Table of Contents 25 ITEM 1B.
UNRESOLVED STAFF COMMENTS We have no unresolved SEC staff comments to report.
ITEM 2.
PROPERTIES As of December 31, 2015, we owned or leased 126 major manufacturing sites and 14 major technical centers.
A manufacturing site may include multiple plants and may be wholly or partially owned or leased.
We also have many smaller manufacturing sites, sales offices, warehouses, engineering centers, joint ventures and other investments strategically located throughout the world.
We have a presence in 44 countries.
The following table shows the regional distribution of our major manufacturing sites by the operating segment that uses such facilities:
## Table 0 ##
In addition to these manufacturing sites, we had 14 major technical centers: four in North America; five in Europe, Middle East and Africa; four in Asia Pacific; and one in South America.
Of our 126 major manufacturing sites and 14 major technical centers, which include facilities owned or leased by our consolidated subsidiaries, 77 are primarily owned and 63 are primarily leased.
We frequently review our real estate portfolio and develop footprint strategies to support our customers’ global plans, while at the same time supporting our technical needs and controlling operating expenses.
We believe our evolving portfolio will meet current and anticipated future needs.
ITEM 3.
LEGAL PROCEEDINGS We are from time to time subject to various actions, claims, suits, government investigations, and other proceedings incidental to our business, including those arising out of alleged defects, breach of contracts, competition and antitrust matters, product warranties, intellectual property matters, personal injury claims and employment-related matters.
It is our opinion that the outcome of such matters will not have a material adverse impact on our consolidated financial position, results of operations, or cash flows.
With respect to warranty matters, although we cannot ensure that the future costs of warranty claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements.
However, the final amounts required to resolve these matters could differ materially from our recorded estimates.
GM Ignition Switch Recall In the first quarter of 2014, GM, Delphi’s largest customer, initiated a product recall related to ignition switches.
Delphi received requests for information from, and cooperated with, various government agencies related to this ignition switch recall.
In addition, Delphi was initially named as a co-defendant along with GM (and in certain cases other parties) in class action and product liability lawsuits related to this matter.
As of December 31, 2015, Delphi was not named as a defendant in any class action complaints.
Although no assurances can be made as to the ultimate outcome of these or any other future claims, Delphi does not believe a loss is probable and, accordingly, no reserve has been made as of December 31, 2015.
Unsecured Creditors Litigation The Fourth Amended and Restated Limited Liability Partnership Agreement of Delphi Automotive LLP (the “Fourth LLP Agreement”) was entered into on July 12, 2011 by the members of Delphi Automotive LLP in order to position the Company for its initial public offering.
Under the terms of the Fourth LLP Agreement, if cumulative distributions to the members of Delphi Automotive LLP under certain provisions of the Fourth LLP Agreement exceed $7.2 billion, Delphi, as disbursing agent on behalf of DPHH, is required to pay to the holders of allowed general unsecured claims against DPHH $32.50 for every $67.50 in excess of $7.2 billion distributed to the members, up to a maximum amount of $300 million.
In December 2014, a complaint was filed in the Bankruptcy Court alleging that the redemption by Delphi Automotive LLP of the membership interests of GM and the PBGC, and the repurchase of shares and payment of dividends by Delphi Automotive PLC, constituted distributions under the terms of the Fourth LLP Agreement approximating $7.2 billion.
Delphi considers cumulative
Fair values for both variable and fixed-rate loans held for investment are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.
As such, this methodology for estimating the fair value of loans is not based on an exit price concept.
The fair value of loans held for sale is estimated using current market prices for loans with similar terms and borrowers of similar credit quality.
Receivables and Other Assets: Brokerage client receivables, receivables from broker-dealers and clearing organizations, stock borrowed receivables, other receivables, FHLB stock and certain other assets are recorded at amounts that approximate fair value.
Cost was determined to be the estimated fair value of the FHLB stock.
In addition, RJ Bank holds a small Community Reinvestment Act investment for which cost approximates fair value.
Bank Deposits: The fair values for demand deposits are equal to the amount payable on demand at the reporting date (that is, their carrying amounts).
The carrying amounts of variable-rate money-market and savings accounts approximate their fair values at the reporting date as these are short-term in nature.
Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of expected monthly maturities on time deposits.
Payables: Brokerage client payables, payables due to broker-dealers and clearing organizations, stock loaned payables, and trade and other payables are recorded at amounts that approximate fair value.
Other Borrowings: The fair value of the FHLB advances held at RJ Bank is based on the discounted value of contractual cash flows.
The discount rate is estimated using the rates currently offered by creditors for advances of similar terms and remaining maturities.
Corporate Debt: The fair value of the mortgage note payable associated with the financing of our home office complex is based upon an estimate of the current market rates for similar loans.
The fair value of our senior notes due August 2019 is based upon recent trades of those debt securities in the market.
Off-Balance Sheet Financial Instruments: The fair value of letters of credit and unfunded commitments to extend credit is based on the fees currently charged to enter into similar agreements.
The aggregate of these fees is not material, and therefore are excluded from the table below.
These instruments are further referenced in Note 23.
For those financial instruments which the fair value is not reflected on the Consolidated Statements of Financial Condition, we have estimated their fair value in part, based upon our assumptions, the estimated amount and timing of future cash flows and estimated discount rates.
Different assumptions could significantly affect these estimated fair values.
Accordingly, the net realizable values could be materially different from the estimates presented below.
In addition, the estimates are only indicative of the value of individual financial instruments and should not be considered an indication of our fair value.
We are not required to disclose the fair value of nonfinancial instruments including property, equipment and leasehold improvements as well as goodwill.
The carrying amounts and estimated fair values of our financial instruments that are not carried at fair value at September 30, 2010 and September 30, 2009, respectively, are as follows:
## Table 1 ##
Non-Guaranteed Low-Income Housing Tax Credit Funds As the managing member or general partner of the fund, except for the one guaranteed fund discussed above, RJTCF does not provide guarantees related to the delivery or funding of tax credits or other tax attributes to the investor members or limited partners of these tax credit funds.
The investor member(s) or limited partner(s) of the VIEs bear the risk of loss on their investment.
Additionally, under the tax credit funds’ designed structure, the investor member(s) or limited partner(s) also receive a greater proportion of any proceeds upon a sale of a project partnership held by a tax credit fund (fund level residuals) than does RJTCF.
We have concluded that the determination of whether RJTCF is the primary beneficiary of its non-guaranteed lowincome housing tax credit funds is primarily dependent upon each respective member’s ownership interest in the fund.
In instances where there is a single investor member that holds a 50% or more interest in the total fund’s tax credits and tax loss benefits, RJTCF is not deemed to be the primary beneficiary of such non-guaranteed fund given that one investor member has the majority of the exposure to the fund’s expected benefits and losses.
Conversely, for those tax credit fund VIEs where there is not one single investor member holding a 50% or more interest in the fund’s tax credits and tax loss benefits, then RJTCF is deemed to be the primary beneficiary of such tax credit fund VIEs.
RJTCF has concluded that it is the primary beneficiary in approximately 13 of the 61 non-guaranteed low-income housing tax credit funds it has determined to be VIEs, and accordingly, consolidates these funds.
VIEs where we hold a variable interest but we are not the Primary Beneficiary We have determined that we are not the primary beneficiary of certain VIEs in which we hold an interest.
The aggregate assets, liabilities, and our exposure to loss from those VIEs in which we hold a variable interest, but we are not the primary beneficiary, are provided in the table below.
## Table 2 ##
Low-Income Housing Partnerships RJTCF is not the primary beneficiary of 48 of the low-income housing tax credit funds it determined to be VIEs, and accordingly, we do not consolidate these funds.
Our risk of loss is limited to our investments in, advances to, and receivables due from these funds.
Other Real Estate Limited Partnerships and LLCs As of September 30, 2010, we have a variable interest in several limited partnerships involved in various real estate activities in which one of our subsidiaries is the general partner.
In addition, RJ Bank has a variable interest in several LLCs involved in foreclosure or obtaining of deeds in lieu of foreclosure, as well as the disposal of the collateral associated with impaired syndicated loans.
Given that we either are not entitled to receive the majority of any residual returns, or we do not have the ability to significantly influence the financial results of these partnerships or LLCs, we have determined that we are not the primary beneficiary of these VIEs.
Accordingly, we do not consolidate these partnerships or LLCs.
The carrying value of our investment in these partnerships or LLCs represents our risk of loss.
Entities evaluated but determined not to be VIEs RJTCF has determined that two of its LIHTC Funds are not VIEs.
These funds are held 99% by RJTCF.
At September 30, 2010, only one of these funds had any material activity.
These funds typically hold interests in certain tax credit limited partnerships for less than 90 days, or until beneficial interest in the limited partnership or fund is sold to third-parties.
These funds did not have any assets or liabilities as of September 30, 2010.
As of September 30, 2009, these funds had assets of approximately $1.6 million, which are included in Other Assets in our Consolidated Statements of Financial Condition, and which also represent our risk of loss as of that date.
See Note 17 for discussion of our commitments related to RJTCF.
Complementing the impact of the implementation of the multi-bank sweep aspect of the RJBDP, which replaced a portion of the foregone interest earnings in the PCG segment with fee income, net interest income in the PCG segment increased $5 million, or 10%, versus the prior year due to higher margin balances and increased net interest spreads on segregated cash.
In addition to this increase in net interest income, the PCG segment realized a $32.5 million increase in fee income generated by the multi-bank sweep aspect of the RJBDP during the year.
Year ended September 30, 2009 Compared with the Year ended September 30, 2008 – Net Interest Net interest income at RJ Bank increased $106.8 million, or 50%, representing more than all of the $55 million increase in our total net interest earnings.
This increase in net interest income at RJ Bank resulted from the significant decline in market rates that occurred early in the fiscal year, leading to lower interest rates being paid on RJ Bank’s retail deposit accounts throughout the year.
RJ Bank benefited as the rates on interest earning assets declined at a much slower pace than rates paid on deposits.
The decline in interest rates had a dramatic impact on net interest in the PCG segment, which declined $42 million, or 45%.
Interest earned on assets segregated declined $112 million, or 88%, as rates dropped as low as 0.20% for a portion of the year.
Average customer margin balances declined $374 million, or 24%, during 2009, contributing to the decline in interest revenue in the PCG segment.
Net interest on the stock loan/borrow business decreased 38% due to decreased rates and balances despite a focus on hard-to-locate securities.
Other interest revenue includes earnings on corporate cash and other investments.
Other interest expense consists of expense on short inventory positions and inventory financing activities.
Results of Operations - Private Client Group The following table presents consolidated financial information for our PCG segment for the years indicated:
## Table 3 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>North America</td><td>Europe,Middle East& Africa</td><td>Asia Pacific</td><td>South America</td><td>Total</td></tr><tr><td>Electrical/Electronic Architecture</td><td>30</td><td>32</td><td>25</td><td>5</td><td>92</td></tr><tr><td>Powertrain Systems</td><td>4</td><td>10</td><td>5</td><td>2</td><td>21</td></tr><tr><td>Electronics and Safety</td><td>3</td><td>7</td><td>3</td><td>—</td><td>13</td></tr><tr><td>Total</td><td>37</td><td>49</td><td>33</td><td>7</td><td>126</td></tr></table>
<table><tr><td></td><td colspan="2">September 30, 2010</td><td colspan="2">September 30, 2009</td></tr><tr><td></td><td>Carrying Amount</td><td>Estimated Fair Value</td><td>Carrying Amount</td><td>Estimated Fair Value</td></tr><tr><td></td><td colspan="4">(in 000’s)</td></tr><tr><td>Financial Assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Bank Loans, Net</td><td>$6,094,929</td><td>$6,099,106</td><td>$6,593,973</td><td>$6,597,496</td></tr><tr><td>Financial Liabilities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Bank Deposits</td><td>7,079,718</td><td>7,088,297</td><td>9,423,387</td><td>9,428,892</td></tr><tr><td>Other Borrowings</td><td>2,557,000</td><td>2,557,613</td><td>980,000</td><td>982,741</td></tr><tr><td>Corporate Debt</td><td>355,964</td><td>421,132</td><td>359,034</td><td>398,108</td></tr></table>
<table><tr><td></td><td colspan="6">As of September 30,</td></tr><tr><td></td><td colspan="3">2010</td><td colspan="3">2009</td></tr><tr><td></td><td>AggregateAssets</td><td>Aggregate Liabilities</td><td>Our Risk Of Loss</td><td>AggregateAssets</td><td>Aggregate Liabilities</td><td>Our Risk Of Loss</td></tr><tr><td></td><td colspan="6">(in 000’s)</td></tr><tr><td>LIHTC Funds</td><td>$1,303,500</td><td>$302,749</td><td>$10,691</td><td>$1,148,622</td><td>$165,411</td><td>$7,292</td></tr><tr><td>Other Real Estate Limited Partnerships and LLCs</td><td>51,166</td><td>38,699</td><td>20,246</td><td>11,003</td><td>20,994</td><td>804</td></tr><tr><td>Total</td><td>$1,354,666</td><td>$341,448</td><td>$30,937</td><td>$1,159,625</td><td>$186,405</td><td>$8,096</td></tr></table>
<table><tr><td></td><td colspan="5">Year Ended September 30,</td></tr><tr><td></td><td>2010</td><td>% Change</td><td>2009</td><td>% Change</td><td>2008</td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities Commissions and Fees</td><td>$1,585,371</td><td>26%</td><td>$1,262,810</td><td>-18%</td><td>$1,532,290</td></tr><tr><td>Interest</td><td>63,128</td><td>-4%</td><td>65,589</td><td>-72%</td><td>233,801</td></tr><tr><td>Financial Service Fees</td><td>146,042</td><td>17%</td><td>125,038</td><td>-2%</td><td>127,304</td></tr><tr><td>Other</td><td>108,560</td><td>4%</td><td>104,025</td><td>-2%</td><td>106,380</td></tr><tr><td>Total Revenues</td><td>1,903,101</td><td>22%</td><td>1,557,462</td><td>-22%</td><td>1,999,775</td></tr><tr><td>Interest Expense</td><td>7,194</td><td>-52%</td><td>14,891</td><td>-89%</td><td>141,474</td></tr><tr><td>Net Revenues</td><td>1,895,907</td><td>23%</td><td>1,542,571</td><td>-17%</td><td>1,858,301</td></tr><tr><td>Non-Interest Expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales Commissions</td><td>1,168,055</td><td>26%</td><td>929,202</td><td>-19%</td><td>1,144,727</td></tr><tr><td>Admin & Incentive Comp and Benefit Costs</td><td>310,184</td><td>11%</td><td>279,666</td><td>-4%</td><td>289,937</td></tr><tr><td>Communications and Information Processing</td><td>59,974</td><td>2%</td><td>58,607</td><td>-2%</td><td>59,753</td></tr><tr><td>Occupancy and Equipment</td><td>77,349</td><td>-2%</td><td>79,072</td><td>8%</td><td>73,253</td></tr><tr><td>Business Development</td><td>49,126</td><td>-11%</td><td>55,488</td><td>-15%</td><td>64,992</td></tr><tr><td>Clearance and Other</td><td>71,263</td><td>27%</td><td>55,952</td><td>18%</td><td>47,369</td></tr><tr><td>Total Non-Interest Expenses</td><td>1,735,951</td><td>19%</td><td>1,457,987</td><td>-13%</td><td>1,680,031</td></tr><tr><td>Income Before Taxes and Including Noncontrolling Interests</td><td>159,956</td><td>89%</td><td>84,584</td><td>-53%</td><td>178,270</td></tr><tr><td>Noncontrolling Interests</td><td>-514</td><td></td><td>-289</td><td></td><td>124</td></tr><tr><td>Pre-tax Income Excluding Noncontrolling Interests</td><td>$160,470</td><td>89%</td><td>$84,873</td><td>-52%</td><td>$178,146</td></tr><tr><td>Margin on Net Revenues</td><td>8.5%</td><td></td><td>5.5%</td><td></td><td>9.6%</td></tr></table>

Question: What's the average of the Total for Financial Liabilities for AggregateAssets in the years where Bank Deposits for Financial Liabilities for Carrying Amount is positive? (in thousand)
Answer: 1.25715e+06
Reasoning program: add(1354666,1159625), divide(#0,2)