Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-09318 | |
Entity Registrant Name | FRANKLIN RESOURCES, INC. | |
Entity Central Index Key | 0000038777 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-2670991 | |
Entity Address, Address Line One | One Franklin Parkway | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94403 | |
City Area Code | 650 | |
Local Phone Number | 312-2000 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | BEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 522,998,430 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Revenues | ||||
Operating revenues | $ 2,122.9 | $ 1,969 | $ 6,266.8 | $ 5,863.3 |
Operating Expenses | ||||
Compensation and benefits | 893.8 | 841.2 | 2,890.3 | 2,667.7 |
Sales, distribution and marketing | 481.1 | 406.8 | 1,366.2 | 1,202 |
Information systems and technology | 156.6 | 127.3 | 442.7 | 376.7 |
Occupancy | 104.8 | 56.9 | 247.7 | 171.1 |
Amortization of intangible assets | 84 | 85.4 | 254.4 | 254.6 |
General, administrative and other | 180.1 | 136.5 | 507.2 | 427.2 |
Total operating expenses | 1,900.4 | 1,654.1 | 5,708.5 | 5,099.3 |
Operating Income | 222.5 | 314.9 | 558.3 | 764 |
Other Income (Expenses) | ||||
Investment and other income, net | 74.5 | 49.8 | 300.2 | 200.3 |
Interest expense | (25.7) | (34.9) | (72.2) | (99.3) |
Other income, net | 77.6 | 15.8 | 311.1 | 160.6 |
Income before taxes | 300.1 | 330.7 | 869.4 | 924.6 |
Taxes on income | 68.1 | 84.1 | 205.8 | 237.3 |
Net income | 232 | 246.6 | 663.6 | 687.3 |
Less: net income (loss) attributable to | ||||
Redeemable noncontrolling interests | 43 | 26.8 | 95.3 | 108.5 |
Nonredeemable noncontrolling interests | 15 | (7.7) | 18.8 | (8.5) |
Net income attributable to Franklin Resources, Inc. | $ 174 | $ 227.5 | $ 549.5 | $ 587.3 |
Earnings per Share | ||||
Basic | $ 0.32 | $ 0.44 | $ 1.04 | $ 1.14 |
Diluted | $ 0.32 | $ 0.44 | $ 1.03 | $ 1.14 |
CIPs [Member] | ||||
Other Income (Expenses) | ||||
Investment and other income, net | $ 37.6 | $ 1.7 | $ 103.7 | $ 75.3 |
Expenses of consolidated investment products | (8.8) | (0.8) | (20.6) | (15.7) |
Less: net income (loss) attributable to | ||||
Redeemable noncontrolling interests | 30.8 | 10.5 | 60.6 | 68.5 |
Investment management fees [Member] | ||||
Operating Revenues | ||||
Operating revenues | 1,689.9 | 1,613.4 | 5,056 | 4,818.5 |
Sales and distribution fees [Member] | ||||
Operating Revenues | ||||
Operating revenues | 358.3 | 304 | 1,013 | 897.3 |
Shareholder servicing fees [Member] | ||||
Operating Revenues | ||||
Operating revenues | 61.8 | 38.8 | 162.3 | 115.5 |
Other [Member] | ||||
Operating Revenues | ||||
Operating revenues | $ 12.9 | $ 12.8 | $ 35.5 | $ 32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 232 | $ 246.6 | $ 663.6 | $ 687.3 |
Other Comprehensive Income (Loss) | ||||
Currency translation adjustments, net of tax | (8.5) | 16.5 | 21.1 | 159.7 |
Net unrealized gains (losses) on defined benefit plans, net of tax | (0.1) | (0.6) | 0.3 | (1.4) |
Net unrealized gains (losses) on investments, net of tax | (0.1) | 0 | 0 | 0.2 |
Total other comprehensive income (loss) | (8.7) | 15.9 | 21.4 | 158.5 |
Total comprehensive income | 223.3 | 262.5 | 685 | 845.8 |
Less: comprehensive income (loss) attributable to | ||||
Redeemable noncontrolling interests | 43 | 26.8 | 95.3 | 108.5 |
Nonredeemable noncontrolling interests | 15 | (7.7) | 18.8 | (8.5) |
Comprehensive Income Attributable to Franklin Resources, Inc. | $ 165.3 | $ 243.4 | $ 570.9 | $ 745.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Assets | ||
Receivables | $ 1,570.5 | $ 1,348.4 |
Investments | 2,224.5 | 2,222 |
Total investments, at fair value | 720.4 | 872.8 |
Property and equipment, net | 904.8 | 800.1 |
Goodwill | 6,198.5 | 6,003.8 |
Intangible assets, net | 5,267.8 | 4,902.2 |
Operating lease right-of-use assets | 844.3 | 406.3 |
Other | 501.2 | 398.8 |
Total Assets | 33,254.9 | 30,121.2 |
Liabilities | ||
Compensation and benefits | 1,691.7 | 1,665.1 |
Accounts payable and accrued expenses | 532.2 | 530 |
Income taxes | 382.6 | 513.5 |
Debt | 3,035 | 3,052.8 |
Deferred tax liabilities | 421.1 | 450.4 |
Operating lease liabilities | 975.6 | 467.8 |
Other | 961 | 1,286.2 |
Total liabilities | 18,353.5 | 16,547.3 |
Commitments and Contingencies (Note 11) | ||
Redeemable Noncontrolling Interests | 1,266.2 | 1,026.1 |
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; 522,059,992 and 495,937,891 shares issued and outstanding at June 30, 2024 and September 30, 2023 | 52.2 | 49.6 |
Additional Paid in Capital, Common Stock | 984.6 | 0 |
Retained earnings | 12,321.3 | 12,376.6 |
Accumulated other comprehensive loss | (487.9) | (509.3) |
Total Franklin Resources, Inc. stockholders’ equity | 12,870.2 | 11,916.9 |
Nonredeemable noncontrolling interests | 765 | 630.9 |
Total stockholders’ equity | 13,635.2 | 12,547.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 33,254.9 | 30,121.2 |
CIPs [Member] | ||
Assets | ||
Cash and cash equivalents | 733.2 | 716 |
Receivables | 345.9 | 166.7 |
Total investments, at fair value | 11,631.6 | 9,637.2 |
Total Assets | 12,710.7 | 10,519.9 |
Liabilities | ||
Accounts payable and accrued expenses | 716.6 | 349.7 |
Debt | 9,637.7 | 8,231.8 |
Other | 39.4 | 25.1 |
Total liabilities | 10,393.7 | 8,606.6 |
Redeemable Noncontrolling Interests | 719.3 | 580.1 |
Stockholders’ Equity | ||
Total Franklin Resources, Inc. stockholders’ equity | 1,241 | 1,033.9 |
Nonredeemable noncontrolling interests | 356.7 | 299.3 |
Total stockholders’ equity | 1,597.7 | 1,333.2 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 12,710.7 | 10,519.9 |
Franklin Resources, Inc. [Member] | ||
Assets | ||
Cash and cash equivalents | $ 3,378.5 | $ 3,686.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Investments, at fair value | $ 720.4 | $ 872.8 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 522,059,992 | 495,937,891 |
Common Stock, Shares, Outstanding | 522,059,992 | 495,937,891 |
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, 2022 | 499.6 | ||||||
Beginning balance at Sep. 30, 2022 | $ 50 | $ 0 | $ 12,045.6 | $ (621) | $ 11,474.6 | ||
Beginning balance at Sep. 30, 2022 | $ 824.3 | ||||||
Beginning balance at Sep. 30, 2022 | $ 12,298.9 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 165.6 | 165.6 | |||||
Nonredeemable noncontrolling interests | 3.5 | ||||||
Net income | 169.1 | ||||||
Other comprehensive income (loss) | 124.7 | 124.7 | 124.7 | ||||
Dividends declared on common stock | (153.6) | (153.6) | (153.6) | ||||
Repurchase of common stock - Shares | (0.5) | ||||||
Repurchase of common stock - Amount | (14.2) | $ (0.1) | (69.1) | 55 | (14.2) | ||
Issuance of common stock - Shares | 1.2 | ||||||
Issuance of common stock - Amount | 33.6 | $ 0.1 | 33.5 | 33.6 | |||
Stock-based compensation | 35.6 | 35.6 | 35.6 | ||||
Net subscriptions (distributions) and other | 97.1 | 97.1 | |||||
Adjustment to fair value of redeemable noncontrolling interests | (35.7) | (35.7) | |||||
Ending balance - Shares at Dec. 31, 2022 | 500.3 | ||||||
Ending balance at Dec. 31, 2022 | $ 50 | 0 | 12,112.6 | (496.3) | 11,666.3 | ||
Ending balance at Dec. 31, 2022 | 889.2 | ||||||
Ending balance at Dec. 31, 2022 | 12,555.5 | ||||||
Beginning balance - Shares at Sep. 30, 2022 | 499.6 | ||||||
Beginning balance at Sep. 30, 2022 | $ 50 | 0 | 12,045.6 | (621) | 11,474.6 | ||
Beginning balance at Sep. 30, 2022 | 824.3 | ||||||
Beginning balance at Sep. 30, 2022 | 12,298.9 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 587.3 | ||||||
Nonredeemable noncontrolling interests | (8.5) | ||||||
Other comprehensive income (loss) | 158.5 | ||||||
Ending balance - Shares at Jun. 30, 2023 | 499 | ||||||
Ending balance at Jun. 30, 2023 | $ 49.9 | 0 | 12,360.7 | (462.5) | 11,948.1 | ||
Ending balance at Jun. 30, 2023 | 591.1 | ||||||
Ending balance at Jun. 30, 2023 | 12,539.2 | ||||||
Beginning balance - Shares at Dec. 31, 2022 | 500.3 | ||||||
Beginning balance at Dec. 31, 2022 | $ 50 | 0 | 12,112.6 | (496.3) | 11,666.3 | ||
Beginning balance at Dec. 31, 2022 | 889.2 | ||||||
Beginning balance at Dec. 31, 2022 | 12,555.5 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 194.2 | 194.2 | |||||
Nonredeemable noncontrolling interests | (4.3) | ||||||
Net income | 189.9 | ||||||
Other comprehensive income (loss) | 17.9 | 17.9 | 17.9 | ||||
Dividends declared on common stock | (153.8) | (153.8) | (153.8) | ||||
Repurchase of common stock - Shares | (0.1) | ||||||
Repurchase of common stock - Amount | (3.6) | $ 0 | (66) | 62.4 | (3.6) | ||
Issuance of common stock - Shares | 0.7 | ||||||
Issuance of common stock - Amount | 25.3 | $ 0.1 | 25.2 | 25.3 | |||
Stock-based compensation | 40.8 | 40.8 | 40.8 | ||||
Net subscriptions (distributions) and other | 50.1 | 50.1 | |||||
Adjustment to fair value of redeemable noncontrolling interests | (324.2) | (324.2) | |||||
Adjustment to fair value | 44.7 | 44.7 | 44.7 | ||||
Ending balance - Shares at Mar. 31, 2023 | 500.9 | ||||||
Ending balance at Mar. 31, 2023 | $ 50.1 | 0 | 12,260.1 | (478.4) | 11,831.8 | ||
Ending balance at Mar. 31, 2023 | 610.8 | ||||||
Ending balance at Mar. 31, 2023 | 12,442.6 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 227.5 | 227.5 | 227.5 | ||||
Nonredeemable noncontrolling interests | (7.7) | (7.7) | |||||
Net income | 219.8 | ||||||
Other comprehensive income (loss) | 15.9 | 15.9 | 15.9 | ||||
Dividends declared on common stock | (152.9) | (152.9) | (152.9) | ||||
Repurchase of common stock - Shares | (2) | ||||||
Repurchase of common stock - Amount | (50.9) | $ (0.2) | (15.9) | (34.8) | (50.9) | ||
Issuance of common stock - Shares | 0.1 | ||||||
Issuance of common stock - Amount | 3.6 | $ 0 | 3.6 | 3.6 | |||
Stock-based compensation | 12.3 | 12.3 | 12.3 | ||||
Net subscriptions (distributions) and other | (11.3) | (11.3) | |||||
Adjustment to fair value of redeemable noncontrolling interests | (0.7) | (0.7) | |||||
Adjustment to fair value | 60.8 | 60.8 | 60.8 | ||||
Ending balance - Shares at Jun. 30, 2023 | 499 | ||||||
Ending balance at Jun. 30, 2023 | $ 49.9 | 0 | 12,360.7 | (462.5) | 11,948.1 | ||
Ending balance at Jun. 30, 2023 | 591.1 | ||||||
Ending balance at Jun. 30, 2023 | 12,539.2 | ||||||
Beginning balance - Shares at Sep. 30, 2023 | 495.9 | ||||||
Beginning balance at Sep. 30, 2023 | 11,916.9 | $ 49.6 | 0 | 12,376.6 | (509.3) | 11,916.9 | |
Beginning balance at Sep. 30, 2023 | 630.9 | 630.9 | |||||
Beginning balance at Sep. 30, 2023 | 12,547.8 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 251.3 | 251.3 | |||||
Nonredeemable noncontrolling interests | (4.5) | ||||||
Net income | 246.8 | ||||||
Other comprehensive income (loss) | 59 | 59 | 59 | ||||
Dividends declared on common stock | (167.6) | (167.6) | (167.6) | ||||
Repurchase of common stock - Shares | (2.4) | ||||||
Repurchase of common stock - Amount | (58.8) | $ (0.2) | (66.6) | 8 | (58.8) | ||
Issuance of common stock - Shares | 1.2 | ||||||
Issuance of common stock - Amount | 26.8 | $ 0.1 | 26.7 | 26.8 | |||
Stock-based compensation | 39.9 | 39.9 | 39.9 | ||||
Net subscriptions (distributions) and other | 9.6 | 9.6 | |||||
Adjustment to fair value | (65.9) | (65.9) | (65.9) | ||||
Ending balance - Shares at Dec. 31, 2023 | 494.7 | ||||||
Ending balance at Dec. 31, 2023 | $ 49.5 | 0 | 12,402.4 | (450.3) | 12,001.6 | ||
Ending balance at Dec. 31, 2023 | 636 | ||||||
Ending balance at Dec. 31, 2023 | 12,637.6 | ||||||
Beginning balance - Shares at Sep. 30, 2023 | 495.9 | ||||||
Beginning balance at Sep. 30, 2023 | 11,916.9 | $ 49.6 | 0 | 12,376.6 | (509.3) | 11,916.9 | |
Beginning balance at Sep. 30, 2023 | 630.9 | 630.9 | |||||
Beginning balance at Sep. 30, 2023 | 12,547.8 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 549.5 | ||||||
Nonredeemable noncontrolling interests | 18.8 | ||||||
Other comprehensive income (loss) | 21.4 | ||||||
Ending balance - Shares at Jun. 30, 2024 | 522.1 | ||||||
Ending balance at Jun. 30, 2024 | 12,870.2 | $ 52.2 | 984.6 | 12,321.3 | (487.9) | 12,870.2 | |
Ending balance at Jun. 30, 2024 | 765 | 765 | |||||
Ending balance at Jun. 30, 2024 | 13,635.2 | ||||||
Beginning balance - Shares at Dec. 31, 2023 | 494.7 | ||||||
Beginning balance at Dec. 31, 2023 | $ 49.5 | 0 | 12,402.4 | (450.3) | 12,001.6 | ||
Beginning balance at Dec. 31, 2023 | 636 | ||||||
Beginning balance at Dec. 31, 2023 | 12,637.6 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 124.2 | 124.2 | |||||
Nonredeemable noncontrolling interests | 8.3 | ||||||
Net income | 132.5 | ||||||
Other comprehensive income (loss) | (28.9) | (28.9) | (28.9) | ||||
Dividends declared on common stock | (169.3) | (169.3) | (169.3) | ||||
Repurchase of common stock - Shares | (0.4) | ||||||
Repurchase of common stock - Amount | (11.7) | $ (0.1) | (11.6) | 0 | (11.7) | ||
Issuance of common stock - Shares | 0.3 | ||||||
Issuance of common stock - Amount | 10.7 | $ 0 | 10.7 | 10.7 | |||
Stock-based compensation | 86.3 | 86.3 | 86.3 | ||||
Acquisition | 25.8 | ||||||
Stock Issued During Period, Value, Acquisitions | 965.9 | $ 3.2 | 936.9 | 940.1 | |||
Stock Issued During Period, Shares, Acquisitions | 31.6 | ||||||
Net subscriptions (distributions) and other | 63.1 | 63.1 | |||||
Adjustment to fair value of redeemable noncontrolling interests | (12.6) | (12.6) | |||||
Adjustment to fair value | (91.9) | (91.9) | (91.9) | ||||
Ending balance - Shares at Mar. 31, 2024 | 526.2 | ||||||
Ending balance at Mar. 31, 2024 | $ 52.6 | 1,022.3 | 12,265.4 | (479.2) | 12,861.1 | ||
Ending balance at Mar. 31, 2024 | 720.6 | ||||||
Ending balance at Mar. 31, 2024 | 13,581.7 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Franklin Resources, Inc. | 174 | 174 | 174 | ||||
Nonredeemable noncontrolling interests | 15 | 15 | |||||
Net income | 189 | ||||||
Other comprehensive income (loss) | (8.7) | (8.7) | (8.7) | ||||
Dividends declared on common stock | (167) | (167) | (167) | ||||
Repurchase of common stock - Shares | (4.3) | ||||||
Repurchase of common stock - Amount | (101.5) | $ (0.4) | (101.1) | 0 | (101.5) | ||
Issuance of common stock - Shares | 0.2 | ||||||
Issuance of common stock - Amount | 4.5 | $ 0 | 4.5 | 4.5 | |||
Stock-based compensation | 58.9 | 58.9 | 58.9 | ||||
Net subscriptions (distributions) and other | 29.4 | 29.4 | |||||
Adjustment to fair value | 48.9 | 48.9 | 48.9 | ||||
Ending balance - Shares at Jun. 30, 2024 | 522.1 | ||||||
Ending balance at Jun. 30, 2024 | 12,870.2 | $ 52.2 | $ 984.6 | $ 12,321.3 | $ (487.9) | $ 12,870.2 | |
Ending balance at Jun. 30, 2024 | 765 | $ 765 | |||||
Ending balance at Jun. 30, 2024 | $ 13,635.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per share | $ 0.31 | $ 0.31 | $ 0.31 | $ 0.30 | $ 0.30 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Net cash provided by operating activities | ||
Net Income | $ 663.6 | $ 687.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 194.6 | 137.9 |
Amortization of deferred sales commissions | 43.3 | 37.2 |
Depreciation and other amortization | 86.5 | 78.3 |
Amortization of intangible assets | 254.4 | 254.6 |
Net gains on investments | (17.3) | (62.3) |
Income (losses) from investments in equity method investees | (122.3) | (43.5) |
Net losses on investments of consolidated investment products | 19.4 | 116 |
Net purchase of investments by consolidated investment products | (459.5) | (833.2) |
Deferred income taxes | (35) | 50.8 |
Other | 135.3 | 58.6 |
Changes in operating assets and liabilities: | ||
Increase in receivables and other assets | (61.4) | (69.8) |
Decrease in investments, net | 23.8 | 6.4 |
Decrease in accrued compensation and benefits | (35) | (84.3) |
Decrease in income taxes payable | (127.8) | (58.9) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (55.8) | 48.3 |
Increase (decrease) in accounts payable and accrued expenses of consolidated investment products | (93.7) | 1.3 |
Net cash provided by operating activities | 413.1 | 324.7 |
Net cash used in investing activities | ||
Purchase of investments | (952) | (665.1) |
Liquidation of investments | 1,149.5 | 524.3 |
Purchase of investments by consolidated collateralized loan obligations | (4,099.1) | (3,465.6) |
Liquidation of investments by consolidated collateralized loan obligations | 3,034 | 1,230.3 |
Additions of property and equipment, net | (107.3) | (121.5) |
Acquisitions, net of cash acquired (including $281.4 in cash and cash equivalents of consolidated investment products in fiscal year 2024) | 175.1 | (500.5) |
Payments of contingent consideration asset | 0 | 5.5 |
Payments of deferred consideration liability | (434.9) | (241.8) |
Net consolidation (deconsolidation) of investment products | 12 | (43.8) |
Net cash used in investing activities | (1,222.7) | (3,278.2) |
Net cash provided by financing activities | ||
Issuance of common stock | 7.3 | 13.4 |
Dividends paid on common stock | (489.3) | (454.8) |
Repurchase of common stock | (172) | (70) |
Proceeds from repurchase agreement | 0 | 174.8 |
Payments on repurchase agreement | (45.8) | 0 |
Proceeds from debt of consolidated investment products | 1,617.6 | 3,213.6 |
Payments on debt of consolidated investment products | (609.2) | (926.9) |
Payments on contingent consideration liabilities | (5.1) | (7.6) |
Noncontrolling interests | 202.9 | 550.1 |
Net cash provided by financing activities | 506.4 | 2,492.6 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | 12.5 | 66 |
Decrease in cash and cash equivalents | (290.7) | (394.9) |
Cash and cash equivalents, beginning of period | 4,402.4 | 4,782.5 |
Cash and Cash Equivalents, End of Period | 4,111.7 | 4,387.6 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for income taxes | 357.9 | 225.4 |
Cash paid for interest | 67.5 | 55.5 |
Cash paid for interest by consolidated investment products | $ 522.2 | $ 232.2 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements of Franklin Resources, Inc. (“Franklin”) and its consolidated subsidiaries (collectively, the “Company”) included herein have been prepared in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. Management also 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. These financial statements should be read together with the Company’s audited financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (“fiscal year 2023”). During the quarter ended March 31, 2024, the Company identified that it did not eliminate the investment income from certain consolidated limited partnerships for the fiscal year ended September 30, 2023, resulting in offsetting adjustments to investment and other income, net and net income attributable to nonredeemable noncontrolling interest. The Company is not entitled to the economic returns associated with the underlying investments held by these limited partnerships. There is no impact on operating income, net income attributable to Franklin Resources, Inc., earnings per share, total assets, total liabilities, retained earnings or total shareholders’ equity. There is no impact on the financial results attributable to the Company’s shareholders. The Company has determined this did not result in a material misstatement to its previously issued consolidated financial statements. For comparability, the Company has revised the comparative prior period amounts included in the consolidated statements of income, consolidated statements of stockholders’ equity, consolidated statements of cash flows, and related footnote disclosures. The impacts on the consolidated statements of income for the three and nine months ended June 30, 2023 are as follows: (in millions) Three Months Ended Nine Months Ended As Reported Adjustments As Revised As Reported Adjustments As Revised Operating Income $ 314.9 $ — $ 314.9 $ 764.0 $ — $ 764.0 Other income, net Investment and other income, net 51.2 (1.4) 49.8 267.9 (67.6) 200.3 Other income, net 17.2 (1.4) 15.8 228.2 (67.6) 160.6 Income before taxes 332.1 (1.4) 330.7 992.2 (67.6) 924.6 Net income 248.0 (1.4) 246.6 754.9 (67.6) 687.3 Less: net income (loss) attributable to nonredeemable noncontrolling interest (6.3) (1.4) (7.7) 59.1 (67.6) (8.5) Net Income Attributable to Franklin Resources, Inc. 227.5 — 227.5 587.3 — 587.3 The impact on the consolidated statement of cash flows for the nine months ended June 30, 2023 are as follows: (in millions) Nine Months Ended As Reported Adjustments As Revised Net cash provided by (used in) operating activities $ 365.3 $ (40.6) $ 324.7 Net cash used in investing activities (3,251.2) (27.0) (3,278.2) Net cash provided by financing activities 2,425.0 67.6 2,492.6 Decrease in cash and cash equivalents (394.9) — (394.9) |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance | New Accounting Guidance Accounting Guidance Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued an amendment to the existing segment reporting guidance. The amendment requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker by reportable segment and clarifies that single reportable segment entities are required to apply all existing segment disclosures in the guidance. The amendment is effective for the Company on October 1, 2024, and is retrospectively applicable to all prior periods presented in its consolidated financial statements. The Company is currently evaluating the impact that the adoption will have on its consolidated financial statements. In December 2023, the FASB issued an amendment to the existing income taxes guidance. The amendment requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes. The amendment allows for either a prospective or retrospective approach on adoption and is effective for the Company on October 1, 2025. The Company is currently evaluating the impact that the adoption will have on its consolidated financial statements and has not yet determined its transition approach. |
Acquisitions
Acquisitions | Jan. 01, 2024 |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition Putnam Investments On January 1, 2024, the Company acquired Putnam Investments (“Putnam”) from Great-West Lifeco Inc. (“Great-West”) for 31.6 1 million shares of its common stock, cash consideration paid at close of $221.7 million for investments and other purchase-related amounts, and deferred cash consideration of $100.0 million paid on July 1, 2024. The cash consideration paid at close and the deferred cash consideration were funded from existing cash. See below for a summary of the total purchase consideration transferred at closing: (in millions) Total Equity consideration 1, 2 $ 940.1 Cash consideration 221.7 Deferred cash consideration 100.0 Less: Other adjustments 3 (27.4) Total Purchase Consideration $ 1,234.4 1 Excludes shares granted under a deferred compensation program. 2 Market price on closing date of $29.79. 3 Primarily relates to payments treated as future compensation expense. Great-West became a long-term shareholder of the Company with an approximate 6.0% stake in the common stock of the Company as of the acquisition date. Shares representing 4.9% of the Company’s outstanding Common Stock at closing are subject to a five The acquisition of Putnam accelerates the Company’s growth in the retirement sector by increasing the amount of the Company’s defined contribution AUM. Additionally, the acquisition expands the Company’s insurance assets, further strengthening its presence in these key market segments to better serve clients. The following table summarizes the initial and revised estimated fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the acquisition date. The issuance of common stock consideration represents a non-cash financing activity related to the statement of cash flows. (in millions) Initial Estimated Fair Value Adjustments Revised Estimated Fair Value as of January 1, 2024 Cash and cash equivalents $ 101.1 $ — $ 101.1 Receivables 118.9 — 118.9 Investments 111.2 — 111.2 Assets of consolidated investment products Cash and cash equivalents 281.4 — 281.4 Investments, at fair value 849.5 — 849.5 Property and equipment 87.1 (5.7) 81.4 Goodwill 189.8 0.4 190.2 Indefinite-lived intangible assets 542.5 14.7 557.2 Definite-lived intangible asset 52.9 4.8 57.7 Operating lease right-of-use assets 109.2 — 109.2 Other assets 20.4 — 20.4 Compensation and benefits (57.8) — (57.8) Accounts payable and accrued expenses (40.9) (11.4) (52.3) Liabilities of consolidated investment products Accounts payable and accrued expenses (259.6) — (259.6) Debt (706.8) — (706.8) Operating lease liabilities (109.2) — (109.2) Other liabilities (12.1) — (12.1) Redeemable noncontrolling interests (20.2) — (20.2) Nonredeemable noncontrolling interests (25.8) — (25.8) Total Identifiable Net Assets $ 1,231.6 $ 2.8 $ 1,234.4 The adjustments to the initial estimated fair values are primarily a result of new information obtained about facts that existed as of the acquisition date. The purchase price allocation is preliminary and subject to change during the measurement period, which is not to exceed one year from the acquisition date. At this time, the Company does not expect material changes to the assets acquired or liabilities assumed. The goodwill is primarily attributable to expected growth opportunities from the combined operations and is expected to be deductible for tax purposes. The definite-lived intangible asset relates to trade name, which is amortized over its estimated useful life of 10.0 years. Amortization expense related to the trade name was $1.6 million and $2.9 million for the three and nine months ended June 30, 2024. The estimated remaining amortization expense is $1.4 million for the year and $5.8 million per year thereafter. Transaction costs incurred in connection with the acquisition were $18.3 million for the nine months ended June 30, 2024. These costs are primarily comprised of professional fees, recorded in general, administrative and other expenses. The Company also incurred $132.0 million of acquisition-related compensation and benefits expense during the period, primarily related to the acceleration of expense for historical Putnam compensation arrangements, retention bonuses and termination benefits. In addition, the Company will pay up to $375.0 million between the third and seventh anniversaries of the closing date related to revenue growth targets from the strategic partnership with Great-West and its affiliates which will be recognized in operating income. Operating revenues of the acquired business from January 1, 2024 through June 30, 2024 were approximately $430 million. Net income is not available to be separately reported due to the ongoing integration of the combined businesses. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2024 | |
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) Three Months Ended June 30, Nine Months Ended June 30, 2024 2023 2024 2023 Net income attributable to Franklin Resources, Inc. $ 174.0 $ 227.5 $ 549.5 $ 587.3 Less: allocation of earnings to participating nonvested stock and stock unit awards 7.5 10.2 23.8 26.7 Net Income Available to Common Stockholders $ 166.5 $ 217.3 $ 525.7 $ 560.6 Weighted-average shares outstanding – basic 516.5 490.7 507.2 490.3 Dilutive effect of nonparticipating nonvested stock unit awards 0.7 0.7 0.8 0.7 Weighted-Average Shares Outstanding – Diluted 517.2 491.4 508.0 491.0 Earnings per Share Basic $ 0.32 $ 0.44 $ 1.04 $ 1.14 Diluted 0.32 0.44 1.03 1.14 There were no nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive for the three and nine months ended June 30, 2024 and such awards were insignificant for the three and nine months ended June 30, 2023. |
Revenues
Revenues | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Operating revenues by geographic area were as follows: (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the three months ended June 30, 2024 Investment management fees $ 1,273.7 $ 216.2 $ 71.8 $ 59.1 $ 69.1 $ 1,689.9 Sales and distribution fees 256.8 86.7 4.7 10.1 — 358.3 Shareholder servicing fees 53.2 8.1 0.5 — — 61.8 Other 12.7 — 0.2 — — 12.9 Total $ 1,596.4 $ 311.0 $ 77.2 $ 69.2 $ 69.1 $ 2,122.9 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the nine months ended June 30, 2024 Investment management fees $ 3,819.8 $ 630.1 $ 210.2 $ 173.8 $ 222.1 $ 5,056.0 Sales and distribution fees 718.8 250.3 14.3 29.6 — 1,013.0 Shareholder servicing fees 136.8 23.6 1.8 0.1 — 162.3 Other 31.1 0.7 3.4 — 0.3 35.5 Total $ 4,706.5 $ 904.7 $ 229.7 $ 203.5 $ 222.4 $ 6,266.8 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the three months ended June 30, 2023 Investment management fees $ 1,232.3 $ 192.3 $ 64.3 $ 53.9 $ 70.6 $ 1,613.4 Sales and distribution fees 213.5 75.4 5.1 10.0 — 304.0 Shareholder servicing fees 30.3 8.0 0.5 — — 38.8 Other 11.9 0.5 0.4 — — 12.8 Total $ 1,488.0 $ 276.2 $ 70.3 $ 63.9 $ 70.6 $ 1,969.0 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the nine months ended June 30, 2023 Investment management fees $ 3,672.9 $ 570.7 $ 214.4 $ 162.0 $ 198.5 $ 4,818.5 Sales and distribution fees 634.1 217.4 15.1 30.7 — 897.3 Shareholder servicing fees 90.2 23.5 1.6 0.2 — 115.5 Other 30.1 0.8 0.8 — 0.3 32.0 Total $ 4,427.3 $ 812.4 $ 231.9 $ 192.9 $ 198.8 $ 5,863.3 Operating revenues are attributed to geographic areas based on the locations of the subsidiaries that provide the services, which may differ from the regions in which the related investment products are sold. Revenues earned from sponsored funds were 82% of the Company’s total operating revenues for the three and nine months ended June 30, 2024 and 83% for the three and nine months ended June 30, 2023. |
Investments
Investments | 9 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Investments | Investments The disclosures below include details of the Company’s investments, excluding those of consolidated investment products (“CIPs”). See Note 8 – Consolidated Investment Products for information related to the investments held by these entities. Investments consisted of the following: (in millions) June 30, September 30, Investments, at fair value Sponsored funds and separate accounts $ 417.5 $ 630.5 Investments related to long-term incentive plans 247.1 191.6 Other equity and debt investments 55.8 50.7 Total investments, at fair value 720.4 872.8 Investments in equity method investees 1,227.2 1,089.2 Other investments 276.9 260.0 Total $ 2,224.5 $ 2,222.0 The Company has entered into repurchase agreements with a third-party financing company for certain investments held by the Company. As of June 30, 2024, other liabilities includes repurchase agreements of $135.9 million with investments of $148.6 million in carrying value pledged as collateral. The repurchase agreements have contractual maturity dates ranging between 2029 to 2035. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2024 | |
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 8 – Consolidated Investment Products for information related to fair value measurements of the assets and liabilities of these entities. The assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Total as of June 30, 2024 Assets Investments, at fair value Sponsored funds and separate accounts $ 226.9 $ 143.2 $ 7.0 $ 40.4 $ 417.5 Investments related to long-term incentive plans 220.2 — — 26.9 247.1 Other equity and debt investments 3.9 10.2 2.6 39.1 55.8 Total Assets Measured at Fair Value $ 451.0 $ 153.4 $ 9.6 $ 106.4 $ 720.4 Liabilities Securities sold short $ 150.2 $ — $ — $ — $ 150.2 Contingent consideration liabilities — — 46.1 — 46.1 Total Liabilities Measured at Fair Value $ 150.2 $ — $ 46.1 $ — $ 196.3 (in millions) Level 1 Level 2 Level 3 NAV as a Total as of September 30, 2023 Assets Investments, at fair value Sponsored funds and separate accounts $ 356.5 $ 211.9 $ 18.5 $ 43.6 $ 630.5 Investments related to long-term incentive plans 168.2 — — 23.4 191.6 Other equity and debt investments 3.4 11.3 3.3 32.7 50.7 Total Assets Measured at Fair Value $ 528.1 $ 223.2 $ 21.8 $ 99.7 $ 872.8 Liabilities Securities sold short $ 158.3 $ — $ — $ — $ 158.3 Contingent consideration liabilities — — 55.0 — 55.0 Total Liabilities Measured at Fair Value $ 158.3 $ — $ 55.0 $ — $ 213.3 Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private equity, debt and infrastructure funds, and redeemable alternative credit, global equity and private real estate funds. These investments were as follows: (in millions) June 30, September 30, Nonredeemable investments 1 Investments with known liquidation periods $ 34.7 $ 32.1 Investments with unknown liquidation periods 16.3 17.4 Redeemable investments 2 55.4 50.2 Unfunded commitments 14.0 43.1 _______________ 1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets. Investments with known liquidation periods have an expected weighted-average life of 2.3 years and 2.9 years at June 30, 2024 and September 30, 2023. 2 Investments are redeemable on a semi-monthly, monthly and quarterly basis. Financial instruments that were not measured at fair value were as follows: (in millions) Fair Value June 30, 2024 September 30, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 3,378.5 $ 3,378.5 $ 3,686.4 $ 3,686.4 Other investments Time deposits 2 9.4 9.4 9.9 9.9 Equity securities 3 267.5 267.5 250.1 250.1 Financial Liability Debt 2 $ 3,035.0 $ 2,532.2 $ 3,052.8 $ 2,419.4 |
Consolidated Investment Product
Consolidated Investment Products | 9 Months Ended |
Jun. 30, 2024 | |
Consolidated Investment Products [Abstract] | |
Consolidated Investment Products | Consolidated Investment Products CIPs consist of mutual and other investment funds, limited partnerships and similar structures and CLOs, all of which are sponsored by the Company, and include both voting interest entities and variable interest entities (“VIEs”). The Company had 85 CIPs, including 25 CLOs, as of June 30, 2024 and 70 CIPs, including 20 CLOs, as of September 30, 2023. The balances related to CIPs included in the Company’s consolidated balance sheets were as follows: (in millions) June 30, September 30, Assets Cash and cash equivalents $ 733.2 $ 716.0 Receivables 345.9 166.7 Investments, at fair value 11,631.6 9,637.2 Total Assets $ 12,710.7 $ 10,519.9 Liabilities Accounts payable and accrued expenses $ 716.6 $ 349.7 Debt 9,637.7 8,231.8 Other liabilities 39.4 25.1 Total liabilities 10,393.7 8,606.6 Redeemable Noncontrolling Interests 719.3 580.1 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,241.0 1,033.9 Nonredeemable noncontrolling interests 356.7 299.3 Total stockholders’ equity 1,597.7 1,333.2 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 12,710.7 $ 10,519.9 The CIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2024 and 2023. The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management and other 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. Fair Value Measurements Assets of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Total as of June 30, 2024 Assets Cash and cash equivalents of CLOs $ 514.0 $ — $ — $ — $ 514.0 Receivables of CLOs — 214.7 — — 214.7 Investments Equity and debt securities 266.5 1,055.6 578.0 164.5 2,064.6 Loans — 9,567.0 — — 9,567.0 Total Assets Measured at Fair Value $ 780.5 $ 10,837.3 $ 578.0 $ 164.5 $ 12,360.3 (in millions) Level 1 Level 2 Level 3 NAV as a Total as of September 30, 2023 Assets Cash and cash equivalents of CLOs $ 352.3 $ — $ — $ — $ 352.3 Receivables of CLOs — 116.7 — — 116.7 Investments Equity and debt securities 210.9 642.6 584.9 154.0 1,592.4 Loans — 8,044.8 — — 8,044.8 Total Assets Measured at Fair Value $ 563.2 $ 8,804.1 $ 584.9 $ 154.0 $ 10,106.2 Investments for which fair value was estimated using reported NAV as a practical expedient consist of a redeemable U.S. equity fund, a redeemable global hedge fund and nonredeemable private debt funds. These investments were as follows: (in millions) June 30, September 30, Nonredeemable investments 1 Investments with unknown liquidation periods $ 23.6 $ 21.8 Redeemable investments 2 140.9 132.2 _______________ 1 The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets. 2 Investments are redeemable on a monthly basis and liquidation periods are unknown. Changes in Level 3 assets were as follows: (in millions) Equity and Debt for the three months ended June 30, 2024 Balance at April 1, 2024 $ 591.0 Losses included in investment and other income of consolidated investment products, net (29.8) Purchases 17.5 Sales (0.7) Balance at June 30, 2024 $ 578.0 Change in unrealized losses included in net income relating to assets held at June 30, 2024 $ (29.8) (in millions) Equity and Debt for the nine months ended June 30, 2024 Balance at October 1, 2023 $ 584.9 Acquisition 29.6 Losses included in investment and other income of consolidated investment products, net (68.0) Purchases 44.1 Sales (1.2) Net deconsolidations (12.5) Transfers into Level 3 1.1 Balance at June 30, 2024 $ 578.0 Change in unrealized losses included in net income relating to assets held at June 30, 2024 $ (67.4) (in millions) Equity and Debt Loans Total for the three months ended June 30, 2023 Balance at April 1, 2023 $ 539.0 $ 3.1 $ 542.1 Gains (losses) included in investment and other income of consolidated investment products, net (31.6) 0.1 (31.5) Purchases 61.2 (0.2) 61.0 Sales (0.1) 0.2 0.1 Transfers into Level 3 — 0.5 0.5 Transfers out of Level 3 (0.3) — (0.3) Balance at June 30, 2023 $ 568.2 $ 3.7 $ 571.9 Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2023 $ (32.0) $ 0.1 $ (31.9) (in millions) Equity and Debt Real Estate Loans Total for the nine months ended June 30, 2023 Balance at October 1, 2022 $ 555.8 $ 268.6 $ 239.4 $ 1,063.8 Gains (losses) included in investment and other income of consolidated investment products, net (56.3) (9.0) 0.2 (65.1) Purchases 83.7 86.1 58.4 228.2 Sales (25.1) — — (25.1) Net (deconsolidations) consolidations 10.4 (345.7) (292.6) (627.9) Transfers into Level 3 — — 3.6 3.6 Transfers out of Level 3 (0.3) — (5.3) (5.6) Balance at June 30, 2023 $ 568.2 $ — $ 3.7 $ 571.9 Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2023 $ (55.0) $ — $ 0.1 $ (54.9) Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows: (in millions) as of June 30, 2024 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 ) Equity and debt securities $ 253.0 Market pricing Private sale pricing $0.01–$1,000.00 ($76.55) per share Discount for lack of marketability 8.2%–19.5% (9.0%) 282.1 Market comparable companies Enterprise value/ Revenue multiple 1.5–21.2 (13.1) Discount for lack of marketability 6.5%–16.1% (12.8%) 42.9 Discounted cash flow Discount rate 6.7% (in millions) as of September 30, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 ) Equity and debt securities $ 346.0 Market pricing Private sale pricing $0.01–$1,000.00 ($23.88) per share Discount for lack of marketability 21.9% 238.9 Market comparable companies Enterprise value/ Revenue multiple 11.4–13.5 (12.1) Discount for lack of marketability 11.2%–13.6% (12.2%) __________________ 1 Based on the relative fair value of the instruments. If the relevant significant inputs used in the market-based valuations, other than discount for lack of marketability, were independently higher (lower) as of June 30, 2024, the resulting fair value of the assets would be higher (lower). If the relevant significant inputs used in the discounted cash flow, as well as the discount for lack of marketability used in the market-based valuations, were independently higher (lower) as of June 30, 2024, the resulting fair value of the assets would be lower (higher). Financial instruments of CIPs that were not measured at fair value were as follows: (in millions) Fair Value June 30, 2024 September 30, 2023 Carrying Estimated Carrying Estimated Financial Asset Cash and cash equivalents 1 $ 219.2 $ 219.2 $ 363.7 $ 363.7 Financial Liabilities Debt of CLOs 1 2 or 3 $ 9,607.7 $ 9,352.6 $ 8,210.0 $ 8,013.2 Other debt 2 or 3 30.0 30.0 21.8 8.6 __________________ 1 Substantially all was Level 2. Debt Debt of CIPs consisted of the following: June 30, 2024 September 30, 2023 (in millions) Amount Weighted- Amount Weighted- Debt of CLOs $ 9,607.7 7.44% $ 8,210.0 7.12% Other debt 30.0 4.19% 21.8 6.00% Total $ 9,637.7 $ 8,231.8 The debt of CIPs had fixed and floating interest rates ranging from 0.25% to 15.76% at June 30, 2024, and from 2.39% to 15.49% at September 30, 2023. The floating rates were based on the Secured Overnight Financing Rate. The contractual maturities for the debt of CIPs at June 30, 2024 were as follows: (in millions) for the fiscal years ending September 30, Amount 2024 (remainder of year) $ 57.3 2025 68.8 2026 24.3 2027 — 2028 — Thereafter 9,487.3 Total $ 9,637.7 Collateralized Loan Obligations The unpaid principal balance and fair value of the investments of CLOs were as follows: (in millions) June 30, September 30, Unpaid principal balance $ 9,709.2 $ 8,317.5 Difference between unpaid principal balance and fair value 32.4 (120.7) Fair Value $ 9,741.6 $ 8,196.8 Investments 90 days or more past due were immaterial at June 30, 2024 and September 30, 2023. The Company recognized $9.4 million and $39.9 million of net gains during the three and nine months ended June 30, 2024 and $6.5 million and $9.0 million of net gains during the three and nine months ended June 30, 2023, related to its own economic interests in the CLOs. The aggregate principal amount due of the debt of CLOs was $9,488.5 million and $8,281.5 million at June 30, 2024 and September 30, 2023. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure | Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests were as follows: (in millions) 2024 2023 CIPs Minority Interests Total CIPs Minority Interests Total for the three months ended June 30, Balance at beginning of period $ 643.5 $ 610.4 $ 1,253.9 $ 445.6 $ 514.9 $ 960.5 Net income 30.8 12.2 43.0 10.5 16.3 26.8 Net subscriptions (distributions) and other 142.3 (26.8) 115.5 30.2 (11.2) 19.0 Net consolidations (deconsolidations) (97.3) — (97.3) 104.6 — 104.6 Adjustment to fair value — (48.9) (48.9) — (60.8) (60.8) Balance at End of Period $ 719.3 $ 546.9 $ 1,266.2 $ 590.9 $ 459.2 $ 1,050.1 (in millions) 2024 2023 CIPs Minority Interests Total CIPs Minority Interests Total for the nine months ended June 30, Balance at beginning of period $ 580.1 $ 446.0 $ 1,026.1 $ 942.2 $ 583.6 $ 1,525.8 Net income 60.6 34.7 95.3 68.5 40.0 108.5 Net subscriptions (distributions) and other 171.9 (42.7) 129.2 498.2 (58.9) 439.3 Net deconsolidations (113.5) — (113.5) (918.0) — (918.0) Acquisition 20.2 — 20.2 — — — Adjustment to fair value — 108.9 108.9 — (105.5) (105.5) Balance at End of Period $ 719.3 $ 546.9 $ 1,266.2 $ 590.9 $ 459.2 $ 1,050.1 |
Nonconsolidated Variable Intere
Nonconsolidated Variable Interest Entities | 9 Months Ended |
Jun. 30, 2024 | |
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, investment management and other fee receivables as follows: (in millions) June 30, September 30, Investments $ 1,021.9 $ 925.9 Receivables 209.9 206.1 Total $ 1,231.8 $ 1,132.0 While the Company has no legal or contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. As it has done in the past, the Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives. The Company did not provide financial or other support to its sponsored funds assessed as VIEs during the nine months ended June 30, 2024 or fiscal year 2023. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings India Credit Fund Closure Matters . During the nine months ended June 30, 2024, there were no significant changes from the disclosure in the Form 10‑K for the fiscal year ended September 30, 2023. Other Litigation and Regulatory Matters. Following the launch of an internal investigation focusing on certain past trade allocations of treasury derivatives in select Western Asset Management (“WAM”) managed accounts, WAM received notification of parallel investigations by the SEC and U.S. Department of Justice. The Company is cooperating with the investigations. 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 June 30, 2024 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount. Indemnifications and Guarantees In the ordinary course of business or in connection with certain acquisition agreements, the Company enters into contracts that provide for indemnifications by the Company in certain circumstances. In addition, certain Company entities guarantee certain financial and performance-related obligations of various Franklin subsidiaries. The Company is also subject to certain legal requirements and agreements providing for indemnifications of directors, officers and personnel against liabilities and expenses they may incur under certain circumstances in connection with their service. The terms of these indemnities and guarantees vary pursuant to applicable facts and circumstances, and from agreement to agreement. Future payments for claims against the Company under these indemnities or guarantees could negatively impact the Company’s financial condition. In management’s opinion, no material loss was deemed probable or reasonably possible pursuant to such indemnification agreements and/or guarantees as of June 30, 2024. Other Commitments and Contingencies On November 1, 2023, the Company took possession of office space in New York City located at One Madison Avenue. At the time of possession, the Company recognized an operating lease right-of-use asset and a corresponding operating lease liability of $396.6 million. The lease agreement is over sixteen years with an aggregate expected commitment of $707.3 million and is part of a corporate initiative to consolidate existing office space in New York City. At June 30, 2024, there were no other material changes in the other commitments and contingencies as reported in the Company’s Annual Report on Form 10-K for fiscal year 2023. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Performance- Total Weighted- for the nine months ended June 30, 2024 Nonvested balance at October 1, 2023 12,782 3,099 15,881 $ 23.09 Granted 11,909 627 12,536 25.86 Vested (1,255) (162) (1,417) 23.86 Forfeited/canceled (305) (500) (805) 22.11 Nonvested Balance at June 30, 2024 23,131 3,064 26,195 $ 24.40 Total unrecognized compensation expense related to nonvested stock and stock unit awards was $254.6 million at June 30, 2024. This expense is expected to be recognized over a remaining weighted-average vesting period of 2.0 years. |
Investment and Other Income, Ne
Investment and Other Income, Net | 9 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses) | Investment and Other Income, Net Investment and other income, net consisted of the following: Three Months Ended June 30, Nine Months Ended June 30, (in millions) 2024 2023 2024 2023 Dividend and interest income $ 39.8 $ 42.7 $ 132.6 $ 111.5 Gains (losses) on investments, net (24.3) 13.8 17.3 62.3 Income (losses) from investments in equity method investees 41.0 (9.1) 122.3 43.5 Gains (losses) on derivatives, net 3.1 (5.1) (11.5) (19.4) Rental income 11.1 11.1 32.8 35.1 Foreign currency exchange gains (losses), net 1.2 (6.6) (7.5) (40.2) Other, net 2.6 3.0 14.2 7.5 Investment and other income, net $ 74.5 $ 49.8 $ 300.2 $ 200.3 Net gains (losses) recognized on equity securities measured at fair value and trading debt securities that were held by the Company were $(6.9) million and $76.0 million for the three and nine months ended June 30, 2024 and $17.0 million and $95.7 million for the three and nine months ended June 30, 2023. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 15, 2024, the Company repaid all of the outstanding $250.0 million 3.950% senior notes due July 2024 issued by Legg Mason at the principal amount plus accrued and unpaid interest of $4.9 million. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Effects of the changes to the previously reported statements of income and cash flows | The impacts on the consolidated statements of income for the three and nine months ended June 30, 2023 are as follows: (in millions) Three Months Ended Nine Months Ended As Reported Adjustments As Revised As Reported Adjustments As Revised Operating Income $ 314.9 $ — $ 314.9 $ 764.0 $ — $ 764.0 Other income, net Investment and other income, net 51.2 (1.4) 49.8 267.9 (67.6) 200.3 Other income, net 17.2 (1.4) 15.8 228.2 (67.6) 160.6 Income before taxes 332.1 (1.4) 330.7 992.2 (67.6) 924.6 Net income 248.0 (1.4) 246.6 754.9 (67.6) 687.3 Less: net income (loss) attributable to nonredeemable noncontrolling interest (6.3) (1.4) (7.7) 59.1 (67.6) (8.5) Net Income Attributable to Franklin Resources, Inc. 227.5 — 227.5 587.3 — 587.3 The impact on the consolidated statement of cash flows for the nine months ended June 30, 2023 are as follows: (in millions) Nine Months Ended As Reported Adjustments As Revised Net cash provided by (used in) operating activities $ 365.3 $ (40.6) $ 324.7 Net cash used in investing activities (3,251.2) (27.0) (3,278.2) Net cash provided by financing activities 2,425.0 67.6 2,492.6 Decrease in cash and cash equivalents (394.9) — (394.9) |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the initial and revised estimated fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the acquisition date. The issuance of common stock consideration represents a non-cash financing activity related to the statement of cash flows. (in millions) Initial Estimated Fair Value Adjustments Revised Estimated Fair Value as of January 1, 2024 Cash and cash equivalents $ 101.1 $ — $ 101.1 Receivables 118.9 — 118.9 Investments 111.2 — 111.2 Assets of consolidated investment products Cash and cash equivalents 281.4 — 281.4 Investments, at fair value 849.5 — 849.5 Property and equipment 87.1 (5.7) 81.4 Goodwill 189.8 0.4 190.2 Indefinite-lived intangible assets 542.5 14.7 557.2 Definite-lived intangible asset 52.9 4.8 57.7 Operating lease right-of-use assets 109.2 — 109.2 Other assets 20.4 — 20.4 Compensation and benefits (57.8) — (57.8) Accounts payable and accrued expenses (40.9) (11.4) (52.3) Liabilities of consolidated investment products Accounts payable and accrued expenses (259.6) — (259.6) Debt (706.8) — (706.8) Operating lease liabilities (109.2) — (109.2) Other liabilities (12.1) — (12.1) Redeemable noncontrolling interests (20.2) — (20.2) Nonredeemable noncontrolling interests (25.8) — (25.8) Total Identifiable Net Assets $ 1,231.6 $ 2.8 $ 1,234.4 |
Schedule of purchase consideration | See below for a summary of the total purchase consideration transferred at closing: (in millions) Total Equity consideration 1, 2 $ 940.1 Cash consideration 221.7 Deferred cash consideration 100.0 Less: Other adjustments 3 (27.4) Total Purchase Consideration $ 1,234.4 1 Excludes shares granted under a deferred compensation program. 2 Market price on closing date of $29.79. 3 Primarily relates to payments treated as future compensation expense. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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) Three Months Ended June 30, Nine Months Ended June 30, 2024 2023 2024 2023 Net income attributable to Franklin Resources, Inc. $ 174.0 $ 227.5 $ 549.5 $ 587.3 Less: allocation of earnings to participating nonvested stock and stock unit awards 7.5 10.2 23.8 26.7 Net Income Available to Common Stockholders $ 166.5 $ 217.3 $ 525.7 $ 560.6 Weighted-average shares outstanding – basic 516.5 490.7 507.2 490.3 Dilutive effect of nonparticipating nonvested stock unit awards 0.7 0.7 0.8 0.7 Weighted-Average Shares Outstanding – Diluted 517.2 491.4 508.0 491.0 Earnings per Share Basic $ 0.32 $ 0.44 $ 1.04 $ 1.14 Diluted 0.32 0.44 1.03 1.14 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Operating revenues by geographic area | Operating revenues by geographic area were as follows: (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the three months ended June 30, 2024 Investment management fees $ 1,273.7 $ 216.2 $ 71.8 $ 59.1 $ 69.1 $ 1,689.9 Sales and distribution fees 256.8 86.7 4.7 10.1 — 358.3 Shareholder servicing fees 53.2 8.1 0.5 — — 61.8 Other 12.7 — 0.2 — — 12.9 Total $ 1,596.4 $ 311.0 $ 77.2 $ 69.2 $ 69.1 $ 2,122.9 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the nine months ended June 30, 2024 Investment management fees $ 3,819.8 $ 630.1 $ 210.2 $ 173.8 $ 222.1 $ 5,056.0 Sales and distribution fees 718.8 250.3 14.3 29.6 — 1,013.0 Shareholder servicing fees 136.8 23.6 1.8 0.1 — 162.3 Other 31.1 0.7 3.4 — 0.3 35.5 Total $ 4,706.5 $ 904.7 $ 229.7 $ 203.5 $ 222.4 $ 6,266.8 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the three months ended June 30, 2023 Investment management fees $ 1,232.3 $ 192.3 $ 64.3 $ 53.9 $ 70.6 $ 1,613.4 Sales and distribution fees 213.5 75.4 5.1 10.0 — 304.0 Shareholder servicing fees 30.3 8.0 0.5 — — 38.8 Other 11.9 0.5 0.4 — — 12.8 Total $ 1,488.0 $ 276.2 $ 70.3 $ 63.9 $ 70.6 $ 1,969.0 (in millions) United States Luxembourg Asia-Pacific Americas Europe, Total for the nine months ended June 30, 2023 Investment management fees $ 3,672.9 $ 570.7 $ 214.4 $ 162.0 $ 198.5 $ 4,818.5 Sales and distribution fees 634.1 217.4 15.1 30.7 — 897.3 Shareholder servicing fees 90.2 23.5 1.6 0.2 — 115.5 Other 30.1 0.8 0.8 — 0.3 32.0 Total $ 4,427.3 $ 812.4 $ 231.9 $ 192.9 $ 198.8 $ 5,863.3 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Investments [Abstract] | |
Summary of investments | Investments consisted of the following: (in millions) June 30, September 30, Investments, at fair value Sponsored funds and separate accounts $ 417.5 $ 630.5 Investments related to long-term incentive plans 247.1 191.6 Other equity and debt investments 55.8 50.7 Total investments, at fair value 720.4 872.8 Investments in equity method investees 1,227.2 1,089.2 Other investments 276.9 260.0 Total $ 2,224.5 $ 2,222.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The assets and liabilities measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Total as of June 30, 2024 Assets Investments, at fair value Sponsored funds and separate accounts $ 226.9 $ 143.2 $ 7.0 $ 40.4 $ 417.5 Investments related to long-term incentive plans 220.2 — — 26.9 247.1 Other equity and debt investments 3.9 10.2 2.6 39.1 55.8 Total Assets Measured at Fair Value $ 451.0 $ 153.4 $ 9.6 $ 106.4 $ 720.4 Liabilities Securities sold short $ 150.2 $ — $ — $ — $ 150.2 Contingent consideration liabilities — — 46.1 — 46.1 Total Liabilities Measured at Fair Value $ 150.2 $ — $ 46.1 $ — $ 196.3 (in millions) Level 1 Level 2 Level 3 NAV as a Total as of September 30, 2023 Assets Investments, at fair value Sponsored funds and separate accounts $ 356.5 $ 211.9 $ 18.5 $ 43.6 $ 630.5 Investments related to long-term incentive plans 168.2 — — 23.4 191.6 Other equity and debt investments 3.4 11.3 3.3 32.7 50.7 Total Assets Measured at Fair Value $ 528.1 $ 223.2 $ 21.8 $ 99.7 $ 872.8 Liabilities Securities sold short $ 158.3 $ — $ — $ — $ 158.3 Contingent consideration liabilities — — 55.0 — 55.0 Total Liabilities Measured at Fair Value $ 158.3 $ — $ 55.0 $ — $ 213.3 |
Schedule of investments measured at NAV | Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private equity, debt and infrastructure funds, and redeemable alternative credit, global equity and private real estate funds. These investments were as follows: (in millions) June 30, September 30, Nonredeemable investments 1 Investments with known liquidation periods $ 34.7 $ 32.1 Investments with unknown liquidation periods 16.3 17.4 Redeemable investments 2 55.4 50.2 Unfunded commitments 14.0 43.1 |
Schedule of financial instruments not measured at fair value | Financial instruments that were not measured at fair value were as follows: (in millions) Fair Value June 30, 2024 September 30, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 3,378.5 $ 3,378.5 $ 3,686.4 $ 3,686.4 Other investments Time deposits 2 9.4 9.4 9.9 9.9 Equity securities 3 267.5 267.5 250.1 250.1 Financial Liability Debt 2 $ 3,035.0 $ 2,532.2 $ 3,052.8 $ 2,419.4 |
Consolidated Investment Produ_2
Consolidated Investment Products (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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) June 30, September 30, Assets Cash and cash equivalents $ 733.2 $ 716.0 Receivables 345.9 166.7 Investments, at fair value 11,631.6 9,637.2 Total Assets $ 12,710.7 $ 10,519.9 Liabilities Accounts payable and accrued expenses $ 716.6 $ 349.7 Debt 9,637.7 8,231.8 Other liabilities 39.4 25.1 Total liabilities 10,393.7 8,606.6 Redeemable Noncontrolling Interests 719.3 580.1 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,241.0 1,033.9 Nonredeemable noncontrolling interests 356.7 299.3 Total stockholders’ equity 1,597.7 1,333.2 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 12,710.7 $ 10,519.9 |
Schedule of assets measured at fair value on a recurring basis | Assets of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Total as of June 30, 2024 Assets Cash and cash equivalents of CLOs $ 514.0 $ — $ — $ — $ 514.0 Receivables of CLOs — 214.7 — — 214.7 Investments Equity and debt securities 266.5 1,055.6 578.0 164.5 2,064.6 Loans — 9,567.0 — — 9,567.0 Total Assets Measured at Fair Value $ 780.5 $ 10,837.3 $ 578.0 $ 164.5 $ 12,360.3 (in millions) Level 1 Level 2 Level 3 NAV as a Total as of September 30, 2023 Assets Cash and cash equivalents of CLOs $ 352.3 $ — $ — $ — $ 352.3 Receivables of CLOs — 116.7 — — 116.7 Investments Equity and debt securities 210.9 642.6 584.9 154.0 1,592.4 Loans — 8,044.8 — — 8,044.8 Total Assets Measured at Fair Value $ 563.2 $ 8,804.1 $ 584.9 $ 154.0 $ 10,106.2 |
Schedule of CIPs investments measured at NAV | Investments for which fair value was estimated using reported NAV as a practical expedient consist of a redeemable U.S. equity fund, a redeemable global hedge fund and nonredeemable private debt funds. These investments were as follows: (in millions) June 30, September 30, Nonredeemable investments 1 Investments with unknown liquidation periods $ 23.6 $ 21.8 Redeemable investments 2 140.9 132.2 |
Schedule of changes in Level 3 assets of CIPs | Changes in Level 3 assets were as follows: (in millions) Equity and Debt for the three months ended June 30, 2024 Balance at April 1, 2024 $ 591.0 Losses included in investment and other income of consolidated investment products, net (29.8) Purchases 17.5 Sales (0.7) Balance at June 30, 2024 $ 578.0 Change in unrealized losses included in net income relating to assets held at June 30, 2024 $ (29.8) (in millions) Equity and Debt for the nine months ended June 30, 2024 Balance at October 1, 2023 $ 584.9 Acquisition 29.6 Losses included in investment and other income of consolidated investment products, net (68.0) Purchases 44.1 Sales (1.2) Net deconsolidations (12.5) Transfers into Level 3 1.1 Balance at June 30, 2024 $ 578.0 Change in unrealized losses included in net income relating to assets held at June 30, 2024 $ (67.4) (in millions) Equity and Debt Loans Total for the three months ended June 30, 2023 Balance at April 1, 2023 $ 539.0 $ 3.1 $ 542.1 Gains (losses) included in investment and other income of consolidated investment products, net (31.6) 0.1 (31.5) Purchases 61.2 (0.2) 61.0 Sales (0.1) 0.2 0.1 Transfers into Level 3 — 0.5 0.5 Transfers out of Level 3 (0.3) — (0.3) Balance at June 30, 2023 $ 568.2 $ 3.7 $ 571.9 Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2023 $ (32.0) $ 0.1 $ (31.9) (in millions) Equity and Debt Real Estate Loans Total for the nine months ended June 30, 2023 Balance at October 1, 2022 $ 555.8 $ 268.6 $ 239.4 $ 1,063.8 Gains (losses) included in investment and other income of consolidated investment products, net (56.3) (9.0) 0.2 (65.1) Purchases 83.7 86.1 58.4 228.2 Sales (25.1) — — (25.1) Net (deconsolidations) consolidations 10.4 (345.7) (292.6) (627.9) Transfers into Level 3 — — 3.6 3.6 Transfers out of Level 3 (0.3) — (5.3) (5.6) Balance at June 30, 2023 $ 568.2 $ — $ 3.7 $ 571.9 Change in unrealized gains (losses) included in net income relating to assets held at June 30, 2023 $ (55.0) $ — $ 0.1 $ (54.9) |
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 June 30, 2024 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 ) Equity and debt securities $ 253.0 Market pricing Private sale pricing $0.01–$1,000.00 ($76.55) per share Discount for lack of marketability 8.2%–19.5% (9.0%) 282.1 Market comparable companies Enterprise value/ Revenue multiple 1.5–21.2 (13.1) Discount for lack of marketability 6.5%–16.1% (12.8%) 42.9 Discounted cash flow Discount rate 6.7% (in millions) as of September 30, 2023 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average 1 ) Equity and debt securities $ 346.0 Market pricing Private sale pricing $0.01–$1,000.00 ($23.88) per share Discount for lack of marketability 21.9% 238.9 Market comparable companies Enterprise value/ Revenue multiple 11.4–13.5 (12.1) Discount for lack of marketability 11.2%–13.6% (12.2%) |
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) Fair Value June 30, 2024 September 30, 2023 Carrying Estimated Carrying Estimated Financial Asset Cash and cash equivalents 1 $ 219.2 $ 219.2 $ 363.7 $ 363.7 Financial Liabilities Debt of CLOs 1 2 or 3 $ 9,607.7 $ 9,352.6 $ 8,210.0 $ 8,013.2 Other debt 2 or 3 30.0 30.0 21.8 8.6 |
Schedule of debt of CIPs | Debt of CIPs consisted of the following: June 30, 2024 September 30, 2023 (in millions) Amount Weighted- Amount Weighted- Debt of CLOs $ 9,607.7 7.44% $ 8,210.0 7.12% Other debt 30.0 4.19% 21.8 6.00% Total $ 9,637.7 $ 8,231.8 |
Schedule of contractual maturities for debt of CIPs | The contractual maturities for the debt of CIPs at June 30, 2024 were as follows: (in millions) for the fiscal years ending September 30, Amount 2024 (remainder of year) $ 57.3 2025 68.8 2026 24.3 2027 — 2028 — Thereafter 9,487.3 Total $ 9,637.7 |
Schedule of unpaid principal balance and fair value of investments of CLOs | The unpaid principal balance and fair value of the investments of CLOs were as follows: (in millions) June 30, September 30, Unpaid principal balance $ 9,709.2 $ 8,317.5 Difference between unpaid principal balance and fair value 32.4 (120.7) Fair Value $ 9,741.6 $ 8,196.8 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of changes in redeemable noncontrolling interests of CIPs | Changes in redeemable noncontrolling interests were as follows: (in millions) 2024 2023 CIPs Minority Interests Total CIPs Minority Interests Total for the three months ended June 30, Balance at beginning of period $ 643.5 $ 610.4 $ 1,253.9 $ 445.6 $ 514.9 $ 960.5 Net income 30.8 12.2 43.0 10.5 16.3 26.8 Net subscriptions (distributions) and other 142.3 (26.8) 115.5 30.2 (11.2) 19.0 Net consolidations (deconsolidations) (97.3) — (97.3) 104.6 — 104.6 Adjustment to fair value — (48.9) (48.9) — (60.8) (60.8) Balance at End of Period $ 719.3 $ 546.9 $ 1,266.2 $ 590.9 $ 459.2 $ 1,050.1 (in millions) 2024 2023 CIPs Minority Interests Total CIPs Minority Interests Total for the nine months ended June 30, Balance at beginning of period $ 580.1 $ 446.0 $ 1,026.1 $ 942.2 $ 583.6 $ 1,525.8 Net income 60.6 34.7 95.3 68.5 40.0 108.5 Net subscriptions (distributions) and other 171.9 (42.7) 129.2 498.2 (58.9) 439.3 Net deconsolidations (113.5) — (113.5) (918.0) — (918.0) Acquisition 20.2 — 20.2 — — — Adjustment to fair value — 108.9 108.9 — (105.5) (105.5) Balance at End of Period $ 719.3 $ 546.9 $ 1,266.2 $ 590.9 $ 459.2 $ 1,050.1 |
Nonconsolidated Variable Inte_2
Nonconsolidated Variable Interest Entities (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of maximum exposure to loss from nonconsolidated VIEs | The Company’s maximum exposure to loss from these VIEs consists of equity investments, investment management and other fee receivables as follows: (in millions) June 30, September 30, Investments $ 1,021.9 $ 925.9 Receivables 209.9 206.1 Total $ 1,231.8 $ 1,132.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of stock and stock unit award activity | Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Performance- Total Weighted- for the nine months ended June 30, 2024 Nonvested balance at October 1, 2023 12,782 3,099 15,881 $ 23.09 Granted 11,909 627 12,536 25.86 Vested (1,255) (162) (1,417) 23.86 Forfeited/canceled (305) (500) (805) 22.11 Nonvested Balance at June 30, 2024 23,131 3,064 26,195 $ 24.40 |
Investment and Other Income, _2
Investment and Other Income, Net (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of investment and other income (losses), net | Investment and other income, net consisted of the following: Three Months Ended June 30, Nine Months Ended June 30, (in millions) 2024 2023 2024 2023 Dividend and interest income $ 39.8 $ 42.7 $ 132.6 $ 111.5 Gains (losses) on investments, net (24.3) 13.8 17.3 62.3 Income (losses) from investments in equity method investees 41.0 (9.1) 122.3 43.5 Gains (losses) on derivatives, net 3.1 (5.1) (11.5) (19.4) Rental income 11.1 11.1 32.8 35.1 Foreign currency exchange gains (losses), net 1.2 (6.6) (7.5) (40.2) Other, net 2.6 3.0 14.2 7.5 Investment and other income, net $ 74.5 $ 49.8 $ 300.2 $ 200.3 |
Basis of Presentation - Effects
Basis of Presentation - Effects of the changes to the previously reported statements of income and cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 413.1 | $ 324.7 | ||
Net cash used in investing activities | (1,222.7) | (3,278.2) | ||
Net cash provided by financing activities | 506.4 | 2,492.6 | ||
Decrease in cash and cash equivalents | (290.7) | (394.9) | ||
Investment and other income, net | $ 74.5 | $ 49.8 | 300.2 | 200.3 |
Other income, net | 77.6 | 15.8 | 311.1 | 160.6 |
Income before taxes | 300.1 | 330.7 | 869.4 | 924.6 |
Net Income | 232 | 246.6 | 663.6 | 687.3 |
Nonredeemable noncontrolling interests | 15 | (7.7) | 18.8 | (8.5) |
Net income attributable to Franklin Resources, Inc. | 174 | 227.5 | 549.5 | 587.3 |
Operating Income | $ 222.5 | 314.9 | $ 558.3 | 764 |
Previously Reported [Member] | ||||
Statement [Line Items] | ||||
Net cash provided by (used in) operating activities | 365.3 | |||
Net cash used in investing activities | (3,251.2) | |||
Net cash provided by financing activities | 2,425 | |||
Decrease in cash and cash equivalents | (394.9) | |||
Investment and other income, net | 51.2 | 267.9 | ||
Other income, net | 17.2 | 228.2 | ||
Income before taxes | 332.1 | 992.2 | ||
Net Income | 248 | 754.9 | ||
Nonredeemable noncontrolling interests | (6.3) | 59.1 | ||
Net income attributable to Franklin Resources, Inc. | 227.5 | 587.3 | ||
Operating Income | 314.9 | 764 | ||
Revision of Prior Period, Adjustment [Member] | ||||
Statement [Line Items] | ||||
Net cash provided by (used in) operating activities | (40.6) | |||
Net cash used in investing activities | (27) | |||
Net cash provided by financing activities | 67.6 | |||
Decrease in cash and cash equivalents | 0 | |||
Investment and other income, net | (1.4) | (67.6) | ||
Other income, net | (1.4) | (67.6) | ||
Income before taxes | (1.4) | (67.6) | ||
Net Income | (1.4) | (67.6) | ||
Nonredeemable noncontrolling interests | (1.4) | (67.6) | ||
Net income attributable to Franklin Resources, Inc. | 0 | 0 | ||
Operating Income | 0 | 0 | ||
As Amended [Member] | ||||
Statement [Line Items] | ||||
Net cash provided by (used in) operating activities | 324.7 | |||
Net cash used in investing activities | (3,278.2) | |||
Net cash provided by financing activities | 2,492.6 | |||
Decrease in cash and cash equivalents | (394.9) | |||
Investment and other income, net | 49.8 | 200.3 | ||
Other income, net | 15.8 | 160.6 | ||
Income before taxes | 330.7 | 924.6 | ||
Net Income | 246.6 | 687.3 | ||
Nonredeemable noncontrolling interests | (7.7) | (8.5) | ||
Net income attributable to Franklin Resources, Inc. | 227.5 | 587.3 | ||
Operating Income | $ 314.9 | $ 764 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 01, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | |||||
Amortization of intangible assets | $ 84 | $ 85.4 | $ 254.4 | $ 254.6 | |
Putnam Investments | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 31,600 | ||||
Cash consideration | $ 221.7 | ||||
Deferred cash consideration | 100 | ||||
Intangible assets, estimated useful lives | 10 years | 10 years | |||
Amortization of intangible assets | $ 1.6 | $ 2.9 | |||
Contingent consideration liabilities | $ 375 | ||||
Proforma Revenue | 430 | ||||
Finite-Lived Intangible Asset, Expected Amortization Per Year | 5.8 | 5.8 | |||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 1.4 | 1.4 | |||
Putnam Investments | Great-West Lifeco Inc. | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Percent | 6% | ||||
Putnam Investments | Great-West Lifeco Inc. | five year | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Percent | 4.90% | ||||
Putnam Investments | 4.9% holding | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Equity Consideration Transferred, Lock-up Period for 4.9% holding | 5 years | ||||
Putnam Investments | remaining shares | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Equity Consideration Transferred, Lock-up Period for 4.9% holding | 180 days | ||||
Putnam Investments | General, administrative and other expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition Related Costs | 18.3 | ||||
Putnam Investments | Compensation and Benefits | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Integration Related Costs | $ 132 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Consideration (Details) - Putnam Investments $ / shares in Units, $ in Millions | Jan. 01, 2024 USD ($) $ / shares |
Business Acquisition [Line Items] | |
Equity consideration | $ 940.1 |
Cash consideration | 221.7 |
Deferred cash consideration | 100 |
Business Combination, Upfront Purchase Consideration | (27.4) |
Total Purchase Consideration | $ 1,234.4 |
Business acquisition, Share price | $ / shares | $ 29.79 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jan. 01, 2024 | Sep. 30, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 6,198.5 | $ 6,003.8 | |
Putnam Investments | Initial Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 101.1 | ||
Receivables | 118.9 | ||
Investments, at fair value | 111.2 | ||
Property and equipment | 87.1 | ||
Goodwill | 189.8 | ||
Indefinite-lived intangible assets | 542.5 | ||
Definite-lived intangible asset | 52.9 | ||
Operating lease right-of-use assets | 109.2 | ||
Other assets | 20.4 | ||
Compensation and benefits | (57.8) | ||
Accounts payable and accrued expenses | (40.9) | ||
Operating lease liabilities | (109.2) | ||
Other liabilities | (12.1) | ||
Total Identifiable Net Assets | 1,231.6 | ||
Putnam Investments | Revised Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 101.1 | ||
Receivables | 118.9 | ||
Investments, at fair value | 111.2 | ||
Property and equipment | 81.4 | ||
Goodwill | 190.2 | ||
Indefinite-lived intangible assets | 557.2 | ||
Definite-lived intangible asset | 57.7 | ||
Operating lease right-of-use assets | 109.2 | ||
Other assets | 20.4 | ||
Compensation and benefits | (57.8) | ||
Accounts payable and accrued expenses | (52.3) | ||
Operating lease liabilities | (109.2) | ||
Other liabilities | (12.1) | ||
Total Identifiable Net Assets | 1,234.4 | ||
Putnam Investments | Business Combination Provisional Information Initial Accounting Incomplete Adjustment Consideration Transferred | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Receivables | 0 | ||
Investments, at fair value | 0 | ||
Property and equipment | (5.7) | ||
Goodwill | 0.4 | ||
Indefinite-lived intangible assets | 14.7 | ||
Definite-lived intangible asset | 4.8 | ||
Operating lease right-of-use assets | 0 | ||
Other assets | 0 | ||
Compensation and benefits | 0 | ||
Accounts payable and accrued expenses | (11.4) | ||
Operating lease liabilities | 0 | ||
Other liabilities | 0 | ||
Total Identifiable Net Assets | 2.8 | ||
Putnam Investments | Redeemable Noncontrolling Interests [Member] | Initial Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | (20.2) | ||
Putnam Investments | Redeemable Noncontrolling Interests [Member] | Revised Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | (20.2) | ||
Putnam Investments | Redeemable Noncontrolling Interests [Member] | Business Combination Provisional Information Initial Accounting Incomplete Adjustment Consideration Transferred | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | 0 | ||
Putnam Investments | Nonredeemable Noncontrolling Interest | Initial Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | (25.8) | ||
Putnam Investments | Nonredeemable Noncontrolling Interest | Revised Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | (25.8) | ||
Putnam Investments | Nonredeemable Noncontrolling Interest | Business Combination Provisional Information Initial Accounting Incomplete Adjustment Consideration Transferred | |||
Business Acquisition [Line Items] | |||
Noncontrolling Interest, Fair Value | 0 | ||
Putnam Investments | CIPs [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 281.4 | ||
Putnam Investments | CIPs [Member] | Initial Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 281.4 | ||
Investments, at fair value | 849.5 | ||
Accounts payable and accrued expenses | (259.6) | ||
Amount of debt assumed | (706.8) | ||
Putnam Investments | CIPs [Member] | Revised Estimated Fair Value | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 281.4 | ||
Investments, at fair value | 849.5 | ||
Accounts payable and accrued expenses | (259.6) | ||
Amount of debt assumed | (706.8) | ||
Putnam Investments | CIPs [Member] | Business Combination Provisional Information Initial Accounting Incomplete Adjustment Consideration Transferred | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Investments, at fair value | 0 | ||
Accounts payable and accrued expenses | 0 | ||
Amount of debt assumed | $ 0 |
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 | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income attributable to Franklin Resources, Inc. | $ 174 | $ 227.5 | $ 549.5 | $ 587.3 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic | 7.5 | 10.2 | 23.8 | 26.7 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted | 7.5 | 10.2 | 23.8 | 26.7 |
Net Income Available to Common Stockholders - basic | 166.5 | 217.3 | 525.7 | 560.6 |
Net Income Available to Common Stockholders - diluted | $ 166.5 | $ 217.3 | $ 525.7 | $ 560.6 |
Weighted-average shares outstanding – basic | 516.5 | 490.7 | 507.2 | 490.3 |
Dilutive effect of nonparticipating nonvested stock unit awards | 0.7 | 0.7 | 0.8 | 0.7 |
Weighted-Average Shares Outstanding – Diluted | 517.2 | 491.4 | 508 | 491 |
Earnings per Share [Abstract] | ||||
Basic | $ 0.32 | $ 0.44 | $ 1.04 | $ 1.14 |
Diluted | $ 0.32 | $ 0.44 | $ 1.03 | $ 1.14 |
Revenues Narratives (Details)
Revenues Narratives (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue From Sponsored Funds | 82% | 83% | 82% | 83% |
Revenues - Schedule of Operatin
Revenues - Schedule of Operating Revenues by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | $ 2,122.9 | $ 1,969 | $ 6,266.8 | $ 5,863.3 |
Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 1,689.9 | 1,613.4 | 5,056 | 4,818.5 |
Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 358.3 | 304 | 1,013 | 897.3 |
Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 61.8 | 38.8 | 162.3 | 115.5 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 12.9 | 12.8 | 35.5 | 32 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 1,596.4 | 1,488 | 4,706.5 | 4,427.3 |
United States [Member] | Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 1,273.7 | 1,232.3 | 3,819.8 | 3,672.9 |
United States [Member] | Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 256.8 | 213.5 | 718.8 | 634.1 |
United States [Member] | Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 53.2 | 30.3 | 136.8 | 90.2 |
United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 12.7 | 11.9 | 31.1 | 30.1 |
Luxembourg [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 311 | 276.2 | 904.7 | 812.4 |
Luxembourg [Member] | Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 216.2 | 192.3 | 630.1 | 570.7 |
Luxembourg [Member] | Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 86.7 | 75.4 | 250.3 | 217.4 |
Luxembourg [Member] | Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 8.1 | 8 | 23.6 | 23.5 |
Luxembourg [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0 | 0.5 | 0.7 | 0.8 |
Asia-Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 77.2 | 70.3 | 229.7 | 231.9 |
Asia-Pacific [Member] | Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 71.8 | 64.3 | 210.2 | 214.4 |
Asia-Pacific [Member] | Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 4.7 | 5.1 | 14.3 | 15.1 |
Asia-Pacific [Member] | Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0.5 | 0.5 | 1.8 | 1.6 |
Asia-Pacific [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0.2 | 0.4 | 3.4 | 0.8 |
Americas Excluding United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 69.2 | 63.9 | 203.5 | 192.9 |
Americas Excluding United States [Member] | Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 59.1 | 53.9 | 173.8 | 162 |
Americas Excluding United States [Member] | Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 10.1 | 10 | 29.6 | 30.7 |
Americas Excluding United States [Member] | Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0 | 0 | 0.1 | 0.2 |
Americas Excluding United States [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0 | 0 | 0 | 0 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 69.1 | 70.6 | 222.4 | 198.8 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Investment management fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 69.1 | 70.6 | 222.1 | 198.5 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Sales and distribution fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0 | 0 | 0 | 0 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Shareholder servicing fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | 0 | 0 | 0 | 0 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues by geographic area | $ 0 | $ 0 | $ 0.3 | $ 0.3 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Investments [Abstract] | |
Securities Sold under Agreements to Repurchase | $ 135.9 |
Securities Borrowed, Fair Value of Collateral | $ 148.6 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Investment Holdings [Line Items] | ||
Total investments, at fair value | $ 720.4 | $ 872.8 |
Investments in equity method investees | 1,227.2 | 1,089.2 |
Other investments | 276.9 | 260 |
Investments | 2,224.5 | 2,222 |
Sponsored funds and separate accounts [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | 417.5 | 630.5 |
Investments related to long-term incentive plans [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | 247.1 | 191.6 |
Other equity and debt investments [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | $ 55.8 | $ 50.7 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Sponsored funds and separate accounts [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | $ 417.5 | $ 630.5 |
Investments related to long-term incentive plans [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 247.1 | 191.6 |
Other equity and debt investments [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 55.8 | 50.7 |
Fair Value, Recurring [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 720.4 | 872.8 |
Liability [Abstract] | ||
Securities sold short | 150.2 | 158.3 |
Contingent consideration liabilities | 46.1 | 55 |
Total Liabilities Measured at Fair Value | 196.3 | 213.3 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 451 | 528.1 |
Liability [Abstract] | ||
Securities sold short | 150.2 | 158.3 |
Contingent consideration liabilities | 0 | 0 |
Total Liabilities Measured at Fair Value | 150.2 | 158.3 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 153.4 | 223.2 |
Liability [Abstract] | ||
Securities sold short | 0 | 0 |
Contingent consideration liabilities | 0 | 0 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 9.6 | 21.8 |
Liability [Abstract] | ||
Securities sold short | 0 | 0 |
Contingent consideration liabilities | 46.1 | 55 |
Total Liabilities Measured at Fair Value | 46.1 | 55 |
Fair Value, Recurring [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 106.4 | 99.7 |
Liability [Abstract] | ||
Securities sold short | 0 | 0 |
Contingent consideration liabilities | 0 | 0 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 417.5 | 630.5 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 226.9 | 356.5 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 143.2 | 211.9 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 7 | 18.5 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 40.4 | 43.6 |
Fair Value, Recurring [Member] | Investments related to long-term incentive plans [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 247.1 | 191.6 |
Fair Value, Recurring [Member] | Investments related to long-term incentive plans [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 220.2 | 168.2 |
Fair Value, Recurring [Member] | Investments related to long-term incentive plans [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Investments related to long-term incentive plans [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Investments related to long-term incentive plans [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 26.9 | 23.4 |
Fair Value, Recurring [Member] | Other equity and debt investments [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 55.8 | 50.7 |
Fair Value, Recurring [Member] | Other equity and debt investments [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 3.9 | 3.4 |
Fair Value, Recurring [Member] | Other equity and debt investments [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 10.2 | 11.3 |
Fair Value, Recurring [Member] | Other equity and debt investments [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2.6 | 3.3 |
Fair Value, Recurring [Member] | Other equity and debt investments [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | $ 39.1 | $ 32.7 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of investments measured at NAV (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unfunded commitments | $ 14 | $ 43.1 | |
Nonredeemable investments with unknown liquidation periods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative Investment | [1] | 16.3 | 17.4 |
Nonredeemable investments with known liquidation periods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative Investment | [1] | $ 34.7 | $ 32.1 |
Liquidation weighted-average period | 2 years 3 months 18 days | 2 years 10 months 24 days | |
Redeemable Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative Investment | [2] | $ 55.4 | $ 50.2 |
[1] The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets. Investments with known liquidation periods have an expected weighted-average life of 2.3 years and 2.9 years at June 30, 2024 and September 30, 2023. Investments are redeemable on a semi-monthly, monthly and quarterly basis. |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Financial Assets [Abstract] | ||
Other investments | $ 276.9 | $ 260 |
Financial Liability [Abstract] | ||
Debt | 3,035 | 3,052.8 |
Carrying Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 3,378.5 | 3,686.4 |
Time deposits | 9.4 | 9.9 |
Financial Liability [Abstract] | ||
Debt | 3,035 | 3,052.8 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 3,378.5 | 3,686.4 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Time deposits | 9.4 | 9.9 |
Financial Liability [Abstract] | ||
Debt | 2,532.2 | 2,419.4 |
Equity securities [Member] | Carrying Value [Member] | ||
Financial Assets [Abstract] | ||
Other investments | 267.5 | 250.1 |
Equity securities [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Other investments | $ 267.5 | $ 250.1 |
Consolidated Investment Produ_3
Consolidated Investment Products - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 USD ($) CIPs | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) CIPs | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) CIPs | |
Consolidated Investment Products [Abstract] | |||||
Number of consolidated investment products | CIPs | 85 | 85 | 70 | ||
Number of CLOs | CIPs | 25 | 25 | 20 | ||
Collateralized loan obligations [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Net gains related to its own economic interests. | $ | $ 9.4 | $ 6.5 | $ 39.9 | $ 9 | |
Debt, unpaid principal balance | $ | $ 9,488.5 | $ 9,488.5 | $ 8,281.5 | ||
Collateralized loan obligations [Member] | CIPs [Member] | Minimum [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Stated interest rate | 0.25% | 0.25% | 2.39% | ||
Collateralized loan obligations [Member] | CIPs [Member] | Maximum [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Stated interest rate | 15.76% | 15.76% | 15.49% |
Consolidated Investment Produ_4
Consolidated Investment Products - Schedule of Balances of CIPs (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Assets [Abstract] | ||||||||
Receivables | $ 1,570.5 | $ 1,348.4 | ||||||
Investments, at fair value | 720.4 | 872.8 | ||||||
Total Assets | 33,254.9 | 30,121.2 | ||||||
Liabilities [Abstract] | ||||||||
Accounts payable and accrued expenses | 532.2 | 530 | ||||||
Debt | 3,035 | 3,052.8 | ||||||
Other liabilities | 961 | 1,286.2 | ||||||
Total liabilities | 18,353.5 | 16,547.3 | ||||||
Redeemable Noncontrolling Interests | 1,266.2 | 1,026.1 | ||||||
Stockholders' Equity [Abstract] | ||||||||
Franklin Resources, Inc.’s interests | 12,870.2 | 11,916.9 | ||||||
Nonredeemable noncontrolling interests | 765 | 630.9 | ||||||
Total stockholders’ equity | 13,635.2 | $ 13,581.7 | $ 12,637.6 | 12,547.8 | $ 12,539.2 | $ 12,442.6 | $ 12,555.5 | $ 12,298.9 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 33,254.9 | 30,121.2 | ||||||
CIPs [Member] | ||||||||
Assets [Abstract] | ||||||||
Cash and cash equivalents | 733.2 | 716 | ||||||
Receivables | 345.9 | 166.7 | ||||||
Investments, at fair value | 11,631.6 | 9,637.2 | ||||||
Total Assets | 12,710.7 | 10,519.9 | ||||||
Liabilities [Abstract] | ||||||||
Accounts payable and accrued expenses | 716.6 | 349.7 | ||||||
Debt | 9,637.7 | 8,231.8 | ||||||
Other liabilities | 39.4 | 25.1 | ||||||
Total liabilities | 10,393.7 | 8,606.6 | ||||||
Redeemable Noncontrolling Interests | 719.3 | $ 643.5 | 580.1 | $ 590.9 | $ 445.6 | $ 942.2 | ||
Stockholders' Equity [Abstract] | ||||||||
Franklin Resources, Inc.’s interests | 1,241 | 1,033.9 | ||||||
Nonredeemable noncontrolling interests | 356.7 | 299.3 | ||||||
Total stockholders’ equity | 1,597.7 | 1,333.2 | ||||||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 12,710.7 | $ 10,519.9 |
Consolidated Investment Produ_5
Consolidated Investment Products - Schedule of Balances of Assets and Liabilities of CIPs Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Assets [Abstract] | ||
Investments, at fair value | $ 720.4 | $ 872.8 |
CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 11,631.6 | 9,637.2 |
Fair Value, Recurring [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 720.4 | 872.8 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 451 | 528.1 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 153.4 | 223.2 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 9.6 | 21.8 |
Fair Value, Recurring [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 106.4 | 99.7 |
Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 12,360.3 | 10,106.2 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 780.5 | 563.2 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 10,837.3 | 8,804.1 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 578 | 584.9 |
Fair Value, Recurring [Member] | CIPs [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 164.5 | 154 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2,064.6 | 1,592.4 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 266.5 | 210.9 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,055.6 | 642.6 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 578 | 584.9 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 164.5 | 154 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 9,567 | 8,044.8 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0 | 0 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 9,567 | 8,044.8 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0 | 0 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0 | 0 |
Collateralized loan obligations [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 9,741.6 | 8,196.8 |
Collateralized loan obligations [Member] | Fair Value, Recurring [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents of CLOs | 514 | 352.3 |
Receivables of CLOs | 214.7 | 116.7 |
Collateralized loan obligations [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents of CLOs | 514 | 352.3 |
Receivables of CLOs | 0 | 0 |
Collateralized loan obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents of CLOs | 0 | 0 |
Receivables of CLOs | 214.7 | 116.7 |
Collateralized loan obligations [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents of CLOs | 0 | 0 |
Receivables of CLOs | 0 | 0 |
Collateralized loan obligations [Member] | Fair Value, Recurring [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents of CLOs | 0 | 0 |
Receivables of CLOs | $ 0 | $ 0 |
Consolidated Investment Produ_6
Consolidated Investment Products - Schedule of Investments measured at NAV (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Sep. 30, 2023 | |||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Unfunded commitments | $ 14 | $ 43.1 | ||
Nonredeemable investments with known liquidation periods | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Alternative Investment | [1] | $ 34.7 | $ 32.1 | |
Liquidation weighted-average period | 2 years 3 months 18 days | 2 years 10 months 24 days | ||
Nonredeemable investments with unknown liquidation periods | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Alternative Investment | [1] | $ 16.3 | $ 17.4 | |
Redeemable Funds | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Alternative Investment | [2] | 55.4 | 50.2 | |
CIPs [Member] | Nonredeemable investments with unknown liquidation periods | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Alternative Investment | 23.6 | 21.8 | [3] | |
CIPs [Member] | Redeemable Funds | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Alternative Investment | [4] | $ 140.9 | $ 132.2 | |
[1] The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets. Investments with known liquidation periods have an expected weighted-average life of 2.3 years and 2.9 years at June 30, 2024 and September 30, 2023. Investments are redeemable on a semi-monthly, monthly and quarterly basis. The investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets. Investments are redeemable on a monthly basis and liquidation periods are unknown. |
Consolidated Investment Produ_7
Consolidated Investment Products - Schedule of Changes in Level 3 Assets of CIPs (Details) - CIPs [Member] - Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule Of Consolidated Investment Products [Line Items] | ||||
Balance at beginning of period - assets | $ 591 | $ 542.1 | $ 584.9 | $ 1,063.8 |
Losses included in investment and other income of consolidated investment products, net | (29.8) | (31.5) | (68) | (65.1) |
Purchases | 17.5 | 61 | 44.1 | 228.2 |
Sales | (0.7) | 0.1 | (1.2) | (25.1) |
Net consolidations/ (deconsolidations) | (12.5) | (627.9) | ||
Transfers Into Level 3 | 0.5 | (1.1) | 3.6 | |
Balance at End of Period - assets | 578 | 571.9 | 578 | 571.9 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Acquisition | 29.6 | |||
Change in unrealized losses included in net income relating to assets held at June 30, 2024 | (29.8) | (31.9) | (67.4) | (54.9) |
Transfers out of Level 3 - assets | (0.3) | (5.6) | ||
Equity and debt securities [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Balance at beginning of period - assets | 591 | 539 | 584.9 | 555.8 |
Losses included in investment and other income of consolidated investment products, net | (29.8) | (31.6) | (68) | (56.3) |
Purchases | 17.5 | 61.2 | 44.1 | 83.7 |
Sales | (0.7) | (0.1) | (1.2) | (25.1) |
Net consolidations/ (deconsolidations) | (12.5) | 10.4 | ||
Transfers Into Level 3 | 0 | (1.1) | 0 | |
Balance at End of Period - assets | 578 | 568.2 | 578 | 568.2 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Acquisition | 29.6 | |||
Change in unrealized losses included in net income relating to assets held at June 30, 2024 | $ (29.8) | (32) | $ (67.4) | (55) |
Transfers out of Level 3 - assets | (0.3) | (0.3) | ||
Real Estate [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Balance at beginning of period - assets | 268.6 | |||
Losses included in investment and other income of consolidated investment products, net | (9) | |||
Purchases | 86.1 | |||
Sales | 0 | |||
Net consolidations/ (deconsolidations) | (345.7) | |||
Transfers Into Level 3 | 0 | |||
Balance at End of Period - assets | 0 | 0 | ||
Change in unrealized losses included in net income relating to assets held at June 30, 2024 | 0 | |||
Transfers out of Level 3 - assets | 0 | |||
Loans [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Balance at beginning of period - assets | 3.1 | 239.4 | ||
Losses included in investment and other income of consolidated investment products, net | 0.1 | 0.2 | ||
Purchases | (0.2) | 58.4 | ||
Sales | 0.2 | 0 | ||
Net consolidations/ (deconsolidations) | (292.6) | |||
Transfers Into Level 3 | 0.5 | 3.6 | ||
Balance at End of Period - assets | 3.7 | 3.7 | ||
Change in unrealized losses included in net income relating to assets held at June 30, 2024 | 0.1 | 0.1 | ||
Transfers out of Level 3 - assets | $ 0 | $ (5.3) |
Consolidated Investment Produ_8
Consolidated Investment Products - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) $ in Millions | Jun. 30, 2024 USD ($) $ / shares | Sep. 30, 2023 USD ($) $ / shares | ||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | $ 720.4 | $ 872.8 | ||
CIPs [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | 11,631.6 | 9,637.2 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Equity and debt securities [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | 2,064.6 | 1,592.4 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Loans [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | 9,567 | 8,044.8 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | 578 | 584.9 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | $ 253 | $ 346 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Private sale pricing [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | $ / shares | 0.01 | 0.01 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Private sale pricing [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | $ / shares | 1,000 | 1,000 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Private sale pricing [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | $ / shares | [1] | 76.55 | 23.88 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Measurement Input, Discount for lack of liquidity | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.082 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Measurement Input, Discount for lack of liquidity | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.195 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | Measurement Input, Discount for lack of liquidity | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.090 | 0.219 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | $ 282.1 | $ 238.9 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | EBITDA multiple [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 1.5 | 11.4 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | EBITDA multiple [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 21.2 | 13.5 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | EBITDA multiple [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 13.1 | 12.1 | [1] | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Discount for lack of marketability [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.065 | 0.112 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Discount for lack of marketability [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.161 | 0.136 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Discount for lack of marketability [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.128 | 0.122 | [1] | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Discounted cash flow [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | $ 42.9 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Discounted cash flow [Member] | Discount rate [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 6.7 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Loans [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Total investments, at fair value | $ 0 | $ 0 | ||
[1] Based on the relative fair value of the instruments. |
Consolidated Investment Produ_9
Consolidated Investment Products - Schedule of Financial Instruments of CIPs not Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 | |
Carrying Value [Member] | |||
Financial Assets [Abstract] | |||
Cash and cash equivalents | $ 3,378.5 | $ 3,686.4 | |
Financial Liability [Abstract] | |||
Debt of CLOs1 | 3,035 | 3,052.8 | |
Carrying Value [Member] | CIPs [Member] | |||
Financial Assets [Abstract] | |||
Cash and cash equivalents | 219.2 | 363.7 | |
Financial Liability [Abstract] | |||
Short-Term Debt | 30 | ||
Other debt | 21.8 | ||
Estimated Fair Value [Member] | Level 1 [Member] | |||
Financial Assets [Abstract] | |||
Cash and cash equivalents | 3,378.5 | 3,686.4 | |
Estimated Fair Value [Member] | Level 2 [Member] | |||
Financial Liability [Abstract] | |||
Debt of CLOs1 | 2,532.2 | 2,419.4 | |
Estimated Fair Value [Member] | CIPs [Member] | Level 1 [Member] | |||
Financial Assets [Abstract] | |||
Cash and cash equivalents | 219.2 | 363.7 | |
Estimated Fair Value [Member] | CIPs [Member] | Level 3 [Member] | |||
Financial Liability [Abstract] | |||
Short-Term Debt | 30 | ||
Other debt | 8.6 | ||
Receivables | 1,570.5 | 1,348.4 | |
Debt of CLOs1 | 3,035 | 3,052.8 | |
CIPs [Member] | |||
Financial Assets [Abstract] | |||
Cash and cash equivalents | 733.2 | 716 | |
Receivables | 345.9 | 166.7 | |
Financial Liability [Abstract] | |||
Debt of CLOs1 | 9,637.7 | 8,231.8 | |
Short-Term Debt | 30 | ||
Other debt | 21.8 | ||
Collateralized loan obligations [Member] | Carrying Value [Member] | CIPs [Member] | |||
Financial Liability [Abstract] | |||
Debt of CLOs1 | [1] | 9,607.7 | 8,210 |
Collateralized loan obligations [Member] | Estimated Fair Value [Member] | CIPs [Member] | Level 2 [Member] | |||
Financial Liability [Abstract] | |||
Debt of CLOs1 | [1] | 9,352.6 | 8,013.2 |
Collateralized loan obligations [Member] | CIPs [Member] | |||
Financial Liability [Abstract] | |||
Debt of CLOs1 | $ 9,607.7 | $ 8,210 | |
[1] Substantially all was Level 2. |
Consolidated Investment Prod_10
Consolidated Investment Products - Schedule of Debt of CIPs (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 3,035 | $ 3,052.8 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 9,637.7 | 8,231.8 |
Other debt | $ 21.8 | |
Effective interest rate | 4.19% | 6% |
Short-Term Debt | $ 30 | |
Collateralized loan obligations [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 9,607.7 | $ 8,210 |
Effective interest rate | 7.44% | 7.12% |
Collateralized loan obligations [Member] | CIPs [Member] | Minimum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Stated interest rate | 0.25% | 2.39% |
Collateralized loan obligations [Member] | CIPs [Member] | Maximum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Stated interest rate | 15.76% | 15.49% |
Consolidated Investment Prod_11
Consolidated Investment Products - Schedule of Contractual Maturities for Debt of CIPs (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Total | $ 3,035 | $ 3,052.8 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
2024 (remainder of year) | 57.3 | |
2023 | 68.8 | |
2024 | 24.3 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 9,487.3 | |
Total | $ 9,637.7 |
Consolidated Investment Prod_12
Consolidated Investment Products - Schedule of Unpaid Principal Balance and Fair Value of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Unpaid principal balance | $ 2,224.5 | $ 2,222 |
Total investments, at fair value | 720.4 | 872.8 |
Collateralized loan obligations [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Unpaid principal balance | 9,709.2 | 8,317.5 |
Difference between unpaid principal balance and fair value | 32.4 | (120.7) |
Total investments, at fair value | $ 9,741.6 | $ 8,196.8 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Noncontrolling Interest [Line Items] | ||||||||
Balance at beginning of period | $ 1,026.1 | $ 1,026.1 | ||||||
Net income | $ 43 | $ 26.8 | 95.3 | $ 108.5 | ||||
Net subscriptions (distributions) and other | 29.4 | $ 63.1 | 9.6 | (11.3) | $ 50.1 | $ 97.1 | ||
Net deconsolidations | (12.6) | (0.7) | (324.2) | (35.7) | ||||
Adjustment to fair value | 48.9 | (91.9) | (65.9) | 60.8 | 44.7 | |||
Balance at End of Period | 1,266.2 | 1,266.2 | ||||||
Minority Interests [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Balance at beginning of period | 610.4 | 446 | 514.9 | 583.6 | 446 | 583.6 | ||
Net income | 12.2 | 16.3 | 34.7 | 40 | ||||
Net subscriptions (distributions) and other | (26.8) | (11.2) | (42.7) | (58.9) | ||||
Net deconsolidations | 0 | 0 | 0 | 0 | ||||
Acquisition | 0 | 0 | ||||||
Adjustment to fair value | (48.9) | (60.8) | 108.9 | (105.5) | ||||
Balance at End of Period | 546.9 | 610.4 | 459.2 | 514.9 | 546.9 | 459.2 | ||
Redeemable Noncontrolling Interests [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Balance at beginning of period | 1,253.9 | 1,026.1 | 960.5 | 1,525.8 | 1,026.1 | 1,525.8 | ||
Net income | 43 | 26.8 | 95.3 | 108.5 | ||||
Net subscriptions (distributions) and other | 115.5 | 19 | 129.2 | 439.3 | ||||
Net deconsolidations | (97.3) | 104.6 | (113.5) | (918) | ||||
Acquisition | 20.2 | 0 | ||||||
Adjustment to fair value | (48.9) | (60.8) | 108.9 | (105.5) | ||||
Balance at End of Period | 1,266.2 | 1,253.9 | 1,050.1 | 960.5 | 1,266.2 | 1,050.1 | ||
Retained Earnings [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Adjustment to fair value | 48.9 | (91.9) | (65.9) | 60.8 | 44.7 | |||
CIPs [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Balance at beginning of period | 643.5 | $ 580.1 | 445.6 | $ 942.2 | 580.1 | 942.2 | ||
Net income | 30.8 | 10.5 | 60.6 | 68.5 | ||||
Net subscriptions (distributions) and other | 142.3 | 30.2 | 171.9 | 498.2 | ||||
Net deconsolidations | (97.3) | 104.6 | (113.5) | (918) | ||||
Acquisition | 20.2 | 0 | ||||||
Adjustment to fair value | 0 | 0 | 0 | 0 | ||||
Balance at End of Period | $ 719.3 | $ 643.5 | $ 590.9 | $ 445.6 | $ 719.3 | $ 590.9 |
Nonconsolidated Variable Inte_3
Nonconsolidated Variable Interest Entities - Schedule of Maximum Exposure to Loss (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2024 | Sep. 30, 2023 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 1,231.8 | $ 1,132 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 1,021.9 | 925.9 |
Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 209.9 | $ 206.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Nov. 01, 2023 | Jun. 30, 2024 |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 396.6 | |
Lessee, Operating Lease, Term of Contract | 16 years | |
Lessee, Operating Lease, Liability, Payments, Due | $ 707.3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Unrecognized compensation expense related to nonvested stock and stock unit awards | $ 254.6 |
Remaining weighted-average vesting period | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock and Stock Unit Award Activity (Details) shares in Thousands | 9 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested balance at October 1, 2023 | 15,881 |
Granted | 12,536 |
Vested | (1,417) |
Forfeited/canceled | (805) |
Nonvested Balance at June 30, 2024 | 26,195 |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 23.09 |
Weighted Average Grant Date Fair Value of shares granted | $ / shares | 25.86 |
Weighted Average Grant Date Fair Value of shares vested | $ / shares | 23.86 |
Weighted Average Grant Date Fair Value of shares forfeited/canceled | $ / shares | 22.11 |
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 24.40 |
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 October 1, 2023 | 12,782 |
Granted | 11,909 |
Vested | (1,255) |
Forfeited/canceled | (305) |
Nonvested Balance at June 30, 2024 | 23,131 |
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 October 1, 2023 | 3,099 |
Granted | 627 |
Vested | (162) |
Forfeited/canceled | (500) |
Nonvested Balance at June 30, 2024 | 3,064 |
Investment and Other Income, _3
Investment and Other Income, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Net gains (losses) recognized on equity securities measured at fair value and trading debt securities | $ (6.9) | $ 17 | $ 76 | $ 95.7 |
Investment and Other Income , N
Investment and Other Income , Net - Schedule of Investment and Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Dividend and interest income | $ 39.8 | $ 42.7 | $ 132.6 | $ 111.5 |
Gains (losses) on investments, net | (24.3) | 13.8 | 17.3 | 62.3 |
Income (losses) from investments in equity method investees | 41 | (9.1) | 122.3 | 43.5 |
Rental income | 11.1 | 11.1 | 32.8 | 35.1 |
Foreign currency exchange gains (losses), net | 1.2 | (6.6) | (7.5) | (40.2) |
Other, net | 2.6 | 3 | 14.2 | 7.5 |
Investment and other income, net | 74.5 | 49.8 | 300.2 | 200.3 |
Gains (losses) on derivatives, net | $ 3.1 | $ (5.1) | $ (11.5) | $ (19.4) |
Subsequent Events Narrative (De
Subsequent Events Narrative (Details) - Subsequent Event [Member] - Notes Due July 2024 [Member] - Legg Mason [Member] | Jul. 15, 2024 USD ($) |
Subsequent Event [Line Items] | |
Debt Instrument, Face Amount | $ 250,000,000 |
Interest Payable | $ 4,900,000 |
Stated interest rate | 3.95% |