higher average borrowings.
Additionally, the recapitalization that occurred late in the first quarter of 2005 resulted in a full year of interest in 2006 as compared to approximately ten months in 2005.
The increase in interest expense in 2005 as compared to 2004 also resulted from the recapitalization in 2005.
Income Tax Expense Income tax expense totaled $150.2 million, $116.1 million and $118.3 million for 2006, 2005 and 2004, respectively.
This resulted in an effective tax rate of 37.2%, 37.2% and 37.6% for 2006, 2005 and 2004, respectively.
Net Earnings Net earnings totaled $259.1 million, $196.6 and $189.4 million for 2006, 2005 and 2004, respectively, or $1.37, $1.53 and $1.48 per diluted share, respectively.
Segment Results of Operations Transaction Processing Services (in thousands)
## Table 0 ##
Revenues for the Transaction Processing Services segment are derived from three main revenue channels; Enterprise Solutions, Integrated Financial Solutions and International.
Revenues from Transaction Processing Services totaled $2,458.8 million, $1,208.4 and $892.0 million for 2006, 2005 and 2004, respectively.
The overall segment increase of $1,250.4 million during 2006, as compared to 2005 was primarily attributable to the Certegy Merger which contributed $1,067.2 million to the overall increase.
The majority of the remaining 2006 growth is attributable to organic growth within the historically owned Integrated Financial Solutions and International revenue channels, with International including $31.9 million related to the newly formed business process outsourcing operation in Brazil.
The overall segment increase of $316.4 in 2005 as compared to 2004 results from the inclusion of a full year of results for the 2004 acquisitions of Aurum, Sanchez, Kordoba, and InterCept, which contributed $301.1 million of the increase.
Cost of revenues for the Transaction Processing Services segment totaled $1,914.1 million, $904.1 million and $667.1 million for 2006, 2005 and 2004, respectively.
The overall segment increase of $1,010.0 million during 2006 as compared to 2005 was primarily attributable to the Certegy Merger which contributed $848.2 million to the increase.
Gross profit as a percentage of revenues (“gross margin”) was 22.2%, 25.2% and 25.2% for 2006, 2005 and 2004, respectively.
The decrease in gross profit in 2006 as compared to 2005 is primarily due to the February 1, 2006 Certegy Merger, which businesses typically have lower margins than those of the historically owned FIS businesses.
Incremental intangible asset amortization relating to the Certegy Merger also contributed to the decrease in gross margin.
Included in cost of revenues was depreciation and amortization of $272.4 million, $139.8 million, and $94.6 million for 2006, 2005 and 2004, respectively.
Selling, general and administrative expenses totaled $171.1 million, $94.9 million and $99.6 million for 2006, 2005 and 2004, respectively.
The increase in 2006 compared to 2005 is primarily attributable to the Certegy Merger which contributed $73.7 million to the overall increase of $76.2 million.
The decrease of $4.7 million in 2005 as compared to 2004 is primarily attributable to the effect of acquisition related costs in 2004.
Included in selling, general and administrative expenses was depreciation and amortization of $11.0 million, $9.1 million and $2.3 million for 2006, 2005 and 2004, respectively
The following table presents information about the net income (loss) of the VIEs which we consolidate and are included within our Consolidated Statements of Income.
The noncontrolling interests presented in this table represent the portion of the net loss from these VIEs which are not ours
## Table 1 ##
EIF Funds The EIF Funds are limited partnerships for which we are the general partner.
The EIF Funds invest in certain of our private equity activities as well as other unaffiliated venture capital limited partnerships.
The EIF Funds were established as compensation and retention measures for certain of our key employees.
We are deemed to be the primary beneficiary, and accordingly, we consolidate the EIF Funds.
Restricted Stock Trust Fund We utilize a trust in connection with one of our restricted stock plans.
This trust fund was established and funded to enable the trust fund to acquire our common stock in the open market to be used to settle restricted stock units granted as a retention vehicle for certain employees of the Canadian subsidiary.
Given this trust fund’s purpose and design, our Canadian subsidiary is deemed to be the entity most closely associated with this VIE.
As a result, we are deemed to be the primary beneficiary, and accordingly, consolidate this trust fund.
Low-Income Housing Partnerships RJTCF is a wholly-owned subsidiary of RJF and is the managing member or general partner in approximately 64 separate tax credit housing funds having one or more investor members or limited partners.
These tax credit housing funds are organized as limited liability companies or limited partnerships for the purpose of investing in a number of project partnerships, which are limited partnerships that in turn purchase and develop low-income housing properties qualifying for tax credits.
Our determination of the primary beneficiary of each tax credit fund VIE requires judgment and is based on an analysis of all relevant facts and circumstances, including: (1) the existence of a principal-agency relationship between investor member(s) and managing member, (2) the relationship and significance of the activities of the VIE to each member, (3) each member’s exposure to the expected losses of the VIE, and (4) the design of the VIE.
In the design of tax credit fund VIEs, the overriding premise is that the investor members invest solely for tax attributes associated with the portfolio of low-income housing properties held by the fund, while RJTCF as the managing member or general partner of the fund is responsible for overseeing the fund’s operations.
Guaranteed Low-Income Housing Tax Credit Fund In conjunction with a fiscal year 2010 sale of our investor member interest in one of the tax credit funds in which RJTCF is the managing member, RJTCF provided the acquirer with a guaranteed return on their investment in the fund (the “Guaranteed LIHTC Fund”).
See Note 8 for further information on the accounting for this transaction as a financing.
As a result of this guarantee obligation, we have determined that we are the primary beneficiary of, and accordingly we consolidate, this fund.
See Note 17 for further discussion of the guarantee obligation.
NOTE 12 – OTHER BORROWINGS: The following table details the components of Other Borrowings as of September 30, 2010 and 2009:
## Table 2 ##
(1) These borrowings at September 30, 2010 are comprised of several short-term fixed-rate advances and one overnight advance.
The September 30, 2010 and 2009 FHLB advances included a $2.4 billion and a $900 million, respectively, overnight advance to meet point-in-time regulatory balance sheet composition requirements related to its qualifying as a thrift institution.
See Note 22 for further discussion of these point-in-time requirements.
The weighted-average interest rates on all FHLB advances as of September 30, 2010 and 2009, were 0.54%, and 0.62%, respectively.
The outstanding fixed-rate FHLB advances mature between November 2010 and February 2011.
The maximum amount of FHLB advances outstanding at any month-end during the years ended September 30, 2010 and 2009 was $2.45 billion and $950 million, respectively.
At September 30, 2010, all of the FHLB advances were secured by a blanket lien on RJ Bank's residential loan portfolio granted to FHLB, $1.3 billion in cash deposits, and $210.9 million in lendable collateral value of agency MBS (see Note 5 for further discussion of the agency MBS).
The FHLB has the right to convert advances totaling $15 million at September 30, 2010 to a floating rate at one or more future dates.
RJ Bank has the right to prepay these advances without penalty if the FHLB exercises its right.
(2) Borrowings on secured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
(3) Borrowings on certain unsecured lines of credit are day-to-day and are generally utilized to finance certain fixed income securities.
We had no outstanding borrowings on any unsecured lines of credit as of September 30, 2009.
We maintain three unsecured settlement lines of credit available to our Argentine joint venture in the aggregate amount of $13.5 million.
Of the aggregate amount, one settlement line for $9 million is guaranteed by RJF.
There were no borrowings outstanding on these lines of credit as of either September 30, 2010 or 2009.
The interest rates for all of our U. S.  and Canadian secured and unsecured financing facilities are variable and are based on the Fed Funds rate, LIBOR, or Canadian prime rate as applicable.
For the fiscal year ended September 30, 2010, interest rates on the U.  S.  and Canadian utilized financing facilities ranged from 0.39% to 2.75% (on a 360 days per year basis).
For the fiscal year ended September 30, 2009, those interest rates ranged from 0.58% to 5.00% (on a 360 days per year basis).
The interest rates for the settlement lines of credit available to our Argentina joint venture are variable and are based on certain indices including the U. S.  prime rate as well as other Argentina-based market indices.
For the fiscal year ended September 30, 2010, interest rates on these settlement lines of credit ranged from 4.25% to 17% (on a 360 days per year basis).
For the fiscal year ended September 30, 2009, the interest rates on these settlement lines of credit ranged from 4% to 18% (on a 360 days per year basis).
As of September 30, 2009, we maintained a $100 million committed unsecured revolving line of credit with no outstanding borrowings.
This facility expired under its terms on February 4, 2010.
We elected not to renew this revolving credit facility upon its expiration.
There were no borrowings made under this facility since its inception on February 6, 2009.
As of September 30, 2010, in addition to the $62 million of secured borrowings and $50 million in unsecured borrowings outstanding which are described above, there were other collateralized financings outstanding in the amount of $233.3 million.
These other collateralized financings are included in Securities Sold Under Agreements to Repurchase on the Consolidated Statements of Financial Condition.
As of September 30, 2009, in addition to the $30 million of secured borrowings described above, there were other collateralized financings outstanding in the amount of $74.3 million which are included in Securities Sold Under Agreements to Repurchase on the Consolidated Statements of Financial Condition.
These financings are collateralized by non-customer, RJ&A-owned securities.
Net Interest Analysis We have certain assets and liabilities that are subject to changes in interest rates; these changes in interest rates have an impact on our overall financial performance.
Given the relationship of our interest sensitive assets to liabilities, an increase in short-term interest rates would result in an increase in our net earnings (we currently have more assets than liabilities with a yield that would be affected by a change in short-term interest rates).
The amount of benefit would be dependent upon a variety of factors, including but not limited to the change in balances, the rapidity and magnitude of the increase in rates, and the interest rates paid on client cash balances.
The following table presents average balance data and interest income and expense data, as well as the related net interest income:
## Table 3 ##
(1) See Results of Operations – RJ Bank in this MD&A for further information.
Year ended September 30, 2010 Compared with the Year ended September 30, 2009 – Net Interest Net interest income decreased $78.6 million, or 20%, as compared to the prior year.
Net interest income is earned primarily by our PCG and RJ Bank segments, which are discussed separately below.
In addition, our net interest income was negatively impacted by the $23 million increase in interest expense associated with an entire year of interest expense on our senior notes which were issued in August, 2009.  RJ Bank’s net interest income decreased $62.8 million, or 19%, resulting from a decline in both average interest earning assets and net interest spreads.
Refer to the discussion of the specific components of RJ Bank’s net interest income in the RJ Bank section of this MD&A.

<table><tr><td></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Processing and services revenues</td><td>$2,458,777</td><td>$1,208,430</td><td>$892,033</td></tr><tr><td>Cost of revenues</td><td>1,914,148</td><td>904,124</td><td>667,078</td></tr><tr><td>Gross profit</td><td>544,629</td><td>304,306</td><td>224,955</td></tr><tr><td>Selling, general and administrative expenses</td><td>171,106</td><td>94,889</td><td>99,581</td></tr><tr><td>Research and development costs</td><td>70,879</td><td>85,702</td><td>54,038</td></tr><tr><td>Operating income</td><td>$302,644</td><td>$123,715</td><td>$71,336</td></tr></table>
<table><tr><td></td><td colspan="3">Year Ended September 30,</td></tr><tr><td></td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td></td><td colspan="3">(in 000’s)</td></tr><tr><td>Revenues:</td><td></td><td></td><td></td></tr><tr><td>Interest</td><td>$13</td><td>$71</td><td>$657</td></tr><tr><td>Other</td><td>5,793</td><td>2,621</td><td>7,229</td></tr><tr><td>Total Revenues</td><td>5,806</td><td>2,692</td><td>7,886</td></tr><tr><td>Interest Expense</td><td>4,457</td><td>4,817</td><td>5,604</td></tr><tr><td>Net (Expense) Revenues</td><td>1,349</td><td>-2,125</td><td>2,282</td></tr><tr><td>Non-Interest Expenses</td><td>15,445</td><td>18,060</td><td>11,900</td></tr><tr><td>Net Loss Including Noncontrolling Interests</td><td>-14,096</td><td>-20,185</td><td>-9,618</td></tr><tr><td>Net Loss Attributable to Noncontrolling Interests</td><td>-13,392</td><td>-17,934</td><td>-10,506</td></tr><tr><td>Net (Loss) Income Attributable to RJF</td><td>$-704</td><td>$-2,251</td><td>$888</td></tr></table>
<table><tr><td></td><td colspan="2">September 30,</td></tr><tr><td></td><td>2010</td><td>2009</td></tr><tr><td></td><td colspan="2">(in 000's)</td></tr><tr><td>Short-Term Other Borrowings:</td><td></td><td></td></tr><tr><td>Federal Home Loan Bank Advances-1</td><td>$2,445,000</td><td>$905,000</td></tr><tr><td>Borrowings on Secured Lines of Credit-2</td><td>62,000</td><td>30,000</td></tr><tr><td>Borrowings on Unsecured Lines of Credit-3</td><td>50,000</td><td>-</td></tr><tr><td>Total Short-Term Other Borrowings</td><td>2,557,000</td><td>935,000</td></tr><tr><td>Long-Term Other Borrowings:</td><td></td><td></td></tr><tr><td>Federal Home Loan Bank Advances-1</td><td>-</td><td>45,000</td></tr><tr><td>Total Other Borrowings</td><td>$2,557,000</td><td>$980,000</td></tr></table>
<table><tr><td></td><td colspan="9">Year Ended September 30,</td></tr><tr><td></td><td colspan="3">2010</td><td colspan="3">2009</td><td colspan="3">2008</td></tr><tr><td></td><td>AverageBalance</td><td>Interest Inc./Exp.</td><td>Average Yield/ Cost</td><td>AverageBalance</td><td>Interest Inc./Exp.</td><td>Average Yield/ Cost</td><td>AverageBalance</td><td>InterestInc./Exp.</td><td>Average Yield/ Cost</td></tr><tr><td></td><td colspan="9">($ in 000's)</td></tr><tr><td>Interest-Earning Assets:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Margin Balances</td><td>$ 1,355,665</td><td>$ 46,650</td><td>3.44%</td><td>$ 1,185,086</td><td>$ 37,617</td><td>3.17%</td><td>$1,559,305</td><td>$ 83,856</td><td>5.38%</td></tr><tr><td>Assets Segregated Pursuant to Regulations and Other Segregated Assets</td><td>1,861,977</td><td>7,685</td><td>0.41%</td><td>4,572,808</td><td>14,786</td><td>0.32%</td><td>4,264,868</td><td>126,556</td><td>2.97%</td></tr><tr><td>Bank Loans, Net of Unearned Income-1</td><td>6,439,827</td><td>257,988</td><td>3.97%</td><td>7,497,579</td><td>320,167</td><td>4.24%</td><td>6,144,135</td><td>346,560</td><td>5.59%</td></tr><tr><td>Available for Sale Securities</td><td>529,056</td><td>17,846</td><td>3.37%</td><td>650,777</td><td>24,373</td><td>3.75%</td><td>645,762</td><td>31,700</td><td>4.91%</td></tr><tr><td>Trading Instruments</td><td></td><td>18,146</td><td></td><td></td><td>13,112</td><td></td><td></td><td>31,865</td><td></td></tr><tr><td>Stock Borrow</td><td></td><td>8,448</td><td></td><td></td><td>10,269</td><td></td><td></td><td>36,843</td><td></td></tr><tr><td>Interest-Earning Assets of Variable Interest Entities</td><td></td><td>13</td><td></td><td></td><td>71</td><td></td><td></td><td>657</td><td></td></tr><tr><td>Other</td><td></td><td>14,116</td><td></td><td></td><td>23,189</td><td></td><td></td><td>66,026</td><td></td></tr><tr><td>Total Interest Income</td><td></td><td>370,892</td><td></td><td></td><td>443,584</td><td></td><td></td><td>724,063</td><td></td></tr><tr><td>Interest-Bearing Liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Brokerage Client Liabilities</td><td>$ 2,958,026</td><td>3,688</td><td>0.12%</td><td>$ 5,788,338</td><td>10,958</td><td>0.19%</td><td>$5,412,303</td><td>137,511</td><td>2.54%</td></tr><tr><td>Deposits-1</td><td>6,882,537</td><td>16,053</td><td>0.23%</td><td>8,331,432</td><td>24,023</td><td>0.29%</td><td>7,137,843</td><td>185,032</td><td>2.59%</td></tr><tr><td>Stock Loan</td><td></td><td>3,530</td><td></td><td></td><td>3,838</td><td></td><td></td><td>26,552</td><td></td></tr><tr><td>Borrowed Funds</td><td></td><td>6,099</td><td></td><td></td><td>7,946</td><td></td><td></td><td>19,317</td><td></td></tr><tr><td>Senior Notes</td><td>299,953</td><td>26,091</td><td>8.60%</td><td>33,709</td><td>2,899</td><td>8.60%</td><td></td><td>-</td><td>-%</td></tr><tr><td>Interest-Expense of Variable Interest Entities</td><td></td><td>4,457</td><td></td><td></td><td>4,853</td><td></td><td></td><td>5,604</td><td></td></tr><tr><td>Other</td><td></td><td>2,933</td><td></td><td></td><td>2,436</td><td></td><td></td><td>18,213</td><td></td></tr><tr><td>Total Interest Expense</td><td></td><td>62,851</td><td></td><td></td><td>56,953</td><td></td><td></td><td>392,229</td><td></td></tr><tr><td>Net Interest Income</td><td></td><td>$ 308,041</td><td></td><td></td><td>$ 386,631</td><td></td><td></td><td>$ 331,834</td><td></td></tr></table>

Question: As As the chart 3 shows,which Year Ended September 30 is the value of the Average Balance for Available for Sale Securities the largest?