NOTE 9 – VARIABLE INTEREST ENTITIES

On October 1, 2010, we adopted new accounting guidance which amended the existing pronouncement regarding the consolidation of VIEs. See the “Evaluation of VIEs to determine whether consolidation is required” section of Note 1 for a discussion of the impact the adoption of this new accounting guidance had on our Consolidated Statements of Financial Condition.

VIEs where we are the primary beneficiary

Of the VIEs in which we hold an interest, we have determined that the EIF Funds, the Restricted Stock Trust Fund and certain LIHTC Funds require consolidation in our financial statements as we are deemed the primary beneficiary of those VIEs (see Note 1 for discussion of our accounting policies governing these determinations). The aggregate assets and liabilities of the entities we consolidate are provided in the table below.

	Aggregate assets (1)		Aggregate liabilities (1)
	(in thousands)
September 30, 2011:
LIHTC Funds	$	257,631	$	121,908
Guaranteed LIHTC Fund		87,811		10,424
Restricted Stock Trust Fund		8,099		4,630
EIF Funds		16,223		-
Total	$	369,764	$	136,962

September 30, 2010:
LIHTC Funds	$	234,742	$	94,028
Guaranteed LIHTC Fund		75,449		2,382
Restricted Stock Trust Fund		7,969		4,429
EIF Funds		18,215		-
Total	$	336,375	$	100,839

(1)	Aggregate assets and aggregate liabilities differ from the consolidated carrying value of assets and liabilities due to the elimination of intercompany assets and liabilities held by the consolidated VIE.

The following table presents information about the carrying value of the assets, liabilities and equity of the VIEs which we consolidate and are included within our Consolidated Statements of Financial Condition. The noncontrolling interests presented in this table represent the portion of these net assets which are not ours.

	Year ended September 30,
	2011		2010
	(in thousands)
Assets:
Assets segregated pursuant to regulations and other segregated assets	$	18,317	$	14,188
Receivables, other		11,288		6,104
Investments in real estate partnerships held by consolidated variable interest entities		320,384		280,890
Trust fund investment in RJF common stock (1)		8,099		7,798
Prepaid expenses and other assets		17,197		19,398
Total assets	$	375,285	$	328,378

Liabilities and equity:
Loans payable of consolidated variable interest entities (2)	$	99,982	$	76,464
Trade and other payables		5,353		2,722
Intercompany payables		6,904		16,930
Total liabilities		112,239		96,116

RJF Equity		5,537		5,205
Noncontrolling interests		257,509		227,057
Total equity		263,046		232,262
Total liabilities and equity	$	375,285	$	328,378

(1)	Included in treasury stock in our Consolidated Statements of Financial Condition.

(2)	Comprised of several non-recourse loans. We are not contingently liable under any of these loans (see Note 13 for additional information).

The following table presents information about the net loss of the VIEs which we consolidate and are included within our Consolidated Statements of Income and Comprehensive Income. The noncontrolling interests presented in this table represent the portion of the net loss from these VIEs which are not ours.

	Year ended September 30,
	2011			2010			2009
	(in thousands)
Revenues:
Interest	$	2		$	13		$	71
Other		5,385			5,793			2,621
Total revenues		5,387			5,806			2,692

Interest expense		6,049			4,457			4,817
Net (expense) revenues		(662	)		1,349			(2,125	)

Non-interest expenses		18,670			15,445			18,060
Net loss including noncontrolling interests		(19,332	)		(14,096	)		(20,185	)
Net loss attributable to noncontrolling interests		(17,988	)		(13,392	)		(17,934	)
Net loss attributable to RJF	$	(1,344	)	$	(704	)	$	(2,251	)

Low-income housing tax credit funds

RJTCF is the managing member or general partner in approximately 74 separate low-income housing tax credit funds having one or more investor members or limited partners. RJTCF has concluded that it is the primary beneficiary of 11 of the 73 non-guaranteed LIHTC Funds it has sponsored and, accordingly, consolidates these funds. In addition, RJTCF consolidates the one Guaranteed LIHTC Fund it sponsors. See Note 17 for further discussion of the guarantee obligation as well as other RJTCF commitments.

VIEs where we hold a variable interest but we are not the primary beneficiary

The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but concluded we are not the primary beneficiary, are provided in the table below.

	As of September 30,
	2011						2010
	Aggregate assets		Aggregate liabilities		Our risk of loss		Aggregate assets		Aggregate liabilities		Our risk of loss
	(in thousands)

LIHTC Funds	$	1,582,764	$	533,311	$	37,733	$	1,303,500	$	302,749	$	10,691
Other Real Estate Limited Partnerships and LLCs		39,344		35,467		8,068		51,166		38,699		20,246
Total	$	1,622,108	$	568,778	$	45,801	$	1,354,666	$	341,448	$	30,937

VIEs where we hold a variable interest but we are not required to consolidate

The aggregate assets, liabilities, and our exposure to loss from Managed Funds in which we hold a variable interest are provided in the table below:

	September 30, 2011
	Aggregate assets		Aggregate liabilities		Our risk of loss
	(in thousands)
Managed Funds	$	12,813	$	-	$	834