2013 . in 2011 , asset returns were lower than expected by $ 471 million and discount rates declined resulting in an unfavorable mark-to-market adjustment recorded in earnings in the fourth quarter of 2011 . a portion of the 2011 pension mark-to- market adjustment was capitalized as an inventoriable cost at the end of 2011 . this amount was recorded in earnings in the first quarter of 2012 . mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities . the resulting gains/losses are recognized in the quarter they occur . ( c ) costs incurred related to execution of project k , a four-year efficiency and effectiveness program . the focus of the program will be to strengthen existing businesses in core markets , increase growth in developing and emerging markets , and drive an increased level of value-added innovation . the program is expected to provide a number of benefits , including an optimized supply chain infrastructure , the implementation of global business services , and a new global focus on categories . ( d ) underlying gross margin , underlying sga% ( sga % ) , and underlying operating margin are non-gaap measures that exclude the impact of pension plans and commodity contracts mark-to- market adjustments and project k costs . we believe the use of such non-gaap measures provides increased transparency and assists in understanding our underlying operating performance . underlying gross margin declined by 110 basis points in 2013 due to the impact of inflation , net of productivity savings , lower operating leverage due to lower sales volume , and the impact of the lower margin structure of the pringles business . underlying sg&a% ( sg&a % ) improved by 110 basis points as a result of favorable overhead leverage and synergies resulting from the pringles acquisition , as well as reduced investment in consumer promotions . underlying gross margin declined by 180 basis points in 2012 as a result of cost inflation , net of cost savings , and the lower margin structure of the pringles business . underlying sga% ( sga % ) was consistent with 2011 . our underlying gross profit , underlying sga , and underlying operating profit measures are reconciled to the most comparable gaap measure as follows: .
what percent of 2013 sga is due to project k?
( a ) gross profit is equal to net sales less cost of goods sold . ( b ) includes mark-to-market adjustments for pension plans and commodity contracts as reflected in selling , general and administrative expense as well as cost of goods sold . actuarial gains/losses for pension plans are recognized in the year they occur . in 2013 , asset returns exceeds expectations by $ 545 million and discount rates exceeded expectations by 65 basis points resulting in a favorable mark-to-market adjustment recorded in earnings in the fourth quarter of 2013 . a portion of this mark-to-market adjustment was capitalized as inventoriable cost at the end of 2013 . in 2012 , asset returns exceeded expectations by $ 211 million but discount rates fell almost 100 basis points resulting in an unfavorable mark-to-market adjustment recorded in earnings in the fourth quarter of 2012 . a portion of the 2012 pension mark-to-market adjustment was capitalized as an inventoriable cost at the end of 2012 . this amount has been recorded in earnings in the first quarter of 2013 . in 2011 , asset returns were lower than expected by $ 471 million and discount rates declined resulting in an unfavorable mark-to-market adjustment recorded in earnings in the fourth quarter of 2011 . a portion of the 2011 pension mark-to- market adjustment was capitalized as an inventoriable cost at the end of 2011 . this amount was recorded in earnings in the first quarter of 2012 . mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities . the resulting gains/losses are recognized in the quarter they occur . ( c ) costs incurred related to execution of project k , a four-year efficiency and effectiveness program . the focus of the program will be to strengthen existing businesses in core markets , increase growth in developing and emerging markets , and drive an increased level of value-added innovation . the program is expected to provide a number of benefits , including an optimized supply chain infrastructure , the implementation of global business services , and a new global focus on categories . ( d ) underlying gross profit , underlying sga , and underlying operating profit are non-gaap measures that exclude the impact of pension plans and commodity contracts mark-to- market adjustments and project k costs . we believe the use of such non-gaap measures provides increased transparency and assists in understanding our underlying operating performance . restructuring and cost reduction activities we view our continued spending on restructuring and cost reduction activities as part of our ongoing operating principles to provide greater visibility in achieving our long-term profit growth targets . initiatives undertaken are currently expected to recover cash implementation costs within a five-year period of completion . upon completion ( or as each major stage is completed in the case of multi-year programs ) , the project begins to deliver cash savings and/or reduced depreciation . cost reduction initiatives prior to the announcement of project k in 2013 , we commenced various cogs and sga cost reduction initiatives . the cogs initiatives are intended to optimize our global manufacturing network , reduce waste , and develop best practices on a global basis . the sga initiatives focus on improvements in the efficiency and effectiveness of various global support functions . during 2013 , we recorded $ 42 million of charges associated with cost reduction initiatives . the charges .