Management’s Discussion and Analysis Net Interest Income 2013 versus 2012.
Net interest income on the consolidated statements of earnings was $3.39 billion for 2013, 13% lower than 2012.
The decrease compared with 2012 was primarily due to lower average yields on financial instruments owned, at fair value, partially offset by lower interest expense on financial instruments sold, but not yet purchased, at fair value and collateralized financings.2012 versus 2011.
Net interest income on the consolidated statements of earnings was $3.88 billion for 2012, 25% lower than 2011.
The decrease compared with 2011 was primarily due to lower average yields on financial instruments owned, at fair value and collateralized agreements.
See “Statistical Disclosures — Distribution of Assets, Liabilities and Shareholders’ Equity” for further information about our sources of net interest income.
Operating Expenses Our operating expenses are primarily influenced by compensation, headcount and levels of business activity.
Compensation and benefits includes salaries, discretionary compensation, amortization of equity awards and other items such as benefits.
Discretionary compensation is significantly impacted by, among other factors, the level of net revenues, overall financial performance, prevailing labor markets, business mix, the structure of our share-based compensation programs and the external environment.
The table below presents our operating expenses and total staff (which includes employees, consultants and temporary staff).
## Table 0 ##
ITEM 6 SELECTED FINANCIAL DATA The following tables show Intuit’s selected financial information for the past five fiscal years.
The comparability of the information is affected by a variety of factors, including acquisitions and divestitures of businesses, issuance and repayment of long-term debt, share-based compensation expense, amortization of acquired technology and other acquired intangible assets, repurchases of common stock under our stock repurchase programs, and the payment of cash dividends.
In fiscal 2007 we issued $1 billion in senior notes and in fiscal 2012 we repaid $500 million of those notes when they became due using cash from operations.
In fiscal 2008 through fiscal 2012 we acquired several companies, including Homestead Technologies Inc. , Electronic Clearing House, Inc. , PayCycle, Inc. , Mint Software Inc. , Medfusion, Inc.  and Demandforce, Inc.  We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition.
We sold our Intuit Distribution Management Solutions business in fiscal 2008 and our Intuit Real Estate Solutions business in fiscal 2010.
In August 2012 we signed a definitive agreement to sell our Intuit Websites business.
We accounted for these three businesses as discontinued operations and have therefore reclassified the selected financial data for all periods presented below to reflect them as such.
To better understand the information in these tables, investors should read “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of this Report, and the financial statements and related notes in Item 8 of this Report.
## Table 1 ##
device access to their information.
Our TurboTax solutions, for example, let customers prepare and file their entire tax returns online, via tablet, mobile phone, or the desktop.
And we seek to use data to delight customers by eliminating the need to enter data, helping them make better decisions and improve transactions and interactions.
This strategy recognizes the emergence and influence of the digital generation, the increasing relevance of social networks, and customers’ growing reliance on the Web, mobile devices and information-based technology to manage important tasks.
It also acknowledges the potential of new market opportunities in rapidly developing economies.
The end result is a global market that is shifting from traditional services that are paper-based, human-produced, and brick-and-mortar bound, to one where people understand, demand, and embrace the benefits of connected services.
We continue to make significant progress in this environment.
Connected services generated $2.7 billion or 64 percent of our total revenue in fiscal 2012, compared with 50 percent of our total revenue five years ago.
Within connected services, software as a service offerings by themselves produced about $1.6 billion, or nearly 40 percent of our total revenue in fiscal 2012.
Summary Generations age.
Borders blur.
Technology advances.
As the way we live and work evolves, we adapt our strategy to meet and lead these changes.
Yet our commitment remains consistent: Developing innovative products and services that are so convenient and easy to use that customers actively recommend them to others.
It’s been our success formula for more than a quarter-century as we’ve worked to solve people’s important business and financial management problems.
And we’ll maintain that commitment as we continue to evolve, working to help people solve each other’s problems, connecting people to people and to solutions, wherever they are, whenever they want them.
PRODUCTS AND SERVICES We offer our products and services in the seven business segments described in “Business Overview” above.
The following table shows the classes of similar products or services, consistent with our reportable segments, that accounted for 10% or more of total net revenue within the last three fiscal years.
## Table 2 ##
Our products and services are sold mainly in the United States and are described below.
International total net revenue was less than 5% of consolidated total net revenue for fiscal 2012, 2011 and 2010.
For financial information about these segments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 and Note 15 to the financial statements in Item 8 of this Report.
Financial Management Solutions QuickBooks.
Our QuickBooks product line brings bookkeeping capabilities and business management tools to small business users in an easy-to-use design that does not require them to be familiar with debit and credit accounting.
We offer a range of desktop and online products and services to suit the needs of different types of businesses.
Our desktop software products include QuickBooks Pro and QuickBooks Pro for Mac, which provide accounting functionality for small businesses; QuickBooks Premier, which provides small businesses with advanced accounting functionality and business planning tools; and QuickBooks Enterprise Solutions, designed for larger businesses.
Our Premier and Enterprise products also come in a range of industry-specific editions, including Contractor, Manufacturing and Wholesale, Nonprofit, Professional Services, and Retail.
Our online offerings include QuickBooks Simple Start Online, which provides accounting functionality suitable for very small, less complex businesses.
QuickBooks Online Essentials and QuickBooks Online Plus provide online accounting

<table><tr><td></td><td>Year Ended December</td></tr><tr><td><i>$ in millions</i></td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Compensation and benefits</td><td>$12,613</td><td>$12,944</td><td>$12,223</td></tr><tr><td>Brokerage, clearing, exchange anddistribution fees</td><td>2,341</td><td>2,208</td><td>2,463</td></tr><tr><td>Market development</td><td>541</td><td>509</td><td>640</td></tr><tr><td>Communications and technology</td><td>776</td><td>782</td><td>828</td></tr><tr><td>Depreciation and amortization</td><td>1,322</td><td>1,738</td><td>1,865</td></tr><tr><td>Occupancy</td><td>839</td><td>875</td><td>1,030</td></tr><tr><td>Professional fees</td><td>930</td><td>867</td><td>992</td></tr><tr><td>Insurance reserves<sup>1</sup></td><td>176</td><td>598</td><td>529</td></tr><tr><td>Other expenses</td><td>2,931</td><td>2,435</td><td>2,072</td></tr><tr><td>Total non-compensation expenses</td><td>9,856</td><td>10,012</td><td>10,419</td></tr><tr><td>Total operating expenses</td><td>$22,469</td><td>$22,956</td><td>$22,642</td></tr><tr><td>Total staff at period-end</td><td>32,900</td><td>32,400</td><td>33,300</td></tr></table>
<table><tr><td>Consolidated Statement of Operations Data</td><td colspan="5">Fiscal</td></tr><tr><td>(In millions, except per share amounts)</td><td>2012</td><td>2011</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Total net revenue</td><td>$4,151</td><td>$3,772</td><td>$3,403</td><td>$3,073</td><td>$2,978</td></tr><tr><td>Total costs and expenses</td><td>2,974</td><td>2,735</td><td>2,499</td><td>2,370</td><td>2,316</td></tr><tr><td>Operating income from continuing operations</td><td>1,177</td><td>1,037</td><td>904</td><td>703</td><td>662</td></tr><tr><td>Total share-based compensation expense included in total costs and expenses</td><td>169</td><td>153</td><td>134</td><td>130</td><td>111</td></tr><tr><td>Net income from continuing operations</td><td>767</td><td>652</td><td>564</td><td>459</td><td>457</td></tr><tr><td>Net income (loss) from discontinued operations</td><td>25</td><td>-18</td><td>10</td><td>-12</td><td>20</td></tr><tr><td>Net income</td><td>792</td><td>634</td><td>574</td><td>447</td><td>477</td></tr><tr><td>Net income per common share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic net income per share from continuing operations</td><td>$2.59</td><td>$2.12</td><td>$1.79</td><td>$1.43</td><td>$1.39</td></tr><tr><td>Basic net income (loss) per share from discontinued operations</td><td>0.08</td><td>-0.06</td><td>0.03</td><td>-0.04</td><td>0.06</td></tr><tr><td>Basic net income per share</td><td>$2.67</td><td>$2.06</td><td>$1.82</td><td>$1.39</td><td>$1.45</td></tr><tr><td>Diluted net income per share from continuing operations</td><td>$2.52</td><td>$2.06</td><td>$1.74</td><td>$1.39</td><td>$1.35</td></tr><tr><td>Diluted net income(loss) per share from discontinued operations</td><td>0.08</td><td>-0.06</td><td>0.03</td><td>-0.04</td><td>0.06</td></tr><tr><td>Diluted net income per share</td><td>$2.60</td><td>$2.00</td><td>$1.77</td><td>$1.35</td><td>$1.41</td></tr><tr><td>Dividends declared per common share</td><td>$0.60</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td></tr></table>
<table><tr><td></td><td>Fiscal2012</td><td>Fiscal2011</td><td>Fiscal2010</td></tr><tr><td>Financial Management Solutions</td><td>17%</td><td>17%</td><td>16%</td></tr><tr><td>Employee Management Solutions</td><td>12%</td><td>12%</td><td>12%</td></tr><tr><td>Payment Solutions</td><td>10%</td><td>9%</td><td>9%</td></tr><tr><td>Consumer Tax</td><td>35%</td><td>34%</td><td>34%</td></tr><tr><td>Accounting Professionals</td><td>10%</td><td>11%</td><td>11%</td></tr><tr><td>Financial Services</td><td>9%</td><td>9%</td><td>10%</td></tr></table>

Question: Which year is Total costs and expenses the most?
Answer: 2012