance that current gross margins will be maintained or targeted gross margin levels will be achieved . in general , gross margins and margins on individual products , including ipods , will remain under significant downward pressure due to a variety of factors , including continued industry wide global pricing pressures , increased competition , compressed product life cycles , potential increases in the cost and availability of raw material and outside manufacturing services , and potential changes to the company 2019s product mix , including higher unit sales of consumer products with lower average selling prices and lower gross margins . in response to these downward pressures , the company expects it will continue to take pricing actions with respect to its products . gross margins could also be affected by the company 2019s ability to effectively manage product quality and warranty costs and to stimulate demand for certain of its products . due to the company 2019s significant international operations , financial results can be significantly affected in the short-term by fluctuations in exchange rates. .