transactions had the cumulative effect of reducing our risk-weighted assets by $16.8 billion and $34.0 billion, and strengthened our Tier 1 capital ratio by 11 bps and 24 bps and our Tier 1 common capital ratio by eight bps and 12 bps.
Below is a discussion of certain risk characteristics of the residential mortgage portfolio, excluding the Countrywide purchased impaired loan portfolio, which contributed to higher losses.
These characteristics include loans with high refreshed LTVs, loans which were originated at the peak of home prices in 2006 and 2007, loans to borrowers located in the states of California and Florida where we have concentrations and where significant declines in home prices have been experienced, as well as interest-only loans.
Although the disclosures below address each of these risk characteristics separately, there is significant overlap in loans with these characteristics, which contributed to a disproportionate share of the losses in the portfolio.
Excluding the Countrywide purchased impaired portfolio, residential mortgage loans with all of these higher risk characteristics comprised seven percent of the total residential mortgage portfolio at December 31, 2009, but have accounted for 31 percent of the residential mortgage net charge-offs in 2009.
Residential mortgage loans with a greater than 90 percent but less than 100 percent refreshed LTV represented 11 percent of the residential mortgage portfolio and loans with a refreshed LTV greater than 100 percent represented 26 percent at December 31, 2009.
Of the loans with a refreshed LTV greater than 100 percent, 90 percent were performing at December 31, 2009.
Loans with a refreshed LTV greater than 100 per cent reflect loans where the outstanding book balance of the loan is greater than the most recent valuation of the property securing the loan.
The majority of these loans have a refreshed LTV greater than 100 percent due primarily to home price deterioration from the weakened economy.
Loans with refreshed FICO scores below 620 represented 16 percent of the residential mortgage portfolio.
The 2006 and 2007 vintage loans, which represented 42 percent of our residential mortgage portfolio at December 31, 2009, continued to season and have higher refreshed LTVs and accounted for 69 percent of nonperforming residential mortgage loans at December 31, 2009 and approximately 75 percent of residential mortgage net charge-offs during 2009.
The table below presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio.
California and Florida combined represented 43 percent of the total residential mortgage portfolio and 47 percent of nonperforming residential mortgage loans at December 31, 2009, but accounted for 58 percent of the residential mortgage net charge-offs for 2009.
The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area (MSA) within California represented 12 percent and 13 percent of the total residential mortgage portfolio at December 31, 2009 and 2008.
Additionally, 37 percent and 24 percent of loans in California and Florida are in reference pools of synthetic securitizations, as described above, which provide mezzanine risk protection.
## Table 0 ##
(1) Represents acquired loans from Countrywide that were considered impaired and written down to fair value upon acquisition date.
See page 71 for the discussion of the characteristics of the purchased impaired loans.
Of the residential mortgage portfolio, $84.2 billion, or 35 percent, at December 31, 2009 are interest-only loans of which 89 percent were performing.
Nonperforming balances on interest-only residential mortgage loans were $9.1 billion, or 55 percent, of total nonperforming residential mortgages.
Additionally, net charge-offs on the interest-only portion of the portfolio represented 58 percent of the total residential mortgage net charge-offs for 2009.
The Community Reinvestment Act (CRA) encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes.
At December 31, 2009, our CRA portfolio comprised six percent of the total residential mortgage loan balances but comprised 17 percent of nonperforming residential mortgage loans.
This portfolio also comprised 20 percent of residential mortgage net charge-offs during 2009.
While approximately 32 percent of our residential mortgage portfolio carries risk mitigation protection, only a small portion of our CRA portfolio is covered by this protection.
We have sold and continue to sell mortgage and other loans, including mortgage loans, to third-party buyers and to FNMA and FHLMC under agreements that contain representations and warranties related to, among other things, the process for selecting the loans for inclusion in a sale and compliance with applicable criteria established by the buyer.
Such agreements contain provisions under which we may be required to either repurchase the loans or indemnify or provide other recourse to the buyer or insurer if there is a breach of the representations and warranties that materially and adversely affects the interests of the buyer or pursuant to such other standard established by the terms of such agreements.
We have experienced and continue to experience increasing repurchase and similar demands from, and disputes with buyers and insurers.
We expect to contest such demands that we do not believe are valid.
In the event that we are required to repurchase loans that have been the subject of repurchase demands or otherwise provide indemnification or other recourse, this could significantly increase our losses and thereby affect our future earnings.
For further information regarding representations and warranties, see Note 8 – Securitizations to the Consolidated Financial Statements, and Item 1A.
, Risk Factors of this Annual Report on Form 10-K.
ICOS Corporation On January 29, 2007, we acquired all of the outstanding common stock of ICOS Corporation (ICOS), our partner in the Lilly ICOS LLC joint venture for the manufacture and sale of Cialis for the treatment of erectile dysfunction.
The acquisition brought the full value of Cialis to us and enabled us to realize operational effi ciencies in the further development, marketing, and selling of this product.
The aggregate cash purchase price of approximately $2.3 billion was fi nanced through borrowings.
The acquisition has been accounted for as a business combination under the purchase method of accounting, resulting in goodwill of $646.7 million.
No portion of this goodwill was deductible for tax purposes.
We determined the following estimated fair values for the assets acquired and liabilities assumed as of the date of acquisition.
## Table 1 ##
1 This intangible asset will be amortized over the remaining expected patent lives of Cialis in each country; patent expiry dates range from 2015 to 2017.
New indications for and formulations of the Cialis compound in clinical testing at the time of the acquisition represented approximately 48 percent of the estimated fair value of the acquired IPR&D.
The remaining value of acquired IPR&D represented several other products in development, with no one asset comprising a signifi cant portion of this value.
The discount rate we used in valuing the acquired IPR&D projects was 20 percent, and the charge for acquired IPR&D of $303.5 million recorded in the fi rst quarter of 2007 was not deductible for tax purposes.
Other Acquisitions During the second quarter of 2007, we acquired all of the outstanding stock of both Hypnion, Inc.  (Hypnion), a privately held neuroscience drug discovery company focused on sleep disorders, and Ivy Animal Health, Inc.  (Ivy), a privately held applied research and pharmaceutical product development company focused on the animal health industry, for $445.0 million in cash.
The acquisition of Hypnion provided us with a broader and more substantive presence in the area of sleep disorder research and ownership of HY10275, a novel Phase II compound with a dual mechanism of action aimed at promoting better sleep onset and sleep maintenance.
This was Hypnion’s only signifi cant asset.
For this acquisition, we recorded an acquired IPR&D charge of $291.1 million, which was not deductible for tax purposes.
Because Hypnion was a development-stage company, the transaction was accounted for as an acquisition of assets rather than as a business combination and, therefore, goodwill was not recorded.
The acquisition of Ivy provides us with products that complement those of our animal health business.
This acquisition has been accounted for as a business combination under the purchase method of accounting.
We allocated $88.7 million of the purchase price to other identifi able intangible assets, primarily related to marketed products, $37.0 million to acquired IPR&D, and $25.0 million to goodwill.
The other identifi able intangible assets are being amortized over their estimated remaining useful lives of 10 to 20 years.
The $37.0 million allocated to acquired IPR&D was charged to expense in the second quarter of 2007.
Goodwill resulting from this acquisition was fully allocated to the animal health business segment.
The amount allocated to each of the intangible assets acquired, including goodwill of $25.0 million and the acquired IPR&D of $37.0 million, was deductible for tax purposes.
Product Acquisitions In June 2008, we entered into a licensing and development agreement with TransPharma Medical Ltd.  (TransPharma) to acquire rights to its product and related drug delivery system for the treatment of osteoporosis.
The product, which is administered transdermally using TransPharma’s proprietary technology, was in Phase II clinical testing, and had no alternative future use.
Under the arrangement, we also gained non-exclusive access to TransPharma’s ViaDerm drug delivery system for the product.
As with many development-phase products, launch of the
During the fourth quarter of 2008, the IRS started the field examination of the Company’s 2006 and 2007 tax years.
The Company also has several state and Non-U.
S.  audits pending.
A summary of open tax years by major jurisdiction is presented below:
## Table 2 ##
(1) Includes federal as well as state, provincial or similar local jurisdictions, as applicable.
Although the final resolution of the Company’s global tax disputes is uncertain, based on current information, in the opinion of the Company’s management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.
However, an unfavorable resolution of the Company’s global tax disputes could have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations in the periods in which the matters are ultimately resolved.
Based on the potential outcome of the Company’s global tax examinations, the expiration of the statute of limitations for specific jurisdictions, or the continued ability to satisfy tax incentive obligations, it is reasonably possible that the unrecognized tax benefits will decrease within the next 12 months.
The associated net tax benefits, which would favorably impact the effective tax rate, are estimated to be in the range of $0 to $150 million, with cash payments not expected to exceed $50 million.
At December 31, 2008, the Company had $47 million and $11 million accrued for interest and penalties, respectively, on unrecognized tax benefits.
At December 31, 2007, the Company had $86 million and $10 million accrued for interest and penalties, respectively, on unrecognized tax benefits.7.
Retirement Benefits Pension Benefit Plans The Company’s noncontributory pension plan (the “Regular Pension Plan”) covers U. S.  employees who became eligible after one year of service.
The benefit formula is dependent upon employee earnings and years of service.
Effective January 1, 2005, newly-hired employees were not eligible to participate in the Regular Pension Plan.
The Company also provides defined benefit plans which cover non-U.
S.  employees in certain jurisdictions principally the United Kingdom, Germany, Ireland, Japan and Korea (the “Non-U.
S.  Plans”).
Other pension plans are not material to the Company either individually or in the aggregate.
The Company has a noncontributory supplemental retirement benefit plan (the “Officers’ Plan”) for its officers elected prior to December 31, 1999.
The Officers’ Plan contains provisions for vesting and funding the participants’ expected retirement benefits when the participants meet the minimum age and years of service requirements.
Elected officers who were not yet vested in the Officers’ Plan as of December 31, 1999 had the option to remain in the Officers’ Plan or elect to have their benefit bought out in restricted stock units.
Effective December 31, 1999, newly elected officers are not eligible to participate in the Officers’ Plan.
Effective June 30, 2005, salaries were frozen for this plan.
The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola Supplemental Pension Plan (“MSPP”), which provides supplemental benefits to individuals by replacing the Regular Pension Plan benefits that are lost by such individuals under the retirement formula due to application of the limitations imposed by the Internal Revenue Code.
However, elected officers who are covered under the Officers’ Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP.
Effective
XYLEM INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (continued) Our restricted stock activity was as follows for 2011:
## Table 3 ##
(a) Upon consummation of the Spin-off, Xylem converted into Xylem securities awards held by ITT employees that joined Xylem with the number and exercise price systematically determined to preserve the intrinsic value of the previously held securities of ITT as of the Spin-off date.
Approximately 65 thousand restricted stock units held by ITT Board members were converted to an equivalent number of Xylem securities.
Note 12.
Postretirement Benefit Plans Defined contribution plans – Prior to the Spin-off, employees who met certain eligibility requirements participated in various defined contribution plans administered by ITT.
In connection with the Spin-off, we entered into a Benefit and Compensation Matters Agreement with ITT whereby Xylem agreed to replicate certain ITT defined contribution plans to allow for continuation of those benefits.
Under this agreement, assets attributable to Xylem specific employees were transferred from ITT to our domestic and international qualified defined contribution plans.
The assets transferred into Xylem were $144 million in 29 different investment options, including the Xylem Stock Fund.
Xylem’s U. S.  plan also provides for transition credits for eligible U. S.  employees for the first five years of the plan to supplement retirement benefits in the absence of a defined benefit plan.
Age plus years of eligible service greater than or equal to 60, entitles an employee to transition credits.
The liability for transition credits is approximately $1 million at December 31, 2011.
Xylem and certain of our subsidiaries maintain various defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines.
Several of the plans require us to match a percentage of the employee contributions up to certain limits, generally between 3.0% – 7.0% of employee base pay.
Matching obligations, the majority of which were funded in cash in connection with the plans, are as follows:

<table><tr><td></td><td colspan="4"> December 31</td><td colspan="2" rowspan="2" Year Ended December 31  Net Charge-offs></td></tr><tr><td></td><td colspan="2"> Outstandings</td><td colspan="2"> Nonperforming</td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td></tr><tr><td>California</td><td>$82,329</td><td>$84,847</td><td>$5,967</td><td>$2,028</td><td>$1,726</td><td>$411</td></tr><tr><td>Florida</td><td>16,518</td><td>15,787</td><td>1,912</td><td>1,012</td><td>796</td><td>154</td></tr><tr><td>New York</td><td>16,278</td><td>15,539</td><td>632</td><td>255</td><td>66</td><td>5</td></tr><tr><td>Texas</td><td>10,737</td><td>10,804</td><td>534</td><td>315</td><td>59</td><td>20</td></tr><tr><td>Virginia</td><td>7,812</td><td>9,696</td><td>450</td><td>229</td><td>89</td><td>32</td></tr><tr><td>Other U.S./Foreign</td><td>97,378</td><td>101,377</td><td>7,101</td><td>3,218</td><td>1,614</td><td>303</td></tr><tr><td> Total residential mortgage loans (excluding the Countrywide purchased impaired residentialmortgage loan portfolio)</td><td>$231,052</td><td>$238,050</td><td>$16,596</td><td>$7,057</td><td>$4,350</td><td>$925</td></tr><tr><td> Total Countrywide purchased impaired residential mortgage loan portfolio<sup>-1</sup></td><td>11,077</td><td>10,013</td><td></td><td></td><td></td><td></td></tr><tr><td> Total residential mortgage loan portfolio</td><td>$242,129</td><td>$248,063</td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td>Cash and short-term investments</td><td>$197.7</td></tr><tr><td>Developed product technology (Cialis)<sup>1</sup></td><td>1,659.9</td></tr><tr><td>Tax benefit of net operating losses</td><td>404.1</td></tr><tr><td>Goodwill</td><td>646.7</td></tr><tr><td>Long-term debt assumed</td><td>-275.6</td></tr><tr><td>Deferred taxes</td><td>-583.5</td></tr><tr><td>Other assets and liabilities — net</td><td>-32.1</td></tr><tr><td>Acquired in-process research and development</td><td>303.5</td></tr><tr><td>Total purchase price</td><td>$2,320.7</td></tr></table>
<table><tr><td>United States<sup>-1</sup></td><td>1996—2008</td></tr><tr><td>Brazil</td><td>2003—2008</td></tr><tr><td>China</td><td>1999—2008</td></tr><tr><td>France</td><td>2004—2008</td></tr><tr><td>Germany<sup>-1</sup></td><td>2004—2008</td></tr><tr><td>India</td><td>1996—2008</td></tr><tr><td>Israel</td><td>2004—2008</td></tr><tr><td>Japan</td><td>2002—2008</td></tr><tr><td>Malaysia</td><td>1998—2008</td></tr><tr><td>Singapore</td><td>1999—2008</td></tr><tr><td>United Kingdom</td><td>2006—2008</td></tr></table>
<table><tr><td>(in thousands, except per share amounts)</td><td>Shares</td><td> Weighted Average Grant Date Fair Value Per Share</td></tr><tr><td>Balance at December 31, 2010</td><td>—</td><td>$—</td></tr><tr><td>Converted (a)</td><td>1,064</td><td>$26.50</td></tr><tr><td>Granted</td><td>442</td><td>$24.58</td></tr><tr><td>Vested</td><td>-6</td><td>$26.58</td></tr><tr><td>Forfeited</td><td>-12</td><td>$26.24</td></tr><tr><td> Balance at December 31, 2011</td><td>1,488</td><td>$25.93</td></tr></table>

Question: Which year is the the Outstandings of total residential mortgage loan portfolio of Outstandings the highest?
Answer: 2008