☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
13-2670991
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value $0.10 per share
|
BEN
|
New York Stock Exchange
|
|
Large Accelerated Filer
|
☒
|
|
Accelerated Filer
|
☐
|
|
Non-accelerated Filer
|
☐
|
|
Smaller Reporting Company
|
☐
|
|
|
|
|
Emerging Growth Company
|
☐
|
|
|
Page
|
|
Financial Information
|
|
||
|
Item 1.
|
Financial Statements (unaudited)
|
|
|
|
3
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
|
|
8
|
|
|
|
10
|
|
|
Item 2.
|
28
|
|
|
Item 3.
|
61
|
|
|
Item 4.
|
61
|
|
|
|
|
|
Other Information
|
|
||
|
Item 1.
|
62
|
|
|
Item 1A.
|
62
|
|
|
Item 2.
|
62
|
|
|
Item 6.
|
62
|
|
|
|
|
|
63
|
|||
64
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
|
||||||||||||||||
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in millions, except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
|
||||||||
Investment management fees
|
|
$
|
809.2
|
|
|
$
|
1,019.4
|
|
|
$
|
2,697.1
|
|
|
$
|
2,983.6
|
|
Sales and distribution fees
|
|
302.1
|
|
|
367.5
|
|
|
995.3
|
|
|
1,080.8
|
|
||||
Shareholder servicing fees
|
|
44.6
|
|
|
52.7
|
|
|
149.4
|
|
|
164.9
|
|
||||
Other
|
|
32.2
|
|
|
37.1
|
|
|
97.3
|
|
|
92.7
|
|
||||
Total operating revenues
|
|
1,188.1
|
|
|
1,476.7
|
|
|
3,939.1
|
|
|
4,322.0
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Sales, distribution and marketing
|
|
368.6
|
|
|
462.4
|
|
|
1,236.4
|
|
|
1,356.3
|
|
||||
Compensation and benefits
|
|
386.5
|
|
|
437.7
|
|
|
1,141.6
|
|
|
1,202.3
|
|
||||
Information systems and technology
|
|
62.1
|
|
|
65.7
|
|
|
186.4
|
|
|
188.7
|
|
||||
Occupancy
|
|
31.5
|
|
|
32.2
|
|
|
100.4
|
|
|
94.8
|
|
||||
General, administrative and other
|
|
85.7
|
|
|
103.8
|
|
|
271.8
|
|
|
314.0
|
|
||||
Total operating expenses
|
|
934.4
|
|
|
1,101.8
|
|
|
2,936.6
|
|
|
3,156.1
|
|
||||
Operating Income
|
|
253.7
|
|
|
374.9
|
|
|
1,002.5
|
|
|
1,165.9
|
|
||||
Other Income (Expenses)
|
|
|
|
|
|
|
|
|
||||||||
Investment and other income (losses), net
|
|
22.9
|
|
|
44.2
|
|
|
(166.5
|
)
|
|
103.8
|
|
||||
Interest expense
|
|
(6.8
|
)
|
|
(5.6
|
)
|
|
(17.7
|
)
|
|
(17.7
|
)
|
||||
Other income (expenses), net
|
|
16.1
|
|
|
38.6
|
|
|
(184.2
|
)
|
|
86.1
|
|
||||
Income before taxes
|
|
269.8
|
|
|
413.5
|
|
|
818.3
|
|
|
1,252.0
|
|
||||
Taxes on income
|
|
16.1
|
|
|
158.9
|
|
|
157.7
|
|
|
355.8
|
|
||||
Net income
|
|
253.7
|
|
|
254.6
|
|
|
660.6
|
|
|
896.2
|
|
||||
Less: net income (loss) attributable to
|
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests
|
|
31.3
|
|
|
0.1
|
|
|
11.8
|
|
|
6.2
|
|
||||
Nonredeemable noncontrolling interests
|
|
(68.0
|
)
|
|
8.6
|
|
|
(71.2
|
)
|
|
0.7
|
|
||||
Net Income Attributable to Franklin Resources, Inc.
|
|
$
|
290.4
|
|
|
$
|
245.9
|
|
|
$
|
720.0
|
|
|
$
|
889.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.44
|
|
|
$
|
1.74
|
|
Diluted
|
|
0.58
|
|
|
0.48
|
|
|
1.44
|
|
|
1.74
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited
|
||||||||||||||||
(in millions)
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Net Income
|
|
$
|
253.7
|
|
|
$
|
254.6
|
|
|
$
|
660.6
|
|
|
$
|
896.2
|
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments, net of tax
|
|
26.1
|
|
|
1.9
|
|
|
(18.4
|
)
|
|
(4.8
|
)
|
||||
Net unrealized gains (losses) on defined benefit plans, net of tax
|
|
—
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
(1.0
|
)
|
||||
Net unrealized gains (losses) on investments, net of tax
|
|
(0.1
|
)
|
|
3.6
|
|
|
0.1
|
|
|
3.5
|
|
||||
Total other comprehensive income (loss)
|
|
26.0
|
|
|
5.6
|
|
|
(18.5
|
)
|
|
(2.3
|
)
|
||||
Total comprehensive income
|
|
279.7
|
|
|
260.2
|
|
|
642.1
|
|
|
893.9
|
|
||||
Less: comprehensive income (loss) attributable to
|
|
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests
|
|
31.3
|
|
|
0.1
|
|
|
11.8
|
|
|
6.2
|
|
||||
Nonredeemable noncontrolling interests
|
|
(68.0
|
)
|
|
8.6
|
|
|
(71.2
|
)
|
|
0.7
|
|
||||
Comprehensive Income Attributable to Franklin Resources, Inc.
|
|
$
|
316.4
|
|
|
$
|
251.5
|
|
|
$
|
701.5
|
|
|
$
|
887.0
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
Unaudited
|
||||||||
(in millions, except share and per share data)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
6,358.7
|
|
|
$
|
5,803.4
|
|
Receivables
|
|
810.3
|
|
|
740.0
|
|
||
Investments (including $572.1 and $589.7 at fair value at June 30, 2020 and September 30, 2019)
|
|
1,135.0
|
|
|
1,555.8
|
|
||
Assets of consolidated investment products
|
|
|
|
|
||||
Cash and cash equivalents
|
|
617.2
|
|
|
154.2
|
|
||
Receivables
|
|
117.5
|
|
|
99.0
|
|
||
Investments, at fair value
|
|
2,274.3
|
|
|
2,303.9
|
|
||
Property and equipment, net
|
|
705.2
|
|
|
683.7
|
|
||
Goodwill
|
|
2,190.7
|
|
|
2,130.3
|
|
||
Intangible assets, net
|
|
904.1
|
|
|
864.2
|
|
||
Operating lease right-of-use assets
|
|
258.5
|
|
|
—
|
|
||
Other
|
|
245.5
|
|
|
197.7
|
|
||
Total Assets
|
|
$
|
15,617.0
|
|
|
$
|
14,532.2
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Compensation and benefits
|
|
$
|
439.8
|
|
|
$
|
502.4
|
|
Accounts payable and accrued expenses
|
|
187.3
|
|
|
222.9
|
|
||
Dividends
|
|
142.8
|
|
|
137.4
|
|
||
Commissions
|
|
212.0
|
|
|
254.0
|
|
||
Income taxes
|
|
747.3
|
|
|
824.7
|
|
||
Debt
|
|
697.2
|
|
|
696.9
|
|
||
Liabilities of consolidated investment products
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
154.6
|
|
|
81.5
|
|
||
Debt
|
|
685.6
|
|
|
50.8
|
|
||
Deferred taxes
|
|
77.2
|
|
|
120.1
|
|
||
Operating lease liabilities
|
|
300.6
|
|
|
—
|
|
||
Other
|
|
255.1
|
|
|
270.6
|
|
||
Total liabilities
|
|
3,899.5
|
|
|
3,161.3
|
|
||
Commitments and Contingencies (Note 10)
|
|
|
|
|
||||
Redeemable Noncontrolling Interests
|
|
713.8
|
|
|
746.7
|
|
||
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; 495,369,948 and 499,303,269 shares issued and outstanding at June 30, 2020 and September 30, 2019
|
|
49.5
|
|
|
49.9
|
|
||
Retained earnings
|
|
10,514.8
|
|
|
10,288.2
|
|
||
Accumulated other comprehensive loss
|
|
(450.1
|
)
|
|
(431.6
|
)
|
||
Total Franklin Resources, Inc. stockholders’ equity
|
|
10,114.2
|
|
|
9,906.5
|
|
||
Nonredeemable noncontrolling interests
|
|
889.5
|
|
|
717.7
|
|
||
Total stockholders’ equity
|
|
11,003.7
|
|
|
10,624.2
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity
|
|
$
|
15,617.0
|
|
|
$
|
14,532.2
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Unaudited
|
|||||||||||||||||||||||||||||||
|
|
Franklin Resources, Inc.
|
|
Non-
redeemable
Non-
controlling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Capital
in
Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accum-
ulated
Other
Compre-
hensive
Loss
|
|
Stockholders’
Equity
|
||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||
for the nine months ended
June 30, 2020 |
Shares
|
|
Amount
|
||||||||||||||||||||||||||||
Balance at October 1, 2019
|
|
499.3
|
|
|
$
|
49.9
|
|
|
$
|
—
|
|
|
$
|
10,288.2
|
|
|
$
|
(431.6
|
)
|
|
$
|
9,906.5
|
|
|
$
|
717.7
|
|
|
$
|
10,624.2
|
|
Net income (loss)
|
|
|
|
|
|
|
|
350.5
|
|
|
|
|
350.5
|
|
|
(11.4
|
)
|
|
339.1
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
55.4
|
|
|
55.4
|
|
|
|
|
55.4
|
|
||||||||||||
Dividends declared on common stock ($0.27 per share)
|
|
|
|
|
|
|
|
(135.3
|
)
|
|
|
|
(135.3
|
)
|
|
|
|
(135.3
|
)
|
||||||||||||
Repurchase of common stock
|
|
(4.6
|
)
|
|
(0.4
|
)
|
|
(27.8
|
)
|
|
(95.4
|
)
|
|
|
|
(123.6
|
)
|
|
|
|
(123.6
|
)
|
|||||||||
Issuance of common stock
|
|
2.9
|
|
|
0.3
|
|
|
28.7
|
|
|
|
|
|
|
29.0
|
|
|
|
|
29.0
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
(0.9
|
)
|
|
|
|
|
|
(0.9
|
)
|
|
|
|
(0.9
|
)
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.2
|
|
|
28.2
|
|
|||||||||||||
Deconsolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|||||||||||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.0
|
|
|
19.0
|
|
|||||||||||||
Balance at December 31, 2019
|
|
497.6
|
|
|
$
|
49.8
|
|
|
$
|
—
|
|
|
$
|
10,408.0
|
|
|
$
|
(376.2
|
)
|
|
$
|
10,081.6
|
|
|
$
|
752.8
|
|
|
$
|
10,834.4
|
|
Net income
|
|
|
|
|
|
|
|
79.1
|
|
|
|
|
79.1
|
|
|
8.2
|
|
|
87.3
|
|
|||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
(99.9
|
)
|
|
(99.9
|
)
|
|
|
|
(99.9
|
)
|
||||||||||||
Dividends declared on common stock ($0.27 per share)
|
|
|
|
|
|
|
|
(134.6
|
)
|
|
|
|
(134.6
|
)
|
|
|
|
(134.6
|
)
|
||||||||||||
Repurchase of common stock
|
|
(2.9
|
)
|
|
(0.4
|
)
|
|
(41.7
|
)
|
|
(22.5
|
)
|
|
|
|
(64.6
|
)
|
|
|
|
(64.6
|
)
|
|||||||||
Issuance of common stock
|
|
0.6
|
|
|
0.1
|
|
|
15.9
|
|
|
|
|
|
|
16.0
|
|
|
|
|
16.0
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
25.8
|
|
|
|
|
|
|
25.8
|
|
|
|
|
25.8
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89.7
|
|
|
89.7
|
|
|||||||||||||
Deconsolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||||||||||||
Balance at March 31, 2020
|
|
495.3
|
|
|
$
|
49.5
|
|
|
$
|
—
|
|
|
$
|
10,330.0
|
|
|
$
|
(476.1
|
)
|
|
$
|
9,903.4
|
|
|
$
|
850.1
|
|
|
$
|
10,753.5
|
|
Net income (loss)
|
|
|
|
|
|
|
|
290.4
|
|
|
|
|
290.4
|
|
|
(68.0
|
)
|
|
222.4
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
26.0
|
|
|
26.0
|
|
|
|
|
26.0
|
|
||||||||||||
Dividends declared on common stock ($0.27 per share)
|
|
|
|
|
|
|
|
(134.6
|
)
|
|
|
|
(134.6
|
)
|
|
|
|
(134.6
|
)
|
||||||||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
(29.1
|
)
|
|
29.0
|
|
|
|
|
(0.1
|
)
|
|
|
|
(0.1
|
)
|
|||||||||
Issuance of common stock
|
|
0.1
|
|
|
—
|
|
|
1.0
|
|
|
|
|
|
|
1.0
|
|
|
|
|
1.0
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
28.1
|
|
|
|
|
|
|
28.1
|
|
|
|
|
28.1
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
107.4
|
|
|
107.4
|
|
|||||||||||||
Balance at June 30, 2020
|
|
495.4
|
|
|
$
|
49.5
|
|
|
$
|
—
|
|
|
$
|
10,514.8
|
|
|
$
|
(450.1
|
)
|
|
$
|
10,114.2
|
|
|
$
|
889.5
|
|
|
$
|
11,003.7
|
|
|
|
Franklin Resources, Inc.
|
|
Non-
redeemable
Non-
controlling
Interests
|
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||
|
Common Stock
|
|
Capital
in
Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accum-
ulated
Other
Compre-
hensive
Loss
|
|
Stockholders’
Equity
|
||||||||||||||||||||||
(in millions)
|
|||||||||||||||||||||||||||||||
for the nine months ended
June 30, 2019 |
Shares
|
|
Amount
|
||||||||||||||||||||||||||||
Balance at October 1, 2018
|
|
519.1
|
|
|
$
|
51.9
|
|
|
$
|
—
|
|
|
$
|
10,217.9
|
|
|
$
|
(370.6
|
)
|
|
$
|
9,899.2
|
|
|
$
|
308.7
|
|
|
$
|
10,207.9
|
|
Adoption of new accounting guidance
|
|
|
|
|
|
|
|
22.9
|
|
|
(8.0
|
)
|
|
14.9
|
|
|
|
|
14.9
|
|
|||||||||||
Net income (loss)
|
|
|
|
|
|
|
|
275.9
|
|
|
|
|
275.9
|
|
|
(0.5
|
)
|
|
275.4
|
|
|||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
(15.0
|
)
|
|
(15.0
|
)
|
|
|
|
(15.0
|
)
|
||||||||||||
Dividends declared on common stock ($0.26 per share)
|
|
|
|
|
|
|
|
(133.8
|
)
|
|
|
|
(133.8
|
)
|
|
|
|
(133.8
|
)
|
||||||||||||
Repurchase of common stock
|
|
(10.7
|
)
|
|
(1.1
|
)
|
|
(30.8
|
)
|
|
(295.0
|
)
|
|
|
|
(326.9
|
)
|
|
|
|
(326.9
|
)
|
|||||||||
Issuance of common stock
|
|
3.1
|
|
|
0.3
|
|
|
33.6
|
|
|
|
|
|
|
33.9
|
|
|
|
|
33.9
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
(2.8
|
)
|
|
|
|
|
|
(2.8
|
)
|
|
|
|
(2.8
|
)
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1
|
|
|
23.1
|
|
|||||||||||||
Balance at December 31, 2018
|
|
511.5
|
|
|
$
|
51.1
|
|
|
$
|
—
|
|
|
$
|
10,087.9
|
|
|
$
|
(393.6
|
)
|
|
$
|
9,745.4
|
|
|
$
|
331.3
|
|
|
$
|
10,076.7
|
|
Net income (loss)
|
|
|
|
|
|
|
|
367.5
|
|
|
|
|
367.5
|
|
|
(7.4
|
)
|
|
360.1
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
7.1
|
|
|
7.1
|
|
|
|
|
7.1
|
|
||||||||||||
Dividends declared on common stock ($0.26 per share)
|
|
|
|
|
|
|
|
(132.6
|
)
|
|
|
|
(132.6
|
)
|
|
|
|
(132.6
|
)
|
||||||||||||
Repurchase of common stock
|
|
(4.6
|
)
|
|
(0.4
|
)
|
|
(41.0
|
)
|
|
(103.3
|
)
|
|
|
|
(144.7
|
)
|
|
|
|
(144.7
|
)
|
|||||||||
Issuance of common stock
|
|
0.8
|
|
|
0.1
|
|
|
13.3
|
|
|
|
|
|
|
13.4
|
|
|
|
|
13.4
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
27.7
|
|
|
|
|
|
|
27.7
|
|
|
|
|
27.7
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51.0
|
|
|
51.0
|
|
|||||||||||||
Consolidation of investment product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.3
|
|
|
24.3
|
|
|||||||||||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216.1
|
|
|
216.1
|
|
|||||||||||||
Balance at March 31, 2019
|
|
507.7
|
|
|
$
|
50.8
|
|
|
$
|
—
|
|
|
$
|
10,219.5
|
|
|
$
|
(386.5
|
)
|
|
$
|
9,883.8
|
|
|
$
|
615.3
|
|
|
$
|
10,499.1
|
|
Net income
|
|
|
|
|
|
|
|
245.9
|
|
|
|
|
245.9
|
|
|
8.6
|
|
|
254.5
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
5.6
|
|
|
5.6
|
|
|
|
|
5.6
|
|
||||||||||||
Dividends declared on common stock ($0.26 per share)
|
|
|
|
|
|
|
|
(131.7
|
)
|
|
|
|
(131.7
|
)
|
|
|
|
(131.7
|
)
|
||||||||||||
Repurchase of common stock
|
|
(3.6
|
)
|
|
(0.4
|
)
|
|
(28.7
|
)
|
|
(92.2
|
)
|
|
|
|
(121.3
|
)
|
|
|
|
(121.3
|
)
|
|||||||||
Issuance of common stock
|
|
|
|
|
|
0.6
|
|
|
|
|
|
|
0.6
|
|
|
|
|
0.6
|
|
||||||||||||
Stock-based compensation
|
|
|
|
|
|
28.1
|
|
|
|
|
|
|
28.1
|
|
|
|
|
28.1
|
|
||||||||||||
Net subscriptions and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30.9
|
|
|
30.9
|
|
|||||||||||||
Balance at June 30, 2019
|
|
504.1
|
|
|
$
|
50.4
|
|
|
$
|
—
|
|
|
$
|
10,241.5
|
|
|
$
|
(380.9
|
)
|
|
$
|
9,911.0
|
|
|
$
|
654.8
|
|
|
$
|
10,565.8
|
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
|
||||||||
|
|
Nine Months Ended
June 30, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Net Income
|
|
$
|
660.6
|
|
|
$
|
896.2
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Amortization of deferred sales commissions
|
|
60.1
|
|
|
60.1
|
|
||
Depreciation and other amortization
|
|
72.4
|
|
|
67.4
|
|
||
Stock-based compensation
|
|
86.9
|
|
|
88.1
|
|
||
Losses (income) from investments in equity method investees
|
|
110.3
|
|
|
(15.1
|
)
|
||
Gain on swap agreements
|
|
(8.9
|
)
|
|
—
|
|
||
Net losses on investments of consolidated investment products
|
|
103.0
|
|
|
15.5
|
|
||
Net purchase of investments by consolidated investment products
|
|
(616.2
|
)
|
|
(1,047.6
|
)
|
||
Deferred income taxes
|
|
(34.5
|
)
|
|
(1.5
|
)
|
||
Other
|
|
10.5
|
|
|
27.1
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Decrease (increase) in receivables and other assets
|
|
50.9
|
|
|
(11.5
|
)
|
||
Increase in receivables of consolidated investment products
|
|
(52.9
|
)
|
|
(17.1
|
)
|
||
Decrease in investments, net
|
|
323.5
|
|
|
116.2
|
|
||
Decrease in operating lease right-of-use assets
|
|
21.2
|
|
|
—
|
|
||
Increase (decrease) in accrued compensation and benefits
|
|
(61.0
|
)
|
|
43.2
|
|
||
Decrease in commissions payable
|
|
(42.0
|
)
|
|
(34.5
|
)
|
||
Decrease in income taxes payable
|
|
(73.7
|
)
|
|
(184.7
|
)
|
||
Increase (decrease) in accounts payable, accrued expenses and other liabilities
|
|
(44.6
|
)
|
|
104.1
|
|
||
Increase in accounts payable and accrued expenses of consolidated investment products
|
|
100.8
|
|
|
63.4
|
|
||
Decrease in operating lease liabilities
|
|
(19.8
|
)
|
|
—
|
|
||
Net cash provided by operating activities
|
|
646.6
|
|
|
169.3
|
|
||
Purchase of investments
|
|
(416.9
|
)
|
|
(262.3
|
)
|
||
Liquidation of investments
|
|
529.3
|
|
|
195.2
|
|
||
Purchase of investments by consolidated collateralized loan obligations
|
|
(325.4
|
)
|
|
—
|
|
||
Liquidation of investments by consolidated collateralized loan obligations
|
|
105.4
|
|
|
—
|
|
||
Issuance of loans receivable, net
|
|
(57.4
|
)
|
|
—
|
|
||
Additions of property and equipment, net
|
|
(85.3
|
)
|
|
(202.6
|
)
|
||
Acquisitions, net of cash acquired
|
|
(81.8
|
)
|
|
(684.2
|
)
|
||
Net consolidation (deconsolidation) of investment products
|
|
601.2
|
|
|
(54.9
|
)
|
||
Net cash provided by (used in) investing activities
|
|
269.1
|
|
|
(1,008.8
|
)
|
FRANKLIN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
[Table continued from previous page]
|
||||||||
|
|
Nine Months Ended
June 30, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Issuance of common stock
|
|
$
|
12.1
|
|
|
$
|
12.8
|
|
Dividends paid on common stock
|
|
(399.1
|
)
|
|
(387.5
|
)
|
||
Repurchase of common stock
|
|
(188.3
|
)
|
|
(589.8
|
)
|
||
Proceeds from loan
|
|
0.2
|
|
|
1.7
|
|
||
Payments on loan
|
|
(0.4
|
)
|
|
(1.2
|
)
|
||
Proceeds from debt of consolidated investment products
|
|
206.5
|
|
|
—
|
|
||
Payments on debt by consolidated investment products
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||
Payments on contingent consideration liability
|
|
(0.1
|
)
|
|
(20.4
|
)
|
||
Noncontrolling interests
|
|
466.5
|
|
|
683.4
|
|
||
Net cash provided by (used in) financing activities
|
|
96.4
|
|
|
(302.0
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
6.2
|
|
|
(11.5
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
|
1,018.3
|
|
|
(1,153.0
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
5,957.6
|
|
|
6,910.6
|
|
||
Cash and Cash Equivalents, End of Period
|
|
$
|
6,975.9
|
|
|
$
|
5,757.6
|
|
|
|
|
|
|
||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
||||
Cash paid for income taxes
|
|
$
|
266.8
|
|
|
$
|
414.9
|
|
Cash paid for interest
|
|
12.2
|
|
|
16.5
|
|
||
Cash paid for interest by consolidated investment products
|
|
1.5
|
|
|
1.7
|
|
(in millions, except per share data)
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||
Net income attributable to Franklin Resources, Inc.
|
|
$
|
290.4
|
|
|
$
|
245.9
|
|
|
$
|
720.0
|
|
|
$
|
889.3
|
|
Less: allocation of earnings to participating nonvested stock and stock unit awards
|
|
4.2
|
|
|
2.6
|
|
|
9.7
|
|
|
8.8
|
|
||||
Net Income Available to Common Stockholders
|
|
$
|
286.2
|
|
|
$
|
243.3
|
|
|
$
|
710.3
|
|
|
$
|
880.5
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding – basic
|
|
490.4
|
|
|
501.6
|
|
|
492.2
|
|
|
505.6
|
|
||||
Dilutive effect of nonparticipating nonvested stock unit awards
|
|
0.3
|
|
|
0.7
|
|
|
0.5
|
|
|
0.5
|
|
||||
Weighted-Average Shares Outstanding – Diluted
|
|
490.7
|
|
|
502.3
|
|
|
492.7
|
|
|
506.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.44
|
|
|
$
|
1.74
|
|
Diluted
|
|
0.58
|
|
|
0.48
|
|
|
1.44
|
|
|
1.74
|
|
|
|
Earned From Contracts With Customers
|
|
Not Earned
From
Contracts
With
Customers1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding
United
States
|
|
Asia-Pacific
|
|
Europe,
Middle East
and Africa,
Excluding
Luxembourg
|
|||||||||||||||||||
for the three months ended
June 30, 2020 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
488.7
|
|
|
$
|
203.3
|
|
|
$
|
58.5
|
|
|
$
|
41.3
|
|
|
$
|
17.4
|
|
|
$
|
—
|
|
|
$
|
809.2
|
|
Sales and distribution fees
|
|
205.4
|
|
|
83.9
|
|
|
11.9
|
|
|
0.7
|
|
|
0.2
|
|
|
—
|
|
|
302.1
|
|
|||||||
Shareholder servicing fees
|
|
37.0
|
|
|
5.9
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
44.6
|
|
|||||||
Other
|
|
4.8
|
|
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
27.0
|
|
|
32.2
|
|
|||||||
Total
|
|
$
|
735.9
|
|
|
$
|
293.4
|
|
|
$
|
70.4
|
|
|
$
|
43.8
|
|
|
$
|
17.6
|
|
|
$
|
27.0
|
|
|
$
|
1,188.1
|
|
|
|
Earned From Contracts With Customers
|
|
Not Earned
From
Contracts
With
Customers1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding
United
States
|
|
Asia-Pacific
|
|
Europe,
Middle East
and Africa,
Excluding
Luxembourg
|
|||||||||||||||||||
for the nine months ended
June 30, 2020 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
1,590.7
|
|
|
$
|
691.9
|
|
|
$
|
201.7
|
|
|
$
|
151.4
|
|
|
$
|
61.4
|
|
|
$
|
—
|
|
|
$
|
2,697.1
|
|
Sales and distribution fees
|
|
675.1
|
|
|
277.5
|
|
|
39.6
|
|
|
2.2
|
|
|
0.9
|
|
|
—
|
|
|
995.3
|
|
|||||||
Shareholder servicing fees
|
|
123.1
|
|
|
19.4
|
|
|
0.2
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
149.4
|
|
|||||||
Other
|
|
16.9
|
|
|
0.9
|
|
|
—
|
|
|
0.4
|
|
|
1.5
|
|
|
77.6
|
|
|
97.3
|
|
|||||||
Total
|
|
$
|
2,405.8
|
|
|
$
|
989.7
|
|
|
$
|
241.5
|
|
|
$
|
160.7
|
|
|
$
|
63.8
|
|
|
$
|
77.6
|
|
|
$
|
3,939.1
|
|
|
|
Earned From Contracts With Customers
|
|
Not Earned
From
Contracts
With
Customers1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding
United
States
|
|
Asia-Pacific
|
|
Europe,
Middle East
and Africa,
Excluding
Luxembourg
|
|||||||||||||||||||
for the three months ended
June 30, 2019 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
585.7
|
|
|
$
|
269.6
|
|
|
$
|
79.3
|
|
|
$
|
62.3
|
|
|
$
|
22.5
|
|
|
$
|
—
|
|
|
$
|
1,019.4
|
|
Sales and distribution fees
|
|
240.4
|
|
|
111.1
|
|
|
15.5
|
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
367.5
|
|
|||||||
Shareholder servicing fees
|
|
42.3
|
|
|
7.7
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
52.7
|
|
|||||||
Other
|
|
6.1
|
|
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
2.3
|
|
|
28.3
|
|
|
37.1
|
|
|||||||
Total
|
|
$
|
874.5
|
|
|
$
|
388.7
|
|
|
$
|
94.8
|
|
|
$
|
65.3
|
|
|
$
|
25.1
|
|
|
$
|
28.3
|
|
|
$
|
1,476.7
|
|
|
|
Earned From Contracts With Customers
|
|
Not Earned
From
Contracts
With
Customers1
|
|
Total
|
||||||||||||||||||||||
(in millions)
|
United States
|
|
Luxembourg
|
|
Americas
Excluding
United
States
|
|
Asia-Pacific
|
|
Europe,
Middle East
and Africa,
Excluding
Luxembourg
|
|||||||||||||||||||
for the nine months ended
June 30, 2019 |
||||||||||||||||||||||||||||
Investment management fees
|
|
$
|
1,684.4
|
|
|
$
|
800.7
|
|
|
$
|
247.8
|
|
|
$
|
180.6
|
|
|
$
|
70.1
|
|
|
$
|
—
|
|
|
$
|
2,983.6
|
|
Sales and distribution fees
|
|
702.0
|
|
|
328.9
|
|
|
47.9
|
|
|
0.9
|
|
|
1.1
|
|
|
—
|
|
|
1,080.8
|
|
|||||||
Shareholder servicing fees
|
|
134.3
|
|
|
22.8
|
|
|
0.1
|
|
|
7.7
|
|
|
—
|
|
|
—
|
|
|
164.9
|
|
|||||||
Other
|
|
13.3
|
|
|
0.9
|
|
|
—
|
|
|
0.4
|
|
|
2.7
|
|
|
75.4
|
|
|
92.7
|
|
|||||||
Total
|
|
$
|
2,534.0
|
|
|
$
|
1,153.3
|
|
|
$
|
295.8
|
|
|
$
|
189.6
|
|
|
$
|
73.9
|
|
|
$
|
75.4
|
|
|
$
|
4,322.0
|
|
1
|
Consists of revenues of consolidated investment products.
|
(in millions)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Equity securities, at fair value
|
|
|
|
|
||||
Sponsored funds
|
|
$
|
396.6
|
|
|
$
|
466.4
|
|
Other equity securities
|
|
130.1
|
|
|
63.6
|
|
||
Total equity securities, at fair value
|
|
526.7
|
|
|
530.0
|
|
||
Debt securities
|
|
|
|
|
||||
Trading
|
|
43.6
|
|
|
44.2
|
|
||
Available-for-sale
|
|
1.8
|
|
|
4.0
|
|
||
Total debt securities
|
|
45.4
|
|
|
48.2
|
|
||
Investments in equity method investees
|
|
470.2
|
|
|
933.4
|
|
||
Other investments
|
|
92.7
|
|
|
44.2
|
|
||
Total
|
|
$
|
1,135.0
|
|
|
$
|
1,555.8
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical
Expedient
|
|
Total
|
||||||||||
as of June 30, 2020
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities, at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sponsored funds
|
|
$
|
338.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
58.6
|
|
|
$
|
396.6
|
|
Other equity securities
|
|
10.4
|
|
|
10.8
|
|
|
0.8
|
|
|
108.1
|
|
|
130.1
|
|
|||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading
|
|
—
|
|
|
26.4
|
|
|
17.2
|
|
|
—
|
|
|
43.6
|
|
|||||
Available-for-sale
|
|
—
|
|
|
1.8
|
|
|
|
|
—
|
|
|
1.8
|
|
||||||
Derivative asset
|
|
—
|
|
|
22.3
|
|
|
—
|
|
|
—
|
|
|
22.3
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
348.4
|
|
|
$
|
61.3
|
|
|
$
|
18.0
|
|
|
$
|
166.7
|
|
|
$
|
594.4
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contingent consideration liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24.4
|
|
|
$
|
—
|
|
|
$
|
24.4
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical Expedient |
|
Total
|
||||||||||
as of September 30, 2019
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities, at fair value
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sponsored funds
|
|
$
|
397.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69.4
|
|
|
$
|
466.4
|
|
Other equity securities
|
|
22.6
|
|
|
3.2
|
|
|
0.8
|
|
|
37.0
|
|
|
63.6
|
|
|||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading
|
|
—
|
|
|
24.4
|
|
|
19.8
|
|
|
—
|
|
|
44.2
|
|
|||||
Available-for-sale
|
|
—
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|||||
Life settlement contracts
|
|
—
|
|
|
—
|
|
|
11.5
|
|
|
—
|
|
|
11.5
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
419.6
|
|
|
$
|
31.6
|
|
|
$
|
32.1
|
|
|
$
|
106.4
|
|
|
$
|
589.7
|
|
|
|
2020
|
|
2019
|
||||||||
(in millions)
|
|
Investments
|
|
Contingent
Consideration Liabilities |
|
Investments
|
||||||
for the three months ended June 30,
|
|
|
|
|||||||||
Balance at beginning of period
|
|
$
|
27.7
|
|
|
$
|
(7.6
|
)
|
|
$
|
33.9
|
|
Acquisitions
|
|
—
|
|
|
(16.7
|
)
|
|
—
|
|
|||
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
||||||
Included in investment and other income (losses), net
|
|
0.8
|
|
|
—
|
|
|
2.7
|
|
|||
Included in general, administrative and other expense
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|||
Purchases
|
|
2.3
|
|
|
—
|
|
|
3.7
|
|
|||
Sales
|
|
(10.5
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||
Settlements
|
|
(2.3
|
)
|
|
0.1
|
|
|
(2.5
|
)
|
|||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
(5.0
|
)
|
|||
Balance at End of Period
|
|
$
|
18.0
|
|
|
$
|
(24.4
|
)
|
|
$
|
32.4
|
|
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period
|
|
$
|
0.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
0.4
|
|
|
|
2020
|
|
2019
|
||||||||||||
(in millions)
|
|
Investments
|
|
Contingent
Consideration Liabilities |
|
Investments
|
|
Contingent
Consideration Liability |
||||||||
for the nine months ended June 30,
|
|
|
|
|
||||||||||||
Balance at beginning of period
|
|
$
|
32.1
|
|
|
$
|
—
|
|
|
$
|
32.6
|
|
|
$
|
(38.7
|
)
|
Acquisitions
|
|
—
|
|
|
(24.3
|
)
|
|
—
|
|
|
—
|
|
||||
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
|
|
||||||||
Included in investment and other income (losses), net
|
|
0.1
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
||||
Included in general, administrative and other expense
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(2.0
|
)
|
||||
Purchases
|
|
14.9
|
|
|
—
|
|
|
8.7
|
|
|
—
|
|
||||
Sales
|
|
(14.0
|
)
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
||||
Settlements
|
|
(5.1
|
)
|
|
0.1
|
|
|
(3.4
|
)
|
|
40.7
|
|
||||
Consolidation of investment product
|
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
(7.1
|
)
|
|
—
|
|
||||
Balance at End of Period
|
|
$
|
18.0
|
|
|
$
|
(24.4
|
)
|
|
$
|
32.4
|
|
|
$
|
—
|
|
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period
|
|
$
|
(0.9
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
3.4
|
|
|
$
|
—
|
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2019
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average1)
|
||
Debt securities, trading
|
|
$
|
19.8
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.7%–13.3% (6.7%)
|
Risk premium
|
|
2.0%–6.1% (4.2%)
|
||||||||
|
|
|
|
|
|
|
|
|
||
Life settlement contracts
|
|
11.5
|
|
|
Discounted cash flow
|
|
Life expectancy
|
|
19–107 months (57)
|
|
Discount rate
|
|
8.0%–20.0% (13.2%)
|
1
|
Based on the relative fair value of the instruments.
|
(in millions)
|
|
Fair Value
Level
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||||||
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
6,358.7
|
|
|
$
|
6,358.7
|
|
|
$
|
5,803.4
|
|
|
$
|
5,803.4
|
|
Other investments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
|
2
|
|
16.6
|
|
|
16.6
|
|
|
15.4
|
|
|
15.4
|
|
||||
Equity securities
|
|
3
|
|
76.1
|
|
|
81.7
|
|
|
17.3
|
|
|
19.2
|
|
||||
Loans receivable
|
|
3
|
|
58.0
|
|
|
58.0
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liability
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
2
|
|
$
|
697.2
|
|
|
$
|
747.1
|
|
|
$
|
696.9
|
|
|
$
|
718.7
|
|
(in millions)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
617.2
|
|
|
$
|
154.2
|
|
Receivables
|
|
117.5
|
|
|
99.0
|
|
||
Investments, at fair value
|
|
2,274.3
|
|
|
2,303.9
|
|
||
Total Assets
|
|
$
|
3,009.0
|
|
|
$
|
2,557.1
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
$
|
154.6
|
|
|
$
|
81.5
|
|
Debt
|
|
685.6
|
|
|
50.8
|
|
||
Other liabilities
|
|
1.9
|
|
|
—
|
|
||
Total liabilities
|
|
842.1
|
|
|
132.3
|
|
||
Redeemable Noncontrolling Interests
|
|
713.8
|
|
|
746.7
|
|
||
Stockholders’ Equity
|
|
|
|
|
||||
Franklin Resources, Inc.’s interests
|
|
734.5
|
|
|
1,129.6
|
|
||
Nonredeemable noncontrolling interests
|
|
718.6
|
|
|
548.5
|
|
||
Total stockholders’ equity
|
|
1,453.1
|
|
|
1,678.1
|
|
||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity
|
|
$
|
3,009.0
|
|
|
$
|
2,557.1
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical Expedient |
|
Total
|
||||||||||
as of June 30, 2020
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents of CLOs
|
|
$
|
22.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22.2
|
|
Receivables of CLOs
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|||||
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
186.2
|
|
|
$
|
71.7
|
|
|
$
|
393.6
|
|
|
$
|
239.8
|
|
|
$
|
891.3
|
|
Debt securities
|
|
1.5
|
|
|
395.0
|
|
|
85.0
|
|
|
—
|
|
|
481.5
|
|
|||||
Loans
|
|
—
|
|
|
588.3
|
|
|
8.9
|
|
|
—
|
|
|
597.2
|
|
|||||
Real estate
|
|
—
|
|
|
—
|
|
|
304.3
|
|
|
—
|
|
|
304.3
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
209.9
|
|
|
$
|
1,057.1
|
|
|
$
|
791.8
|
|
|
$
|
239.8
|
|
|
$
|
2,298.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other liabilities
|
|
$
|
1.8
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV as a
Practical Expedient |
|
Total
|
||||||||||
as of September 30, 2019
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
195.1
|
|
|
$
|
223.9
|
|
|
$
|
296.4
|
|
|
$
|
204.1
|
|
|
$
|
919.5
|
|
Debt securities
|
|
0.1
|
|
|
1,083.6
|
|
|
131.4
|
|
|
—
|
|
|
1,215.1
|
|
|||||
Loans
|
|
—
|
|
|
—
|
|
|
16.6
|
|
|
—
|
|
|
16.6
|
|
|||||
Real estate
|
|
—
|
|
|
—
|
|
|
152.7
|
|
|
—
|
|
|
152.7
|
|
|||||
Total Assets Measured at Fair Value
|
|
$
|
195.2
|
|
|
$
|
1,307.5
|
|
|
$
|
597.1
|
|
|
$
|
204.1
|
|
|
$
|
2,303.9
|
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Real Estate
|
|
Loans
|
|
Total
Level 3 Assets |
||||||||||
for the three months ended June 30, 2020
|
||||||||||||||||||||
Balance at April 1, 2020
|
|
$
|
351.6
|
|
|
$
|
80.9
|
|
|
$
|
288.0
|
|
|
$
|
11.0
|
|
|
$
|
731.5
|
|
Realized and unrealized gains (losses) included in investment and other income (losses), net
|
|
(26.0
|
)
|
|
2.3
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(24.5
|
)
|
|||||
Purchases
|
|
120.5
|
|
|
2.6
|
|
|
12.1
|
|
|
—
|
|
|
135.2
|
|
|||||
Sales and settlements
|
|
(50.3
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
(53.2
|
)
|
|||||
Transfers out of Level 3
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||||
Foreign exchange revaluation
|
|
(2.2
|
)
|
|
0.5
|
|
|
4.6
|
|
|
—
|
|
|
2.9
|
|
|||||
Balance at June 30, 2020
|
|
$
|
393.6
|
|
|
$
|
85.0
|
|
|
$
|
304.3
|
|
|
$
|
8.9
|
|
|
$
|
791.8
|
|
Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2020
|
|
$
|
(25.1
|
)
|
|
$
|
2.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(23.6
|
)
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Real Estate
|
|
Loans
|
|
Total
Level 3 Assets |
||||||||||
for the nine months ended June 30, 2020
|
||||||||||||||||||||
Balance at October 1, 2019
|
|
$
|
296.4
|
|
|
$
|
131.4
|
|
|
$
|
152.7
|
|
|
$
|
16.6
|
|
|
$
|
597.1
|
|
Realized and unrealized losses included in investment and other income (losses), net
|
|
(36.0
|
)
|
|
(12.0
|
)
|
|
(1.3
|
)
|
|
(1.8
|
)
|
|
(51.1
|
)
|
|||||
Purchases
|
|
188.9
|
|
|
6.9
|
|
|
153.7
|
|
|
—
|
|
|
349.5
|
|
|||||
Sales and settlements
|
|
(53.6
|
)
|
|
(2.3
|
)
|
|
—
|
|
|
(5.9
|
)
|
|
(61.8
|
)
|
|||||
Deconsolidation
|
|
—
|
|
|
(40.7
|
)
|
|
—
|
|
|
—
|
|
|
(40.7
|
)
|
|||||
Transfers into Level 3
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|||||
Transfers out of Level 3
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||||
Foreign exchange revaluation
|
|
(2.1
|
)
|
|
0.6
|
|
|
(0.8
|
)
|
|
—
|
|
|
(2.3
|
)
|
|||||
Balance at June 30, 2020
|
|
$
|
393.6
|
|
|
$
|
85.0
|
|
|
$
|
304.3
|
|
|
$
|
8.9
|
|
|
$
|
791.8
|
|
Change in unrealized losses included in net income relating to assets held at June 30, 2020
|
|
$
|
(35.1
|
)
|
|
$
|
(12.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
(50.2
|
)
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Real Estate
|
|
Loans
|
|
Total
Level 3 Assets |
||||||||||
for the three months ended June 30, 2019
|
||||||||||||||||||||
Balance at April 1, 2019
|
|
$
|
257.6
|
|
|
$
|
131.7
|
|
|
$
|
29.1
|
|
|
$
|
38.4
|
|
|
$
|
456.8
|
|
Realized and unrealized gains (losses) included in investment and other income (losses), net
|
|
0.5
|
|
|
8.6
|
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
8.2
|
|
|||||
Purchases
|
|
38.8
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
39.8
|
|
|||||
Sales
|
|
(29.4
|
)
|
|
—
|
|
|
—
|
|
|
(13.8
|
)
|
|
(43.2
|
)
|
|||||
Foreign exchange revaluation
|
|
0.1
|
|
|
0.3
|
|
|
0.2
|
|
|
—
|
|
|
0.6
|
|
|||||
Balance at June 30, 2019
|
|
$
|
267.6
|
|
|
$
|
140.6
|
|
|
$
|
29.1
|
|
|
$
|
24.9
|
|
|
$
|
462.2
|
|
Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2019
|
|
$
|
(13.3
|
)
|
|
$
|
8.8
|
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
|
$
|
(4.7
|
)
|
(in millions)
|
|
Equity
Securities |
|
Debt
Securities |
|
Real Estate
|
|
Loans
|
|
Total
Level 3 Assets |
||||||||||
for the nine months ended June 30, 2019
|
||||||||||||||||||||
Balance at October 1, 2018
|
|
$
|
199.7
|
|
|
$
|
118.0
|
|
|
$
|
—
|
|
|
$
|
32.3
|
|
|
$
|
350.0
|
|
Acquisition
|
|
45.2
|
|
|
39.7
|
|
|
—
|
|
|
—
|
|
|
84.9
|
|
|||||
Realized and unrealized gains (losses) included in investment and other income (losses), net
|
|
7.4
|
|
|
(2.4
|
)
|
|
3.2
|
|
|
(2.2
|
)
|
|
6.0
|
|
|||||
Purchases
|
|
74.2
|
|
|
9.4
|
|
|
25.6
|
|
|
9.2
|
|
|
118.4
|
|
|||||
Sales and settlements
|
|
(30.8
|
)
|
|
(20.2
|
)
|
|
—
|
|
|
(14.4
|
)
|
|
(65.4
|
)
|
|||||
Transfers into Level 3
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Transfers out of Level 3
|
|
(25.4
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
(29.0
|
)
|
|||||
Foreign exchange revaluation
|
|
(2.8
|
)
|
|
(0.3
|
)
|
|
0.3
|
|
|
—
|
|
|
(2.8
|
)
|
|||||
Balance at June 30, 2019
|
|
$
|
267.6
|
|
|
$
|
140.6
|
|
|
$
|
29.1
|
|
|
$
|
24.9
|
|
|
$
|
462.2
|
|
Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2019
|
|
$
|
(6.3
|
)
|
|
$
|
4.9
|
|
|
$
|
3.2
|
|
|
$
|
(0.8
|
)
|
|
$
|
1.0
|
|
(in millions)
|
|
|
|
|
|
|
|
|
||
as of September 30, 2019
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range (Weighted Average1)
|
||
Equity securities
|
|
$
|
97.2
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
4.8%–16.3% (10.3%)
|
Discount for lack of marketability
|
|
17.0%
|
||||||||
176.9
|
|
Market comparable companies
|
|
Enterprise value/
EBITDA multiple |
|
4.5–11.8 (8.1)
|
||||
Discount for lack of marketability
|
|
15.0%–30.0% (23.1%)
|
||||||||
Risk premium
|
|
18.9%
|
||||||||
Enterprise value/
Revenue multiple |
|
3.7
|
||||||||
|
22.3
|
|
|
Market pricing
|
|
Private sale pricing
|
|
$0.25–$20.13 ($2.06) per share
|
||
|
|
|
|
|
|
|
|
|
||
Debt securities
|
|
115.5
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
4.8%–17.4% (9.7%)
|
|
Discount for lack of marketability
|
17.0%–24.7% (22.9%)
|
|||||||||
15.9
|
|
Market comparable companies
|
Price-to-earnings ratio
|
10.0
|
||||||
Enterprise value/
EBITDA multiple |
21.9
|
|||||||||
|
|
|
|
|
|
|
|
|
||
Real estate
|
|
84.7
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
6.4%–7.4% (7.1%)
|
|
68.0
|
|
Yield capitalization
|
|
Equivalent yield
|
|
4.3%–6.1% (5.4%)
|
||||
|
|
|
|
|
|
|
|
|
||
Loans
|
|
16.6
|
|
|
Discounted cash flow
|
|
Loss-adjusted discount rate
|
|
3.0%–23.9% (12.0%)
|
1
|
Based on the relative fair value of the instruments.
|
(in millions)
|
|
Fair Value
Level
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||||||
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
|
Carrying
Value
|
|
Estimated
Fair Value
|
||||||||||
Financial Asset
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
595.0
|
|
|
$
|
595.0
|
|
|
$
|
154.2
|
|
|
$
|
154.2
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt of CLOs
|
|
2
|
|
$
|
537.3
|
|
|
$
|
548.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other debt
|
|
3
|
|
148.3
|
|
|
151.2
|
|
|
50.8
|
|
|
51.0
|
|
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||
(in millions)
|
|
Amount
|
|
Weighted-
Average
Effective
Interest Rate
|
|
Amount
|
|
Weighted-
Average Effective Interest Rate |
||||
Debt of CLOs
|
|
$
|
537.3
|
|
|
3.61%
|
|
$
|
—
|
|
|
N/A
|
Other debt
|
|
148.3
|
|
|
3.08%
|
|
50.8
|
|
|
5.09%
|
||
Total
|
|
$
|
685.6
|
|
|
|
|
$
|
50.8
|
|
|
|
(in millions)
|
|
|
||
for the fiscal years ending September 30,
|
Amount
|
|||
2020 (remainder of year)
|
|
$
|
23.3
|
|
2021
|
|
146.4
|
|
|
2022
|
|
—
|
|
|
2023
|
|
—
|
|
|
2024
|
|
32.8
|
|
|
Thereafter
|
|
483.1
|
|
|
Total
|
|
$
|
685.6
|
|
(in millions)
|
|
|
|
|
||||
for the nine months ended June 30,
|
|
2020
|
|
2019
|
||||
Balance at beginning of period
|
|
$
|
746.7
|
|
|
$
|
1,043.6
|
|
Net income
|
|
11.8
|
|
|
6.2
|
|
||
Net subscriptions and other
|
|
241.2
|
|
|
578.4
|
|
||
Net deconsolidations
|
|
(285.9
|
)
|
|
(821.7
|
)
|
||
Balance at End of Period
|
|
$
|
713.8
|
|
|
$
|
806.5
|
|
(in millions)
|
|
Amount
|
||
Unpaid principal balance
|
|
$
|
679.7
|
|
Difference between unpaid principal balance and fair value
|
|
(91.4
|
)
|
|
Fair Value
|
|
$
|
588.3
|
|
(in millions)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Investments
|
|
$
|
347.9
|
|
|
$
|
458.1
|
|
Receivables
|
|
137.6
|
|
|
149.5
|
|
||
Loans receivable
|
|
58.0
|
|
|
—
|
|
||
Total
|
|
$
|
543.5
|
|
|
$
|
607.6
|
|
|
|
Three Months Ended
June 30, 2020 |
|
Nine Months Ended
June 30, 2020 |
||||
(in millions)
|
|
|||||||
Operating lease cost1
|
|
$
|
14.5
|
|
|
$
|
42.6
|
|
Finance lease cost
|
|
0.1
|
|
|
0.4
|
|
||
Variable lease cost2
|
|
—
|
|
|
0.5
|
|
||
Total lease expense
|
|
$
|
14.6
|
|
|
$
|
43.5
|
|
1
|
Substantially all is included in occupancy expense.
|
2
|
Consists of operating lease payments.
|
(in millions)
|
|
|
||
for the fiscal years ending September 30,
|
|
Amount
|
||
2020
|
|
$
|
49.5
|
|
2021
|
|
45.3
|
|
|
2022
|
|
40.9
|
|
|
2023
|
|
39.1
|
|
|
2024
|
|
36.7
|
|
|
Thereafter
|
|
149.1
|
|
|
Total Minimum Lease Payments
|
|
$
|
360.6
|
|
(in millions)
|
|
Amount
|
||
for the fiscal years ending September 30,
|
|
|||
2020 (remainder of year)
|
|
$
|
8.1
|
|
2021
|
|
31.0
|
|
|
2022
|
|
28.0
|
|
|
2023
|
|
28.0
|
|
|
2024
|
|
29.0
|
|
|
Thereafter
|
|
99.3
|
|
|
Total
|
|
$
|
223.4
|
|
(shares in thousands)
|
|
Time-Based
Shares
|
|
Performance-
Based Shares
|
|
Total
Shares
|
|
Weighted-
Average
Grant-Date
Fair Value
|
|||||
for the nine months ended June 30, 2020
|
|
|
|
|
|||||||||
Nonvested balance at October 1, 2019
|
|
3,778
|
|
|
1,854
|
|
|
5,632
|
|
|
$
|
34.06
|
|
Granted
|
|
4,684
|
|
|
135
|
|
|
4,819
|
|
|
27.44
|
|
|
Vested
|
|
(553
|
)
|
|
(374
|
)
|
|
(927
|
)
|
|
34.30
|
|
|
Forfeited/canceled
|
|
(288
|
)
|
|
(542
|
)
|
|
(830
|
)
|
|
33.64
|
|
|
Nonvested Balance at June 30, 2020
|
|
7,621
|
|
|
1,073
|
|
|
8,694
|
|
|
$
|
30.41
|
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Investment and Other Income (Losses), Net
|
|
|
|
|
|
|
|
|
||||||||
Dividend income
|
|
$
|
5.5
|
|
|
$
|
24.2
|
|
|
$
|
44.1
|
|
|
$
|
74.0
|
|
Interest income
|
|
2.3
|
|
|
7.2
|
|
|
11.4
|
|
|
24.7
|
|
||||
Gains (losses) on investments, net
|
|
42.3
|
|
|
0.3
|
|
|
(29.3
|
)
|
|
(16.1
|
)
|
||||
Income (losses) from investments in equity method investees
|
|
10.0
|
|
|
5.5
|
|
|
(110.3
|
)
|
|
15.1
|
|
||||
Gains (losses) on swap agreements
|
|
(20.2
|
)
|
|
—
|
|
|
8.9
|
|
|
—
|
|
||||
Gains (losses) on investments of CIPs, net
|
|
(26.7
|
)
|
|
1.7
|
|
|
(103.0
|
)
|
|
(15.5
|
)
|
||||
Rental income
|
|
7.7
|
|
|
4.7
|
|
|
23.0
|
|
|
14.6
|
|
||||
Foreign currency exchange (losses) gains, net
|
|
(0.6
|
)
|
|
0.1
|
|
|
(11.5
|
)
|
|
7.3
|
|
||||
Other, net
|
|
2.6
|
|
|
0.5
|
|
|
0.2
|
|
|
(0.3
|
)
|
||||
Total
|
|
22.9
|
|
|
44.2
|
|
|
(166.5
|
)
|
|
103.8
|
|
||||
Interest Expense
|
|
(6.8
|
)
|
|
(5.6
|
)
|
|
(17.7
|
)
|
|
(17.7
|
)
|
||||
Other Income (Expenses), Net
|
|
$
|
16.1
|
|
|
$
|
38.6
|
|
|
$
|
(184.2
|
)
|
|
$
|
86.1
|
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains on Investments |
|
Total
|
||||||||
for the three months ended June 30, 2020
|
|
|
|
|
||||||||||||
Balance at April 1, 2020
|
|
$
|
(469.9
|
)
|
|
$
|
(6.4
|
)
|
|
$
|
0.2
|
|
|
$
|
(476.1
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
|
26.1
|
|
|
—
|
|
|
(0.5
|
)
|
|
25.6
|
|
||||
Reclassifications to net investment and other income (losses), net of tax
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
||||
Total other comprehensive income (loss)
|
|
26.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
26.0
|
|
||||
Balance at June 30, 2020
|
|
$
|
(443.8
|
)
|
|
$
|
(6.4
|
)
|
|
$
|
0.1
|
|
|
$
|
(450.1
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains on Investments |
|
Total
|
||||||||
for the nine months ended June 30, 2020
|
|
|
|
|
||||||||||||
Balance at October 1, 2019
|
|
$
|
(425.4
|
)
|
|
$
|
(6.2
|
)
|
|
$
|
—
|
|
|
$
|
(431.6
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications, net of tax
|
|
(18.8
|
)
|
|
(0.2
|
)
|
|
(0.5
|
)
|
|
(19.5
|
)
|
||||
Reclassifications to net investment and other income (losses), net of tax
|
|
0.4
|
|
|
|
|
|
0.6
|
|
|
1.0
|
|
||||
Total other comprehensive income (loss)
|
|
(18.4
|
)
|
|
(0.2
|
)
|
|
0.1
|
|
|
(18.5
|
)
|
||||
Balance at June 30, 2020
|
|
$
|
(443.8
|
)
|
|
$
|
(6.4
|
)
|
|
$
|
0.1
|
|
|
$
|
(450.1
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains (Losses) on Investments |
|
Total
|
||||||||
for the three months ended June 30, 2019
|
|
|
|
|
||||||||||||
Balance at April 1, 2019
|
|
$
|
(379.6
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(386.5
|
)
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
|
1.9
|
|
|
0.1
|
|
|
(4.9
|
)
|
|
(2.9
|
)
|
||||
Reclassifications to net investment and other income (losses), net of tax
|
|
—
|
|
|
—
|
|
|
8.5
|
|
|
8.5
|
|
||||
Total other comprehensive income
|
|
1.9
|
|
|
0.1
|
|
|
3.6
|
|
|
5.6
|
|
||||
Balance at June 30, 2019
|
|
$
|
(377.7
|
)
|
|
$
|
(5.2
|
)
|
|
$
|
2.0
|
|
|
$
|
(380.9
|
)
|
(in millions)
|
|
Currency
Translation Adjustments |
|
Unrealized
Losses on Defined Benefit Plans |
|
Unrealized
Gains on Investments |
|
Total
|
||||||||
for the nine months ended June 30, 2019
|
|
|
|
|
||||||||||||
Balance at October 1, 2018
|
|
$
|
(372.9
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
6.5
|
|
|
$
|
(370.6
|
)
|
Adoption of new accounting guidance
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
(8.0
|
)
|
||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications, net of tax
|
|
(4.9
|
)
|
|
(1.0
|
)
|
|
(5.0
|
)
|
|
(10.9
|
)
|
||||
Reclassifications to net investment and other income (losses), net of tax
|
|
0.1
|
|
|
—
|
|
|
8.5
|
|
|
8.6
|
|
||||
Total other comprehensive income (loss)
|
|
(4.8
|
)
|
|
(1.0
|
)
|
|
3.5
|
|
|
(2.3
|
)
|
||||
Balance at June 30, 2019
|
|
$
|
(377.7
|
)
|
|
$
|
(5.2
|
)
|
|
$
|
2.0
|
|
|
$
|
(380.9
|
)
|
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change
|
||||||||||||||
(in millions, except per share data)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Operating revenues
|
|
$
|
1,188.1
|
|
|
$
|
1,476.7
|
|
|
(20
|
%)
|
|
$
|
3,939.1
|
|
|
$
|
4,322.0
|
|
|
(9
|
%)
|
Operating income
|
|
253.7
|
|
|
374.9
|
|
|
(32
|
%)
|
|
1,002.5
|
|
|
1,165.9
|
|
|
(14
|
%)
|
||||
Net income attributable to Franklin Resources, Inc.
|
|
290.4
|
|
|
245.9
|
|
|
18
|
%
|
|
720.0
|
|
|
889.3
|
|
|
(19
|
%)
|
||||
Diluted earnings per share
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
21
|
%
|
|
$
|
1.44
|
|
|
$
|
1.74
|
|
|
(17
|
%)
|
Operating margin1
|
|
21.4
|
%
|
|
25.4
|
%
|
|
|
|
25.4
|
%
|
|
27.0
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As adjusted (non-GAAP):2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted operating income
|
|
$
|
270.8
|
|
|
$
|
430.7
|
|
|
(37
|
%)
|
|
$
|
1,062.2
|
|
|
$
|
1,247.4
|
|
|
(15
|
%)
|
Adjusted operating margin
|
|
34.0
|
%
|
|
43.4
|
%
|
|
|
|
40.2
|
%
|
|
42.8
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted net income
|
|
$
|
348.9
|
|
|
$
|
281.5
|
|
|
24
|
%
|
|
$
|
1,020.0
|
|
|
$
|
972.9
|
|
|
5
|
%
|
Adjusted diluted earnings per share
|
|
$
|
0.70
|
|
|
$
|
0.55
|
|
|
27
|
%
|
|
$
|
2.04
|
|
|
$
|
1.90
|
|
|
7
|
%
|
1
|
Defined as operating income divided by total operating revenues.
|
2
|
“Adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share” are based on methodologies other than generally accepted accounting principles. See “Supplemental Non-GAAP Financial Measures” for definitions and reconciliations of these measures.
|
(in billions)
|
|
June 30,
2020 |
|
June 30,
2019 |
|
Percent
Change
|
|||||
Equity
|
|
|
|
|
|
|
|||||
Global/international
|
|
$
|
127.4
|
|
|
$
|
169.8
|
|
|
(25
|
%)
|
United States
|
|
115.6
|
|
|
112.4
|
|
|
3
|
%
|
||
Total equity
|
|
243.0
|
|
|
282.2
|
|
|
(14
|
%)
|
||
Multi-Asset/Balanced
|
|
129.3
|
|
|
136.0
|
|
|
(5
|
%)
|
||
Fixed Income
|
|
|
|
|
|
|
|||||
Tax-free
|
|
66.3
|
|
|
65.0
|
|
|
2
|
%
|
||
Taxable
|
|
|
|
|
|
|
|||||
Global/international
|
|
106.6
|
|
|
154.9
|
|
|
(31
|
%)
|
||
United States
|
|
67.2
|
|
|
67.9
|
|
|
(1
|
%)
|
||
Total fixed income
|
|
240.1
|
|
|
287.8
|
|
|
(17
|
%)
|
||
Cash Management
|
|
10.4
|
|
|
9.2
|
|
|
13
|
%
|
||
Total
|
|
$
|
622.8
|
|
|
$
|
715.2
|
|
|
(13
|
%)
|
(in billions)
|
|
Average AUM
|
|
Percent
Change
|
|
Mix of Average AUM
|
|||||||||||
for the three months ended June 30,
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
$
|
122.6
|
|
|
$
|
170.8
|
|
|
(28
|
%)
|
|
20
|
%
|
|
24
|
%
|
United States
|
|
106.3
|
|
|
110.3
|
|
|
(4
|
%)
|
|
18
|
%
|
|
16
|
%
|
||
Total equity
|
|
228.9
|
|
|
281.1
|
|
|
(19
|
%)
|
|
38
|
%
|
|
40
|
%
|
||
Multi-Asset/Balanced
|
|
124.8
|
|
|
134.4
|
|
|
(7
|
%)
|
|
21
|
%
|
|
19
|
%
|
||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tax-free
|
|
65.0
|
|
|
64.2
|
|
|
1
|
%
|
|
11
|
%
|
|
9
|
%
|
||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
109.5
|
|
|
153.7
|
|
|
(29
|
%)
|
|
18
|
%
|
|
22
|
%
|
||
United States
|
|
66.5
|
|
|
68.2
|
|
|
(2
|
%)
|
|
11
|
%
|
|
9
|
%
|
||
Total fixed income
|
|
241.0
|
|
|
286.1
|
|
|
(16
|
%)
|
|
40
|
%
|
|
40
|
%
|
||
Cash Management
|
|
10.3
|
|
|
9.2
|
|
|
12
|
%
|
|
1
|
%
|
|
1
|
%
|
||
Total
|
|
$
|
605.0
|
|
|
$
|
710.8
|
|
|
(15
|
%)
|
|
100
|
%
|
|
100
|
%
|
(in billions)
|
|
Average AUM
|
|
Percent
Change
|
|
Mix of Average AUM
|
|||||||||||
for the nine months ended June 30,
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global/international
|
|
$
|
143.0
|
|
|
$
|
175.5
|
|
|
(19
|
%)
|
|
22
|
%
|
|
25
|
%
|
United States
|
|
110.7
|
|
|
108.1
|
|
|
2
|
%
|
|
17
|
%
|
|
16
|
%
|
||
Total equity
|
|
253.7
|
|
|
283.6
|
|
|
(11
|
%)
|
|
39
|
%
|
|
41
|
%
|
||
Multi-Asset/Balanced
|
|
130.1
|
|
|
133.1
|
|
|
(2
|
%)
|
|
20
|
%
|
|
19
|
%
|
||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tax-free
|
|
66.3
|
|
|
63.2
|
|
|
5
|
%
|
|
10
|
%
|
|
9
|
%
|
||
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Global/international
|
|
126.6
|
|
|
151.8
|
|
|
(17
|
%)
|
|
20
|
%
|
|
22
|
%
|
||
United States
|
|
67.0
|
|
|
55.8
|
|
|
20
|
%
|
|
10
|
%
|
|
8
|
%
|
||
Total fixed income
|
|
259.9
|
|
|
270.8
|
|
|
(4
|
%)
|
|
40
|
%
|
|
39
|
%
|
||
Cash Management
|
|
10.3
|
|
|
9.4
|
|
|
10
|
%
|
|
1
|
%
|
|
1
|
%
|
||
Total
|
|
$
|
654.0
|
|
|
$
|
696.9
|
|
|
(6
|
%)
|
|
100
|
%
|
|
100
|
%
|
(in billions)
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change
|
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||||
Beginning AUM
|
|
$
|
580.3
|
|
|
$
|
712.3
|
|
|
(19
|
%)
|
|
$
|
692.6
|
|
|
$
|
717.1
|
|
|
(3
|
%)
|
Long-term sales
|
|
21.9
|
|
|
28.4
|
|
|
(23
|
%)
|
|
72.3
|
|
|
77.1
|
|
|
(6
|
%)
|
||||
Long-term redemptions
|
|
(36.7
|
)
|
|
(38.2
|
)
|
|
(4
|
%)
|
|
(136.7
|
)
|
|
(116.8
|
)
|
|
17
|
%
|
||||
Long-term net exchanges
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
(1.6
|
)
|
|
(0.5
|
)
|
|
220
|
%
|
||||
Long-term reinvested distributions
|
|
3.5
|
|
|
4.4
|
|
|
(20
|
%)
|
|
17.0
|
|
|
21.2
|
|
|
(20
|
%)
|
||||
Net flows
|
|
(11.3
|
)
|
|
(5.4
|
)
|
|
109
|
%
|
|
(49.0
|
)
|
|
(19.0
|
)
|
|
158
|
%
|
||||
Acquisitions
|
|
3.5
|
|
|
—
|
|
|
NM
|
|
|
9.1
|
|
|
26.4
|
|
|
(66
|
%)
|
||||
Net market change, distributions and other
|
|
50.3
|
|
|
8.3
|
|
|
506
|
%
|
|
(29.9
|
)
|
|
(9.3
|
)
|
|
222
|
%
|
||||
Ending AUM
|
|
$
|
622.8
|
|
|
$
|
715.2
|
|
|
(13
|
%)
|
|
$
|
622.8
|
|
|
$
|
715.2
|
|
|
(13
|
%)
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the three months ended
June 30, 2020 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at April 1, 2020
|
|
$
|
114.7
|
|
|
$
|
92.7
|
|
|
$
|
118.2
|
|
|
$
|
64.9
|
|
|
$
|
113.3
|
|
|
$
|
65.8
|
|
|
$
|
10.7
|
|
|
$
|
580.3
|
|
Long-term sales
|
|
4.2
|
|
|
7.1
|
|
|
2.8
|
|
|
1.9
|
|
|
3.3
|
|
|
2.6
|
|
|
—
|
|
|
21.9
|
|
||||||||
Long-term redemptions
|
|
(8.5
|
)
|
|
(6.2
|
)
|
|
(5.1
|
)
|
|
(1.9
|
)
|
|
(12.5
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
(36.7
|
)
|
||||||||
Long-term net exchanges
|
|
(0.3
|
)
|
|
0.6
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||||||||
Long-term reinvested distributions
|
|
0.1
|
|
|
0.4
|
|
|
1.7
|
|
|
0.4
|
|
|
0.7
|
|
|
0.2
|
|
|
—
|
|
|
3.5
|
|
||||||||
Net flows
|
|
(4.5
|
)
|
|
1.9
|
|
|
(0.8
|
)
|
|
0.4
|
|
|
(9.0
|
)
|
|
0.7
|
|
|
—
|
|
|
(11.3
|
)
|
||||||||
Acquisition
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
||||||||
Net market change, distributions and other
|
|
17.2
|
|
|
21.0
|
|
|
8.4
|
|
|
1.0
|
|
|
2.3
|
|
|
0.7
|
|
|
(0.3
|
)
|
|
50.3
|
|
||||||||
AUM at June 30, 2020
|
|
$
|
127.4
|
|
|
$
|
115.6
|
|
|
$
|
129.3
|
|
|
$
|
66.3
|
|
|
$
|
106.6
|
|
|
$
|
67.2
|
|
|
$
|
10.4
|
|
|
$
|
622.8
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the three months ended
June 30, 2019 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at April 1, 2019
|
|
$
|
174.4
|
|
|
$
|
109.5
|
|
|
$
|
134.7
|
|
|
$
|
63.4
|
|
|
$
|
152.5
|
|
|
$
|
68.9
|
|
|
$
|
8.9
|
|
|
$
|
712.3
|
|
Long-term sales
|
|
4.4
|
|
|
4.3
|
|
|
3.7
|
|
|
2.1
|
|
|
12.1
|
|
|
1.8
|
|
|
—
|
|
|
28.4
|
|
||||||||
Long-term redemptions
|
|
(10.1
|
)
|
|
(5.4
|
)
|
|
(5.6
|
)
|
|
(1.9
|
)
|
|
(12.0
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(38.2
|
)
|
||||||||
Long-term net exchanges
|
|
(0.9
|
)
|
|
(0.6
|
)
|
|
1.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Long-term reinvested distributions
|
|
0.3
|
|
|
0.6
|
|
|
1.6
|
|
|
0.4
|
|
|
1.2
|
|
|
0.3
|
|
|
—
|
|
|
4.4
|
|
||||||||
Net flows
|
|
(6.3
|
)
|
|
(1.1
|
)
|
|
1.1
|
|
|
0.7
|
|
|
1.3
|
|
|
(1.1
|
)
|
|
—
|
|
|
(5.4
|
)
|
||||||||
Net market change, distributions and other
|
|
1.7
|
|
|
4.0
|
|
|
0.2
|
|
|
0.9
|
|
|
1.1
|
|
|
0.1
|
|
|
0.3
|
|
|
8.3
|
|
||||||||
AUM at June 30, 2019
|
|
$
|
169.8
|
|
|
$
|
112.4
|
|
|
$
|
136.0
|
|
|
$
|
65.0
|
|
|
$
|
154.9
|
|
|
$
|
67.9
|
|
|
$
|
9.2
|
|
|
$
|
715.2
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the nine months ended
June 30, 2020 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at October 1, 2019
|
|
$
|
158.4
|
|
|
$
|
112.1
|
|
|
$
|
134.3
|
|
|
$
|
66.3
|
|
|
$
|
144.6
|
|
|
$
|
67.4
|
|
|
$
|
9.5
|
|
|
$
|
692.6
|
|
Long-term sales
|
|
12.6
|
|
|
17.9
|
|
|
11.4
|
|
|
6.4
|
|
|
16.6
|
|
|
7.4
|
|
|
—
|
|
|
72.3
|
|
||||||||
Long-term redemptions
|
|
(31.8
|
)
|
|
(21.5
|
)
|
|
(19.6
|
)
|
|
(7.0
|
)
|
|
(47.6
|
)
|
|
(9.2
|
)
|
|
—
|
|
|
(136.7
|
)
|
||||||||
Long-term net exchanges
|
|
(0.8
|
)
|
|
0.6
|
|
|
(0.6
|
)
|
|
(0.2
|
)
|
|
(1.9
|
)
|
|
1.3
|
|
|
—
|
|
|
(1.6
|
)
|
||||||||
Long-term reinvested distributions
|
|
2.6
|
|
|
5.3
|
|
|
4.7
|
|
|
1.2
|
|
|
2.5
|
|
|
0.7
|
|
|
—
|
|
|
17.0
|
|
||||||||
Net flows
|
|
(17.4
|
)
|
|
2.3
|
|
|
(4.1
|
)
|
|
0.4
|
|
|
(30.4
|
)
|
|
0.2
|
|
|
—
|
|
|
(49.0
|
)
|
||||||||
Acquisition
|
|
—
|
|
|
—
|
|
|
9.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.1
|
|
||||||||
Net market change, distributions and other
|
|
(13.6
|
)
|
|
1.2
|
|
|
(10.0
|
)
|
|
(0.4
|
)
|
|
(7.6
|
)
|
|
(0.4
|
)
|
|
0.9
|
|
|
(29.9
|
)
|
||||||||
AUM at June 30, 2020
|
|
$
|
127.4
|
|
|
$
|
115.6
|
|
|
$
|
129.3
|
|
|
$
|
66.3
|
|
|
$
|
106.6
|
|
|
$
|
67.2
|
|
|
$
|
10.4
|
|
|
$
|
622.8
|
|
(in billions)
|
|
Equity
|
|
Multi-Asset/
Balanced
|
|
Fixed Income
|
|
Cash
Management
|
|
Total
|
||||||||||||||||||||||
for the nine months ended
June 30, 2019 |
|
Global/
International
|
|
United
States
|
|
|
Tax-Free
|
|
Taxable
Global/
International
|
|
Taxable
United
States
|
|
|
|||||||||||||||||||
AUM at October 1, 2018
|
|
$
|
194.4
|
|
|
$
|
115.2
|
|
|
$
|
138.9
|
|
|
$
|
63.9
|
|
|
$
|
150.6
|
|
|
$
|
44.8
|
|
|
$
|
9.3
|
|
|
$
|
717.1
|
|
Long-term sales
|
|
13.8
|
|
|
12.4
|
|
|
9.6
|
|
|
5.5
|
|
|
30.6
|
|
|
5.2
|
|
|
—
|
|
|
77.1
|
|
||||||||
Long-term redemptions
|
|
(31.8
|
)
|
|
(17.5
|
)
|
|
(16.8
|
)
|
|
(8.0
|
)
|
|
(32.7
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
(116.8
|
)
|
||||||||
Long-term net exchanges
|
|
(1.5
|
)
|
|
(0.6
|
)
|
|
1.3
|
|
|
0.1
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||||||
Long-term reinvested distributions
|
|
4.8
|
|
|
5.6
|
|
|
4.6
|
|
|
1.3
|
|
|
4.1
|
|
|
0.8
|
|
|
—
|
|
|
21.2
|
|
||||||||
Net flows
|
|
(14.7
|
)
|
|
(0.1
|
)
|
|
(1.3
|
)
|
|
(1.1
|
)
|
|
2.2
|
|
|
(4.0
|
)
|
|
—
|
|
|
(19.0
|
)
|
||||||||
Acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
|
26.4
|
|
||||||||
Net market change, distributions and other
|
|
(9.9
|
)
|
|
(2.7
|
)
|
|
(1.6
|
)
|
|
2.2
|
|
|
2.1
|
|
|
0.7
|
|
|
(0.1
|
)
|
|
(9.3
|
)
|
||||||||
AUM at June 30, 2019
|
|
$
|
169.8
|
|
|
$
|
112.4
|
|
|
$
|
136.0
|
|
|
$
|
65.0
|
|
|
$
|
154.9
|
|
|
$
|
67.9
|
|
|
$
|
9.2
|
|
|
$
|
715.2
|
|
|
|
Three Months Ended
June 30, |
|
Percent
Change |
|
Nine Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
(in billions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
United States
|
|
$
|
426.9
|
|
|
$
|
485.2
|
|
|
(12
|
%)
|
|
$
|
455.0
|
|
|
$
|
471.4
|
|
|
(3
|
%)
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Europe, Middle East and Africa
|
|
75.1
|
|
|
91.2
|
|
|
(18
|
%)
|
|
83.0
|
|
|
92.4
|
|
|
(10
|
%)
|
||||
Asia-Pacific
|
|
73.1
|
|
|
92.1
|
|
|
(21
|
%)
|
|
82.1
|
|
|
90.4
|
|
|
(9
|
%)
|
||||
Canada
|
|
19.2
|
|
|
27.6
|
|
|
(30
|
%)
|
|
21.6
|
|
|
27.9
|
|
|
(23
|
%)
|
||||
Latin America1
|
|
10.7
|
|
|
14.7
|
|
|
(27
|
%)
|
|
12.3
|
|
|
14.8
|
|
|
(17
|
%)
|
||||
Total international
|
|
178.1
|
|
|
225.6
|
|
|
(21
|
%)
|
|
199.0
|
|
|
225.5
|
|
|
(12
|
%)
|
||||
Total
|
|
$
|
605.0
|
|
|
$
|
710.8
|
|
|
(15
|
%)
|
|
$
|
654.0
|
|
|
$
|
696.9
|
|
|
(6
|
%)
|
1
|
Includes North America-based advisers serving non-resident clients.
|
|
|
Benchmark Comparison1, 2
|
|
Peer Group Comparison1, 3
|
||||||||||||||||||||
|
|
% of AUM Exceeding Benchmark
|
|
% of AUM in Top Two Peer Group Quartiles
|
||||||||||||||||||||
as of June 30, 2020
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
|
1-Year
|
|
3-Year
|
|
5-Year
|
|
10-Year
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
24
|
%
|
|
19
|
%
|
|
21
|
%
|
|
25
|
%
|
|
40
|
%
|
|
25
|
%
|
|
25
|
%
|
|
30
|
%
|
United States
|
|
49
|
%
|
|
51
|
%
|
|
42
|
%
|
|
32
|
%
|
|
40
|
%
|
|
59
|
%
|
|
80
|
%
|
|
48
|
%
|
Total equity
|
|
37
|
%
|
|
36
|
%
|
|
32
|
%
|
|
28
|
%
|
|
40
|
%
|
|
43
|
%
|
|
53
|
%
|
|
39
|
%
|
Multi-Asset/Balanced
|
|
9
|
%
|
|
11
|
%
|
|
12
|
%
|
|
6
|
%
|
|
13
|
%
|
|
18
|
%
|
|
18
|
%
|
|
17
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax-free
|
|
9
|
%
|
|
27
|
%
|
|
32
|
%
|
|
40
|
%
|
|
89
|
%
|
|
48
|
%
|
|
48
|
%
|
|
50
|
%
|
Taxable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Global/international
|
|
8
|
%
|
|
14
|
%
|
|
14
|
%
|
|
49
|
%
|
|
15
|
%
|
|
19
|
%
|
|
21
|
%
|
|
59
|
%
|
United States
|
|
17
|
%
|
|
2
|
%
|
|
1
|
%
|
|
14
|
%
|
|
31
|
%
|
|
25
|
%
|
|
8
|
%
|
|
4
|
%
|
Total fixed income
|
|
10
|
%
|
|
16
|
%
|
|
18
|
%
|
|
39
|
%
|
|
43
|
%
|
|
29
|
%
|
|
28
|
%
|
|
46
|
%
|
1
|
AUM measured in the 1-year benchmark and peer group rankings represents 83% and 84% of our total AUM as of June 30, 2020.
|
2
|
The benchmark comparisons are based on each fund’s return as compared to a market index that has been selected to be generally consistent with the investment objectives of the fund.
|
3
|
The peer group rankings are sourced from Lipper, a Thomson Reuters Company, Morningstar or eVestment and various international third-party providers in each fund’s market and were based on an absolute ranking of returns. © 2019 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)
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||||
Investment management fees
|
|
$
|
809.2
|
|
|
$
|
1,019.4
|
|
|
(21
|
%)
|
|
$
|
2,697.1
|
|
|
$
|
2,983.6
|
|
|
(10
|
%)
|
Sales and distribution fees
|
|
302.1
|
|
|
367.5
|
|
|
(18
|
%)
|
|
995.3
|
|
|
1,080.8
|
|
|
(8
|
%)
|
||||
Shareholder servicing fees
|
|
44.6
|
|
|
52.7
|
|
|
(15
|
%)
|
|
149.4
|
|
|
164.9
|
|
|
(9
|
%)
|
||||
Other
|
|
32.2
|
|
|
37.1
|
|
|
(13
|
%)
|
|
97.3
|
|
|
92.7
|
|
|
5
|
%
|
||||
Total Operating Revenues
|
|
$
|
1,188.1
|
|
|
$
|
1,476.7
|
|
|
(20
|
%)
|
|
$
|
3,939.1
|
|
|
$
|
4,322.0
|
|
|
(9
|
%)
|
(in millions)
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||||
Asset-based fees
|
|
$
|
243.5
|
|
|
$
|
297.9
|
|
|
(18
|
%)
|
|
$
|
802.9
|
|
|
$
|
891.9
|
|
|
(10
|
%)
|
Sales-based fees
|
|
52.5
|
|
|
66.4
|
|
|
(21
|
%)
|
|
177.4
|
|
|
180.0
|
|
|
(1
|
%)
|
||||
Contingent sales charges
|
|
6.1
|
|
|
3.2
|
|
|
91
|
%
|
|
15.0
|
|
|
8.9
|
|
|
69
|
%
|
||||
Sales and Distribution Fees
|
|
$
|
302.1
|
|
|
$
|
367.5
|
|
|
(18
|
%)
|
|
$
|
995.3
|
|
|
$
|
1,080.8
|
|
|
(8
|
%)
|
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change
|
||||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Sales, distribution and marketing
|
|
$
|
368.6
|
|
|
$
|
462.4
|
|
|
(20
|
%)
|
|
$
|
1,236.4
|
|
|
$
|
1,356.3
|
|
|
(9
|
%)
|
Compensation and benefits
|
|
386.5
|
|
|
437.7
|
|
|
(12
|
%)
|
|
1,141.6
|
|
|
1,202.3
|
|
|
(5
|
%)
|
||||
Information systems and technology
|
|
62.1
|
|
|
65.7
|
|
|
(5
|
%)
|
|
186.4
|
|
|
188.7
|
|
|
(1
|
%)
|
||||
Occupancy
|
|
31.5
|
|
|
32.2
|
|
|
(2
|
%)
|
|
100.4
|
|
|
94.8
|
|
|
6
|
%
|
||||
General, administrative and other
|
|
85.7
|
|
|
103.8
|
|
|
(17
|
%)
|
|
271.8
|
|
|
314.0
|
|
|
(13
|
%)
|
||||
Total Operating Expenses
|
|
$
|
934.4
|
|
|
$
|
1,101.8
|
|
|
(15
|
%)
|
|
$
|
2,936.6
|
|
|
$
|
3,156.1
|
|
|
(7
|
%)
|
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change |
||||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||||||||||
Asset-based expenses
|
|
$
|
296.1
|
|
|
$
|
371.7
|
|
|
(20
|
%)
|
|
$
|
991.1
|
|
|
$
|
1,106.1
|
|
|
(10
|
%)
|
Sales-based expenses
|
|
53.9
|
|
|
70.4
|
|
|
(23
|
%)
|
|
185.2
|
|
|
190.1
|
|
|
(3
|
%)
|
||||
Amortization of deferred sales commissions
|
|
18.6
|
|
|
20.3
|
|
|
(8
|
%)
|
|
60.1
|
|
|
60.1
|
|
|
0%
|
|
||||
Sales, Distribution and Marketing
|
|
$
|
368.6
|
|
|
$
|
462.4
|
|
|
(20
|
%)
|
|
$
|
1,236.4
|
|
|
$
|
1,356.3
|
|
|
(9
|
%)
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net carrying value at beginning of period
|
|
$
|
105.1
|
|
|
$
|
106.0
|
|
|
$
|
112.0
|
|
|
$
|
106.2
|
|
Additions, net of disposals
|
|
6.1
|
|
|
11.1
|
|
|
23.3
|
|
|
34.6
|
|
||||
Amortization
|
|
(12.9
|
)
|
|
(12.6
|
)
|
|
(37.0
|
)
|
|
(36.3
|
)
|
||||
Net Carrying Value at End of Period
|
|
$
|
98.3
|
|
|
$
|
104.5
|
|
|
$
|
98.3
|
|
|
$
|
104.5
|
|
|
|
Three Months Ended
June 30, |
|
Percent
Change
|
|
Nine Months Ended
June 30, |
|
Percent
Change |
|||||||||||||
(in millions)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|||||||||||
Investment and other income (losses), net
|
|
$
|
22.9
|
|
|
$
|
44.2
|
|
|
(48
|
%)
|
|
$
|
(166.5
|
)
|
|
$
|
103.8
|
|
|
NM
|
Interest expense
|
|
(6.8
|
)
|
|
(5.6
|
)
|
|
21
|
%
|
|
(17.7
|
)
|
|
(17.7
|
)
|
|
0%
|
||||
Other Income (Expenses), Net
|
|
$
|
16.1
|
|
|
$
|
38.6
|
|
|
(58
|
%)
|
|
$
|
(184.2
|
)
|
|
$
|
86.1
|
|
|
NM
|
|
|
Accounting Classification1
|
|
Total Direct
Portfolio
|
||||||||||||||||
(in millions)
|
|
Cash and
Cash
Equivalents
and Other2
|
|
Equity
Securities,
at
Fair Value
|
|
Equity
Method
Investments
|
|
Direct
Investments
in CIPs
|
|
|||||||||||
Cash and Cash Equivalents
|
|
$
|
6,358.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,358.7
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global/international
|
|
36.1
|
|
|
165.8
|
|
|
185.4
|
|
|
145.2
|
|
|
532.5
|
|
|||||
United States
|
|
35.0
|
|
|
3.5
|
|
|
46.0
|
|
|
84.8
|
|
|
169.3
|
|
|||||
Total equity
|
|
71.1
|
|
|
169.3
|
|
|
231.4
|
|
|
230.0
|
|
|
701.8
|
|
|||||
Multi-Asset/Balanced
|
|
—
|
|
|
33.8
|
|
|
1.9
|
|
|
130.5
|
|
|
166.2
|
|
|||||
Fixed Income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-free
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
10.9
|
|
|||||
Taxable
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global/international
|
|
44.2
|
|
|
47.8
|
|
|
111.1
|
|
|
281.7
|
|
|
484.8
|
|
|||||
United States
|
|
22.8
|
|
|
275.8
|
|
|
125.8
|
|
|
93.0
|
|
|
517.4
|
|
|||||
Total fixed income
|
|
67.0
|
|
|
323.6
|
|
|
236.9
|
|
|
385.6
|
|
|
1,013.1
|
|
|||||
Total investments
|
|
138.1
|
|
|
526.7
|
|
|
470.2
|
|
|
746.1
|
|
|
1,881.1
|
|
|||||
Total Cash and Cash Equivalents and Investments
|
$
|
6,496.8
|
|
|
$
|
526.7
|
|
|
$
|
470.2
|
|
|
$
|
746.1
|
|
|
$
|
8,239.8
|
|
1
|
See Note 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of Part II of our Form 10-K for fiscal year 2019 for information on investment accounting classifications.
|
2
|
Other consists of $92.7 million of investments carried at adjusted cost and $45.4 million of debt securities which are measured at fair value.
|
•
|
Revenues and expenses of CIPs, net of revenues eliminated upon consolidation of investment products.
|
•
|
Acquisition-related retention compensation.
|
•
|
Other acquisition-related expenses including professional fees and fair value adjustments related to contingent consideration liabilities.
|
•
|
Amortization and impairment of intangible assets.
|
•
|
Special termination benefits related to workforce optimization initiatives related to the pending acquisition of Legg Mason in fiscal year 2020, and voluntary separation and workforce reduction initiatives of 4.5% of our global workforce in fiscal year 2019.
|
•
|
Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf.
|
•
|
Revenues of CIPs, net of revenues eliminated upon consolidation of investment products.
|
•
|
Activities of CIPs, including revenues, expenses, investment and other income (losses), net, and income (loss) attributable to noncontrolling interests, net of amounts eliminated upon consolidation of investment products.
|
•
|
Acquisition-related retention compensation.
|
•
|
Other acquisition-related expenses including professional fees and fair value adjustments related to contingent consideration liabilities and retention awards.
|
•
|
Amortization and impairment of intangible assets.
|
•
|
Special termination benefits related to workforce optimization initiatives related to the pending acquisition of Legg Mason in fiscal year 2020, and voluntary separation and workforce reduction initiatives of 4.5% of our global workforce in fiscal year 2019.
|
•
|
Unrealized investment gains and losses included in investment and other income (losses), net.
|
•
|
Net income tax benefit of the above adjustments based on the respective blended rates applicable to the adjustments.
|
(in millions)
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
Operating income
|
|
$
|
253.7
|
|
|
$
|
374.9
|
|
|
$
|
1,002.5
|
|
|
$
|
1,165.9
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
||||||||
Operating income of consolidated investment products1
|
|
(16.2
|
)
|
|
(18.8
|
)
|
|
(39.3
|
)
|
|
(40.4
|
)
|
||||
Acquisition-related retention
|
|
15.5
|
|
|
21.5
|
|
|
64.0
|
|
|
43.0
|
|
||||
Other acquisition-related expenses (gain)
|
|
4.4
|
|
|
(0.1
|
)
|
|
9.6
|
|
|
9.3
|
|
||||
Amortization of intangible assets
|
|
4.7
|
|
|
5.1
|
|
|
13.9
|
|
|
9.7
|
|
||||
Impairment of intangible assets
|
|
—
|
|
|
9.3
|
|
|
2.8
|
|
|
9.3
|
|
||||
Special termination benefits
|
|
8.7
|
|
|
38.8
|
|
|
8.7
|
|
|
50.6
|
|
||||
Adjusted operating income
|
|
$
|
270.8
|
|
|
$
|
430.7
|
|
|
$
|
1,062.2
|
|
|
$
|
1,247.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total operating revenues
|
|
$
|
1,188.1
|
|
|
$
|
1,476.7
|
|
|
$
|
3,939.1
|
|
|
$
|
4,322.0
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
||||||||
Sales and distribution fees
|
|
(302.1
|
)
|
|
(367.5
|
)
|
|
(995.3
|
)
|
|
(1,080.8
|
)
|
||||
Allocation of investment management fees for sales, distribution and marketing expenses
|
|
(66.5
|
)
|
|
(94.9
|
)
|
|
(241.1
|
)
|
|
(275.5
|
)
|
||||
Net revenues of consolidated investment products1
|
|
(22.0
|
)
|
|
(21.4
|
)
|
|
(59.7
|
)
|
|
(51.7
|
)
|
||||
Adjusted operating revenues
|
|
$
|
797.5
|
|
|
$
|
992.9
|
|
|
$
|
2,643.0
|
|
|
$
|
2,914.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin
|
|
21.4
|
%
|
|
25.4
|
%
|
|
25.4
|
%
|
|
27.0
|
%
|
||||
Adjusted operating margin
|
|
34.0
|
%
|
|
43.4
|
%
|
|
40.2
|
%
|
|
42.8
|
%
|
(in millions, except per share data)
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
Net income attributable to Franklin Resources, Inc.
|
|
$
|
290.4
|
|
|
$
|
245.9
|
|
|
$
|
720.0
|
|
|
$
|
889.3
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
||||||||
Net (income) loss of consolidated investment products1
|
|
5.7
|
|
|
0.4
|
|
|
(6.1
|
)
|
|
1.6
|
|
||||
Acquisition-related retention
|
|
15.5
|
|
|
21.5
|
|
|
64.0
|
|
|
43.0
|
|
||||
Other acquisition-related expenses (gain)
|
|
2.7
|
|
|
(0.1
|
)
|
|
7.9
|
|
|
9.3
|
|
||||
Amortization of intangible assets
|
|
4.7
|
|
|
5.1
|
|
|
13.9
|
|
|
9.7
|
|
||||
Impairment of intangible assets
|
|
—
|
|
|
9.3
|
|
|
2.8
|
|
|
9.3
|
|
||||
Special termination benefits
|
|
8.7
|
|
|
38.8
|
|
|
8.7
|
|
|
50.6
|
|
||||
Unrealized investment (gains) losses included in investment and other (income) losses, net
|
|
26.7
|
|
|
(24.9
|
)
|
|
247.9
|
|
|
(9.9
|
)
|
||||
Net income tax benefit of adjustments
|
|
(5.5
|
)
|
|
(14.5
|
)
|
|
(39.1
|
)
|
|
(30.0
|
)
|
||||
Adjusted net income
|
|
$
|
348.9
|
|
|
$
|
281.5
|
|
|
$
|
1,020.0
|
|
|
$
|
972.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
$
|
0.58
|
|
|
$
|
0.48
|
|
|
$
|
1.44
|
|
|
$
|
1.74
|
|
Adjusted diluted earnings per share
|
|
0.70
|
|
|
0.55
|
|
|
2.04
|
|
|
1.90
|
|
1
|
The impact of consolidated investment products is summarized as follows:
|
(in millions)
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
Revenues of consolidated investment products
|
|
$
|
27.0
|
|
|
$
|
28.3
|
|
|
$
|
77.6
|
|
|
$
|
75.4
|
|
Revenues eliminated upon consolidation of investment products
|
|
(5.0
|
)
|
|
(6.9
|
)
|
|
(17.9
|
)
|
|
(23.7
|
)
|
||||
Net revenues of consolidated investment products
|
|
22.0
|
|
|
21.4
|
|
|
59.7
|
|
|
51.7
|
|
||||
Expenses of consolidated investment products
|
|
5.8
|
|
|
2.6
|
|
|
20.4
|
|
|
11.3
|
|
||||
Operating income of consolidated investment products
|
|
16.2
|
|
|
18.8
|
|
|
39.3
|
|
|
40.4
|
|
||||
Investment and other income (losses), net of consolidated investment products
|
|
(42.0
|
)
|
|
(16.6
|
)
|
|
(78.9
|
)
|
|
(38.3
|
)
|
||||
Less: income (loss) attributable to noncontrolling interests of consolidated investment products
|
|
(20.1
|
)
|
|
2.6
|
|
|
(45.7
|
)
|
|
3.7
|
|
||||
Net income (loss) of consolidated investment products
|
|
$
|
(5.7
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
6.1
|
|
|
$
|
(1.6
|
)
|
|
|
Nine Months Ended
June 30, |
||||||
(in millions)
|
|
2020
|
|
2019
|
||||
Operating cash flows
|
|
$
|
646.6
|
|
|
$
|
169.3
|
|
Investing cash flows
|
|
269.1
|
|
|
(1,008.8
|
)
|
||
Financing cash flows
|
|
96.4
|
|
|
(302.0
|
)
|
(in millions)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
6,358.7
|
|
|
$
|
5,803.4
|
|
Receivables
|
|
810.3
|
|
|
740.0
|
|
||
Investments
|
|
1,145.0
|
|
|
2,029.4
|
|
||
Total Liquid Assets
|
|
$
|
8,314.0
|
|
|
$
|
8,572.8
|
|
|
|
|
|
|
||||
Liability
|
|
|
|
|
||||
Debt
|
|
$
|
697.2
|
|
|
$
|
696.9
|
|
•
|
Dodd-Frank. In July 2010, Dodd-Frank was adopted in the U.S. Dodd-Frank is expansive in scope and has required the adoption of extensive regulations and the issuance of numerous regulatory decisions, while certain proposed rules remain subject to final adoption.
|
•
|
Systemically Important Financial Institutions. Dodd-Frank authorized the establishment of the FSOC, the mandate of which is to identify and respond to threats to U.S. financial stability. Similarly, the U.S. and other members of the G-20 group of nations have empowered the FSB to identify and respond, in a coordinated manner, to threats to global financial stability. To the extent that we or any of our funds are designated as SIFIs by the FSOC or as global SIFIs by the FSB, such designations add additional supervision and/or regulation, which could include requirements related to risk-based capital, leverage, liquidity, credit exposure, stress testing, resolution plans, early remediation, and certain risk management requirements, that could impact our business.
|
•
|
Derivatives and Other Financial Products. Dodd-Frank, as well as other legislation and regulations, impose restrictions and limitations on us related to our financial services and products, resulting in increased scrutiny and oversight. Under such regulations governing derivative transactions, certain categories of swaps are subject to the exchange of margin, while others are required to be submitted for clearing by a regulated clearing organization. In both cases, swaps must be reported on a swap execution facility. The EU and other countries have implemented, or are in the process of implementing, similar requirements. There is some risk that full mutual recognition may not be achieved between the various regulators, which may cause us to incur duplicate regulation and transaction costs. The SEC has also proposed a rule that would impose restrictions on the use of derivatives by registered funds. In addition, SEC rules have changed the structure and operation for certain types of money market funds, and certain U.S.-registered funds are required to adopt liquidity management programs.
|
•
|
Privacy and Data Protection. There also has been increased regulation with respect to the protection of customer privacy and data, and the need to secure sensitive customer, personnel and others’ information. As the regulatory focus on privacy continues to intensify and laws and regulations concerning the management of personal data expand, risks related to privacy and data collection within our business will increase. In addition to the EU’s GDPR data protection rules, we may also be or become subject to or affected by additional country, federal and state laws, regulations and guidance impacting consumer privacy, such as the recently enacted CCPA effective January 2020, which provides for enhanced consumer protections for California residents, enforcement authority by the California Attorney General for CCPA violations, and the potential for private litigation, including statutory damages, for data security breaches. Noncompliance with our legal obligations relating to privacy and data protection could result in penalties, legal proceedings by governmental entities or affected individuals, and significant legal and financial exposure.
|
•
|
Rule 12b-1 Plans. In 2010, the SEC proposed changes to Rule 12b-1 promulgated under the Investment Company Act that, if adopted, could limit our ability to recover expenses relating to the distribution of our U.S.-registered funds, which could decrease our revenues.
|
•
|
SEC Regulation Best Interest. In June 2019, the SEC adopted a package of new rules, amendments and interpretations, including Regulation Best Interest and a new form of relationship summary, designed to enhance investor protections for all retail customers, that effective June 30, 2020, among other things: (i) require broker-dealers to act in the best interest of their retail customers when recommending securities and account types, (ii) raise the broker-dealer standard of conduct beyond existing suitability obligations, and (iii) require a new relationship summary disclosure document to inform retail clients of the nature of the broker-dealers’ relationships with investment professionals and registered investment advisers, including a description of services offered, the legal standards of conduct that apply to each, the fees a client might pay, and conflicts of interest that may exist.
|
•
|
Other Compliance Requirements. Compliance with the U.S. Bank Secrecy Act of 1970, the U.S. Patriot Act of 2001, and anti-money laundering and economic sanctions, both domestically and internationally, has taken on heightened importance as a result of efforts to, among other things, combat terrorist financing and actions that undermine the stability, sovereignty and territorial integrity of countries. In addition, global regulatory, federal and/or state anti-takeover or business combination laws may impose various disclosure and procedural requirements on a person seeking to acquire control of us, which may discourage potential merger and acquisition proposals and may delay, deter or prevent a change of control, including through transactions that some stockholders may consider desirable.
|
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
|
|||||
April 2020
|
|
2,942
|
|
|
$
|
16.83
|
|
|
2,942
|
|
|
39,723,466
|
|
May 2020
|
|
741
|
|
|
18.87
|
|
|
741
|
|
|
39,722,725
|
|
|
June 2020
|
|
263
|
|
|
20.85
|
|
|
263
|
|
|
39,722,462
|
|
|
Total
|
|
3,946
|
|
|
|
|
3,946
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
|
3.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
|
3.4
|
|
|
|
|
|
|
|
3.5
|
|
|
|
|
|
|
|
3.6
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101
|
|
|
The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL), 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)
|
|
|
|
|
104
|
|
|
Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)
|
|
|
|
FRANKLIN RESOURCES, INC.
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 28, 2020
|
|
By:
|
/s/ Matthew Nicholls
|
|
|
|
|
Matthew Nicholls
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 28, 2020
|
|
By:
|
/s/ Gwen L. Shaneyfelt
|
|
|
|
|
Gwen L. Shaneyfelt
|
|
|
|
|
Chief Accounting Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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:
|
July 28, 2020
|
|
/s/ Jennifer M. Johnson
|
|
|
|
Jennifer M. Johnson
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q 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:
|
July 28, 2020
|
|
/s/ Matthew Nicholls
|
|
|
|
Matthew Nicholls
|
|
|
|
Executive Vice President and Chief Financial Officer
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2020 (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.
|
Date:
|
July 28, 2020
|
|
/s/ Jennifer M. Johnson
|
|
|
|
Jennifer M. Johnson
|
|
|
|
President and Chief Executive Officer
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2020 (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.
|
Date:
|
July 28, 2020
|
|
/s/ Matthew Nicholls
|
|
|
|
Matthew Nicholls
|
|
|
|
Executive Vice President and Chief Financial Officer
|