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Off-Balance Sheet ArrangementsAs of September 30, 2009, we held a 49% ownership interest in Lightning Finance Company Limited(“LFL”) and Lightning Asset Finance Limited (“LAFL”) and accounted for the ownership interest in thesecompanies using the equity method of accounting. We recorded these investments at their carrying values asinvestments in equity method investees. As of September 30, 2009, LFL had approximately $3.5 million intotal assets and our exposure to loss related to LFL was limited to the carrying value of our investmenttotaling approximately $1.7 million. As of September 30, 2009, LAFL had approximately $20.6 million intotal assets and our maximum exposure to loss related to LAFL totaled approximately $10.1 million. Themaximum exposure to loss related to LAFL is limited to the carrying value of our investment and 49% ofthe liabilities of LAFL. We recognized pre-tax income of approximately $3.1 million and pre-tax losses of$8.5 million for our share of LFL’s and LAFL’s net income and losses in fiscal years 2009 and 2008. Dueto our significant interest in LAFL, we carried on our consolidated balance sheet the DCA generated in theUnited States and the financing liability for the related future revenue we previously sold to LFL which wassubsequently transferred to LAFL. We repurchased the remaining DCA from LAFL in September 2009 andhave reflected this transaction as a repayment of the remaining financing obligation. We are in the processof selling our ownership interests in LFL and LAFL to the holder of the 51% ownership interest and expectto complete this divestiture in fiscal year 2010.Our banking/finance segment periodically enters into automobile loan securitization transactions withqualified special purpose entities, which then issue asset-backed securities to private investors (see Note 9 –Securitization of Loans Held for Sale in the notes to consolidated financial statements in Item 8 of Part II ofthis Form 10-K). Our main objective in entering into these securitization transactions is to obtain financingfor automobile loan activities. Securitized loans held by the securitization trusts totaled $551.4 million and$851.8 million at September 30, 2009 and 2008.In our role as agent or trustee, we facilitate the settlement of investor share purchase, redemption, andother transactions with affiliated mutual funds. We are appointed by the affiliated mutual funds as agent ortrustee to manage, on behalf of the affiliated mutual funds, bank deposit accounts that contain only (i) cashremitted by investors to the affiliated mutual funds for the direct purchase of fund shares, or (ii) cashremitted by the affiliated mutual funds for direct delivery to the investors for either the proceeds of fundshares liquidated at the investors’ direction, or dividends and capital gains earned on fund shares. As ofSeptember 30, 2009 and 2008, we held cash of approximately $214.5 million and $185.7 millionoff-balance sheet in agency or trust for investors and the affiliated mutual funds.Critical Accounting PoliciesOur consolidated financial statements and accompanying notes are prepared in accordance withaccounting principles generally accepted in the United States of America, which require the use ofestimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the periods presented.These estimates, judgments, and assumptions are affected by our application of accounting policies. Belowwe describe certain critical accounting policies that we believe are important to understanding our results ofoperations and financial position. For additional information about our accounting policies, please refer toNote 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of PartII of this Form 10-K.Fair Value MeasurementsWe record substantially all of our investments in the financial statements at fair value or amounts thatapproximate fair value. Fair value is defined as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date (the “exit52