Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2018 | Mar. 29, 2018 | |
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | $ 11 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 513,094,888 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Revenues | |||
Investment management fees | $ 4,367.5 | $ 4,359.2 | $ 4,471.7 |
Sales and distribution fees | 1,599.8 | 1,705.6 | 1,806.4 |
Shareholder servicing fees | 221.9 | 225.7 | 243.6 |
Other | 129.9 | 101.7 | 96.3 |
Total operating revenues | 6,319.1 | 6,392.2 | 6,618 |
Operating Expenses | |||
Sales, distribution and marketing | 2,039.7 | 2,130.9 | 2,209.9 |
Compensation and benefits | 1,390.6 | 1,333.7 | 1,360.9 |
Information systems and technology | 243.9 | 219.8 | 207.3 |
Occupancy | 128.6 | 121.3 | 134.1 |
General, administrative and other | 397.7 | 322.2 | 340.1 |
Total operating expenses | 4,200.5 | 4,127.9 | 4,252.3 |
Operating Income | 2,118.6 | 2,264.3 | 2,365.7 |
Other Income (Expenses) | |||
Investment and other income, net | 145.3 | 336.3 | 184 |
Interest expense | (48.7) | (51.5) | (49.9) |
Other income, net | 96.6 | 284.8 | 134.1 |
Income before taxes | 2,215.2 | 2,549.1 | 2,499.8 |
Taxes on income | 1,472.5 | 759.4 | 742.1 |
Net income | 742.7 | 1,789.7 | 1,757.7 |
Less: net income (loss) attributable to | |||
Nonredeemable noncontrolling interests | (8.9) | 40 | 29.4 |
Redeemable noncontrolling interests | (12.8) | 53 | 1.6 |
Net Income Attributable to Franklin Resources, Inc. | $ 764.4 | $ 1,696.7 | $ 1,726.7 |
Earnings per Share | |||
Basic | $ 1.39 | $ 3.01 | $ 2.94 |
Diluted | 1.39 | 3.01 | 2.94 |
Dividends Declared per Share | $ 3.92 | $ 0.8 | $ 0.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 742.7 | $ 1,789.7 | $ 1,757.7 |
Other Comprehensive Income (Loss) | |||
Net unrealized gains (losses) on investments, net of tax | 4.3 | 2.2 | (12.5) |
Currency translation adjustments, net of tax | (91.9) | 65.4 | (18.3) |
Net unrealized gains (losses) on defined benefit plans, net of tax | 1.9 | 2.1 | (2.4) |
Total other comprehensive income (loss) | (85.7) | 69.7 | (33.2) |
Total comprehensive income | 657 | 1,859.4 | 1,724.5 |
Less: comprehensive income (loss) attributable to | |||
Nonredeemable noncontrolling interests | (8.9) | 40 | 29.4 |
Redeemable noncontrolling interests | (12.8) | 53 | 1.6 |
Comprehensive Income Attributable to Franklin Resources, Inc. | $ 678.7 | $ 1,766.4 | $ 1,693.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Cash and cash equivalents | $ 6,910.6 | $ 8,749.7 |
Receivables | 733.7 | 767.8 |
Investments | 1,426.5 | 1,393.6 |
Investments, at fair value | 551.6 | 440 |
Property and equipment, net | 535 | 517.2 |
Goodwill and other intangible assets, net | 2,333.4 | 2,227.7 |
Other | 220.7 | 176.5 |
Total Assets | 14,383.5 | 17,534 |
Liabilities | ||
Compensation and benefits | 405.6 | 396.6 |
Accounts payable and accrued expenses | 158.9 | 167.4 |
Dividends | 127.7 | 113.3 |
Commissions | 297.9 | 313.3 |
Income taxes | 1,034.8 | 74.7 |
Debt | 695.9 | 1,044.2 |
Deferred taxes | 126.5 | 170.6 |
Other | 184.1 | 198.7 |
Total liabilities | 3,132 | 2,656.3 |
Commitments and Contingencies (Note 12) | ||
Redeemable Noncontrolling Interests | 1,043.6 | 1,941.9 |
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; 519,122,574 and 554,865,343 shares issued and outstanding at September 30, 2018 and 2017 | 51.9 | 55.5 |
Retained earnings | 10,217.9 | 12,849.3 |
Accumulated other comprehensive loss | (370.6) | (284.8) |
Total Franklin Resources, Inc. stockholders’ equity | 9,899.2 | 12,620 |
Nonredeemable noncontrolling interests | 308.7 | 315.8 |
Total stockholders’ equity | 10,207.9 | 12,935.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 14,383.5 | 17,534 |
Consolidated Investment Products [Member] | ||
Assets | ||
Cash and cash equivalents | 299.8 | 226.4 |
Receivables | 114.2 | 234.1 |
Investments, at fair value | 2,109.4 | 3,467.4 |
Other | 1 | 0.9 |
Total Assets | 2,524.4 | 3,928.8 |
Liabilities | ||
Accounts payable and accrued expenses | 68 | 124.1 |
Debt | 32.6 | 53.4 |
Other | 9.3 | 8.7 |
Total liabilities | 109.9 | 186.2 |
Redeemable Noncontrolling Interests | 1,043.6 | 1,941.9 |
Stockholders’ Equity | ||
Total Franklin Resources, Inc. stockholders’ equity | 1,092.6 | 1,511.8 |
Nonredeemable noncontrolling interests | 278.3 | 288.9 |
Total stockholders’ equity | 1,370.9 | 1,800.7 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 2,524.4 | 3,928.8 |
Franklin Resources, Inc. [Member] | ||
Assets | ||
Cash and cash equivalents | $ 6,610.8 | $ 8,523.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Investments, at fair value | $ 551.6 | $ 440 |
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 | 519,122,574 | 554,865,343 |
Common stock, shares outstanding | 519,122,574 | 554,865,343 |
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] | Accumulated Other Comprehensive Loss [Member] | Stockholders' Equity [Member] | Nonredeemable Noncontrolling Interests [Member] |
Beginning balance - Shares at Sep. 30, 2015 | 603.5 | ||||||
Beginning balance at Sep. 30, 2015 | $ 60.4 | $ 0 | $ 12,094.8 | $ (314.2) | $ 11,841 | ||
Beginning balance at Sep. 30, 2015 | $ 654.8 | ||||||
Beginning balance at Sep. 30, 2015 | $ 12,495.8 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,726.7 | 1,726.7 | 1,726.7 | ||||
Nonredeemable noncontrolling interests | 29.4 | ||||||
Net income | 1,756.1 | ||||||
Other comprehensive income (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 shortfall from stock-based compensation | (5.9) | (5.9) | (5.9) | ||||
Stock-based compensation | 2.1 | 2.1 | 2.1 | ||||
Net (distributions) subscriptions and other | (91.8) | (91.8) | |||||
Ending balance - Shares at Sep. 30, 2016 | 570.3 | ||||||
Ending balance at Sep. 30, 2016 | $ 57 | 0 | 12,226.2 | (347.4) | 11,935.8 | ||
Ending balance at Sep. 30, 2016 | 592.4 | ||||||
Ending balance at Sep. 30, 2016 | 12,528.2 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting guidance | ASU 2015-02 [Member] | (325.9) | 5.8 | (7.1) | (1.3) | (324.6) | ||
Net income | 1,696.7 | 1,696.7 | 1,696.7 | ||||
Nonredeemable noncontrolling interests | 40 | ||||||
Net income | 1,736.7 | ||||||
Other comprehensive income (loss) | 69.7 | 69.7 | 69.7 | ||||
Cash dividends declared on common stock | (449.9) | (449.9) | (449.9) | ||||
Repurchase of common stock - Shares | (19.1) | ||||||
Repurchase of common stock - Amount | (771.5) | $ (1.9) | (140.1) | (629.5) | (771.5) | ||
Issuance of common stock - Shares | 3.7 | ||||||
Issuance of common stock - Amount | 134.6 | $ 0.4 | 134.2 | 134.6 | |||
Tax shortfall from stock-based compensation | (8.7) | (8.7) | (8.7) | ||||
Stock-based compensation | 14.6 | 14.6 | 14.6 | ||||
Net (distributions) subscriptions and other | 17.3 | 17.3 | |||||
Net consolidation (deconsolidation) of investment products | (9.3) | (9.3) | |||||
Ending balance - Shares at Sep. 30, 2017 | 554.9 | ||||||
Ending balance at Sep. 30, 2017 | 12,620 | $ 55.5 | 0 | 12,849.3 | (284.8) | 12,620 | |
Ending balance at Sep. 30, 2017 | 315.8 | 315.8 | |||||
Ending balance at Sep. 30, 2017 | 12,935.8 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting guidance | ASU 2016-09 [Member] | 0.4 | 2.1 | (1.6) | (0.1) | 0.4 | ||
Net income | 764.4 | 764.4 | 764.4 | ||||
Nonredeemable noncontrolling interests | (8.9) | ||||||
Net income | 755.5 | ||||||
Other comprehensive income (loss) | (85.7) | (85.7) | (85.7) | ||||
Cash dividends declared on common stock | (2,131.3) | (2,131.3) | (2,131.3) | ||||
Repurchase of common stock - Shares | (39.9) | ||||||
Repurchase of common stock - Amount | (1,426.7) | $ (4) | (170.4) | (1,252.3) | (1,426.7) | ||
Issuance of common stock - Shares | 3.3 | ||||||
Issuance of common stock - Amount | 131.1 | $ 0.3 | 130.8 | 131.1 | |||
Stock-based compensation | 10.6 | 10.6 | 10.6 | ||||
Acquisition - Shares | 0.8 | ||||||
Acquisition - Amount | 27 | $ 0.1 | 26.9 | 27 | |||
Net (distributions) subscriptions and other | (6) | (6) | |||||
Net consolidation (deconsolidation) of investment products | 2.4 | 2.4 | |||||
Purchase of noncontrolling interest | (5.2) | (10.6) | (10.6) | 5.4 | |||
Ending balance - Shares at Sep. 30, 2018 | 519.1 | ||||||
Ending balance at Sep. 30, 2018 | 9,899.2 | $ 51.9 | $ 0 | $ 10,217.9 | $ (370.6) | $ 9,899.2 | |
Ending balance at Sep. 30, 2018 | 308.7 | $ 308.7 | |||||
Ending balance at Sep. 30, 2018 | $ 10,207.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net cash provided by operating activities | |||
Net Income | $ 742.7 | $ 1,789.7 | $ 1,757.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred sales commissions | 80.7 | 72 | 75.2 |
Depreciation and other amortization | 76.4 | 80.3 | 87.1 |
Stock-based compensation | 117.8 | 123.4 | 131.5 |
Income from investments in equity method investees | (44.4) | (107.9) | (56.7) |
Net losses (gains) on investments of consolidated investment products | 8 | (55.4) | 19.7 |
Deferred income taxes | (50.6) | 8.8 | 9 |
Other | 33.7 | (14.9) | 3.8 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables and other assets | (90.1) | (96.7) | 4.2 |
Decrease (increase) in receivables of consolidated investment products | 68.5 | (64.3) | (15) |
Decrease (increase) in trading securities, net | (39.2) | 130.2 | 120.4 |
Decrease (increase) in trading securities of consolidated investment products, net | 412.7 | (875) | (242.3) |
Increase (decrease) in accrued compensation and benefits | (19.1) | 37.2 | (76.7) |
Increase (decrease) in commissions payable | (15.4) | 11.3 | (57.9) |
Increase (decrease) in income taxes payable | 965.2 | 44.5 | (14) |
Decrease in accounts payable, accrued expenses and other liabilities | (23) | (9.2) | (29.2) |
Increase in accounts payable and accrued expenses of consolidated investment products | 5.8 | 61.4 | 10.9 |
Net cash provided by operating activities | 2,229.7 | 1,135.4 | 1,727.7 |
Net cash provided by (used in) investing activities | |||
Purchase of investments | (358.2) | (372.5) | (367.8) |
Liquidation of investments | 286.2 | 344.9 | 405.2 |
Purchase of investments by consolidated investment products | (73.8) | (114.7) | (333.3) |
Liquidation of investments by consolidated investment products | 73.3 | 368.1 | 597.3 |
Additions of property and equipment, net | (106.5) | (74.9) | (97.6) |
Adoption of new accounting guidance | 0 | (49.2) | 0 |
Acquisitions, net of cash acquired | (86.8) | (14) | 0 |
Net deconsolidation of investment products | (24.6) | (35.7) | (11.6) |
Net cash provided by (used in) investing activities | (290.4) | 52 | 192.2 |
Net cash used in financing activities | |||
Issuance of common stock | 24.8 | 24.9 | 24.1 |
Dividends paid on common stock | (2,116.9) | (441.2) | (408.7) |
Repurchase of common stock | (1,424.8) | (765.3) | (1,308) |
Excess tax benefit from stock-based compensation | 0 | 0.9 | 0.8 |
Payments on debt | (361.9) | (300) | 0 |
Proceeds from loan | 0 | 0 | 93.4 |
Payments on loan | 0 | (53.7) | (41.2) |
Proceeds from debt of consolidated investment products | 0 | 20.6 | 33.8 |
Payments on debt by consolidated investment products | (21) | (308.5) | (179.8) |
Payments on contingent consideration liabilities | (21.6) | (35.3) | (3.2) |
Noncontrolling interests | 159.7 | 901.6 | (11.9) |
Net cash used in financing activities | (3,761.7) | (956) | (1,800.7) |
Effect of exchange rate changes on cash and cash equivalents | (16.7) | 35 | (4) |
Increase (decrease) in cash and cash equivalents | (1,839.1) | 266.4 | 115.2 |
Cash and cash equivalents, beginning of year | 8,749.7 | 8,483.3 | 8,368.1 |
Cash and Cash Equivalents, End of Year | 6,910.6 | 8,749.7 | 8,483.3 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes | 523.5 | 712.2 | 758.6 |
Cash paid for interest | 38.6 | 42.3 | 47.4 |
Cash paid for interest by consolidated investment products | $ 2.6 | $ 11.2 | $ 28.3 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
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 investment products which include sponsored funds, as well as institutional and high net-worth separate accounts. In addition to investment management, the Company ’ s services include fund administration, sales, distribution, marketing, shareholder servicing and other 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, 2018 (“fiscal year 2018 ”). Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and consolidated investment products (“CIPs”) 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 a voting interest entity (“VOE”) or is the primary beneficiary of a variable interest entity (“VIE”). 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 do not have defined rights and obligations normally associated with an equity investment. Substantially all of the Company ’ s VIEs are investment products, and its variable interests consist of its equity ownership interests in and investment management fees earned from these products. The Company is the primary beneficiary of a VIE 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. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”) and the life of the investment product. Related Parties include sponsored funds and equity method investees. A substantial amount of the Company ’ s operating revenues and receivables are 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 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. Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities, which may include published net asset values (“NAV”) for fund products. 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. Quoted market prices may be adjusted if events occur, such as significant price changes in proxies traded in relevant markets after the close of corresponding markets, trade halts or suspensions, or unscheduled market closures. These 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. A substantial amount of the Company’s investments are recorded at fair value or amounts that approximate fair value on a recurring basis. Investments in fund products for which fair value is estimated using NAV as a practical expedient (when the NAV is available to the Company as an investor but is not publicly available) are not classified in the fair value hierarchy. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value. Cash and Cash Equivalents primarily consist of nonconsolidated sponsored money market funds and deposits with financial institutions. At September 30, 2017, cash and cash equivalents also included debt instruments and time deposits with original maturities of three months or less at the purchase date. 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, their carrying values approximate fair value. 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 investment products and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values 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 of nonconsolidated sponsored funds, 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 values of all funds and certain other equity securities are determined based on their published NAV. The fair values of debt and certain other equity securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. At September 30, 2017, investment securities, trading also included corporate debt securities for which the fair value was determined using market pricing. Investment Securities, Available-for-Sale consist primarily of nonconsolidated sponsored funds 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 funds is determined based on their published NAV. The fair value of debt securities is primarily determined using independent third-party broker or dealer price quotes. The fair value of other equity securities is determined using quoted market prices. Investments in Equity Method Investees consist of equity investments in entities, including sponsored funds, 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 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 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 equity investments in fund products and other entities over which the Company is unable to exercise significant influence and are not marketable, time deposits with maturities greater than three months from the date of purchase, and life settlement contracts. The equity investments are accounted for under the cost method. The fair value of fund products is estimated using NAV as a practical expedient. The fair value of other entities is generally estimated using significant unobservable inputs in either a market-based or income-based approach. The time deposits are carried at cost, which approximates fair value due to their short-term nature and liquidity. Life settlement contracts are carried at fair value, which is determined based on discounted cash flows using significant unobservable inputs. 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. The evaluation of equity securities includes 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 of 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 related to credit loss, which is the difference between the security ’ s amortized cost and the present value of its expected cash flows, is recognized in earnings with the remaining loss recognized in accumulated other comprehensive income (loss). Cash and Cash Equivalents of CIPs consist of highly liquid investments, including money market funds, which are readily convertible into cash, and deposits with financial institutions, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value. Receivables of CIPs consist of investment and share transaction related receivables and are carried at transacted amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value. Investments of CIPs 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 trading securities is determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. 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 debt and equity securities are determined using significant unobservable inputs in either a market-based or income-based approach. The fair value of fund products is estimated using NAV as a practical expedient. Property and Equipment, net are recorded at cost and 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 shorter of the estimated useful lives of the software or the license terms, 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 acquired in business acquisitions. These intangible assets are amortized over their estimated useful lives, which range from three 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 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 an 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. The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate, effective tax rate and 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 an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about AUM growth, average effective fee rates, the pre-tax profit margin and expected useful lives. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset’s fair value, as determined by discounted cash flows or other methods as appropriate for the asset type. Impairment is recognized in general, administrative and other expense. Deferred Sales Commissions consist of up-front commissions paid to financial advisers and broker-dealers on shares of sponsored funds 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. Debt consists of senior notes which are carried at amortized cost. The fair value is 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. Debt of CIPs is carried at amortized cost. 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. 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 the net present value of anticipated future cash flows based on estimated future revenue and profits and timing of payments. Noncontrolling Interests relate almost entirely to CIPs. 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 CIPs 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 sponsored funds 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 based on factors such as AUM, transactions, and shareholder accounts established in the related service contracts. AUM is generally based on the fair value of the underlying securities held by the Company’s investment products 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 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 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 conditions will be achieved. The probability of achievement is assessed on a quarterly basis. Forfeitures are accounted for as they occur. 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 at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest on tax matters is recognized in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the U.S. and generates earnings from its non-U.S. subsidiaries. Prior to enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017, the Company indefinitely reinvested the undistributed earnings of all its non-U.S. subsidiaries, except for income previously taxed in the U.S. or subject to regulatory or legal repatriation restrictions or requirements. Effective January 1, 2018, the Company intends to repatriate the earnings in excess of regulatory, capital or operational requirements of substantially all of its non-U.S. subsidiaries. Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries for which the 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, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Guidance On October 1, 2017, the Company adopted an amendment to the stock-based compensation guidance issued by the Financial Accounting Standards Board (“FASB”). The amendment requires all income tax effects of stock-based awards to be recognized as income tax expense when the awards vest or settle and clarifies the classification of these transactions within the statement of cash flows. The amendment also provides an election to account for forfeitures as they occur, which the Company made using the modified retrospective approach which did not require the restatement of prior-year periods and did not result in a material impact on retained earnings. The income tax effect and statement of cash flow changes were adopted on a prospective basis. The adoption of the amendment will increase the volatility of income tax expense as a result of fluctuations in the Company’s stock price. Accounting Guidance Not Yet Adopted 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 also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The Company’s adoption of the guidance on October 1, 2018 will not have a significant impact on the timing of recognition or presentation for substantially all of its operating revenue or the accounting for its contract costs. The Company will elect the modified retrospective approach and recognize a cumulative effect adjustment resulting in decreases of approximately $9 million in total assets and retained earnings at adoption. 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 earnings, except for those accounted for using the equity method of accounting, which will impact all equity securities currently classified as available-for-sale and investments in fund products for which fair value is estimated using NAV as a practical expedient. The amendment also provides an election to measure equity investments that do not have a readily determinable fair value at cost adjusted for observable price changes and impairment, if any, which the Company will make. The Company will adopt the amendment on October 1, 2018 and recognize a cumulative effect adjustment resulting in increases in investments, retained earnings and other comprehensive loss of approximately $22 million , $30 million and $8 million . 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 also requires an evaluation at the inception of a contract to determine whether the contract is or contains a lease. The guidance is effective for the Company on October 1, 2019 and requires a cumulative effect adjustment to retained earnings either on the date of adoption or at the beginning of the earliest period presented. The Company is currently evaluating the impact of adopting the guidance and has not yet determined its transition approach. 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, including receivables, 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, 2018 | |
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, 2018 2017 2016 Net income attributable to Franklin Resources, Inc. $ 764.4 $ 1,696.7 $ 1,726.7 Less: allocation of earnings to participating nonvested stock and stock unit awards 17.6 12.4 10.9 Net Income Available to Common Stockholders $ 746.8 $ 1,684.3 $ 1,715.8 Weighted-average shares outstanding – basic 537.4 558.8 583.8 Dilutive effect of nonparticipating nonvested stock unit awards 0.6 0.3 — Weighted-Average Shares Outstanding – Diluted 538.0 559.1 583.8 Earnings per Share Basic $ 1.39 $ 3.01 $ 2.94 Diluted 1.39 3.01 2.94 Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.3 million for fiscal year 2018 , 0.7 million for the fiscal year ended September 30, 2017 (“fiscal year 2017 ”), and 1.3 million for the fiscal year ended September 30, 2016 (“fiscal year 2016 ”). |
Investments
Investments | 12 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | Investments The disclosures below include details of the Company’s investments, excluding those of CIPs. See Note 9 – Consolidated Investment Products for information related to the investments held by these entities. Investments consisted of the following: (in millions) as of September 30, 2018 2017 Investment securities, trading Sponsored funds $ 248.1 $ 31.1 Debt and other equity securities 97.6 283.4 Total investment securities, trading 345.7 314.5 Investment securities, available-for-sale Sponsored funds 178.6 110.8 Debt and other equity securities 15.5 1.9 Total investment securities, available-for-sale 194.1 112.7 Investments in equity method investees 780.8 893.5 Other investments 105.9 72.9 Total $ 1,426.5 $ 1,393.6 Debt and other equity trading securities consist primarily of corporate debt. Investment securities with aggregate carrying amounts of $1.2 million and $0.8 million were pledged as collateral at September 30, 2018 and 2017 . Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows: Gross Unrealized (in millions) Cost Basis Gains Losses Fair Value as of September 30, 2018 Sponsored funds $ 172.9 $ 8.3 $ (2.6 ) $ 178.6 Debt and other equity securities 16.8 0.5 (1.8 ) 15.5 Total $ 189.7 $ 8.8 $ (4.4 ) $ 194.1 as of September 30, 2017 Sponsored funds $ 107.9 $ 9.4 $ (6.5 ) $ 110.8 Debt and other equity securities 1.9 — — 1.9 Total $ 109.8 $ 9.4 $ (6.5 ) $ 112.7 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 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) as of September 30, 2018 Sponsored funds $ 48.8 $ (2.1 ) $ 21.0 $ (0.5 ) $ 69.8 $ (2.6 ) Debt and other equity securities 10.9 (1.8 ) — — 10.9 (1.8 ) Total $ 59.7 $ (3.9 ) $ 21.0 $ (0.5 ) $ 80.7 $ (4.4 ) as of September 30, 2017 Sponsored funds $ 28.4 $ (6.3 ) $ 2.4 $ (0.2 ) $ 30.8 $ (6.5 ) The Company recognized other-than-temporary impairment of $1.7 million , $0.8 million and $11.1 million during fiscal years 2018 , 2017 and 2016 , of which $5.8 million in fiscal year 2016 related to available-for-sale sponsored funds. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2018 | |
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 CIPs. See Note 9 – Consolidated Investment Products for information related to fair value measurements of the assets and liabilities of these entities. The assets and liability measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2018 Assets Investment securities, trading Sponsored funds $ 248.1 $ — $ — $ 248.1 Debt and other equity securities 26.6 50.5 20.5 97.6 Investment securities, available-for-sale Sponsored funds 178.6 — — 178.6 Debt and other equity securities 4.4 10.8 0.3 15.5 Life settlement contracts — — 11.8 11.8 Total Assets Measured at Fair Value $ 457.7 $ 61.3 $ 32.6 $ 551.6 Liability Contingent consideration liability $ — $ — $ 38.7 $ 38.7 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2017 Assets Investment securities, trading Sponsored funds $ 31.1 $ — $ — $ 31.1 Debt and other equity securities 18.2 78.4 186.8 283.4 Investment securities, available-for-sale Sponsored funds 110.8 — — 110.8 Debt and other equity securities 1.0 0.6 0.3 1.9 Life settlement contracts — — 12.8 12.8 Total Assets Measured at Fair Value $ 161.1 $ 79.0 $ 199.9 $ 440.0 Liability Contingent consideration liability $ — $ — $ 51.0 $ 51.0 Changes in Level 3 assets and liabilities were as follows: 2018 2017 (in millions) Investments Contingent Consideration Liability Investments Contingent Consideration Liabilities for the fiscal years ended September 30, Balance at beginning of year $ 199.9 $ (51.0 ) $ 205.1 $ (98.1 ) Acquisition — — — (5.7 ) Total realized and unrealized gains (losses) Included in investment and other income, net 4.5 — 8.5 — Included in general, administrative and other expense — (13.1 ) — 13.8 Purchases 14.5 — 5.4 — Sales (2.6 ) — (17.7 ) — Settlements (174.0 ) 32.4 (4.8 ) 39.0 Transfers out of Level 3 — — (0.4 ) — Foreign exchange revaluation and other (9.7 ) (7.0 ) 3.8 — Balance at End of Year $ 32.6 $ (38.7 ) $ 199.9 $ (51.0 ) Change in unrealized gains (losses) included in net income relating to assets and liability held at end of year $ 2.1 $ (13.1 ) $ 6.0 $ 8.1 There were no transfers into or out of Level 3 during fiscal year 2018 . There were no transfers into Level 3 during fiscal year 2017 . Valuation techniques and significant unobservable inputs used in the Level 3 fair value measurements were as follows: (in millions) as of September 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 20.5 Discounted cash flow Discount rate 4.1%–12.3% (5.8%) Risk premium 2.0%–6.7% (3.6%) Life settlement contracts 11.8 Discounted cash flow Life expectancy 20–115 months (61) Discount rate 8.0%–20.0% (13.1%) Contingent consideration liability 38.7 Discounted cash flow Discount rate 13.0% (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 175.7 Market pricing Redemption price $73 per $100 of par Discount rate 18.6% 11.1 Discounted cash flow Discount rate 4.1%–6.7% (5.7%) Risk premium 2.0%–4.1% (2.9%) Life settlement contracts 12.8 Discounted cash flow Life expectancy 20–123 months (62) Discount rate 8.0%–20.0% (13.2%) Contingent consideration liability 51.0 Discounted cash flow AUM growth rate 1.3%–9.4% (5.3%) Discount rate 14.6% For investment securities, trading – debt and other equity securities using the discounted cash flow technique, a significant increase (decrease) in the discount rate or risk premium 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 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) 2018 2017 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 6,610.8 $ 6,610.8 $ 8,523.3 $ 8,523.3 Other investments Time deposits 2 12.3 12.3 13.4 13.4 Cost method investments 3 81.8 103.6 46.7 67.7 Financial Liability Debt 2 $ 695.9 $ 671.1 $ 1,044.2 $ 1,073.5 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Furniture, software and equipment $ 798.6 $ 804.7 3 – 10 Premises and leasehold improvements 628.1 580.9 5 – 35 Land 74.1 74.2 N/A Total cost 1,500.8 1,459.8 Less: accumulated depreciation and amortization (965.8 ) (942.6 ) Property and Equipment, Net $ 535.0 $ 517.2 Depreciation and amortization expense related to property and equipment was $78.9 million , $81.5 million and $81.0 million in fiscal years 2018 , 2017 and 2016 . The Company recognized $6.6 million of equipment impairment during fiscal year 2018 and insignificant impairment amounts during fiscal years 2017 and 2016 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Goodwill $ 1,794.8 $ 1,687.2 Indefinite-lived intangible assets 530.7 534.0 Definite-lived intangible assets, net 7.9 6.5 Goodwill and Other Intangible Assets, Net $ 2,333.4 $ 2,227.7 Changes in the carrying value of goodwill were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 Balance at beginning of year $ 1,687.2 $ 1,661.2 Acquisitions 117.4 18.8 Foreign exchange revaluation and other (9.8 ) 7.2 Balance at End of Year $ 1,794.8 $ 1,687.2 Indefinite-lived intangible assets consist of management contracts. No impairment of goodwill or indefinite-lived intangible assets was recognized during fiscal years 2018 , 2017 and 2016 . Definite-lived intangible assets were as follows: 2018 2017 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value as of September 30, Management contracts $ 54.9 $ (47.0 ) $ 7.9 $ 52.4 $ (45.9 ) $ 6.5 Amortization expense related to definite-lived intangible assets was $1.8 million , $3.9 million and $10.4 million for fiscal years 2018 , 2017 and 2016 . The Company recognized impairment of management contract definite-lived intangible assets of $5.7 million , $9.6 million and $28.2 million during fiscal years 2018 , 2017 and 2016 . The impairments were primarily related to assets from the K2 acquisition and resulted from increased investor redemptions; lower estimates of future sales and renegotiations of certain investment management fees were also a factor in fiscal year 2016. Definite-lived intangible assets had a weighted-average remaining useful life of 2.8 years at September 30, 2018 , with estimated remaining amortization expense as follows: (in millions) for the fiscal years ending September 30, Amount 2019 $ 3.0 2020 3.0 2021 1.8 Thereafter 0.1 Total $ 7.9 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The disclosures below include details of the Company’s debt, excluding that of CIPs. See Note 9 – Consolidated Investment Products for information related to the debt of these entities. Debt consisted of the following: (in millions) 2018 Effective Interest Rate 2017 Effective Interest Rate as of September 30, Senior Notes $350 million 4.625% notes due May 2020 $ — N/A $ 349.9 4.74 % $300 million 2.800% notes due September 2022 299.7 2.93 % 299.6 2.93 % $400 million 2.850% notes due March 2025 399.6 2.97 % 399.5 2.97 % Total senior notes 699.3 1,049.0 Debt issuance costs (3.4 ) (4.8 ) Total $ 695.9 $ 1,044.2 At September 30, 2018 , the Company’s outstanding senior unsecured unsubordinated notes had an aggregate face value of $700.0 million . 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. On May 21, 2018 , the Company redeemed its outstanding 4.625% notes due in May 2020 at a make-whole redemption price of $361.9 million , which resulted in the recognition of $12.5 million of accelerated interest expense. The Company was in compliance with all debt covenants at September 30, 2018 . At September 30, 2018 , 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 . |
Consolidated Investment Product
Consolidated Investment Products | 12 Months Ended |
Sep. 30, 2018 | |
Consolidated Investment Products [Abstract] | |
Consolidated Investment Products | Consolidated Investment Products CIPs consist of mutual and other investment funds, limited partnerships and similar structures, substantially all of which are sponsored by the Company, and include both VOEs and VIEs. The Company had 53 and 58 CIPs as of September 30, 2018 and 2017 . The balances related to CIPs included in the Company’s consolidated balance sheets were as follows: (in millions) as of September 30, 2018 2017 Assets Cash and cash equivalents $ 299.8 $ 226.4 Receivables 114.2 234.1 Investments, at fair value 2,109.4 3,467.4 Other assets 1.0 0.9 Total Assets $ 2,524.4 $ 3,928.8 Liabilities Accounts payable and accrued expenses $ 68.0 $ 124.1 Debt 32.6 53.4 Other liabilities 9.3 8.7 Total liabilities 109.9 186.2 Redeemable Noncontrolling Interests 1,043.6 1,941.9 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,092.6 1,511.8 Nonredeemable noncontrolling interests 278.3 288.9 Total stockholders’ equity 1,370.9 1,800.7 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 2,524.4 $ 3,928.8 The CIPs did not have a significant impact on net income attributable to the Company in fiscal years 2018 , 2017 and 2016 . The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management fees earned from them. The debt holders of the CIPs 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 CIPs’ liabilities. Investment products are typically consolidated when the Company makes an initial investment in a newly launched investment entity. They are typically deconsolidated when the Company no longer has a controlling financial interest due to redemptions of its investment or increases in third-party investments. The Company’s investments in these products subsequent to deconsolidation are accounted for as trading or available-for-sale investment securities, or equity method or cost method investments depending on the structure of the product and the Company’s role and level of ownership. Investments Investments of CIPs consisted of the following: (in millions) as of September 30, 2018 2017 Investment securities, trading $ 1,651.8 $ 3,017.2 Other equity securities 311.0 306.9 Other debt securities 146.6 143.3 Total $ 2,109.4 $ 3,467.4 Investment securities, trading consist of debt and equity securities that are traded in active markets. Other equity securities consist of equity securities of entities in emerging markets and fund products. Other debt securities consist of debt securities of entities in emerging markets and other debt instruments. Fair Value Measurements Assets and liabilities of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2018 Assets Investments Equity securities $ 270.7 $ 154.8 $ 199.7 $ 113.8 $ 739.0 Debt securities 0.6 1,219.5 150.3 — 1,370.4 Total Assets Measured at Fair Value $ 271.3 $ 1,374.3 $ 350.0 $ 113.8 $ 2,109.4 Liabilities Other liabilities $ 0.6 $ 8.7 $ — $ — $ 9.3 (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2017 Assets Investments Equity securities $ 331.4 $ 128.1 $ 160.7 $ 155.2 $ 775.4 Debt securities 1.4 2,555.2 135.4 — 2,692.0 Total Assets Measured at Fair Value $ 332.8 $ 2,683.3 $ 296.1 $ 155.2 $ 3,467.4 Liabilities Other liabilities $ 0.4 $ 8.3 $ — $ — $ 8.7 The fair value of other liabilities, which consist of short positions in debt and equity securities, 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 are not available. There were no transfers into or out of Level 3 during fiscal years 2018 and 2017 . Investments for which fair value was estimated using reported NAV as a practical expedient consisted of nonredeemable real estate and private equity funds. These investments are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over a weighted-average period of 3.5 years and 4.4 years at September 30, 2018 and 2017 . The CIPs’ unfunded commitments to these funds totaled $1.9 million , of which the Company was contractually obligated to fund $0.4 million based on its ownership percentage in the CIPs, at both September 30, 2018 and 2017 . Changes in Level 3 assets were as follows: 2018 2017 (in millions) Equity Securities Debt Securities Total Level 3 Assets Equity Securities Debt Securities Total Level 3 Assets for the fiscal years ended September 30, Balance at beginning of year $ 160.7 $ 135.4 $ 296.1 $ 160.3 $ 132.3 $ 292.6 Adoption of new accounting guidance — — — (45.4 ) (0.5 ) (45.9 ) Realized and unrealized gains (losses) included in investment and other income, net 26.2 4.2 30.4 19.2 (0.3 ) 18.9 Purchases 32.0 42.2 74.2 30.4 24.7 55.1 Sales (17.5 ) (38.6 ) (56.1 ) (6.7 ) (22.3 ) (29.0 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (1.7 ) 0.6 (1.1 ) 2.9 2.1 5.0 Balance at End of Year $ 199.7 $ 150.3 $ 350.0 $ 160.7 $ 135.4 $ 296.1 Change in unrealized gains (losses) included in net income relating to assets held at end of year $ 17.3 $ 0.1 $ 17.4 $ 29.4 $ (0.9 ) $ 28.5 Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows: (in millions) as of September 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 171.9 Market comparable companies EBITDA multiple 5.0–13.6 (9.3) 27.8 Discounted cash flow Discount rate 8.0%–16.5% (14.1%) Debt securities 78.7 Discounted cash flow Discount rate 7.0%–14.8% (10.8%) 33.9 Comparable trading multiple Price-to-earnings ratio 10.0 Enterprise value/ EBITDA multiple 20.9 32.3 Discounted cash flow Loss-adjusted discount rate 3.0%–22.7% (12.0%) 5.4 Market pricing Private sale pricing $42 per $100 of par (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 101.9 Market comparable companies EBITDA multiple 5.5–12.3 (9.0) 44.4 Discounted cash flow Discount rate 5.7%–17.9% (14.3%) 14.4 Market pricing Price-to-earnings ratio 10.0 Debt securities 112.7 Discounted cash flow Discount rate 5.0%–33.0% (9.5%) Risk premium 0.0%–25.0% (8.4%) 22.7 Market pricing Private sale pricing $33–$57 ($52) per $100 of par For securities using 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. For securities using the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate or loss-adjusted discount rate in isolation would result in a significantly lower (higher) fair value measurement. For securities using the comparable trading multiple valuation technique, a significant increase (decrease) in the price-to-earnings ratio or enterprise value/EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. For securities using the market pricing valuation technique, a significant increase (decrease) in the private sale pricing in isolation would result in a significantly higher (lower) fair value measurement. Financial instruments of CIPs that were not measured at fair value were as follows: (in millions) 2018 2017 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Asset Cash and cash equivalents 1 $ 299.8 $ 299.8 $ 226.4 $ 226.4 Financial Liability Debt 3 $ 32.6 $ 32.4 $ 53.4 $ 53.1 Debt Debt of CIPs totaled $32.6 million and $53.4 million at September 30, 2018 and 2017 . The debt had fixed and floating interest rates ranging from 3.07% to 7.88% with a weighted-average effective interest rate of 6.79% at September 30, 2018 , and from 2.84% to 6.75% with a weighted-average effective interest rate of 5.15% at September 30, 2017 . The debt carried at September 30, 2018 matures in fiscal year 2019 . Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests of CIPs were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 2016 Balance at beginning of year $ 1,941.9 $ 61.1 $ 59.6 Adoption of new accounting guidance — 824.7 — Net income (loss) (12.8 ) 53.0 1.6 Net subscriptions and other 170.9 884.3 79.9 Net consolidations (deconsolidations) (1,056.4 ) 118.8 (80.0 ) Balance at End of Year $ 1,043.6 $ 1,941.9 $ 61.1 |
Nonconsolidated Variable Intere
Nonconsolidated Variable Interest Entities | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nonconsolidated Variable Interest Entities | Nonconsolidated Variable Interest Entities VIEs for which the Company is not the primary beneficiary consist of sponsored funds and other investment products in which the Company has an equity ownership interest. The Company’s maximum exposure to loss from these VIEs consists of equity investments and investment management fee receivables as follows: (in millions) as of September 30, 2018 2017 Investments $ 161.8 $ 129.3 Receivables 140.1 155.6 Total $ 301.9 $ 284.9 While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. The Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives. In July 2018 , the Company purchased $32.6 million of certain equity and debt securities from two sponsored funds. The Company did not provide financial or other support to its sponsored funds during fiscal year 2017 . |
Taxes on Income
Taxes on Income | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The Tax Act, which was enacted into law in the U.S. on December 22, 2017, includes various changes to the tax law, including a permanent reduction in the federal corporate income tax rate and assessment of a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries’ earnings. The Company’s transition tax expense was estimated to be $983.2 million as of September 30, 2018 and may be adjusted in the future upon issuance of additional technical guidance, legislative updates from states on tax reform, and the completion of the Company’s tax return filings for fiscal years 2017 and 2018 . The estimate includes an $87.6 million tax benefit recognized in the fourth quarter of fiscal year 2018 related to U.S. taxation of deemed foreign dividends in the transition fiscal year. This benefit may be reduced or eliminated by future regulation or legislation. The federal portion of the transition tax liability, estimated to be $965.3 million , will be paid over eight years beginning in January 2019, with 8% of the liability payable in each of the first five years, 15% in year six, 20% in year seven and 25% in year eight. The Tax Act reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018 . The Company’s federal statutory rate for fiscal year 2018 is a blended rate of 24.5% , based on the pre- and post-Tax Act rates, and will be 21% for future fiscal years. The estimated related changes in the Company’s deferred tax assets and deferred tax liabilities resulted in a $35.6 million decrease in deferred tax assets, an $88.9 million decrease in deferred tax liabilities and a $53.3 million net tax benefit in fiscal year 2018 . The Company also reclassified $0.1 million from accumulated other comprehensive loss to retained earnings related to stranded tax effects resulting from the change in tax rate during fiscal year 2018 . As of September 30, 2018 , the Company completed its analysis of the Tax Act impact except for the transition tax, which is expected to be completed within one year of the Tax Act enactment date. Prior to the Tax Act, the Company had not provided for U.S. income taxes on undistributed earnings and other outside basis differences of its non-U.S. subsidiaries as it was the Company’s intention for these tax basis differences to remain indefinitely reinvested. Following the Company’s change in policy effective January 1, 2018 to repatriate earnings of substantially all non-U.S. subsidiaries, other outside basis differences, which arose primarily from purchase accounting adjustments, undistributed earnings that are considered indefinitely reinvested and foreign earnings that are restricted by operational and regulatory requirements, remain indefinitely reinvested. These basis differences could reverse through sales of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable as of September 30, 2018 . The Company has made no provision for U.S. income taxes on these outside basis differences, and determination of the amount of unrecognized deferred tax liability related to such basis differences is not practicable. Taxes on income were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 2016 Current expense Federal $ 1,343.7 $ 585.0 $ 582.8 State 38.0 65.3 47.5 Non-U.S. 141.1 100.2 102.8 Deferred expense (benefit) (50.3 ) 8.9 9.0 Total $ 1,472.5 $ 759.4 $ 742.1 The tax benefits from the utilization of net operating loss carry-forwards were insignificant in fiscal years 2018 , 2017 and 2016 . The Company had tax shortfalls of $8.7 million and $5.9 million in fiscal years 2017 and 2016 associated with stock-based compensation plans, which increased the amount of income taxes that would have otherwise been payable and were reflected as components of stockholders ’ equity. In accordance with new accounting guidance adopted on October 1, 2017, the income tax effects of stock-based awards were recognized in income tax expense in fiscal year 2018 . See Note 2 – New Accounting Guidance in these notes to consolidated financial statements. Income before taxes consisted of the following: (in millions) for the fiscal years ended September 30, 2018 2017 2016 U.S. $ 1,458.1 $ 1,594.5 $ 1,641.7 Non-U.S. 757.1 954.6 858.1 Total $ 2,215.2 $ 2,549.1 $ 2,499.8 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 $31.3 million or $0.06 per diluted share for fiscal year 2018 , $28.8 million or $0.05 per diluted share for fiscal year 2017 , and $34.2 million or $0.06 per diluted share for fiscal year 2016 . 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, 2018 2017 Deferred Tax Assets Deferred compensation and employee benefits $ 33.1 $ 60.2 Stock-based compensation 21.9 36.1 Net operating loss carry-forwards 31.8 28.4 Tax benefit for uncertain tax positions 10.0 17.9 Other 18.7 23.9 Total deferred tax assets 115.5 166.5 Valuation allowance (27.5 ) (25.2 ) Deferred tax assets, net of valuation allowance 88.0 141.3 Deferred Tax Liabilities Goodwill and other purchased intangibles 142.2 205.2 Depreciation on fixed assets 20.9 35.3 Investments in partnerships 16.4 26.0 Deferred commissions 9.0 15.0 Other 8.7 14.6 Total deferred tax liabilities 197.2 296.1 Net Deferred Tax Liability $ 109.2 $ 154.8 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, 2018 2017 Other assets $ 17.3 $ 15.8 Deferred tax liabilities 126.5 170.6 Net Deferred Tax Liability $ 109.2 $ 154.8 At September 30, 2018 , there were $153.2 million of non-U.S. net operating loss carry-forwards, $78.2 million of which expire between fiscal years 2019 and 2038 with the remaining carry-forwards having an indefinite life. In addition, there were $32.3 million in state net operating loss carry-forwards that expire between fiscal years 2020 and 2038 . 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 increased $2.3 million in fiscal year 2018 and $0.6 million in fiscal year 2017 . 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, 2018 2017 2016 Federal taxes at statutory rate $ 542.7 24.5 % $ 892.2 35.0 % $ 874.9 35.0 % Transition tax on deemed repatriation of undistributed foreign earnings 983.2 44.4 % — — — — Revaluation of net deferred tax liabilities (53.3 ) (2.4 %) — — — — Other Tax Act impacts 38.9 1.8 % — — — — State taxes, net of federal tax effect 16.6 0.7 % 41.4 1.6 % 42.7 1.7 % Effect of non-U.S. operations (61.9 ) (2.8 %) (146.2 ) (5.7 %) (153.0 ) (6.1 %) Effect of net (income) loss attributable to noncontrolling interests 5.3 0.2 % (32.6 ) (1.3 %) (10.9 ) (0.4 %) Other 1.0 0.1 % 4.6 0.2 % (11.6 ) (0.5 %) Tax Provision $ 1,472.5 66.5 % $ 759.4 29.8 % $ 742.1 29.7 % Other Tax Act impacts consist primarily of foreign dividend distribution taxes and tax withholdings. 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, 2018 2017 2016 Balance at beginning of year $ 81.1 $ 82.1 $ 105.2 Additions for tax positions of prior years 3.6 6.6 0.6 Reductions for tax positions of prior years (6.6 ) (1.3 ) (9.0 ) Tax positions related to the current year 11.6 11.6 12.9 Settlements with taxing authorities — (5.2 ) (5.4 ) Expirations of statute of limitations (12.2 ) (12.7 ) (22.2 ) Balance at End of Year $ 77.5 $ 81.1 $ 82.1 If recognized, 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, 2018 and 2017 was $11.3 million and $10.4 million , and is not presented in the unrecognized tax benefits table above. Interest expense (benefit) of $0.9 million , $1.6 million and $(1.3) million was recognized during fiscal years 2018 , 2017 and 2016 . Accrued penalties at September 30, 2018 and 2017 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 2018 ; Canada 2011 to 2018 ; Hong Kong 2012 to 2018 ; Singapore 2013 to 2018 ; Luxembourg 2014 to 2018 ; the U.K. 2017 and 2018 ; U.S. federal 2015 to 2018 ; the State of Florida 2013 to 2018 ; the States of California, Massachusetts, Minnesota and New York, and City of New York 2015 to 2018 . The Company has ongoing examinations in various stages of completion in the States of Florida and Pennsylvania and City of New York, and in Canada, Germany, Hong Kong, India and Switzerland. 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, 2018 could decrease by an estimated $16.4 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In July 2016, a former employee filed a class action lawsuit captioned Cryer v. Franklin Resources, Inc., et al. in the United States District Court for the Northern District of California against Franklin, the Franklin Templeton 401(k) Retirement Plan (“Plan”) Investment Committee (“Investment Committee”), and unnamed Investment Committee members. The plaintiff asserts a claim for breach of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”), 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 $79.0 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. On November 2, 2017, a second former employee, represented by the same law firm, filed another class action lawsuit relating to the Plan in the same court, captioned Fernandez v. Franklin Resources, Inc., et al. The plaintiff filed an amended complaint on February 6, 2018, naming the same defendants as those named in the Cryer action, as well as the Franklin Board of Directors, the Plan Administrative Committee, individual current and former Franklin directors, and individual current and former Investment Committee members. The plaintiff in this second lawsuit asserts the same ERISA breach of fiduciary duty claim asserted in the Cryer action, as well as claims for alleged prohibited transactions by virtue of the Plan ’ s investments in the Funds and for an alleged failure to monitor the performance of the Investment Committee. The plaintiff alleges that Plan losses exceed $60.0 million and seeks the same relief sought in the Cryer action. On April 6, 2018, the court consolidated the Fernandez action with the existing Cryer action. Management strongly believes that the claims asserted in the litigation are without merit and Franklin is defending against the consolidated action vigorously. Franklin cannot at this time predict the eventual outcome of the litigation or whether it will have a material negative impact on the Company, or reasonably estimate the possible loss or range of loss that may arise from any negative outcome. 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, 2018 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 $55.9 million , $56.3 million and $69.3 million in fiscal years 2018 , 2017 and 2016 . Sublease income totaled $0.2 million , $0.4 million and $1.6 million in fiscal years 2018 , 2017 and 2016 . Future minimum lease payments under long-term non-cancelable operating leases were as follows as of September 30, 2018 : (in millions) for the fiscal years ending September 30, Amount 2019 $ 46.6 2020 42.2 2021 37.8 2022 33.1 2023 32.6 Thereafter 175.1 Total Minimum Lease Payments $ 367.4 Future minimum rentals to be received under non-cancelable subleases totaled $0.2 million at September 30, 2018 . While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. At September 30, 2018 , the Company had $299.0 million of committed capital contributions which relate to discretionary commitments to invest in sponsored funds and other investment products and entities. These unfunded commitments are not recorded in the Company ’ s consolidated balance sheet. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Stock and stock unit awards $ 111.6 $ 117.0 $ 125.3 Employee stock investment plan 6.2 6.4 6.2 Total $ 117.8 $ 123.4 $ 131.5 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 18.4 million shares were available for grant at September 30, 2018 . Stock awards entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards entitle holders to receive the underlying shares of common stock once the awards vest. Awards vest based on the passage of time or the achievement of predetermined Company financial performance goals. 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, 2018 Nonvested balance at September 30, 2017 2,783 1,761 4,544 $ 37.23 Granted 2,271 724 2,995 42.63 Vested (2,126 ) (516 ) (2,642 ) 39.18 Forfeited/canceled (250 ) (156 ) (406 ) 43.84 Nonvested balance at September 30, 2018 2,678 1,813 4,491 $ 39.08 Total unrecognized compensation expense related to nonvested stock and stock unit awards was $120.2 million at September 30, 2018 . 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 2018 , 2017 and 2016 were $42.63 , $34.23 and $40.88 per share. The total fair value of stock and stock unit awards vested during the same periods was $91.5 million , $104.0 million and $92.8 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. 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 2018 , and 2.8 million shares were reserved for future issuance at September 30, 2018 . |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans The Company sponsors a 401(k) plan which 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 employees and to comply with local regulatory requirements. The total expenses recognized for defined contribution plans were $49.8 million , $45.5 million and $46.8 million for fiscal years 2018 , 2017 and 2016 . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Operating Revenues United States $ 3,722.1 $ 3,898.4 $ 4,063.6 Luxembourg 1,730.6 1,652.8 1,707.9 Asia-Pacific 297.4 281.0 267.9 Canada 250.3 260.8 273.8 The Bahamas 208.1 205.9 204.6 Europe, Middle East and Africa, excluding Luxembourg 97.0 83.2 94.0 Latin America 13.6 10.1 6.2 Total $ 6,319.1 $ 6,392.2 $ 6,618.0 (in millions) as of September 30, 2018 2017 2016 Property and Equipment, Net United States $ 465.4 $ 426.1 $ 428.0 Asia-Pacific 42.1 60.2 62.9 The Bahamas 12.8 13.4 14.3 Europe, Middle East and Africa 10.1 12.2 14.9 Canada 3.7 5.3 3.1 Latin America 0.9 — — Total $ 535.0 $ 517.2 $ 523.2 Operating revenues are generally allocated to geographic areas based on the location of the subsidiary providing services. |
Other Income (Expenses)
Other Income (Expenses) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Investment and Other Income, Net Interest income $ 76.5 $ 74.9 $ 36.5 Dividend income 51.1 13.9 20.6 Gains on trading investment securities, net 1.1 12.2 50.1 Realized gains on sale of investment securities, available-for-sale 4.2 5.6 32.1 Realized losses on sale of investment securities, available-for-sale (1.2 ) (1.6 ) (3.2 ) Income from investments in equity method investees 44.4 107.9 56.7 Other-than-temporary impairment of investments (1.7 ) (0.8 ) (11.1 ) Gains (losses) on investments of CIPs, net (55.0 ) 118.2 (13.5 ) Foreign currency exchange gains (losses), net 0.6 (16.0 ) (2.9 ) Rental income 15.9 11.1 11.0 Other, net 9.4 10.9 7.7 Total 145.3 336.3 184.0 Interest Expense (48.7 ) (51.5 ) (49.9 ) Other Income, Net $ 96.6 $ 284.8 $ 134.1 Interest income was primarily generated by cash equivalents and trading investment securities. Substantially all of the dividend income and realized gains and losses on sale of available-for-sale securities were generated by investments in nonconsolidated funds. Proceeds from the sale of available-for-sale securities were $85.5 million , $51.6 million and $269.4 million for fiscal years 2018 , 2017 and 2016 . Net gains (losses) recognized on the Company ’ s trading investment securities that were held at September 30, 2018 , 2017 and 2016 were $(1.7) million , $5.0 million and $27.9 million . Net gains (losses) recognized on trading investment securities of CIPs that were held at September 30, 2018 , 2017 and 2016 were $(24.5) million , $21.9 million and $9.4 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2018 | |
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 Total for the fiscal year ended September 30, 2018 Balance at October 1, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) Adoption of new accounting guidance — — (0.1 ) (0.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 7.3 (85.5 ) 1.5 (76.7 ) Reclassifications to net investment and other income, net of tax (3.0 ) (6.4 ) 0.4 (9.0 ) Total other comprehensive income (loss) 4.3 (91.9 ) 1.9 (85.7 ) Balance at September 30, 2018 $ 6.5 $ (372.9 ) $ (4.2 ) $ (370.6 ) (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2017 Balance at October 1, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) Adoption of new accounting guidance (6.8 ) (0.3 ) — (7.1 ) Other comprehensive income Other comprehensive income before reclassifications, net of tax 6.5 65.4 2.1 74.0 Reclassifications to net investment and other income, net of tax (4.3 ) — — (4.3 ) Total other comprehensive income 2.2 65.4 2.1 69.7 Balance at September 30, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 24, 2018 , the Company entered into an agreement to acquire all of the outstanding ownership interests in Benefit Street Partners L.L.C., a U.S. alternative credit manager, for a purchase consideration of approximately $683 million in cash, of which $130 million will be used to retire debt. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
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 investment products which include sponsored funds, as well as institutional and high net-worth separate accounts. In addition to investment management, the Company ’ s services include fund administration, sales, distribution, marketing, shareholder servicing and other 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, 2018 (“fiscal year 2018 ”). |
Consolidation | Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and consolidated investment products (“CIPs”) 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 a voting interest entity (“VOE”) or is the primary beneficiary of a variable interest entity (“VIE”). 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 do not have defined rights and obligations normally associated with an equity investment. Substantially all of the Company ’ s VIEs are investment products, and its variable interests consist of its equity ownership interests in and investment management fees earned from these products. The Company is the primary beneficiary of a VIE 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. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”) and the life of the investment product. |
Related Parties | Related Parties include sponsored funds and equity method investees. A substantial amount of the Company ’ s operating revenues and receivables are 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 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. Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities, which may include published net asset values (“NAV”) for fund products. 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. Quoted market prices may be adjusted if events occur, such as significant price changes in proxies traded in relevant markets after the close of corresponding markets, trade halts or suspensions, or unscheduled market closures. These 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. A substantial amount of the Company’s investments are recorded at fair value or amounts that approximate fair value on a recurring basis. Investments in fund products for which fair value is estimated using NAV as a practical expedient (when the NAV is available to the Company as an investor but is not publicly available) are not classified in the fair value hierarchy. 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 nonconsolidated sponsored money market funds and deposits with financial institutions. At September 30, 2017, cash and cash equivalents also included debt instruments and time deposits with original maturities of three months or less at the purchase date. 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, their carrying values approximate fair value. 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 investment products and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values 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 of nonconsolidated sponsored funds, 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 values of all funds and certain other equity securities are determined based on their published NAV. The fair values of debt and certain other equity securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. At September 30, 2017, investment securities, trading also included corporate debt securities for which the fair value was determined using market pricing. Investment Securities, Available-for-Sale consist primarily of nonconsolidated sponsored funds 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 funds is determined based on their published NAV. The fair value of debt securities is primarily determined using independent third-party broker or dealer price quotes. The fair value of other equity securities is determined using quoted market prices. Investments in Equity Method Investees consist of equity investments in entities, including sponsored funds, 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 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 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 equity investments in fund products and other entities over which the Company is unable to exercise significant influence and are not marketable, time deposits with maturities greater than three months from the date of purchase, and life settlement contracts. The equity investments are accounted for under the cost method. The fair value of fund products is estimated using NAV as a practical expedient. The fair value of other entities is generally estimated using significant unobservable inputs in either a market-based or income-based approach. The time deposits are carried at cost, which approximates fair value due to their short-term nature and liquidity. Life settlement contracts are carried at fair value, which is determined based on discounted cash flows using significant unobservable inputs. 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. The evaluation of equity securities includes 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 of 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 related to credit loss, which is the difference between the security ’ s amortized cost and the present value of its expected cash flows, is recognized in earnings with the remaining loss recognized in accumulated other comprehensive income (loss). |
Cash and Cash Equivalents of CIPs | Cash and Cash Equivalents of CIPs consist of highly liquid investments, including money market funds, which are readily convertible into cash, and deposits with financial institutions, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value. |
Receivables of CIPs | Receivables of CIPs consist of investment and share transaction related receivables and are carried at transacted amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value. |
Investments of CIPs | Investments of CIPs 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 trading securities is determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. 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 debt and equity securities are determined using significant unobservable inputs in either a market-based or income-based approach. The fair value of fund products is estimated using NAV as a practical expedient. |
Property and Equipment, net | Property and Equipment, net are recorded at cost and 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 shorter of the estimated useful lives of the software or the license terms, 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 acquired in business acquisitions. These intangible assets are amortized over their estimated useful lives, which range from three 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 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 an 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. The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate, effective tax rate and 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 an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about AUM growth, average effective fee rates, the pre-tax profit margin and expected useful lives. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset’s fair value, as determined by discounted cash flows or other methods as appropriate for the asset type. Impairment is recognized in general, administrative and other expense. |
Deferred Sales Commissions | Deferred Sales Commissions consist of up-front commissions paid to financial advisers and broker-dealers on shares of sponsored funds 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. |
Debt | Debt consists of senior notes which are carried at amortized cost. The fair value is 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. |
Debt of CIPs | Debt of CIPs is carried at amortized cost. 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. |
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 the net present value of anticipated future cash flows based on estimated future revenue and profits and timing of payments. |
Noncontrolling Interests | Noncontrolling Interests relate almost entirely to CIPs. 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 CIPs 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 sponsored funds 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 based on factors such as AUM, transactions, and shareholder accounts established in the related service contracts. AUM is generally based on the fair value of the underlying securities held by the Company’s investment products 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 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 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 conditions will be achieved. The probability of achievement is assessed on a quarterly basis. Forfeitures are accounted for as they occur. |
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 at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest on tax matters is recognized in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the U.S. and generates earnings from its non-U.S. subsidiaries. Prior to enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in December 2017, the Company indefinitely reinvested the undistributed earnings of all its non-U.S. subsidiaries, except for income previously taxed in the U.S. or subject to regulatory or legal repatriation restrictions or requirements. Effective January 1, 2018, the Company intends to repatriate the earnings in excess of regulatory, capital or operational requirements of substantially all of its non-U.S. subsidiaries. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries for which the 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. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Net income attributable to Franklin Resources, Inc. $ 764.4 $ 1,696.7 $ 1,726.7 Less: allocation of earnings to participating nonvested stock and stock unit awards 17.6 12.4 10.9 Net Income Available to Common Stockholders $ 746.8 $ 1,684.3 $ 1,715.8 Weighted-average shares outstanding – basic 537.4 558.8 583.8 Dilutive effect of nonparticipating nonvested stock unit awards 0.6 0.3 — Weighted-Average Shares Outstanding – Diluted 538.0 559.1 583.8 Earnings per Share Basic $ 1.39 $ 3.01 $ 2.94 Diluted 1.39 3.01 2.94 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Summary of investments | Investments consisted of the following: (in millions) as of September 30, 2018 2017 Investment securities, trading Sponsored funds $ 248.1 $ 31.1 Debt and other equity securities 97.6 283.4 Total investment securities, trading 345.7 314.5 Investment securities, available-for-sale Sponsored funds 178.6 110.8 Debt and other equity securities 15.5 1.9 Total investment securities, available-for-sale 194.1 112.7 Investments in equity method investees 780.8 893.5 Other investments 105.9 72.9 Total $ 1,426.5 $ 1,393.6 |
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: Gross Unrealized (in millions) Cost Basis Gains Losses Fair Value as of September 30, 2018 Sponsored funds $ 172.9 $ 8.3 $ (2.6 ) $ 178.6 Debt and other equity securities 16.8 0.5 (1.8 ) 15.5 Total $ 189.7 $ 8.8 $ (4.4 ) $ 194.1 as of September 30, 2017 Sponsored funds $ 107.9 $ 9.4 $ (6.5 ) $ 110.8 Debt and other equity securities 1.9 — — 1.9 Total $ 109.8 $ 9.4 $ (6.5 ) $ 112.7 |
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 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) as of September 30, 2018 Sponsored funds $ 48.8 $ (2.1 ) $ 21.0 $ (0.5 ) $ 69.8 $ (2.6 ) Debt and other equity securities 10.9 (1.8 ) — — 10.9 (1.8 ) Total $ 59.7 $ (3.9 ) $ 21.0 $ (0.5 ) $ 80.7 $ (4.4 ) as of September 30, 2017 Sponsored funds $ 28.4 $ (6.3 ) $ 2.4 $ (0.2 ) $ 30.8 $ (6.5 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liability measured at fair value on a recurring basis | The assets and liability measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2018 Assets Investment securities, trading Sponsored funds $ 248.1 $ — $ — $ 248.1 Debt and other equity securities 26.6 50.5 20.5 97.6 Investment securities, available-for-sale Sponsored funds 178.6 — — 178.6 Debt and other equity securities 4.4 10.8 0.3 15.5 Life settlement contracts — — 11.8 11.8 Total Assets Measured at Fair Value $ 457.7 $ 61.3 $ 32.6 $ 551.6 Liability Contingent consideration liability $ — $ — $ 38.7 $ 38.7 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2017 Assets Investment securities, trading Sponsored funds $ 31.1 $ — $ — $ 31.1 Debt and other equity securities 18.2 78.4 186.8 283.4 Investment securities, available-for-sale Sponsored funds 110.8 — — 110.8 Debt and other equity securities 1.0 0.6 0.3 1.9 Life settlement contracts — — 12.8 12.8 Total Assets Measured at Fair Value $ 161.1 $ 79.0 $ 199.9 $ 440.0 Liability Contingent consideration liability $ — $ — $ 51.0 $ 51.0 |
Schedule of changes in Level 3 assets and liabilities | Changes in Level 3 assets and liabilities were as follows: 2018 2017 (in millions) Investments Contingent Consideration Liability Investments Contingent Consideration Liabilities for the fiscal years ended September 30, Balance at beginning of year $ 199.9 $ (51.0 ) $ 205.1 $ (98.1 ) Acquisition — — — (5.7 ) Total realized and unrealized gains (losses) Included in investment and other income, net 4.5 — 8.5 — Included in general, administrative and other expense — (13.1 ) — 13.8 Purchases 14.5 — 5.4 — Sales (2.6 ) — (17.7 ) — Settlements (174.0 ) 32.4 (4.8 ) 39.0 Transfers out of Level 3 — — (0.4 ) — Foreign exchange revaluation and other (9.7 ) (7.0 ) 3.8 — Balance at End of Year $ 32.6 $ (38.7 ) $ 199.9 $ (51.0 ) Change in unrealized gains (losses) included in net income relating to assets and liability held at end of year $ 2.1 $ (13.1 ) $ 6.0 $ 8.1 |
Schedule of valuation techniques and significant unobservable inputs used in Level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in the Level 3 fair value measurements were as follows: (in millions) as of September 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 20.5 Discounted cash flow Discount rate 4.1%–12.3% (5.8%) Risk premium 2.0%–6.7% (3.6%) Life settlement contracts 11.8 Discounted cash flow Life expectancy 20–115 months (61) Discount rate 8.0%–20.0% (13.1%) Contingent consideration liability 38.7 Discounted cash flow Discount rate 13.0% (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 175.7 Market pricing Redemption price $73 per $100 of par Discount rate 18.6% 11.1 Discounted cash flow Discount rate 4.1%–6.7% (5.7%) Risk premium 2.0%–4.1% (2.9%) Life settlement contracts 12.8 Discounted cash flow Life expectancy 20–123 months (62) Discount rate 8.0%–20.0% (13.2%) Contingent consideration liability 51.0 Discounted cash flow AUM growth rate 1.3%–9.4% (5.3%) Discount rate 14.6% |
Schedule of financial instruments not measured at fair value | Financial instruments that were not measured at fair value were as follows: (in millions) 2018 2017 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 6,610.8 $ 6,610.8 $ 8,523.3 $ 8,523.3 Other investments Time deposits 2 12.3 12.3 13.4 13.4 Cost method investments 3 81.8 103.6 46.7 67.7 Financial Liability Debt 2 $ 695.9 $ 671.1 $ 1,044.2 $ 1,073.5 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Furniture, software and equipment $ 798.6 $ 804.7 3 – 10 Premises and leasehold improvements 628.1 580.9 5 – 35 Land 74.1 74.2 N/A Total cost 1,500.8 1,459.8 Less: accumulated depreciation and amortization (965.8 ) (942.6 ) Property and Equipment, Net $ 535.0 $ 517.2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets, net consisted of the following: (in millions) as of September 30, 2018 2017 Goodwill $ 1,794.8 $ 1,687.2 Indefinite-lived intangible assets 530.7 534.0 Definite-lived intangible assets, net 7.9 6.5 Goodwill and Other Intangible Assets, Net $ 2,333.4 $ 2,227.7 |
Schedule of changes in carrying value of goodwill | Changes in the carrying value of goodwill were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 Balance at beginning of year $ 1,687.2 $ 1,661.2 Acquisitions 117.4 18.8 Foreign exchange revaluation and other (9.8 ) 7.2 Balance at End of Year $ 1,794.8 $ 1,687.2 |
Schedule of definite-lived intangible assets | Definite-lived intangible assets were as follows: 2018 2017 (in millions) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value as of September 30, Management contracts $ 54.9 $ (47.0 ) $ 7.9 $ 52.4 $ (45.9 ) $ 6.5 |
Schedule of estimated remaining amortization expense | Definite-lived intangible assets had a weighted-average remaining useful life of 2.8 years at September 30, 2018 , with estimated remaining amortization expense as follows: (in millions) for the fiscal years ending September 30, Amount 2019 $ 3.0 2020 3.0 2021 1.8 Thereafter 0.1 Total $ 7.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Debt consisted of the following: (in millions) 2018 Effective Interest Rate 2017 Effective Interest Rate as of September 30, Senior Notes $350 million 4.625% notes due May 2020 $ — N/A $ 349.9 4.74 % $300 million 2.800% notes due September 2022 299.7 2.93 % 299.6 2.93 % $400 million 2.850% notes due March 2025 399.6 2.97 % 399.5 2.97 % Total senior notes 699.3 1,049.0 Debt issuance costs (3.4 ) (4.8 ) Total $ 695.9 $ 1,044.2 |
Consolidated Investment Produ_2
Consolidated Investment Products (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Consolidated Investment Products [Abstract] | |
Schedule of balances of CIPs | The balances related to CIPs included in the Company’s consolidated balance sheets were as follows: (in millions) as of September 30, 2018 2017 Assets Cash and cash equivalents $ 299.8 $ 226.4 Receivables 114.2 234.1 Investments, at fair value 2,109.4 3,467.4 Other assets 1.0 0.9 Total Assets $ 2,524.4 $ 3,928.8 Liabilities Accounts payable and accrued expenses $ 68.0 $ 124.1 Debt 32.6 53.4 Other liabilities 9.3 8.7 Total liabilities 109.9 186.2 Redeemable Noncontrolling Interests 1,043.6 1,941.9 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,092.6 1,511.8 Nonredeemable noncontrolling interests 278.3 288.9 Total stockholders’ equity 1,370.9 1,800.7 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 2,524.4 $ 3,928.8 |
Schedule of investments of CIPs | Investments of CIPs consisted of the following: (in millions) as of September 30, 2018 2017 Investment securities, trading $ 1,651.8 $ 3,017.2 Other equity securities 311.0 306.9 Other debt securities 146.6 143.3 Total $ 2,109.4 $ 3,467.4 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2018 Assets Investments Equity securities $ 270.7 $ 154.8 $ 199.7 $ 113.8 $ 739.0 Debt securities 0.6 1,219.5 150.3 — 1,370.4 Total Assets Measured at Fair Value $ 271.3 $ 1,374.3 $ 350.0 $ 113.8 $ 2,109.4 Liabilities Other liabilities $ 0.6 $ 8.7 $ — $ — $ 9.3 (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2017 Assets Investments Equity securities $ 331.4 $ 128.1 $ 160.7 $ 155.2 $ 775.4 Debt securities 1.4 2,555.2 135.4 — 2,692.0 Total Assets Measured at Fair Value $ 332.8 $ 2,683.3 $ 296.1 $ 155.2 $ 3,467.4 Liabilities Other liabilities $ 0.4 $ 8.3 $ — $ — $ 8.7 |
Schedule of changes in Level 3 assets of CIPs | Changes in Level 3 assets were as follows: 2018 2017 (in millions) Equity Securities Debt Securities Total Level 3 Assets Equity Securities Debt Securities Total Level 3 Assets for the fiscal years ended September 30, Balance at beginning of year $ 160.7 $ 135.4 $ 296.1 $ 160.3 $ 132.3 $ 292.6 Adoption of new accounting guidance — — — (45.4 ) (0.5 ) (45.9 ) Realized and unrealized gains (losses) included in investment and other income, net 26.2 4.2 30.4 19.2 (0.3 ) 18.9 Purchases 32.0 42.2 74.2 30.4 24.7 55.1 Sales (17.5 ) (38.6 ) (56.1 ) (6.7 ) (22.3 ) (29.0 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (1.7 ) 0.6 (1.1 ) 2.9 2.1 5.0 Balance at End of Year $ 199.7 $ 150.3 $ 350.0 $ 160.7 $ 135.4 $ 296.1 Change in unrealized gains (losses) included in net income relating to assets held at end of year $ 17.3 $ 0.1 $ 17.4 $ 29.4 $ (0.9 ) $ 28.5 |
Schedule of valuation techniques and significant unobservable inputs used in Level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows: (in millions) as of September 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 171.9 Market comparable companies EBITDA multiple 5.0–13.6 (9.3) 27.8 Discounted cash flow Discount rate 8.0%–16.5% (14.1%) Debt securities 78.7 Discounted cash flow Discount rate 7.0%–14.8% (10.8%) 33.9 Comparable trading multiple Price-to-earnings ratio 10.0 Enterprise value/ EBITDA multiple 20.9 32.3 Discounted cash flow Loss-adjusted discount rate 3.0%–22.7% (12.0%) 5.4 Market pricing Private sale pricing $42 per $100 of par (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 101.9 Market comparable companies EBITDA multiple 5.5–12.3 (9.0) 44.4 Discounted cash flow Discount rate 5.7%–17.9% (14.3%) 14.4 Market pricing Price-to-earnings ratio 10.0 Debt securities 112.7 Discounted cash flow Discount rate 5.0%–33.0% (9.5%) Risk premium 0.0%–25.0% (8.4%) 22.7 Market pricing Private sale pricing $33–$57 ($52) per $100 of par |
Schedule of financial instruments of CIPs not measured at fair value | Financial instruments of CIPs that were not measured at fair value were as follows: (in millions) 2018 2017 as of September 30, Fair Value Level Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Asset Cash and cash equivalents 1 $ 299.8 $ 299.8 $ 226.4 $ 226.4 Financial Liability Debt 3 $ 32.6 $ 32.4 $ 53.4 $ 53.1 |
Schedule of changes in redeemable noncontrolling interests of CIPs | Changes in redeemable noncontrolling interests of CIPs were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 2016 Balance at beginning of year $ 1,941.9 $ 61.1 $ 59.6 Adoption of new accounting guidance — 824.7 — Net income (loss) (12.8 ) 53.0 1.6 Net subscriptions and other 170.9 884.3 79.9 Net consolidations (deconsolidations) (1,056.4 ) 118.8 (80.0 ) Balance at End of Year $ 1,043.6 $ 1,941.9 $ 61.1 |
Nonconsolidated Variable Inte_2
Nonconsolidated Variable Interest Entities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of maximum exposure loss from nonconsolidated VIEs | The Company’s maximum exposure to loss from these VIEs consists of equity investments and investment management fee receivables as follows: (in millions) as of September 30, 2018 2017 Investments $ 161.8 $ 129.3 Receivables 140.1 155.6 Total $ 301.9 $ 284.9 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes on income | Taxes on income were as follows: (in millions) for the fiscal years ended September 30, 2018 2017 2016 Current expense Federal $ 1,343.7 $ 585.0 $ 582.8 State 38.0 65.3 47.5 Non-U.S. 141.1 100.2 102.8 Deferred expense (benefit) (50.3 ) 8.9 9.0 Total $ 1,472.5 $ 759.4 $ 742.1 |
Schedule of income before taxes | Income before taxes consisted of the following: (in millions) for the fiscal years ended September 30, 2018 2017 2016 U.S. $ 1,458.1 $ 1,594.5 $ 1,641.7 Non-U.S. 757.1 954.6 858.1 Total $ 2,215.2 $ 2,549.1 $ 2,499.8 |
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, 2018 2017 Deferred Tax Assets Deferred compensation and employee benefits $ 33.1 $ 60.2 Stock-based compensation 21.9 36.1 Net operating loss carry-forwards 31.8 28.4 Tax benefit for uncertain tax positions 10.0 17.9 Other 18.7 23.9 Total deferred tax assets 115.5 166.5 Valuation allowance (27.5 ) (25.2 ) Deferred tax assets, net of valuation allowance 88.0 141.3 Deferred Tax Liabilities Goodwill and other purchased intangibles 142.2 205.2 Depreciation on fixed assets 20.9 35.3 Investments in partnerships 16.4 26.0 Deferred commissions 9.0 15.0 Other 8.7 14.6 Total deferred tax liabilities 197.2 296.1 Net Deferred Tax Liability $ 109.2 $ 154.8 |
Components of net deferred tax liability 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, 2018 2017 Other assets $ 17.3 $ 15.8 Deferred tax liabilities 126.5 170.6 Net Deferred Tax Liability $ 109.2 $ 154.8 |
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, 2018 2017 2016 Federal taxes at statutory rate $ 542.7 24.5 % $ 892.2 35.0 % $ 874.9 35.0 % Transition tax on deemed repatriation of undistributed foreign earnings 983.2 44.4 % — — — — Revaluation of net deferred tax liabilities (53.3 ) (2.4 %) — — — — Other Tax Act impacts 38.9 1.8 % — — — — State taxes, net of federal tax effect 16.6 0.7 % 41.4 1.6 % 42.7 1.7 % Effect of non-U.S. operations (61.9 ) (2.8 %) (146.2 ) (5.7 %) (153.0 ) (6.1 %) Effect of net (income) loss attributable to noncontrolling interests 5.3 0.2 % (32.6 ) (1.3 %) (10.9 ) (0.4 %) Other 1.0 0.1 % 4.6 0.2 % (11.6 ) (0.5 %) Tax Provision $ 1,472.5 66.5 % $ 759.4 29.8 % $ 742.1 29.7 % |
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, 2018 2017 2016 Balance at beginning of year $ 81.1 $ 82.1 $ 105.2 Additions for tax positions of prior years 3.6 6.6 0.6 Reductions for tax positions of prior years (6.6 ) (1.3 ) (9.0 ) Tax positions related to the current year 11.6 11.6 12.9 Settlements with taxing authorities — (5.2 ) (5.4 ) Expirations of statute of limitations (12.2 ) (12.7 ) (22.2 ) Balance at End of Year $ 77.5 $ 81.1 $ 82.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 : (in millions) for the fiscal years ending September 30, Amount 2019 $ 46.6 2020 42.2 2021 37.8 2022 33.1 2023 32.6 Thereafter 175.1 Total Minimum Lease Payments $ 367.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Stock and stock unit awards $ 111.6 $ 117.0 $ 125.3 Employee stock investment plan 6.2 6.4 6.2 Total $ 117.8 $ 123.4 $ 131.5 |
Summary of 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, 2018 Nonvested balance at September 30, 2017 2,783 1,761 4,544 $ 37.23 Granted 2,271 724 2,995 42.63 Vested (2,126 ) (516 ) (2,642 ) 39.18 Forfeited/canceled (250 ) (156 ) (406 ) 43.84 Nonvested balance at September 30, 2018 2,678 1,813 4,491 $ 39.08 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of geographic information | Geographic information was as follows: (in millions) for the fiscal years ended September 30, 2018 2017 2016 Operating Revenues United States $ 3,722.1 $ 3,898.4 $ 4,063.6 Luxembourg 1,730.6 1,652.8 1,707.9 Asia-Pacific 297.4 281.0 267.9 Canada 250.3 260.8 273.8 The Bahamas 208.1 205.9 204.6 Europe, Middle East and Africa, excluding Luxembourg 97.0 83.2 94.0 Latin America 13.6 10.1 6.2 Total $ 6,319.1 $ 6,392.2 $ 6,618.0 (in millions) as of September 30, 2018 2017 2016 Property and Equipment, Net United States $ 465.4 $ 426.1 $ 428.0 Asia-Pacific 42.1 60.2 62.9 The Bahamas 12.8 13.4 14.3 Europe, Middle East and Africa 10.1 12.2 14.9 Canada 3.7 5.3 3.1 Latin America 0.9 — — Total $ 535.0 $ 517.2 $ 523.2 |
Other Income (Expenses) (Tables
Other Income (Expenses) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2016 Investment and Other Income, Net Interest income $ 76.5 $ 74.9 $ 36.5 Dividend income 51.1 13.9 20.6 Gains on trading investment securities, net 1.1 12.2 50.1 Realized gains on sale of investment securities, available-for-sale 4.2 5.6 32.1 Realized losses on sale of investment securities, available-for-sale (1.2 ) (1.6 ) (3.2 ) Income from investments in equity method investees 44.4 107.9 56.7 Other-than-temporary impairment of investments (1.7 ) (0.8 ) (11.1 ) Gains (losses) on investments of CIPs, net (55.0 ) 118.2 (13.5 ) Foreign currency exchange gains (losses), net 0.6 (16.0 ) (2.9 ) Rental income 15.9 11.1 11.0 Other, net 9.4 10.9 7.7 Total 145.3 336.3 184.0 Interest Expense (48.7 ) (51.5 ) (49.9 ) Other Income, Net $ 96.6 $ 284.8 $ 134.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 Total for the fiscal year ended September 30, 2018 Balance at October 1, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) Adoption of new accounting guidance — — (0.1 ) (0.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 7.3 (85.5 ) 1.5 (76.7 ) Reclassifications to net investment and other income, net of tax (3.0 ) (6.4 ) 0.4 (9.0 ) Total other comprehensive income (loss) 4.3 (91.9 ) 1.9 (85.7 ) Balance at September 30, 2018 $ 6.5 $ (372.9 ) $ (4.2 ) $ (370.6 ) (in millions) Unrealized Gains on Investments Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the fiscal year ended September 30, 2017 Balance at October 1, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) Adoption of new accounting guidance (6.8 ) (0.3 ) — (7.1 ) Other comprehensive income Other comprehensive income before reclassifications, net of tax 6.5 65.4 2.1 74.0 Reclassifications to net investment and other income, net of tax (4.3 ) — — (4.3 ) Total other comprehensive income 2.2 65.4 2.1 69.7 Balance at September 30, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |
Number of reporting unit | 1 |
Deferred sales commission amortization period, minimum | 1 year |
Deferred sales commission amortization period, maximum | 7 years |
Stock-based compensation awards vesting period | 3 years |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 years |
Intangible assets, estimated useful lives | 3 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 35 years |
Intangible assets, estimated useful lives | 15 years |
New Accounting Guidance - Narra
New Accounting Guidance - Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
ASU 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of new accounting guidance | $ 9 |
Investments [Member] | ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of new accounting guidance | 22 |
Retained Earnings [Member] | ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of new accounting guidance | 30 |
Comprehensive Income [Member] | ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Adoption of new accounting guidance | $ 8 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Shares of nonparticipating nonvested stock unit awards excluded from the calculation of diluted EPS | 0.3 | 0.7 | 1.3 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net income attributable to Franklin Resources, Inc. | $ 764.4 | $ 1,696.7 | $ 1,726.7 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic | 17.6 | 12.4 | 10.9 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted | 17.6 | 12.4 | 10.9 |
Net Income Available to Common Stockholders - basic | 746.8 | 1,684.3 | 1,715.8 |
Net Income Available to Common Stockholders - diluted | $ 746.8 | $ 1,684.3 | $ 1,715.8 |
Weighted-average shares outstanding – basic | 537.4 | 558.8 | 583.8 |
Dilutive effect of nonparticipating nonvested stock unit awards | 0.6 | 0.3 | 0 |
Weighted-Average Shares Outstanding – Diluted | 538 | 559.1 | 583.8 |
Earnings per Share [Abstract] | |||
Basic | $ 1.39 | $ 3.01 | $ 2.94 |
Diluted | $ 1.39 | $ 3.01 | $ 2.94 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments [Abstract] | |||
Aggregate carrying amounts of investment securities pledged as collateral | $ 1.2 | $ 0.8 | |
Other-than-temporary impairment of investments | $ 1.7 | $ 0.8 | $ 11.1 |
Sponsored Funds [Member] | |||
Investment Holdings [Line Items] | |||
Other-than-temporary impairment of available-for-sale | $ 5.8 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Investment Holdings [Line Items] | ||
Investment securities, trading | $ 345.7 | $ 314.5 |
Investment securities, available-for-sale | 194.1 | 112.7 |
Investments in equity method investees | 780.8 | 893.5 |
Other investments | 105.9 | 72.9 |
Total | 1,426.5 | 1,393.6 |
Sponsored Funds [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, trading | 248.1 | 31.1 |
Investment securities, available-for-sale | 178.6 | 110.8 |
Debt and Other Equity Securities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, trading | 97.6 | 283.4 |
Investment securities, available-for-sale | $ 15.5 | $ 1.9 |
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, 2018 | Sep. 30, 2017 |
Investment Holdings [Line Items] | ||
Cost Basis | $ 189.7 | $ 109.8 |
Gross Unrealized Gains | 8.8 | 9.4 |
Gross Unrealized Losses | (4.4) | (6.5) |
Fair Value | 194.1 | 112.7 |
Sponsored Funds [Member] | ||
Investment Holdings [Line Items] | ||
Cost Basis | 172.9 | 107.9 |
Gross Unrealized Gains | 8.3 | 9.4 |
Gross Unrealized Losses | (2.6) | (6.5) |
Fair Value | 178.6 | 110.8 |
Debt and Other Equity Securities [Member] | ||
Investment Holdings [Line Items] | ||
Cost Basis | 16.8 | 1.9 |
Gross Unrealized Gains | 0.5 | 0 |
Gross Unrealized Losses | (1.8) | 0 |
Fair Value | $ 15.5 | $ 1.9 |
Investments - Summary of Gros_2
Investments - Summary of Gross Unrealized Losses, AFS, Continuous Loss Position (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 59.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (3.9) | |
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 | (0.5) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 80.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | (4.4) | |
Sponsored Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 48.8 | $ 28.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (2.1) | (6.3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value | 21 | 2.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses | (0.5) | (0.2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 69.8 | 30.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | (2.6) | $ (6.5) |
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 | (1.8) | |
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 | $ (1.8) |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers into Level 3 - assets | $ 0 | $ 0 |
Transfers out of Level 3 - assets | 0 | 0.4 |
Contingent Consideration Liability [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers into Level 3 - liabilities | 0 | 0 |
Transfers out of Level 3 - liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liability Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Assets [Abstract] | ||
Investment securities, trading | $ 345.7 | $ 314.5 |
Investment securities, available-for-sale | 194.1 | 112.7 |
Life settlement contracts | 11.8 | 12.8 |
Total Assets Measured at Fair Value | 551.6 | 440 |
Liability [Abstract] | ||
Contingent consideration liability | 38.7 | 51 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 457.7 | 161.1 |
Liability [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 61.3 | 79 |
Liability [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 11.8 | 12.8 |
Total Assets Measured at Fair Value | 32.6 | 199.9 |
Liability [Abstract] | ||
Contingent consideration liability | 38.7 | 51 |
Sponsored Funds [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 248.1 | 31.1 |
Investment securities, available-for-sale | 178.6 | 110.8 |
Sponsored Funds [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 248.1 | 31.1 |
Investment securities, available-for-sale | 178.6 | 110.8 |
Sponsored Funds [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Sponsored Funds [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Debt and Other Equity Securities [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 97.6 | 283.4 |
Investment securities, available-for-sale | 15.5 | 1.9 |
Debt and Other Equity Securities [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 26.6 | 18.2 |
Investment securities, available-for-sale | 4.4 | 1 |
Debt and Other Equity Securities [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 50.5 | 78.4 |
Investment securities, available-for-sale | 10.8 | 0.6 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 20.5 | 186.8 |
Investment securities, available-for-sale | $ 0.3 | $ 0.3 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Level 3 Assets and Liabilities (Details) - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - assets | $ 296.1 | $ 292.6 |
Total realized and unrealized gains (losses) - assets | 30.4 | 18.9 |
Purchases - assets | 74.2 | 55.1 |
Sales - assets | (56.1) | (29) |
Settlements - assets | (0.5) | (0.6) |
Balance at End of Year - Assets | 350 | 296.1 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at the end of the year | 17.4 | 28.5 |
Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - assets | 199.9 | 205.1 |
Acquisition - assets | 0 | 0 |
Purchases - assets | 14.5 | 5.4 |
Sales - assets | (2.6) | (17.7) |
Settlements - assets | (174) | (4.8) |
Transfers out of Level 3 - assets | 0 | (0.4) |
Foreign exchange revaluation and other | (9.7) | 3.8 |
Balance at End of Year - Assets | 32.6 | 199.9 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at the end of the year | 2.1 | 6 |
Contingent Consideration Liability [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - liabilities | (51) | (98.1) |
Acquisition - liabilities | 0 | (5.7) |
Purchases - liability | 0 | 0 |
Sales - liability | 0 | 0 |
Settlements - liability | 32.4 | 39 |
Transfers out of Level 3 - liabilities | 0 | 0 |
Foreign exchange revaluation and other | (7) | 0 |
Balance at End of Year - Liabilities | (38.7) | (51) |
Change in unrealized gains (losses) included in net income relating to assets and liability held at the end of the year | (13.1) | 8.1 |
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 | 4.5 | 8.5 |
Investment and other income [Member] | Contingent Consideration Liability [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 Liability [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | $ (13.1) | $ 13.8 |
Fair Value Measurements - Sch_3
Fair Value Measurements - 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, 2018 | Sep. 30, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 345.7 | $ 314.5 |
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | 38.7 | 51 |
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | 38.7 | 51 |
Discounted cash flow [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | $ 38.7 | $ 51 |
Contingent Consideration Liability [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 1.30% | |
Contingent Consideration Liability [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 5.30% | |
Contingent Consideration Liability [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 13.00% | 14.60% |
AUM growth rate | 9.40% | |
Life settlement contracts [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Life expectancy | 20 months | 20 months |
Life settlement contracts [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 13.10% | 13.20% |
Life expectancy | 61 months | 62 months |
Life settlement contracts [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Life expectancy | 115 months | 123 months |
Debt and Other Equity Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 97.6 | $ 283.4 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | 20.5 | 186.8 |
Debt and Other Equity Securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 20.5 | 11.1 |
Debt and Other Equity Securities [Member] | Market pricing [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 175.7 | |
Debt and Other Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 4.10% | 4.10% |
Risk premium | 2.00% | 2.00% |
Debt and Other Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 5.80% | 5.70% |
Risk premium | 3.60% | 2.90% |
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 12.30% | 6.70% |
Risk premium | 6.70% | 4.10% |
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Market pricing [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Redemption price | $ 0.73 | |
Discount rate | 18.60% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,910.6 | $ 8,749.7 | $ 8,483.3 | $ 8,368.1 |
Financial Liability [Abstract] | ||||
Debt | 699.3 | 1,049 | ||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,610.8 | 8,523.3 | ||
Time deposits | 12.3 | 13.4 | ||
Cost method investments | 81.8 | 46.7 | ||
Financial Liability [Abstract] | ||||
Debt | 695.9 | 1,044.2 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,610.8 | 8,523.3 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ||||
Financial Assets [Abstract] | ||||
Time deposits | 12.3 | 13.4 | ||
Financial Liability [Abstract] | ||||
Debt | 671.1 | 1,073.5 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ||||
Financial Assets [Abstract] | ||||
Cost method investments | $ 103.6 | $ 67.7 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation and amortization expense | $ 78.9 | $ 81.5 | $ 81 |
Recognized equipment impairment | $ 6.6 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 1,500.8 | $ 1,459.8 | |
Less: accumulated depreciation and amortization | (965.8) | (942.6) | |
Property and Equipment, Net | $ 535 | 517.2 | $ 523.2 |
Minimum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and Equipment, Useful Lives | 35 years | ||
Furniture, software and equipment [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Total cost | $ 798.6 | 804.7 | |
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 | $ 628.1 | 580.9 | |
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 Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment of indefinite-lived intangible assets | 0 | 0 | 0 |
Amortization expense definite-lived intangible assets | $ 1.8 | 3.9 | 10.4 |
Definite-lived intangible assets weighted-average remaining useful life | 2 years 9 months | ||
Management contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of definite-lived intangible assets | $ 5.7 | $ 9.6 | $ 28.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,794.8 | $ 1,687.2 | $ 1,661.2 |
Indefinite-lived intangible assets | 530.7 | 534 | |
Definite-lived intangible assets, net | 7.9 | 6.5 | |
Goodwill and Other Intangible Assets, Net | $ 2,333.4 | $ 2,227.7 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of year | $ 1,687.2 | $ 1,661.2 |
Acquisitions | 117.4 | 18.8 |
Foreign exchange revaluation and other | (9.8) | 7.2 |
Balance at End of Year | $ 1,794.8 | $ 1,687.2 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 7.9 | $ 6.5 |
Management contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 54.9 | 52.4 |
Accumulated Amortization | (47) | (45.9) |
Net Carrying Value | $ 7.9 | $ 6.5 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Remaining Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,019 | $ 3 | |
2,020 | 3 | |
2,021 | 1.8 | |
Thereafter | 0.1 | |
Net Carrying Value | $ 7.9 | $ 6.5 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | May 21, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Disclosure [Abstract] | |||
Face value of senior unsecured and unsubordinated notes | $ 700 | ||
Notes Due May 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.625% | 4.625% | |
Redemption price | $ 361.9 | ||
Accelerated interest expense | $ 12.5 | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper available for issuance under an uncommitted private placement program | $ 500 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | May 21, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Senior notes | $ 699.3 | $ 1,049 | |
Debt issuance costs | (3.4) | (4.8) | |
Total | 695.9 | 1,044.2 | |
Notes Due May 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | $ 350 | ||
Stated interest rate | 4.625% | 4.625% | |
Senior notes | 0 | $ 349.9 | |
Effective Interest Rate | 4.74% | ||
Notes Due September 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | $ 300 | ||
Stated interest rate | 2.80% | ||
Senior notes | $ 299.7 | $ 299.6 | |
Effective Interest Rate | 2.93% | 2.93% | |
Notes Due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | $ 400 | ||
Stated interest rate | 2.85% | ||
Senior notes | $ 399.6 | $ 399.5 | |
Effective Interest Rate | 2.97% | 2.97% |
Consolidated Investment Produ_3
Consolidated Investment Products - Narrative (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Consolidated Investment Products [Abstract] | ||
Number of consolidated investment products | 53 | 58 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 695.9 | $ 1,044.2 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
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 |
CIPs' unfunded commitments | 1.9 | 1.9 |
Unfunded commitments Company contractually obligated to fund | 0.4 | 0.4 |
Debt | $ 32.6 | $ 53.4 |
Effective Interest Rate | 6.79% | 5.15% |
CIPs [Member] | Real Estate and Private Equity Funds [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Liquidation weighted average period | 3 years 6 months | 4 years 5 months |
CIPs [Member] | Minimum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Stated interest rate | 3.07% | 2.84% |
CIPs [Member] | Maximum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Stated interest rate | 7.88% | 6.75% |
Consolidated Investment Produ_4
Consolidated Investment Products - Schedule of Balances of CIPs (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,910.6 | $ 8,749.7 | $ 8,483.3 | $ 8,368.1 |
Receivables | 733.7 | 767.8 | ||
Investments, at fair value | 551.6 | 440 | ||
Other assets | 220.7 | 176.5 | ||
Total Assets | 14,383.5 | 17,534 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 158.9 | 167.4 | ||
Debt | 695.9 | 1,044.2 | ||
Other liabilities | 184.1 | 198.7 | ||
Total liabilities | 3,132 | 2,656.3 | ||
Redeemable Noncontrolling Interests | 1,043.6 | 1,941.9 | 61.1 | 59.6 |
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 9,899.2 | 12,620 | ||
Nonredeemable noncontrolling interests | 308.7 | 315.8 | ||
Total stockholders’ equity | 10,207.9 | 12,935.8 | $ 12,528.2 | $ 12,495.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 14,383.5 | 17,534 | ||
CIPs [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 299.8 | 226.4 | ||
Receivables | 114.2 | 234.1 | ||
Investments, at fair value | 2,109.4 | 3,467.4 | ||
Other assets | 1 | 0.9 | ||
Total Assets | 2,524.4 | 3,928.8 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 68 | 124.1 | ||
Debt | 32.6 | 53.4 | ||
Other liabilities | 9.3 | 8.7 | ||
Total liabilities | 109.9 | 186.2 | ||
Redeemable Noncontrolling Interests | 1,043.6 | 1,941.9 | ||
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 1,092.6 | 1,511.8 | ||
Nonredeemable noncontrolling interests | 278.3 | 288.9 | ||
Total stockholders’ equity | 1,370.9 | 1,800.7 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 2,524.4 | $ 3,928.8 |
Consolidated Investment Produ_5
Consolidated Investment Products - Schedule of Investments of CIPs (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Investment securities, trading | $ 345.7 | $ 314.5 |
Other investments | 105.9 | 72.9 |
Fair value | 551.6 | 440 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investment securities, trading | 1,651.8 | 3,017.2 |
Fair value | 2,109.4 | 3,467.4 |
Equity Securities [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Other investments | 311 | 306.9 |
Debt Securities [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Other investments | $ 146.6 | $ 143.3 |
Consolidated Investment Produ_6
Consolidated Investment Products - Schedule of Balances of Assets and Liabilities of CIPs Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Assets [Abstract] | ||
Investments, at fair value | $ 551.6 | $ 440 |
Total Assets Measured at Fair Value | 551.6 | 440 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 457.7 | 161.1 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 61.3 | 79 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 32.6 | 199.9 |
CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2,109.4 | 3,467.4 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 2,109.4 | 3,467.4 |
Liability [Abstract] | ||
Other liabilities | 9.3 | 8.7 |
NAV as a Practical Expedient | 113.8 | 155.2 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 271.3 | 332.8 |
Liability [Abstract] | ||
Other liabilities | 0.6 | 0.4 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 1,374.3 | 2,683.3 |
Liability [Abstract] | ||
Other liabilities | 8.7 | 8.3 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 350 | 296.1 |
Liability [Abstract] | ||
Other liabilities | 0 | 0 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 739 | 775.4 |
Liability [Abstract] | ||
NAV as a Practical Expedient | 113.8 | 155.2 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 270.7 | 331.4 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 154.8 | 128.1 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 199.7 | 160.7 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,370.4 | 2,692 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.6 | 1.4 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,219.5 | 2,555.2 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | $ 150.3 | $ 135.4 |
Consolidated Investment Produ_7
Consolidated Investment Products - Schedule of Changes in Level 3 Assets of CIPs (Details) - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | $ 296.1 | $ 292.6 |
Realized and unrealized gains (losses) included in investment and other income, net | 30.4 | 18.9 |
Purchases | 74.2 | 55.1 |
Sales | (56.1) | (29) |
Settlements | (0.5) | (0.6) |
Consolidation | 7 | |
Foreign exchange revaluation | (1.1) | 5 |
Balance at End of Year - Assets | 350 | 296.1 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | 17.4 | 28.5 |
Equity Securities [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | 160.7 | 160.3 |
Realized and unrealized gains (losses) included in investment and other income, net | 26.2 | 19.2 |
Purchases | 32 | 30.4 |
Sales | (17.5) | (6.7) |
Settlements | 0 | 0 |
Consolidation | 0 | |
Foreign exchange revaluation | (1.7) | 2.9 |
Balance at End of Year - Assets | 199.7 | 160.7 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | 17.3 | 29.4 |
Debt Securities [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | 135.4 | 132.3 |
Realized and unrealized gains (losses) included in investment and other income, net | 4.2 | (0.3) |
Purchases | 42.2 | 24.7 |
Sales | (38.6) | (22.3) |
Settlements | (0.5) | (0.6) |
Consolidation | 7 | |
Foreign exchange revaluation | 0.6 | 2.1 |
Balance at End of Year - Assets | 150.3 | 135.4 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | $ 0.1 | (0.9) |
ASU 2015-02 [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Adoption of new accounting guidance | (45.9) | |
ASU 2015-02 [Member] | Equity Securities [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Adoption of new accounting guidance | (45.4) | |
ASU 2015-02 [Member] | Debt Securities [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Adoption of new accounting guidance | $ (0.5) |
Consolidated Investment Produ_8
Consolidated Investment Products - 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, 2018 | Sep. 30, 2017 | |
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 551.6 | $ 440 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 2,109.4 | $ 3,467.4 |
Equity Securities [Member] | Minimum [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 5 | 5.5 |
Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 8.00% | 5.70% |
Equity Securities [Member] | Maximum [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 13.6 | 12.3 |
Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 16.50% | 17.90% |
Equity Securities [Member] | Weighted Average [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 9.3 | 9 |
Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 14.10% | 14.30% |
Equity Securities [Member] | Weighted Average [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Price to earnings ratio | $ 10 | |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 171.9 | $ 101.9 |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 27.8 | 44.4 |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 14.4 | |
Debt Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 7.00% | 5.00% |
Risk premium | 0.00% | |
Debt Securities [Member] | Minimum [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.33 | |
Debt Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 14.80% | 33.00% |
Risk premium | 25.00% | |
Debt Securities [Member] | Maximum [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.57 | |
Debt Securities [Member] | Weighted Average [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 20.9 | |
Price to earnings ratio | $ 10 | |
Debt Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 10.80% | 9.50% |
Risk premium | 8.40% | |
Debt Securities [Member] | Weighted Average [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.42 | $ 0.52 |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Market comparable companies [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 33.9 | |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | 78.7 | $ 112.7 |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Market pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 5.4 | $ 22.7 |
Other Debt Obligations [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 3.00% | |
Other Debt Obligations [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 22.70% | |
Other Debt Obligations [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 12.00% | |
Other Debt Obligations [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 32.3 |
Consolidated Investment Produ_9
Consolidated Investment Products - Schedule of Financial Instruments of CIPs not Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,910.6 | $ 8,749.7 | $ 8,483.3 | $ 8,368.1 |
Financial Liability [Abstract] | ||||
Debt | 695.9 | 1,044.2 | ||
CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 299.8 | 226.4 | ||
Financial Liability [Abstract] | ||||
Debt | 32.6 | 53.4 | ||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,610.8 | 8,523.3 | ||
Carrying Value [Member] | CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 299.8 | 226.4 | ||
Financial Liability [Abstract] | ||||
Debt | 32.6 | 53.4 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,610.8 | 8,523.3 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 299.8 | 226.4 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 3 [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | $ 32.4 | $ 53.1 |
Consolidated Investment Prod_10
Consolidated Investment Products - Schedule of Redeemable Noncontrolling Interests of CIPs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 01, 2016 | |
Temporary Equity [Line Items] | ||||
Balance at beginning of year | $ 1,941.9 | $ 61.1 | $ 59.6 | |
Net income (loss) | (12.8) | 53 | 1.6 | |
Net subscriptions and other | (6) | 17.3 | (91.8) | |
Net consolidations (deconsolidations) | 2.4 | (9.3) | ||
Balance at End of Year | 1,043.6 | 1,941.9 | 61.1 | |
Redeemable Noncontrolling Interests [Member] | ||||
Temporary Equity [Line Items] | ||||
Net subscriptions and other | 170.9 | 884.3 | 79.9 | |
Net consolidations (deconsolidations) | $ (1,056.4) | $ 118.8 | (80) | |
ASU 2015-02 [Member] | ||||
Temporary Equity [Line Items] | ||||
Adoption of new accounting guidance | $ (325.9) | |||
ASU 2015-02 [Member] | Redeemable Noncontrolling Interests [Member] | ||||
Temporary Equity [Line Items] | ||||
Adoption of new accounting guidance | $ 824.7 |
Nonconsolidated Variable Inte_3
Nonconsolidated Variable Interest Entities - Narrative (Details) - Nonconsolidated VIEs [Member] $ in Millions | Jul. 31, 2018USD ($) | Sep. 30, 2018 |
Variable Interest Entity [Line Items] | ||
Number of sponsored funds | 2 | |
Debt and Other Equity Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Purchase of certain equity and debt securities | $ 32.6 |
Nonconsolidated Variable Inte_4
Nonconsolidated Variable Interest Entities (Details) - Nonconsolidated VIEs [Member] - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 301.9 | $ 284.9 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 161.8 | 129.3 |
Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 140.1 | $ 155.6 |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Examination [Line Items] | |||||
Federal statutory rate | 24.50% | 35.00% | 35.00% | ||
Tax shortfall from stock-based compensation | $ 8.7 | $ 5.9 | |||
Impact of reduced rates on income tax expense | $ 31.3 | $ 28.8 | $ 34.2 | ||
Impact of reduced rates on income tax expense, per diluted share | $ 0.06 | $ 0.05 | $ 0.06 | ||
Valuation allowance | $ 2.3 | $ 0.6 | |||
Accrued interest on uncertain tax positions | $ 11.3 | 11.3 | 10.4 | ||
Interest expense (benefit) | 0.9 | $ 1.6 | $ (1.3) | ||
Estimated decrease in unrecognized tax benefits within the next twelve months | 16.4 | 16.4 | |||
Foreign Tax Authority [Member] | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carry-forwards | 153.2 | 153.2 | |||
State [Member] | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carry-forwards | 32.3 | 32.3 | |||
Tax Cuts and Jobs Act [Member] | |||||
Income Tax Examination [Line Items] | |||||
Estimated transition tax expense (benefit) | 87.6 | (983.2) | |||
Net tax benefit | 53.3 | ||||
Decrease in deferred tax assets | 35.6 | ||||
Decrease in deferred tax liabilities | 88.9 | ||||
Tax Cuts and Jobs Act [Member] | Domestic Tax Authority [Member] | |||||
Income Tax Examination [Line Items] | |||||
Estimated transition tax expense (benefit) | $ (965.3) | ||||
Scenario, Forecast [Member] | |||||
Income Tax Examination [Line Items] | |||||
Federal statutory rate | 21.00% | ||||
First Five Years [Member] | |||||
Income Tax Examination [Line Items] | |||||
Federal portion of the transition tax liability, payment percentage | 8.00% | ||||
Year Six [Member] | |||||
Income Tax Examination [Line Items] | |||||
Federal portion of the transition tax liability, payment percentage | 15.00% | ||||
Year Seven [Member] | |||||
Income Tax Examination [Line Items] | |||||
Federal portion of the transition tax liability, payment percentage | 20.00% | ||||
Year Eight [Member] | |||||
Income Tax Examination [Line Items] | |||||
Federal portion of the transition tax liability, payment percentage | 25.00% | ||||
Expire between FY 2019 and 2038, remaining with indefinite life [Member] | Foreign Tax Authority [Member] | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carry-forwards | $ 78.2 | $ 78.2 | |||
ASU 2018-02 [Member] | |||||
Income Tax Examination [Line Items] | |||||
Adoption of new accounting guidance | 0.1 | ||||
ASU 2018-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | |||||
Income Tax Examination [Line Items] | |||||
Adoption of new accounting guidance | $ 0.1 |
Taxes on Income - Schedule of T
Taxes on Income - Schedule of Taxes on Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current expense [Abstract] | |||
Federal | $ 1,343.7 | $ 585 | $ 582.8 |
State | 38 | 65.3 | 47.5 |
Non-U.S. | 141.1 | 100.2 | 102.8 |
Deferred expense (benefit) | (50.3) | 8.9 | 9 |
Total | $ 1,472.5 | $ 759.4 | $ 742.1 |
Taxes on Income - Schedule of I
Taxes on Income - Schedule of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 1,458.1 | $ 1,594.5 | $ 1,641.7 |
Non-U.S. | 757.1 | 954.6 | 858.1 |
Total | $ 2,215.2 | $ 2,549.1 | $ 2,499.8 |
Taxes on Income - Components of
Taxes on Income - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred Tax Assets [Abstract] | ||
Deferred compensation and employee benefits | $ 33.1 | $ 60.2 |
Stock-based compensation | 21.9 | 36.1 |
Net operating loss carry-forwards | 31.8 | 28.4 |
Tax benefit for uncertain tax positions | 10 | 17.9 |
Other | 18.7 | 23.9 |
Total deferred tax assets | 115.5 | 166.5 |
Valuation allowance | (27.5) | (25.2) |
Deferred tax assets, net of valuation allowance | 88 | 141.3 |
Deferred Tax Liabilities [Abstract] | ||
Goodwill and other purchased intangibles | 142.2 | 205.2 |
Depreciation on fixed assets | 20.9 | 35.3 |
Investments in partnerships | 16.4 | 26 |
Deferred commissions | 9 | 15 |
Other | 8.7 | 14.6 |
Total deferred tax liabilities | 197.2 | 296.1 |
Net Deferred Tax Liability | $ 109.2 | $ 154.8 |
Taxes on Income - Components _2
Taxes on Income - Components of Net Deferred Tax Liability as Classified in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 17.3 | $ 15.8 |
Deferred tax liabilities | 126.5 | 170.6 |
Net Deferred Tax Liability | $ 109.2 | $ 154.8 |
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 | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Federal taxes at statutory rate | $ 542.7 | $ 892.2 | $ 874.9 | |
Federal statutory rate | 24.50% | 35.00% | 35.00% | |
State taxes, net of federal tax effect | $ 16.6 | $ 41.4 | $ 42.7 | |
State taxes, net of federal tax effect rate | 0.70% | 1.60% | 1.70% | |
Effect of non-U.S. operations | $ (61.9) | $ (146.2) | $ (153) | |
Effect of non-U.S. operation rate | (2.80%) | (5.70%) | (6.10%) | |
Effect of net (income) loss attributable to noncontrolling interests | $ 5.3 | $ (32.6) | $ (10.9) | |
Effect of net income attributable to noncontrolling interest rate | 0.20% | (1.30%) | (0.40%) | |
Other | $ 1 | $ 4.6 | $ (11.6) | |
Other rate | 0.10% | 0.20% | (0.50%) | |
Tax Provision | $ 1,472.5 | $ 759.4 | $ 742.1 | |
Effective Tax Rate | 66.50% | 29.80% | 29.70% | |
Tax Cuts and Jobs Act [Member] | ||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Transition tax on deemed repatriation of undistributed foreign earnings | $ (87.6) | $ 983.2 | ||
Transition tax on deemed repatriation of undistributed foreign earnings rate | 44.40% | |||
Revaluation of net deferred tax liabilities | $ (53.3) | |||
Revaluation of net deferred tax liabilities rate | (2.40%) | |||
Other | $ 38.9 | |||
Other rate | 1.80% |
Taxes on Income - Reconciliat_2
Taxes on Income - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 81.1 | $ 82.1 | $ 105.2 |
Additions for tax positions of prior years | 3.6 | 6.6 | 0.6 |
Reductions for tax positions of prior years | (6.6) | (1.3) | (9) |
Tax positions related to the current year | 11.6 | 11.6 | 12.9 |
Settlements with taxing authorities | 0 | (5.2) | (5.4) |
Expirations of statute of limitations | (12.2) | (12.7) | (22.2) |
Balance at End of Year | $ 77.5 | $ 81.1 | $ 82.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expense | $ 55.9 | $ 56.3 | $ 69.3 |
Sublease income | 0.2 | $ 0.4 | $ 1.6 |
Future minimum rentals to be received under non-cancelable subleases | 0.2 | ||
Committed capital contributions | 299 | ||
Plaintiff Cryer 401K Plan [Member] | |||
Loss Contingencies [Line Items] | |||
The plaintiff alleges that Plan losses exceed | 79 | ||
Plaintiff Fernandez 401K Plan [Member] | |||
Loss Contingencies [Line Items] | |||
The plaintiff alleges that Plan losses exceed | $ 60 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Long-Term Non-Cancelable Operating Leases (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 46.6 |
2,020 | 42.2 |
2,021 | 37.8 |
2,022 | 33.1 |
2,023 | 32.6 |
Thereafter | 175.1 |
Total Minimum Lease Payments | $ 367.4 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |||
Number of shares authorized for issuance under the USIP | 120 | ||
Number of shares available for grant under USIP | 18.4 | ||
Unrecognized compensation expense related to nonvested stock and stock unit awards | $ 120.2 | ||
Remaining weighted-average vesting period | 1 year 7 months | ||
Weighted-average grant-date fair values of stock awards and stock unit awards granted | $ 42.63 | $ 34.23 | $ 40.88 |
Fair value of stock awards and stock unit awards vested | $ 91.5 | $ 104 | $ 92.8 |
Total shares issued under ESIP | 0.8 | ||
Shares reserved for future issuance under ESIP | 2.8 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 117.8 | $ 123.4 | $ 131.5 |
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 | 6.2 |
Stock and stock unit awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expenses | $ 111.6 | $ 117 | $ 125.3 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock and Stock Unit Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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, 2017 | 4,544 | ||
Granted | 2,995 | ||
Vested | (2,642) | ||
Forfeited/canceled | (406) | ||
Nonvested balance at September 30, 2018 | 4,491 | 4,544 | |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ 37.23 | ||
Weighted Average Grant Date Fair Value of shares granted | 42.63 | $ 34.23 | $ 40.88 |
Weighted Average Grant Date Fair Value of shares vested | 39.18 | ||
Weighted Average Grant Date Fair Value of shares forfeited/canceled | 43.84 | ||
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ 39.08 | $ 37.23 | |
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, 2017 | 2,783 | ||
Granted | 2,271 | ||
Vested | (2,126) | ||
Forfeited/canceled | (250) | ||
Nonvested balance at September 30, 2018 | 2,678 | 2,783 | |
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, 2017 | 1,761 | ||
Granted | 724 | ||
Vested | (516) | ||
Forfeited/canceled | (156) | ||
Nonvested balance at September 30, 2018 | 1,813 | 1,761 |
Defined Contribution Plans - Na
Defined Contribution Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Retirement Benefits [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 | $ 49.8 | $ 45.5 | $ 46.8 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Operating Revenues, Property and Equipment by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | $ 6,319.1 | $ 6,392.2 | $ 6,618 |
Property and Equipment, Net | 535 | 517.2 | 523.2 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 3,722.1 | 3,898.4 | 4,063.6 |
Property and Equipment, Net | 465.4 | 426.1 | 428 |
Luxembourg [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 1,730.6 | 1,652.8 | 1,707.9 |
Asia-Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 297.4 | 281 | 267.9 |
Property and Equipment, Net | 42.1 | 60.2 | 62.9 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 250.3 | 260.8 | 273.8 |
Property and Equipment, Net | 3.7 | 5.3 | 3.1 |
The Bahamas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 208.1 | 205.9 | 204.6 |
Property and Equipment, Net | 12.8 | 13.4 | 14.3 |
Europe, Middle East and Africa, excluding Luxembourg [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 97 | 83.2 | 94 |
Europe, Middle East and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and Equipment, Net | 10.1 | 12.2 | 14.9 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating Revenues | 13.6 | 10.1 | 6.2 |
Property and Equipment, Net | $ 0.9 | $ 0 | $ 0 |
Other Income (Expenses) - Narra
Other Income (Expenses) - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |||
Proceeds from the sale of available-for-sale securities | $ 85.5 | $ 51.6 | $ 269.4 |
Net gains (losses) recognized on trading investment securities | (1.7) | 5 | 27.9 |
Net gains (losses) recognized on trading investment securities of CIPs | $ (24.5) | $ 21.9 | $ 9.4 |
Other Income (Expenses) - Sched
Other Income (Expenses) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 76.5 | $ 74.9 | $ 36.5 |
Dividend income | 51.1 | 13.9 | 20.6 |
Gains on trading investment securities, net | 1.1 | 12.2 | 50.1 |
Realized gains on sale of investment securities, available-for-sale | 4.2 | 5.6 | 32.1 |
Realized losses on sale of investment securities, available-for-sale | (1.2) | (1.6) | (3.2) |
Income from investments in equity method investees | 44.4 | 107.9 | 56.7 |
Other-than-temporary impairment of investments | (1.7) | (0.8) | (11.1) |
Gains (losses) on investments of CIPs, net | (55) | 118.2 | (13.5) |
Foreign currency exchange gains (losses), net | 0.6 | (16) | (2.9) |
Rental income | 15.9 | 11.1 | 11 |
Other, net | 9.4 | 10.9 | 7.7 |
Total | 145.3 | 336.3 | 184 |
Interest Expense | (48.7) | (51.5) | (49.9) |
Other Income, Net | $ 96.6 | $ 284.8 | $ 134.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 01, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (284.8) | $ (347.4) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (76.7) | 74 | ||
Reclassifications to net investment and other income, net of tax | (9) | (4.3) | ||
Total other comprehensive income (loss) | (85.7) | 69.7 | $ (33.2) | |
Balance at end of period | (370.6) | (284.8) | (347.4) | |
Unrealized Gains on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | 2.2 | 6.8 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 7.3 | 6.5 | ||
Reclassifications to net investment and other income, net of tax | (3) | (4.3) | ||
Total other comprehensive income (loss) | 4.3 | 2.2 | ||
Balance at end of period | 6.5 | 2.2 | 6.8 | |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (281) | (346.1) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (85.5) | 65.4 | ||
Reclassifications to net investment and other income, net of tax | (6.4) | 0 | ||
Total other comprehensive income (loss) | (91.9) | 65.4 | ||
Balance at end of period | (372.9) | (281) | (346.1) | |
Unrealized Losses on Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (6) | (8.1) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 1.5 | 2.1 | ||
Reclassifications to net investment and other income, net of tax | 0.4 | 0 | ||
Total other comprehensive income (loss) | 1.9 | 2.1 | ||
Balance at end of period | (4.2) | (6) | (8.1) | |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total other comprehensive income (loss) | (85.7) | $ 69.7 | (33.2) | |
ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | (0.1) | |||
ASU 2018-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | $ (0.1) | |||
ASU 2015-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | (325.9) | |||
ASU 2015-02 [Member] | Unrealized Gains on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | $ (6.8) | |||
ASU 2015-02 [Member] | Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | (0.3) | |||
ASU 2015-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | 0 | |||
ASU 2015-02 [Member] | AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | $ (7.1) | $ (7.1) |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - Benefit Street Partners L.L.C. [Member] - Subsequent Event [Member] $ in Millions | Oct. 24, 2018USD ($) |
Subsequent Event [Line Items] | |
Purchase consideration in cash | $ 683 |
Amount of purchase consideration will be used to retire debt | $ 130 |