Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 31, 2016 | Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Franklin Resources Inc | ||
Entity Central Index Key | 38,777 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 14 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 568,805,502 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenues | |||
Investment management fees | $ 4,471.7 | $ 5,327.8 | $ 5,565.7 |
Sales and distribution fees | 1,806.4 | 2,252.4 | 2,546.4 |
Shareholder servicing fees | 243.6 | 262.8 | 281.1 |
Other | 96.3 | 105.7 | 98.2 |
Total operating revenues | 6,618 | 7,948.7 | 8,491.4 |
Operating Expenses | |||
Sales, distribution and marketing | 2,209.9 | 2,762.3 | 3,088.2 |
Compensation and benefits | 1,360.9 | 1,453.3 | 1,467.9 |
Information systems and technology | 207.3 | 224.3 | 216.3 |
Occupancy | 134.1 | 132.7 | 137.7 |
General, administrative and other | 340.1 | 348.5 | 360.1 |
Total operating expenses | 4,252.3 | 4,921.1 | 5,270.2 |
Operating Income | 2,365.7 | 3,027.6 | 3,221.2 |
Other Income (Expenses) | |||
Investment and other income, net | 184 | 40.4 | 235.8 |
Interest expense | (49.9) | (39.6) | (47.4) |
Other income, net | 134.1 | 0.8 | 188.4 |
Income before taxes | 2,499.8 | 3,028.4 | 3,409.6 |
Taxes on income | 742.1 | 923.7 | 997.9 |
Net income | 1,757.7 | 2,104.7 | 2,411.7 |
Less: net income (loss) attributable to | |||
Nonredeemable noncontrolling interests | 29.4 | 75.5 | 6.8 |
Redeemable noncontrolling interests | 1.6 | (6.1) | 20.6 |
Net Income Attributable to Franklin Resources, Inc. | $ 1,726.7 | $ 2,035.3 | $ 2,384.3 |
Earnings per Share | |||
Basic | $ 2.94 | $ 3.29 | $ 3.79 |
Diluted | 2.94 | 3.29 | 3.79 |
Dividends Declared per Share | $ 0.72 | $ 1.1 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 1,757.7 | $ 2,104.7 | $ 2,411.7 |
Other Comprehensive Income (Loss) | |||
Net unrealized losses on investments, net of tax | (12.5) | (11.7) | (40.9) |
Currency translation adjustments, net of tax | (18.3) | (184.2) | (80.4) |
Net unrealized losses on defined benefit plans, net of tax | (2.4) | (0.6) | (2.5) |
Total other comprehensive loss | (33.2) | (196.5) | (123.8) |
Total comprehensive income | 1,724.5 | 1,908.2 | 2,287.9 |
Less: comprehensive income (loss) attributable to | |||
Nonredeemable noncontrolling interests | 29.4 | 75.5 | 6.8 |
Redeemable noncontrolling interests | 1.6 | (6.1) | 20.6 |
Comprehensive Income Attributable to Franklin Resources, Inc. | $ 1,693.5 | $ 1,838.8 | $ 2,260.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Assets | ||
Cash and cash equivalents | $ 8,483.3 | $ 8,368.1 |
Receivables | 794.3 | 838 |
Investments | 2,416.6 | 2,459.2 |
Investments, at fair value | 1,437.6 | 1,712.3 |
Property and equipment, net | 523.2 | 510.1 |
Goodwill and other intangible assets, net | 2,211.3 | 2,257 |
Other | 156.7 | 253.4 |
Total Assets | 16,098.8 | 16,335.7 |
Liabilities | ||
Compensation and benefits | 357.4 | 433.2 |
Accounts payable and accrued expenses | 233.3 | 232.1 |
Dividends | 104.6 | 92.6 |
Commissions | 302 | 359.9 |
Debt | 1,401.2 | 1,348 |
Deferred taxes | 161.5 | 241.4 |
Other | 267.3 | 265.8 |
Total liabilities | 3,509.5 | 3,780.3 |
Commitments and Contingencies (Note 11) | ||
Redeemable Noncontrolling Interests | 61.1 | 59.6 |
Stockholders’ Equity | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 570,345,156 and 603,517,181 shares issued and outstanding at September 30, 2016 and 2015 | 57 | 60.4 |
Retained earnings | 12,226.2 | 12,094.8 |
Accumulated other comprehensive loss | (347.4) | (314.2) |
Total Franklin Resources, Inc. stockholders’ equity | 11,935.8 | 11,841 |
Nonredeemable noncontrolling interests | 592.4 | 654.8 |
Total stockholders’ equity | 12,528.2 | 12,495.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 16,098.8 | 16,335.7 |
Consolidated sponsored investment products [Member] | ||
Assets | ||
Cash and cash equivalents | 89.8 | 108.5 |
Receivables | 24.3 | 10 |
Investments, at fair value | 1,025.6 | 977.4 |
Other | 1.4 | 0.7 |
Total Assets | 1,141.1 | 1,096.6 |
Liabilities | ||
Accounts payable and accrued expenses | 19.5 | 10.8 |
Debt | 75 | 81.2 |
Other | 8.5 | 6.3 |
Total liabilities | 103 | 98.3 |
Redeemable Noncontrolling Interests | 61.1 | 59.6 |
Stockholders’ Equity | ||
Total Franklin Resources, Inc. stockholders’ equity | 409.2 | 308.8 |
Nonredeemable noncontrolling interests | 567.8 | 629.9 |
Total stockholders’ equity | 977 | 938.7 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 1,141.1 | 1,096.6 |
Consolidated variable interest entities [Member] | ||
Assets | ||
Cash and cash equivalents | 146.4 | 74.7 |
Receivables | 23.6 | 11.5 |
Investments, at fair value | 487.8 | 672.5 |
Other | 0 | 0 |
Total Assets | 657.8 | 758.7 |
Liabilities | ||
Accounts payable and accrued expenses | 45.7 | 25.3 |
Debt | 607.2 | 726.1 |
Other | 0 | 0 |
Total liabilities | 652.9 | 751.4 |
Redeemable Noncontrolling Interests | 0 | 0 |
Stockholders’ Equity | ||
Total Franklin Resources, Inc. stockholders’ equity | 4.9 | 7.3 |
Nonredeemable noncontrolling interests | 0 | 0 |
Total stockholders’ equity | 4.9 | 7.3 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 657.8 | 758.7 |
Franklin Resources, Inc. [Member] | ||
Assets | ||
Cash and cash equivalents | $ 8,247.1 | $ 8,184.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Investments, at fair value | $ 1,437.6 | $ 1,712.3 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 570,345,156 | 603,517,181 |
Common stock, shares outstanding | 570,345,156 | 603,517,181 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Appropriated Retained Earnings of Consolidated Variable Interest Entities [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Stockholders' Equity [Member] | Nonredeemable Noncontrolling Interest [Member] |
Beginning balance - Shares at Sep. 30, 2013 | 630.9 | |||||||
Beginning balance at Sep. 30, 2013 | $ 63.1 | $ 0 | $ 9,991.2 | $ 12.7 | $ 6.1 | $ 10,073.1 | ||
Beginning balance at Sep. 30, 2013 | $ 612.4 | |||||||
Beginning balance at Sep. 30, 2013 | $ 10,685.5 | |||||||
Stockholders' Equity [Roll Forward] | ||||||||
Net Income Attributable to Franklin Resources, Inc. | 2,384.3 | 2,384.3 | 2,384.3 | |||||
Nonredeemable noncontrolling interests | 6.8 | |||||||
Net Income | 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 declared on common stock | (301.7) | (301.7) | (301.7) | |||||
Repurchase of common stock - Shares | (11.5) | |||||||
Repurchase of common stock - Amount | (622.2) | $ (1.1) | (172.9) | (448.2) | (622.2) | |||
Issuance of common stock - Shares | 3.5 | |||||||
Issuance of common stock - Amount | 149.2 | $ 0.3 | 148.9 | 149.2 | ||||
Tax benefit (shortfall) from stock-based compensation | 13.3 | 13.3 | 13.3 | |||||
Stock-based compensation | 10.7 | 10.7 | 10.7 | |||||
Net subscriptions (distributions) | 10.3 | 10.3 | ||||||
Ending balance - Shares at Sep. 30, 2014 | 622.9 | |||||||
Ending balance at Sep. 30, 2014 | $ 62.3 | 0 | 11,625.6 | 13.9 | (117.7) | 11,584.1 | ||
Ending balance at Sep. 30, 2014 | 628.3 | |||||||
Ending balance at Sep. 30, 2014 | 12,212.4 | |||||||
Stockholders' Equity [Roll Forward] | ||||||||
Adjustment for adoption of new accounting guidance | (14.2) | |||||||
Adjustment for adoption of new accounting guidance | Accounting Standards Update 2014-13 [Member] | (0.3) | (13.9) | (14.2) | |||||
Net Income Attributable to Franklin Resources, Inc. | 2,035.3 | 2,035.3 | 2,035.3 | |||||
Nonredeemable noncontrolling interests | 75.5 | |||||||
Net Income | 2,110.8 | |||||||
Other comprehensive loss | (196.5) | (196.5) | (196.5) | |||||
Cash dividends declared on common stock | (682.1) | (682.1) | (682.1) | |||||
Repurchase of common stock - Shares | (22.5) | |||||||
Repurchase of common stock - Amount | (1,059.8) | $ (2.2) | (173.9) | (883.7) | (1,059.8) | |||
Issuance of common stock - Shares | 3.1 | |||||||
Issuance of common stock - Amount | 154.8 | $ 0.3 | 154.5 | 154.8 | ||||
Tax benefit (shortfall) from stock-based compensation | 10.9 | 10.9 | 10.9 | |||||
Stock-based compensation | 8.5 | 8.5 | 8.5 | |||||
Net subscriptions (distributions) | (49) | (49) | ||||||
Ending balance - Shares at Sep. 30, 2015 | 603.5 | |||||||
Ending balance at Sep. 30, 2015 | 11,841 | $ 60.4 | 0 | 12,094.8 | 0 | (314.2) | 11,841 | |
Ending balance at Sep. 30, 2015 | 654.8 | 654.8 | ||||||
Ending balance at Sep. 30, 2015 | 12,495.8 | |||||||
Stockholders' Equity [Roll Forward] | ||||||||
Net Income Attributable to Franklin Resources, Inc. | 1,726.7 | 1,726.7 | 1,726.7 | |||||
Nonredeemable noncontrolling interests | 29.4 | |||||||
Net Income | 1,756.1 | |||||||
Other comprehensive loss | (33.2) | (33.2) | (33.2) | |||||
Cash dividends declared on common stock | (420.7) | (420.7) | (420.7) | |||||
Repurchase of common stock - Shares | (36.6) | |||||||
Repurchase of common stock - Amount | (1,324.3) | $ (3.7) | (146) | (1,174.6) | (1,324.3) | |||
Issuance of common stock - Shares | 3.4 | |||||||
Issuance of common stock - Amount | 150.1 | $ 0.3 | 149.8 | 150.1 | ||||
Tax benefit (shortfall) from stock-based compensation | (5.9) | (5.9) | (5.9) | |||||
Stock-based compensation | 2.1 | 2.1 | 2.1 | |||||
Net subscriptions (distributions) | (91.8) | (91.8) | ||||||
Ending balance - Shares at Sep. 30, 2016 | 570.3 | |||||||
Ending balance at Sep. 30, 2016 | 11,935.8 | $ 57 | $ 0 | $ 12,226.2 | $ 0 | $ (347.4) | $ 11,935.8 | |
Ending balance at Sep. 30, 2016 | 592.4 | $ 592.4 | ||||||
Ending balance at Sep. 30, 2016 | $ 12,528.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions, ₨ in Billions | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Net cash provided by operating activities | |||
Net Income | $ 1,757.7 | $ 2,104.7 | $ 2,411.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales commissions | 75.2 | 112.8 | 127.8 |
Depreciation and other amortization | 87.1 | 97.4 | 94.6 |
Impairment of intangible assets | 28.2 | 8.2 | 0 |
Stock-based compensation | 131.5 | 140 | 127.7 |
Excess tax benefit from stock-based compensation | (0.8) | (11) | (12.2) |
Gains on sale of assets | (29.7) | (31.6) | (59.7) |
Losses (income) from investments in equity method investees | (56.7) | 63.2 | (68.1) |
Net losses (gains) on other investments of consolidated sponsored investment products | 19.7 | (28.9) | (16.9) |
Net gains of consolidated variable interest entities | (5.4) | (6) | (6.1) |
Other | 20.5 | 9.1 | 6.1 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables, prepaid expenses and other | (10.8) | 45.2 | (113.7) |
Decrease (increase) in trading securities, net | 120.4 | 23.3 | (80.2) |
Increase in trading securities of consolidated sponsored investment products, net | (242.3) | (181.1) | (482.9) |
Originations of loans held for sale | 0 | 0 | (38.3) |
Proceeds from sale of loans originated for resale | 0 | 0 | 38.4 |
Increase (decrease) in accrued compensation and benefits | (76.7) | (16.7) | 24.3 |
Increase (decrease) in commissions payable | (57.9) | (80.4) | 2.6 |
Increase (decrease) in income taxes payable | (14) | 20 | 15.8 |
Increase (decrease) in other liabilities | (18.3) | (16.2) | 167.1 |
Net cash provided by operating activities | 1,727.7 | 2,252 | 2,138 |
Net cash provided by investing activities | |||
Purchase of investments | (367.8) | (297.2) | (303.2) |
Liquidation of investments | 405.2 | 405.5 | 583.9 |
Purchase of investments by consolidated sponsored investment products | (78.5) | (164.1) | (324.2) |
Liquidation of investments by consolidated sponsored investment products | 125.4 | 241.6 | 181 |
Purchase of investments by consolidated variable interest entities | (254.8) | (274.8) | (259.4) |
Liquidation of investments by consolidated variable interest entities | 471.9 | 402.3 | 488.9 |
Decrease in loans receivable, net | 0 | 0 | 38 |
Decrease in loans transferred to held for sale | 0 | 0 | 8.2 |
Proceeds from sale of loans transferred to held for sale | 0 | 0 | 181.3 |
Additions of property and equipment, net | (97.6) | (68.8) | (53.1) |
Net (deconsolidation) consolidation of sponsored investment products | (11.6) | 4.4 | (150.8) |
Net cash provided by investing activities | 192.2 | 248.9 | 390.6 |
Net cash used in financing activities | |||
Decrease in deposits | 0 | (0.3) | (587.5) |
Issuance of common stock | 24.1 | 25.5 | 32.6 |
Dividends paid on common stock | (408.7) | (666.4) | (290.4) |
Repurchase of common stock | (1,308) | (1,059.8) | (622.2) |
Excess tax benefit from stock-based compensation | 0.8 | 11 | 12.2 |
Proceeds from loan | 93.4 | 0 | 0 |
Payment on loan | 41.2 | 0 | 0 |
Proceeds from issuance of debt | 0 | 395.7 | 0 |
Payments on debt | 0 | 250 | 0 |
Proceeds from debt of consolidated sponsored investment products | 33.8 | 571.8 | 793.6 |
Payments on debt by consolidated sponsored investment products | (40.1) | (611.2) | (779.3) |
Payments on debt by consolidated variable interest entities | (139.7) | (121) | (194.3) |
Payments on contingent consideration liabilities | (3.2) | (7.9) | (6.3) |
Noncontrolling interests | (11.9) | 100.4 | 446.3 |
Net cash used in financing activities | (1,800.7) | (1,612.2) | (1,195.3) |
Effect of exchange rate changes on cash and cash equivalents | (4) | (116.6) | (60.4) |
Increase in cash and cash equivalents | 115.2 | 772.1 | 1,272.9 |
Cash and cash equivalents, beginning of year | 8,368.1 | 7,596 | 6,323.1 |
Cash and Cash Equivalents, End of Year | 8,483.3 | 8,368.1 | 7,596 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes | 758.6 | 925 | 979.3 |
Cash paid for interest | 47.4 | 44.6 | 40.2 |
Cash paid for interest by consolidated variable interest entities and consolidated sponsored investment products | $ 28.3 | $ 33 | $ 43.6 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Business. Franklin Resources, Inc. (“Franklin”) is a holding company that, together with its various subsidiaries (collectively, the “Company”) is referred to as Franklin Templeton Investments. The Company provides investment management and related services to investors globally through products that include investment funds and institutional, high net-worth and separately-managed accounts (collectively, the “sponsored investment products” or “SIPs”). In addition to investment management, the Company ’ s services include fund administration, sales, distribution, marketing, shareholder servicing, and trust, custody and other fiduciary services. Basis of Presentation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Management believes that the accounting estimates are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. Certain comparative amounts for prior fiscal years have been reclassified to conform to the financial statement presentation as of and for the fiscal year ended September 30, 2016 (“fiscal year 2016 ”). Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and SIPs in which it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in an entity or when it is the primary beneficiary of a variable interest entity (“VIE”). The Company also consolidates non-VIE limited partnerships and similar structures that it controls. All material intercompany accounts and transactions have been eliminated. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or the equity investment holders do not have defined rights and obligations normally associated with an equity investment. The Company ’ s VIEs are all investment entities, and its variable interests consist of its equity ownership interest in and/or investment management fees earned from these entities. The Company uses two models for determining whether it is the primary beneficiary of VIEs. For all VIEs with the exception of collateralized loan obligations (“CLOs”), the Company is the primary beneficiary if it has the majority of the risks or rewards of ownership, which it determines using expected cash flow scenarios. For CLOs, the Company is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIE ’ s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Under both models, the key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”), investment management fee rates, the life of the investment product, prepayment rates, and the discount rate. The Company is presumed to control non-VIE limited partnerships and similar structures for which it is the general partner or managing member unless the limited partners or other investors have the substantive ability to remove the Company as general partner or managing member or otherwise participate in the decision-making of the entity. The Company ’ s risk of loss in these entities is limited to its investments in the entities as the general partner and managing member entities are structured as limited liability companies. Related Parties include the investment funds sponsored by the Company as a result of the Company ’ s advisory relationship and equity method investees. The Company ’ s operating revenues and receivables are primarily from related parties. Earnings per Share . Basic and diluted earnings per share are computed using the two-class method, which considers participating securities as a separate class of shares. The Company ’ s participating securities consist of its nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Basic earnings per share is computed by dividing net income available to the Company ’ s common shareholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Fair Value Measurements. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The Company ’ s assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Transfers between levels are recognized at the end of each quarter. 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. The fair values for Level 3 assets and liabilities are determined using various methodologies in accordance with the Company ’ s global valuation and pricing policy which defines valuation and pricing conventions for each security type. When available, fair value is measured based on the reported net asset value (“NAV”) of underlying investments or independent third-party broker or dealer price quotes. These inputs are evaluated for reasonableness through various procedures which include due diligence reviews of the third parties, price comparisons across pricing vendors, stale price reviews and subsequent sales testing. If these inputs are not available, the Company primarily employs a market-based method, using purchase multiples observed for comparable third-party transactions, valuations of comparable entities, projected operating results of the investee entity or subsequent financing transactions entered into by the investee entity. If the inputs for a market-based method are not available, the Company utilizes an income-based method, which considers the net present value of anticipated future cash flows of the investment. A discount may be applied due to the nature or duration of any restrictions on the disposition of the investment. The Company reviews and approves the market-based and income-based methods on a periodic basis for changes that would impact the unobservable inputs incorporated into the valuation process. The fair value measurements from these methods are further validated through price variance analysis, subsequent sales testing and market comparable sales. The Company records a substantial amount of its investments at fair value or amounts that approximate fair value on a recurring basis. The financial assets and financial liabilities of consolidated CLOs are measured using the more observable fair value of either the financial assets or financial liabilities. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value. Cash and Cash Equivalents primarily consist of debt instruments with original maturities of three months or less at the purchase date, nonconsolidated SIP money market funds, time deposits with maturities of three months or less, and deposits with financial institutions. Cash and cash equivalents are carried at cost, except for debt instruments which are carried at amortized cost. Due to the short-term nature and liquidity of these financial instruments, the carrying values of these assets approximate fair value and, for disclosure purposes, they are classified as Level 1. The Company maintains cash and cash equivalents with financial institutions in various countries, limits the amount of credit exposure with any given financial institution and conducts ongoing evaluations of the creditworthiness of the financial institutions with which it does business. Receivables consist primarily of fees receivable from SIPs and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, the carrying values of these assets approximate fair value. Investments consist of investment securities, trading and available-for-sale, investments in equity method investees and other investments. Investment Securities, Trading consist primarily of nonconsolidated SIPs and to a lesser extent, debt and other equity securities, and are carried at fair value. Changes in the fair value of trading securities are recognized as gains and losses in earnings. The fair value of the SIPs is determined based on their published NAV and they are classified as Level 1. The fair values of certain debt and the other equity securities are determined using quoted market prices, if available, or independent third-party broker or dealer price quotes, which are evaluated for reasonableness, and they are classified as Level 2. The fair value of other debt securities is determined using discounted cash flow techniques and they are classified as Level 3. Investment Securities, Available-for-Sale consist primarily of nonconsolidated SIPs and to a lesser extent, debt and other equity securities, and are carried at fair value. Realized gains and losses are included in investment income using the average cost method. Unrealized gains and losses are recorded net of tax as part of accumulated other comprehensive income (loss) until realized. The fair value of the SIPs is determined based on their published NAV and they are classified as Level 1. The fair value of the debt securities is primarily determined using independent third-party broker or dealer price quotes and they are classified as Level 2. The fair value of other equity securities is determined using quoted market prices and they are classified as Level 1. Investments in Equity Method Investees consist of equity investments in entities, including SIPs, over which the Company is able to exercise significant influence, but not control. Significant influence is generally considered to exist when the Company ’ s ownership interest in the voting stock of the investee is between 20% and 50%, although other factors, such as representation on the investee ’ s board of directors and the impact of commercial arrangements, also are considered in determining whether the equity method of accounting is appropriate. Investments in limited partnerships and limited liability companies for which the Company is not deemed to have control are accounted for using the equity method when the Company ’ s investment is more than minor or when the Company is the general partner. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company ’ s proportionate share of the entities ’ net income, which is recognized in earnings. Other Investments consist of time deposits with maturities greater than three months from the date of purchase, equity investments in entities over which the Company is unable to exercise significant influence and are not marketable, and life settlement contracts. The time deposits are carried at cost. Due to the short-term nature and liquidity of these financial instruments, the carrying values of the time deposits approximate fair value, and they are classified as Level 2. The equity investments are accounted for under the cost method. For disclosure purposes, the fair value of these investments is generally estimated based on their NAV and they are classified as Level 3. Life settlement contracts are carried at fair value, which is determined based on discounted cash flows using significant unobservable inputs, and are classified as Level 3. Impairment of Investments. Investments other than trading securities are evaluated for other-than-temporary impairment on a quarterly basis when the cost of an investment exceeds its fair value. For equity securities, the Company considers many factors, including the severity and duration of the decline in the fair value below cost, the Company ’ s intent and ability to hold the security for a period of time sufficient for an anticipated recovery in fair value, and the financial condition and specific events related to the issuer. When an impairment of an equity security is determined to be other-than-temporary, the impairment is recognized in earnings. For debt securities, if the Company intends to sell or it is more likely than not that it will be required to sell a security before recovery of its amortized cost, the entire impairment is recognized in earnings. If the Company does not intend to sell or it is not more likely than not that it will be required to sell the security before anticipated recovery of its amortized cost, the impairment is separated into the amount of the total impairment related to the credit loss and the amount of the total impairment related to all other factors. The credit loss component is the difference between the security ' s amortized cost and the present value of the expected cash flows, and is recognized in earnings. Losses related to all other factors are recognized in accumulated other comprehensive income (loss). Cash and Cash Equivalents of Consolidated SIPs consist of deposits with financial institutions and highly liquid investments, including money market funds, which are readily convertible into cash, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value and, for disclosure purposes, they are classified as Level 1. Investments of Consolidated SIPs consist of trading securities and other investments that are not generally traded in active markets, and are carried at fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair value of the trading securities is determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. These securities are classified as Level 1 or Level 2. The quoted market prices may be adjusted if events occur, such as significant price changes in U.S.-traded market proxies after the close of corresponding foreign markets, trade halts or suspensions, or unscheduled market closures. The market proxies consist of correlated country-specific exchange-traded securities, such as futures, American Depositary Receipts indices or exchange-traded funds. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market. The investments that are not generally traded in active markets consist of debt and equity securities of entities in emerging markets and fund products. The fair values of the debt and equity securities are determined using significant unobservable inputs in either a market-based or income-based approach and they are classified as Level 3. The fair value of the fund products is determined using NAV as a practical expedient. These investments are classified as Level 2 if they are redeemable without restriction on at least a quarterly basis, or Level 3 if they have a redemption frequency greater than quarterly, are subject to redemption restrictions, or are nonredeemable. Cash and Cash Equivalents of Consolidated VIEs consist of investments in a money market fund and are carried at fair value. The fair value of the fund is based on its published NAV and it is classified as Level 1. Investments of Consolidated VIEs consist substantially of corporate debt securities and are carried at fair value. The fair value is primarily obtained from independent third-party broker or dealer price quotes and they are classified as Level 2. Property and Equipment, net are recorded at cost and are depreciated using the straight-line method over their estimated useful lives which range from three to 35 years. Expenditures for repairs and maintenance are charged to expense when incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the lease term, whichever is shorter. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the estimated useful lives of the software, which range from three to five years, beginning when the software project is complete and the application is put into production. Property and equipment is tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Carrying values are not recoverable when the undiscounted cash flows estimated to be generated by the assets are less than their carrying values. When an asset is determined to not be recoverable, the impairment is measured based on the excess, if any, of the carrying value of the asset over its respective fair value. Fair value is determined by discounted future cash flows models, appraisals or other applicable methods. Goodwill and Other Intangible Assets, net . Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. Other intangible assets consist of investment management contracts resulting from business acquisitions. These intangible assets are amortized over their estimated useful lives, which range from six to 15 years, using the straight-line method, unless the asset is determined to have an indefinite useful life. Indefinite-lived intangible assets represent contracts to manage investment assets for which there is no foreseeable limit on the contract period. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 1 and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. The Company has one reporting unit, investment management and related services, consistent with its single operating segment, to which all goodwill has been assigned. Goodwill and indefinite-lived intangible assets may first be assessed for qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on the key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed. The quantitative goodwill impairment test involves a two-step process. The first step compares the fair value of the reporting unit to its carrying value. If the carrying value is less than the fair value, no impairment exists and the second step is not performed. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step is performed to compute the amount of any impairment. In the second step, impairment is computed by comparing the implied fair value of the reporting unit goodwill with the carrying value of the goodwill. The quantitative indefinite-lived intangible assets impairment test compares the fair value of the asset to its carrying value. If the carrying value is higher than the fair value, impairment is recognized in the amount of the difference in values. In estimating the fair value of the reporting unit and indefinite-lived intangible assets, the Company uses valuation techniques based on an income approach under which future cash flows are discounted. The future cash flow estimates include assumptions about revenue and AUM growth rates, the pre-tax profit margin, the average effective fee rate, the effective tax rate, and the discount rate, which is based on the Company ’ s weighted average cost of capital. Definite-lived intangible assets are tested for impairment quarterly. Impairment is indicated when the carrying value of the asset is not recoverable and exceeds its fair value. In evaluating the recoverability of definite-lived intangible assets, the Company estimates the undiscounted future cash flows to be derived from these assets. The future undiscounted cash flow projections include assumptions about revenue and AUM growth rates, effective fee rates, investor redemptions, the pre-tax profit margin, and expected useful lives. If the carrying value of an asset is not recoverable through the related undiscounted cash flows, the impairment is measured based on the amount by which the carrying value of the asset exceeds its fair value and recognized in general, administrative and other expense. The fair value of the asset is determined by discounted cash flows or other methods as appropriate for the asset type. Deferred Sales Commissions consist of up-front commissions paid to financial advisers and broker-dealers on shares sold without a front-end sales charge to investors, and are amortized over the periods in which they are generally recovered from related revenues, which range from one to seven years. Deferred sales commissions are included in other assets in the consolidated balance sheet. Contingent Consideration Liability consists of the expected future payments related to the Company’s commitment to acquire the remaining interests in K2 Advisors Holdings, LLC (“K2”) and is included in other liabilities in the consolidated balance sheet. The liability is carried at fair value, determined using an income-based method which considers the net present value of anticipated future cash flows based on estimated future revenue and profits and timing of payments, and is classified as Level 3. Debt consists of senior notes and a loan, and are carried at amortized cost. For disclosure purposes, the fair values are estimated using quoted market prices, independent third-party broker or dealer price quotes, or prices of publicly traded debt with similar maturities, credit risk and interest rates. The notes and loan are classified as Level 2. Debt of Consolidated SIPs is carried at amortized cost. For disclosure purposes, the fair value is estimated using a discounted cash flow model that considers current interest rate levels, the quality of the underlying collateral and current economic conditions. The debt is classified as Level 3. Debt of Consolidated VIEs consists of debt of CLOs and is measured based on the fair value of the assets of the consolidated CLOs less the fair value of the Company’s own economic interests in the CLOs. Noncontrolling Interests relate almost entirely to consolidated SIPs. Noncontrolling interests that are currently redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity. Nonredeemable noncontrolling interests are classified as a component of equity. Net income (loss) attributable to third-party investors is reflected as net income (loss) attributable to nonredeemable and redeemable noncontrolling interests in the consolidated statements of income. Sales and redemptions of shares of consolidated SIPs by third-party investors are a component of the change in noncontrolling interests included in financing activities in the consolidated statements of cash flows. Revenues . Fees from providing investment management and fund administration services (“investment management fees”), distribution fees and shareholder servicing fees are recognized as earned, over the period in which services are rendered, except for performance-based investment management fees, which are recognized when earned. Sales commissions related to the sale of shares of SIPs are recognized on trade date. Investment management fees, other than performance-based fees, and distribution fees are determined based on a percentage of AUM, primarily on a monthly basis using average daily AUM. Performance-based investment management fees are based on performance targets established in the related investment management contracts. Shareholder servicing fees are generally calculated based on the number and type of accounts serviced. AUM is generally based on the fair value of the underlying securities held by SIPs and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market. The fair values of the underlying securities for which market prices are not readily available are internally valued using various methodologies which incorporate significant unobservable inputs as appropriate for each security type and represent an insignificant percentage of total AUM. Pricing of the securities held by SIPs is governed by the Company ’ s global valuation and pricing policy, which defines valuation and pricing conventions for each security type, including practices for responding to unexpected or unusual market events. Sales commissions and distribution fees are recorded gross of sales and distribution expenses paid to financial advisers and other intermediaries as the Company acts as the principal in its role as primary obligor to the sales and distribution agreements. Stock-Based Compensation. The fair value of share-based payment awards is estimated on the date of grant based on the market price of the underlying shares of the Company ’ s common stock and is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally three years. Expense relating to awards subject to performance conditions is recognized if it is probable that the performance goals will be achieved. The probability of achievement is assessed on a quarterly basis. The total number of awards expected to vest is adjusted for estimated forfeitures. Postretirement Benefits . Defined contribution plan costs are expensed as incurred. Income Taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. For each tax position taken or expected to be taken in a tax return, the Company determines whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company recognizes the accrual of interest on uncertain tax positions in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the United States and generates earnings from its non-U.S. subsidiaries. The Company indefinitely reinvests the undistributed earnings of its non-U.S. subsidiaries, except for income previously taxed in the U.S., subject to regulatory or legal repatriation restrictions or requirements, and the excess net earnings reduced by cash needs for operational and regulatory capital requirements, capital management plans and capital expenditure plans of its Canadian and U.K. subsidiaries. Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings. |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | New Accounting Guidance The Financial Accounting Standards Board (“FASB”) issued an amendment to the existing consolidation guidance in February 2015. The amendment modifies the consolidation framework for certain investment entities and all limited partnerships. It also eliminates certain criteria used to determine whether fees paid to a decision maker are a variable interest. The Company will adopt the amended guidance on October 1, 2016 and recognize a cumulative effect adjustment to retained earnings. The adoption is expected to result in the consolidation of SIPs that will change from voting interest entities to VIEs and become subject to a lower threshold for consolidation. In addition, certain CLOs for which the Company will no longer be the primary beneficiary and several limited partnerships are expected to be deconsolidated upon adoption of the amendment. The FASB issued an amendment to the existing stock-based compensation guidance in March 2016. The amendment requires all income tax effects of stock-based awards to be recognized as income tax expense when the awards vest or settle, provides an election to account for forfeitures as they occur and clarifies the classification of these transactions within the statement of cash flows. The amendment is effective for the Company on October 1, 2017 and requires varying transition approaches for the different changes to the guidance. The Company is currently evaluating the impact of adopting the amendment. The FASB issued new guidance in May 2014 that requires use of a single principles-based model for recognition of revenue from contracts with customers. The core principle of the model is that revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received for the goods or services. The guidance is effective for the Company on October 1, 2018 and allows for either a full retrospective or modified approach at adoption. The Company is currently evaluating the impact of adopting the guidance. The FASB issued an amendment to the existing financial instruments guidance in January 2016. The amendment requires substantially all equity investments in nonconsolidated entities to be measured at fair value with changes recognized in net income, except for those accounted for using the equity method of accounting. The amendment also provides an election to measure equity investments that do not have a readily determinable fair value at cost less impairment, if any. The amendment is effective for the Company on October 1, 2018 and requires a cumulative effect adjustment to retained earnings at adoption. The Company is currently evaluating the impact of adopting the amendment. The FASB issued new guidance for the accounting for leases in February 2016. The new guidance requires lessees to recognize assets and liabilities arising from substantially all leases. The guidance is effective for the Company on October 1, 2019 and requires a modified retrospective approach at adoption. The Company is currently evaluating the impact of adopting the guidance. The FASB issued new guidance for the accounting for credit losses in June 2016. The new guidance requires the application of a current expected credit loss model for financial assets measured at amortized cost and an allowance for credit loss model for available-for-sale debt securities. The guidance is effective for the Company on October 1, 2020 and requires a cumulative effect adjustment to retained earnings at adoption. The Company is currently evaluating the impact of adopting the guidance. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The components of basic and diluted earnings per share were as follows: (in millions, except per share data) for the fiscal years ended September 30, 2016 2015 2014 Net income attributable to Franklin Resources, Inc. $ 1,726.7 $ 2,035.3 $ 2,384.3 Less: allocation of earnings to participating nonvested stock and stock unit awards 10.9 12.0 14.3 Net Income Available to Common Stockholders $ 1,715.8 $ 2,023.3 $ 2,370.0 Weighted-average shares outstanding – basic 583.8 614.8 624.8 Dilutive effect of nonparticipating nonvested stock unit awards and common stock options — 0.1 0.4 Weighted-Average Shares Outstanding – Diluted 583.8 614.9 625.2 Earnings per Share Basic $ 2.94 $ 3.29 $ 3.79 Diluted 2.94 3.29 3.79 Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 1.3 million for fiscal year 2016 , 0.9 million for the fiscal year ended September 30, 2015 (“fiscal year 2015 ”), and 0.1 million for the fiscal year ended September 30, 2014 (“fiscal year 2014 ”). |
Investments
Investments | 12 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investments | Investments The disclosures below include details of the Company’s investments, excluding those of consolidated SIPs and consolidated VIEs. See Note 9 – Variable Interest Entities and Consolidated Sponsored Investment Products for information related to the investments held by these entities. Investments consisted of the following: (in millions) as of September 30, 2016 2015 Investment securities, trading SIPs $ 844.4 $ 1,166.0 Debt and other equity securities 277.5 85.2 Total investment securities, trading 1,121.9 1,251.2 Investment securities, available-for-sale SIPs 297.7 408.3 Debt and other equity securities 3.7 38.1 Total investment securities, available-for-sale 301.4 446.4 Investments in equity method investees 797.4 655.3 Other investments 195.9 106.3 Total $ 2,416.6 $ 2,459.2 Debt and other equity trading securities consist primarily of corporate debt. At September 30, 2016 and 2015 , investment securities with aggregate carrying amounts of $117.3 million and $4.3 million were pledged as collateral. Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows: (in millions) Gross Unrealized as of September 30, 2016 Cost Basis Gains Losses Fair Value SIPs $ 289.6 $ 13.7 $ (5.6 ) $ 297.7 Debt and other equity securities 3.6 0.1 — 3.7 Total $ 293.2 $ 13.8 $ (5.6 ) $ 301.4 (in millions) Gross Unrealized as of September 30, 2015 Cost Basis Gains Losses Fair Value SIPs $ 382.6 $ 32.4 $ (6.7 ) $ 408.3 Debt and other equity securities 37.9 0.4 (0.2 ) 38.1 Total $ 420.5 $ 32.8 $ (6.9 ) $ 446.4 Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows: 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, 2016 SIPs $ 75.8 $ (4.3 ) $ 18.0 $ (1.3 ) $ 93.8 $ (5.6 ) 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, 2015 SIPs $ 99.8 $ (5.6 ) $ 21.0 $ (1.1 ) $ 120.8 $ (6.7 ) Debt and other equity securities 10.9 (0.2 ) — — 10.9 (0.2 ) Total $ 110.7 $ (5.8 ) $ 21.0 $ (1.1 ) $ 131.7 $ (6.9 ) The Company recognized $11.1 million , $10.0 million and $0.6 million of other-than-temporary impairment during fiscal years 2016 , 2015 and 2014 , of which $5.8 million , $8.2 million and $0.4 million related to available-for-sale SIPs. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The disclosures below include details of the Company’s fair value measurements, excluding those of consolidated SIPs and consolidated VIEs. See Note 9 – Variable Interest Entities and Consolidated Sponsored Investment Products for information related to fair value measurements of the assets and liabilities of these entities. Assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2016 Assets Investment securities, trading SIPs $ 844.4 $ — $ — $ 844.4 Debt and other equity securities 2.6 84.1 190.8 277.5 Investment securities, available-for-sale SIPs 297.7 — — 297.7 Debt and other equity securities 1.6 2.1 — 3.7 Life settlement contracts — — 14.3 14.3 Total Assets Measured at Fair Value $ 1,146.3 $ 86.2 $ 205.1 $ 1,437.6 Liabilities Contingent consideration liability $ — $ — $ 98.1 $ 98.1 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2015 Assets Investment securities, trading SIPs $ 1,166.0 $ — $ — $ 1,166.0 Debt and other equity securities 2.2 77.0 6.0 85.2 Investment securities, available-for-sale SIPs 408.3 — — 408.3 Debt and other equity securities 12.2 25.9 — 38.1 Life settlement contracts — — 14.7 14.7 Total Assets Measured at Fair Value $ 1,588.7 $ 102.9 $ 20.7 $ 1,712.3 Liabilities Contingent consideration liabilities $ — $ — $ 102.9 $ 102.9 There were no transfers between Level 1 and Level 2, or into or out of Level 3, during fiscal years 2016 and 2015 . Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: 2016 2015 (in millions) Investments Contingent Consideration Liabilities Investments Contingent Consideration Liabilities for the fiscal years ended September 30, Balance at beginning of year $ 20.7 $ (102.9 ) $ 14.0 $ (98.5 ) Total realized and unrealized gains (losses) Included in investment and other income, net (2.4 ) — 1.6 — Included in general, administrative and other expense — 1.0 — (12.4 ) Other — — — (0.1 ) Purchases 190.4 — 6.6 — Sales (4.0 ) — — — Settlements (2.8 ) 3.8 (1.5 ) 7.9 Foreign exchange revaluation 3.2 — — 0.2 Balance at End of Year $ 205.1 $ (98.1 ) $ 20.7 $ (102.9 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of year $ (4.0 ) $ 1.0 $ 0.8 $ (12.5 ) Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows: (in millions) as of September 30, 2016 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading - debt and other equity securities $ 190.8 Discounted cash flow Discount rate 3.6%–6.9% (6.7%) Risk premium 2.0%–17.9% (16.5%) Liquidity discount 0.0%–10.0% (9.6%) Life settlement contracts 14.3 Discounted cash flow Life expectancy 20–132 months (65) Discount rate 3.3%–18.0% (11.5%) Contingent consideration liability 98.1 Discounted cash flow AUM growth rate 2.4%–11.5% (5.9%) EBITDA margin 14.3% Discount rate 13.2% (in millions) as of September 30, 2015 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading - debt and other equity securities $ 6.0 Discounted cash flow Discount rate 5.2%–6.1% (5.7%) Risk premium 2.7%–2.8% (2.8%) Life settlement contracts 14.7 Discounted cash flow Life expectancy 21–141 months (68) Discount rate 3.3%–19.0% (11.7%) Contingent consideration liabilities 102.9 Discounted cash flow AUM growth rate 0.5%–5.8% (4.4%) EBITDA margin 19.3%–22.9% (22.0%) Discount rate 14.0% For investment securities, trading - debt and other equity securities, a significant increase (decrease) in the discount rate, risk premium or liquidity discount in isolation would result in a significantly lower (higher) fair value measurement. For life settlement contracts, a significant increase (decrease) in the life expectancy or the discount rate in isolation would result in a significantly lower (higher) fair value measurement. For the contingent consideration liability, a significant increase (decrease) in the AUM growth rate or EBITDA margin, or decrease (increase) in the discount rate, in isolation would result in a significantly higher (lower) fair value measurement. Financial instruments that were not measured at fair value were as follows: (in millions) 2016 2015 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 8,247.1 $ 8,247.1 $ 8,184.9 $ 8,184.9 Other investments Time deposits 2 131.6 131.6 37.0 37.0 Cost method investments 3 50.0 61.3 54.6 60.1 Financial Liabilities Debt Senior notes 2 1,348.5 1,412.5 1,348.0 1,374.9 Loan 2 52.7 52.7 — — |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following: (in millions) Useful Lives In Years as of September 30, 2016 2015 Furniture, software and equipment $ 756.4 $ 733.6 3 – 10 Premises and leasehold improvements 563.5 557.0 5 – 35 Land 74.1 74.2 N/A Total cost 1,394.0 1,364.8 Less: accumulated depreciation and amortization (870.8 ) (854.7 ) Property and Equipment, Net $ 523.2 $ 510.1 Depreciation and amortization expense related to property and equipment was $81.0 million , $81.6 million and $82.6 million in fiscal years 2016 , 2015 and 2014 . The Company recognized insignificant impairments of equipment during fiscal years 2016 and 2015, and no impairment during fiscal year 2014. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net consisted of the following: (in millions) as of September 30, 2016 2015 Goodwill $ 1,661.2 $ 1,661.2 Indefinite-lived intangible assets 530.9 538.3 Definite-lived intangible assets, net 19.2 57.5 Goodwill and Other Intangible Assets, Net $ 2,211.3 $ 2,257.0 Indefinite-lived intangible assets consist of management contracts. No impairment of goodwill or indefinite-lived intangible assets was recognized during fiscal years 2016 , 2015 and 2014 . The goodwill carrying value changed during fiscal year 2015 due to foreign exchange revaluation. Definite-lived intangible assets were as follows: 2016 2015 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value as of September 30, Management contracts $ 60.1 $ (40.9 ) $ 19.2 $ 89.5 $ (36.2 ) $ 53.3 Customer base — — — 164.5 (160.3 ) 4.2 Total $ 60.1 $ (40.9 ) $ 19.2 $ 254.0 $ (196.5 ) $ 57.5 Amortization expense related to definite-lived intangible assets was $10.4 million , $20.1 million and $20.8 million for fiscal years 2016 , 2015 and 2014 . The Company recognized impairment of management contract definite-lived intangible assets, primarily related to the K2 Advisors Holdings, LLC acquisition, of $28.2 million and $8.2 million during fiscal years 2016 and 2015 due to increased investor redemptions and lower estimates of future sales. The impairment in fiscal year 2016 was also due to renegotiations of certain investment management fees. No impairment of definite-lived intangible assets was recognized during fiscal year 2014 . Definite-lived intangible assets had a weighted-average remaining useful life of 7.6 years at September 30, 2016 , with estimated remaining amortization expense as follows: (in millions) for the fiscal years ending September 30, Amount 2017 $ 4.4 2018 4.4 2019 1.6 2020 1.4 2021 1.2 Thereafter 6.2 Total $ 19.2 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The disclosures below include details of the Company’s debt, excluding that of consolidated SIPs and consolidated VIEs. See Note 9 – Variable Interest Entities and Consolidated Sponsored Investment Products for information related to the debt of these entities. Debt consisted of the following: (in millions) 2016 Effective Interest Rate 2015 Effective Interest Rate as of September 30, Senior Notes $300 million 1.375% notes due September 2017 $ 299.7 1.66 % $ 299.4 1.66 % $350 million 4.625% notes due May 2020 349.9 4.74 % 349.8 4.74 % $300 million 2.800% notes due September 2022 299.5 2.93 % 299.5 2.93 % $400 million 2.850% notes due March 2025 399.4 2.97 % 399.3 2.97 % Total senior notes 1,348.5 1,348.0 Other Loan due March 2017 52.7 9.89 % — N/A Total $ 1,401.2 $ 1,348.0 At September 30, 2016 , the Company’s outstanding senior unsecured unsubordinated notes had an aggregate face value of $1.4 billion . The notes have fixed interest rates with interest payable semi-annually and contain an optional redemption feature that allows the Company to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The indentures governing the notes contain limitations on the Company’s ability and the ability of its subsidiaries to pledge voting stock or profit participating equity interests in its subsidiaries to secure other debt without similarly securing the notes equally and ratably. The indentures also include requirements that must be met if the Company consolidates or merges with, or sells all or substantially all of its assets to, another entity. In March 2016, the Company borrowed 6.3 billion Indian Rupees ( $93.4 million ) at a fixed interest rate of 9.89% to purchase certain securities from SIPs domiciled in India. Interest on the loan is payable monthly, and the loan may be prepaid without penalty. To secure the loan, the Company concurrently entered into a standby letter of credit for 6.5 billion Indian Rupees ( $96.6 million ) collateralized by a $116.0 million time deposit. The loan agreement requires that the borrowing entity, a subsidiary of the Company located in India, maintain a specified minimum level of capital. In September 2016, the Company prepaid 2.8 billion Indian Rupees ( $41.2 million ) of the loan. The Company was in compliance with all debt covenants at September 30, 2016 . At September 30, 2016 , maturities for debt were as follows: (in millions) Carrying Amount for the fiscal years ending September 30, 2017 $ 352.4 2018 — 2019 — 2020 349.9 2021 — Thereafter 698.9 Total $ 1,401.2 At September 30, 2016 , the Company had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012 . |
VIEs and CSIPs
VIEs and CSIPs | 12 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities and Consolidated Sponsored Investment Products [Abstract] | |
Variable Interest Entities and Consolidated Sponsored Investment Products | Variable Interest Entities and Consolidated Sponsored Investment Products The Company sponsors and manages various types of investment products, which consist of both VIEs and non-VIEs. The Company consolidates the VIE products for which it is the primary beneficiary and the non-VIE products which it controls. The Company has no right to the consolidated products’ assets, other than its direct equity investment in them, and/or investment management fees earned from them. The debt holders of these consolidated entities have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the entities’ liabilities. The balances of consolidated SIPs and consolidated VIEs included in the Company’s consolidated balance sheets were as follows: 2016 2015 (in millions) Consolidated Consolidated as of September 30, SIPs VIEs Total SIPs VIEs Total Assets Cash and cash equivalents $ 89.8 $ 146.4 $ 236.2 $ 108.5 $ 74.7 $ 183.2 Receivables 24.3 23.6 47.9 10.0 11.5 21.5 Investments, at fair value 1,025.6 487.8 1,513.4 977.4 672.5 1,649.9 Other assets 1.4 — 1.4 0.7 — 0.7 Total Assets $ 1,141.1 $ 657.8 $ 1,798.9 $ 1,096.6 $ 758.7 $ 1,855.3 Liabilities Accounts payable and accrued expenses $ 19.5 $ 45.7 $ 65.2 $ 10.8 $ 25.3 $ 36.1 Debt 75.0 607.2 682.2 81.2 726.1 807.3 Other liabilities 8.5 — 8.5 6.3 — 6.3 Total liabilities 103.0 652.9 755.9 98.3 751.4 849.7 Redeemable Noncontrolling Interests 61.1 — 61.1 59.6 — 59.6 Stockholders ’ Equity Franklin Resources Inc.’s interests 409.2 4.9 414.1 308.8 7.3 316.1 Nonredeemable noncontrolling interests 567.8 — 567.8 629.9 — 629.9 Total stockholders’ equity 977.0 4.9 981.9 938.7 7.3 946.0 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 1,141.1 $ 657.8 $ 1,798.9 $ 1,096.6 $ 758.7 $ 1,855.3 The consolidated SIPs and consolidated VIEs did not have a significant impact on net income attributable to the Company in fiscal years 2016 , 2015 and 2014 . Consolidated SIPs Consolidated SIPs consist of limited partnerships and similar structures that the Company controls and other fund products in which the Company has a controlling financial interest. The Company consolidated 37 SIPs as of September 30, 2016 , and 32 SIPs as of September 30, 2015 . SIPs are typically consolidated when the Company makes an initial investment in a newly launched fund or limited partnership entity, and are deconsolidated when the Company redeems its investment in the SIP or its voting interests decrease to a minority percentage. The Company’s investments in SIPs subsequent to deconsolidation are accounted for as trading or available-for-sale investment securities, or equity method or cost method investments depending on the nature of the SIP and the Company’s level of ownership. Consolidated VIEs Consolidated VIEs consist of sponsored CLOs, which are asset-backed financing entities collateralized by a pool of corporate debt securities. The Company generally earns senior and subordinated management fees from the CLOs based on the par value of outstanding investments and, in certain instances, may also receive performance-based fees. In addition, the Company holds a residual interest in one of these entities. The debt holders of the CLOs have recourse only to the corresponding collateralized assets, which cannot be used by the Company for any other purpose. Scheduled debt payments are based on the performance of the CLOs collateral pool and may be prepaid prior to the contractual maturity dates. The Company is the primary beneficiary of the CLOs as it has the power to direct the activities that most significantly impact the CLOs’ economic performance in its role as collateral manager and has the right to receive benefits that could potentially be significant to the CLOs. During fiscal years 2016 and 2015 , the Company recognized $6.2 million and $8.3 million of net gains related to its own economic interests in the CLOs. The unpaid principal balance and fair value of the investments of the CLOs were as follows: (in millions) as of September 30, 2016 2015 Unpaid principal balance $ 496.0 $ 694.5 Difference between unpaid principal balance and fair value (8.2 ) (22.0 ) Fair Value $ 487.8 $ 672.5 There were no investments 90 days or more past due at September 30, 2016 or 2015 . The unpaid principal balance of the debt of the CLOs was $653.8 million and $769.3 million at September 30, 2016 and 2015 . Investments Investments of consolidated SIPs and consolidated VIEs consisted of the following: 2016 2015 (in millions) Consolidated Consolidated as of September 30, SIPs VIEs Total SIPs VIEs Total Investment securities, trading $ 287.8 $ — $ 287.8 $ 180.5 $ — $ 180.5 Other debt securities 131.0 487.3 618.3 129.2 672.5 801.7 Other equity securities 606.8 0.5 607.3 667.7 — 667.7 Total $ 1,025.6 $ 487.8 $ 1,513.4 $ 977.4 $ 672.5 $ 1,649.9 Investment securities, trading held by consolidated SIPs consist of equity and debt securities that are traded in active markets. Other equity and debt securities held by consolidated SIPs primarily consist of direct investments in equity securities and secured and unsecured debt securities of entities in emerging markets, which are generally not traded in active markets. Other equity securities also include investments in funds that are not traded in active markets. Substantially all investments of consolidated VIEs are corporate debt securities. Debt Debt of consolidated SIPs and consolidated VIEs consisted of the following: (in millions) Amount Effective Interest Rate as of September 30, 2016 Debt of consolidated SIPs due fiscal years 2017-2019 $ 75.0 4.79 % Debt of consolidated VIEs due fiscal years 2018-2024 607.2 2.24 % Total $ 682.2 (in millions) Amount Effective Interest Rate as of September 30, 2015 Debt of consolidated SIPs due fiscal years 2016-2019 $ 81.2 4.71 % Debt of consolidated VIEs due fiscal years 2018-2024 726.1 1.62 % Total $ 807.3 The debt of consolidated SIPs had fixed and floating interest rates ranging from 2.36% to 6.19% at September 30, 2016 , and from 2.30% to 5.81% at September 30, 2015 . The repayment of amounts outstanding under the debt agreements is secured by the assets of the consolidated SIPs or a pledge of the right to call capital. The debt of consolidated VIEs had floating interest rates ranging from 1.02% to 10.16% at September 30, 2016 , and from 0.54% to 9.79% at September 30, 2015 . At September 30, 2016 , contractual maturities for debt of consolidated SIPs and consolidated VIEs were as follows: (in millions) Carrying Amount for the fiscal years ending September 30, 2017 $ 40.4 2018 79.8 2019 280.1 2020 — 2021 — Thereafter 281.9 Total $ 682.2 Fair Value Measurements Assets and liabilities of consolidated SIPs and consolidated VIEs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2016 Assets Cash and cash equivalents of consolidated VIEs $ 146.4 $ — $ — $ 146.4 Receivables of consolidated VIEs — 23.6 — 23.6 Investments of consolidated SIPs Equity securities 155.4 1.3 605.5 762.2 Debt securities — 131.8 131.6 263.4 Investments of consolidated VIEs — 487.1 0.7 487.8 Total Assets Measured at Fair Value $ 301.8 $ 643.8 $ 737.8 $ 1,683.4 Liabilities Other liabilities of consolidated SIPs $ 0.1 $ 8.4 $ — $ 8.5 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2015 Assets Cash and cash equivalents of consolidated VIEs $ 74.7 $ — $ — $ 74.7 Receivables of consolidated VIEs — 11.5 — 11.5 Investments of consolidated SIPs Equity securities 88.9 8.5 656.4 753.8 Debt securities — 93.8 129.8 223.6 Investments of consolidated VIEs — 672.1 0.4 672.5 Total Assets Measured at Fair Value $ 163.6 $ 785.9 $ 786.6 $ 1,736.1 Liabilities Other liabilities of consolidated SIPs $ 3.3 $ 3.0 $ — $ 6.3 Receivables of consolidated VIEs consist primarily of investment trades pending settlement. The fair value of the assets is obtained from independent third-party broker or dealer quotes. Other liabilities of consolidated SIPs consist of short positions in debt and equity securities. The fair value of the liabilities is determined based on the fair value of the underlying securities using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices securities are not available. Investments in fund products for which fair value was estimated using NAV as a practical expedient were as follows: (in millions) Fair Value Level as of September 30, Redemption Frequency 2016 2015 Real estate and private equity funds Nonredeemable 3 $ 444.2 $ 463.6 Hedge funds Triennially 3 1.0 1.2 Hedge funds Monthly or quarterly 2 0.8 8.0 Total $ 446.0 $ 472.8 The investments in real estate and private equity funds are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over a weighted-average period of 3.2 years and 3.9 years at September 30, 2016 and 2015 . The consolidated SIPs’ unfunded commitments to these funds totaled $74.4 million and $94.5 million at September 30, 2016 and 2015 , of which the Company was contractually obligated to fund $2.2 million and $2.4 million based on its ownership percentage in the SIPs. There were no transfers between Level 1 and Level 2, or into or out of Level 3, during fiscal years 2016 and 2015. Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Investments of Consolidated SIPs Investments of Consolidated VIEs Total Level 3 Assets for the fiscal year ended September 30, 2016 Equity Debt Balance at October 1, 2015 $ 656.4 $ 129.8 $ 0.4 $ 786.6 Realized and unrealized losses included in investment and other income, net (7.3 ) (10.3 ) (0.2 ) (17.8 ) Purchases 60.6 26.3 0.5 87.4 Sales (103.5 ) (15.4 ) — (118.9 ) Foreign exchange revaluation (0.7 ) 1.2 — 0.5 Balance at September 30, 2016 $ 605.5 $ 131.6 $ 0.7 $ 737.8 Change in unrealized losses included in net income relating to assets and liabilities held at September 30, 2016 $ (13.3 ) $ (10.7 ) $ (0.2 ) $ (24.2 ) (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, 2015 Equity Debt Balance at October 1, 2014 $ 614.3 $ 206.3 $ 0.5 $ 821.1 $ (47.2 ) Adjustment for adoption of new accounting guidance — — — — 47.2 Realized and unrealized gains (losses) included in investment and other income, net 39.5 (5.6 ) (0.1 ) 33.8 — Purchases 142.8 25.8 — 168.6 — Sales (134.7 ) (88.9 ) — (223.6 ) — Settlements — (0.6 ) — (0.6 ) — Foreign exchange revaluation (5.5 ) (7.2 ) — (12.7 ) — Balance at September 30, 2015 $ 656.4 $ 129.8 $ 0.4 $ 786.6 $ — Change in unrealized gains (losses) included in net income relating to assets and liabilities held at September 30, 2015 $ 28.0 $ (10.4 ) $ (0.1 ) $ 17.5 $ — Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows: (in millions) as of September 30, 2016 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 113.1 Market comparable companies EBITDA multiple 5.0–14.2 (10.3) Discount for lack of marketability 25.0%–50.0% (36.6%) 24.3 Discounted cash flow Discount rate 5.0%–19.0% (13.7%) 22.9 Market pricing Price to book value ratio 1.8–2.3 (2.0) Debt securities 119.0 Discounted cash flow Discount rate 6.0%–15.0% (10.4%) Risk premium 0.0%–28.0% (9.7%) EBITDA multiple 5.5 12.6 Market pricing Private sale pricing $57 per $100 of par (in millions) as of September 30, 2015 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 128.8 Market comparable companies EBITDA multiple 4.2–10.7 (8.8) Discount for lack of marketability 25.0%–50.0% (34.9%) 47.7 Market pricing Price to book value ratio 1.8–2.8 (2.3) 15.1 Discounted cash flow Discount rate 6.3%–19.0% (12.8%) Debt securities 129.8 Discounted cash flow Discount rate 3.5%–17.0% (9.4%) Risk premium 0.0%–18.0% (4.6%) Level 3 equity securities held by consolidated SIPs consisted primarily of common and preferred shares, and debt securities consisted of corporate loans and notes and mezzanine loans at September 30, 2016 and 2015 . The fair values of $445.2 million and $464.8 million of investments in various funds held by consolidated SIPs for which fair value was estimated using NAV as a practical expedient are excluded from the above two tables at September 30, 2016 and 2015 . Following are descriptions of the sensitivity of the Level 3 recurring fair value measurements to changes in the significant unobservable inputs presented in the above tables. For securities utilizing the market comparable companies valuation technique, a significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount for lack of marketability in isolation would result in a significantly lower (higher) fair value measurement. The discount for lack of marketability used to determine fair value may include other factors such as liquidity or credit risk. For securities utilizing the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate or risk premium in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the discount rate is accompanied by a directionally similar change in the risk premium. A significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. For securities utilizing a market pricing valuation technique, a significant increase (decrease) in the price to book value ratio would result in a significantly higher (lower) fair value measurement. Financial instruments of consolidated SIPs and consolidated VIEs that were not measured at fair value were as follows: (in millions) September 30, 2016 September 30, 2015 Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents of consolidated SIPs 1 $ 89.8 $ 89.8 $ 108.5 $ 108.5 Financial Liabilities Debt of consolidated SIPs 3 75.0 74.6 81.2 77.9 Debt of consolidated VIEs 1 2 or 3 607.2 594.5 726.1 719.3 _________________ 1 Substantially all is Level 2. Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests of consolidated SIPs were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Balance at beginning of year $ 59.6 $ 234.8 $ 121.8 Net income (loss) 1.6 (6.1 ) 20.6 Net subscriptions and other 79.9 149.4 436.0 Net deconsolidations (80.0 ) (318.5 ) (343.6 ) Balance at End of Year $ 61.1 $ 59.6 $ 234.8 Nonconsolidated VIEs VIEs for which the Company is not the primary beneficiary consist of sponsored and other investment products from which the Company earns investment management fees and/or in which it has an equity ownership interest. The carrying values of the investment management fees receivable from and the equity ownership interests in these VIEs included in the Company’s consolidated balance sheets are set forth below. These amounts represent the Company’s maximum exposure to loss from these investment products. (in millions) as of September 30, 2016 2015 Receivables $ 21.4 $ 35.5 Investments 77.3 236.6 Total $ 98.7 $ 272.1 While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching SIPs. The Company also may voluntarily elect to provide its SIPs with additional direct or indirect financial support based on its business objectives. During fiscal year 2016 , the Company purchased $182.7 million of certain debt securities from six SIPs domiciled in India in order to provide additional liquidity to the SIPs. The Company did not provide financial or other support to its SIPs during fiscal year 2015 . |
Taxes on Income
Taxes on Income | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income Taxes on income were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Current expense Federal $ 582.8 $ 733.9 $ 803.6 State 47.5 83.1 82.4 Non-U.S. 102.8 121.1 114.1 Deferred expense (benefit) 9.0 (14.4 ) (2.2 ) Total $ 742.1 $ 923.7 $ 997.9 The tax benefit from the utilization of net operating loss carry-forwards was insignificant in fiscal years 2016 , 2015 and 2014 . The Company had a tax shortfall of $5.9 million associated with stock-based compensation plans in fiscal year 2016 and tax benefits of $10.9 million and $13.3 million in fiscal years 2015 and 2014 which reduced the amount of income taxes that would have otherwise been payable. The tax shortfall and benefits are reflected as components of stockholders ’ equity. Income before taxes consisted of the following: (in millions) for the fiscal years ended September 30, 2016 2015 2014 U.S. $ 1,641.7 $ 2,026.4 $ 2,160.8 Non-U.S. 858.1 1,002.0 1,248.8 Total $ 2,499.8 $ 3,028.4 $ 3,409.6 The Company’s income in certain countries is subject to reduced tax rates due to tax rulings. The impact of the reduced rates on income tax expense was $34.2 million or $0.06 per diluted share for fiscal year 2016 , $68.3 million or $0.11 per diluted share for fiscal year 2015 , and $100.6 million or $0.16 per diluted share for fiscal year 2014 . The tax rulings will expire in fiscal years 2019 and 2022 . The significant components of deferred tax assets and deferred tax liabilities were as follows: (in millions) as of September 30, 2016 2015 Deferred Tax Assets Deferred compensation and employee benefits $ 52.9 $ 60.8 Stock-based compensation 36.6 38.7 Net operating loss carry-forwards 32.5 40.3 Tax benefit for uncertain tax positions 19.8 29.6 Other 12.5 11.6 Total deferred tax assets 154.3 181.0 Valuation allowance for net operating loss carry-forwards (24.6 ) (34.0 ) Deferred tax assets, net of valuation allowance 129.7 147.0 Deferred Tax Liabilities Goodwill and other purchased intangibles 202.8 217.3 Deferred commissions 18.3 21.2 Depreciation on fixed assets 18.0 13.4 Other 34.4 35.8 Total deferred tax liabilities 273.5 287.7 Net Deferred Tax Liability $ 143.8 $ 140.7 Deferred income tax assets and liabilities that relate to the same tax jurisdiction are presented net on the consolidated balance sheets. The components of the net deferred tax liability were classified in the consolidated balance sheets as follows: (in millions) as of September 30, 2016 2015 Other assets $ 17.7 $ 100.7 Deferred tax liabilities 161.5 241.4 Net Deferred Tax Liability $ 143.8 $ 140.7 At September 30, 2016 , there were $135.8 million of non-U.S. net operating loss carry-forwards, $68.5 million of which expire between 2018 and 2026 with the remaining carry-forwards having an indefinite life. In addition, there were $74.2 million in state net operating loss carry-forwards that expire between 2017 and 2036 . A partial valuation allowance has been provided to offset the related deferred tax assets due to the uncertainty of realizing the benefit of the net operating loss carry-forwards. The valuation allowance decreased $9.4 million in fiscal year 2016 and increased $7.7 million in fiscal year 2015 . The Company has made no provision for U.S. income taxes on $8.5 billion of cumulative undistributed non-U.S. earnings that are indefinitely reinvested at September 30, 2016 . Determination of the potential amount of unrecognized deferred U.S. income tax liability related to such reinvested non-U.S. earnings is not practicable because of the numerous assumptions associated with this hypothetical calculation. However, foreign tax credits would be available to reduce some portion of this amount. Changes to the Company’s policy of reinvestment or repatriation of non-U.S. earnings may have a significant effect on its financial condition and results of operations. A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Federal taxes at statutory rate $ 874.9 35.0 % $ 1,059.9 35.0 % $ 1,193.4 35.0 % State taxes, net of federal tax effect 42.7 1.7 % 51.6 1.7 % 52.4 1.5 % Effect of non-U.S. operations (153.0 ) (6.1 %) (148.5 ) (4.9 %) (246.3 ) (7.2 %) Effect of net income attributable to noncontrolling interests (10.9 ) (0.4 %) (24.3 ) (0.8 %) (9.6 ) (0.3 %) Other (11.6 ) (0.5 %) (15.0 ) (0.5 %) 8.0 0.3 % Tax Provision $ 742.1 29.7 % $ 923.7 30.5 % $ 997.9 29.3 % A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Balance at beginning of year $ 105.2 $ 118.2 $ 109.5 Additions for tax positions of prior years 0.6 12.6 3.0 Reductions for tax positions of prior years (9.0 ) (3.4 ) (2.4 ) Tax positions related to the current year 12.9 16.2 14.1 Settlements with taxing authorities (5.4 ) (0.1 ) (0.3 ) Expirations of statute of limitations (22.2 ) (38.3 ) (5.7 ) Balance at End of Year $ 82.1 $ 105.2 $ 118.2 If recognized, substantially all of the balance, net of any deferred tax benefits, would favorably affect the Company’s effective income tax rate in future periods. Accrued interest on uncertain tax positions at September 30, 2016 and 2015 was $9.6 million and $11.2 million , and is not presented in the unrecognized tax benefits table above. Interest expense (benefit) of $(1.3) million , $(6.6) million and $2.4 million was recognized during fiscal years 2016 , 2015 and 2014 . Accrued penalties at September 30, 2016 and 2015 were insignificant. The Company files a consolidated U.S. federal income tax return, multiple U.S. state and local income tax returns, and income tax returns in multiple non-U.S. jurisdictions. The Company is subject to examination by the taxing authorities in these jurisdictions. The Company’s major tax jurisdictions and the tax years for which the statutes of limitations have not expired are as follows: India 2003 to 2016; Canada 2009 to 2016; Hong Kong 2010 to 2016; Singapore 2011 to 2016; Luxembourg 2012 to 2016; the U.K. 2015 to 2016; U.S. federal 2013 to 2016; the State of California 2008 to 2010, and 2012 to 2016; the State of Minnesota and City of New York 2012 to 2016; and the States of Florida, Massachusetts and New York 2013 to 2016. The Company has on-going examinations in various stages of completion in the State of Minnesota, City of New York, Canada, Hong Kong, India and South Africa. Examination outcomes and the timing of settlements are subject to significant uncertainty. Such settlements may involve some or all of the following: the payment of additional taxes, the adjustment of deferred taxes and/or the recognition of unrecognized tax benefits. The Company has recognized a tax benefit only for those positions that meet the more-likely-than-not recognition threshold. It is reasonably possible that the total unrecognized tax benefit as of September 30, 2016 could decrease by an estimated $19.2 million within the next twelve months as a result of the expiration of statutes of limitations in the U.S. federal and certain U.S. state and local and non-U.S. tax jurisdictions, and potential settlements with U.S. states and non-U.S. taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings On July 28, 2016, a putative class action lawsuit captioned Cryer v. Franklin Resources, Inc., et al. was filed in the United States District Court for the Northern District of California against Franklin, the Franklin Templeton 401(k) Retirement Plan (“Plan”) Investment Committee, and unnamed Investment Committee members. The plaintiff attempts to assert a claim for breach of fiduciary duty under the Employee Retirement Income Security Act, alleging that the defendants selected mutual funds sponsored and managed by the Company (the “Funds”) as investment options for the Plan when allegedly lower-cost and better performing non-proprietary investment vehicles were available. The plaintiff also claims that the total Plan costs, inclusive of investment management and administrative fees, are excessive. The plaintiff alleges that Plan losses exceed $88.0 million and seeks, among other things, damages, disgorgement, rescission of the Plan’s investments in the Funds, attorneys’ fees and costs, and pre- and post-judgment interest. Franklin filed a motion to dismiss the complaint and a motion for summary adjudication on October 24, 2016. Management strongly believes that the claims made in the lawsuit are without merit and intends to defend against them vigorously. Franklin cannot predict with certainty, however, the eventual outcome of the lawsuit or whether it will have a material negative impact on the Company. The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company ’ s business, financial position, results of operations or liquidity. In management ’ s opinion, an adequate accrual has been made as of September 30, 2016 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount. Other Commitments and Contingencies The Company leases office space and equipment under operating leases expiring at various dates through fiscal year 2032 . Lease expense was $69.3 million , $58.0 million and $58.2 million in fiscal years 2016 , 2015 and 2014 . Sublease income totaled $1.6 million in fiscal year 2016 and $1.7 million in fiscal years 2015 and 2014 . Future minimum lease payments under long-term non-cancelable operating leases were as follows as of September 30, 2016 : (in millions) for the fiscal years ending September 30, Amount 2017 $ 44.7 2018 43.1 2019 39.0 2020 31.6 2021 28.0 Thereafter 190.2 Total Minimum Lease Payments $ 376.6 Future minimum rentals to be received under non-cancelable subleases totaled $0.8 million at September 30, 2016 . While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching SIPs. At September 30, 2016 , the Company had $35.2 million of committed capital contributions which relate to discretionary commitments to invest in SIPs and other investment products. These unfunded commitments are not recorded in the Company ’ s consolidated balance sheet. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation plans consist of the Amended and Restated Annual Incentive Compensation Plan (the “AIP”), 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”). The Compensation Committee of the Board of Directors determines the terms and conditions of awards under the AIP, the USIP and the ESIP. Stock-based compensation expenses were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Stock and stock unit awards $ 125.3 $ 133.6 $ 121.1 Employee stock investment plan 6.2 6.4 6.6 Total $ 131.5 $ 140.0 $ 127.7 Stock and Stock Unit Awards Under the terms of the AIP, eligible employees may receive cash, equity awards and/or mutual fund unit awards generally based on the performance of the Company, its funds and the individual employee. The USIP provides for the issuance of the Company’s common stock for various stock-related awards to officers, directors and employees. There are 120.0 million shares authorized under the USIP, of which 24.3 million shares were available for grant at September 30, 2016 . Stock awards generally entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards generally entitle holders to receive the underlying shares of common stock once the awards vest. Awards generally vest based on the passage of time or the achievement of predetermined Company financial performance goals. In the event a performance measure is not achieved at or above a specified threshold level, the portion of the award tied to such performance measure is forfeited. Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Shares Performance-Based Shares Total Shares Weighted-Average Grant-Date Fair Value for the fiscal year ended September 30, 2016 Nonvested balance at September 30, 2015 2,085 1,173 3,258 $ 53.97 Granted 2,703 679 3,382 40.88 Vested (2,087 ) (402 ) (2,489 ) 49.51 Forfeited/canceled (332 ) (162 ) (494 ) 48.19 Nonvested Balance at September 30, 2016 2,369 1,288 3,657 $ 45.67 Total unrecognized compensation expense related to nonvested stock and stock unit awards, net of estimated forfeitures, was $122.5 million at September 30, 2016 . This expense is expected to be recognized over a remaining weighted-average vesting period of 1.6 years . The weighted-average grant-date fair values of stock awards and stock unit awards granted during fiscal years 2016 , 2015 and 2014 were $40.88 , $55.65 and $53.89 per share. The total fair value of stock and stock unit awards vested during the same periods was $92.8 million , $115.2 million and $153.0 million . The Company generally does not repurchase shares upon vesting of stock and stock unit awards. However, in order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, shares are repurchased using a net stock issuance method. Stock Options There were no stock options outstanding at September 30, 2016 or 2015 , and no stock option activity during fiscal years 2016 or 2015 . The total intrinsic value of stock options exercised during fiscal year 2014 was $17.9 million . The cash received from the exercises was $7.2 million and the income tax benefits were $5.9 million . Employee Stock Investment Plan The ESIP allows eligible participants to buy shares of the Company’s common stock at a discount of its market value on defined dates. A total of 0.8 million shares were issued under the ESIP during fiscal year 2016 , and 4.4 million shares were reserved for future issuance at September 30, 2016 . |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans The Company sponsors a 401(k) plan that covers substantially all U.S. employees who meet certain employment requirements. Participants may contribute up to 50% of pretax annual compensation and up to 100% of the cash portion of the participant ’ s year-end bonus, as defined by the plan and subject to Internal Revenue Code limitations, each year to the plan. In addition, certain of the Company ’ s non-U.S. subsidiaries sponsor defined contribution plans primarily for the purpose of providing deferred compensation incentives for its employees and to comply with local regulatory requirements. The total expenses recognized for defined contribution plans were $46.8 million , $46.4 million and $47.0 million for fiscal years 2016 , 2015 and 2014 . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company has one operating segment, investment management and related services. Geographic information was as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Operating Revenues United States $ 4,063.6 $ 4,634.2 $ 5,014.4 Luxembourg 1,707.9 2,278.6 2,034.0 Canada 273.8 339.0 357.6 Asia-Pacific 267.9 311.8 420.2 The Bahamas 204.6 250.2 492.7 Europe, the Middle East and Africa, excluding Luxembourg 94.0 126.8 159.8 Latin America 6.2 8.1 12.7 Total $ 6,618.0 $ 7,948.7 $ 8,491.4 (in millions) as of September 30, 2016 2015 2014 Property and Equipment, Net United States $ 428.0 $ 406.9 $ 417.0 Asia-Pacific 62.9 68.9 78.0 Europe, the Middle East and Africa 14.9 14.8 13.8 The Bahamas 14.3 14.6 15.1 Canada 3.1 4.5 5.9 Latin America — 0.4 0.9 Total $ 523.2 $ 510.1 $ 530.7 Operating revenues are generally allocated to geographic areas based on the location of the office providing services. |
Other Income (Expenses)
Other Income (Expenses) | 12 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses) | Other Income (Expenses) Other income (expenses) consisted of the following: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Investment and Other Income, Net Dividend income $ 20.6 $ 10.3 $ 10.1 Interest income 36.5 10.8 9.1 Gains (losses) on trading investment securities, net 50.1 (22.3 ) 10.4 Realized gains on sale of investment securities, available-for-sale 32.1 28.1 57.8 Realized losses on sale of investment securities, available-for-sale (3.2 ) (4.0 ) (1.0 ) Income (losses) from investments in equity method investees 56.7 (63.2 ) 68.1 Other-than-temporary impairment of investments (11.1 ) (10.0 ) (0.6 ) Gains (losses) on investments of consolidated SIPs, net (13.5 ) 18.0 33.9 Gains from consolidated VIEs, net 6.2 8.3 7.1 Foreign currency exchange gains (losses), net (2.9 ) 57.0 32.1 Other, net 12.5 7.4 8.8 Total 184.0 40.4 235.8 Interest Expense (49.9 ) (39.6 ) (47.4 ) Other Income, Net $ 134.1 $ 0.8 $ 188.4 Substantially all of the Company’s dividend income and realized gains and losses on sale of available-for-sale securities were generated by investments in its nonconsolidated SIPs. Interest income was primarily generated by trading investment securities and cash equivalents. Proceeds from the sale of available-for-sale securities were $269.4 million , $221.3 million and $380.4 million for fiscal years 2016 , 2015 and 2014 . Net gains (losses) recognized on the Company ’ s trading investment securities that were held at September 30, 2016 , 2015 and 2014 were $27.9 million , $(20.3) million and $5.2 million . Net gains (losses) recognized on trading investment securities of consolidated SIPs that were held at September 30, 2016 , 2015 and 2014 were $9.4 million , $(17.7) million and $3.7 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows: (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2016 Balance at October 1, 2015 $ 19.3 $ (327.8 ) $ (5.7 ) $ (314.2 ) Other comprehensive income (loss) before reclassifications, net of tax 2.7 (18.3 ) (2.4 ) (18.0 ) Reclassifications to net investment and other income, net of tax (15.2 ) — — (15.2 ) Total other comprehensive loss (12.5 ) (18.3 ) (2.4 ) (33.2 ) Balance at September 30, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2015 Balance at October 1, 2014 $ 31.0 $ (143.6 ) $ (5.1 ) $ (117.7 ) Other comprehensive income (loss) before reclassifications, net of tax 1.4 (184.2 ) (0.6 ) (183.4 ) Reclassifications to net investment and other income, net of tax (13.1 ) — — (13.1 ) Total other comprehensive loss (11.7 ) (184.2 ) (0.6 ) (196.5 ) Balance at September 30, 2015 $ 19.3 $ (327.8 ) $ (5.7 ) $ (314.2 ) |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Business | Business. Franklin Resources, Inc. (“Franklin”) is a holding company that, together with its various subsidiaries (collectively, the “Company”) is referred to as Franklin Templeton Investments. The Company provides investment management and related services to investors globally through products that include investment funds and institutional, high net-worth and separately-managed accounts (collectively, the “sponsored investment products” or “SIPs”). In addition to investment management, the Company ’ s services include fund administration, sales, distribution, marketing, shareholder servicing, and trust, custody and other fiduciary services. |
Basis of Presentation | Basis of Presentation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Management believes that the accounting estimates are appropriate and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. Certain comparative amounts for prior fiscal years have been reclassified to conform to the financial statement presentation as of and for the fiscal year ended September 30, 2016 (“fiscal year 2016 ”). |
Consolidation | Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and SIPs in which it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in an entity or when it is the primary beneficiary of a variable interest entity (“VIE”). The Company also consolidates non-VIE limited partnerships and similar structures that it controls. All material intercompany accounts and transactions have been eliminated. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or the equity investment holders do not have defined rights and obligations normally associated with an equity investment. The Company ’ s VIEs are all investment entities, and its variable interests consist of its equity ownership interest in and/or investment management fees earned from these entities. The Company uses two models for determining whether it is the primary beneficiary of VIEs. For all VIEs with the exception of collateralized loan obligations (“CLOs”), the Company is the primary beneficiary if it has the majority of the risks or rewards of ownership, which it determines using expected cash flow scenarios. For CLOs, the Company is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIE ’ s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Under both models, the key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”), investment management fee rates, the life of the investment product, prepayment rates, and the discount rate. The Company is presumed to control non-VIE limited partnerships and similar structures for which it is the general partner or managing member unless the limited partners or other investors have the substantive ability to remove the Company as general partner or managing member or otherwise participate in the decision-making of the entity. The Company ’ s risk of loss in these entities is limited to its investments in the entities as the general partner and managing member entities are structured as limited liability companies. |
Related Parties | Related Parties include the investment funds sponsored by the Company as a result of the Company ’ s advisory relationship and equity method investees. The Company ’ s operating revenues and receivables are primarily from related parties. |
Earnings per Share | Earnings per Share . Basic and diluted earnings per share are computed using the two-class method, which considers participating securities as a separate class of shares. The Company ’ s participating securities consist of its nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Basic earnings per share is computed by dividing net income available to the Company ’ s common shareholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. |
Fair Value Measurements | Fair Value Measurements. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The Company ’ s assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Transfers between levels are recognized at the end of each quarter. 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. The fair values for Level 3 assets and liabilities are determined using various methodologies in accordance with the Company ’ s global valuation and pricing policy which defines valuation and pricing conventions for each security type. When available, fair value is measured based on the reported net asset value (“NAV”) of underlying investments or independent third-party broker or dealer price quotes. These inputs are evaluated for reasonableness through various procedures which include due diligence reviews of the third parties, price comparisons across pricing vendors, stale price reviews and subsequent sales testing. If these inputs are not available, the Company primarily employs a market-based method, using purchase multiples observed for comparable third-party transactions, valuations of comparable entities, projected operating results of the investee entity or subsequent financing transactions entered into by the investee entity. If the inputs for a market-based method are not available, the Company utilizes an income-based method, which considers the net present value of anticipated future cash flows of the investment. A discount may be applied due to the nature or duration of any restrictions on the disposition of the investment. The Company reviews and approves the market-based and income-based methods on a periodic basis for changes that would impact the unobservable inputs incorporated into the valuation process. The fair value measurements from these methods are further validated through price variance analysis, subsequent sales testing and market comparable sales. The Company records a substantial amount of its investments at fair value or amounts that approximate fair value on a recurring basis. The financial assets and financial liabilities of consolidated CLOs are measured using the more observable fair value of either the financial assets or financial liabilities. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents primarily consist of debt instruments with original maturities of three months or less at the purchase date, nonconsolidated SIP money market funds, time deposits with maturities of three months or less, and deposits with financial institutions. Cash and cash equivalents are carried at cost, except for debt instruments which are carried at amortized cost. Due to the short-term nature and liquidity of these financial instruments, the carrying values of these assets approximate fair value and, for disclosure purposes, they are classified as Level 1. The Company maintains cash and cash equivalents with financial institutions in various countries, limits the amount of credit exposure with any given financial institution and conducts ongoing evaluations of the creditworthiness of the financial institutions with which it does business. |
Receivables | Receivables consist primarily of fees receivable from SIPs and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, the carrying values of these assets approximate fair value. |
Investments | Investments consist of investment securities, trading and available-for-sale, investments in equity method investees and other investments. Investment Securities, Trading consist primarily of nonconsolidated SIPs and to a lesser extent, debt and other equity securities, and are carried at fair value. Changes in the fair value of trading securities are recognized as gains and losses in earnings. The fair value of the SIPs is determined based on their published NAV and they are classified as Level 1. The fair values of certain debt and the other equity securities are determined using quoted market prices, if available, or independent third-party broker or dealer price quotes, which are evaluated for reasonableness, and they are classified as Level 2. The fair value of other debt securities is determined using discounted cash flow techniques and they are classified as Level 3. Investment Securities, Available-for-Sale consist primarily of nonconsolidated SIPs and to a lesser extent, debt and other equity securities, and are carried at fair value. Realized gains and losses are included in investment income using the average cost method. Unrealized gains and losses are recorded net of tax as part of accumulated other comprehensive income (loss) until realized. The fair value of the SIPs is determined based on their published NAV and they are classified as Level 1. The fair value of the debt securities is primarily determined using independent third-party broker or dealer price quotes and they are classified as Level 2. The fair value of other equity securities is determined using quoted market prices and they are classified as Level 1. Investments in Equity Method Investees consist of equity investments in entities, including SIPs, over which the Company is able to exercise significant influence, but not control. Significant influence is generally considered to exist when the Company ’ s ownership interest in the voting stock of the investee is between 20% and 50%, although other factors, such as representation on the investee ’ s board of directors and the impact of commercial arrangements, also are considered in determining whether the equity method of accounting is appropriate. Investments in limited partnerships and limited liability companies for which the Company is not deemed to have control are accounted for using the equity method when the Company ’ s investment is more than minor or when the Company is the general partner. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company ’ s proportionate share of the entities ’ net income, which is recognized in earnings. Other Investments consist of time deposits with maturities greater than three months from the date of purchase, equity investments in entities over which the Company is unable to exercise significant influence and are not marketable, and life settlement contracts. The time deposits are carried at cost. Due to the short-term nature and liquidity of these financial instruments, the carrying values of the time deposits approximate fair value, and they are classified as Level 2. The equity investments are accounted for under the cost method. For disclosure purposes, the fair value of these investments is generally estimated based on their NAV and they are classified as Level 3. Life settlement contracts are carried at fair value, which is determined based on discounted cash flows using significant unobservable inputs, and are classified as Level 3. Impairment of Investments. Investments other than trading securities are evaluated for other-than-temporary impairment on a quarterly basis when the cost of an investment exceeds its fair value. For equity securities, the Company considers many factors, including the severity and duration of the decline in the fair value below cost, the Company ’ s intent and ability to hold the security for a period of time sufficient for an anticipated recovery in fair value, and the financial condition and specific events related to the issuer. When an impairment of an equity security is determined to be other-than-temporary, the impairment is recognized in earnings. For debt securities, if the Company intends to sell or it is more likely than not that it will be required to sell a security before recovery of its amortized cost, the entire impairment is recognized in earnings. If the Company does not intend to sell or it is not more likely than not that it will be required to sell the security before anticipated recovery of its amortized cost, the impairment is separated into the amount of the total impairment related to the credit loss and the amount of the total impairment related to all other factors. The credit loss component is the difference between the security ' s amortized cost and the present value of the expected cash flows, and is recognized in earnings. Losses related to all other factors are recognized in accumulated other comprehensive income (loss). |
Cash and Cash Equivalents of Consolidated SIPs | Cash and Cash Equivalents of Consolidated SIPs consist of deposits with financial institutions and highly liquid investments, including money market funds, which are readily convertible into cash, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value and, for disclosure purposes, they are classified as Level 1. |
Investments of Consolidated SIPs | Investments of Consolidated SIPs consist of trading securities and other investments that are not generally traded in active markets, and are carried at fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair value of the trading securities is determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. These securities are classified as Level 1 or Level 2. The quoted market prices may be adjusted if events occur, such as significant price changes in U.S.-traded market proxies after the close of corresponding foreign markets, trade halts or suspensions, or unscheduled market closures. The market proxies consist of correlated country-specific exchange-traded securities, such as futures, American Depositary Receipts indices or exchange-traded funds. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market. The investments that are not generally traded in active markets consist of debt and equity securities of entities in emerging markets and fund products. The fair values of the debt and equity securities are determined using significant unobservable inputs in either a market-based or income-based approach and they are classified as Level 3. The fair value of the fund products is determined using NAV as a practical expedient. These investments are classified as Level 2 if they are redeemable without restriction on at least a quarterly basis, or Level 3 if they have a redemption frequency greater than quarterly, are subject to redemption restrictions, or are nonredeemable. |
Cash and Cash Equivalents of Consolidated VIEs | Cash and Cash Equivalents of Consolidated VIEs consist of investments in a money market fund and are carried at fair value. The fair value of the fund is based on its published NAV and it is classified as Level 1. |
Investments of Consolidated VIEs | Investments of Consolidated VIEs consist substantially of corporate debt securities and are carried at fair value. The fair value is primarily obtained from independent third-party broker or dealer price quotes and they are classified as Level 2. |
Property and Equipment, net | Property and Equipment, net are recorded at cost and are depreciated using the straight-line method over their estimated useful lives which range from three to 35 years. Expenditures for repairs and maintenance are charged to expense when incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the lease term, whichever is shorter. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the estimated useful lives of the software, which range from three to five years, beginning when the software project is complete and the application is put into production. Property and equipment is tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Carrying values are not recoverable when the undiscounted cash flows estimated to be generated by the assets are less than their carrying values. When an asset is determined to not be recoverable, the impairment is measured based on the excess, if any, of the carrying value of the asset over its respective fair value. Fair value is determined by discounted future cash flows models, appraisals or other applicable methods. |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net . Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. Other intangible assets consist of investment management contracts resulting from business acquisitions. These intangible assets are amortized over their estimated useful lives, which range from six to 15 years, using the straight-line method, unless the asset is determined to have an indefinite useful life. Indefinite-lived intangible assets represent contracts to manage investment assets for which there is no foreseeable limit on the contract period. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 1 and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. The Company has one reporting unit, investment management and related services, consistent with its single operating segment, to which all goodwill has been assigned. Goodwill and indefinite-lived intangible assets may first be assessed for qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on the key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed. The quantitative goodwill impairment test involves a two-step process. The first step compares the fair value of the reporting unit to its carrying value. If the carrying value is less than the fair value, no impairment exists and the second step is not performed. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step is performed to compute the amount of any impairment. In the second step, impairment is computed by comparing the implied fair value of the reporting unit goodwill with the carrying value of the goodwill. The quantitative indefinite-lived intangible assets impairment test compares the fair value of the asset to its carrying value. If the carrying value is higher than the fair value, impairment is recognized in the amount of the difference in values. In estimating the fair value of the reporting unit and indefinite-lived intangible assets, the Company uses valuation techniques based on an income approach under which future cash flows are discounted. The future cash flow estimates include assumptions about revenue and AUM growth rates, the pre-tax profit margin, the average effective fee rate, the effective tax rate, and the discount rate, which is based on the Company ’ s weighted average cost of capital. Definite-lived intangible assets are tested for impairment quarterly. Impairment is indicated when the carrying value of the asset is not recoverable and exceeds its fair value. In evaluating the recoverability of definite-lived intangible assets, the Company estimates the undiscounted future cash flows to be derived from these assets. The future undiscounted cash flow projections include assumptions about revenue and AUM growth rates, effective fee rates, investor redemptions, the pre-tax profit margin, and expected useful lives. If the carrying value of an asset is not recoverable through the related undiscounted cash flows, the impairment is measured based on the amount by which the carrying value of the asset exceeds its fair value and recognized in general, administrative and other expense. The fair value of the asset is determined by discounted cash flows or other methods as appropriate for the asset type. |
Deferred Sales Commissions | Deferred Sales Commissions consist of up-front commissions paid to financial advisers and broker-dealers on shares sold without a front-end sales charge to investors, and are amortized over the periods in which they are generally recovered from related revenues, which range from one to seven years. Deferred sales commissions are included in other assets in the consolidated balance sheet. |
Contingent Consideration Liability | Contingent Consideration Liability consists of the expected future payments related to the Company’s commitment to acquire the remaining interests in K2 Advisors Holdings, LLC (“K2”) and is included in other liabilities in the consolidated balance sheet. The liability is carried at fair value, determined using an income-based method which considers the net present value of anticipated future cash flows based on estimated future revenue and profits and timing of payments, and is classified as Level 3. |
Debt | Debt consists of senior notes and a loan, and are carried at amortized cost. For disclosure purposes, the fair values are estimated using quoted market prices, independent third-party broker or dealer price quotes, or prices of publicly traded debt with similar maturities, credit risk and interest rates. The notes and loan are classified as Level 2. |
Debt of Consolidated SIPs | Debt of Consolidated SIPs is carried at amortized cost. For disclosure purposes, the fair value is estimated using a discounted cash flow model that considers current interest rate levels, the quality of the underlying collateral and current economic conditions. The debt is classified as Level 3. |
Debt of Consolidated VIEs | Debt of Consolidated VIEs consists of debt of CLOs and is measured based on the fair value of the assets of the consolidated CLOs less the fair value of the Company’s own economic interests in the CLOs. |
Noncontrolling Interests | Noncontrolling Interests relate almost entirely to consolidated SIPs. Noncontrolling interests that are currently redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity. Nonredeemable noncontrolling interests are classified as a component of equity. Net income (loss) attributable to third-party investors is reflected as net income (loss) attributable to nonredeemable and redeemable noncontrolling interests in the consolidated statements of income. Sales and redemptions of shares of consolidated SIPs by third-party investors are a component of the change in noncontrolling interests included in financing activities in the consolidated statements of cash flows. |
Revenues | Revenues . Fees from providing investment management and fund administration services (“investment management fees”), distribution fees and shareholder servicing fees are recognized as earned, over the period in which services are rendered, except for performance-based investment management fees, which are recognized when earned. Sales commissions related to the sale of shares of SIPs are recognized on trade date. Investment management fees, other than performance-based fees, and distribution fees are determined based on a percentage of AUM, primarily on a monthly basis using average daily AUM. Performance-based investment management fees are based on performance targets established in the related investment management contracts. Shareholder servicing fees are generally calculated based on the number and type of accounts serviced. AUM is generally based on the fair value of the underlying securities held by SIPs and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market. The fair values of the underlying securities for which market prices are not readily available are internally valued using various methodologies which incorporate significant unobservable inputs as appropriate for each security type and represent an insignificant percentage of total AUM. Pricing of the securities held by SIPs is governed by the Company ’ s global valuation and pricing policy, which defines valuation and pricing conventions for each security type, including practices for responding to unexpected or unusual market events. Sales commissions and distribution fees are recorded gross of sales and distribution expenses paid to financial advisers and other intermediaries as the Company acts as the principal in its role as primary obligor to the sales and distribution agreements. |
Stock-Based Compensation | Stock-Based Compensation. The fair value of share-based payment awards is estimated on the date of grant based on the market price of the underlying shares of the Company ’ s common stock and is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally three years. Expense relating to awards subject to performance conditions is recognized if it is probable that the performance goals will be achieved. The probability of achievement is assessed on a quarterly basis. The total number of awards expected to vest is adjusted for estimated forfeitures. |
Postretirement Benefits | Postretirement Benefits . Defined contribution plan costs are expensed as incurred. |
Income Taxes | Income Taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. For each tax position taken or expected to be taken in a tax return, the Company determines whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company recognizes the accrual of interest on uncertain tax positions in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the United States and generates earnings from its non-U.S. subsidiaries. The Company indefinitely reinvests the undistributed earnings of its non-U.S. subsidiaries, except for income previously taxed in the U.S., subject to regulatory or legal repatriation restrictions or requirements, and the excess net earnings reduced by cash needs for operational and regulatory capital requirements, capital management plans and capital expenditure plans of its Canadian and U.K. subsidiaries. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings. |
Other Assets and Liabilities of Consolidated VIEs | Receivables of consolidated VIEs consist primarily of investment trades pending settlement. The fair value of the assets is obtained from independent third-party broker or dealer quotes. |
Other Liabilities of Consolidated SIPs | Other liabilities of consolidated SIPs consist of short positions in debt and equity securities. The fair value of the liabilities is determined based on the fair value of the underlying securities using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices securities are not available. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share were as follows: (in millions, except per share data) for the fiscal years ended September 30, 2016 2015 2014 Net income attributable to Franklin Resources, Inc. $ 1,726.7 $ 2,035.3 $ 2,384.3 Less: allocation of earnings to participating nonvested stock and stock unit awards 10.9 12.0 14.3 Net Income Available to Common Stockholders $ 1,715.8 $ 2,023.3 $ 2,370.0 Weighted-average shares outstanding – basic 583.8 614.8 624.8 Dilutive effect of nonparticipating nonvested stock unit awards and common stock options — 0.1 0.4 Weighted-Average Shares Outstanding – Diluted 583.8 614.9 625.2 Earnings per Share Basic $ 2.94 $ 3.29 $ 3.79 Diluted 2.94 3.29 3.79 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Summary of investments | Investments consisted of the following: (in millions) as of September 30, 2016 2015 Investment securities, trading SIPs $ 844.4 $ 1,166.0 Debt and other equity securities 277.5 85.2 Total investment securities, trading 1,121.9 1,251.2 Investment securities, available-for-sale SIPs 297.7 408.3 Debt and other equity securities 3.7 38.1 Total investment securities, available-for-sale 301.4 446.4 Investments in equity method investees 797.4 655.3 Other investments 195.9 106.3 Total $ 2,416.6 $ 2,459.2 |
Summary of the gross unrealized gains and losses relating to investment securities, available-for-sale | Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows: (in millions) Gross Unrealized as of September 30, 2016 Cost Basis Gains Losses Fair Value SIPs $ 289.6 $ 13.7 $ (5.6 ) $ 297.7 Debt and other equity securities 3.6 0.1 — 3.7 Total $ 293.2 $ 13.8 $ (5.6 ) $ 301.4 (in millions) Gross Unrealized as of September 30, 2015 Cost Basis Gains Losses Fair Value SIPs $ 382.6 $ 32.4 $ (6.7 ) $ 408.3 Debt and other equity securities 37.9 0.4 (0.2 ) 38.1 Total $ 420.5 $ 32.8 $ (6.9 ) $ 446.4 |
Summary of gross unrealized losses and fair values of investment securities in a continuous unrealized loss position | Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows: 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, 2016 SIPs $ 75.8 $ (4.3 ) $ 18.0 $ (1.3 ) $ 93.8 $ (5.6 ) 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, 2015 SIPs $ 99.8 $ (5.6 ) $ 21.0 $ (1.1 ) $ 120.8 $ (6.7 ) Debt and other equity securities 10.9 (0.2 ) — — 10.9 (0.2 ) Total $ 110.7 $ (5.8 ) $ 21.0 $ (1.1 ) $ 131.7 $ (6.9 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2016 Assets Investment securities, trading SIPs $ 844.4 $ — $ — $ 844.4 Debt and other equity securities 2.6 84.1 190.8 277.5 Investment securities, available-for-sale SIPs 297.7 — — 297.7 Debt and other equity securities 1.6 2.1 — 3.7 Life settlement contracts — — 14.3 14.3 Total Assets Measured at Fair Value $ 1,146.3 $ 86.2 $ 205.1 $ 1,437.6 Liabilities Contingent consideration liability $ — $ — $ 98.1 $ 98.1 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2015 Assets Investment securities, trading SIPs $ 1,166.0 $ — $ — $ 1,166.0 Debt and other equity securities 2.2 77.0 6.0 85.2 Investment securities, available-for-sale SIPs 408.3 — — 408.3 Debt and other equity securities 12.2 25.9 — 38.1 Life settlement contracts — — 14.7 14.7 Total Assets Measured at Fair Value $ 1,588.7 $ 102.9 $ 20.7 $ 1,712.3 Liabilities Contingent consideration liabilities $ — $ — $ 102.9 $ 102.9 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: 2016 2015 (in millions) Investments Contingent Consideration Liabilities Investments Contingent Consideration Liabilities for the fiscal years ended September 30, Balance at beginning of year $ 20.7 $ (102.9 ) $ 14.0 $ (98.5 ) Total realized and unrealized gains (losses) Included in investment and other income, net (2.4 ) — 1.6 — Included in general, administrative and other expense — 1.0 — (12.4 ) Other — — — (0.1 ) Purchases 190.4 — 6.6 — Sales (4.0 ) — — — Settlements (2.8 ) 3.8 (1.5 ) 7.9 Foreign exchange revaluation 3.2 — — 0.2 Balance at End of Year $ 205.1 $ (98.1 ) $ 20.7 $ (102.9 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of year $ (4.0 ) $ 1.0 $ 0.8 $ (12.5 ) |
Schedule of valuation techniques and significant unobservable inputs used in Level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows: (in millions) as of September 30, 2016 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading - debt and other equity securities $ 190.8 Discounted cash flow Discount rate 3.6%–6.9% (6.7%) Risk premium 2.0%–17.9% (16.5%) Liquidity discount 0.0%–10.0% (9.6%) Life settlement contracts 14.3 Discounted cash flow Life expectancy 20–132 months (65) Discount rate 3.3%–18.0% (11.5%) Contingent consideration liability 98.1 Discounted cash flow AUM growth rate 2.4%–11.5% (5.9%) EBITDA margin 14.3% Discount rate 13.2% (in millions) as of September 30, 2015 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading - debt and other equity securities $ 6.0 Discounted cash flow Discount rate 5.2%–6.1% (5.7%) Risk premium 2.7%–2.8% (2.8%) Life settlement contracts 14.7 Discounted cash flow Life expectancy 21–141 months (68) Discount rate 3.3%–19.0% (11.7%) Contingent consideration liabilities 102.9 Discounted cash flow AUM growth rate 0.5%–5.8% (4.4%) EBITDA margin 19.3%–22.9% (22.0%) Discount rate 14.0% |
Schedule of financial instruments not measured at fair value | Financial instruments that were not measured at fair value were as follows: (in millions) 2016 2015 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 8,247.1 $ 8,247.1 $ 8,184.9 $ 8,184.9 Other investments Time deposits 2 131.6 131.6 37.0 37.0 Cost method investments 3 50.0 61.3 54.6 60.1 Financial Liabilities Debt Senior notes 2 1,348.5 1,412.5 1,348.0 1,374.9 Loan 2 52.7 52.7 — — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Summary of property and equipment | Property and equipment, net consisted of the following: (in millions) Useful Lives In Years as of September 30, 2016 2015 Furniture, software and equipment $ 756.4 $ 733.6 3 – 10 Premises and leasehold improvements 563.5 557.0 5 – 35 Land 74.1 74.2 N/A Total cost 1,394.0 1,364.8 Less: accumulated depreciation and amortization (870.8 ) (854.7 ) Property and Equipment, Net $ 523.2 $ 510.1 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets, net | Goodwill and other intangible assets, net consisted of the following: (in millions) as of September 30, 2016 2015 Goodwill $ 1,661.2 $ 1,661.2 Indefinite-lived intangible assets 530.9 538.3 Definite-lived intangible assets, net 19.2 57.5 Goodwill and Other Intangible Assets, Net $ 2,211.3 $ 2,257.0 |
Schedule of definite-lived intangible assets | Definite-lived intangible assets were as follows: 2016 2015 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value as of September 30, Management contracts $ 60.1 $ (40.9 ) $ 19.2 $ 89.5 $ (36.2 ) $ 53.3 Customer base — — — 164.5 (160.3 ) 4.2 Total $ 60.1 $ (40.9 ) $ 19.2 $ 254.0 $ (196.5 ) $ 57.5 |
Schedule of estimated remaining amortization expense | Definite-lived intangible assets had a weighted-average remaining useful life of 7.6 years at September 30, 2016 , with estimated remaining amortization expense as follows: (in millions) for the fiscal years ending September 30, Amount 2017 $ 4.4 2018 4.4 2019 1.6 2020 1.4 2021 1.2 Thereafter 6.2 Total $ 19.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Debt consisted of the following: (in millions) 2016 Effective Interest Rate 2015 Effective Interest Rate as of September 30, Senior Notes $300 million 1.375% notes due September 2017 $ 299.7 1.66 % $ 299.4 1.66 % $350 million 4.625% notes due May 2020 349.9 4.74 % 349.8 4.74 % $300 million 2.800% notes due September 2022 299.5 2.93 % 299.5 2.93 % $400 million 2.850% notes due March 2025 399.4 2.97 % 399.3 2.97 % Total senior notes 1,348.5 1,348.0 Other Loan due March 2017 52.7 9.89 % — N/A Total $ 1,401.2 $ 1,348.0 |
Schedule of contractual maturities of debt | At September 30, 2016 , maturities for debt were as follows: (in millions) Carrying Amount for the fiscal years ending September 30, 2017 $ 352.4 2018 — 2019 — 2020 349.9 2021 — Thereafter 698.9 Total $ 1,401.2 |
VIEs and CSIPs (Tables)
VIEs and CSIPs (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Variable Interest Entities and Consolidated Sponsored Investment Products [Abstract] | |
Schedule of balances of CSIPs and CVIEs | The balances of consolidated SIPs and consolidated VIEs included in the Company’s consolidated balance sheets were as follows: 2016 2015 (in millions) Consolidated Consolidated as of September 30, SIPs VIEs Total SIPs VIEs Total Assets Cash and cash equivalents $ 89.8 $ 146.4 $ 236.2 $ 108.5 $ 74.7 $ 183.2 Receivables 24.3 23.6 47.9 10.0 11.5 21.5 Investments, at fair value 1,025.6 487.8 1,513.4 977.4 672.5 1,649.9 Other assets 1.4 — 1.4 0.7 — 0.7 Total Assets $ 1,141.1 $ 657.8 $ 1,798.9 $ 1,096.6 $ 758.7 $ 1,855.3 Liabilities Accounts payable and accrued expenses $ 19.5 $ 45.7 $ 65.2 $ 10.8 $ 25.3 $ 36.1 Debt 75.0 607.2 682.2 81.2 726.1 807.3 Other liabilities 8.5 — 8.5 6.3 — 6.3 Total liabilities 103.0 652.9 755.9 98.3 751.4 849.7 Redeemable Noncontrolling Interests 61.1 — 61.1 59.6 — 59.6 Stockholders ’ Equity Franklin Resources Inc.’s interests 409.2 4.9 414.1 308.8 7.3 316.1 Nonredeemable noncontrolling interests 567.8 — 567.8 629.9 — 629.9 Total stockholders’ equity 977.0 4.9 981.9 938.7 7.3 946.0 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 1,141.1 $ 657.8 $ 1,798.9 $ 1,096.6 $ 758.7 $ 1,855.3 |
Schedule of unpaid principal balance and fair value of investments and debt of CLOs | The unpaid principal balance and fair value of the investments of the CLOs were as follows: (in millions) as of September 30, 2016 2015 Unpaid principal balance $ 496.0 $ 694.5 Difference between unpaid principal balance and fair value (8.2 ) (22.0 ) Fair Value $ 487.8 $ 672.5 |
Schedule of investments of CSIPs and CVIEs | Investments of consolidated SIPs and consolidated VIEs consisted of the following: 2016 2015 (in millions) Consolidated Consolidated as of September 30, SIPs VIEs Total SIPs VIEs Total Investment securities, trading $ 287.8 $ — $ 287.8 $ 180.5 $ — $ 180.5 Other debt securities 131.0 487.3 618.3 129.2 672.5 801.7 Other equity securities 606.8 0.5 607.3 667.7 — 667.7 Total $ 1,025.6 $ 487.8 $ 1,513.4 $ 977.4 $ 672.5 $ 1,649.9 |
Schedule of debt of CSIPs and CVIEs | Debt of consolidated SIPs and consolidated VIEs consisted of the following: (in millions) Amount Effective Interest Rate as of September 30, 2016 Debt of consolidated SIPs due fiscal years 2017-2019 $ 75.0 4.79 % Debt of consolidated VIEs due fiscal years 2018-2024 607.2 2.24 % Total $ 682.2 (in millions) Amount Effective Interest Rate as of September 30, 2015 Debt of consolidated SIPs due fiscal years 2016-2019 $ 81.2 4.71 % Debt of consolidated VIEs due fiscal years 2018-2024 726.1 1.62 % Total $ 807.3 |
Schedule of contractual maturities for debt of CSIPs and CVIEs | At September 30, 2016 , contractual maturities for debt of consolidated SIPs and consolidated VIEs were as follows: (in millions) Carrying Amount for the fiscal years ending September 30, 2017 $ 40.4 2018 79.8 2019 280.1 2020 — 2021 — Thereafter 281.9 Total $ 682.2 |
Schedule of balances of assets and liabilities of CSIPs and CVIEs measured at fair value on a recurring basis | Assets and liabilities of consolidated SIPs and consolidated VIEs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2016 Assets Cash and cash equivalents of consolidated VIEs $ 146.4 $ — $ — $ 146.4 Receivables of consolidated VIEs — 23.6 — 23.6 Investments of consolidated SIPs Equity securities 155.4 1.3 605.5 762.2 Debt securities — 131.8 131.6 263.4 Investments of consolidated VIEs — 487.1 0.7 487.8 Total Assets Measured at Fair Value $ 301.8 $ 643.8 $ 737.8 $ 1,683.4 Liabilities Other liabilities of consolidated SIPs $ 0.1 $ 8.4 $ — $ 8.5 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2015 Assets Cash and cash equivalents of consolidated VIEs $ 74.7 $ — $ — $ 74.7 Receivables of consolidated VIEs — 11.5 — 11.5 Investments of consolidated SIPs Equity securities 88.9 8.5 656.4 753.8 Debt securities — 93.8 129.8 223.6 Investments of consolidated VIEs — 672.1 0.4 672.5 Total Assets Measured at Fair Value $ 163.6 $ 785.9 $ 786.6 $ 1,736.1 Liabilities Other liabilities of consolidated SIPs $ 3.3 $ 3.0 $ — $ 6.3 |
Schedule of investments in fund products for which fair value was estimated using NAV as a practical expedient | Investments in fund products for which fair value was estimated using NAV as a practical expedient were as follows: (in millions) Fair Value Level as of September 30, Redemption Frequency 2016 2015 Real estate and private equity funds Nonredeemable 3 $ 444.2 $ 463.6 Hedge funds Triennially 3 1.0 1.2 Hedge funds Monthly or quarterly 2 0.8 8.0 Total $ 446.0 $ 472.8 |
Schedule of changes in Level 3 assets and liabilities of CSIPs and CVIEs on a recurring basis | Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Investments of Consolidated SIPs Investments of Consolidated VIEs Total Level 3 Assets for the fiscal year ended September 30, 2016 Equity Debt Balance at October 1, 2015 $ 656.4 $ 129.8 $ 0.4 $ 786.6 Realized and unrealized losses included in investment and other income, net (7.3 ) (10.3 ) (0.2 ) (17.8 ) Purchases 60.6 26.3 0.5 87.4 Sales (103.5 ) (15.4 ) — (118.9 ) Foreign exchange revaluation (0.7 ) 1.2 — 0.5 Balance at September 30, 2016 $ 605.5 $ 131.6 $ 0.7 $ 737.8 Change in unrealized losses included in net income relating to assets and liabilities held at September 30, 2016 $ (13.3 ) $ (10.7 ) $ (0.2 ) $ (24.2 ) (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, 2015 Equity Debt Balance at October 1, 2014 $ 614.3 $ 206.3 $ 0.5 $ 821.1 $ (47.2 ) Adjustment for adoption of new accounting guidance — — — — 47.2 Realized and unrealized gains (losses) included in investment and other income, net 39.5 (5.6 ) (0.1 ) 33.8 — Purchases 142.8 25.8 — 168.6 — Sales (134.7 ) (88.9 ) — (223.6 ) — Settlements — (0.6 ) — (0.6 ) — Foreign exchange revaluation (5.5 ) (7.2 ) — (12.7 ) — Balance at September 30, 2015 $ 656.4 $ 129.8 $ 0.4 $ 786.6 $ — Change in unrealized gains (losses) included in net income relating to assets and liabilities held at September 30, 2015 $ 28.0 $ (10.4 ) $ (0.1 ) $ 17.5 $ — |
Schedule of valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows: (in millions) as of September 30, 2016 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 113.1 Market comparable companies EBITDA multiple 5.0–14.2 (10.3) Discount for lack of marketability 25.0%–50.0% (36.6%) 24.3 Discounted cash flow Discount rate 5.0%–19.0% (13.7%) 22.9 Market pricing Price to book value ratio 1.8–2.3 (2.0) Debt securities 119.0 Discounted cash flow Discount rate 6.0%–15.0% (10.4%) Risk premium 0.0%–28.0% (9.7%) EBITDA multiple 5.5 12.6 Market pricing Private sale pricing $57 per $100 of par (in millions) as of September 30, 2015 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 128.8 Market comparable companies EBITDA multiple 4.2–10.7 (8.8) Discount for lack of marketability 25.0%–50.0% (34.9%) 47.7 Market pricing Price to book value ratio 1.8–2.8 (2.3) 15.1 Discounted cash flow Discount rate 6.3%–19.0% (12.8%) Debt securities 129.8 Discounted cash flow Discount rate 3.5%–17.0% (9.4%) Risk premium 0.0%–18.0% (4.6%) |
Schedule of financial instruments of CSIPs and CVIEs not measured at fair value | Financial instruments of consolidated SIPs and consolidated VIEs that were not measured at fair value were as follows: (in millions) September 30, 2016 September 30, 2015 Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents of consolidated SIPs 1 $ 89.8 $ 89.8 $ 108.5 $ 108.5 Financial Liabilities Debt of consolidated SIPs 3 75.0 74.6 81.2 77.9 Debt of consolidated VIEs 1 2 or 3 607.2 594.5 726.1 719.3 _________________ 1 Substantially all is Level 2. |
Schedule of changes in redeemable noncontrolling interests of CSIPs | Changes in redeemable noncontrolling interests of consolidated SIPs were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Balance at beginning of year $ 59.6 $ 234.8 $ 121.8 Net income (loss) 1.6 (6.1 ) 20.6 Net subscriptions and other 79.9 149.4 436.0 Net deconsolidations (80.0 ) (318.5 ) (343.6 ) Balance at End of Year $ 61.1 $ 59.6 $ 234.8 |
Schedule of maximum exposure loss from nonconsolidated VIEs | The carrying values of the investment management fees receivable from and the equity ownership interests in these VIEs included in the Company’s consolidated balance sheets are set forth below. These amounts represent the Company’s maximum exposure to loss from these investment products. (in millions) as of September 30, 2016 2015 Receivables $ 21.4 $ 35.5 Investments 77.3 236.6 Total $ 98.7 $ 272.1 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes on income | Taxes on income were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Current expense Federal $ 582.8 $ 733.9 $ 803.6 State 47.5 83.1 82.4 Non-U.S. 102.8 121.1 114.1 Deferred expense (benefit) 9.0 (14.4 ) (2.2 ) Total $ 742.1 $ 923.7 $ 997.9 |
Schedule of income before taxes | Income before taxes consisted of the following: (in millions) for the fiscal years ended September 30, 2016 2015 2014 U.S. $ 1,641.7 $ 2,026.4 $ 2,160.8 Non-U.S. 858.1 1,002.0 1,248.8 Total $ 2,499.8 $ 3,028.4 $ 3,409.6 |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and deferred tax liabilities were as follows: (in millions) as of September 30, 2016 2015 Deferred Tax Assets Deferred compensation and employee benefits $ 52.9 $ 60.8 Stock-based compensation 36.6 38.7 Net operating loss carry-forwards 32.5 40.3 Tax benefit for uncertain tax positions 19.8 29.6 Other 12.5 11.6 Total deferred tax assets 154.3 181.0 Valuation allowance for net operating loss carry-forwards (24.6 ) (34.0 ) Deferred tax assets, net of valuation allowance 129.7 147.0 Deferred Tax Liabilities Goodwill and other purchased intangibles 202.8 217.3 Deferred commissions 18.3 21.2 Depreciation on fixed assets 18.0 13.4 Other 34.4 35.8 Total deferred tax liabilities 273.5 287.7 Net Deferred Tax Liability $ 143.8 $ 140.7 |
Components of net deferred tax assets or liabilities as classified in the consolidated balance sheets | The components of the net deferred tax liability were classified in the consolidated balance sheets as follows: (in millions) as of September 30, 2016 2015 Other assets $ 17.7 $ 100.7 Deferred tax liabilities 161.5 241.4 Net Deferred Tax Liability $ 143.8 $ 140.7 |
Reconciliation of the amount of tax expense at the federal statutory rate and taxes on income | A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Federal taxes at statutory rate $ 874.9 35.0 % $ 1,059.9 35.0 % $ 1,193.4 35.0 % State taxes, net of federal tax effect 42.7 1.7 % 51.6 1.7 % 52.4 1.5 % Effect of non-U.S. operations (153.0 ) (6.1 %) (148.5 ) (4.9 %) (246.3 ) (7.2 %) Effect of net income attributable to noncontrolling interests (10.9 ) (0.4 %) (24.3 ) (0.8 %) (9.6 ) (0.3 %) Other (11.6 ) (0.5 %) (15.0 ) (0.5 %) 8.0 0.3 % Tax Provision $ 742.1 29.7 % $ 923.7 30.5 % $ 997.9 29.3 % |
Reconciliation of gross unrecognized tax benefits | A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Balance at beginning of year $ 105.2 $ 118.2 $ 109.5 Additions for tax positions of prior years 0.6 12.6 3.0 Reductions for tax positions of prior years (9.0 ) (3.4 ) (2.4 ) Tax positions related to the current year 12.9 16.2 14.1 Settlements with taxing authorities (5.4 ) (0.1 ) (0.3 ) Expirations of statute of limitations (22.2 ) (38.3 ) (5.7 ) Balance at End of Year $ 82.1 $ 105.2 $ 118.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments under long-term non-cancelable operating leases | Future minimum lease payments under long-term non-cancelable operating leases were as follows as of September 30, 2016 : (in millions) for the fiscal years ending September 30, Amount 2017 $ 44.7 2018 43.1 2019 39.0 2020 31.6 2021 28.0 Thereafter 190.2 Total Minimum Lease Payments $ 376.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Summary of stock-based compensation expenses | Stock-based compensation expenses were as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Stock and stock unit awards $ 125.3 $ 133.6 $ 121.1 Employee stock investment plan 6.2 6.4 6.6 Total $ 131.5 $ 140.0 $ 127.7 |
Summary of nonvested stock and stock unit award activity | Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Shares Performance-Based Shares Total Shares Weighted-Average Grant-Date Fair Value for the fiscal year ended September 30, 2016 Nonvested balance at September 30, 2015 2,085 1,173 3,258 $ 53.97 Granted 2,703 679 3,382 40.88 Vested (2,087 ) (402 ) (2,489 ) 49.51 Forfeited/canceled (332 ) (162 ) (494 ) 48.19 Nonvested Balance at September 30, 2016 2,369 1,288 3,657 $ 45.67 |
Segment and Geographic Inform35
Segment and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of operating revenues, property and equipment by geographic areas | Geographic information was as follows: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Operating Revenues United States $ 4,063.6 $ 4,634.2 $ 5,014.4 Luxembourg 1,707.9 2,278.6 2,034.0 Canada 273.8 339.0 357.6 Asia-Pacific 267.9 311.8 420.2 The Bahamas 204.6 250.2 492.7 Europe, the Middle East and Africa, excluding Luxembourg 94.0 126.8 159.8 Latin America 6.2 8.1 12.7 Total $ 6,618.0 $ 7,948.7 $ 8,491.4 (in millions) as of September 30, 2016 2015 2014 Property and Equipment, Net United States $ 428.0 $ 406.9 $ 417.0 Asia-Pacific 62.9 68.9 78.0 Europe, the Middle East and Africa 14.9 14.8 13.8 The Bahamas 14.3 14.6 15.1 Canada 3.1 4.5 5.9 Latin America — 0.4 0.9 Total $ 523.2 $ 510.1 $ 530.7 |
Other Income (Expenses) (Tables
Other Income (Expenses) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expenses) | Other income (expenses) consisted of the following: (in millions) for the fiscal years ended September 30, 2016 2015 2014 Investment and Other Income, Net Dividend income $ 20.6 $ 10.3 $ 10.1 Interest income 36.5 10.8 9.1 Gains (losses) on trading investment securities, net 50.1 (22.3 ) 10.4 Realized gains on sale of investment securities, available-for-sale 32.1 28.1 57.8 Realized losses on sale of investment securities, available-for-sale (3.2 ) (4.0 ) (1.0 ) Income (losses) from investments in equity method investees 56.7 (63.2 ) 68.1 Other-than-temporary impairment of investments (11.1 ) (10.0 ) (0.6 ) Gains (losses) on investments of consolidated SIPs, net (13.5 ) 18.0 33.9 Gains from consolidated VIEs, net 6.2 8.3 7.1 Foreign currency exchange gains (losses), net (2.9 ) 57.0 32.1 Other, net 12.5 7.4 8.8 Total 184.0 40.4 235.8 Interest Expense (49.9 ) (39.6 ) (47.4 ) Other Income, Net $ 134.1 $ 0.8 $ 188.4 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in accumulated other comprehensive income (loss) by component | Changes in accumulated other comprehensive income (loss) by component were as follows: (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2016 Balance at October 1, 2015 $ 19.3 $ (327.8 ) $ (5.7 ) $ (314.2 ) Other comprehensive income (loss) before reclassifications, net of tax 2.7 (18.3 ) (2.4 ) (18.0 ) Reclassifications to net investment and other income, net of tax (15.2 ) — — (15.2 ) Total other comprehensive loss (12.5 ) (18.3 ) (2.4 ) (33.2 ) Balance at September 30, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2015 Balance at October 1, 2014 $ 31.0 $ (143.6 ) $ (5.1 ) $ (117.7 ) Other comprehensive income (loss) before reclassifications, net of tax 1.4 (184.2 ) (0.6 ) (183.4 ) Reclassifications to net investment and other income, net of tax (13.1 ) — — (13.1 ) Total other comprehensive loss (11.7 ) (184.2 ) (0.6 ) (196.5 ) Balance at September 30, 2015 $ 19.3 $ (327.8 ) $ (5.7 ) $ (314.2 ) |
Significant Accounting Polici38
Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
Number of reporting units | 1 |
Stock-based compensation awards vesting period | 3 years |
Deferred sales commission amortization period, minimum | 1 year |
Deferred sales commission amortization period, maximum | 7 years |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful lives | 6 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful lives | 15 years |
Property and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Property and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 35 years |
Software development costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Software development costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | |||
Shares of nonparticipating nonvested stock unit awards excluded from the calculation of diluted EPS | 1.3 | 0.9 | 0.1 |
Earnings per Share - Components
Earnings per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net income attributable to Franklin Resources, Inc. | $ 1,726.7 | $ 2,035.3 | $ 2,384.3 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic | 10.9 | 12 | 14.3 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted | 10.9 | 12 | 14.3 |
Net Income Available to Common Stockholders - basic | 1,715.8 | 2,023.3 | 2,370 |
Net Income Available to Common Stockholders - diluted | $ 1,715.8 | $ 2,023.3 | $ 2,370 |
Weighted-average shares outstanding – basic | 583.8 | 614.8 | 624.8 |
Dilutive effect of nonparticipating nonvested stock unit awards and common stock options | 0 | 0.1 | 0.4 |
Weighted-Average Shares Outstanding – Diluted | 583.8 | 614.9 | 625.2 |
Earnings per Share [Abstract] | |||
Basic | $ 2.94 | $ 3.29 | $ 3.79 |
Diluted | $ 2.94 | $ 3.29 | $ 3.79 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments [Abstract] | |||
Aggregate carrying values of investment securities pledged as collateral | $ 117.3 | $ 4.3 | |
Other-than-temporary impairment of investments | 11.1 | 10 | $ 0.6 |
SIPs [Member] | |||
Investment [Line Items] | |||
Other-than-temporary impairment of available-for-sale | $ 5.8 | $ 8.2 | $ 0.4 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Investment [Line Items] | ||
Investment securities, trading | $ 1,121.9 | $ 1,251.2 |
Investment securities, available-for-sale | 301.4 | 446.4 |
Investments in equity method investees | 797.4 | 655.3 |
Other investments | 195.9 | 106.3 |
Total Investments | 2,416.6 | 2,459.2 |
SIPs [Member] | ||
Investment [Line Items] | ||
Investment securities, trading | 844.4 | 1,166 |
Investment securities, available-for-sale | 297.7 | 408.3 |
Debt and Other Equity Securities [Member] | ||
Investment [Line Items] | ||
Investment securities, trading | 277.5 | 85.2 |
Investment securities, available-for-sale | $ 3.7 | $ 38.1 |
Investments - Summary of Gross
Investments - Summary of Gross Unrealized Gains and Losses Relating to Investment Securities available-for-Sale (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Investment [Line Items] | ||
Cost Basis | $ 293.2 | $ 420.5 |
Gross Unrealized Gains | 13.8 | 32.8 |
Gross Unrealized Losses | (5.6) | (6.9) |
Fair Value | 301.4 | 446.4 |
SIPs [Member] | ||
Investment [Line Items] | ||
Cost Basis | 289.6 | 382.6 |
Gross Unrealized Gains | 13.7 | 32.4 |
Gross Unrealized Losses | (5.6) | (6.7) |
Fair Value | 297.7 | 408.3 |
Debt and Other Equity Securities [Member] | ||
Investment [Line Items] | ||
Cost Basis | 3.6 | 37.9 |
Gross Unrealized Gains | 0.1 | 0.4 |
Gross Unrealized Losses | 0 | (0.2) |
Fair Value | $ 3.7 | $ 38.1 |
Investments - Summary of Gros44
Investments - Summary of Gross Unrealized Losses and Fair Values of Investment Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 110.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (5.8) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value | 21 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses | (1.1) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 131.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | (6.9) | |
SIPs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 75.8 | 99.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (4.3) | (5.6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value | 18 | 21 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses | (1.3) | (1.1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 93.8 | 120.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | $ (5.6) | (6.7) |
Debt and Other Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (0.2) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 10.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | $ (0.2) |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | ||
Transfers into Level 1 from Level 2 - assets | $ 0 | $ 0 |
Transfers into Level 2 from Level 1 - assets | 0 | 0 |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 |
Transfers into Level 3 - assets | 0 | 0 |
Transfers into Level 3 - liabilities | 0 | 0 |
Transfers out of Level 3 - assets | 0 | 0 |
Transfers out of Level 3 - liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | $ 1,121.9 | $ 1,251.2 |
Investment securities, available-for-sale | 301.4 | 446.4 |
Life settlement contracts | 14.3 | 14.7 |
Total Assets Measured at Fair Value | 1,437.6 | 1,712.3 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent consideration liability | 98.1 | 102.9 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 1,146.3 | 1,588.7 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 86.2 | 102.9 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total Assets Measured at Fair Value | 205.1 | 20.7 |
SIPs [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 844.4 | 1,166 |
Investment securities, available-for-sale | 297.7 | 408.3 |
SIPs [Member] | Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 844.4 | 1,166 |
Investment securities, available-for-sale | 297.7 | 408.3 |
SIPs [Member] | Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
SIPs [Member] | Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Debt and Other Equity Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 277.5 | 85.2 |
Investment securities, available-for-sale | 3.7 | 38.1 |
Debt and Other Equity Securities [Member] | Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 2.6 | 2.2 |
Investment securities, available-for-sale | 1.6 | 12.2 |
Debt and Other Equity Securities [Member] | Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, trading | 84.1 | 77 |
Investment securities, available-for-sale | 2.1 | 25.9 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Investment securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Sch47
Fair Value Measurements - Schedule of Changes in Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - assets | $ 20.7 | $ 14 |
Purchases - assets | 190.4 | 6.6 |
Sales - assets | (4) | 0 |
Settlements - assets | (2.8) | (1.5) |
Foreign exchange revaluation | (3.2) | 0 |
Balance at End of Year - Assets | 205.1 | 20.7 |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | (4) | 0.8 |
Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - liabilities | (102.9) | (98.5) |
Purchases - liabilities | 0 | 0 |
Sales - liabilities | 0 | 0 |
Settlements - liabilities | 3.8 | 7.9 |
Foreign exchange revaluation | 0 | 0.2 |
Balance at End of Year - Liabilities | (98.1) | (102.9) |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | 1 | (12.5) |
Investment and other income [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | (2.4) | 1.6 |
Investment and other income [Member] | Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | 0 | 0 |
General, administrative and other expense [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | 0 | 0 |
General, administrative and other expense [Member] | Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | 1 | (12.4) |
Other Income [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | 0 | 0 |
Other Income [Member] | Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | $ 0 | $ (0.1) |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 1,121.9 | $ 1,251.2 |
Life settlement contracts | 14.3 | 14.7 |
Contingent consideration liability | $ 98.1 | $ 102.9 |
Contingent Consideration Liability [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 2.40% | 0.50% |
EBITDA margin | 19.30% | |
Contingent Consideration Liability [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 11.50% | 5.80% |
EBITDA margin | 22.90% | |
Contingent Consideration Liability [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 13.20% | 14.00% |
AUM growth rate | 5.90% | 4.40% |
EBITDA margin | 14.30% | 22.00% |
Trading Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 3.60% | 5.20% |
Risk premium | 2.00% | 2.70% |
Liquidity discount | 0.00% | |
Trading Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 6.90% | 6.10% |
Risk premium | 17.90% | 2.80% |
Liquidity discount | 10.00% | |
Trading Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 6.70% | 5.70% |
Risk premium | 16.50% | 2.80% |
Liquidity discount | 9.60% | |
Life settlement contracts [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 3.30% | 3.30% |
Life expectancy (in months) | 20 months | 21 months |
Life settlement contracts [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 18.00% | 19.00% |
Life expectancy (in months) | 132 months | 141 months |
Life settlement contracts [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 11.50% | 11.70% |
Life expectancy (in months) | 65 months | 68 months |
Level 3 [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Life settlement contracts | $ 14.3 | $ 14.7 |
Contingent consideration liability | 98.1 | 102.9 |
Debt and Other Equity Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | 277.5 | 85.2 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 190.8 | $ 6 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments not Measured at Fair Value (Details) $ in Millions, ₨ in Billions | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016INR (₨) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | $ 8,483.3 | $ 8,368.1 | $ 7,596 | $ 6,323.1 | ||
Other investments | 195.9 | 106.3 | ||||
Senior notes | 1,348.5 | 1,348 | ||||
Loan | 52.7 | $ 93.4 | ₨ 6.3 | |||
Carrying Value [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 8,247.1 | 8,184.9 | ||||
Other investments | 131.6 | 37 | ||||
Cost Method Investments | 50 | 54.6 | ||||
Senior notes | 1,348.5 | 1,348 | ||||
Loan | 52.7 | 0 | ||||
Estimated Fair Value [Member] | Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 8,247.1 | 8,184.9 | ||||
Estimated Fair Value [Member] | Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other investments | 131.6 | 37 | ||||
Senior notes | 1,412.5 | 1,374.9 | ||||
Loan | 52.7 | 0 | ||||
Estimated Fair Value [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cost Method Investments | $ 61.3 | $ 60.1 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation and amortization expense | $ 81 | $ 81.6 | $ 82.6 |
Impairment loss on property and equipment | $ 0 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 1,394 | $ 1,364.8 | |
Less: accumulated depreciation and amortization | (870.8) | (854.7) | |
Property and Equipment, Net | 523.2 | 510.1 | $ 530.7 |
Furniture, software and equipment [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 756.4 | 733.6 | |
Furniture, software and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 3 years | ||
Furniture, software and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 10 years | ||
Premises and leasehold improvements [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 563.5 | 557 | |
Premises and leasehold improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 5 years | ||
Premises and leasehold improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 35 years | ||
Land [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 74.1 | $ 74.2 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Indefinite-lived intangible assets, impairment | 0 | 0 | 0 |
Amortization expense | 10.4 | 20.1 | 20.8 |
Definite-lived intangible assets, impairment | $ 28.2 | $ 8.2 | $ 0 |
Definite-lived intangible assets weighted-average remaining useful life | 7 years 7 months |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 1,661.2 | $ 1,661.2 |
Indefinite-lived intangible assets | 530.9 | 538.3 |
Definite-lived intangible assets, net | 19.2 | 57.5 |
Total | $ 2,211.3 | $ 2,257 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 60.1 | $ 254 |
Accumulated Amortization | (40.9) | (196.5) |
Total | 19.2 | 57.5 |
Management contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 0 | 164.5 |
Accumulated Amortization | 0 | (160.3) |
Total | 0 | 4.2 |
Customer base [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 60.1 | 89.5 |
Accumulated Amortization | (40.9) | (36.2) |
Total | $ 19.2 | $ 53.3 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Schedule of Estimated Remaining Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 4.4 | |
2,018 | 4.4 | |
2,019 | 1.6 | |
2,020 | 1.4 | |
2,021 | 1.2 | |
Thereafter | 6.2 | |
Total | $ 19.2 | $ 57.5 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions, ₨ in Billions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016USD ($) | Sep. 30, 2016INR (₨) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016INR (₨) | |
Line of Credit Facility [Line Items] | |||||||
Face value of senior unsecured and unsubordinated notes | $ 1,400 | $ 1,400 | |||||
Loan | 52.7 | 52.7 | $ 93.4 | ₨ 6.3 | |||
Stated interest rate | 9.89% | 9.89% | |||||
Collateralized time deposit | $ 116 | ||||||
Loan prepaid | 41.2 | ₨ 2.8 | 41.2 | $ 0 | $ 0 | ||
Standby Letters of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Standby letter of credit | $ 96.6 | ₨ 6.5 | |||||
Commercial Paper [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Commercial paper available for issuance under an uncommitted private placement program | $ 500 | $ 500 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) $ in Millions, ₨ in Billions | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016INR (₨) | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Senior notes | $ 1,348.5 | $ 1,348 | ||
Loan due March 2017 | $ 52.7 | $ 93.4 | ₨ 6.3 | |
Effective Interest Rate | 9.89% | |||
Total | $ 1,401.2 | 1,348 | ||
Stated interest rate | 9.89% | 9.89% | ||
Notes Due September 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 299.7 | $ 299.4 | ||
Effective Interest Rate | 1.66% | 1.66% | ||
Face value of senior notes | $ 300 | |||
Stated interest rate | 1.375% | |||
Notes Due May 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 349.9 | $ 349.8 | ||
Effective Interest Rate | 4.74% | 4.74% | ||
Face value of senior notes | $ 350 | |||
Stated interest rate | 4.625% | |||
Notes Due September 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 299.5 | $ 299.5 | ||
Effective Interest Rate | 2.93% | 2.93% | ||
Face value of senior notes | $ 300 | |||
Stated interest rate | 2.80% | |||
Notes Due March 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 399.4 | $ 399.3 | ||
Effective Interest Rate | 2.97% | 2.97% | ||
Face value of senior notes | $ 400 | |||
Stated interest rate | 2.85% |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 352.4 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 349.9 | |
2,021 | 0 | |
Thereafter | 698.9 | |
Total | $ 1,401.2 | $ 1,348 |
VIEs and CSIPs - Narrative (Det
VIEs and CSIPs - Narrative (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
Variable Interest Entity [Line Items] | |||
Gains from consolidated VIEs, net | $ 6.2 | $ 8.3 | $ 7.1 |
Debt, unpaid principal balance | 1,401.2 | 1,348 | |
Transfers into Level 2 from Level 1 - assets | 0 | 0 | |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 | |
Transfers into Level 1 from Level 2 - assets | 0 | 0 | |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 | |
Transfers into Level 3 - assets | 0 | 0 | |
Transfers out of Level 3 - assets | 0 | 0 | |
Transfers into Level 3 - liabilities | 0 | 0 | |
Transfers out of Level 3 - liabilities | 0 | 0 | |
Investments in various funds held by consolidated SIPs for which fair value was estimated using NAV | $ 446 | $ 472.8 | |
Number of sponsored investment products consolidated | 37 | 32 | |
Unfunded commitments company contractually obligated to fund | $ 2.2 | $ 2.4 | |
Collateralized Loan Obligations [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt, unpaid principal balance | 653.8 | 769.3 | |
Consolidated sponsored investment products [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt, unpaid principal balance | $ 75 | $ 81.2 | |
Interest rate, minimum | 2.36% | 2.30% | |
Interest rate, maximum | 6.19% | 5.81% | |
Transfers into Level 2 from Level 1 - assets | $ 0 | $ 0 | |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 | |
Transfers into Level 1 from Level 2 - assets | 0 | 0 | |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 | |
Transfers into Level 3 - assets | 0 | 0 | |
Transfers out of Level 3 - assets | 0 | 0 | |
Transfers into Level 3 - liabilities | 0 | 0 | |
Transfers out of Level 3 - liabilities | $ 0 | $ 0 | |
Liquidation weighted average period | 3 years 2 months | 3 years 11 months | |
Consolidated SIPs' unfunded commitments | $ 74.4 | $ 94.5 | |
Investments in various funds held by consolidated SIPs for which fair value was estimated using NAV | 445.2 | 464.8 | |
Consolidated variable interest entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Debt, unpaid principal balance | $ 607.2 | $ 726.1 | |
Interest rate, minimum | 1.02% | 0.54% | |
Interest rate, maximum | 10.16% | 9.79% | |
Debt Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Purchase of debt securities | $ 182.7 | ||
INDIA | |||
Variable Interest Entity [Line Items] | |||
Number of SIPs | 6 |
VIEs and CSIPs - Schedule of Ba
VIEs and CSIPs - Schedule of Balance of Consolidated VIEs and Consolidated SIPs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Assets | ||||
Cash and cash equivalents | $ 8,483.3 | $ 8,368.1 | $ 7,596 | $ 6,323.1 |
Receivables | 794.3 | 838 | ||
Investments, at fair value | 1,437.6 | 1,712.3 | ||
Other assets | 156.7 | 253.4 | ||
Total Assets | 16,098.8 | 16,335.7 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 233.3 | 232.1 | ||
Debt | 1,401.2 | 1,348 | ||
Other liabilities | 267.3 | 265.8 | ||
Total liabilities | 3,509.5 | 3,780.3 | ||
Redeemable Noncontrolling Interests | 61.1 | 59.6 | 234.8 | 121.8 |
Stockholders’ Equity | ||||
Franklin Resources Inc.'s interests | 11,935.8 | 11,841 | ||
Nonredeemable noncontrolling interests | 592.4 | 654.8 | ||
Total stockholders’ equity | 12,528.2 | 12,495.8 | $ 12,212.4 | $ 10,685.5 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 16,098.8 | 16,335.7 | ||
Consolidated SIPs [Member] | ||||
Assets | ||||
Cash and cash equivalents | 89.8 | 108.5 | ||
Receivables | 24.3 | 10 | ||
Investments, at fair value | 1,025.6 | 977.4 | ||
Other assets | 1.4 | 0.7 | ||
Total Assets | 1,141.1 | 1,096.6 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 19.5 | 10.8 | ||
Debt | 75 | 81.2 | ||
Other liabilities | 8.5 | 6.3 | ||
Total liabilities | 103 | 98.3 | ||
Redeemable Noncontrolling Interests | 61.1 | 59.6 | ||
Stockholders’ Equity | ||||
Franklin Resources Inc.'s interests | 409.2 | 308.8 | ||
Nonredeemable noncontrolling interests | 567.8 | 629.9 | ||
Total stockholders’ equity | 977 | 938.7 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 1,141.1 | 1,096.6 | ||
Consolidated VIEs [Member] | ||||
Assets | ||||
Cash and cash equivalents | 146.4 | 74.7 | ||
Receivables | 23.6 | 11.5 | ||
Investments, at fair value | 487.8 | 672.5 | ||
Other assets | 0 | 0 | ||
Total Assets | 657.8 | 758.7 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 45.7 | 25.3 | ||
Debt | 607.2 | 726.1 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 652.9 | 751.4 | ||
Redeemable Noncontrolling Interests | 0 | 0 | ||
Stockholders’ Equity | ||||
Franklin Resources Inc.'s interests | 4.9 | 7.3 | ||
Nonredeemable noncontrolling interests | 0 | 0 | ||
Total stockholders’ equity | 4.9 | 7.3 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 657.8 | 758.7 | ||
Total VIEs and SIPs [Member] | ||||
Assets | ||||
Cash and cash equivalents | 236.2 | 183.2 | ||
Receivables | 47.9 | 21.5 | ||
Investments, at fair value | 1,513.4 | 1,649.9 | ||
Other assets | 1.4 | 0.7 | ||
Total Assets | 1,798.9 | 1,855.3 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 65.2 | 36.1 | ||
Debt | 682.2 | 807.3 | ||
Other liabilities | 8.5 | 6.3 | ||
Total liabilities | 755.9 | 849.7 | ||
Redeemable Noncontrolling Interests | 61.1 | 59.6 | ||
Stockholders’ Equity | ||||
Franklin Resources Inc.'s interests | 414.1 | 316.1 | ||
Nonredeemable noncontrolling interests | 567.8 | 629.9 | ||
Total stockholders’ equity | 981.9 | 946 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 1,798.9 | $ 1,855.3 |
VIEs and CSIPs - Schedule of Un
VIEs and CSIPs - Schedule of Unpaid Principal Balance and Fair Value of Investments and Debt of CLOs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||
Unpaid principal balance | $ 2,416.6 | $ 2,459.2 |
Fair Value | 1,437.6 | 1,712.3 |
Collateralized Loan Obligations [Member] | ||
Variable Interest Entity [Line Items] | ||
Unpaid principal balance | 496 | 694.5 |
Difference between unpaid principal balance and fair value | (8.2) | (22) |
Fair Value | $ 487.8 | $ 672.5 |
VIEs and CSIPs - Schedule of In
VIEs and CSIPs - Schedule of Investments of Consolidated VIEs and Consolidated SIPs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||
Investment securities, trading | $ 1,121.9 | $ 1,251.2 |
Investments, at fair value | 1,437.6 | 1,712.3 |
Consolidated SIPs [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment securities, trading | 287.8 | 180.5 |
Other debt securities | 131 | 129.2 |
Other equity securities | 606.8 | 667.7 |
Investments, at fair value | 1,025.6 | 977.4 |
Consolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment securities, trading | 0 | 0 |
Other debt securities | 487.3 | 672.5 |
Other equity securities | 0.5 | 0 |
Investments, at fair value | 487.8 | 672.5 |
Total VIEs and SIPs [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment securities, trading | 287.8 | 180.5 |
Other debt securities | 618.3 | 801.7 |
Other equity securities | 607.3 | 667.7 |
Investments, at fair value | $ 1,513.4 | $ 1,649.9 |
VIEs and CSIPs - Schedule of De
VIEs and CSIPs - Schedule of Debt of Consolidated VIEs and Consolidated SIPs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||
Effective Interest Rate | 9.89% | |
Debt | $ 1,401.2 | $ 1,348 |
Consolidated SIPs [Member] | ||
Variable Interest Entity [Line Items] | ||
Effective Interest Rate | 4.79% | 4.71% |
Debt | $ 75 | $ 81.2 |
Consolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Effective Interest Rate | 2.24% | 1.62% |
Debt | $ 607.2 | $ 726.1 |
Total VIEs and SIPs [Member] | ||
Variable Interest Entity [Line Items] | ||
Debt | $ 682.2 | $ 807.3 |
VIEs and CSIPs - Schedule of Co
VIEs and CSIPs - Schedule of Contractual Maturities for Debt of Consolidated VIEs and Consolidated SIPs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||
2,017 | $ 352.4 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 349.9 | |
2,021 | 0 | |
Thereafter | 698.9 | |
Debt | 1,401.2 | $ 1,348 |
Total VIEs and SIPs [Member] | ||
Variable Interest Entity [Line Items] | ||
2,017 | 40.4 | |
2,018 | 79.8 | |
2,019 | 280.1 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 281.9 | |
Debt | $ 682.2 | $ 807.3 |
VIEs and CSIPs - Schedule of 65
VIEs and CSIPs - Schedule of Balances of Assets and Liabilities of Consolidated VIEs and Consolidated SIPs Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 8,483.3 | $ 8,368.1 | $ 7,596 | $ 6,323.1 |
Investments, at fair value | 1,437.6 | 1,712.3 | ||
Total Assets Measured at Fair Value | 1,437.6 | 1,712.3 | ||
Consolidated VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 146.4 | 74.7 | ||
Equity securities | 0.5 | 0 | ||
Debt securities | 487.3 | 672.5 | ||
Investments, at fair value | 487.8 | 672.5 | ||
Consolidated SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 89.8 | 108.5 | ||
Equity securities | 606.8 | 667.7 | ||
Debt securities | 131 | 129.2 | ||
Investments, at fair value | 1,025.6 | 977.4 | ||
Total [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 146.4 | 74.7 | ||
Receivables of consolidated VIEs | 23.6 | 11.5 | ||
Equity securities | 762.2 | 753.8 | ||
Debt securities | 263.4 | 223.6 | ||
Investments, at fair value | 487.8 | 672.5 | ||
Other liabilities of consolidated SIPs | 8.5 | 6.3 | ||
Total VIEs and SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 236.2 | 183.2 | ||
Equity securities | 607.3 | 667.7 | ||
Debt securities | 618.3 | 801.7 | ||
Investments, at fair value | 1,513.4 | 1,649.9 | ||
Total Assets Measured at Fair Value | 1,683.4 | 1,736.1 | ||
Level 1 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | 1,146.3 | 1,588.7 | ||
Level 1 [Member] | Consolidated VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 146.4 | 74.7 | ||
Receivables of consolidated VIEs | 0 | 0 | ||
Investments, at fair value | 0 | 0 | ||
Level 1 [Member] | Consolidated SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity securities | 155.4 | 88.9 | ||
Debt securities | 0 | 0 | ||
Other liabilities of consolidated SIPs | 0.1 | 3.3 | ||
Level 1 [Member] | Total VIEs and SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | 301.8 | 163.6 | ||
Level 2 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | 86.2 | 102.9 | ||
Level 2 [Member] | Consolidated VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables of consolidated VIEs | 23.6 | 11.5 | ||
Investments, at fair value | 487.1 | 672.1 | ||
Level 2 [Member] | Consolidated SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity securities | 1.3 | 8.5 | ||
Debt securities | 131.8 | 93.8 | ||
Other liabilities of consolidated SIPs | 8.4 | 3 | ||
Level 2 [Member] | Total VIEs and SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | 643.8 | 785.9 | ||
Level 3 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | 205.1 | 20.7 | ||
Level 3 [Member] | Consolidated VIEs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables of consolidated VIEs | 0 | 0 | ||
Investments, at fair value | 0.7 | 0.4 | ||
Level 3 [Member] | Consolidated SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity securities | 605.5 | 656.4 | ||
Debt securities | 131.6 | |||
Other liabilities of consolidated SIPs | 0 | 0 | ||
Level 3 [Member] | Total VIEs and SIPs [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total Assets Measured at Fair Value | $ 737.8 | $ 786.6 |
VIEs and CSIPs - Schedule of 66
VIEs and CSIPs - Schedule of Investments for which Fair Value was Estimated using NAV (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in funds products for which fair value was estimated using NAV | $ 446 | $ 472.8 |
Real Estate and Private Equity Funds [Member] | Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in funds products for which fair value was estimated using NAV | 444.2 | 463.6 |
Hedge Funds [Member] | Level 3 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in funds products for which fair value was estimated using NAV | 1 | 1.2 |
Hedge Funds [Member] | Level 2 [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investments in funds products for which fair value was estimated using NAV | $ 0.8 | $ 8 |
VIEs and CSIPs - Schedule of Ch
VIEs and CSIPs - Schedule of Changes in Level 3 Assets and Liabilities of Consolidated VIEs and Consolidated SIPs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Oct. 01, 2014 | |
Debt of Consolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Balance at beginning of year - liabilities | $ 0 | $ (47.2) | |
Adjustment for adoption of new accounting guidance | $ 47.2 | ||
Realized and unrealized gains (losses) included in investment and other income, net - liabilities | 0 | ||
Purchases - liabilities | 0 | ||
Sales - liabilities | 0 | ||
Settlements - liabilities | 0 | ||
Foreign exchange revaluation | 0 | ||
Balance at End of Year - Liabilities | 0 | ||
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | 0 | ||
Equity Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Balance at beginning of year - assets | 656.4 | 614.3 | |
Realized and unrealized gains (losses) included in investment and other income, net - assets | (7.3) | 39.5 | |
Purchases - assets | 60.6 | 142.8 | |
Sales - assets | (103.5) | (134.7) | |
Settlements - assets | 0 | ||
Foreign exchange revaluation | (0.7) | (5.5) | |
Balance at End of Year - Assets | 605.5 | 656.4 | |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | (13.3) | 28 | |
Debt Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Balance at beginning of year - assets | 129.8 | 206.3 | |
Realized and unrealized gains (losses) included in investment and other income, net - assets | (10.3) | (5.6) | |
Purchases - assets | 26.3 | 25.8 | |
Sales - assets | (15.4) | (88.9) | |
Settlements - assets | (0.6) | ||
Foreign exchange revaluation | 1.2 | (7.2) | |
Balance at End of Year - Assets | 131.6 | 129.8 | |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | (10.7) | (10.4) | |
Investments of Consolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Balance at beginning of year - assets | 0.4 | 0.5 | |
Realized and unrealized gains (losses) included in investment and other income, net - assets | (0.2) | (0.1) | |
Purchases - assets | 0.5 | 0 | |
Sales - assets | 0 | 0 | |
Settlements - assets | 0 | ||
Foreign exchange revaluation | 0 | 0 | |
Balance at End of Year - Assets | 0.7 | 0.4 | |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | (0.2) | (0.1) | |
Level 3 [Member] | |||
Variable Interest Entity [Line Items] | |||
Balance at beginning of year - assets | 786.6 | 821.1 | |
Realized and unrealized gains (losses) included in investment and other income, net - assets | (17.8) | 33.8 | |
Purchases - assets | 87.4 | 168.6 | |
Sales - assets | (118.9) | (223.6) | |
Settlements - assets | (0.6) | ||
Foreign exchange revaluation | 0.5 | (12.7) | |
Balance at End of Year - Assets | 737.8 | 786.6 | |
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at the end of the year | $ (24.2) | $ 17.5 |
VIEs and CSIPs - Schedule of Va
VIEs and CSIPs - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Equity Securities [Member] | Minimum [Member] | Market comparable companies [Member] | ||
Variable Interest Entity [Line Items] | ||
EBITDA multiple | 5 | 4.2 |
Discount for lack of marketability | 25.00% | 25.00% |
Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Discount rate | 5.00% | 6.30% |
Equity Securities [Member] | Minimum [Member] | Market pricing [Member] | ||
Variable Interest Entity [Line Items] | ||
Price to book value ratio | $ 1.8 | $ 1.8 |
Equity Securities [Member] | Maximum [Member] | Market comparable companies [Member] | ||
Variable Interest Entity [Line Items] | ||
EBITDA multiple | 14.2 | 10.7 |
Discount for lack of marketability | 50.00% | 50.00% |
Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Discount rate | 19.00% | 19.00% |
Equity Securities [Member] | Maximum [Member] | Market pricing [Member] | ||
Variable Interest Entity [Line Items] | ||
Price to book value ratio | $ 2.3 | $ 2.8 |
Equity Securities [Member] | Weighted Average [Member] | Market comparable companies [Member] | ||
Variable Interest Entity [Line Items] | ||
EBITDA multiple | 10.3 | 8.8 |
Discount for lack of marketability | 36.60% | 34.90% |
Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Discount rate | 13.70% | 12.80% |
Equity Securities [Member] | Weighted Average [Member] | Market pricing [Member] | ||
Variable Interest Entity [Line Items] | ||
Price to book value ratio | $ 2 | $ 2.3 |
Debt Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Discount rate | 6.00% | 3.50% |
Risk premium | 0.00% | 0.00% |
Debt Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Discount rate | 15.00% | 17.00% |
Risk premium | 28.00% | 18.00% |
Debt Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
EBITDA multiple | 5.5 | |
Discount rate | 10.40% | 9.40% |
Risk premium | 9.70% | 4.60% |
Debt Securities [Member] | Weighted Average [Member] | Market pricing [Member] | ||
Variable Interest Entity [Line Items] | ||
Private sale pricing | $ 0.57 | |
Consolidated sponsored investment products [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity securities | $ 606.8 | $ 667.7 |
Debt securities | 131 | 129.2 |
Consolidated sponsored investment products [Member] | Level 3 [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity securities | 605.5 | 656.4 |
Debt securities | 131.6 | |
Consolidated sponsored investment products [Member] | Level 3 [Member] | Market comparable companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity securities | 113.1 | 128.8 |
Consolidated sponsored investment products [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity securities | 24.3 | 15.1 |
Debt securities | 119 | 129.8 |
Consolidated sponsored investment products [Member] | Level 3 [Member] | Market pricing [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity securities | 22.9 | $ 47.7 |
Debt securities | $ 12.6 |
VIEs and CSIPs - Schedule of Fi
VIEs and CSIPs - Schedule of Financial Instruments of Consolidated SIPs and Consolidated VIEs not Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 8,483.3 | $ 8,368.1 | $ 7,596 | $ 6,323.1 | |
Debt | 1,401.2 | 1,348 | |||
Consolidated SIPs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 89.8 | 108.5 | |||
Debt | 75 | 81.2 | |||
Consolidated VIEs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 146.4 | 74.7 | |||
Debt | 607.2 | 726.1 | |||
Consolidated VIEs [Member] | Level 1 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 146.4 | 74.7 | |||
Consolidated VIEs [Member] | Level 3 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Carrying Value [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 8,247.1 | 8,184.9 | |||
Carrying Value [Member] | Consolidated SIPs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 89.8 | 108.5 | |||
Debt | 75 | 81.2 | |||
Carrying Value [Member] | Consolidated VIEs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Debt | 607.2 | 726.1 | |||
Estimated Fair Value [Member] | Level 1 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 8,247.1 | 8,184.9 | |||
Estimated Fair Value [Member] | Consolidated SIPs [Member] | Level 1 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 89.8 | 108.5 | |||
Estimated Fair Value [Member] | Consolidated SIPs [Member] | Level 3 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Debt | 74.6 | 77.9 | |||
Estimated Fair Value [Member] | Consolidated VIEs [Member] | Level 2 or Level 3 [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Debt | [1] | $ 594.5 | $ 719.3 | ||
[1] | 1 Substantially all is Level |
VIEs and CSIPs - Schedule of 70
VIEs and CSIPs - Schedule of Changes in Redeemable Noncontrolling Interest of CSIPs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Temporary Equity [Line Items] | |||
Balance at beginning of year | $ 59.6 | $ 234.8 | $ 121.8 |
Net income (loss) | 1.6 | (6.1) | 20.6 |
Net subscriptions and other | (91.8) | (49) | 10.3 |
Balance at End of Year | 61.1 | 59.6 | 234.8 |
Redeemable Noncontrolling Interests [Member] | |||
Temporary Equity [Line Items] | |||
Net subscriptions and other | 79.9 | 149.4 | 436 |
Net deconsolidations | $ (80) | $ (318.5) | $ (343.6) |
VIEs and CSIPs - Schedule of Ma
VIEs and CSIPs - Schedule of Maximum Exposure Loss from Non-Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Variable Interest Entity [Line Items] | ||
Nonconsolidated maximum exposure to loss | $ 98.7 | $ 272.1 |
Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Nonconsolidated maximum exposure to loss | 21.4 | 35.5 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Nonconsolidated maximum exposure to loss | $ 77.3 | $ 236.6 |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit (shortfall) associated with stock-based compensation plans | $ (5.9) | $ 10.9 | $ 13.3 |
Reduced rates on income tax expense, amount | $ 34.2 | $ 68.3 | $ 100.6 |
Reduced rates on income tax expense, income tax benefits per diluted share | $ 0.06 | $ 0.11 | $ 0.16 |
Income Tax Examination [Line Items] | |||
State net operating loss carry-forward | $ 74.2 | ||
Valuation allowance | (9.4) | $ 7.7 | |
Cumulative undistributed foreign earnings | 8,500 | ||
Accrued interest on uncertain tax positions | 9.6 | 11.2 | |
Interest expense (benefit) recognized | (1.3) | $ (6.6) | $ 2.4 |
Estimated decrease in unrecognized tax benefits within the next twelve months | 19.2 | ||
Foreign Tax Authority [Member] | |||
Income Tax Examination [Line Items] | |||
Foreign net operating loss carry-forwards | 135.8 | ||
Foreign net operating loss carry forwards expiration amount | $ 68.5 |
Taxes on Income - Schedule of T
Taxes on Income - Schedule of Taxes on Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 582.8 | $ 733.9 | $ 803.6 |
State | 47.5 | 83.1 | 82.4 |
Non-U.S. | 102.8 | 121.1 | 114.1 |
Deferred expense (benefit) | 9 | (14.4) | (2.2) |
Total | $ 742.1 | $ 923.7 | $ 997.9 |
Taxes on Income - Schedule of I
Taxes on Income - Schedule of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 1,641.7 | $ 2,026.4 | $ 2,160.8 |
Non-U.S. | 858.1 | 1,002 | 1,248.8 |
Total | $ 2,499.8 | $ 3,028.4 | $ 3,409.6 |
Taxes on Income - Components of
Taxes on Income - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred Tax Assets | ||
Deferred compensation and employee benefits | $ 52.9 | $ 60.8 |
Stock-based compensation | 36.6 | 38.7 |
Net operating loss carry-forwards | 32.5 | 40.3 |
Tax benefit for uncertain tax positions | 19.8 | 29.6 |
Other | 12.5 | 11.6 |
Total deferred tax assets | 154.3 | 181 |
Valuation allowance for net operating loss carry-forwards | (24.6) | (34) |
Deferred tax assets, net of valuation allowance | 129.7 | 147 |
Deferred Tax Liabilities | ||
Goodwill and other purchased intangibles | 202.8 | 217.3 |
Deferred commissions | 18.3 | 21.2 |
Depreciation on fixed assets | 18 | 13.4 |
Other | 34.4 | 35.8 |
Total deferred tax liabilities | 273.5 | 287.7 |
Net Deferred Tax Liability | $ 143.8 | $ 140.7 |
Taxes on Income - Components 76
Taxes on Income - Components of Net Deferred Tax Assets or Liabilities as Classified in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Sep. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 17.7 | $ 100.7 |
Deferred tax liabilities | 161.5 | 241.4 |
Net Deferred Tax Liability | $ 143.8 | $ 140.7 |
Taxes on Income - Reconciliatio
Taxes on Income - Reconciliation of the Amount of Tax Expense at the Federal Statutory Rate and Taxes on Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal taxes at statutory rate | $ 874.9 | $ 1,059.9 | $ 1,193.4 |
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax effect | $ 42.7 | $ 51.6 | $ 52.4 |
State taxes, net of federal tax effect rate | 1.70% | 1.70% | 1.50% |
Effect of non-U.S. operations | $ (153) | $ (148.5) | $ (246.3) |
Effect of non-U.S. operation rate | (6.10%) | (4.90%) | (7.20%) |
Effect of net income attributable to noncontrolling interests | $ (10.9) | $ (24.3) | $ (9.6) |
Effect of net income attributable to noncontrolling interest rate | (0.40%) | (0.80%) | (0.30%) |
Other | $ (11.6) | $ (15) | $ 8 |
Other rate | (0.50%) | (0.50%) | 0.30% |
Tax Provision | $ 742.1 | $ 923.7 | $ 997.9 |
Effective Tax Rate | 29.70% | 30.50% | 29.30% |
Taxes on Income - Reconciliat78
Taxes on Income - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 105.2 | $ 118.2 | $ 109.5 |
Additions for tax positions of prior years | 0.6 | 12.6 | 3 |
Reductions for tax positions of prior years | (9) | (3.4) | (2.4) |
Tax positions related to the current year | 12.9 | 16.2 | 14.1 |
Settlements with taxing authorities | (5.4) | (0.1) | (0.3) |
Expirations of statute of limitations | (22.2) | (38.3) | (5.7) |
Balance at End of Year | $ 82.1 | $ 105.2 | $ 118.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
The plaintiff alleges that plan losses exceed | $ 88 | ||
Lease expense | 69.3 | $ 58 | $ 58.2 |
Sublease income | 1.6 | $ 1.7 | $ 1.7 |
Future minimum rentals to be received under non-cancelable subleases | 0.8 | ||
Committed capital contributions | $ 35.2 |
Commitments and Contingencies80
Commitments and Contingencies - Future Minimum Lease Payments under Long-Term Non-Cancelable Operating Leases (Details) $ in Millions | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 44.7 |
2,018 | 43.1 |
2,019 | 39 |
2,020 | 31.6 |
2,021 | 28 |
Thereafter | 190.2 |
Total Minimum Lease Payments | $ 376.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation [Abstract] | |||
Number of shares authorized for issuance under the USIP | 120 | ||
Number of shares available for grant under USIP | 24.3 | ||
Unrecognized compensation cost related to nonvested awards net of estimated forfeitures | $ 122.5 | ||
Remaining weighted-average vesting period | 1 year 7 months 18 days | ||
Weighted-average grant-date fair values of stock awards and stock unit awards granted | $ 40.88 | $ 55.65 | $ 53.89 |
Fair value of stock awards and stock unit awards vested | $ 92.8 | $ 115.2 | $ 153 |
Total intrinsic values of share options exercised | 17.9 | ||
Cash received from stock option exercises | 7.2 | ||
Income tax benefits from stock options exercises | $ 5.9 | ||
Total shares issued under ESIP | 0.8 | ||
Shares reserved for future issuance under ESIP | 4.4 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 131.5 | $ 140 | $ 127.7 |
Stock and stock unit awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | 125.3 | 133.6 | 121.1 |
Employee stock investment plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 6.2 | $ 6.4 | $ 6.6 |
Stock-Based Compensation - Su83
Stock-Based Compensation - Summary of Nonvested Stock and Stock Unit Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2015 | 3,258 | ||
Granted | 3,382 | ||
Vested | (2,489) | ||
Forfeited/canceled | (494) | ||
Nonvested Balance at September 30, 2016 | 3,657 | 3,258 | |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ 53.97 | ||
Weighted Average Grant Date Fair Value of shares granted | 40.88 | $ 55.65 | $ 53.89 |
Weighted Average Grant Date Fair Value of shares vested | 49.51 | ||
Weighted Average Grant Date Fair Value of shares forfeited/canceled | 48.19 | ||
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ 45.67 | $ 53.97 | |
Time-Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2015 | 2,085 | ||
Granted | 2,703 | ||
Vested | (2,087) | ||
Forfeited/canceled | (332) | ||
Nonvested Balance at September 30, 2016 | 2,369 | 2,085 | |
Performance-Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2015 | 1,173 | ||
Granted | 679 | ||
Vested | (402) | ||
Forfeited/canceled | (162) | ||
Nonvested Balance at September 30, 2016 | 1,288 | 1,173 |
Defined Contribution Plans - Na
Defined Contribution Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Participants annual maximum contribution to defined contribution plan, pre-tax | 50.00% | ||
Percentage of annual bonus eligible for defined contribution to plan | 100.00% | ||
Expenses recognized for defined contribution plans | $ 46.8 | $ 46.4 | $ 47 |
Segment and Geographic Inform85
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Inform86
Segment and Geographic Information - Schedule of Operating Revenues, Property and Equipment by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | $ 6,618 | $ 7,948.7 | $ 8,491.4 |
Property and Equipment, Net | 523.2 | 510.1 | 530.7 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 4,063.6 | 4,634.2 | 5,014.4 |
Property and Equipment, Net | 428 | 406.9 | 417 |
Luxembourg [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 1,707.9 | 2,278.6 | 2,034 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 273.8 | 339 | 357.6 |
Property and Equipment, Net | 3.1 | 4.5 | 5.9 |
Asia-Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 267.9 | 311.8 | 420.2 |
Property and Equipment, Net | 62.9 | 68.9 | 78 |
The Bahamas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 204.6 | 250.2 | 492.7 |
Property and Equipment, Net | 14.3 | 14.6 | 15.1 |
Europe, the Middle East and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and Equipment, Net | 14.9 | 14.8 | 13.8 |
Europe, the Middle East and Africa, excluding Luxembourg [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 94 | 126.8 | 159.8 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 6.2 | 8.1 | 12.7 |
Property and Equipment, Net | $ 0 | $ 0.4 | $ 0.9 |
Other Income (Expenses) - Narra
Other Income (Expenses) - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | |||
Proceeds from the sale of available-for-sale securities | $ 269.4 | $ 221.3 | $ 380.4 |
Net gains (losses) recognized on trading investment securities | 27.9 | (20.3) | 5.2 |
Net gains (losses) recognized on trading investment securities of consolidated SIPs | $ 9.4 | $ (17.7) | $ 3.7 |
Other Income (Expenses) - Sched
Other Income (Expenses) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | |||
Dividend income | $ 20.6 | $ 10.3 | $ 10.1 |
Interest income | 36.5 | 10.8 | 9.1 |
Gains (losses) on trading investment securities, net | 50.1 | (22.3) | 10.4 |
Realized gains on sale of investment securities, available-for-sale | 32.1 | 28.1 | 57.8 |
Realized losses on sale of investment securities, available-for-sale | (3.2) | (4) | (1) |
Income (losses) from investments in equity method investees | 56.7 | (63.2) | 68.1 |
Other-than-temporary impairment of investments | (11.1) | (10) | (0.6) |
Gains (losses) on investments of consolidated SIPs, net | (13.5) | 18 | 33.9 |
Gains from consolidated VIEs, net | 6.2 | 8.3 | 7.1 |
Foreign currency exchange gains (losses), net | (2.9) | 57 | 32.1 |
Other, net | 12.5 | 7.4 | 8.8 |
Total | 184 | 40.4 | 235.8 |
Interest Expense | (49.9) | (39.6) | (47.4) |
Other income, net | $ 134.1 | $ 0.8 | $ 188.4 |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | $ (314.2) | $ (117.7) | |
Other comprehensive income (loss) before reclassifications, net of tax | (18) | (183.4) | |
Reclassifications to net investment and other income, net of tax | (15.2) | (13.1) | |
Total other comprehensive loss | (33.2) | (196.5) | $ (123.8) |
Balance at end of period | (347.4) | (314.2) | (117.7) |
Unrealized Gains on Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | 19.3 | 31 | |
Other comprehensive income (loss) before reclassifications, net of tax | 2.7 | 1.4 | |
Reclassifications to net investment and other income, net of tax | (15.2) | (13.1) | |
Total other comprehensive loss | (12.5) | (11.7) | |
Balance at end of period | 6.8 | 19.3 | 31 |
Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (327.8) | (143.6) | |
Other comprehensive income (loss) before reclassifications, net of tax | (18.3) | (184.2) | |
Reclassifications to net investment and other income, net of tax | 0 | 0 | |
Total other comprehensive loss | (18.3) | (184.2) | |
Balance at end of period | (346.1) | (327.8) | (143.6) |
Unrealized Losses on Defined Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (5.7) | (5.1) | |
Other comprehensive income (loss) before reclassifications, net of tax | (2.4) | (0.6) | |
Reclassifications to net investment and other income, net of tax | 0 | 0 | |
Total other comprehensive loss | (2.4) | (0.6) | |
Balance at end of period | $ (8.1) | $ (5.7) | $ (5.1) |