Residential Mortgage The residential mortgage portfolio, which for purposes of the consumer credit portfolio discussion and related tables, excludes the discontinued real estate portfolio acquired from Countrywide, makes up the largest percentage of our consumer loan portfolio at 43 percent of consumer loans at December 31, 2011.
Approximately 14 percent of the residential mortgage portfolio is in GWIM and represents residential mortgages that are originated for the home purchase and refinancing needs of our wealth management clients.
The remaining portion of the portfolio is mostly in All Other and is comprised of both originated loans as well as purchased loans used in our overall ALM activities.
Outstanding balances in the residential mortgage portfolio, excluding $906 million of loans accounted for under the fair value option, increased $4.3 billion at December 31, 2011 compared to December 31, 2010 as new origination volume, the majority of which is fully-insured, was partially offset by paydowns, charge-offs and transfers to foreclosed properties.
In addition, repurchases of FHA delinquent loans pursuant to our servicing agreements with GNMA also increased the residential mortgage portfolio during 2011.
At December 31, 2011 and 2010, the residential mortgage portfolio included $93.9 billion and $67.2 billion of outstanding fully-insured loans.
On this portion of the residential mortgage portfolio, we are protected against principal loss as a result of FHA insurance and long-term stand-by agreements with FNMA and FHLMC.
At December 31, 2011 and 2010, $24.0 billion and $20.1 billion were related to repurchases of FHA delinquent loans pursuant to our servicing agreements with GNMA and the remainder of the fully-insured portfolio represents originations that were retained on-balance sheet.
At December 31, 2011 and 2010, principal balances of $23.8 billion and $12.9 billion were protected by long-term standby agreements.
All of these loans are individually insured and therefore the Corporation does not record an allowance for credit losses.
In addition to the abovementioned long-term stand-by agreements with FNMA and FHLMC, we have mitigated a portion of our credit risk on the residential mortgage portfolio through the use of synthetic securitization vehicles as described in Note 6 – Outstanding Loans and Leases to the Consolidated Financial Statements.
At December 31, 2011 and 2010, the synthetic securitization vehicles referenced principal balances of $23.9 billion and $53.9 billion of residential mortgage loans and provided loss protection up to $783 million and $1.1 billion.
At December 31, 2011 and 2010, the Corporation had a receivable of $359 million and $722 million from these vehicles for reimbursement of losses.
The Corporation records an allowance for credit losses on loans referenced by the synthetic securitization vehicles.
The reported net charge-offs for the residential mortgage portfolio do not include the benefit of amounts reimbursable from these vehicles.
Adjusting for the benefit of the credit protection from the synthetic securitizations, the residential mortgage net charge-off ratio, excluding the Countrywide PCI and fully-insured loan portfolios, for 2011 would have been reduced by 13 bps and eight bps for 2010.
Synthetic securitizations and the long-term stand-by agreements with FNMA and FHLMC together reduce our regulatory risk-weighted assets due to the transfer of a portion of our credit risk to unaffiliated parties.
At December 31, 2011 and 2010, these programs had the cumulative effect of reducing our risk-weighted assets by $7.9 billion and $8.2 billion, increased our Tier 1 capital ratio by eight bps and six bps, and our Tier 1 common capital ratio by six bps and five bps.
Table 24 presents certain residential mortgage key credit statistics on both a reported basis and excluding the Countrywide PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the fair value option.
We believe the presentation of information adjusted to exclude these loan portfolios is more representative of the credit risk in the residential mortgage loan portfolio.
As such, the following discussion presents the residential mortgage portfolio excluding the Countrywide PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the fair value option.
For more information on the Countrywide PCI loan portfolio, see page 83.
## Table 0 ##
(1) Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.
There were no residential mortgage loans accounted for under the fair value option at December 31, 2010.
See Note 23 – Fair Value Option to the Consolidated Financial Statements for additional information on the fair value option.
(2) These vintages of loans account for 63 percent and 67 percent of nonperforming residential mortgage loans at December 31, 2011 and 2010.
These vintages of loans accounted for 73 percent and 77 percent of residential mortgage net charge-offs in 2011 and 2010.
(3) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans, excluding loans accounted for under the fair value option.
n/a = not applicable
Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (all tabular amounts in thousands except per share data) 5.
Borrowings and Credit Arrangements The Company had total debt with carrying values of $1.45 billion at September 25, 2010 and $1.55 billion at September 26, 2009.
The Company’s borrowings consisted of the following at September 25, 2010 and September 26, 2009:
## Table 1 ##
As of September 25, 2010, the earliest date of redemption for the Convertible Notes is December 13, 2013, which is the first quarter of its fiscal 2014.
(a) Convertible Notes On December 10, 2007, the Company issued and sold $1.725 billion aggregate original principal of 2.00% Convertible Senior Notes due 2037 (the “Convertible Notes”).
The Convertible Notes are the Company’s senior unsecured obligations and rank equally with all of the Company’s existing and future senior unsecured debt and prior to all future subordinated debt.
The Convertible Notes are effectively subordinated to any future secured indebtedness to the extent of the collateral securing such indebtedness, and structurally subordinated to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries.
Net proceeds from the offering were $1.69 billion, after deducting the underwriters’ discounts of $34.5 million and estimated offering expenses of $1.5 million, were used to repay certain of the Company’s outstanding senior secured indebtedness incurred in connection with the merger with Cytyc as discussed below.
At September 25, 2010, the Company has recorded the Convertible Notes at $1.45 billion, which is net of the unamortized debt discount as required by U. S.  generally accepted accounting principles.
In May 2008, the FASB issued FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (codified within ASC 470, Debt).
This accounting standard applies to certain convertible debt instruments that may be settled in cash (or other assets), or partially in cash, upon conversion.
The liability and equity components of convertible debt instruments within the scope of this accounting standard must be separately accounted for in a manner that reflects the entity’s nonconvertible debt borrowing rate when interest expense is subsequently recognized.
The excess of the principal amount of the debt over the amount allocated to the liability component is recognized as the value of the
U. S.  DIY tax preparation fees declined $15.2 million, or 6.5%, due to our H&R Block More ZeroSM promotion, which offered free online tax preparation for certain forms.
This decrease was partially offset by a 3.5% increase in returns.
Fees earned on RTs decreased $14.3 million, or 8.8%, primarily due to lower attach rates due to our H&R Block More ZeroSM and Free 1040EZ promotions and the offering of state RTs at no cost.
Revenue from POM increased $6.0 million, or 6.9%, primarily due to an increase in units sold in prior years and favorable changes in the timing of forecasted claims.
This revenue is initially deferred, and recognized over the term of the service plan based on actual claims paid in relation to projected claims.
Other revenues increased $9.6 million, or 18.6%, primarily due to the fees earned on our TIS product, partially offset by a decline in income on our mortgage loan portfolio and investments in available-for-sale (AFS) securities recorded as other income in the current year rather than as revenue for a portion of the prior year.
See Item 8, note 11 to the consolidated financial statements.
Total operating expenses decreased $84.6 million, or 3.5%, from the prior year.
Total compensation and benefits decreased $26.4 million primarily due to lower headcount in our field and corporate operations and lower commissionbased wages due to lower return volumes.
These declines were partially offset by an increase in short-term incentive compensation.
Occupancy and equipment expenses increased $9.5 million, or 2.3%, primarily due to higher rental rates on tax offices.
Marketing and advertising expenses decreased $36.5 million, or 12.3%, primarily due to our prior year sweepstakes campaign.
Depreciation and amortization expense increased $8.6 million, or 4.9%, primarily due to amortization resulting from acquisitions of franchisee and competitor businesses.
Bad debt expense decreased $22.6 million, or 30.0%, primarily due to favorable collections on prior year EAs and RTs, and a reduction in overall bad debt rate on current year balances.
Other expenses decreased $14.8 million, or 4.3%, primarily due to prior year costs associated with capital transactions and the divestiture of HRB Bank and cost savings initiatives.
These were partially offset by higher fees paid to our bank partners in the current year for products and services they offer to our clients, including program costs related to our RA offering introduced in the current year.
The components of other expenses are as follows:
## Table 2 ##
Interest expense increased $24.0 million, or 34.8%, due primarily to issuance of our Senior Notes during fiscal year 2016 in the aggregate principal amount of $1.0 billion.
Pretax income for fiscal year 2017 increased $59.8 million, or 10.5%, while our pretax margin increased to 20.7% from 18.7% in fiscal year 2016.
Net income from continuing operations increased $37.4 million, or 9.7%, over the prior year.
Diluted earnings per share from continuing operations increased 28.1% from the prior year to $1.96 due to a 14.6% decline in diluted weighted average shares outstanding and higher net income.
Losses of our discontinued mortgage operations resulted primarily from litigation expenses.
See the discussion of the risk of contingent losses related to our discontinued operations in Item 1A, "Risk Factors" and in Item 8, notes 13 and 14 to the consolidated financial statements.
ROYAL CARIBBEAN CRUISES LTD.  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Note 9.
Stock-Based Employee Compensation We have four stock-based compensation plans, which provide for awards to our officers, directors and key employees.
The plans consist of a 1990 Employee Stock Option Plan, a 1995 Incentive Stock Option Plan, a 2000 Stock Award Plan, and a 2008 Equity Plan.
The 1990 Stock Option Plan and the 1995 Incentive Stock Option Plan terminated by their terms in March 2000 and February 2005, respectively.
The 2000 Stock Award Plan, as amended, and the 2008 Equity Plan provide for the issuance of (i) incentive and non-qualified stock options, (ii) stock appreciation rights, (iii) restricted stock, (iv) restricted stock units and (v) up to 13,000,000 performance shares of our common stock for the 2000 Stock Award Plan and up to 5,000,000 performance shares of our common stock for the 2008 Equity Plan.
During any calendar year, no one individual shall be granted awards of more than 500,000 shares.
Options and restricted stock units outstanding as of December 31, 2009 vest in equal installments over four to five years from the date of grant.
Generally, options and restricted stock units are forfeited if the recipient ceases to be a director or employee before the shares vest.
Options are granted at a price not less than the fair value of the shares on the date of grant and expire not later than ten years after the date of grant.
We also provide an Employee Stock Purchase Plan to facilitate the purchase by employees of up to 800,000 shares of common stock in the aggregate.
Offerings to employees are made on a quarterly basis.
Subject to certain limitations, the purchase price for each share of common stock is equal to 90% of the average of the market prices of the common stock as reported on the New York Stock Exchange on the first business day of the purchase period and the last business day of each month of the purchase period.
Shares of common stock of 65,005, 36,836 and 20,759 were issued under the ESPP at a weighted-average price of $12.78, $20.97 and $37.25 during 2009, 2008 and 2007, respectively.
Under the chief executive officer’s employment agreement we contributed 10,086 shares of our common stock quarterly, to a maximum of 806,880 shares, to a trust on his behalf.
In January 2009, the employment agreement and related trust agreement were amended.
Consequently, 768,018 shares were distributed from the trust and future quarterly share distributions are issued directly to the chief executive officer.
Total compensation expenses recognized for employee stock-based compensation for the year ended December 31, 2009 was $16.8 million.
Of this amount, $16.2 million was included within marketing, selling and administrative expenses and $0.6 million was included within payroll and related expenses.
Total compensation expense recognized for employee stock-based compensation for the year ended December 31, 2008 was $5.7 million.
Of this amount, $6.4 million, which included a benefit of approximately $8.2 million due to a change in the employee forfeiture rate assumption was included within marketing, selling and administrative expenses and income of $0.7 million was included within payroll and related expenses which also included a benefit of approximately $1.0 million due to the change in the forfeiture rate.
Total compensation expenses recognized for employee stock-based compensation for the year ended December 31, 2007 was $19.0 million.
Of this amount, $16.3 million was included within marketing, selling and administrative expenses and $2.7 million was included within payroll and related expenses.
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model.
The estimated fair value of stock options, less estimated forfeitures, is amortized over the vesting period using the graded-vesting method.
The assumptions used in the Black-Scholes option-pricing model are as follows:

<table><tr><td>Table 24</td><td colspan="4">Residential Mortgage – Key Credit Statistics December 31</td></tr><tr><td></td><td colspan="2">Reported Basis<sup>-1</sup></td><td colspan="2">Excluding CountrywidePurchased Credit-impairedand Fully-insured Loans</td></tr><tr><td>(Dollars in millions)</td><td>2011</td><td>2010</td><td>2011</td><td>2010</td></tr><tr><td>Outstandings</td><td>$262,290</td><td>$257,973</td><td>$158,470</td><td>$180,136</td></tr><tr><td>Accruing past due 30 days or more</td><td>28,688</td><td>24,267</td><td>3,950</td><td>5,117</td></tr><tr><td>Accruing past due 90 days or more</td><td>21,164</td><td>16,768</td><td>n/a</td><td>n/a</td></tr><tr><td>Nonperforming loans</td><td>15,970</td><td>17,691</td><td>15,970</td><td>17,691</td></tr><tr><td>Percent of portfolio</td><td></td><td></td><td></td><td></td></tr><tr><td>Refreshed LTV greater than 90 but less than 100</td><td>15%</td><td>15%</td><td>11%</td><td>11%</td></tr><tr><td>Refreshed LTV greater than 100</td><td>33</td><td>32</td><td>26</td><td>24</td></tr><tr><td>Refreshed FICO below 620</td><td>21</td><td>20</td><td>15</td><td>15</td></tr><tr><td>2006 and 2007 vintages<sup>-2</sup></td><td>27</td><td>32</td><td>37</td><td>40</td></tr><tr><td>Net charge-off ratio<sup>-3</sup></td><td>1.45</td><td>1.49</td><td>2.27</td><td>1.86</td></tr></table>
<table><tr><td></td><td> 2010</td><td> 2009</td></tr><tr><td>Current debt obligations:</td><td></td><td></td></tr><tr><td>Term Loan A</td><td>$—</td><td>$28,789</td></tr><tr><td>Term Loan B</td><td>—</td><td>6,785</td></tr><tr><td>AEG debt</td><td>—</td><td>1,500</td></tr><tr><td>Other</td><td>1,362</td><td>1,299</td></tr><tr><td>Total current debt obligations</td><td>1,362</td><td>38,373</td></tr><tr><td>Long-term debt obligations:</td><td></td><td></td></tr><tr><td>Term Loan A</td><td>—</td><td>95,929</td></tr><tr><td>Term Loan B</td><td>—</td><td>42,664</td></tr><tr><td>Other</td><td>—</td><td>1,362</td></tr><tr><td></td><td>—</td><td>139,955</td></tr><tr><td>Convertible Notes (principal of $1,725,000)</td><td>1,447,053</td><td>1,373,923</td></tr><tr><td>Total long-term debt obligations</td><td>1,447,053</td><td>1,513,878</td></tr><tr><td>Total debt obligations</td><td>$1,448,415</td><td>$1,552,251</td></tr></table>
<table><tr><td>Year ended April 30,</td><td>2017</td><td>2016</td><td>$ Change</td><td>% Change</td></tr><tr><td>Consulting and outsourced services</td><td>$104,995</td><td>$140,052</td><td>$-35,057</td><td>-25.0%</td></tr><tr><td>Bank partner fees</td><td>47,479</td><td>16,980</td><td>30,499</td><td>179.6%</td></tr><tr><td>Client claims and refunds</td><td>42,618</td><td>39,782</td><td>2,836</td><td>7.1%</td></tr><tr><td>Employee travel and related expenses</td><td>38,719</td><td>46,665</td><td>-7,946</td><td>-17.0%</td></tr><tr><td>Credit card/bank charges</td><td>28,658</td><td>28,618</td><td>40</td><td>0.1%</td></tr><tr><td>Insurance</td><td>13,320</td><td>12,167</td><td>1,153</td><td>9.5%</td></tr><tr><td>Legal fees and settlements</td><td>12,589</td><td>18,707</td><td>-6,118</td><td>-32.7%</td></tr><tr><td>Other</td><td>39,257</td><td>39,426</td><td>-169</td><td>-0.4%</td></tr><tr><td></td><td>$327,635</td><td>$342,397</td><td>$-14,762</td><td>-4.3%</td></tr></table>

Question: Between 2011 and 2010, which year has the fastest decreasing rate for Reported Basis?
Answer: 2010