x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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13-2670991
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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One Franklin Parkway, San Mateo, California
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94403
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $.10 per share
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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FORM 10-K
ITEM
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PAGE
NUMBER
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ITEM 1.
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3
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3
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4
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5
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14
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14
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20
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20
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21
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21
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ITEM 1A.
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21
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ITEM 1B.
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29
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ITEM 2.
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29
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ITEM 3.
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30
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ITEM 4.
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30
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Executive Officers
of the Registrant
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30
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ITEM 5.
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32
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ITEM 6.
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33
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ITEM 7.
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34
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ITEM 7A.
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60
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ITEM 8.
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62
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ITEM 9.
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106
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ITEM 9A.
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106
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ITEM 9B.
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106
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ITEM 10.
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106
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ITEM 11.
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107
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ITEM 12.
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107
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ITEM 13.
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107
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ITEM 14.
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107
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ITEM 15.
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108
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110
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Investment Objective
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Value in Billions
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Percentage of Total AUM
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|||
Equity
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Growth potential, income potential, value or various combinations thereof
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$
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371.0
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41
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%
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Hybrid
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Asset allocation, balanced, flexible, alternative and income-mixed funds
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159.0
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18
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%
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Fixed-Income
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|||
Both long-term and short-term
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361.0
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40
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%
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Cash Management
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Short-term liquid assets
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7.0
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1
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%
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Total
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$
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898.0
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100
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%
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•
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U.S. Funds
- Our U.S. Funds (including open-end and closed-end funds and our insurance products trust) accounted for
$491.4 billion
of AUM as of
September 30, 2014
. Our five largest U.S. Funds and their AUM were FCF - Franklin Income Fund ($94.3 billion), TIT - Templeton Global Bond Fund ($72.6 billion), FMSF - Franklin Mutual Global Discovery Fund ($25.5 billion), Templeton Growth Fund Inc. ($17.3 billion) and FMSF - Franklin Mutual Shares Fund ($16.4 billion). These five funds represented, in the aggregate, 25% of total AUM.
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•
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Cross-Border Funds
- Our cross-border products, which are comprised of a variety of investment funds principally domiciled in Luxembourg and registered for sale to non-U.S. investors in 39 countries, accounted for
$167.7 billion
of AUM as of
September 30, 2014
. Our three largest cross-border funds and their AUM were FTIF - Templeton Global Bond Fund ($38.5 billion), FTIF - Templeton Global Total Return Fund ($34.7 billion) and FTIF - Templeton Asian Growth Fund ($13.2 billion). These three funds represented, in the aggregate, 10% of total AUM.
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•
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Local/Regional Funds
- In addition to our cross-border products, in some countries we offer products for the particular local market. These local/regional funds accounted for
$47.5 billion
of AUM as of
September 30, 2014
.
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•
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Other Managed Accounts, Alternative Investment Products and Trusts
- On a company-wide basis, our managed accounts, alternative investment products and trusts accounted for
$191.4 billion
of AUM as of
September 30, 2014
, of which $10.1 billion included K2 investment products and funds, and $7.4 billion included Darby products and real estate, emerging markets and certain global fixed-income investment funds.
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(in billions)
INVESTMENT OBJECTIVE
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INVESTMENT DESCRIPTION
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U.S.
Funds
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Cross-Border
Funds
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Local/Regional
Funds
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Other Managed Accounts,
Alternative Investment
Products and Trusts
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Total
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||||||||||
Equity
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||||||||||
Asia-Pacific
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Invests primarily in equity securities of companies located in the Asia-Pacific region
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$
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1.1
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$
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18.3
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$
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4.0
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$
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24.0
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$
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47.4
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Canada
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Invests primarily in equity securities of companies located in Canada
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—
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—
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5.3
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8.9
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14.2
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|||||
Europe, the Middle East and Africa
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Invests primarily in equity securities of companies located in Europe, the Middle East and Africa
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2.9
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9.1
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6.7
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0.3
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19.0
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|||||
U.S.
|
|
Invests primarily in equity securities of companies located in the U.S.
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89.8
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9.9
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2.0
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7.8
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109.5
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|||||
Emerging Markets
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Invests primarily in equity securities of companies located in developing regions of the world
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5.9
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6.2
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3.9
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7.3
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23.3
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|||||
Global/International
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Invests primarily in equity securities of companies doing business either worldwide or only outside of the U.S.
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76.1
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16.2
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5.8
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59.5
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157.6
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|||||
Total Equity
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175.8
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59.7
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27.7
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107.8
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|
371.0
|
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|||||
Hybrid
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||||||||||
Asia-Pacific
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Invests primarily in equity and fixed-income securities of companies located in the Asia-Pacific region
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—
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—
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0.5
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5.5
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6.0
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|||||
Canada
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Invests primarily in equity and fixed-income securities of companies located in Canada
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—
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—
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1.8
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1.3
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3.1
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|||||
Europe, the Middle East and Africa
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Invests primarily in equity and fixed-income securities of companies located in Europe, the Middle East and Africa
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—
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2.0
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—
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0.4
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2.4
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|||||
U.S.
|
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Invests primarily in equity and fixed-income securities of companies located in the U.S.
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109.5
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4.3
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—
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25.6
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139.4
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|||||
Global/International
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Invests primarily in equity and fixed-income securities of companies doing business either worldwide or only outside of the U.S.
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3.5
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3.5
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0.5
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0.6
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8.1
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|||||
Total Hybrid
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|
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113.0
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9.8
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2.8
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33.4
|
|
|
159.0
|
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(in billions)
INVESTMENT OBJECTIVE
|
|
INVESTMENT DESCRIPTION
|
|
U.S.
Funds
|
|
Cross-Border
Funds
|
|
Local/Regional
Funds
|
|
Other Managed Accounts,
Alternative Investment
Products and Trusts
|
|
Total
|
||||||||||
Fixed-Income
|
|
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|
|
|
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|
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|
||||||||||
Asia-Pacific
|
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Invests primarily in debt securities offered by companies and governments located in the Asia-Pacific region
|
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$
|
—
|
|
|
$
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2.1
|
|
|
$
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5.4
|
|
|
$
|
1.5
|
|
|
$
|
9.0
|
|
Canada
|
|
Invests primarily in debt securities of companies and governments located in Canada
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
0.5
|
|
|
3.7
|
|
|||||
Europe, the Middle East and Africa
|
|
Invests primarily in debt securities of companies and governments located in Europe, the Middle East and Africa
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
4.3
|
|
|
6.5
|
|
|||||
U.S. Tax-Free
|
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Invests primarily in municipal bond issuers located in the U.S.
|
|
68.0
|
|
|
—
|
|
|
—
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|
|
4.1
|
|
|
72.1
|
|
|||||
U.S. Taxable
|
|
Invests primarily in taxable debt securities of companies and governments located in the U.S.
|
|
40.9
|
|
|
10.7
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|
|
3.1
|
|
|
9.1
|
|
|
63.8
|
|
|||||
Emerging Markets
|
|
Invests primarily in taxable debt securities of companies and governments located in developing countries worldwide
|
|
1.4
|
|
|
8.2
|
|
|
—
|
|
|
9.1
|
|
|
18.7
|
|
|||||
Global/International
|
|
Invests primarily in debt securities of companies and governments doing business either worldwide or only outside of the U.S.
|
|
87.2
|
|
|
74.4
|
|
|
4.0
|
|
|
21.6
|
|
|
187.2
|
|
|||||
Total Fixed- Income
|
|
|
|
197.5
|
|
|
97.6
|
|
|
15.7
|
|
|
50.2
|
|
|
361.0
|
|
|||||
Cash Management
|
Invests primarily in money market instruments and short-term securities
|
|
5.1
|
|
|
0.6
|
|
|
1.3
|
|
|
—
|
|
|
7.0
|
|
||||||
Total
|
|
|
|
$
|
491.4
|
|
|
$
|
167.7
|
|
|
$
|
47.5
|
|
|
$
|
191.4
|
|
|
$
|
898.0
|
|
Item 1A.
|
Risk Factors.
|
Item 1B.
|
Unresolved Staff Comments.
|
Item 2.
|
Properties.
|
Item 3.
|
Legal Proceedings.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Market for Registrant
’
s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
Quarter
|
|
2014 Fiscal Year
|
|
2013 Fiscal Year
|
||||||||||||
|
High
|
|
Low
|
|
High
|
|
Low
|
|||||||||
October-December
|
|
$
|
57.85
|
|
|
$
|
49.49
|
|
|
$
|
44.64
|
|
|
$
|
41.34
|
|
January-March
|
|
$
|
58.87
|
|
|
$
|
49.92
|
|
|
$
|
50.35
|
|
|
$
|
42.67
|
|
April-June
|
|
$
|
58.42
|
|
|
$
|
51.00
|
|
|
$
|
56.54
|
|
|
$
|
44.22
|
|
July-September
|
|
$
|
58.28
|
|
|
$
|
52.65
|
|
|
$
|
54.36
|
|
|
$
|
45.06
|
|
Month
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||
July 2014
|
|
360,000
|
|
|
$
|
55.93
|
|
|
360,000
|
|
|
32,621,896
|
|
August 2014
|
|
1,567,783
|
|
|
$
|
55.33
|
|
|
1,567,783
|
|
|
31,054,113
|
|
September 2014
|
|
1,281,000
|
|
|
$
|
55.34
|
|
|
1,281,000
|
|
|
29,773,113
|
|
Total
|
|
3,208,783
|
|
|
|
|
3,208,783
|
|
|
|
Item 6.
|
Selected Financial Data.
|
as of and for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Summary of Operations
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating revenues
|
|
$
|
8,491.4
|
|
|
$
|
7,985.0
|
|
|
$
|
7,101.0
|
|
|
$
|
7,140.0
|
|
|
$
|
5,853.0
|
|
Operating income
|
|
3,221.2
|
|
|
2,921.3
|
|
|
2,515.2
|
|
|
2,659.8
|
|
|
1,958.7
|
|
|||||
Operating margin
|
|
37.9
|
%
|
|
36.6
|
%
|
|
35.4
|
%
|
|
37.3
|
%
|
|
33.5
|
%
|
|||||
Net income attributable to Franklin Resources, Inc.
|
|
2,384.3
|
|
|
2,150.2
|
|
|
1,931.4
|
|
|
1,923.6
|
|
|
1,445.7
|
|
|||||
Financial Data
(in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
16,357.1
|
|
|
$
|
15,390.3
|
|
|
$
|
14,751.5
|
|
|
$
|
13,775.8
|
|
|
$
|
10,708.1
|
|
Debt
|
|
1,198.2
|
|
|
1,197.7
|
|
|
1,566.1
|
|
|
998.2
|
|
|
979.9
|
|
|||||
Debt of consolidated sponsored investment products and variable interest entities
|
|
950.8
|
|
|
1,097.4
|
|
|
1,211.1
|
|
|
1,170.3
|
|
|
—
|
|
|||||
Franklin Resources, Inc. stockholders’ equity
|
|
11,584.1
|
|
|
10,073.1
|
|
|
9,201.3
|
|
|
8,524.7
|
|
|
7,727.0
|
|
|||||
Operating cash flows
|
|
2,138.0
|
|
|
2,035.7
|
|
|
1,066.2
|
|
|
1,621.8
|
|
|
1,651.0
|
|
|||||
Investing cash flows
|
|
390.6
|
|
|
232.9
|
|
|
873.4
|
|
|
435.9
|
|
|
(32.7
|
)
|
|||||
Financing cash flows
|
|
(1,195.3
|
)
|
|
(2,018.1
|
)
|
|
(1,084.9
|
)
|
|
(968.2
|
)
|
|
(594.9
|
)
|
|||||
Assets Under Management
(in billions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending
|
|
$
|
898.0
|
|
|
$
|
844.7
|
|
|
$
|
749.9
|
|
|
$
|
659.9
|
|
|
$
|
644.9
|
|
Average
1
|
|
887.9
|
|
|
808.2
|
|
|
705.7
|
|
|
694.4
|
|
|
571.1
|
|
|||||
Per Common Share
2
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
3.79
|
|
|
$
|
3.37
|
|
|
$
|
2.99
|
|
|
$
|
2.89
|
|
|
$
|
2.12
|
|
Diluted
|
|
3.79
|
|
|
3.37
|
|
|
2.98
|
|
|
2.87
|
|
|
2.11
|
|
|||||
Cash dividends
|
|
0.48
|
|
|
1.39
|
|
|
1.03
|
|
|
0.33
|
|
|
1.29
|
|
|||||
Book value
|
|
18.60
|
|
|
15.97
|
|
|
14.45
|
|
|
13.05
|
|
|
11.50
|
|
|||||
Employee Headcount
|
|
9,266
|
|
|
9,002
|
|
|
8,558
|
|
|
8,453
|
|
|
7,927
|
|
1
|
Represents simple monthly average AUM.
|
2
|
All per share amounts have been adjusted retroactively to reflect the three-for-one split of common stock described in Item 5 (“Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities”).
|
Item 7.
|
Management
’
s Discussion and Analysis of Financial Condition and Results of Operations.
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
2014
vs. 2013 |
|
2013
vs. 2012 |
||||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
|
||||||||||
Operating revenues
|
|
$
|
8,491.4
|
|
|
$
|
7,985.0
|
|
|
$
|
7,101.0
|
|
|
6
|
%
|
|
12
|
%
|
Operating income
|
|
3,221.2
|
|
|
2,921.3
|
|
|
2,515.2
|
|
|
10
|
%
|
|
16
|
%
|
|||
Net income attributable to Franklin Resources, Inc.
|
|
2,384.3
|
|
|
2,150.2
|
|
|
1,931.4
|
|
|
11
|
%
|
|
11
|
%
|
|||
Diluted earnings per share
|
|
$
|
3.79
|
|
|
$
|
3.37
|
|
|
$
|
2.98
|
|
|
12
|
%
|
|
13
|
%
|
Operating margin
1
|
|
37.9
|
%
|
|
36.6
|
%
|
|
35.4
|
%
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
2014
vs. 2013 |
|
2013
vs. 2012 |
||||||||
as of September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
|
||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
$
|
261.5
|
|
|
$
|
243.9
|
|
|
$
|
214.9
|
|
|
7
|
%
|
|
13
|
%
|
United States
|
|
109.5
|
|
|
97.2
|
|
|
82.2
|
|
|
13
|
%
|
|
18
|
%
|
|||
Total equity
|
|
371.0
|
|
|
341.1
|
|
|
297.1
|
|
|
9
|
%
|
|
15
|
%
|
|||
Hybrid
|
|
159.0
|
|
|
137.5
|
|
|
110.1
|
|
|
16
|
%
|
|
25
|
%
|
|||
Fixed-Income
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax-free
|
|
72.1
|
|
|
72.4
|
|
|
83.2
|
|
|
0
|
%
|
|
(13
|
)%
|
|||
Taxable
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
225.1
|
|
|
228.8
|
|
|
196.4
|
|
|
(2
|
)%
|
|
16
|
%
|
|||
United States
|
|
63.8
|
|
|
58.3
|
|
|
56.7
|
|
|
9
|
%
|
|
3
|
%
|
|||
Total fixed-income
|
|
361.0
|
|
|
359.5
|
|
|
336.3
|
|
|
0
|
%
|
|
7
|
%
|
|||
Cash Management
|
|
7.0
|
|
|
6.6
|
|
|
6.4
|
|
|
6
|
%
|
|
3
|
%
|
|||
Total
|
|
$
|
898.0
|
|
|
$
|
844.7
|
|
|
$
|
749.9
|
|
|
6
|
%
|
|
13
|
%
|
Average for the Year
|
|
$
|
887.9
|
|
|
$
|
808.2
|
|
|
$
|
705.7
|
|
|
10
|
%
|
|
15
|
%
|
(in billions)
|
|
Average AUM
|
|
2014
vs. 2013 |
|
2013
vs. 2012 |
||||||||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
|
||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Global/international
|
|
$
|
262.1
|
|
|
$
|
228.1
|
|
|
$
|
204.3
|
|
|
15
|
%
|
|
12
|
%
|
United States
|
|
107.6
|
|
|
87.8
|
|
|
78.7
|
|
|
23
|
%
|
|
12
|
%
|
|||
Total equity
|
|
369.7
|
|
|
315.9
|
|
|
283.0
|
|
|
17
|
%
|
|
12
|
%
|
|||
Hybrid
|
|
152.7
|
|
|
126.2
|
|
|
101.9
|
|
|
21
|
%
|
|
24
|
%
|
|||
Fixed-Income
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax-free
|
|
71.0
|
|
|
81.7
|
|
|
77.5
|
|
|
(13
|
)%
|
|
5
|
%
|
|||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Global/international
|
|
227.7
|
|
|
220.5
|
|
|
185.4
|
|
|
3
|
%
|
|
19
|
%
|
|||
United States
|
|
60.2
|
|
|
57.9
|
|
|
51.6
|
|
|
4
|
%
|
|
12
|
%
|
|||
Total fixed-income
|
|
358.9
|
|
|
360.1
|
|
|
314.5
|
|
|
0
|
%
|
|
14
|
%
|
|||
Cash Management
|
|
6.6
|
|
|
6.0
|
|
|
6.3
|
|
|
10
|
%
|
|
(5
|
)%
|
|||
Total
|
|
$
|
887.9
|
|
|
$
|
808.2
|
|
|
$
|
705.7
|
|
|
10
|
%
|
|
15
|
%
|
|
|
Mix of Average AUM
|
|||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|||
Equity
|
|
|
|
|
|
|
|||
Global/international
|
|
30
|
%
|
|
28
|
%
|
|
29
|
%
|
United States
|
|
12
|
%
|
|
11
|
%
|
|
11
|
%
|
Total equity
|
|
42
|
%
|
|
39
|
%
|
|
40
|
%
|
Hybrid
|
|
17
|
%
|
|
16
|
%
|
|
14
|
%
|
Fixed-Income
|
|
|
|
|
|
|
|||
Tax-free
|
|
8
|
%
|
|
10
|
%
|
|
11
|
%
|
Taxable
|
|
|
|
|
|
|
|||
Global/international
|
|
25
|
%
|
|
27
|
%
|
|
26
|
%
|
United States
|
|
7
|
%
|
|
7
|
%
|
|
8
|
%
|
Total fixed-income
|
|
40
|
%
|
|
44
|
%
|
|
45
|
%
|
Cash Management
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
1
|
Includes impact of foreign exchange revaluation.
|
(in billions)
|
|
Equity
|
|
|
|
Fixed-Income
|
|
|
|
|
||||||||||||||||||||||
for the fiscal year ended
September 30, 2014 |
|
Global/International
|
|
United States
|
|
Hybrid
|
|
Tax-Free
|
|
Taxable
Global/International
|
|
Taxable
United States
|
|
Cash
Management
|
|
Total
|
||||||||||||||||
AUM at October 1, 2013
|
|
$
|
243.9
|
|
|
$
|
97.2
|
|
|
$
|
137.5
|
|
|
$
|
72.4
|
|
|
$
|
228.8
|
|
|
$
|
58.3
|
|
|
$
|
6.6
|
|
|
$
|
844.7
|
|
Long-term sales
|
|
51.5
|
|
|
24.3
|
|
|
31.5
|
|
|
8.2
|
|
|
60.8
|
|
|
16.3
|
|
|
—
|
|
|
192.6
|
|
||||||||
Long-term redemptions
|
|
(54.1
|
)
|
|
(24.7
|
)
|
|
(23.4
|
)
|
|
(13.2
|
)
|
|
(66.7
|
)
|
|
(15.4
|
)
|
|
—
|
|
|
(197.5
|
)
|
||||||||
Net exchanges
|
|
0.5
|
|
|
0.6
|
|
|
1.8
|
|
|
(1.0
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||||||
Net cash management
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
||||||||
Net new flows
|
|
(2.1
|
)
|
|
0.2
|
|
|
9.9
|
|
|
(6.0
|
)
|
|
(8.0
|
)
|
|
0.9
|
|
|
0.5
|
|
|
(4.6
|
)
|
||||||||
Reinvested distributions
|
|
3.9
|
|
|
3.5
|
|
|
5.3
|
|
|
2.4
|
|
|
4.9
|
|
|
1.6
|
|
|
—
|
|
|
21.6
|
|
||||||||
Net flows
|
|
1.8
|
|
|
3.7
|
|
|
15.2
|
|
|
(3.6
|
)
|
|
(3.1
|
)
|
|
2.5
|
|
|
0.5
|
|
|
17.0
|
|
||||||||
Distributions
|
|
(4.4
|
)
|
|
(3.7
|
)
|
|
(6.1
|
)
|
|
(2.9
|
)
|
|
(6.8
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
(26.1
|
)
|
||||||||
Appreciation (depreciation) and other
1
|
|
20.2
|
|
|
12.3
|
|
|
12.4
|
|
|
6.2
|
|
|
6.2
|
|
|
5.2
|
|
|
(0.1
|
)
|
|
62.4
|
|
||||||||
AUM at September 30, 2014
|
|
$
|
261.5
|
|
|
$
|
109.5
|
|
|
$
|
159.0
|
|
|
$
|
72.1
|
|
|
$
|
225.1
|
|
|
$
|
63.8
|
|
|
$
|
7.0
|
|
|
$
|
898.0
|
|
1
|
Includes impact of foreign exchange revaluation.
|
(in billions)
|
|
Equity
|
|
|
|
Fixed-Income
|
|
|
|
|
||||||||||||||||||||||
for the fiscal year ended
September 30, 2013 |
|
Global/International
|
|
United States
|
|
Hybrid
|
|
Tax-Free
|
|
Taxable
Global/International
|
|
Taxable
United
States
|
|
Cash
Management
|
|
Total
|
||||||||||||||||
AUM at October 1, 2012
|
|
$
|
214.9
|
|
|
$
|
82.2
|
|
|
$
|
110.1
|
|
|
$
|
83.2
|
|
|
$
|
196.4
|
|
|
$
|
56.7
|
|
|
$
|
6.4
|
|
|
$
|
749.9
|
|
Long-term sales
|
|
45.5
|
|
|
17.4
|
|
|
26.4
|
|
|
12.4
|
|
|
95.6
|
|
|
18.3
|
|
|
—
|
|
|
215.6
|
|
||||||||
Long-term redemptions
|
|
(50.1
|
)
|
|
(21.0
|
)
|
|
(19.3
|
)
|
|
(16.7
|
)
|
|
(66.6
|
)
|
|
(16.3
|
)
|
|
—
|
|
|
(190.0
|
)
|
||||||||
Net exchanges
|
|
(0.1
|
)
|
|
1.1
|
|
|
2.1
|
|
|
(2.8
|
)
|
|
(1.2
|
)
|
|
(0.6
|
)
|
|
1.5
|
|
|
—
|
|
||||||||
Net cash management
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||||||
Net new flows
|
|
(4.7
|
)
|
|
(2.5
|
)
|
|
9.2
|
|
|
(7.1
|
)
|
|
27.8
|
|
|
1.4
|
|
|
0.2
|
|
|
24.3
|
|
||||||||
Reinvested distributions
|
|
3.4
|
|
|
2.0
|
|
|
5.1
|
|
|
2.4
|
|
|
6.7
|
|
|
1.7
|
|
|
—
|
|
|
21.3
|
|
||||||||
Net flows
|
|
(1.3
|
)
|
|
(0.5
|
)
|
|
14.3
|
|
|
(4.7
|
)
|
|
34.5
|
|
|
3.1
|
|
|
0.2
|
|
|
45.6
|
|
||||||||
Distributions
|
|
(3.5
|
)
|
|
(2.2
|
)
|
|
(6.0
|
)
|
|
(3.1
|
)
|
|
(9.0
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
(26.2
|
)
|
||||||||
Acquisitions
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
||||||||
Appreciation (depreciation) and other
1
|
|
33.8
|
|
|
17.7
|
|
|
10.1
|
|
|
(3.0
|
)
|
|
6.6
|
|
|
0.9
|
|
|
—
|
|
|
66.1
|
|
||||||||
AUM at September 30, 2013
|
|
$
|
243.9
|
|
|
$
|
97.2
|
|
|
$
|
137.5
|
|
|
$
|
72.4
|
|
|
$
|
228.8
|
|
|
$
|
58.3
|
|
|
$
|
6.6
|
|
|
$
|
844.7
|
|
1
|
Includes impact of foreign exchange revaluation.
|
(in billions)
|
|
Equity
|
|
|
|
Fixed-Income
|
|
|
|
|
||||||||||||||||||||||
for the fiscal year ended
September 30, 2012 |
|
Global/International
|
|
United States
|
|
Hybrid
|
|
Tax-Free
|
|
Taxable
Global/International
|
|
Taxable
United States
|
|
Cash
Management
|
|
Total
|
||||||||||||||||
AUM at October 1, 2011
|
|
$
|
185.8
|
|
|
$
|
68.4
|
|
|
$
|
101.3
|
|
|
$
|
72.0
|
|
|
$
|
178.8
|
|
|
$
|
46.9
|
|
|
$
|
6.7
|
|
|
$
|
659.9
|
|
Long-term sales
|
|
40.8
|
|
|
16.1
|
|
|
19.3
|
|
|
13.5
|
|
|
64.0
|
|
|
17.1
|
|
|
—
|
|
|
170.8
|
|
||||||||
Long-term redemptions
|
|
(41.7
|
)
|
|
(18.7
|
)
|
|
(26.5
|
)
|
|
(8.9
|
)
|
|
(64.2
|
)
|
|
(12.7
|
)
|
|
—
|
|
|
(172.7
|
)
|
||||||||
Net exchanges
|
|
(1.5
|
)
|
|
0.2
|
|
|
0.5
|
|
|
0.3
|
|
|
(0.9
|
)
|
|
1.4
|
|
|
—
|
|
|
—
|
|
||||||||
Net cash management
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||||||
Net new flows
|
|
(2.4
|
)
|
|
(2.4
|
)
|
|
(6.7
|
)
|
|
4.9
|
|
|
(1.1
|
)
|
|
5.8
|
|
|
(0.4
|
)
|
|
(2.3
|
)
|
||||||||
Reinvested distributions
|
|
2.2
|
|
|
1.7
|
|
|
4.9
|
|
|
2.3
|
|
|
5.6
|
|
|
1.7
|
|
|
—
|
|
|
18.4
|
|
||||||||
Net flows
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
(1.8
|
)
|
|
7.2
|
|
|
4.5
|
|
|
7.5
|
|
|
(0.4
|
)
|
|
16.1
|
|
||||||||
Distributions
|
|
(2.4
|
)
|
|
(1.8
|
)
|
|
(5.7
|
)
|
|
(3.0
|
)
|
|
(7.5
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
(22.5
|
)
|
||||||||
Appreciation and other
1
|
|
31.7
|
|
|
16.3
|
|
|
16.3
|
|
|
7.0
|
|
|
20.6
|
|
|
4.4
|
|
|
0.1
|
|
|
96.4
|
|
||||||||
AUM at September 30, 2012
|
|
$
|
214.9
|
|
|
$
|
82.2
|
|
|
$
|
110.1
|
|
|
$
|
83.2
|
|
|
$
|
196.4
|
|
|
$
|
56.7
|
|
|
$
|
6.4
|
|
|
$
|
749.9
|
|
|
|
Benchmark Comparison
|
|
Peer Group Comparison
1
|
||||||||||||||||||||
|
|
% of AUM Exceeding Benchmark
|
|
% of AUM in Top Two Peer Group Quartiles
|
||||||||||||||||||||
as of September 30, 2014
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
29
|
%
|
|
60
|
%
|
|
46
|
%
|
|
59
|
%
|
|
42
|
%
|
|
60
|
%
|
|
44
|
%
|
|
65
|
%
|
United States
|
|
7
|
%
|
|
8
|
%
|
|
12
|
%
|
|
46
|
%
|
|
31
|
%
|
|
25
|
%
|
|
65
|
%
|
|
48
|
%
|
Total equity
|
|
22
|
%
|
|
43
|
%
|
|
34
|
%
|
|
55
|
%
|
|
39
|
%
|
|
48
|
%
|
|
51
|
%
|
|
59
|
%
|
Hybrid
|
|
81
|
%
|
|
83
|
%
|
|
82
|
%
|
|
85
|
%
|
|
92
|
%
|
|
95
|
%
|
|
96
|
%
|
|
98
|
%
|
Fixed-Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax-free
|
|
76
|
%
|
|
60
|
%
|
|
54
|
%
|
|
51
|
%
|
|
69
|
%
|
|
44
|
%
|
|
68
|
%
|
|
100
|
%
|
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
89
|
%
|
|
89
|
%
|
|
88
|
%
|
|
94
|
%
|
|
93
|
%
|
|
98
|
%
|
|
98
|
%
|
|
99
|
%
|
United States
|
|
71
|
%
|
|
78
|
%
|
|
60
|
%
|
|
56
|
%
|
|
45
|
%
|
|
65
|
%
|
|
60
|
%
|
|
60
|
%
|
Total fixed-income
|
|
83
|
%
|
|
81
|
%
|
|
76
|
%
|
|
77
|
%
|
|
80
|
%
|
|
80
|
%
|
|
85
|
%
|
|
92
|
%
|
1
|
The peer group rankings are sourced from Lipper, a Thomson Reuters Company, Morningstar or eVestment in each fund’s market and were based on an absolute ranking of returns. © 2014 Morningstar, Inc. All rights reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
|
(in millions)
|
|
|
|
|
|
|
|
2014
vs. 2013 |
|
2013
vs. 2012 |
||||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
|
||||||||||
Investment management fees
|
|
$
|
5,565.7
|
|
|
$
|
5,071.4
|
|
|
$
|
4,458.7
|
|
|
10
|
%
|
|
14
|
%
|
Sales and distribution fees
|
|
2,546.4
|
|
|
2,516.0
|
|
|
2,259.3
|
|
|
1
|
%
|
|
11
|
%
|
|||
Shareholder servicing fees
|
|
281.1
|
|
|
303.7
|
|
|
302.5
|
|
|
(7
|
)%
|
|
0
|
%
|
|||
Other, net
|
|
98.2
|
|
|
93.9
|
|
|
80.5
|
|
|
5
|
%
|
|
17
|
%
|
|||
Total Operating Revenues
|
|
$
|
8,491.4
|
|
|
$
|
7,985.0
|
|
|
$
|
7,101.0
|
|
|
6
|
%
|
|
12
|
%
|
(in basis points)
|
|
Industry Average
|
||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
Equity
|
|
|
|
|
|
|
Global/international
|
|
58
|
|
60
|
|
61
|
United States
|
|
41
|
|
44
|
|
45
|
Hybrid
|
|
53
|
|
39
|
|
39
|
Fixed-Income
|
|
|
|
|
|
|
Tax-free
|
|
35
|
|
36
|
|
37
|
Taxable
|
|
|
|
|
|
|
Global/international
|
|
55
|
|
57
|
|
58
|
United States
|
|
37
|
|
38
|
|
37
|
Cash Management
|
|
11
|
|
13
|
|
13
|
1
|
U.S. industry asset-weighted average management fee rates were calculated using information available from Lipper, a Thomson Reuters Company, as of September 30,
2014
,
2013
and
2012
and include all U.S.-registered open-end funds that reported expense data to Lipper as of the funds’ most recent annual report date, and for which expenses were equal to or greater than zero. As defined by Lipper, management fees include fees from providing advisory and fund administration services. The averages combine retail and institutional funds data and include all share classes and distribution channels, without exception. Variable annuity and fund-of-funds products are not included. The increase in average rates in the hybrid objective reflects the addition of alternative products to this category.
|
(in millions)
|
|
2014
|
|
2013
|
|
2012
|
|
2014
vs. 2013 |
|
2013
vs. 2012 |
||||||||
for the fiscal years ended September 30,
|
|
|
|
|
|
|||||||||||||
Sales, distribution and marketing
|
|
$
|
3,088.2
|
|
|
$
|
3,042.1
|
|
|
$
|
2,739.7
|
|
|
2
|
%
|
|
11
|
%
|
Compensation and benefits
|
|
1,467.9
|
|
|
1,384.5
|
|
|
1,255.5
|
|
|
6
|
%
|
|
10
|
%
|
|||
Information systems and technology
|
|
216.3
|
|
|
191.1
|
|
|
182.9
|
|
|
13
|
%
|
|
4
|
%
|
|||
Occupancy
|
|
137.7
|
|
|
134.2
|
|
|
129.9
|
|
|
3
|
%
|
|
3
|
%
|
|||
General, administrative and other
|
|
360.1
|
|
|
311.8
|
|
|
277.8
|
|
|
15
|
%
|
|
12
|
%
|
|||
Total Operating Expenses
|
|
$
|
5,270.2
|
|
|
$
|
5,063.7
|
|
|
$
|
4,585.8
|
|
|
4
|
%
|
|
10
|
%
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net carrying value at beginning of year
|
|
$
|
93.5
|
|
|
$
|
90.3
|
|
|
$
|
67.9
|
|
Additions, net of disposals
|
|
37.4
|
|
|
43.2
|
|
|
54.9
|
|
|||
Amortization
|
|
(45.4
|
)
|
|
(40.0
|
)
|
|
(32.5
|
)
|
|||
Net Carrying Value at End of Year
|
|
$
|
85.5
|
|
|
$
|
93.5
|
|
|
$
|
90.3
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Investment and other income, net
|
|
$
|
235.8
|
|
|
$
|
152.2
|
|
|
$
|
199.7
|
|
Interest expense
|
|
(47.4
|
)
|
|
(46.9
|
)
|
|
(36.7
|
)
|
|||
Other Income, Net
|
|
$
|
188.4
|
|
|
$
|
105.3
|
|
|
$
|
163.0
|
|
(in millions)
|
|
Total Portfolio
|
|
Percent of Total Portfolio
|
|
Trading Securities Included in Portfolio
|
|
Percent of Total Trading Securities
|
|
Assets of Consolidated SIPs and VIEs Included in Total Portfolio
|
|
Percent of Total
|
|||||||||
Cash and Cash Equivalents
|
|
$
|
7,596.0
|
|
|
62
|
%
|
|
$
|
—
|
|
|
0
|
%
|
|
$
|
119.2
|
|
|
5
|
%
|
Investment Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Global/international
|
|
535.5
|
|
|
4
|
%
|
|
—
|
|
|
0
|
%
|
|
481.4
|
|
|
21
|
%
|
|||
United States
|
|
9.9
|
|
|
0
|
%
|
|
—
|
|
|
0
|
%
|
|
—
|
|
|
0
|
%
|
|||
Total equity
|
|
545.4
|
|
|
4
|
%
|
|
—
|
|
|
0
|
%
|
|
481.4
|
|
|
21
|
%
|
|||
Hybrid
|
|
409.1
|
|
|
3
|
%
|
|
0.5
|
|
|
0
|
%
|
|
209.9
|
|
|
9
|
%
|
|||
Fixed-Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tax-free
|
|
11.4
|
|
|
0
|
%
|
|
—
|
|
|
0
|
%
|
|
—
|
|
|
0
|
%
|
|||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Global/international
|
|
992.6
|
|
|
8
|
%
|
|
82.2
|
|
|
6
|
%
|
|
653.2
|
|
|
29
|
%
|
|||
United States
|
|
2,035.2
|
|
|
17
|
%
|
|
1,194.8
|
|
|
94
|
%
|
|
817.6
|
|
|
36
|
%
|
|||
Total fixed-income
|
|
3,039.2
|
|
|
25
|
%
|
|
1,277.0
|
|
|
100
|
%
|
|
1,470.8
|
|
|
65
|
%
|
|||
Total Investment Securities
|
|
3,993.7
|
|
|
32
|
%
|
|
1,277.5
|
|
|
100
|
%
|
|
2,162.1
|
|
|
95
|
%
|
|||
Other Investments
|
|
684.5
|
|
|
6
|
%
|
|
—
|
|
|
0
|
%
|
|
—
|
|
|
0
|
%
|
|||
Total Cash and Cash Equivalents and Investments
|
|
$
|
12,274.2
|
|
|
100
|
%
|
|
$
|
1,277.5
|
|
|
100
|
%
|
|
$
|
2,281.3
|
|
|
100
|
%
|
(in millions)
|
|
Payments Due by Period
|
||||||||||||||||||
as of September 30, 2014
|
|
Total
|
|
Less than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal
|
|
$
|
1,198.2
|
|
|
$
|
250.0
|
|
|
$
|
299.0
|
|
|
$
|
—
|
|
|
$
|
649.2
|
|
Interest
|
|
184.5
|
|
|
36.5
|
|
|
57.4
|
|
|
49.2
|
|
|
41.4
|
|
|||||
Operating leases
|
|
187.4
|
|
|
47.2
|
|
|
62.5
|
|
|
35.6
|
|
|
42.1
|
|
|||||
Purchase obligations
1
|
|
133.4
|
|
|
81.2
|
|
|
41.9
|
|
|
6.5
|
|
|
3.8
|
|
|||||
Total Contractual Obligations
|
|
1,703.5
|
|
|
414.9
|
|
|
460.8
|
|
|
91.3
|
|
|
736.5
|
|
|||||
Committed capital contributions
2
|
|
35.7
|
|
|
35.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Contingent consideration liabilities
3
|
|
148.9
|
|
|
8.6
|
|
|
48.5
|
|
|
91.8
|
|
|
—
|
|
|||||
Total Contractual Obligations, Commitments and Contingent Liabilities
|
|
$
|
1,888.1
|
|
|
$
|
459.2
|
|
|
$
|
509.3
|
|
|
$
|
183.1
|
|
|
$
|
736.5
|
|
1
|
Purchase obligations include contractual amounts that will be due to purchase goods and services to be used in our operations and may be canceled at earlier times than those indicated under certain conditions that may include termination fees.
|
2
|
Committed capital contributions relate to discretionary commitments to invest in SIPs and other investment products. Generally, the timing of the funding of these commitments is unknown as they are callable on demand at any time prior to the expiration of the commitment periods.
|
3
|
Contingent consideration liabilities primarily relate to the Company’s commitment to acquire the remaining interests in K2.
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities.
|
|
|
Level 2
|
Observable inputs other than Level 1 quoted prices, such as non-binding quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable or corroborated by observable market data. Level 2 quoted prices are generally obtained from two independent third-party brokers or dealers, including prices derived from model-based valuation techniques for which the significant assumptions are observable in the market or corroborated by observable market data. Quoted prices are validated through price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of third-party vendors.
|
|
|
Level 3
|
Unobservable inputs that are supported by little or no market activity. These inputs require significant management judgment and reflect our estimation of assumptions that market participants would use in pricing the asset or liability.
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
||||||||
Quarter ended
|
|
December 31
|
|
March 31
|
|
June 30
|
|
September 30
|
||||||||
Fiscal year 2014
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
2,109.5
|
|
|
$
|
2,095.9
|
|
|
$
|
2,130.5
|
|
|
$
|
2,155.5
|
|
Operating income
|
|
813.1
|
|
|
786.0
|
|
|
786.8
|
|
|
835.3
|
|
||||
Net income attributable to Franklin Resources, Inc.
|
|
603.8
|
|
|
561.0
|
|
|
578.9
|
|
|
640.6
|
|
||||
Earnings per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.96
|
|
|
$
|
0.89
|
|
|
$
|
0.92
|
|
|
$
|
1.03
|
|
Diluted
|
|
0.96
|
|
|
0.89
|
|
|
0.92
|
|
|
1.02
|
|
||||
Dividends per share
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
Common stock price per share
|
|
|
|
|
|
|
|
|
||||||||
High
|
|
$
|
57.85
|
|
|
$
|
58.87
|
|
|
$
|
58.42
|
|
|
$
|
58.28
|
|
Low
|
|
49.49
|
|
|
49.92
|
|
|
51.00
|
|
|
52.65
|
|
||||
AUM
(in billions)
|
|
|
|
|
|
|
|
|
||||||||
Ending
|
|
$
|
879.1
|
|
|
$
|
886.9
|
|
|
$
|
920.5
|
|
|
$
|
898.0
|
|
Average
|
|
865.9
|
|
|
876.4
|
|
|
902.8
|
|
|
912.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Fiscal year 2013
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
1,901.8
|
|
|
$
|
2,013.6
|
|
|
$
|
2,084.8
|
|
|
$
|
1,984.8
|
|
Operating income
|
|
685.1
|
|
|
729.4
|
|
|
771.7
|
|
|
735.1
|
|
||||
Net income attributable to Franklin Resources, Inc.
|
|
516.1
|
|
|
572.8
|
|
|
552.3
|
|
|
509.0
|
|
||||
Earnings per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.81
|
|
|
$
|
0.90
|
|
|
$
|
0.87
|
|
|
$
|
0.80
|
|
Diluted
|
|
0.81
|
|
|
0.90
|
|
|
0.86
|
|
|
0.80
|
|
||||
Dividends per share
|
|
$
|
1.097
|
|
1
|
$
|
0.097
|
|
|
$
|
0.097
|
|
|
$
|
0.100
|
|
Common stock price per share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
High
|
|
$
|
44.64
|
|
|
$
|
50.35
|
|
|
$
|
56.54
|
|
|
$
|
54.36
|
|
Low
|
|
41.34
|
|
|
42.67
|
|
|
44.22
|
|
|
45.06
|
|
||||
AUM
(in billions)
|
|
|
|
|
|
|
|
|
||||||||
Ending
|
|
$
|
781.8
|
|
|
$
|
823.7
|
|
|
$
|
815.0
|
|
|
$
|
844.7
|
|
Average
|
|
763.6
|
|
|
807.3
|
|
|
833.2
|
|
|
827.8
|
|
1
|
Includes a special cash dividend of
$1.00
per share.
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
(in millions)
|
|
Carrying Value
|
|
Carrying
Value
Assuming a
10% Increase
|
|
Carrying
Value
Assuming a
10% Decrease
|
||||||
Investment securities, trading
|
|
$
|
1,277.5
|
|
|
$
|
1,405.3
|
|
|
$
|
1,149.8
|
|
Investment securities, available-for-sale
|
|
554.1
|
|
|
609.5
|
|
|
498.7
|
|
|||
Direct investments in consolidated VIEs and consolidated SIPs
|
|
446.1
|
|
|
490.7
|
|
|
401.5
|
|
|||
Total
|
|
$
|
2,277.7
|
|
|
$
|
2,505.5
|
|
|
$
|
2,050.0
|
|
Item 8.
|
Financial Statements and Supplementary Data.
|
CONTENTS
|
|
Page
|
|
|
63
|
|
|
|
64
|
|
|
Consolidated Financial Statements of Franklin Resources, Inc. and its consolidated subsidiaries:
|
|
|
|
|
65
|
|
|
|
66
|
|
|
|
67
|
|
|
|
69
|
|
|
|
71
|
|
|
|
73
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Operating Revenues
|
|
|
|
|
|
|
||||||
Investment management fees
|
|
$
|
5,565.7
|
|
|
$
|
5,071.4
|
|
|
$
|
4,458.7
|
|
Sales and distribution fees
|
|
2,546.4
|
|
|
2,516.0
|
|
|
2,259.3
|
|
|||
Shareholder servicing fees
|
|
281.1
|
|
|
303.7
|
|
|
302.5
|
|
|||
Other, net
|
|
98.2
|
|
|
93.9
|
|
|
80.5
|
|
|||
Total operating revenues
|
|
8,491.4
|
|
|
7,985.0
|
|
|
7,101.0
|
|
|||
Operating Expenses
|
|
|
|
|
|
|
||||||
Sales, distribution and marketing
|
|
3,088.2
|
|
|
3,042.1
|
|
|
2,739.7
|
|
|||
Compensation and benefits
|
|
1,467.9
|
|
|
1,384.5
|
|
|
1,255.5
|
|
|||
Information systems and technology
|
|
216.3
|
|
|
191.1
|
|
|
182.9
|
|
|||
Occupancy
|
|
137.7
|
|
|
134.2
|
|
|
129.9
|
|
|||
General, administrative and other
|
|
360.1
|
|
|
311.8
|
|
|
277.8
|
|
|||
Total operating expenses
|
|
5,270.2
|
|
|
5,063.7
|
|
|
4,585.8
|
|
|||
Operating Income
|
|
3,221.2
|
|
|
2,921.3
|
|
|
2,515.2
|
|
|||
Other Income (Expenses)
|
|
|
|
|
|
|
||||||
Investment and other income, net
|
|
235.8
|
|
|
152.2
|
|
|
199.7
|
|
|||
Interest expense
|
|
(47.4
|
)
|
|
(46.9
|
)
|
|
(36.7
|
)
|
|||
Other income, net
|
|
188.4
|
|
|
105.3
|
|
|
163.0
|
|
|||
Income before taxes
|
|
3,409.6
|
|
|
3,026.6
|
|
|
2,678.2
|
|
|||
Taxes on income
|
|
997.9
|
|
|
855.9
|
|
|
762.7
|
|
|||
Net income
|
|
2,411.7
|
|
|
2,170.7
|
|
|
1,915.5
|
|
|||
Less: Net income (loss) attributable to
|
|
|
|
|
|
|
||||||
Nonredeemable noncontrolling interests
|
|
6.8
|
|
|
16.9
|
|
|
(20.9
|
)
|
|||
Redeemable noncontrolling interests
|
|
20.6
|
|
|
3.6
|
|
|
5.0
|
|
|||
Net Income Attributable to Franklin Resources, Inc.
|
|
$
|
2,384.3
|
|
|
$
|
2,150.2
|
|
|
$
|
1,931.4
|
|
|
|
|
|
|
|
|
||||||
Earnings per Share
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
3.79
|
|
|
$
|
3.37
|
|
|
$
|
2.99
|
|
Diluted
|
|
3.79
|
|
|
3.37
|
|
|
2.98
|
|
|||
Dividends per Share
|
|
$
|
0.48
|
|
|
$
|
1.39
|
|
|
$
|
1.03
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net Income
|
|
$
|
2,411.7
|
|
|
$
|
2,170.7
|
|
|
$
|
1,915.5
|
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on investments, net of tax
|
|
(40.9
|
)
|
|
(8.1
|
)
|
|
22.2
|
|
|||
Currency translation adjustments, net of tax
|
|
(80.4
|
)
|
|
(49.5
|
)
|
|
0.3
|
|
|||
Net unrealized gains (losses) on defined benefit plans, net of tax
|
|
(2.5
|
)
|
|
1.7
|
|
|
(0.9
|
)
|
|||
Total other comprehensive income (loss)
|
|
(123.8
|
)
|
|
(55.9
|
)
|
|
21.6
|
|
|||
Total comprehensive income
|
|
2,287.9
|
|
|
2,114.8
|
|
|
1,937.1
|
|
|||
Less: Comprehensive income (loss) attributable to
|
|
|
|
|
|
|
||||||
Nonredeemable noncontrolling interests
|
|
6.8
|
|
|
16.9
|
|
|
(20.9
|
)
|
|||
Redeemable noncontrolling interests
|
|
20.6
|
|
|
3.6
|
|
|
5.0
|
|
|||
Comprehensive Income Attributable to Franklin Resources, Inc.
|
|
$
|
2,260.5
|
|
|
$
|
2,094.3
|
|
|
$
|
1,953.0
|
|
(in millions)
|
|
|
|
|
||||
as of September 30,
|
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
7,476.8
|
|
|
$
|
6,186.0
|
|
Receivables
|
|
950.0
|
|
|
1,038.9
|
|
||
Investments (including $1,845.6 and $1,892.7 at fair value at September 30, 2014 and 2013)
|
|
2,516.1
|
|
|
2,439.2
|
|
||
Loans receivable, net
|
|
2.5
|
|
|
229.7
|
|
||
Assets of consolidated sponsored investment products
|
|
|
|
|
||||
Cash and cash equivalents
|
|
44.9
|
|
|
93.1
|
|
||
Investments, at fair value
|
|
1,373.7
|
|
|
1,203.2
|
|
||
Assets of consolidated variable interest entities
|
|
|
|
|
||||
Cash and cash equivalents
|
|
74.3
|
|
|
44.0
|
|
||
Investments, at fair value
|
|
788.4
|
|
|
941.1
|
|
||
Deferred taxes, net
|
|
98.1
|
|
|
112.4
|
|
||
Property and equipment, net
|
|
530.7
|
|
|
564.1
|
|
||
Goodwill and other intangible assets, net
|
|
2,325.9
|
|
|
2,359.2
|
|
||
Other
|
|
175.7
|
|
|
179.4
|
|
||
Total Assets
|
|
$
|
16,357.1
|
|
|
$
|
15,390.3
|
|
Liabilities
|
|
|
|
|
||||
Compensation and benefits
|
|
$
|
465.1
|
|
|
$
|
444.5
|
|
Accounts payable and accrued expenses
|
|
314.4
|
|
|
273.7
|
|
||
Commissions
|
|
440.3
|
|
|
437.7
|
|
||
Deposits
|
|
0.4
|
|
|
586.8
|
|
||
Debt
|
|
1,198.2
|
|
|
1,197.7
|
|
||
Debt of consolidated sponsored investment products
|
|
122.3
|
|
|
108.9
|
|
||
Debt of consolidated variable interest entities, at fair value
|
|
828.5
|
|
|
988.5
|
|
||
Deferred taxes
|
|
259.3
|
|
|
272.5
|
|
||
Other
|
|
281.4
|
|
|
272.7
|
|
||
Total liabilities
|
|
3,909.9
|
|
|
4,583.0
|
|
||
Commitments and Contingencies (Note 14)
|
|
|
|
|
||||
Redeemable Noncontrolling Interests
|
|
234.8
|
|
|
121.8
|
|
(in millions, except share and per share data)
|
|
|
|
|
||||
as of September 30,
|
|
2014
|
|
2013
|
||||
Stockholders’ Equity
|
|
|
|
|
||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 622,893,090 and 630,917,532 shares issued and outstanding at September 30, 2014 and 2013
|
|
62.3
|
|
|
63.1
|
|
||
Retained earnings
|
|
11,625.6
|
|
|
9,991.2
|
|
||
Appropriated retained earnings of consolidated variable interest entities
|
|
13.9
|
|
|
12.7
|
|
||
Accumulated other comprehensive income (loss)
|
|
(117.7
|
)
|
|
6.1
|
|
||
Total Franklin Resources, Inc. stockholders’ equity
|
|
11,584.1
|
|
|
10,073.1
|
|
||
Nonredeemable noncontrolling interests
|
|
628.3
|
|
|
612.4
|
|
||
Total stockholders’ equity
|
|
12,212.4
|
|
|
10,685.5
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity
|
|
$
|
16,357.1
|
|
|
$
|
15,390.3
|
|
|
|
Franklin Resources, Inc.
|
|
Nonredeemable
Noncontrolling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||||
(in millions)
|
Common Stock
|
|
Capital
in Excess
of Par
Value
|
|
Retained
Earnings
|
|
Appropriated
Retained
Earnings of
Consolidated
Variable
Interest Entities
|
|
Accumulated
Other
Compre-
hensive
Income (Loss)
|
|
Stockholders’
Equity
|
||||||||||||||||||||||||
as of and for the fiscal years ended
September 30, 2014, 2013 and 2012
|
Shares
|
|
Amount
|
||||||||||||||||||||||||||||||||
Balance at October 1, 2011
|
|
653.1
|
|
|
$
|
65.3
|
|
|
$
|
—
|
|
|
$
|
8,400.0
|
|
|
$
|
19.0
|
|
|
$
|
40.4
|
|
|
$
|
8,524.7
|
|
|
$
|
579.2
|
|
|
$
|
9,103.9
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
1,931.4
|
|
|
|
|
|
|
|
1,931.4
|
|
|
(20.9
|
)
|
|
1,910.5
|
|
|||||||||
Net income reclassified to appropriated retained earnings
|
|
|
|
|
|
|
|
|
|
20.0
|
|
|
|
|
20.0
|
|
|
(20.0
|
)
|
|
|
||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.6
|
|
|
21.6
|
|
|
|
|
|
21.6
|
|
|||||||||
Cash dividends on common stock
|
|
|
|
|
|
|
|
(666.7
|
)
|
|
|
|
|
|
|
(666.7
|
)
|
|
|
|
|
(666.7
|
)
|
||||||||||||
Repurchase of common stock
|
|
(22.5
|
)
|
|
(2.2
|
)
|
|
(172.4
|
)
|
|
(622.8
|
)
|
|
|
|
|
|
|
(797.4
|
)
|
|
|
|
|
(797.4
|
)
|
|||||||||
Issuance of common stock
|
|
6.0
|
|
|
0.6
|
|
|
138.6
|
|
|
|
|
|
|
|
|
|
|
139.2
|
|
|
|
|
|
139.2
|
|
|||||||||
Excess tax benefit from stock-based compensation
|
|
|
|
|
|
|
|
22.0
|
|
|
|
|
|
|
|
|
|
|
22.0
|
|
|
|
|
|
22.0
|
|
|||||||||
Stock-based compensation
|
|
|
|
|
|
|
|
11.8
|
|
|
|
|
|
|
|
|
|
|
11.8
|
|
|
|
|
|
11.8
|
|
|||||||||
Nonredeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138.3
|
|
|
138.3
|
|
|||||||||
Net deconsolidation of sponsored investment products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(117.4
|
)
|
|
(117.4
|
)
|
|||||||||
Consolidation of variable interest entity
|
|
|
|
|
|
|
|
|
|
|
|
|
(5.3
|
)
|
|
|
|
|
(5.3
|
)
|
|
|
|
|
(5.3
|
)
|
|||||||||
Balance at September 30, 2012
|
|
636.6
|
|
|
$
|
63.7
|
|
|
$
|
—
|
|
|
$
|
9,041.9
|
|
|
$
|
33.7
|
|
|
$
|
62.0
|
|
|
$
|
9,201.3
|
|
|
$
|
559.2
|
|
|
$
|
9,760.5
|
|
Net income
|
|
|
|
|
|
|
|
2,150.2
|
|
|
|
|
|
|
2,150.2
|
|
|
16.9
|
|
|
2,167.1
|
|
|||||||||||||
Net loss reclassified to appropriated retained earnings
|
|
|
|
|
|
|
|
|
|
(20.1
|
)
|
|
|
|
(20.1
|
)
|
|
20.1
|
|
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
(55.9
|
)
|
|
(55.9
|
)
|
|
|
|
(55.9
|
)
|
||||||||||||||
Cash dividends on common stock
|
|
|
|
|
|
|
|
(888.7
|
)
|
|
|
|
|
|
(888.7
|
)
|
|
|
|
(888.7
|
)
|
||||||||||||||
Repurchase of common stock
|
|
(10.5
|
)
|
|
(1.1
|
)
|
|
(177.7
|
)
|
|
(312.2
|
)
|
|
|
|
|
|
(491.0
|
)
|
|
|
|
(491.0
|
)
|
|||||||||||
Issuance of common stock
|
|
4.8
|
|
|
0.5
|
|
|
147.0
|
|
|
|
|
|
|
|
|
147.5
|
|
|
|
|
147.5
|
|
||||||||||||
Excess tax benefit from stock-based compensation
|
|
|
|
|
|
|
24.4
|
|
|
|
|
|
|
|
|
|
|
24.4
|
|
|
|
|
|
24.4
|
|
|
|
Franklin Resources, Inc.
|
|
Nonredeemable
Noncontrolling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||||
(in millions)
|
|
Common Stock
|
|
Capital
in Excess
of Par
Value
|
|
Retained
Earnings
|
|
Appropriated
Retained
Earnings of
Consolidated
Variable
Interest Entities
|
|
Accumulated
Other
Compre-
hensive
Income (Loss)
|
|
Stockholders’
Equity
|
|||||||||||||||||||||||
as of and for the fiscal years ended
September 30, 2014, 2013 and 2012
|
|
Shares
|
|
Amount
|
|||||||||||||||||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
6.3
|
|
|
|
|
|
6.3
|
|
|||||||||||
Nonredeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63.7
|
|
|
63.7
|
|
|||||||||||||||
Net consolidation of sponsored investment products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
4.1
|
|
|||||||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.4
|
|
|
5.4
|
|
|||||||||||||||
Deconsolidation of variable interest entity
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
|
|
|
|
(0.9
|
)
|
|
|
|
(0.9
|
)
|
||||||||||
Reclassification to redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(57.0
|
)
|
|
(57.0
|
)
|
|||||||||||||||
Balance at September 30, 2013
|
|
630.9
|
|
|
$
|
63.1
|
|
|
$
|
—
|
|
|
$
|
9,991.2
|
|
|
$
|
12.7
|
|
|
$
|
6.1
|
|
|
$
|
10,073.1
|
|
|
$
|
612.4
|
|
|
$
|
10,685.5
|
|
Net income
|
|
|
|
|
|
|
|
2,384.3
|
|
|
|
|
|
|
2,384.3
|
|
|
6.8
|
|
|
2,391.1
|
|
|||||||||||||
Net income reclassified to appropriated retained earnings
|
|
|
|
|
|
|
|
|
|
1.2
|
|
|
|
|
1.2
|
|
|
(1.2
|
)
|
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
(123.8
|
)
|
|
(123.8
|
)
|
|
|
|
(123.8
|
)
|
||||||||||||||
Cash dividends on common stock
|
|
|
|
|
|
|
|
(301.7
|
)
|
|
|
|
|
|
(301.7
|
)
|
|
|
|
(301.7
|
)
|
||||||||||||||
Repurchase of common stock
|
|
(11.5
|
)
|
|
(1.1
|
)
|
|
(172.9
|
)
|
|
(448.2
|
)
|
|
|
|
|
|
(622.2
|
)
|
|
|
|
(622.2
|
)
|
|||||||||||
Issuance of common stock
|
|
3.5
|
|
|
0.3
|
|
|
148.9
|
|
|
|
|
|
|
|
|
149.2
|
|
|
|
|
149.2
|
|
||||||||||||
Excess tax benefit from stock-based compensation
|
|
|
|
|
|
13.3
|
|
|
|
|
|
|
|
|
13.3
|
|
|
|
|
13.3
|
|
||||||||||||||
Stock-based compensation
|
|
|
|
|
|
10.7
|
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
10.7
|
|
||||||||||||||
Nonredeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
10.3
|
|
|||||||||||||||
Balance at September 30, 2014
|
|
622.9
|
|
|
$
|
62.3
|
|
|
$
|
—
|
|
|
$
|
11,625.6
|
|
|
$
|
13.9
|
|
|
$
|
(117.7
|
)
|
|
$
|
11,584.1
|
|
|
$
|
628.3
|
|
|
$
|
12,212.4
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net Income
|
|
$
|
2,411.7
|
|
|
$
|
2,170.7
|
|
|
$
|
1,915.5
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
||||
Amortization of deferred sales commissions
|
|
127.8
|
|
|
138.0
|
|
|
129.9
|
|
|||
Depreciation and other amortization
|
|
94.6
|
|
|
93.5
|
|
|
82.1
|
|
|||
Stock-based compensation
|
|
127.7
|
|
|
113.4
|
|
|
101.3
|
|
|||
Excess tax benefit from stock-based compensation
|
|
(12.2
|
)
|
|
(20.3
|
)
|
|
(19.7
|
)
|
|||
Gains on sale of assets
|
|
(59.7
|
)
|
|
(51.2
|
)
|
|
(34.6
|
)
|
|||
Income from investments in equity method investees
|
|
(68.1
|
)
|
|
(74.0
|
)
|
|
(68.6
|
)
|
|||
Net (gains) losses on other investments of consolidated sponsored investment products
|
|
(16.9
|
)
|
|
(29.4
|
)
|
|
16.5
|
|
|||
Net (gains) losses of consolidated variable interest entities
|
|
(6.1
|
)
|
|
17.1
|
|
|
(23.9
|
)
|
|||
Other
|
|
6.1
|
|
|
4.1
|
|
|
31.9
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Increase in receivables, prepaid expenses and other
|
|
(113.7
|
)
|
|
(268.1
|
)
|
|
(222.8
|
)
|
|||
Increase in trading securities, net
|
|
(80.2
|
)
|
|
(65.6
|
)
|
|
(577.8
|
)
|
|||
Increase in trading securities of consolidated sponsored investment products, net
|
|
(482.9
|
)
|
|
(145.9
|
)
|
|
(203.0
|
)
|
|||
Originations of loans held for sale
|
|
(38.3
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of loans originated for resale
|
|
38.4
|
|
|
—
|
|
|
—
|
|
|||
Increase (decrease) in accrued compensation and benefits
|
|
24.3
|
|
|
45.9
|
|
|
(2.6
|
)
|
|||
Increase in commissions payable
|
|
2.6
|
|
|
53.8
|
|
|
14.4
|
|
|||
Increase (decrease) in income taxes payable
|
|
15.8
|
|
|
50.1
|
|
|
(74.9
|
)
|
|||
Increase in other liabilities
|
|
167.1
|
|
|
3.6
|
|
|
2.5
|
|
|||
Net cash provided by operating activities
|
|
2,138.0
|
|
|
2,035.7
|
|
|
1,066.2
|
|
|||
Purchase of investments
|
|
(303.2
|
)
|
|
(315.6
|
)
|
|
(247.2
|
)
|
|||
Liquidation of investments
|
|
583.9
|
|
|
588.8
|
|
|
831.9
|
|
|||
Purchase of investments by consolidated sponsored investment products
|
|
(324.2
|
)
|
|
(248.4
|
)
|
|
(188.5
|
)
|
|||
Liquidation of investments by consolidated sponsored investment products
|
|
181.0
|
|
|
231.4
|
|
|
55.9
|
|
|||
Purchase of investments by consolidated variable interest entities
|
|
(259.4
|
)
|
|
(685.9
|
)
|
|
(417.5
|
)
|
|||
Liquidation of investments by consolidated variable interest entities
|
|
488.9
|
|
|
706.3
|
|
|
520.1
|
|
|||
Decrease (increase) in loans receivable, net
|
|
38.0
|
|
|
(16.8
|
)
|
|
26.0
|
|
|||
Decrease in loans transferred to held for sale
|
|
8.2
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of loans transferred to held for sale
|
|
181.3
|
|
|
41.1
|
|
|
141.8
|
|
|||
Decrease in loans receivable held by consolidated variable interest entities, net
|
|
—
|
|
|
—
|
|
|
59.7
|
|
|||
Additions of property and equipment, net
|
|
(53.1
|
)
|
|
(62.2
|
)
|
|
(78.4
|
)
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Acquisitions of subsidiaries, net of cash acquired
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
$
|
—
|
|
Cash and cash equivalents recognized due to consolidation of variable interest entity
|
|
—
|
|
|
—
|
|
|
169.6
|
|
|||
Decrease in cash and cash equivalents due to net deconsolidation of sponsored investment products
|
|
(150.8
|
)
|
|
(6.6
|
)
|
|
—
|
|
|||
Net cash provided by investing activities
|
|
390.6
|
|
|
232.9
|
|
|
873.4
|
|
|||
Decrease in deposits
|
|
(587.5
|
)
|
|
(84.9
|
)
|
|
(218.5
|
)
|
|||
Issuance of common stock
|
|
32.6
|
|
|
41.3
|
|
|
49.1
|
|
|||
Dividends paid on common stock
|
|
(290.4
|
)
|
|
(882.7
|
)
|
|
(663.0
|
)
|
|||
Repurchase of common stock
|
|
(622.2
|
)
|
|
(491.0
|
)
|
|
(797.4
|
)
|
|||
Excess tax benefit from stock-based compensation
|
|
12.2
|
|
|
20.3
|
|
|
19.7
|
|
|||
Decrease in commercial paper, net
|
|
—
|
|
|
—
|
|
|
(30.0
|
)
|
|||
Proceeds from issuance of debt
|
|
—
|
|
|
—
|
|
|
592.3
|
|
|||
Payments on debt
|
|
—
|
|
|
(545.4
|
)
|
|
—
|
|
|||
Proceeds from issuance of debt by consolidated sponsored investment products
|
|
793.6
|
|
|
617.8
|
|
|
122.6
|
|
|||
Payments on debt by consolidated sponsored investment products
|
|
(779.3
|
)
|
|
(620.6
|
)
|
|
(144.7
|
)
|
|||
Payments on debt by consolidated variable interest entities
|
|
(194.3
|
)
|
|
(195.7
|
)
|
|
(227.1
|
)
|
|||
Payments on contingent consideration liability
|
|
(6.3
|
)
|
|
(1.1
|
)
|
|
—
|
|
|||
Noncontrolling interests
|
|
446.3
|
|
|
123.9
|
|
|
212.1
|
|
|||
Net cash used in financing activities
|
|
(1,195.3
|
)
|
|
(2,018.1
|
)
|
|
(1,084.9
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(60.4
|
)
|
|
21.2
|
|
|
(1.9
|
)
|
|||
Increase in cash and cash equivalents
|
|
1,272.9
|
|
|
271.7
|
|
|
852.8
|
|
|||
Cash and cash equivalents, beginning of year
|
|
6,323.1
|
|
|
6,051.4
|
|
|
5,198.6
|
|
|||
Cash and Cash Equivalents, End of Year
|
|
$
|
7,596.0
|
|
|
$
|
6,323.1
|
|
|
$
|
6,051.4
|
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Non-Cash Activities
|
|
|
|
|
|
|
||||||
Increase in liabilities, net related to consolidation of variable interest entities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(174.9
|
)
|
Contingent consideration liabilities recognized due to acquisitions
|
|
—
|
|
|
93.6
|
|
|
—
|
|
|||
Decrease in noncontrolling interests due to net deconsolidation of sponsored investment products
|
|
—
|
|
|
(11.0
|
)
|
|
(188.1
|
)
|
|||
Increase in noncontrolling interests due to acquisition
|
|
—
|
|
|
38.2
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
||||||
Cash paid for income taxes
|
|
$
|
979.3
|
|
|
$
|
825.9
|
|
|
$
|
819.8
|
|
Cash paid for interest
|
|
40.2
|
|
|
47.9
|
|
|
42.8
|
|
|||
Cash paid for interest by consolidated variable interest entities and consolidated sponsored investment products
|
|
43.6
|
|
|
54.1
|
|
|
50.5
|
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities.
|
|
|
Level 2
|
Observable inputs other than Level 1 quoted prices, such as non-binding quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable or corroborated by observable market data. Level 2 quoted prices are generally obtained from two independent third-party brokers or dealers, including prices derived from model-based valuation techniques for which the significant assumptions are observable in the market or corroborated by observable market data. Quoted prices are validated through price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of third-party vendors.
|
|
|
Level 3
|
Unobservable inputs that are supported by little or no market activity. These inputs require significant management judgment and reflect the Company's estimation of assumptions that market participants would use in pricing the asset or liability.
|
(in millions)
|
|
Estimated
Fair Value
|
||
As of November 1, 2012
|
|
|||
Cash, including cash invested
|
|
$
|
191.6
|
|
Investments of consolidated sponsored investment products
|
|
31.1
|
|
|
Definite-lived intangible assets
|
|
85.0
|
|
|
Goodwill
|
|
174.1
|
|
|
Other assets
|
|
28.0
|
|
|
Debt
|
|
(176.5
|
)
|
|
Other liabilities
|
|
(21.6
|
)
|
|
Noncontrolling interests
|
|
(38.2
|
)
|
|
Total Identifiable Net Assets
|
|
$
|
273.5
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net Income Attributable to Franklin Resources, Inc.
|
|
$
|
2,384.3
|
|
|
$
|
2,150.2
|
|
|
$
|
1,931.4
|
|
Less: Allocation of earnings to participating nonvested stock and stock unit awards
|
|
14.3
|
|
|
13.9
|
|
|
11.7
|
|
|||
Net Income Available to Common Stockholders
|
|
$
|
2,370.0
|
|
|
$
|
2,136.3
|
|
|
$
|
1,919.7
|
|
|
|
|
|
|
|
|
||||||
Weighted-average shares outstanding – basic
|
|
624.8
|
|
|
633.1
|
|
|
641.4
|
|
|||
Effect of non-participating nonvested stock unit awards and dilutive common stock options
|
|
0.4
|
|
|
1.0
|
|
|
1.9
|
|
|||
Weighted-Average Shares Outstanding – Diluted
|
|
625.2
|
|
|
634.1
|
|
|
643.3
|
|
|||
|
|
|
|
|
|
|
||||||
Earnings per Share
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
3.79
|
|
|
$
|
3.37
|
|
|
$
|
2.99
|
|
Diluted
|
|
3.79
|
|
|
3.37
|
|
|
2.98
|
|
1
|
Consist of U.S. government-sponsored enterprise obligations.
|
(in millions)
|
|
|
|
Gross Unrealized
|
|
|
||||||||||
as of September 30, 2014
|
Cost Basis
|
|
Gains
|
|
Losses
|
|
Fair Value
|
|||||||||
SIPs
|
|
$
|
477.0
|
|
|
$
|
43.5
|
|
|
$
|
(2.9
|
)
|
|
$
|
517.6
|
|
Securities of U.S. states and political subdivisions
|
|
11.0
|
|
|
0.3
|
|
|
—
|
|
|
11.3
|
|
||||
Securities of the U.S. Treasury and federal agencies
|
|
0.7
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Mortgage-backed securities – agency residential
|
|
18.0
|
|
|
—
|
|
|
(0.1
|
)
|
|
17.9
|
|
||||
Other equity securities
|
|
6.3
|
|
|
0.3
|
|
|
—
|
|
|
6.6
|
|
||||
Total
|
|
$
|
513.0
|
|
|
$
|
44.1
|
|
|
$
|
(3.0
|
)
|
|
$
|
554.1
|
|
(in millions)
|
|
|
|
Gross Unrealized
|
|
|
||||||||||
as of September 30, 2013
|
Cost Basis
|
|
Gains
|
|
Losses
|
|
Fair Value
|
|||||||||
SIPs
|
|
$
|
465.4
|
|
|
$
|
71.7
|
|
|
$
|
(2.5
|
)
|
|
$
|
534.6
|
|
Securities of U.S. states and political subdivisions
|
|
22.3
|
|
|
0.8
|
|
|
—
|
|
|
23.1
|
|
||||
Securities of the U.S. Treasury and federal agencies
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
||||
Mortgage-backed securities – agency residential
|
|
108.9
|
|
|
2.0
|
|
|
—
|
|
|
110.9
|
|
||||
Other equity securities
|
|
10.9
|
|
|
0.4
|
|
|
—
|
|
|
11.3
|
|
||||
Total
|
|
$
|
609.8
|
|
|
$
|
74.9
|
|
|
$
|
(2.5
|
)
|
|
$
|
682.2
|
|
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
(in millions)
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|||||||||||||
as of September 30, 2014
|
|
|
|
|
|
|||||||||||||||||||
SIPs
|
|
$
|
156.4
|
|
|
$
|
(2.7
|
)
|
|
$
|
1.5
|
|
|
$
|
(0.2
|
)
|
|
$
|
157.9
|
|
|
$
|
(2.9
|
)
|
Mortgage-backed securities – agency residential
|
|
4.0
|
|
|
—
|
|
|
11.6
|
|
|
(0.1
|
)
|
|
15.6
|
|
|
(0.1
|
)
|
||||||
Total
|
|
$
|
160.4
|
|
|
$
|
(2.7
|
)
|
|
$
|
13.1
|
|
|
$
|
(0.3
|
)
|
|
$
|
173.5
|
|
|
$
|
(3.0
|
)
|
|
|
Less Than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
(in millions)
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|||||||||||||
as of September 30, 2013
|
|
|
|
|
|
|||||||||||||||||||
SIPs
|
|
$
|
50.3
|
|
|
$
|
(2.4
|
)
|
|
$
|
1.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
51.7
|
|
|
$
|
(2.5
|
)
|
(in millions)
|
|
Cost Basis
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
4.5
|
|
|
$
|
4.5
|
|
Due after one year through five years
|
|
7.2
|
|
|
7.5
|
|
||
Total
|
|
$
|
11.7
|
|
|
$
|
12.0
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
as of September 30, 2013
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities, trading
|
|
$
|
1,121.5
|
|
|
$
|
75.2
|
|
|
$
|
—
|
|
|
$
|
1,196.7
|
|
Investment securities, available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
SIPs
|
|
534.6
|
|
|
—
|
|
|
—
|
|
|
534.6
|
|
||||
Securities of U.S. states and political subdivisions
|
|
—
|
|
|
23.1
|
|
|
—
|
|
|
23.1
|
|
||||
Securities of the U.S. Treasury and federal agencies
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
||||
Mortgage-backed securities – agency residential
|
|
—
|
|
|
110.9
|
|
|
—
|
|
|
110.9
|
|
||||
Other equity securities
|
|
11.3
|
|
|
—
|
|
|
—
|
|
|
11.3
|
|
||||
Life settlement contracts
|
|
—
|
|
|
—
|
|
|
13.8
|
|
|
13.8
|
|
||||
Total Assets Measured at Fair Value
|
|
$
|
1,667.4
|
|
|
$
|
211.5
|
|
|
$
|
13.8
|
|
|
$
|
1,892.7
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97.7
|
|
|
$
|
97.7
|
|
|
|
2014
|
|
2013
|
||||||||||||
(in millions)
|
|
Investments
|
|
Contingent Consideration Liabilities
|
|
Investments
|
|
Contingent Consideration Liabilities
|
||||||||
for the fiscal years ended September 30,
|
|
|
|
|||||||||||||
Balance at beginning of year
|
|
$
|
13.8
|
|
|
$
|
(97.7
|
)
|
|
$
|
14.8
|
|
|
$
|
—
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93.6
|
)
|
||||
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
|
|
||||||||
Included in investment and other income, net
|
|
2.9
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Included in general, administrative and other expense
|
|
—
|
|
|
(6.7
|
)
|
|
—
|
|
|
(7.7
|
)
|
||||
Other
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.5
|
)
|
||||
Purchases
|
|
0.1
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
||||
Sales
|
|
(0.7
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
||||
Settlements
|
|
(2.1
|
)
|
|
6.3
|
|
|
(2.4
|
)
|
|
4.1
|
|
||||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||
Balance at End of Year
|
|
$
|
14.0
|
|
|
$
|
(98.5
|
)
|
|
$
|
13.8
|
|
|
$
|
(97.7
|
)
|
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of year
|
|
$
|
1.2
|
|
|
$
|
(7.1
|
)
|
|
$
|
1.3
|
|
|
$
|
(8.2
|
)
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2013
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average)
|
||
Life settlement contracts
|
|
$
|
13.8
|
|
|
Discounted cash flow
|
|
Life expectancy
|
|
25–160 months (76)
|
Discount rate
|
|
3.3%–21.7% (11.7%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Contingent consideration liabilities
|
|
97.7
|
|
|
Discounted cash flow
|
|
AUM growth rate
|
|
6.0%–25.0% (14.6%)
|
|
EBITDA margin
|
|
26.4% - 38.9% (34.4%)
|
||||||||
Discount rate
|
|
14.0%
|
(in millions)
|
|
|
|
2014
|
|
2013
|
||||||||||||
as of September 30,
|
|
Fair Value Level
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
7,476.8
|
|
|
$
|
7,476.8
|
|
|
$
|
6,186.0
|
|
|
$
|
6,186.0
|
|
Other investments
1
|
|
2 or 3
|
|
75.6
|
|
|
87.8
|
|
|
61.1
|
|
|
69.2
|
|
||||
Loans receivable, net
|
|
2
|
|
2.5
|
|
|
2.7
|
|
|
229.7
|
|
|
230.1
|
|
||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
2
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
586.8
|
|
|
$
|
587.2
|
|
Debt
|
|
2
|
|
1,198.2
|
|
|
1,235.8
|
|
|
1,197.7
|
|
|
1,221.5
|
|
(in millions)
|
|
|
|
|
||||
as of September 30,
|
|
2014
|
|
2013
|
||||
Commercial loans
|
|
$
|
—
|
|
|
$
|
77.0
|
|
Real estate mortgage loans
|
|
2.4
|
|
|
2.6
|
|
||
Installment loans
|
|
0.3
|
|
|
143.3
|
|
||
Other
|
|
—
|
|
|
7.0
|
|
||
Total loans receivable
|
|
2.7
|
|
|
229.9
|
|
||
Less: allowance for loan losses
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Loans Receivable, Net
|
|
$
|
2.5
|
|
|
$
|
229.7
|
|
(in millions)
|
|
|
|
|
|
Useful Lives
In Years
|
||||
as of September 30,
|
|
2014
|
|
2013
|
|
|||||
Furniture, software and equipment
|
|
$
|
693.5
|
|
|
$
|
710.1
|
|
|
3 – 10
|
Premises and leasehold improvements
|
|
562.3
|
|
|
565.7
|
|
|
5 – 35
|
||
Land
|
|
74.3
|
|
|
74.4
|
|
|
N/A
|
||
Total cost
|
|
1,330.1
|
|
|
1,350.2
|
|
|
|
||
Less: accumulated depreciation and amortization
|
|
(799.4
|
)
|
|
(786.1
|
)
|
|
|
||
Property and Equipment, Net
|
|
$
|
530.7
|
|
|
$
|
564.1
|
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(in millions)
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||||||||
as of September 30,
|
|
|
|
|
|
|
||||||||||||||||||
Customer base
|
|
$
|
165.6
|
|
|
$
|
(152.7
|
)
|
|
$
|
12.9
|
|
|
$
|
166.2
|
|
|
$
|
(144.5
|
)
|
|
$
|
21.7
|
|
Management contracts and other
|
|
133.2
|
|
|
(58.6
|
)
|
|
74.6
|
|
|
134.2
|
|
|
(46.8
|
)
|
|
87.4
|
|
||||||
Total
|
|
$
|
298.8
|
|
|
$
|
(211.3
|
)
|
|
$
|
87.5
|
|
|
$
|
300.4
|
|
|
$
|
(191.3
|
)
|
|
$
|
109.1
|
|
(in millions)
|
|
|
|
|
||||
as of September 30,
|
|
2014
|
|
2013
|
||||
Non-interest-bearing demand deposits
|
|
$
|
0.4
|
|
|
$
|
108.3
|
|
Interest-bearing deposits
|
|
|
|
|
||||
Demand deposits
|
|
—
|
|
|
11.3
|
|
||
Savings deposits
|
|
—
|
|
|
447.6
|
|
||
Time deposits
|
|
—
|
|
|
19.6
|
|
||
Total interest-bearing deposits
|
|
—
|
|
|
478.5
|
|
||
Total
|
|
$
|
0.4
|
|
|
$
|
586.8
|
|
(in millions)
|
|
2014
|
|
2013
|
|
Effective
Interest Rate
|
|||||
as of September 30,
|
|
|
|
||||||||
$250 million 3.125% notes due May 2015
|
|
$
|
250.0
|
|
|
$
|
249.9
|
|
|
3.32
|
%
|
$300 million 1.375% notes due September 2017
|
|
299.0
|
|
|
298.7
|
|
|
1.66
|
%
|
||
$350 million 4.625% notes due May 2020
|
|
349.8
|
|
|
349.7
|
|
|
4.74
|
%
|
||
$300 million 2.800% notes due September 2022
|
|
299.4
|
|
|
299.4
|
|
|
2.93
|
%
|
||
Total
|
|
$
|
1,198.2
|
|
|
$
|
1,197.7
|
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(in millions)
|
|
Consolidated
|
|
|
|
Consolidated
|
|
|
||||||||||||||||
as of September 30,
|
|
SIPs
|
|
VIEs
|
|
Total
|
|
SIPs
|
|
VIEs
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
$
|
44.9
|
|
|
$
|
74.3
|
|
|
$
|
119.2
|
|
|
$
|
93.1
|
|
|
$
|
44.0
|
|
|
$
|
137.1
|
|
Receivables
|
|
16.2
|
|
|
23.0
|
|
|
39.2
|
|
|
19.1
|
|
|
37.7
|
|
|
56.8
|
|
||||||
Investments, at fair value
|
|
1,373.7
|
|
|
788.4
|
|
|
2,162.1
|
|
|
1,203.2
|
|
|
941.1
|
|
|
2,144.3
|
|
||||||
Other assets
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
||||||
Total Assets
|
|
$
|
1,435.5
|
|
|
$
|
885.7
|
|
|
$
|
2,321.2
|
|
|
$
|
1,316.1
|
|
|
$
|
1,022.8
|
|
|
$
|
2,338.9
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable and accrued expenses
|
|
$
|
18.5
|
|
|
$
|
35.3
|
|
|
$
|
53.8
|
|
|
$
|
25.2
|
|
|
$
|
10.9
|
|
|
$
|
36.1
|
|
Debt, at fair value
|
|
—
|
|
|
828.5
|
|
|
828.5
|
|
|
—
|
|
|
988.5
|
|
|
988.5
|
|
||||||
Debt
|
|
122.3
|
|
|
—
|
|
|
122.3
|
|
|
108.9
|
|
|
—
|
|
|
108.9
|
|
||||||
Other liabilities
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|
8.5
|
|
|
—
|
|
|
8.5
|
|
||||||
Total liabilities
|
|
153.2
|
|
|
863.8
|
|
|
1,017.0
|
|
|
142.6
|
|
|
999.4
|
|
|
1,142.0
|
|
||||||
Redeemable Noncontrolling Interests
|
|
234.8
|
|
|
—
|
|
|
234.8
|
|
|
121.8
|
|
|
—
|
|
|
121.8
|
|
||||||
Stockholders
’
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franklin Resources Inc.’s interests
|
|
436.5
|
|
|
21.9
|
|
|
458.4
|
|
|
454.8
|
|
|
23.4
|
|
|
478.2
|
|
||||||
Nonredeemable noncontrolling interests
|
|
611.0
|
|
|
—
|
|
|
611.0
|
|
|
596.9
|
|
|
—
|
|
|
596.9
|
|
||||||
Total stockholders’ equity
|
|
1,047.5
|
|
|
21.9
|
|
|
1,069.4
|
|
|
1,051.7
|
|
|
23.4
|
|
|
1,075.1
|
|
||||||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders
’
Equity
|
|
$
|
1,435.5
|
|
|
$
|
885.7
|
|
|
$
|
2,321.2
|
|
|
$
|
1,316.1
|
|
|
$
|
1,022.8
|
|
|
$
|
2,338.9
|
|
(in millions)
|
|
Total
Investments
|
|
Debt
|
||||
as of September 30, 2014
|
|
|
||||||
Unpaid principal balance
|
|
$
|
787.1
|
|
|
$
|
861.9
|
|
Difference between unpaid principal balance and fair value
|
|
1.3
|
|
|
(33.4
|
)
|
||
Fair Value
|
|
$
|
788.4
|
|
|
$
|
828.5
|
|
(in millions)
|
|
Total
Investments |
|
Investments
90 Days or More Past Due |
|
Debt
|
||||||
as of September 30, 2013
|
|
|
|
|||||||||
Unpaid principal balance
|
|
$
|
943.6
|
|
|
$
|
7.9
|
|
|
$
|
1,017.8
|
|
Difference between unpaid principal balance and fair value
|
|
(2.5
|
)
|
|
(7.7
|
)
|
|
(29.3
|
)
|
|||
Fair Value
|
|
$
|
941.1
|
|
|
$
|
0.2
|
|
|
$
|
988.5
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(in millions)
|
|
Consolidated
|
|
|
|
Consolidated
|
|
|
||||||||||||||||
as of September 30,
|
|
SIPs
|
|
VIEs
|
|
Total
|
|
SIPs
|
|
VIEs
|
|
Total
|
||||||||||||
Investment securities, trading
|
|
$
|
249.6
|
|
|
$
|
—
|
|
|
$
|
249.6
|
|
|
$
|
244.1
|
|
|
$
|
—
|
|
|
$
|
244.1
|
|
Other debt securities
|
|
205.6
|
|
|
788.4
|
|
|
994.0
|
|
|
272.3
|
|
|
941.1
|
|
|
1,213.4
|
|
||||||
Other equity securities
|
|
918.5
|
|
|
—
|
|
|
918.5
|
|
|
686.8
|
|
|
—
|
|
|
686.8
|
|
||||||
Total Investments
|
|
$
|
1,373.7
|
|
|
$
|
788.4
|
|
|
$
|
2,162.1
|
|
|
$
|
1,203.2
|
|
|
$
|
941.1
|
|
|
$
|
2,144.3
|
|
|
|
2014
|
|
2013
|
||||||||||
(in millions)
|
|
|
|
Effective Interest Rate
|
|
|
|
Effective Interest Rate
|
||||||
as of September 30,
|
|
Amount
|
|
|
Amount
|
|
||||||||
Debt of consolidated VIEs, at fair value, due fiscal years 2018-2024
|
|
$
|
828.5
|
|
|
1.43
|
%
|
|
$
|
988.5
|
|
|
1.32
|
%
|
Debt of consolidated SIPs due fiscal years 2015-2019
|
|
122.3
|
|
|
3.87
|
%
|
|
108.9
|
|
|
4.08
|
%
|
||
Total Debt
|
|
$
|
950.8
|
|
|
|
|
$
|
1,097.4
|
|
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
as of September 30, 2014
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents of consolidated VIEs
|
|
$
|
74.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74.3
|
|
Receivables of consolidated VIEs
|
|
—
|
|
|
23.0
|
|
|
—
|
|
|
23.0
|
|
||||
Investments of consolidated VIEs
|
|
—
|
|
|
787.9
|
|
|
0.5
|
|
|
788.4
|
|
||||
Investments of consolidated SIPs
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
149.9
|
|
|
304.0
|
|
|
614.3
|
|
|
1,068.2
|
|
||||
Debt securities
|
|
2.4
|
|
|
96.8
|
|
|
206.3
|
|
|
305.5
|
|
||||
Total Assets Measured at Fair Value
|
|
$
|
226.6
|
|
|
$
|
1,211.7
|
|
|
$
|
821.1
|
|
|
$
|
2,259.4
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable and accrued expenses of consolidated VIEs
|
|
$
|
—
|
|
|
$
|
35.3
|
|
|
$
|
—
|
|
|
$
|
35.3
|
|
Debt of consolidated VIEs
|
|
—
|
|
|
781.3
|
|
|
47.2
|
|
|
828.5
|
|
||||
Other liabilities of consolidated SIPs
|
|
4.0
|
|
|
0.6
|
|
|
—
|
|
|
4.6
|
|
||||
Total Liabilities Measured at Fair Value
|
|
$
|
4.0
|
|
|
$
|
817.2
|
|
|
$
|
47.2
|
|
|
$
|
868.4
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
as of September 30, 2013
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents of consolidated VIEs
|
|
$
|
44.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44.0
|
|
Receivables of consolidated VIEs
|
|
—
|
|
|
37.7
|
|
|
—
|
|
|
37.7
|
|
||||
Investments of consolidated VIEs
|
|
—
|
|
|
940.6
|
|
|
0.5
|
|
|
941.1
|
|
||||
Investments of consolidated SIPs
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
158.1
|
|
|
213.6
|
|
|
470.9
|
|
|
842.6
|
|
||||
Debt securities
|
|
4.5
|
|
|
83.8
|
|
|
272.3
|
|
|
360.6
|
|
||||
Total Assets Measured at Fair Value
|
|
$
|
206.6
|
|
|
$
|
1,275.7
|
|
|
$
|
743.7
|
|
|
$
|
2,226.0
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable and accrued expenses of consolidated VIEs
|
|
$
|
—
|
|
|
$
|
10.9
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
Debt of consolidated VIEs
|
|
—
|
|
|
928.8
|
|
|
59.7
|
|
|
988.5
|
|
||||
Total Liabilities Measured at Fair Value
|
|
$
|
—
|
|
|
$
|
939.7
|
|
|
$
|
59.7
|
|
|
$
|
999.4
|
|
(in millions)
|
|
|
|
Fair Value Level
|
|
|
|
|
||||
as of September 30,
|
|
Redemption Frequency
|
|
|
2014
|
|
2013
|
|||||
Global fixed-income fund
|
|
Monthly
|
|
2
|
|
$
|
275.1
|
|
|
$
|
191.8
|
|
Hedge funds
|
|
Monthly or quarterly
|
|
2
|
|
27.2
|
|
|
6.6
|
|
||
Real estate and private equity funds
|
|
Nonredeemable
|
|
3
|
|
392.3
|
|
|
242.1
|
|
||
Hedge funds
|
|
Annually or triennially
|
|
3
|
|
1.2
|
|
|
1.5
|
|
||
Total
|
|
|
|
|
|
$
|
695.8
|
|
|
$
|
442.0
|
|
(in millions)
|
|
Investments of
Consolidated SIPs
|
|
Investments of Consolidated VIEs
|
|
Total
Level 3 Assets
|
|
Debt of
Consolidated VIEs
|
||||||||||||
for the fiscal year ended September 30, 2014
|
|
Equity
|
|
Debt
|
|
|
|
|||||||||||||
Balance at October 1, 2013
|
|
$
|
470.9
|
|
|
$
|
272.3
|
|
|
$
|
0.5
|
|
|
$
|
743.7
|
|
|
$
|
(59.7
|
)
|
Realized and unrealized gains (losses) included in investment and other income, net
|
|
44.5
|
|
|
(35.7
|
)
|
|
—
|
|
|
8.8
|
|
|
12.5
|
|
|||||
Purchases
|
|
195.0
|
|
|
60.0
|
|
|
—
|
|
|
255.0
|
|
|
—
|
|
|||||
Sales
|
|
(91.6
|
)
|
|
(84.8
|
)
|
|
—
|
|
|
(176.4
|
)
|
|
—
|
|
|||||
Transfers into Level 3
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|||||
Transfers out of Level 3
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|||||
Effect of exchange rate changes
|
|
(3.2
|
)
|
|
(6.1
|
)
|
|
—
|
|
|
(9.3
|
)
|
|
—
|
|
|||||
Balance at September 30, 2014
|
|
$
|
614.3
|
|
|
$
|
206.3
|
|
|
$
|
0.5
|
|
|
$
|
821.1
|
|
|
$
|
(47.2
|
)
|
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at September 30, 2014
|
|
$
|
(24.9
|
)
|
|
$
|
(36.8
|
)
|
|
$
|
—
|
|
|
$
|
(61.7
|
)
|
|
$
|
12.5
|
|
(in millions)
|
|
Investments of
Consolidated SIPs
|
|
Investments of Consolidated VIEs
|
|
Total
Level 3 Assets
|
|
Debt of
Consolidated VIEs
|
||||||||||||
for the fiscal year ended September 30, 2013
|
|
Equity
|
|
Debt
|
|
|
|
|||||||||||||
Balance at October 1, 2012
|
|
$
|
527.0
|
|
|
$
|
317.5
|
|
|
$
|
—
|
|
|
$
|
844.5
|
|
|
$
|
(67.9
|
)
|
Realized and unrealized gains included in investment and other income, net
|
|
43.2
|
|
|
4.5
|
|
|
—
|
|
|
47.7
|
|
|
5.5
|
|
|||||
Purchases
|
|
156.2
|
|
|
73.3
|
|
|
—
|
|
|
229.5
|
|
|
—
|
|
|||||
Sales
|
|
(53.4
|
)
|
|
(130.9
|
)
|
|
—
|
|
|
(184.3
|
)
|
|
—
|
|
|||||
Settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|||||
Acquisition
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|||||
Reclassification to Level 2
|
|
(205.4
|
)
|
|
—
|
|
|
—
|
|
|
(205.4
|
)
|
|
—
|
|
|||||
Transfers into Level 3
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|||||
Effect of exchange rate changes
|
|
2.5
|
|
|
7.9
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
|||||
Balance at September 30, 2013
|
|
$
|
470.9
|
|
|
$
|
272.3
|
|
|
$
|
0.5
|
|
|
$
|
743.7
|
|
|
$
|
(59.7
|
)
|
Change in unrealized gains included in net income relating to assets and liabilities held at September 30, 2013
|
|
$
|
4.7
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
|
$
|
7.3
|
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2014
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average)
|
||
Debt securities
|
|
$
|
206.3
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.6%–18.0% (11.9%)
|
Risk premium
|
|
0.0%–8.0% (1.9%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Equity securities
|
|
152.9
|
|
|
Market comparable companies
|
|
EBITDA multiple
|
|
3.1–11.0 (8.0)
|
|
Discount for lack of marketability
|
|
25.0%–50.0% (33.2%)
|
||||||||
38.1
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
6.0%–20.0% (16.9%)
|
|||
|
29.8
|
|
|
Market pricing
|
|
Price to book value ratio
|
|
1.8–2.8 (2.1)
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2013
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average)
|
||
Debt securities
|
|
$
|
272.3
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
5.7%–25.6% (8.3%)
|
Risk premium
|
|
0.0%–19.3% (2.2%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Equity securities
|
|
137.4
|
|
|
Market comparable companies
|
|
EBITDA multiple
|
|
5.0–10.2 (8.0)
|
|
Discount for lack of marketability
|
|
20.0%–30.0% (23.7%)
|
||||||||
70.8
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
12.0%–18.0% (16.2%)
|
|||
|
Discount for lack of marketability
|
|
0.0%–50.0% (20.6%)
|
|||||||
|
19.1
|
|
|
Market pricing
|
|
Price to book value ratio
|
|
1.7
|
(in millions)
|
|
|
|
September 30, 2014
|
|
September 30, 2013
|
||||||||||||
|
Fair Value Level
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
|||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents of consolidated SIPs
|
|
1
|
|
$
|
44.9
|
|
|
$
|
44.9
|
|
|
$
|
93.1
|
|
|
$
|
93.1
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt of consolidated SIPs
|
|
3
|
|
122.3
|
|
|
122.0
|
|
|
108.9
|
|
|
110.4
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Balance at beginning of year
|
|
$
|
121.8
|
|
|
$
|
26.7
|
|
|
$
|
18.6
|
|
Net income
|
|
20.6
|
|
|
3.6
|
|
|
5.0
|
|
|||
Net subscriptions
|
|
436.0
|
|
|
60.2
|
|
|
73.8
|
|
|||
Net deconsolidations
|
|
(343.6
|
)
|
|
(58.5
|
)
|
|
(70.7
|
)
|
|||
Acquisition
|
|
—
|
|
|
32.8
|
|
|
—
|
|
|||
Reclassification from nonredeemable noncontrolling interests
|
|
—
|
|
|
57.0
|
|
|
—
|
|
|||
Balance at End of Year
|
|
$
|
234.8
|
|
|
$
|
121.8
|
|
|
$
|
26.7
|
|
(in millions)
|
|
|
|
|
||||
as of September 30,
|
|
2014
|
|
2013
|
||||
Receivables
|
|
$
|
49.8
|
|
|
$
|
46.3
|
|
Investments
|
|
202.0
|
|
|
198.5
|
|
||
Total
|
|
$
|
251.8
|
|
|
$
|
244.8
|
|
(shares in thousands)
|
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value
|
|||
for the fiscal year ended September 30, 2014
|
|
|
|||||
Nonvested balance at September 30, 2013
|
|
3,732
|
|
|
$
|
40.61
|
|
Granted
|
|
2,650
|
|
|
53.89
|
|
|
Vested
|
|
(2,715
|
)
|
|
43.00
|
|
|
Forfeited/canceled
|
|
(194
|
)
|
|
46.40
|
|
|
Nonvested Balance at September 30, 2014
|
|
3,473
|
|
|
$
|
48.55
|
|
(shares in thousands)
|
|
Shares
|
|
Weighted-Average Exercise Price
|
|||
for the fiscal year ended September 30, 2014
|
|
|
|||||
Outstanding at September 30, 2013
|
|
463
|
|
|
$
|
15.16
|
|
Exercised
|
|
(463
|
)
|
|
15.16
|
|
|
Outstanding at September 30, 2014
|
|
—
|
|
|
$
|
—
|
|
(in millions)
|
|
Pension Plan
|
|
Healthcare Plan
|
||||||||||||
as of and for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
|
$
|
41.4
|
|
|
$
|
52.7
|
|
|
$
|
5.5
|
|
|
$
|
6.8
|
|
Interest cost
|
|
1.9
|
|
|
2.3
|
|
|
0.2
|
|
|
0.2
|
|
||||
Plan settlements
|
|
—
|
|
|
(18.4
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
|
(5.3
|
)
|
|
(2.4
|
)
|
|
(0.8
|
)
|
|
(0.6
|
)
|
||||
Actuarial (gains) losses
|
|
1.8
|
|
|
7.6
|
|
|
0.5
|
|
|
(0.9
|
)
|
||||
Foreign currency movements
|
|
0.1
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
||||
Benefit Obligation at End of Year
|
|
$
|
39.9
|
|
|
$
|
41.4
|
|
|
$
|
5.4
|
|
|
$
|
5.5
|
|
Change in Fair Value of Plan Assets
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of year
|
|
$
|
41.1
|
|
|
$
|
52.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on assets
|
|
3.8
|
|
|
9.4
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
|
1.1
|
|
|
—
|
|
|
0.8
|
|
|
0.6
|
|
||||
Plan settlements
|
|
—
|
|
|
(18.4
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
|
(5.3
|
)
|
|
(2.4
|
)
|
|
(0.8
|
)
|
|
(0.6
|
)
|
||||
Foreign currency movements
|
|
0.1
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
||||
Fair Value of Plan Assets at End of Year
|
|
$
|
40.8
|
|
|
$
|
41.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded Status
|
|
$
|
0.9
|
|
|
$
|
(0.3
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
(5.5
|
)
|
(in millions)
|
|
Pension Plan
|
|
Healthcare Plan
|
||||||||||||
as of and for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Amounts Recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Compensation and benefits
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Other liabilities
|
|
—
|
|
|
(0.3
|
)
|
|
(5.0
|
)
|
|
(5.1
|
)
|
||||
Net Asset (Liability)
|
|
$
|
0.9
|
|
|
$
|
(0.3
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
(5.5
|
)
|
Weighted-Average Assumptions
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
|
4.10
|
%
|
|
4.50
|
%
|
|
4.05
|
%
|
|
4.55
|
%
|
||||
Expected long-term rate of return on plan assets
1
|
|
6.41
|
%
|
|
6.41
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Rate of compensation increase
|
|
N/A
|
|
|
N/A
|
|
|
2.50
|
%
|
|
2.50
|
%
|
1
|
The expected long-term rate of return on plan assets is based on the weighted-average historic performance of each asset class and current market conditions.
|
(in millions)
|
|
Pension Plan
|
|
Healthcare Plan
|
||||||||||||||||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Service cost
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
|
1.9
|
|
|
2.3
|
|
|
2.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
||||||
Plan curtailments
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Plan settlements
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Expected return on plan assets
|
|
(2.6
|
)
|
|
(3.2
|
)
|
|
(3.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net actuarial losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||||
Net Periodic Benefit Cost (Gain)
|
|
$
|
(0.7
|
)
|
|
$
|
0.7
|
|
|
$
|
3.2
|
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
0.3
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Operating Revenues
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
5,014.4
|
|
|
$
|
5,389.5
|
|
|
$
|
4,791.9
|
|
Luxembourg
|
|
2,034.0
|
|
|
363.4
|
|
|
311.8
|
|
|||
The Bahamas
|
|
492.7
|
|
|
1,049.7
|
|
|
904.2
|
|
|||
Asia-Pacific
|
|
420.2
|
|
|
661.0
|
|
|
627.7
|
|
|||
Canada
|
|
357.6
|
|
|
323.3
|
|
|
309.0
|
|
|||
Europe, the Middle East and Africa, excluding Luxembourg
|
|
159.8
|
|
|
184.4
|
|
|
146.8
|
|
|||
Latin America
|
|
12.7
|
|
|
13.7
|
|
|
9.6
|
|
|||
Total
|
|
$
|
8,491.4
|
|
|
$
|
7,985.0
|
|
|
$
|
7,101.0
|
|
(in millions)
|
|
|
|
|
|
|
||||||
as of September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Property and Equipment, Net
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
417.0
|
|
|
$
|
443.4
|
|
|
$
|
447.9
|
|
Asia-Pacific
|
|
78.0
|
|
|
81.0
|
|
|
94.3
|
|
|||
The Bahamas
|
|
15.1
|
|
|
15.7
|
|
|
16.5
|
|
|||
Europe, the Middle East and Africa
|
|
13.8
|
|
|
15.3
|
|
|
13.0
|
|
|||
Canada
|
|
5.9
|
|
|
8.1
|
|
|
10.4
|
|
|||
Latin America
|
|
0.9
|
|
|
0.6
|
|
|
0.6
|
|
|||
Total
|
|
$
|
530.7
|
|
|
$
|
564.1
|
|
|
$
|
582.7
|
|
(in millions)
|
|
|
|
|
|
|
||||||
for the fiscal years ended September 30,
|
|
2014
|
|
2013
|
|
2012
|
||||||
Investment and Other Income, Net
|
|
|
|
|
|
|
||||||
Dividend income
|
|
$
|
10.1
|
|
|
$
|
10.8
|
|
|
$
|
22.5
|
|
Interest income
|
|
9.1
|
|
|
7.5
|
|
|
12.5
|
|
|||
Gains on trading investment securities, net
|
|
10.4
|
|
|
8.7
|
|
|
34.7
|
|
|||
Realized gains on sale of investment securities, available-for-sale
|
|
57.8
|
|
|
50.9
|
|
|
41.0
|
|
|||
Realized losses on sale of investment securities, available-for-sale
|
|
(1.0
|
)
|
|
(0.9
|
)
|
|
(2.2
|
)
|
|||
Income from investments in equity method investees
|
|
68.1
|
|
|
74.0
|
|
|
68.6
|
|
|||
Other-than-temporary impairment of investments
|
|
(0.6
|
)
|
|
(2.4
|
)
|
|
(10.1
|
)
|
|||
Gains (losses) on investments of consolidated SIPs, net
|
|
33.9
|
|
|
42.4
|
|
|
(15.9
|
)
|
|||
Gains (losses) on assets and liabilities of consolidated VIEs, net
|
|
7.1
|
|
|
(16.0
|
)
|
|
25.6
|
|
|||
Foreign currency exchange gains (losses), net
|
|
32.1
|
|
|
(30.9
|
)
|
|
7.1
|
|
|||
Other, net
|
|
8.8
|
|
|
8.1
|
|
|
15.9
|
|
|||
Total
|
|
235.8
|
|
|
152.2
|
|
|
199.7
|
|
|||
Interest Expense
|
|
(47.4
|
)
|
|
(46.9
|
)
|
|
(36.7
|
)
|
|||
Other Income (Expenses), Net
|
|
$
|
188.4
|
|
|
$
|
105.3
|
|
|
$
|
163.0
|
|
(in millions)
|
|
Unrealized Gains (Losses) on Investments
|
|
Currency Translation Adjustments
|
|
Unrealized Losses on Defined Benefit Plans
|
|
Total
|
||||||||
for the fiscal year ended September 30, 2014
|
|
|
|
|
||||||||||||
Balance at October 1, 2013
|
|
$
|
71.9
|
|
|
$
|
(63.2
|
)
|
|
$
|
(2.6
|
)
|
|
$
|
6.1
|
|
Other comprehensive income (loss) before reclassifications, net of tax
|
|
5.9
|
|
|
(80.4
|
)
|
|
(2.5
|
)
|
|
(77.0
|
)
|
||||
Reclassifications to net investment and other income, net of tax
|
|
(46.8
|
)
|
|
—
|
|
|
—
|
|
|
(46.8
|
)
|
||||
Total other comprehensive loss
|
|
(40.9
|
)
|
|
(80.4
|
)
|
|
(2.5
|
)
|
|
(123.8
|
)
|
||||
Balance at September 30, 2014
|
|
$
|
31.0
|
|
|
$
|
(143.6
|
)
|
|
$
|
(5.1
|
)
|
|
$
|
(117.7
|
)
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Plan Category
|
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights (a) |
|
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
|
Number of securities
remaining available for future issuance under
equity compensation
plans (excluding securities reflected in column (a)) (c) |
|
|||
Equity compensation plans approved by stockholders
1
|
|
1,686,617
|
|
2
|
N/A
|
|
3
|
35,378,800
|
|
4
|
Equity compensation plans not approved by stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
1,686,617
|
|
|
N/A
|
|
|
35,378,800
|
|
|
1
|
Consists of the 2002 Universal Stock Incentive Plan, as amended and restated (the “USIP”) and the amended and restated Franklin Resources, Inc. 1998 Employee Stock Investment Plan (the “ESIP”). Equity securities granted under the USIP may include awards in connection with the Amended and Restated Annual Incentive Compensation Plan and the 2014 Key Executive Incentive Compensation Plan.
|
2
|
Represents restricted stock unit awards under the USIP that may be settled in shares of the Company’s common stock. Excludes options to purchase shares of the Company’s common stock accruing under the Company’s ESIP. Under the ESIP, each eligible employee is granted a separate option to purchase up to 6,000 shares of common stock each semi-annual accrual period on January 31 and July 31 at a purchase price per share equal to 85% of the fair market value of the common stock on the enrollment date or the exercise date, whichever is lower.
|
3
|
Does not take into account restricted stock unit awards under the USIP.
|
4
|
As of
September 30, 2014
,
5.8 million
shares of common stock were available for future issuance under the ESIP and
29.6 million
shares of common stock were available for future issuance under the USIP.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accountant Fees and Services.
|
Item 15.
|
Exhibits and Financial Statement Schedules.
|
(a)(1)
|
The financial statements filed as part of this report are listed in Item 8 of this Form 10-K.
|
(a)(2)
|
No financial statement schedules are required to be filed as part of this report because all such schedules have been omitted. Such omission has been made on the basis that information is provided in the financial statements, or in the related notes thereto, in Item 8 of this Form 10-K or is not required to be filed as the information is not applicable.
|
(a)(3)
|
Exhibits.
|
Exhibit No.
|
|
Description
|
|
3(i)(a)
|
|
|
Registrant’s Certificate of Incorporation, as filed November 28, 1969, incorporated by reference to Exhibit (3)(i) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 1994 (File No. 001-09318) (the “1994 Annual Report”)
|
3(i)(b)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed March 1, 1985, incorporated by reference to Exhibit 3(ii) to the 1994 Annual Report
|
3(i)(c)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed April 1, 1987, incorporated by reference to Exhibit 3(iii) to the 1994 Annual Report
|
3(i)(d)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed February 2, 1994, incorporated by reference to Exhibit 3(iv) to the 1994 Annual Report
|
3(i)(e)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed on February 4, 2005, incorporated by reference to Exhibit (3)(i)(e) to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2004 (File No. 001-09318)
|
3(ii)
|
|
|
Registrant’s Amended and Restated Bylaws (as adopted and effective December 10, 2013), incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on December 11, 2013 (File No. 001-09318)
|
4.1
|
|
|
Indenture between the Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to Chemical Bank), as trustee, dated as of May 19, 1994, incorporated by reference to Exhibit 4 to the Registrant’s Registration Statement on Form S-3 filed with the SEC on April 14, 1994 (File No. 033-53147)
|
4.2
|
|
|
First Supplemental Indenture, dated October 9, 1996, between the Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to The Chase Manhattan Bank), as trustee, incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form S-3 filed with the SEC on October 4, 1996 (File No. 333-12101)
|
4.3
|
|
|
Second Supplemental Indenture, dated May 20, 2010, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the SEC on May 20, 2010 (File No. 001-09318)
|
4.4
|
|
|
Third Supplemental Indenture, dated September 24, 2012, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the SEC on September 24, 2012 (File No. 001-09318)
|
10.1
|
|
|
Representative Form of Amended and Restated Indemnification Agreement with directors of the Registrant, incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2006 (File No. 001-09318)*
|
10.2
|
|
|
Representative Form of Notice of Restricted Stock Award and Restricted Stock Award Agreement (RSA) under the Registrant’s 2002 Universal Stock Incentive Plan for certain executive officers of the Registrant (filed herewith)*
|
10.3
|
|
|
Representative Form of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under the Registrant’s 2002 Universal Stock Incentive Plan for long-term performance awards for certain executive officers of the Registrant (filed herewith)*
|
10.4
|
|
|
2006 Directors Deferred Compensation Plan, as amended and restated effective March 13, 2013, incorporated by reference to Exhibit 10.1 to the Registrant
’
s Quarterly Report on Form 10-Q for the period ended March 31, 2013 (File No. 001-09318)*
|
Exhibit No.
|
|
Description
|
|
10.5
|
|
|
1998 Employee Stock Investment Plan (as amended and restated February 1, 2012), incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2011 (File No. 001-09318)*
|
10.6
|
|
|
2002 Universal Stock Incentive Plan (as amended and restated effective October 22, 2012), incorporated by reference to Exhibit 10.25 to the Registrant
’
s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 (File No. 001-09318)*
|
10.7
|
|
|
Amended and Restated Annual Incentive Compensation Plan (as amended and restated effective October 20, 2014) (filed herewith)*
|
10.8
|
|
|
2014 Key Executive Incentive Compensation Plan (as adopted and effective December 10, 2013), incorporated by reference to Exhibit 10.1 to the Registrant
’
s Current Report on Form 8-K filed with the SEC on March 13, 2014 (File No. 001-09318)*
|
10.9
|
|
|
Non-Employee Director Compensation as of March 31, 2014, incorporated by reference to Exhibit 10.3 to the Registrant
’
s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 001-09318)*
|
10.10
|
|
|
Named Executive Officer Compensation as of March 31, 2014, incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 001-09318)*
|
12
|
|
|
Computation of Ratios of Earnings to Fixed Charges (filed herewith)
|
21
|
|
|
List of Subsidiaries (filed herewith)
|
23
|
|
|
Consent of Independent Registered Public Accounting Firm (filed herewith)
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
32.1
|
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
|
32.2
|
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
|
101
|
|
|
The following materials from the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith)
|
|
|
FRANKLIN RESOURCES, INC.
|
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Kenneth A. Lewis
|
|
|
|
Kenneth A. Lewis, Chief Financial Officer and Executive Vice President
|
Date:
|
|
By:
|
|
|
|
|
Samuel H. Armacost, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Peter K. Barker
|
|
|
|
Peter K. Barker, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Charles E. Johnson
|
|
|
|
Charles E. Johnson, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Gregory E. Johnson
|
|
|
|
Gregory E. Johnson, Chairman, Director, President and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Rupert H. Johnson, Jr.
|
|
|
|
Rupert H. Johnson, Jr., Vice Chairman and Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Kenneth A. Lewis
|
|
|
|
Kenneth A. Lewis, Chief Financial Officer and Executive Vice President
(Principal Financial and Accounting Officer)
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Mark C. Pigott
|
|
|
|
Mark C. Pigott, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Chutta Ratnathicam
|
|
|
|
Chutta Ratnathicam, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Laura Stein
|
|
|
|
Laura Stein, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Anne M. Tatlock
|
|
|
|
Anne M. Tatlock, Director
|
|
|
|
|
Date:
|
November 12, 2014
|
By:
|
/s/ Geoffrey Y. Yang
|
|
|
|
Geoffrey Y. Yang, Director
|
Exhibit No.
|
|
Description
|
|
3(i)(a)
|
|
|
Registrant’s Certificate of Incorporation, as filed November 28, 1969, incorporated by reference to Exhibit (3)(i) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 1994 (File No. 001-09318) (the “1994 Annual Report”)
|
3(i)(b)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed March 1, 1985, incorporated by reference to Exhibit 3(ii) to the 1994 Annual Report
|
3(i)(c)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed April 1, 1987, incorporated by reference to Exhibit 3(iii) to the 1994 Annual Report
|
3(i)(d)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed February 2, 1994, incorporated by reference to Exhibit 3(iv) to the 1994 Annual Report
|
3(i)(e)
|
|
|
Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed on February 4, 2005, incorporated by reference to Exhibit (3)(i)(e) to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2004 (File No. 001-09318)
|
3(ii)
|
|
|
Registrant’s Amended and Restated Bylaws (as adopted and effective December 10, 2013), incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on December 11, 2013 (File No. 001-09318)
|
4.1
|
|
|
Indenture between the Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to Chemical Bank), as trustee, dated as of May 19, 1994, incorporated by reference to Exhibit 4 to the Registrant’s Registration Statement on Form S-3 filed with the SEC on April 14, 1994 (File No. 033-53147)
|
4.2
|
|
|
First Supplemental Indenture, dated October 9, 1996, between the Registrant and The Bank of New York Mellon Trust Company, N.A. (as successor to The Chase Manhattan Bank), as trustee, incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form S-3 filed with the SEC on October 4, 1996 (File No. 333-12101)
|
4.3
|
|
|
Second Supplemental Indenture, dated May 20, 2010, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the SEC on May 20, 2010 (File No. 001-09318)
|
4.4
|
|
|
Third Supplemental Indenture, dated September 24, 2012, between the Registrant and The Bank of New York Mellon Trust Company, N.A., as trustee, incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed with the SEC on September 24, 2012 (File No. 001-09318)
|
10.1
|
|
|
Representative Form of Amended and Restated Indemnification Agreement with directors of the Registrant, incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q for the period ended March 31, 2006 (File No. 001-09318)*
|
10.2
|
|
|
Representative Form of Notice of Restricted Stock Award and Restricted Stock Award Agreement (RSA) under the Registrant’s 2002 Universal Stock Incentive Plan for certain executive officers of the Registrant (filed herewith)*
|
10.3
|
|
|
Representative Form of Notice of Restricted Stock Unit Award and Restricted Stock Unit Award Agreement (RSU) under the Registrant’s 2002 Universal Stock Incentive Plan for long-term performance awards for certain executive officers of the Registrant (filed herewith)*
|
10.4
|
|
|
2006 Directors Deferred Compensation Plan, as amended and restated effective March 13, 2013, incorporated by reference to Exhibit 10.1 to the Registrant
’
s Quarterly Report on Form 10-Q for the period ended March 31, 2013 (File No. 001-09318)*
|
10.5
|
|
|
1998 Employee Stock Investment Plan (as amended and restated February 1, 2012), incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2011 (File No. 001-09318)*
|
10.6
|
|
|
2002 Universal Stock Incentive Plan (as amended and restated effective October 22, 2012), incorporated by reference to Exhibit 10.25 to the Registrant
’
s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 (File No. 001-09318)*
|
10.7
|
|
|
Amended and Restated Annual Incentive Compensation Plan (as amended and restated effective October 20, 2014) (filed herewith)*
|
10.8
|
|
|
2014 Key Executive Incentive Compensation Plan (as adopted and effective December 10, 2013), incorporated by reference to Exhibit 10.1 to the Registrant
’
s Current Report on Form 8-K filed with the SEC on March 13, 2014 (File No. 001-09318)*
|
Exhibit No.
|
|
Description
|
|
10.9
|
|
|
Non-Employee Director Compensation as of March 31, 2014, incorporated by reference to Exhibit 10.3 to the Registrant
’
s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 001-09318)*
|
10.10
|
|
|
Named Executive Officer Compensation as of March 31, 2014, incorporated by reference to Exhibit 10.4 to the Registrant
’
s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 001-09318)*
|
12
|
|
|
Computation of Ratios of Earnings to Fixed Charges (filed herewith)
|
21
|
|
|
List of Subsidiaries (filed herewith)
|
23
|
|
|
Consent of Independent Registered Public Accounting Firm (filed herewith)
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
32.1
|
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
|
32.2
|
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
|
101
|
|
|
The following materials from the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith)
|
Name:
|
|
Address:
|
|
Award Number
|
|
Award Date
|
|
Total Number of Shares (the
“Shares”
) Awarded
|
|
Name:
|
|
Address:
|
|
Award Number
|
|
Award Date
|
|
Total Number of Units Awarded
|
|
2.
|
Transfer Restriction
.
|
16.
|
Forfeiture
.
|
I.
|
PURPOSE
|
II.
|
DEFINITIONS
|
III.
|
PARTICIPATION
|
IV.
|
AWARD POOL FUNDING AND INDIVIDUAL AWARDS
|
V.
|
PAYMENT OF ANNUAL AWARDS
|
VI.
|
PAYMENT IN EVENT OF DEATH, DISABILITY, LEAVE OF ABSENCE OR RETIREMENT
|
VII.
|
PAYMENT IN EVENT OF TERMINATION OF EMPLOYMENT
|
VIII.
|
AMENDMENT OR TERMINATION
|
IX.
|
ADMINISTRATION
|
X.
|
FORFEITURE OF INCENTIVE AWARDS
|
(in millions)
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
for the fiscal years ended September 30,
|
|
|
|
|
|
|||||||||||||||
Income before taxes excluding equity in income of investees, noncontrolling interests of consolidated subsidiaries and capitalized interest
|
|
$
|
3,341.5
|
|
|
$
|
2,952.6
|
|
|
$
|
2,609.6
|
|
|
$
|
2,625.3
|
|
|
$
|
2,050.2
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends received from equity method investees
|
|
13.3
|
|
|
18.8
|
|
|
7.9
|
|
|
20.0
|
|
|
18.1
|
|
|||||
Interest on uncertain tax positions included in income before taxes
|
|
2.4
|
|
|
1.0
|
|
|
(0.3
|
)
|
|
3.2
|
|
|
5.1
|
|
|||||
Fixed charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense - excluding interest on deposits
|
|
47.4
|
|
|
48.9
|
|
|
45.4
|
|
|
53.7
|
|
|
18.4
|
|
|||||
Interest expense - deposits
|
|
0.2
|
|
|
1.2
|
|
|
2.9
|
|
|
4.1
|
|
|
4.7
|
|
|||||
Interest on uncertain tax positions not related to third party
|
|
(2.4
|
)
|
|
(1.0
|
)
|
|
0.3
|
|
|
(3.2
|
)
|
|
(5.1
|
)
|
|||||
Interest factor on rent
1
|
|
19.4
|
|
|
19.1
|
|
|
19.5
|
|
|
20.7
|
|
|
22.2
|
|
|||||
Total fixed charges
|
|
64.6
|
|
|
68.2
|
|
|
68.1
|
|
|
75.3
|
|
|
40.2
|
|
|||||
Adjusted earnings
|
|
$
|
3,421.8
|
|
|
$
|
3,040.6
|
|
|
$
|
2,685.3
|
|
|
$
|
2,723.8
|
|
|
$
|
2,113.6
|
|
Ratio of adjusted earnings to fixed charges including interest on deposits
|
|
53.0
|
|
|
44.6
|
|
|
39.4
|
|
|
36.2
|
|
|
52.6
|
|
|||||
Ratio of adjusted earnings to fixed charges excluding interest on deposits
|
|
53.1
|
|
|
45.4
|
|
|
41.1
|
|
|
38.2
|
|
|
59.4
|
|
Name
|
|
State or Nation of
Incorporation or Organization
|
Balanced Equity Management Pty. Limited
|
|
Australia
|
C&EE General Partner Ltd.
|
|
Delaware
|
Darby Administração de Investimentos Ltda.
|
|
Brazil
|
Darby Asia Founder Partner, L.P.
|
|
Cayman Islands
|
Darby Asia Investors (HK), Ltd.
|
|
Hong Kong
|
Darby Asia Investors (India) Private Limited
|
|
India
|
Darby Asia Investors, Ltd.
|
|
British Virgin Islands
|
Darby Asia Mezzanine Fund II Management Co., Ltd.
|
|
Cayman Islands
|
Darby Asia Opportunities Fund III GP, L.P.
|
|
Cayman Islands
|
Darby Asia Opportunities Fund III Management Co., Ltd.
|
|
Cayman Islands
|
Darby Brazil Mezzanine Management, LLC
|
|
Delaware
|
Darby CEE Founder Partner II, LLC
|
|
Delaware
|
Darby Colpatria Capital SAS
|
|
Colombia
|
Darby Converging Europe Founder Partner, L.P.
|
|
Delaware
|
Darby Converging Europe Fund III Management
|
|
Luxembourg
|
Darby Emerging Markets Investments, Ltd.
|
|
Delaware
|
Darby Europe Mezzanine Management
|
|
Cayman Islands
|
Darby Holdings, Inc.
|
|
Delaware
|
Darby Latin American Investors, Ltd.
|
|
Cayman Islands
|
Darby Latin American Mezzanine Investments
|
|
Cayman Islands
|
Darby Latin American Mezzanine Management II, LLC
|
|
Delaware
|
Darby Mexico Private Equity, S.A.P.I. de C.V.
|
|
Mexico
|
Darby Overseas Investments, Ltd.
|
|
Delaware
|
Darby Overseas Partners, L.P.
|
|
Delaware
|
Darby - Hana Infrastructure Fund Management Co., Ltd.
|
|
Korea
|
Darby-Probanco Investors, LLC
|
|
Delaware
|
DCEF Founder Partner III, L.P.
|
|
United Kingdom
|
DK Consulting Ltd.
|
|
Korea
|
DLAMF II Special Company, LLC
|
|
Delaware
|
Fiduciary International Holding, Inc.
|
|
New York
|
Fiduciary International Ireland Limited
|
|
Ireland
|
Fiduciary International, Inc.
|
|
New York
|
Fiduciary Investment Corporation
|
|
New York
|
Fiduciary Investment Management International, Inc.
|
|
Delaware
|
Fiduciary Trust (International) Sàrl
|
|
Switzerland
|
Fiduciary Trust Company International
|
|
New York
|
Fiduciary Trust Company of Canada
|
|
Canada
|
Name
|
|
State or Nation of
Incorporation or Organization
|
Fiduciary Trust International Limited
|
|
United Kingdom
|
Fiduciary Trust International of California
|
|
California
|
Fiduciary Trust International of Delaware
|
|
Delaware
|
Fiduciary Trust International of the South
|
|
Florida
|
Franklin Advisers, Inc.
|
|
California
|
Franklin Advisers GP, LLC
|
|
Delaware
|
Franklin Advisory Services, LLC
|
|
Delaware
|
Franklin Alternative Strategies Advisers, LLC
|
|
Delaware
|
Franklin Alternative Strategies Advisers GP, LLC
|
|
Delaware
|
Franklin Capital Corporation
|
|
Utah
|
Franklin Investment Advisory Services, LLC
|
|
Delaware
|
Franklin Mutual Advisers, LLC
|
|
Delaware
|
Franklin Templeton Asia Holdings Private Limited
|
|
Singapore
|
Franklin Templeton Asset Management (India) Private Limited
|
|
India
|
Franklin Templeton Asset Management (Malaysia) Sdn. Bhd.
|
|
Malaysia
|
Franklin Templeton Asset Management Mexico, S.A. de C.V., Sociedad Operadora de Sociedades de Inversion
|
|
Mexico
|
Franklin Templeton Austria GmbH
|
|
Austria
|
Franklin Templeton Bank & Trust, F.S.B.
|
|
United States
|
Franklin Templeton Capital Holdings Private Limited
|
|
Singapore
|
Franklin Templeton Companies, LLC
|
|
Delaware
|
Franklin Templeton Financial Services Corp.
|
|
New York
|
Franklin Templeton France S.A.
|
|
France
|
Franklin Templeton Fund Management Limited
|
|
United Kingdom
|
Franklin Templeton Global Investors Limited
|
|
United Kingdom
|
Franklin Templeton GSC Asset Management Sdn. Bhd.
|
|
Malaysia
|
Franklin Templeton Holding Limited
|
|
Mauritius
|
Franklin Templeton Institutional, LLC
|
|
Delaware
|
Franklin Templeton Institutional GP, LLC
|
|
Delaware
|
Franklin Templeton International Services (India) Private Limited
|
|
India
|
Franklin Templeton International Services S. à r.l.
|
|
Luxembourg
|
Franklin Templeton Investímentos (Brasil) Ltda.
|
|
Brazil
|
Franklin Templeton Investment Management GmbH
|
|
Germany
|
Franklin Templeton Investment Management Limited
|
|
United Kingdom
|
Franklin Templeton Investment Services GmbH
|
|
Germany
|
Franklin Templeton Investment Services Mexico S. de R.L.
|
|
Mexico
|
Franklin Templeton Investment Trust Management Co., Ltd.
|
|
Korea
|
Franklin Templeton Investments (Asia) Limited
|
|
Hong Kong
|
Franklin Templeton Investments Australia Limited
|
|
Australia
|
Franklin Templeton Investments Corp.
|
|
Canada
|
Franklin Templeton Investments Japan Limited
|
|
Japan
|
Name
|
|
State or Nation of
Incorporation or Organization
|
Franklin Templeton Investments (ME) Limited
|
|
Dubai, U.A.E.
|
Franklin Templeton Investments Poland sp. z o.o.
|
|
Poland
|
Franklin Templeton Investments South Africa (Pty) Ltd
|
|
South Africa
|
Franklin Templeton Investor Services, LLC
|
|
Delaware
|
Franklin Templeton Italia SIM S.p.A.
|
|
Italy
|
Franklin Templeton Luxembourg Holding S.A.
|
|
Luxembourg
|
Franklin Templeton Magyarorszag Kft.
|
|
Hungary
|
Franklin Templeton Management Luxembourg S.A.
|
|
Luxembourg
|
Franklin Templeton Portfolio Advisors, Inc.
|
|
California
|
Franklin Templeton Real Estate Advisors GP, LLC
|
|
Delaware
|
Franklin Templeton Real Estate Advisors II GP, LLC
|
|
Delaware
|
Franklin Templeton Real Estate Group Carry, L.P.
|
|
Delaware
|
Franklin Templeton Services Limited
|
|
Ireland
|
Franklin Templeton Services, LLC
|
|
Delaware
|
Franklin Templeton Services (India) Private Limited
|
|
India
|
Franklin Templeton Servicios de Asesoria Mexico, S. de R.L. de C.V.
|
|
Mexico
|
Franklin Templeton Slovakia, s.r.o.
|
|
Slovakia
|
Franklin Templeton Strategic Investments Ltd.
|
|
Cayman Islands
|
Franklin Templeton Switzerland Ltd.
|
|
Switzerland
|
Franklin Templeton Trustee Services Private Limited
|
|
India
|
Franklin Templeton Uruguay S.A.
|
|
Uruguay
|
Franklin/Templeton Distributors, Inc.
|
|
New York
|
Franklin/Templeton Travel, Inc.
|
|
California
|
F S Capital Group
|
|
California
|
F S Properties, Inc.
|
|
California
|
FT Opportunistic Distressed Fund Ltd.
|
|
Cayman Islands
|
FTC Investor Services Inc.
|
|
Canada
|
FTCI (Cayman) Ltd.
|
|
Cayman Islands
|
ITI Capital Markets Limited
|
|
India
|
K2 Advisors Holdings, LLC
|
|
Delaware
|
K2 Advisors Hong Kong Limited
|
|
Hong Kong
|
K2 Advisors Japan Ltd.
|
|
Japan
|
K2 Advisors L.L.C.
|
|
Delaware
|
K2 Advisors Limited
|
|
United Kingdom
|
K2/D&S Management Co., L.L.C.
|
|
Delaware
|
K2/Highland Management Co., L.L.C.
|
|
Delaware
|
LSIMC, LLC
|
|
Delaware
|
Riva Financial Systems Limited
|
|
United Kingdom
|
Templeton Asset Management (Labuan) Limited
|
|
Malaysia
|
Templeton Asset Management Limited Mexico, S. de R.L. de C.V.
|
|
Mexico
|
Templeton Asset Management Ltd.
|
|
Singapore
|
Name
|
|
State or Nation of
Incorporation or Organization
|
Templeton Asset Management (Poland) TFI S.A.
|
|
Poland
|
Templeton China Research Limited
|
|
Hong Kong
|
Templeton do Brasil Ltda.
|
|
Brazil
|
Templeton Franklin Global Distributors, Ltd.
|
|
Bermuda
|
Templeton Global Advisors Limited
|
|
The Bahamas
|
Templeton Global Holdings Ltd.
|
|
The Bahamas
|
Templeton International, Inc.
|
|
Delaware
|
Templeton Investment Counsel, LLC
|
|
Delaware
|
Templeton Restructured Investments, L.L.C.
|
|
Delaware
|
Templeton Restructured Investments III, Ltd.
|
|
Cayman Islands
|
Templeton Restructured Investments IV, Ltd.
|
|
Cayman Islands
|
Templeton Worldwide, Inc.
|
|
Delaware
|
Templeton/Franklin Investment Services, Inc.
|
|
Delaware
|
TSEMF III (Jersey) Limited
|
|
Jersey (Channel Islands)
|
TSEMF IV (Jersey) Limited
|
|
Jersey (Channel Islands)
|
*
|
All subsidiaries currently do business principally under their respective corporate names except as follows:
|
•
|
some of our subsidiaries may use the names Franklin Templeton Investments, Franklin Templeton International and Templeton Worldwide;
|
•
|
our Darby subsidiaries may use the name Darby Private Equity;
|
•
|
Fiduciary Trust Company of Canada may use the names Fiduciary Trust Canada and Franklin Templeton Solutions in various Canadian jurisdictions;
|
•
|
Franklin Alternative Strategies Advisers, LLC may use the name Pelagos Capital Management;
|
•
|
Franklin Templeton Investments Corp. may use the names Franklin Bissett Investment Management, Franklin Templeton Investments and Franklin Templeton Institutional in various Canadian jurisdictions;
|
•
|
Franklin Templeton Portfolio Advisors, Inc. may use the names Franklin Portfolio Advisors and Templeton Portfolio Advisors; and
|
•
|
K2 Advisors L.L.C. may use the name K2 Advisors.
|
1.
|
I have reviewed this annual report on Form 10-K of Franklin Resources, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 12, 2014
|
|
/s/ G
REGORY
E. J
OHNSON
|
|
|
|
Gregory E. Johnson
Chairman of the Board, Chief Executive Officer and President
|
1.
|
I have reviewed this annual report on Form 10-K of Franklin Resources, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 12, 2014
|
|
/s/ K
ENNETH
A
.
L
EWIS
|
|
|
|
Kenneth A. Lewis
Chief Financial Officer and Executive Vice President
|
1.
|
The Annual Report on Form 10-K of the Company for the fiscal year ended September 30,
2014
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Dated:
|
November 12, 2014
|
|
/s/ G
REGORY
E. J
OHNSON
|
|
|
|
Gregory E. Johnson
Chairman of the Board, Chief Executive Officer and President
|
1.
|
The Annual Report on Form 10-K of the Company for the fiscal year ended September 30,
2014
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.
|
Dated:
|
November 12, 2014
|
|
/s/ K
ENNETH
A
.
L
EWIS
|
|
|
|
Kenneth A. Lewis
Chief Financial Officer and Executive Vice President
|