SEGMENT ANALYSIS

12 Months Ended

Sep. 30, 2011

SEGMENT ANALYSIS [Abstract]

SEGMENT ANALYSIS

NOTE 25 – SEGMENT ANALYSIS

We currently operate through the following eight business segments:  “Private Client Group;” “Capital Markets;” “Asset Management;” RJ Bank; “Emerging Markets;” “Securities Lending” (formerly known as “Stock/Loan Borrow”); “Proprietary Capital” and various corporate activities combined in the "Other" segment.  The business segments are based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources throughout our subsidiaries.  The financial results of our segments are presented using the same policies as those described in Note 1, “Summary of Significant Accounting Policies.”  Segment data includes charges allocating corporate overhead and benefits to each segment.  Intersegment revenues, charges, receivables and payables are eliminated upon consolidation.

The Private Client Group segment includes the retail branches of our broker-dealer subsidiaries located throughout the U.S., Canada and the United Kingdom.  These branches provide securities brokerage services including the sale of equities, mutual funds, fixed income products and insurance products to their individual clients.  The segment includes net interest earnings on client margin loans and cash balances and certain fee revenues generated by the multi-bank aspect of the RJBDP.  Additionally, this segment includes the correspondent clearing services that we provide to other broker-dealer firms.

The Capital Markets segment includes institutional sales and trading in the U.S., Canada and Europe.  We provide securities brokerage, trading, and research services to institutions with an emphasis on the sale of U.S. and Canadian equities and fixed income products.  This segment also includes our management of and participation in underwritings, merger and acquisition services, public finance activities, and the operations of RJTCF.

The Asset Management segment includes the operations of Eagle Asset Management, Inc. (“Eagle”), the Eagle Family of Funds, the asset management operations of RJ&A, trust services of Raymond James Trust, N.A., and other fee-based asset management programs.

RJ Bank purchases and originates C&I loans, commercial and residential real estate loans, and consumer loans, all of which are funded primarily by cash balances swept from the investment accounts of our broker-dealer subsidiaries' clients.

The Emerging Markets segment includes interests in operations in Latin America including Argentina, Uruguay, and Brazil.  Through these entities, we operate securities brokerage, investment banking, asset management businesses and equity research.

The Securities Lending segment involves the borrowing and lending of securities from and to other broker-dealers, financial institutions and other counterparties, generally as an intermediary.  However, we will also loan customer marginable securities held in a margin account containing a debit to counterparties.  Additionally, securities are borrowed to facilitate RJ&A's clearance and settlement obligations.

The Proprietary Capital segment consists of our principal capital and private equity activities including: various direct and third-party private equity and merchant banking investments (including Raymond James Capital, Inc., a captive private equity business), the EIF Funds, and Raymond James Capital Partners, L.P. (a private equity fund we sponsor).

The Other segment includes various corporate overhead costs of RJF including the interest cost on our public debt, and the loss associated with the securities repurchased as a result of the ARS settlement (see further discussion of this matter in Note 17).

Information concerning operations in these segments of business is as follows:

	Year ended September 30,
	2011			2010			2009
	(in thousands)
Revenues:
Private Client Group	$	2,185,990		$	1,903,101		$	1,557,462
Capital Markets		664,276			591,949			533,254
Asset Management		226,511			196,817			177,359
RJ Bank		281,992			276,770			343,366
Emerging Markets		43,184			16,639			14,891
Securities Lending		6,432			8,837			10,269
Proprietary Capital		16,805			17,029			12,742
Other		10,524			8,056			7,153
Intersegment eliminations		(35,828	)		(39,682	)		(53,977	)
Total revenues	$	3,399,886		$	2,979,516		$	2,602,519
Income (loss) excluding noncontrolling interests and before provision for income taxes:
Private Client Group	$	218,811		$	160,470		$	84,873
Capital Markets		77,990			84,236			73,481
Asset Management		66,176			46,981			30,411
RJ Bank		172,993			112,009			80,011
Emerging Markets		4,531			(5,446	)		(4,886	)
Securities Lending		1,488			2,721			3,651
Proprietary Capital		4,391			1,728			1,035
Other		(85,133	)(1)		(40,791	)		(19,802	)
Pre-tax income excluding noncontrolling interests		461,247			361,908			248,774
Add:  net loss attributable to noncontrolling interests		(10,502	)		(5,764	)		(12,373	)
Income including noncontrolling interests and before provision for income taxes	$	450,745		$	356,144		$	236,401

(1)   The Other segment for the year ended September 30, 2011 includes a $41.4 million pre-tax loss on auction rate securities repurchased (see further discussion of this matter in Note 17).

	Year ended September 30,
	2011			2010			2009
	(in thousands)
Net interest income (expense):
Private Client Group	$	67,496		$	55,934		$	50,698
Capital Markets		4,967			5,377			2,800
Asset Management		107			45			151
RJ Bank		271,306			259,565			322,393
Emerging Markets		1,199			93			1,035
Securities Lending		4,228			4,918			6,431
Proprietary Capital		473			1,953			173
Other		(23,288	)		(19,844	)		2,950
Net interest income	$	326,488		$	308,041		$	386,631

The following table presents our total assets on a segment basis:

	September 30,
	2011		2010
	(in thousands)
Total assets:
Private Client Group (1)	$	5,581,214	$	4,053,054
Capital Markets (2)		1,478,974		1,791,618
Asset Management		61,793		62,850
RJ Bank		8,741,975		10,818,240
Emerging Markets		74,362		27,538
Securities Lending		817,770		680,326
Proprietary Capital		176,919		167,010
Other		1,073,988		282,445
Total	$	18,006,995	$	17,883,081

(1)      Includes $48 million of goodwill at September 30, 2011 and $46 million of goodwill at September 30, 2010.

(2)      Includes $24 million of goodwill at September 30, 2011 and $17 million of goodwill at September 30, 2010.

We have operations in the U.S., Canada, Europe and joint ventures in Latin America.  Substantially all long-lived assets are located in the United States.  Revenues and income before provision for income taxes and excluding noncontrolling interests, classified by major geographic areas in which they are earned, are as follows:

	Year ended September 30,
	2011			2010			2009
	(in thousands)
Revenues:
United States	$	2,947,633		$	2,653,174		$	2,359,564
Canada		339,067			256,105			186,901
Europe		63,665			54,037			41,427
Other		49,521			16,200			14,627
Total	$	3,399,886		$	2,979,516		$	2,602,519
Pre-tax income excluding noncontrolling interests:
United States	$	416,955		$	356,249		$	256,231
Canada		42,333			12,826			(967	)
Europe		(2,312	)		(1,812	)		(17	)
Other		4,271			(5,355	)		(6,473	)
Total	$	461,247		$	361,908		$	248,774

Our total assets, classified by major geographic area in which they are held, were as follows:

	Year ended September 30,
	2011			2010
	(in thousands)
Total assets:
United States (1)	$	16,456,892		$	16,369,401
Canada (2)		1,436,505			1,443,943
Europe		50,666	(3)		28,057
Other		62,932			41,680
Total	$	18,006,995		$	17,883,081

(1)   Includes $32 million of goodwill at September 30, 2011 and $30 million of goodwill at September 30, 2010.

(2)   Includes $33 million of goodwill.

(3)   Includes $7 million of goodwill.