ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
☒ | Accelerated Filer | ☐ | ||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ||
Emerging Growth Company |
FORM 10-K ITEM | PAGE NUMBER | ||
ITEM 1. | 3 | ||
ITEM 1A. | 18 | ||
ITEM 1B. | 29 | ||
ITEM 2. | 30 | ||
ITEM 3. | 30 | ||
ITEM 4. | 30 | ||
31 | |||
ITEM 5. | 33 | ||
ITEM 6. | 34 | ||
ITEM 7. | 35 | ||
ITEM 7A. | 63 | ||
ITEM 8. | 65 | ||
ITEM 9. | 107 | ||
ITEM 9A. | 107 | ||
ITEM 9B. | 107 | ||
ITEM 10. | 108 | ||
ITEM 11. | 108 | ||
ITEM 12. | 108 | ||
ITEM 13. | 108 | ||
ITEM 14. | 108 | ||
ITEM 15. | 109 | ||
ITEM 16. | 109 | ||
109 | |||
112 |
Item 1. | Business. |
Asset Class | Value in Billions | Percentage of Total AUM | |||||
Fixed Income | $ | 656.7 | 46 | % | |||
Equity | 432.0 | 31 | % | ||||
Multi-Asset | 133.8 | 9 | % | ||||
Alternative | 124.0 | 9 | % | ||||
Cash Management | 72.4 | 5 | % | ||||
Total | $ | 1,418.9 | 100 | % |
(in billions) Asset Class | U.S. Funds | Non-U.S. Funds | Institutional Separate Accounts | Retail Separately Managed Accounts | Other Accounts, Alternative Investment Products and Trusts | Total | ||||||||||||||||||
Fixed Income | $ | 199.1 | $ | 69.0 | $ | 342.8 | $ | 30.1 | $ | 15.7 | $ | 656.7 | ||||||||||||
Equity | 215.4 | 71.2 | 57.2 | 65.4 | 22.8 | 432.0 | ||||||||||||||||||
Multi-Asset | 81.9 | 8.0 | 6.4 | 7.8 | 29.7 | 133.8 | ||||||||||||||||||
Alternative | 6.0 | 9.0 | 33.1 | — | 75.9 | 124.0 | ||||||||||||||||||
Cash Management | 36.4 | 35.0 | 1.0 | — | — | 72.4 | ||||||||||||||||||
Total | $ | 538.8 | $ | 192.2 | $ | 440.5 | $ | 103.3 | $ | 144.1 | $ | 1,418.9 |
Item 1A. | Risk Factors. |
Item 1B. | Unresolved Staff Comments. |
Item 2. | Properties. |
Location | Owned Square Footage | Owned Square Footage Leased to Third Parties | ||||
San Mateo, California | 743,793 | 357,383 | ||||
St. Petersburg, Florida | 560,948 | 314,685 | ||||
Rancho Cordova, California | 445,023 | 62,660 | ||||
Hyderabad, India | 379,052 | — | ||||
Poznan, Poland | 284,436 | — | ||||
Ft. Lauderdale, Florida | 102,246 | 20,264 | ||||
Edinburgh, Scotland | 87,016 | 26,210 | ||||
Other | 90,891 | 12,091 | ||||
Total | 2,693,405 | 793,293 |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 2020 | — | $ | — | — | 39,722,462 | ||||||||
August 2020 | 669,887 | 21.06 | 669,887 | 39,052,575 | |||||||||
September 2020 | 838,451 | 20.26 | 838,451 | 38,214,124 | |||||||||
Total | 1,508,338 | 1,508,338 |
Item 6. | Selected Financial Data. |
as of and for the fiscal years ended September 30, | 20201 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Summary of Operations2 (in millions) | ||||||||||||||||||||
Operating revenues | $ | 5,566.5 | $ | 5,669.4 | $ | 6,204.5 | $ | 6,305.0 | $ | 6,534.6 | ||||||||||
Operating income | 1,048.9 | 1,466.9 | 2,028.2 | 2,199.6 | 2,295.1 | |||||||||||||||
Operating margin | 18.8 | % | 25.9 | % | 32.7 | % | 34.9 | % | 35.1 | % | ||||||||||
Net income attributable to Franklin Resources, Inc. | 798.9 | 3 | 1,195.7 | 4 | 764.4 | 5 | 1,696.7 | 1,726.7 | ||||||||||||
Financial Data (in millions) | ||||||||||||||||||||
Total assets | $ | 20,220.9 | $ | 14,532.2 | $ | 14,383.5 | $ | 17,534.0 | $ | 16,098.8 | ||||||||||
Debt | 3,017.1 | 696.9 | 695.9 | 1,044.2 | 1,401.2 | |||||||||||||||
Debt of consolidated investment products | 1,333.4 | 50.8 | 32.6 | 53.4 | 682.2 | |||||||||||||||
Franklin Resources, Inc. stockholders’ equity | 10,114.5 | 9,906.5 | 9,899.2 | 12,620.0 | 11,935.8 | |||||||||||||||
Operating cash flows | 1,021.4 | 201.6 | 2,229.7 | 1,135.4 | 1,727.7 | |||||||||||||||
Investing cash flows | (3,243.1 | ) | (1,077.1 | ) | (290.4 | ) | 52.0 | 192.2 | ||||||||||||
Financing cash flows | 194.2 | (40.5 | ) | (3,761.7 | ) | (956.0 | ) | (1,800.7 | ) | |||||||||||
Assets Under Management (in billions) | ||||||||||||||||||||
Ending | $ | 1,418.9 | $ | 692.6 | $ | 717.1 | $ | 753.2 | $ | 733.3 | ||||||||||
Average6 | 832.9 | 697.0 | 740.5 | 736.9 | 749.3 | |||||||||||||||
Per Common Share | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Basic | $ | 1.59 | $ | 2.35 | $ | 1.39 | $ | 3.01 | $ | 2.94 | ||||||||||
Diluted | 1.59 | 2.35 | 1.39 | 3.01 | 2.94 | |||||||||||||||
Cash dividends declared | 1.08 | 1.04 | 3.92 | 0.80 | 0.72 | |||||||||||||||
Book value | 20.43 | 19.84 | 19.07 | 22.74 | 20.93 |
1 | Includes the impact of the Company’s acquisition of Legg Mason, Inc. which was effective July 31, 2020. See Note 3 – Acquisitions in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report on Form 10‑K for more information. |
2 | In fiscal year 2020, the Company changed the presentation of its consolidated statements of income to include dividend and interest income and other expenses from consolidated investment products in non-operating income. Amounts for the comparative prior fiscal years have been reclassified to conform to the current presentation. These reclassifications had no impact on previously reported net income attributable to Franklin Resources, Inc. |
3 | Includes an income tax benefit of $27.0 million, net of valuation allowance, from capital losses subsequent to the change in corporate tax structure of a foreign holding company to a U.S. branch. |
4 | Includes an income tax charge of $86.0 million due to a revision to the estimated income tax charge that was recognized in fiscal year 2018 resulting from enactment of the Tax Cuts and Jobs Act of 2017 (“the Tax Act”). |
5 | Includes an estimated income tax charge of $968.8 million resulting from enactment of the Tax Act. |
6 | Represents simple monthly average AUM. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
(in millions, except per share data) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 20201 | 2019 | 2018 | |||||||||||||||
Operating revenues2 | $ | 5,566.5 | $ | 5,669.4 | $ | 6,204.5 | (2 | %) | (9 | %) | ||||||||
Operating income2 | 1,048.9 | 1,466.9 | 2,028.2 | (28 | %) | (28 | %) | |||||||||||
Operating margin3 | 18.8 | % | 25.9 | % | 32.7 | % | ||||||||||||
Net income attributable to Franklin Resources, Inc. | $ | 798.9 | $ | 1,195.7 | $ | 764.4 | (33 | %) | 56 | % | ||||||||
Diluted earnings per share | $ | 1.59 | $ | 2.35 | $ | 1.39 | (32 | %) | 69 | % | ||||||||
As adjusted (non-GAAP):4 | ||||||||||||||||||
Adjusted operating income | $ | 1,491.1 | $ | 1,654.2 | $ | 2,093.5 | (10 | %) | (21 | %) | ||||||||
Adjusted operating margin | 38.5 | % | 42.6 | % | 49.8 | % | ||||||||||||
Adjusted net income | $ | 1,311.0 | $ | 1,331.3 | $ | 798.1 | (2 | %) | 67 | % | ||||||||
Adjusted diluted earnings per share | $ | 2.61 | $ | 2.62 | $ | 1.45 | 0 | % | 81 | % |
1 | Includes the impact of the Company’s acquisition of Legg Mason, Inc. which was effective July 31, 2020. See Note 3 – Acquisitions in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for information. |
2 | In fiscal year 2020, the Company changed the presentation of its consolidated statements of income to include dividend and interest income and other expenses from consolidated investment products in non-operating income (expense). Amounts for the comparative prior fiscal years have been reclassified to conform to the current presentation. These reclassifications had no impact on previously reported net income attributable to Franklin Resources, Inc. |
3 | Defined as operating income divided by total operating revenues. |
4 | “Adjusted operating income,” “adjusted operating margin,” “adjusted net income” and “adjusted diluted earnings per share” are based on methodologies other than generally accepted accounting principles. See “Supplemental Non-GAAP Financial Measures” for definitions and reconciliations of these measures. |
(in billions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
as of September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Fixed Income | $ | 656.7 | $ | 250.6 | $ | 258.5 | 162 | % | (3 | %) | ||||||||
Equity | 432.0 | 263.9 | 304.6 | 64 | % | (13 | %) | |||||||||||
Multi-Asset | 133.8 | 123.6 | 126.7 | 8 | % | (2 | %) | |||||||||||
Alternative | 124.0 | 45.0 | 18.0 | 176 | % | 150 | % | |||||||||||
Cash Management | 72.4 | 9.5 | 9.3 | 662 | % | 2 | % | |||||||||||
Total | $ | 1,418.9 | $ | 692.6 | $ | 717.1 | 105 | % | (3 | %) | ||||||||
Average for the Year | $ | 832.9 | $ | 697.0 | $ | 740.5 | 19 | % | (6 | %) |
(in billions) | Average AUM | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Fixed Income | $ | 330.5 | $ | 256.1 | $ | 275.2 | 29 | % | (7 | %) | ||||||||
Equity | 290.3 | 275.5 | 310.8 | 5 | % | (11 | %) | |||||||||||
Multi-Asset | 123.0 | 122.2 | 129.3 | 1 | % | (5 | %) | |||||||||||
Alternative | 63.8 | 33.7 | 17.2 | 89 | % | 96 | % | |||||||||||
Cash Management | 25.3 | 9.5 | 8.0 | 166 | % | 19 | % | |||||||||||
Total | $ | 832.9 | $ | 697.0 | $ | 740.5 | 19 | % | (6 | %) |
Mix of Average AUM | |||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | ||||||
Fixed Income | 39 | % | 37 | % | 37 | % | |||
Equity | 35 | % | 40 | % | 42 | % | |||
Multi-Asset | 15 | % | 17 | % | 18 | % | |||
Alternative | 8 | % | 5 | % | 2 | % | |||
Cash Management | 3 | % | 1 | % | 1 | % | |||
Total | 100 | % | 100 | % | 100 | % |
(in billions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Beginning AUM | $ | 692.6 | $ | 717.1 | $ | 753.2 | (3 | %) | (5 | %) | ||||||||
Long-term inflows | 182.4 | 175.0 | 165.5 | 4 | % | 6 | % | |||||||||||
Long-term outflows | (244.0 | ) | (206.8 | ) | (203.5 | ) | 18 | % | 2 | % | ||||||||
Long-term net flows | (61.6 | ) | (31.8 | ) | (38.0 | ) | 94 | % | (16 | %) | ||||||||
Cash management net flows | (9.9 | ) | 0.9 | 3.5 | NM | (74 | %) | |||||||||||
Total net flows | (71.5 | ) | (30.9 | ) | (34.5 | ) | 131 | % | (10 | %) | ||||||||
Acquisitions | 806.5 | 26.4 | 9.8 | NM | 169 | % | ||||||||||||
Net market change, distributions and other | (8.7 | ) | (20.0 | ) | (11.4 | ) | (57 | %) | 75 | % | ||||||||
Ending AUM | $ | 1,418.9 | $ | 692.6 | $ | 717.1 | 105 | % | (3 | %) |
(in billions) | ||||||||||||||||||||||||
for the fiscal year ended September 30, 2020 | Fixed Income | Equity | Multi-Asset | Alternative | Cash Management | Total | ||||||||||||||||||
AUM at October 1, 2019 | $ | 250.6 | $ | 263.9 | $ | 123.6 | $ | 45.0 | $ | 9.5 | $ | 692.6 | ||||||||||||
Long-term inflows | 79.7 | 64.3 | 27.8 | 10.6 | — | 182.4 | ||||||||||||||||||
Long-term outflows | (112.9 | ) | (90.2 | ) | (33.6 | ) | (7.3 | ) | — | (244.0 | ) | |||||||||||||
Long-term net flows | (33.2 | ) | (25.9 | ) | (5.8 | ) | 3.3 | — | (61.6 | ) | ||||||||||||||
Cash management net flows | — | — | — | — | (9.9 | ) | (9.9 | ) | ||||||||||||||||
Total net flows | (33.2 | ) | (25.9 | ) | (5.8 | ) | 3.3 | (9.9 | ) | (71.5 | ) | |||||||||||||
Acquisitions | 449.4 | 183.2 | 22.5 | 75.8 | 75.6 | 806.5 | ||||||||||||||||||
Net market change, distributions and other | (10.1 | ) | 10.8 | (6.5 | ) | (0.1 | ) | (2.8 | ) | (8.7 | ) | |||||||||||||
AUM at September 30, 2020 | $ | 656.7 | $ | 432.0 | $ | 133.8 | $ | 124.0 | $ | 72.4 | $ | 1,418.9 |
(in billions) | ||||||||||||||||||||||||
for the fiscal year ended September 30, 2019 | Fixed Income | Equity | Multi-Asset | Alternative | Cash Management | Total | ||||||||||||||||||
AUM at October 1, 2018 | $ | 258.5 | $ | 304.6 | $ | 126.7 | $ | 18.0 | $ | 9.3 | $ | 717.1 | ||||||||||||
Long-term inflows | 75.6 | 58.5 | 34.8 | 6.1 | — | 175.0 | ||||||||||||||||||
Long-term outflows | (81.9 | ) | (83.5 | ) | (35.9 | ) | (5.5 | ) | — | (206.8 | ) | |||||||||||||
Long-term net flows | (6.3 | ) | (25.0 | ) | (1.1 | ) | 0.6 | — | (31.8 | ) | ||||||||||||||
Cash management net flows | — | — | — | — | 0.9 | 0.9 | ||||||||||||||||||
Total net flows | (6.3 | ) | (25.0 | ) | (1.1 | ) | 0.6 | 0.9 | (30.9 | ) | ||||||||||||||
Acquisition | — | — | — | 26.4 | — | 26.4 | ||||||||||||||||||
Net market change, distributions and other | (1.6 | ) | (15.7 | ) | (2.0 | ) | — | (0.7 | ) | (20.0 | ) | |||||||||||||
AUM at September 30, 2019 | $ | 250.6 | $ | 263.9 | $ | 123.6 | $ | 45.0 | $ | 9.5 | $ | 692.6 |
(in billions) | ||||||||||||||||||||||||
for the fiscal year ended September 30, 2018 | Fixed Income | Equity | Multi-Asset | Alternative | Cash Management | Total | ||||||||||||||||||
AUM at October 1, 2017 | $ | 286.0 | $ | 311.7 | $ | 132.5 | $ | 16.7 | $ | 6.3 | $ | 753.2 | ||||||||||||
Long-term inflows | 71.2 | 63.9 | 25.6 | 4.8 | — | 165.5 | ||||||||||||||||||
Long-term outflows | (82.4 | ) | (88.5 | ) | (29.0 | ) | (3.6 | ) | — | (203.5 | ) | |||||||||||||
Long-term net flows | (11.2 | ) | (24.6 | ) | (3.4 | ) | 1.2 | — | (38.0 | ) | ||||||||||||||
Cash management net flows | — | — | — | — | 3.5 | 3.5 | ||||||||||||||||||
Total net flows | (11.2 | ) | (24.6 | ) | (3.4 | ) | 1.2 | 3.5 | (34.5 | ) | ||||||||||||||
Acquisition | — | 9.8 | — | — | — | 9.8 | ||||||||||||||||||
Net market change, distributions and other | (16.3 | ) | 7.7 | (2.4 | ) | 0.1 | (0.5 | ) | (11.4 | ) | ||||||||||||||
AUM at September 30, 2018 | $ | 258.5 | $ | 304.6 | $ | 126.7 | $ | 18.0 | $ | 9.3 | $ | 717.1 |
(in billions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
as of September 30, | 2020 | 2019 | 2018 | |||||||||||||||
United States | $ | 1,024.0 | $ | 477.9 | $ | 482.0 | 114 | % | (1 | %) | ||||||||
International | ||||||||||||||||||
Asia-Pacific | 168.6 | 89.0 | 91.4 | 89 | % | (3 | %) | |||||||||||
Europe, Middle East and Africa | 141.8 | 87.9 | 98.3 | 61 | % | (11 | %) | |||||||||||
Latin America1 | 59.4 | 13.5 | 15.6 | 340 | % | (13 | %) | |||||||||||
Canada | 25.1 | 24.3 | 29.8 | 3 | % | (18 | %) | |||||||||||
Total international | $ | 394.9 | $ | 214.7 | $ | 235.1 | 84 | % | (9 | %) | ||||||||
Total | $ | 1,418.9 | $ | 692.6 | $ | 717.1 | 105 | % | (3 | %) |
1 | Includes North America-based advisers serving non-resident clients. |
(in billions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
United States | $ | 587.2 | $ | 473.3 | $ | 491.1 | 24 | % | (4 | %) | ||||||||
International | ||||||||||||||||||
Asia-Pacific | 102.4 | 90.4 | 95.2 | 13 | % | (5 | %) | |||||||||||
Europe, Middle East and Africa | 97.8 | 91.5 | 105.8 | 7 | % | (14 | %) | |||||||||||
Latin America1 | 23.1 | 14.6 | 17.3 | 58 | % | (16 | %) | |||||||||||
Canada | 22.4 | 27.2 | 31.1 | (18 | %) | (13 | %) | |||||||||||
Total international | $ | 245.7 | $ | 223.7 | $ | 249.4 | 10 | % | (10 | %) | ||||||||
Total | $ | 832.9 | $ | 697.0 | $ | 740.5 | 19 | % | (6 | %) |
1 | Includes North America-based advisers serving non-resident clients. |
Peer Group Comparison1 | Benchmark Comparison2 | |||||||||||||||||||||||
% of Mutual Fund AUM in Top Two Peer Group Quartiles | % of Institutional AUM Exceeding Benchmark | |||||||||||||||||||||||
as of September 30, 2020 | 1-Year | 3-Year | 5-Year | 10-Year | 1-Year | 3-Year | 5-Year | 10-Year | ||||||||||||||||
Fixed Income | 58 | % | 53 | % | 51 | % | 56 | % | 73 | % | 80 | % | 92 | % | 97 | % | ||||||||
Equity | 48 | % | 56 | % | 56 | % | 47 | % | 28 | % | 33 | % | 27 | % | 50 | % | ||||||||
Total AUM3 | 47 | % | 48 | % | 47 | % | 58 | % | 63 | % | 69 | % | 73 | % | 84 | % |
1 | Mutual fund performance is sourced from Morningstar and measures the percent of ranked AUM in the top two quartiles versus peers. Total mutual fund AUM measured for the 1-, 3-, 5- and 10-year periods represents 39%, 38%, 38% and 36% of our total AUM as of September 30, 2020. |
2 | Institutional performance measures the percent of institutional AUM beating its benchmark. The benchmark comparisons are based on each account’s/composite’s (composites may include retail separately managed accounts and mutual fund assets managed as part of the same strategy) return as compared to a market index that has been selected to be generally consistent with the asset class of the account/composite. Total institutional AUM measured for the 1-, 3-, 5- and 10-year periods represents 55%, 54%, 52% and 48% of our total AUM as of September 30, 2020. |
3 | Total AUM includes performance of our multi-asset and alternative AUM, which each represent 9% of our total AUM at September 30, 2020. |
(in millions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Investment management fees | $ | 3,981.7 | $ | 3,985.2 | $ | 4,367.5 | 0 | % | (9 | %) | ||||||||
Sales and distribution fees | 1,362.0 | 1,444.6 | 1,599.8 | (6 | %) | (10 | %) | |||||||||||
Shareholder servicing fees | 195.1 | 216.3 | 221.9 | (10 | %) | (3 | %) | |||||||||||
Other | 27.7 | 23.3 | 15.3 | 19 | % | 52 | % | |||||||||||
Total Operating Revenues | $ | 5,566.5 | $ | 5,669.4 | $ | 6,204.5 | (2 | %) | (9 | %) |
(in basis points) | Industry Average1 | |||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||
Fixed Income2 | 27 | 29 | 30 | |||
Equity3 | 32 | 33 | 36 | |||
Multi-Asset | 37 | 38 | 40 | |||
Alternative4 | 62 | 72 | 77 | |||
Cash Management | 16 | 16 | 16 |
1 | U.S. industry asset-weighted average management fee rates were calculated using information available from Lipper, a Refinitiv Company, as of September 30, 2020, 2019 and 2018 and include all U.S.-registered open-end funds that reported expense data to Lipper as of the funds’ most recent annual report date, and for which expenses were equal to or greater than zero. As defined by Lipper, management fees include fees from providing advisory and fund administration services. The averages combine retail and institutional funds data and include all share classes and distribution channels, without exception. Variable annuity and fund of fund products are not included. |
2 | The decreases in the average rate in fiscal years 2020 and 2019 reflect higher weightings of two large low-fee passive funds and lower weightings of two large higher-fee actively managed funds. |
3 | The decreases in the average rate in fiscal years 2020 and 2019 reflect higher weightings of two large low-fee passive funds. |
4 | The decreases in the average rate in fiscal years 2020 and 2019 reflect higher weightings of one large low-fee passive fund. |
(in millions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Asset-based fees | $ | 1,096.3 | $ | 1,188.2 | $ | 1,314.3 | (8 | %) | (10 | %) | ||||||||
Sales-based fees | 245.9 | 244.0 | 270.3 | 1 | % | (10 | %) | |||||||||||
Contingent sales charges | 19.8 | 12.4 | 15.2 | 60 | % | (18 | %) | |||||||||||
Sales and Distribution Fees | $ | 1,362.0 | $ | 1,444.6 | $ | 1,599.8 | (6 | %) | (10 | %) |
(in millions) | 2020 | 2019 | 2018 | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||
for the fiscal years ended September 30, | ||||||||||||||||||
Compensation and benefits | $ | 1,873.9 | $ | 1,584.7 | $ | 1,390.6 | 18 | % | 14 | % | ||||||||
Sales, distribution and marketing | 1,703.1 | 1,819.6 | 2,039.7 | (6 | %) | (11 | %) | |||||||||||
Information systems and technology | 288.4 | 258.5 | 243.9 | 12 | % | 6 | % | |||||||||||
Occupancy | 147.9 | 133.6 | 128.6 | 11 | % | 4 | % | |||||||||||
Amortization of intangible assets | 54.0 | 14.7 | 1.8 | 267 | % | 717 | % | |||||||||||
General, administrative and other | 450.3 | 391.4 | 371.7 | 15 | % | 5 | % | |||||||||||
Total Operating Expenses | $ | 4,517.6 | $ | 4,202.5 | $ | 4,176.3 | 7 | % | 1 | % |
(in millions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Salaries, wages and benefits | $ | 1,072.1 | $ | 974.9 | $ | 928.4 | 10 | % | 5 | % | ||||||||
Variable compensation | 551.2 | 490.6 | 454.3 | 12 | % | 8 | % | |||||||||||
Acquisition-related retention | 195.8 | 63.7 | 7.9 | 207 | % | 706 | % | |||||||||||
Special termination benefits | 54.8 | 55.5 | — | (1 | %) | NM | ||||||||||||
Compensation and Benefits Expenses | $ | 1,873.9 | $ | 1,584.7 | $ | 1,390.6 | 18 | % | 14 | % |
(in millions) | 2020 | 2019 | 2018 | 2020 vs. 2019 | 2019 vs. 2018 | |||||||||||||
for the fiscal years ended September 30, | ||||||||||||||||||
Asset-based expenses | $ | 1,369.0 | $ | 1,476.0 | $ | 1,703.9 | (7 | %) | (13 | %) | ||||||||
Sales-based expenses | 253.8 | 257.8 | 255.1 | (2 | %) | 1 | % | |||||||||||
Amortization of deferred sales commissions | 80.3 | 85.8 | 80.7 | (6 | %) | 6 | % | |||||||||||
Sales, Distribution and Marketing | $ | 1,703.1 | $ | 1,819.6 | $ | 2,039.7 | (6 | %) | (11 | %) |
(in millions) | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||||||||
Investment and other income (losses), net | $ | (38.4 | ) | $ | 141.4 | $ | 200.3 | NM | (29 | %) | ||||||||
Interest expense | (33.4 | ) | (22.4 | ) | (46.3 | ) | 49 | % | (52 | %) | ||||||||
Investment and other income of consolidated investment products, net | 70.2 | 78.8 | 59.6 | (11 | %) | 32 | % | |||||||||||
Expenses of consolidated investment products | (29.4 | ) | (16.9 | ) | (26.6 | ) | 74 | % | (36 | %) | ||||||||
Other Income (Expenses), Net | $ | (31.0 | ) | $ | 180.9 | $ | 187.0 | NM | (3 | %) |
Accounting Classification 1 | Total Direct Portfolio | |||||||||||||||||||||||
(in millions) | Cash and Cash Equivalents | Investments, at Fair Value | Equity Method Investments | Other Investments | Direct Investments in CIPs | |||||||||||||||||||
Cash and Cash Equivalents | $ | 3,026.8 | $ | — | $ | — | $ | — | $ | — | $ | 3,026.8 | ||||||||||||
Investments | ||||||||||||||||||||||||
Fixed Income | — | 198.7 | 139.7 | 40.8 | 242.9 | 622.1 | ||||||||||||||||||
Equity | — | 209.4 | 308.9 | 22.8 | 67.9 | 609.0 | ||||||||||||||||||
Multi-Asset | — | 64.4 | 50.2 | — | 64.3 | 178.9 | ||||||||||||||||||
Alternative | — | 32.3 | 183.4 | 19.9 | 410.2 | 645.8 | ||||||||||||||||||
Total investments | — | 504.8 | 682.2 | 83.5 | 785.3 | 2,055.8 | ||||||||||||||||||
Total Cash and Cash Equivalents and Investments | $ | 3,026.8 | $ | 504.8 | $ | 682.2 | $ | 83.5 | $ | 785.3 | $ | 5,082.6 |
1 | See Note 1 – Significant Accounting Policies and Note 6 – Investments in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for information on investment accounting classifications. |
• | Elimination of operating revenues upon consolidation of investment products. |
• | Acquisition-related retention compensation. |
• | Impact on compensation and benefits expense from gains and losses on investments related to Legg Mason deferred compensation plans and seed investments, which is offset in investment and other income (expense), net. |
• | Other acquisition-related expenses including professional fees and fair value adjustments related to contingent consideration liabilities. |
• | Amortization and impairment of intangible assets and goodwill. |
• | Special termination benefits related to workforce optimization initiatives related to the acquisition of Legg Mason in fiscal year 2020, and voluntary separation and workforce reduction initiatives of 4.5% of our global workforce in fiscal year 2019. |
• | Acquisition-related performance-based investment management fees which are passed through as compensation and benefits expense. |
• | Sales and distribution fees and a portion of investment management fees allocated to cover sales, distribution and marketing expenses paid to the financial advisers and other intermediaries who sell our funds on our behalf. |
• | Elimination of operating revenues upon consolidation of investment products. |
• | Activities of CIPs, including investment and other income (losses), net, other expenses and income (loss) attributable to noncontrolling interests, net of revenues eliminated upon consolidation of investment products. |
• | Acquisition-related retention compensation. |
• | Other acquisition-related expenses including professional fees and fair value adjustments related to contingent consideration liabilities and the market-based component of retention awards. |
• | Amortization and impairment of intangible assets. |
• | Impairment of goodwill and write off of noncontrolling interests related to the wind down of a recently acquired business. |
• | Special termination benefits related to workforce optimization initiatives related to the acquisition of Legg Mason in fiscal year 2020, and voluntary separation and workforce reduction initiatives of 4.5% of our global workforce in fiscal year 2019. |
• | Net gains or losses on investments related to Legg Mason deferred compensation plans which are not offset by compensation and benefits expense. |
• | Unrealized investment gains and losses included in investment and other income (losses), net, other than those that are offset by compensation and benefits expense. |
• | Interest expense for amortization of Legg Mason debt premium from acquisition-date fair value adjustment. |
• | Net income tax expense of the above adjustments based on the respective blended rates applicable to the adjustments. |
(in millions) | 2020 | 2019 | 2018 | |||||||||
for the fiscal years ended September 30, | ||||||||||||
Operating income | $ | 1,048.9 | $ | 1,466.9 | $ | 2,028.2 | ||||||
Add (subtract): | ||||||||||||
Elimination of operating revenues upon consolidation of investment products¹ | 23.6 | 30.7 | 35.2 | |||||||||
Acquisition-related retention | 195.8 | 63.7 | 7.9 | |||||||||
Compensation and benefits expense from gain on deferred compensation and seed investments, net | 1.2 | — | — | |||||||||
Other acquisition-related expenses | 57.4 | 9.4 | 14.7 | |||||||||
Amortization of intangible assets | 54.0 | 14.7 | 1.8 | |||||||||
Impairment of goodwill and intangible assets | 55.4 | 13.3 | 5.7 | |||||||||
Special termination benefits | 54.8 | 55.5 | — | |||||||||
Adjusted operating income | $ | 1,491.1 | $ | 1,654.2 | $ | 2,093.5 | ||||||
Total operating revenues | $ | 5,566.5 | $ | 5,669.4 | $ | 6,204.5 | ||||||
Add (subtract): | ||||||||||||
Acquisition-related pass through performance fees | (9.4 | ) | — | — | ||||||||
Sales and distribution fees | (1,362.0 | ) | (1,444.6 | ) | (1,599.8 | ) | ||||||
Allocation of investment management fees for sales, distribution and marketing expenses | (341.1 | ) | (375.0 | ) | (439.9 | ) | ||||||
Elimination of operating revenues upon consolidation of investment products¹ | 23.6 | 30.7 | 35.2 | |||||||||
Adjusted operating revenues | $ | 3,877.6 | $ | 3,880.5 | $ | 4,200.0 | ||||||
Operating margin | 18.8 | % | 25.9 | % | 32.7 | % | ||||||
Adjusted operating margin | 38.5 | % | 42.6 | % | 49.8 | % |
(in millions, except per share data) | 2020 | 2019 | 2018 | |||||||||
for the fiscal years ended September 30, | ||||||||||||
Net income attributable to Franklin Resources, Inc. | $ | 798.9 | $ | 1,195.7 | $ | 764.4 | ||||||
Add (subtract): | ||||||||||||
Net income of consolidated investment products¹ | (4.6 | ) | (3.7 | ) | (5.8 | ) | ||||||
Acquisition-related retention | 195.8 | 63.7 | 7.9 | |||||||||
Other acquisition-related expenses | 58.6 | 9.4 | 14.5 | |||||||||
Amortization of intangible assets | 54.0 | 14.7 | 1.8 | |||||||||
Impairment of goodwill and intangible assets | 55.4 | 13.3 | 5.7 | |||||||||
Special termination benefits | 54.8 | 55.5 | — | |||||||||
Net gains on deferred compensation plan investments not offset by compensation and benefits expense | (0.1 | ) | — | — | ||||||||
Unrealized investment losses included in investment and other income (losses), net | 221.0 | 20.0 | 15.3 | |||||||||
Interest expense for amortization of debt premium | (4.7 | ) | — | — | ||||||||
Write off of noncontrolling interests | (16.7 | ) | — | — | ||||||||
Net income tax expense of adjustments | (101.4 | ) | (37.3 | ) | (5.7 | ) | ||||||
Adjusted net income | $ | 1,311.0 | $ | 1,331.3 | $ | 798.1 | ||||||
Diluted earnings per share | $ | 1.59 | $ | 2.35 | $ | 1.39 | ||||||
Adjusted diluted earnings per share | 2.61 | 2.62 | 1.45 |
1 | The impact of consolidated investment products is summarized as follows: |
(in millions) | 2020 | 2019 | 2018 | |||||||||
for the fiscal years ended September 30, | ||||||||||||
Elimination of operating revenues upon consolidation | $ | (23.6 | ) | $ | (30.7 | ) | $ | (35.2 | ) | |||
Other income, net | 33.6 | 39.8 | 18.6 | |||||||||
Less: income (loss) attributable to noncontrolling interests | 5.4 | 5.4 | (22.4 | ) | ||||||||
Net income | $ | 4.6 | $ | 3.7 | $ | 5.8 |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Operating cash flows | $ | 1,021.4 | $ | 201.6 | $ | 2,229.7 | ||||||
Investing cash flows | (3,243.1 | ) | (1,077.1 | ) | (290.4 | ) | ||||||
Financing cash flows | 194.2 | (40.5 | ) | (3,761.7 | ) |
(in millions) | ||||||||||||
as of September 30, | 2020 | 2019 | 2018 | |||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 3,026.8 | $ | 5,803.4 | $ | 6,610.8 | ||||||
Receivables | 1,114.8 | 740.0 | 733.7 | |||||||||
Investments | 982.2 | 2,029.4 | 2,130.6 | |||||||||
Total Liquid Assets | $ | 5,123.8 | $ | 8,572.8 | $ | 9,475.1 | ||||||
Liability | ||||||||||||
Debt | $ | 3,017.1 | $ | 696.9 | $ | 695.9 |
(in millions) | Payments Due by Fiscal Year | |||||||||||||||||||||||||||
as of September 30, 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | There- after | Total | |||||||||||||||||||||
Debt1 | ||||||||||||||||||||||||||||
Principal | $ | — | $ | 300.0 | $ | — | $ | 250.0 | $ | 400.0 | $ | 1,750.0 | $ | 2,700.0 | ||||||||||||||
Interest | 125.2 | 125.2 | 116.8 | 116.8 | 101.2 | 1,913.9 | 2,499.1 | |||||||||||||||||||||
Operating leases | 134.8 | 131.5 | 125.4 | 89.0 | 50.2 | 153.5 | 684.4 | |||||||||||||||||||||
Purchase obligations2 | 186.7 | 112.4 | 60.9 | 46.2 | 28.7 | 8.2 | 443.1 | |||||||||||||||||||||
Purchase consideration obligation3 | 47.9 | 31.9 | — | — | — | — | 79.8 | |||||||||||||||||||||
Total Contractual Obligations | 494.6 | 701.0 | 303.1 | 502.0 | 580.1 | 3,825.6 | 6,406.4 | |||||||||||||||||||||
Committed capital contributions4 | 335.6 | — | — | — | — | — | 335.6 | |||||||||||||||||||||
Contingent consideration liabilities5 | 1.7 | 10.2 | 8.1 | 7.1 | — | — | 27.1 | |||||||||||||||||||||
Federal transition tax liability6 | 53.3 | 74.1 | 74.1 | 138.9 | 185.2 | 231.6 | 757.2 | |||||||||||||||||||||
Total Contractual Obligations, Commitments, and Contingent Liabilities | $ | 885.2 | $ | 785.3 | $ | 385.3 | $ | 648.0 | $ | 765.3 | $ | 4,057.2 | $ | 7,526.3 |
1 | Debt principal represents amounts due on maturity. Excludes 1.600% notes with a principal amount of $750.0 million due 2030 which were issued on October 19, 2020. See Note 22 – Subsequent Event in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report. |
2 | Purchase obligations include contractual amounts that will be due to purchase goods and services to be used in our operations and may be canceled at earlier times than those indicated under certain conditions that may include termination fees. |
3 | Represents purchase consideration payments to be made in connection with the acquisition of Legg Mason. |
4 | Committed capital contributions relate to discretionary commitments to invest in sponsored funds and other investment products and entities, including CIPs. Generally, the timing of the funding of these commitments is unknown as they are callable on demand at any time prior to the expiration of the commitment periods. |
5 | The amount of contingent consideration liabilities reflected for any year represents the expected settlement amounts as of September 30, 2020. The fair value of the aggregate contingent consideration liability at September 30, 2020 totaled $25.3 million and is included in other liabilities in the consolidated balance sheet. |
6 | Transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries’ earnings under the Tax Act. |
(in millions, except per share data) | ||||||||||||||||
Quarter ended | December 31 | March 31 | June 30 | September 30 | ||||||||||||
Fiscal year 20201 | ||||||||||||||||
Operating revenues | $ | 1,389.2 | $ | 1,311.2 | $ | 1,161.1 | $ | 1,705.0 | ||||||||
Operating income | 372.9 | 339.9 | 232.5 | 103.6 | ||||||||||||
Net income attributable to Franklin Resources, Inc.2 | 350.5 | 79.1 | 290.4 | 78.9 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.70 | $ | 0.16 | $ | 0.58 | $ | 0.15 | ||||||||
Diluted | 0.70 | 0.16 | 0.58 | 0.15 | ||||||||||||
Dividends declared per share | $ | 0.27 | $ | 0.27 | $ | 0.27 | $ | 0.27 | ||||||||
AUM (in billions) | ||||||||||||||||
Ending | $ | 698.3 | $ | 580.3 | $ | 622.8 | $ | 1,418.9 | ||||||||
Average | 693.8 | 655.8 | 605.0 | 1,227.8 | ||||||||||||
Fiscal year 20191 | ||||||||||||||||
Operating revenues | $ | 1,385.4 | $ | 1,412.8 | $ | 1,448.4 | $ | 1,422.8 | ||||||||
Operating income | 385.3 | 367.3 | 349.2 | 365.1 | ||||||||||||
Net income attributable to Franklin Resources, Inc.3 | 275.9 | 367.5 | 245.9 | 306.4 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.72 | $ | 0.48 | $ | 0.61 | ||||||||
Diluted | 0.54 | 0.72 | 0.48 | 0.61 | ||||||||||||
Dividends declared per share | $ | 0.26 | $ | 0.26 | $ | 0.26 | $ | 0.26 | ||||||||
AUM (in billions) | ||||||||||||||||
Ending | $ | 649.9 | $ | 712.3 | $ | 715.2 | $ | 692.6 | ||||||||
Average | 683.2 | 688.6 | 710.8 | 702.0 |
1 | In the quarter ended September 30, 2020, the Company changed the presentation of its consolidated statements of income to include dividend and interest income and other expenses from consolidated investment products in non-operating income. Amounts for the comparative prior fiscal quarters have been reclassified to conform to the current presentation. These reclassifications had no impact on previously reported net income attributable to Franklin Resources, Inc. |
2 | Information presented for the quarter ended September 30, 2020 includes the impact of the Legg Mason, Inc. acquisition effective July 31, 2020. See Note 3 – Acquisitions in the notes to consolidated financial statements in Item 8 of Part II of this Annual Report for more information. |
3 | The quarter ended June 30, 2019 includes an income tax charge of $86.4 million due to the reversal of a tax benefit recognized in fiscal year 2018 upon issuance of final regulations by the U.S. Department of Treasury. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
(in millions) | Carrying Value | Carrying Value Assuming a 10% Increase | Carrying Value Assuming a 10% Decrease | |||||||||
Investments, at fair value | $ | 504.8 | $ | 555.3 | $ | 454.3 | ||||||
Direct investments in CIPs | 785.3 | 863.8 | 706.8 | |||||||||
Total | $ | 1,290.1 | $ | 1,419.1 | $ | 1,161.1 |
Item 8. | Financial Statements and Supplementary Data. |
CONTENTS | Page | |
66 | ||
67 | ||
Consolidated Financial Statements of Franklin Resources, Inc. and its consolidated subsidiaries: | ||
70 | ||
71 | ||
72 | ||
73 | ||
74 | ||
76 |
FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(in millions, except per share data) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Operating Revenues | ||||||||||||
Investment management fees | $ | $ | $ | |||||||||
Sales and distribution fees | ||||||||||||
Shareholder servicing fees | ||||||||||||
Other | ||||||||||||
Total operating revenues | ||||||||||||
Operating Expenses | ||||||||||||
Compensation and benefits | ||||||||||||
Sales, distribution and marketing | ||||||||||||
Information systems and technology | ||||||||||||
Occupancy | ||||||||||||
Amortization of intangible assets | ||||||||||||
General, administrative and other | ||||||||||||
Total operating expenses | ||||||||||||
Operating Income | ||||||||||||
Other Income (Expenses) | ||||||||||||
Investment and other income (losses), net | ( | ) | ||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ||||||
Investment and other income of consolidated investment products, net | ||||||||||||
Expenses of consolidated investment products | ( | ) | ( | ) | ( | ) | ||||||
Other income (expenses), net | ( | ) | ||||||||||
Income before taxes | ||||||||||||
Taxes on income | ||||||||||||
Net income | ||||||||||||
Less: net income (loss) attributable to | ||||||||||||
Redeemable noncontrolling interests | ( | ) | ||||||||||
Nonredeemable noncontrolling interests | ( | ) | ( | ) | ||||||||
Net Income Attributable to Franklin Resources, Inc. | $ | $ | $ | |||||||||
Earnings per Share | ||||||||||||
Basic | $ | $ | $ | |||||||||
Diluted |
FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Net Income | $ | $ | $ | |||||||||
Other Comprehensive Income (Loss) | ||||||||||||
Currency translation adjustments, net of tax | ( | ) | ( | ) | ||||||||
Net unrealized gains (losses) on defined benefit plans, net of tax | ( | ) | ( | ) | ||||||||
Net unrealized gains on investments, net of tax | ||||||||||||
Total other comprehensive income (loss) | ( | ) | ( | ) | ||||||||
Total comprehensive income | ||||||||||||
Less: comprehensive income (loss) attributable to | ||||||||||||
Redeemable noncontrolling interests | ( | ) | ||||||||||
Nonredeemable noncontrolling interests | ( | ) | ( | ) | ||||||||
Comprehensive Income Attributable to Franklin Resources, Inc. | $ | $ | $ |
FRANKLIN RESOURCES, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
(in millions, except share and per share data) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Receivables | ||||||||
Investments (including $504.8 and $589.7 at fair value at September 30, 2020 and 2019) | ||||||||
Assets of consolidated investment products | ||||||||
Cash and cash equivalents | ||||||||
Receivables | ||||||||
Investments, at fair value | ||||||||
Property and equipment, net | ||||||||
Goodwill | ||||||||
Intangible assets, net | ||||||||
Operating lease right-of-use assets | ||||||||
Other | ||||||||
Total Assets | $ | $ | ||||||
Liabilities | ||||||||
Compensation and benefits | $ | $ | ||||||
Accounts payable and accrued expenses | ||||||||
Dividends | ||||||||
Commissions | ||||||||
Income taxes | ||||||||
Debt | ||||||||
Liabilities of consolidated investment products | ||||||||
Accounts payable and accrued expenses | ||||||||
Debt | ||||||||
Deferred tax liabilities | ||||||||
Operating lease liabilities | ||||||||
Other | ||||||||
Total liabilities | ||||||||
Commitments and Contingencies (Note 16) | ||||||||
Redeemable Noncontrolling Interests | ||||||||
Stockholders’ Equity | ||||||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued | ||||||||
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 495,116,677 and 499,303,269 shares issued and outstanding at September 30, 2020 and 2019 | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total Franklin Resources, Inc. stockholders’ equity | ||||||||
Nonredeemable noncontrolling interests | ||||||||
Total stockholders’ equity | ||||||||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ | $ |
FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||
Franklin Resources, Inc. | Non- redeemable Non- controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accum- ulated Other Compre- hensive Loss | Stockholders’ Equity | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
as of and for the fiscal years ended September 30, 2020, 2019 and 2018 | Shares | Amount | |||||||||||||||||||||||||||||
Balance at October 1, 2017 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Adoption of new accounting guidance | ( | ) | ( | ) | |||||||||||||||||||||||||||
Net income (loss) | ( | ) | |||||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Dividends declared on common stock ($3.92 per share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Repurchase of common stock | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||
Acquisition | |||||||||||||||||||||||||||||||
Net distributions and other | ( | ) | ( | ) | |||||||||||||||||||||||||||
Net consolidation of investment product | |||||||||||||||||||||||||||||||
Purchase of noncontrolling interest | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Adoption of new accounting guidance | ( | ) | |||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Dividends declared on common stock ($1.04 per share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Repurchase of common stock | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||
Net subscriptions and other | |||||||||||||||||||||||||||||||
Net consolidation of investment product | |||||||||||||||||||||||||||||||
Acquisition | |||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||
Net income (loss) | ( | ) | |||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||
Dividends declared on common stock ($1.08 per share) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Repurchase of common stock | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||
Issuance of common stock | |||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||
Net subscriptions and other | |||||||||||||||||||||||||||||||
Deconsolidation of investment products | ( | ) | ( | ) | |||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||
Wind-down of a subsidiary | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | $ |
FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Net Income | $ | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Stock-based compensation | ||||||||||||
Amortization of deferred sales commissions | ||||||||||||
Depreciation and other amortization | ||||||||||||
Amortization of intangible assets | ||||||||||||
Impairments of intangible assets and goodwill | ||||||||||||
Losses (income) from investments in equity method investees | ( | ) | ||||||||||
Net losses on investments of consolidated investment products | ||||||||||||
Net (purchase) liquidation of investments by consolidated investment products | ( | ) | ( | ) | ||||||||
Deferred income taxes | ( | ) | ( | ) | ( | ) | ||||||
Other | ( | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Decrease (increase) in receivables and other assets | ( | ) | ( | ) | ||||||||
Decrease (increase) in receivables of consolidated investment products | ( | ) | ( | ) | ||||||||
Decrease (increase) in investments, net | ( | ) | ||||||||||
Decrease in operating lease right-of-use assets | ||||||||||||
Increase (decrease) in accrued compensation and benefits | ( | ) | ( | ) | ||||||||
Decrease in commissions payable | ( | ) | ( | ) | ( | ) | ||||||
Increase (decrease) in income taxes payable | ( | ) | ( | ) | ||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | ( | ) | ( | ) | ||||||||
Increase in accounts payable and accrued expenses of consolidated investment products | ||||||||||||
Decrease in operating lease liabilities | ( | ) | ||||||||||
Net cash provided by operating activities | ||||||||||||
Purchase of investments | ( | ) | ( | ) | ( | ) | ||||||
Liquidation of investments | ||||||||||||
Purchase of investments by consolidated collateralized loan obligations | ( | ) | ||||||||||
Liquidation of investments by consolidated collateralized loan obligations | ||||||||||||
Purchase of investments by consolidated investment products | ( | ) | ||||||||||
Liquidation of investments by consolidated investment products | ||||||||||||
Issuance of loans receivable, net | ( | ) | ||||||||||
Additions of property and equipment, net | ( | ) | ( | ) | ( | ) | ||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | ( | ) | ||||||
Net consolidation (deconsolidation) of investment products | ( | ) | ( | ) | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ( | ) |
FRANKLIN RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS [Table continued from previous page] | ||||||||||||
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Issuance of common stock | $ | $ | $ | |||||||||
Dividends paid on common stock | ( | ) | ( | ) | ( | ) | ||||||
Repurchase of common stock | ( | ) | ( | ) | ( | ) | ||||||
Payments on debt | ( | ) | ||||||||||
Proceeds from loan | ||||||||||||
Payments on loan | ( | ) | ( | ) | ||||||||
Proceeds from debt of consolidated investment products | ||||||||||||
Payments on debt by consolidated investment products | ( | ) | ( | ) | ( | ) | ||||||
Payments on contingent consideration liabilities | ( | ) | ( | ) | ( | ) | ||||||
Noncontrolling interests | ||||||||||||
Net cash provided by (used in) financing activities | ( | ) | ( | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | ||||||||
Decrease in cash and cash equivalents | ( | ) | ( | ) | ( | ) | ||||||
Cash and cash equivalents, beginning of year | ||||||||||||
Cash and Cash Equivalents, End of Year | $ | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash paid for income taxes | $ | $ | $ | |||||||||
Cash paid for interest | ||||||||||||
Cash paid for interest by consolidated investment products |
2019 | 2018 | |||||||||||||||||||||||
(in millions) for the fiscal years ended September | As Reported | Adjustments | As Amended | As Reported | Adjustments | As Amended | ||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||
Other | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
General, administrative and other1 | ( | ) | ( | ) | ||||||||||||||||||||
Other Income (Expenses) | ||||||||||||||||||||||||
Investment and other income (losses), net | ||||||||||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Investment and other income of consolidated investment products, net | ||||||||||||||||||||||||
Expenses of consolidated investment products | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Other income (expenses), net | $ | $ | $ | $ | $ | $ |
1 | General, administrative and other includes amortization of intangible assets. |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities, which may include published net asset values (“NAV”) for fund products. |
Level 2 | Observable inputs other than Level 1 quoted prices, such as non-binding quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or model-based valuation methodologies that utilize significant assumptions that are observable or corroborated by observable market data. |
Level 3 | Unobservable inputs that are supported by little or no market activity. These inputs require significant management judgment and reflect the Company’s estimation of assumptions that market participants would use in pricing the asset or liability. |
(in millions) | Estimated Fair Value | |||
as of July 31, 2020 | ||||
Cash and cash equivalents | $ | |||
Cash and cash equivalents of consolidated investment products | ||||
Investments | ||||
Investments of consolidated investment products | ||||
Receivables | ||||
Indefinite-lived intangible assets | ||||
Definite-lived intangible assets1 | ||||
Goodwill | ||||
Deferred tax assets | ||||
Other assets | ||||
Debt | ( | ) | ||
Debt of consolidated investment products | ( | ) | ||
Compensation and benefits | ( | ) | ||
Deferred tax liabilities | ( | ) | ||
Other liabilities | ( | ) | ||
Redeemable noncontrolling interests | ( | ) | ||
Nonredeemable noncontrolling interests | ( | ) | ||
Total Identifiable Net Assets | $ |
1 | Includes $ |
(in millions) | ||||||||
for the fiscal year ended September 30, | 2020 | 2019 | ||||||
Revenues | $ | $ | ||||||
Net Income Attributable to Franklin Resources, Inc. |
(in millions) | Estimated Fair Value | |||
as of February 1, 2019 | ||||
Cash | $ | |||
Investments | ||||
Investments of consolidated investment products | ||||
Indefinite-lived intangible assets | ||||
Definite-lived intangible assets | ||||
Goodwill | ||||
Other assets | ||||
Other liabilities | ( | ) | ||
Nonredeemable noncontrolling interests | ( | ) | ||
Total Identifiable Net Assets | $ |
(in millions, except per share data) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Net income attributable to Franklin Resources, Inc. | $ | $ | $ | |||||||||
Less: allocation of earnings to participating nonvested stock and stock unit awards | ||||||||||||
Net Income Available to Common Stockholders | $ | $ | $ | |||||||||
Weighted-average shares outstanding – basic | ||||||||||||
Dilutive effect of nonparticipating nonvested stock unit awards | ||||||||||||
Weighted-Average Shares Outstanding – Diluted | ||||||||||||
Earnings per Share | ||||||||||||
Basic | $ | $ | $ | |||||||||
Diluted |
(in millions) | United States | Luxembourg | Americas Excluding United States | Asia- Pacific | Europe, Middle East and Africa, Excluding Luxembourg | Total | ||||||||||||||||||
for the fiscal year ended September 30, 2020 | ||||||||||||||||||||||||
Investment management fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Sales and distribution fees | ||||||||||||||||||||||||
Shareholder servicing fees | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(in millions) | United States | Luxembourg | Americas Excluding United States | Asia- Pacific | Europe, Middle East and Africa, Excluding Luxembourg | Total | ||||||||||||||||||
for the fiscal year ended September 30, 2019 | ||||||||||||||||||||||||
Investment management fees | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Sales and distribution fees | ||||||||||||||||||||||||
Shareholder servicing fees | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(in millions) | United States | Luxembourg | Americas Excluding United States | Asia- Pacific | Europe, Middle East and Africa, Excluding Luxembourg | Total | ||||||||||||||||||
for the fiscal year ended September 30, 2018 | ||||||||||||||||||||||||
Investment management fees | $ | $ | $ | $ | $ | |||||||||||||||||||
Sales and distribution fees | ||||||||||||||||||||||||
Shareholder servicing fees | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Investments, at fair value | ||||||||
Sponsored funds and separate accounts | $ | $ | ||||||
Investments related to long-term incentive plans | ||||||||
Other equity and debt investments | ||||||||
Life settlement contracts | ||||||||
Total investments, at fair value | ||||||||
Investments in equity method investees | ||||||||
Other investments | ||||||||
Total | $ | $ |
(in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||
as of September 30, 2020 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments, at fair value | ||||||||||||||||||||
Sponsored funds and separate accounts | $ | $ | $ | $ | $ | |||||||||||||||
Investments related to long-term incentive plans | ||||||||||||||||||||
Other equity and debt investments | ||||||||||||||||||||
Contingent consideration asset | — | |||||||||||||||||||
Total Assets Measured at Fair Value | $ | $ | $ | $ | $ | |||||||||||||||
Liabilities | ||||||||||||||||||||
Contingent consideration liabilities | $ | $ | $ | $ | — | $ |
(in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||
as of September 30, 2019 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments, at fair value | ||||||||||||||||||||
Sponsored funds and separate accounts | $ | $ | $ | $ | $ | |||||||||||||||
Other equity and debt investments | ||||||||||||||||||||
Life settlement contracts | — | |||||||||||||||||||
Total Assets Measured at Fair Value | $ | $ | $ | $ | $ |
2020 | 2019 | |||||||||||||||||||
(in millions) | Investments | Contingent Consideration Asset | Contingent Consideration Liabilities | Investments | Contingent Consideration Liability | |||||||||||||||
for the fiscal years ended September 30, | ||||||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | $ | ( | ) | |||||||||||||
Acquisitions | — | ( | ) | — | ||||||||||||||||
Total realized and unrealized gains (losses) | ||||||||||||||||||||
Included in investment and other income (losses), net | ||||||||||||||||||||
Included in general, administrative and other expense | ( | ) | ||||||||||||||||||
Purchases | ||||||||||||||||||||
Sales | ( | ) | ( | ) | ||||||||||||||||
Settlements | ( | ) | ( | ) | ||||||||||||||||
Consolidation of investment product | ( | ) | — | — | — | |||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||
Transfers out of Level 3 | ( | ) | ||||||||||||||||||
Balance at End of Year | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of year | $ | ( | ) | $ | $ | $ | $ |
Fair Value Level | 2020 | 2019 | ||||||||||||||||
(in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
as of September 30, | ||||||||||||||||||
Financial Assets | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | $ | $ | $ | |||||||||||||
Other investments | ||||||||||||||||||
Time deposits | 2 | |||||||||||||||||
Equity securities | 3 | |||||||||||||||||
Loans receivable | 3 | |||||||||||||||||
Financial Liability | ||||||||||||||||||
Debt | 2 | $ | $ | $ | $ |
(in millions) | Useful Lives In Years | |||||||||
as of September 30, | 2020 | 2019 | ||||||||
Buildings and leasehold improvements | $ | $ | 5 – 35 | |||||||
Software | 3 - 10 | |||||||||
Equipment and furniture | 3 - 10 | |||||||||
Land | N/A | |||||||||
Total cost | ||||||||||
Less: accumulated depreciation and amortization | ( | ) | ( | ) | ||||||
Property and Equipment, Net | $ | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Goodwill | $ | $ | ||||||
Indefinite-lived intangible assets | ||||||||
Definite-lived intangible assets, net | ||||||||
Goodwill and Other Intangible Assets, Net | $ | $ |
(in millions) | ||||||||
for the fiscal years ended September 30, | 2020 | 2019 | ||||||
Balance at beginning of year | $ | $ | ||||||
Acquisitions | ||||||||
Impairment | ( | ) | ||||||
Foreign exchange revaluation | ( | ) | ||||||
Balance at End of Year | $ | $ |
2020 | 2019 | |||||||||||||||||||||||
(in millions) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||
as of September 30, | ||||||||||||||||||||||||
Management contracts | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Trade names | ( | ) | ||||||||||||||||||||||
Developed software | ( | ) | ||||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
(in millions) | ||||
for the fiscal years ending September 30, | Amount | |||
2021 | $ | |||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
Thereafter | ||||
Total | $ |
(in millions) | 2020 | Effective Interest Rate | 2019 | Effective Interest Rate | ||||||||||
as of September 30, | ||||||||||||||
Notes issued by Franklin Resources, Inc. | ||||||||||||||
$300 million 2.800% senior notes due September 2022 | $ | % | $ | % | ||||||||||
$400 million 2.850% senior notes due March 2025 | % | % | ||||||||||||
Total notes issued by Franklin Resources, Inc. | ||||||||||||||
Notes issued by Legg Mason (a subsidiary of Franklin) | ||||||||||||||
$250 million 3.950% senior notes due July 2024 | % | N/A | ||||||||||||
$450 million 4.750% senior notes due March 2026 | % | N/A | ||||||||||||
$550 million 5.625% senior notes due January 2044 | % | N/A | ||||||||||||
$250 million 6.375% junior notes due March 2056 | % | N/A | ||||||||||||
$500 million 5.450% junior notes due September 2056 | % | N/A | ||||||||||||
Total notes issued by Legg Mason | ||||||||||||||
Other | ||||||||||||||
Loan due December 2019 | N/A | % | ||||||||||||
Debt issuance costs | ( | ) | ( | ) | ||||||||||
Total | $ | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Receivables | ||||||||
Investments, at fair value | ||||||||
Total Assets | $ | $ | ||||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | $ | ||||||
Debt | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Redeemable Noncontrolling Interests | ||||||||
Stockholders’ Equity | ||||||||
Franklin Resources, Inc.’s interests | ||||||||
Nonredeemable noncontrolling interests | ||||||||
Total stockholders’ equity | ||||||||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ | $ |
(in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||
as of September 30, 2020 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents of CLOs | $ | $ | $ | $ | — | $ | ||||||||||||||
Receivables of CLOs | — | |||||||||||||||||||
Investments | ||||||||||||||||||||
Equity and debt securities | ||||||||||||||||||||
Loans | — | |||||||||||||||||||
Real Estate | — | |||||||||||||||||||
Total Assets Measured at Fair Value | $ | $ | $ | $ | $ |
(in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||
as of September 30, 2019 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Equity and debt securities | $ | $ | $ | $ | $ | |||||||||||||||
Real estate | — | |||||||||||||||||||
Loans | — | |||||||||||||||||||
Total Assets Measured at Fair Value | $ | $ | $ | $ | $ |
(in millions) | Equity and Debt Securities | Real Estate | Loans | Total Level 3 Assets | ||||||||||||
for the fiscal year ended September 30, 2020 | ||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | ||||||||||||
Acquisition | ||||||||||||||||
Realized and unrealized losses included in investment and other income of consolidated investment products, net | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Purchases | ||||||||||||||||
Sales and settlements | ( | ) | ( | ) | ( | ) | ||||||||||
Deconsolidations | ( | ) | ( | ) | ||||||||||||
Transfers into Level 3 | ||||||||||||||||
Transfers out of Level 3 | ( | ) | ( | ) | ||||||||||||
Foreign exchange revaluation | ||||||||||||||||
Balance at End of Year | $ | $ | $ | |||||||||||||
Change in unrealized losses included in net income relating to assets held at end of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(in millions) | Equity and Debt Securities | Real Estate | Loans | Total Level 3 Assets | ||||||||||||
for the fiscal year ended September 30, 2019 | ||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | ||||||||||||
Acquisition | ||||||||||||||||
Realized and unrealized gains (losses) included in investment and other income of consolidated investment products, net | ( | ) | ( | ) | ( | ) | ||||||||||
Purchases | ||||||||||||||||
Sales and settlements | ( | ) | ( | ) | ( | ) | ||||||||||
Transfers into Level 3 | ||||||||||||||||
Transfers out of Level 3 | ( | ) | ( | ) | ||||||||||||
Foreign exchange revaluation | ( | ) | ( | ) | ||||||||||||
Balance at End of Year | $ | $ | $ | $ | ||||||||||||
Change in unrealized gains (losses) included in net income relating to assets held at end of year | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
(in millions) | ||||||||||
as of September 30, 2020 | Fair Value | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average1) | ||||||
Equity and debt securities | $ | Discounted cash flow | Discount rate | 4.0%–23.0% (11.5%) | ||||||
Discount for lack of marketability | 17.0% | |||||||||
Risk premium | 9.7%–19.3% (16.7%) | |||||||||
Market pricing | Private sale pricing | $0.02–$100.00 ($13.01) per share | ||||||||
Market comparable companies | Enterprise value/ EBITDA multiple | 7.0–19.1 (10.8) | ||||||||
Discount for lack of marketability | 20.0%–25.2% (21.9%) | |||||||||
Risk premium | 55.0% | |||||||||
Enterprise value/ Revenue multiple | 7.5 | |||||||||
Price-to-earnings ratio | 9.4–10.0 (9.7) | |||||||||
Real estate | Discounted cash flow | Discount rate | 4.5%–6.5% (5.2%) | |||||||
Exit capitalization rate | 6.0% | |||||||||
Yield capitalization | Equivalent yield | 4.3%–6.1% (5.2%) |
(in millions) | ||||||||||
as of September 30, 2019 | Fair Value | Valuation Technique | Significant Unobservable Inputs | Range (Weighted Average1) | ||||||
Equity and debt securities | $ | Discounted cash flow | Discount rate | 4.8%–17.4% (10.0%) | ||||||
Discount for lack of marketability | 17.0%–24.7% (20.0%) | |||||||||
Market comparable companies | Enterprise value/ EBITDA multiple | 4.5–21.9 (10.8) | ||||||||
Discount for lack of marketability | 15.0%–30.0% (23.1%) | |||||||||
Risk premium | 18.9% | |||||||||
Enterprise value/ Revenue multiple | 3.7 | |||||||||
Market pricing | Private sale pricing | $0.25–$20.13 ($2.06) per share | ||||||||
Real estate | Discounted cash flow | Discount rate | 6.4%–7.4% (7.1%) | |||||||
Yield capitalization | Equivalent yield | 4.3%–6.1% (5.4%) |
1 | Based on the relative fair value of the instruments. |
(in millions) | Fair Value Level | 2020 | 2019 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||||
as of September 30, | ||||||||||||||||||
Financial Asset | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | $ | $ | $ | |||||||||||||
Financial Liabilities | ||||||||||||||||||
Debt of CLOs | 2 | |||||||||||||||||
Other debt | 3 |
(in millions) | 2020 | 2019 | ||||||||||
as of September 30, | Amount | Weighted- Average Effective Interest Rate | Amount | Weighted- Average Effective Interest Rate | ||||||||
Debt of CLOs | $ | $ | N/A | |||||||||
Other debt | ||||||||||||
Total | $ | $ |
(in millions) | ||||
for the fiscal years ending September 30, | Amount | |||
2021 | $ | |||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
Thereafter | ||||
Total | $ |
(in millions) | ||||
as of September 30, | 2020 | |||
Unpaid principal balance | $ | |||
Difference between unpaid principal balance and fair value | ( | ) | ||
Fair Value | $ |
(in millions) for the fiscal years ended September 30, | 2020 | 20191 | 20181 | |||||||||||||||||
CIPs | Minority Interests | Total | ||||||||||||||||||
Balance at beginning of year | $ | $ | $ | $ | $ | |||||||||||||||
Acquisition | ||||||||||||||||||||
Business divestiture | ( | ) | ( | ) | ||||||||||||||||
Net income (loss) | ( | ) | ||||||||||||||||||
Net subscriptions (distributions) and other | ( | ) | ||||||||||||||||||
Net deconsolidations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Balance at End of Year | $ | $ | $ | $ | $ |
1 | Represents redeemable noncontrolling interests of CIPs. |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Investments | $ | $ | ||||||
Receivables | ||||||||
Loans receivable | ||||||||
Total | $ | $ |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Current expense | ||||||||||||
Federal | $ | $ | $ | |||||||||
State | ||||||||||||
Non-U.S. | ||||||||||||
Deferred benefit | ( | ) | ( | ) | ( | ) | ||||||
Total | $ | $ | $ |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
U.S. | $ | $ | $ | |||||||||
Non-U.S. | ||||||||||||
Total | $ | $ | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Deferred Tax Assets | ||||||||
Capitalized mixed service costs | $ | $ | ||||||
Net operating loss and state credit carry-forwards | ||||||||
Deferred compensation and benefits | ||||||||
Foreign tax credit carry-forwards | ||||||||
Debt premium | ||||||||
Stock-based compensation | ||||||||
Unrealized foreign exchange losses | ||||||||
Other | ||||||||
Total deferred tax assets | ||||||||
Valuation allowance | ( | ) | ( | ) | ||||
Deferred tax assets, net of valuation allowance | ||||||||
Deferred Tax Liabilities | ||||||||
Goodwill and other purchased intangibles | ||||||||
Depreciation on property and equipment | ||||||||
Other | ||||||||
Total deferred tax liabilities | ||||||||
Net Deferred Tax Liability | $ | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Other assets | $ | $ | ||||||
Deferred tax liabilities | ||||||||
Net Deferred Tax Liability | $ | $ |
(in millions) | |||||||||||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | ||||||||||||||||||
Federal taxes at statutory rate | $ | % | $ | % | $ | % | |||||||||||||||
Transition tax on deemed repatriation of undistributed foreign earnings | % | % | |||||||||||||||||||
Revaluation of net deferred tax liabilities | ( | ) | ( | %) | |||||||||||||||||
Other Tax Act impacts | % | ||||||||||||||||||||
State taxes, net of federal tax effect | % | % | % | ||||||||||||||||||
Capital loss on investments, net of valuation allowance | ( | ) | ( | %) | |||||||||||||||||
Effect of non-U.S. operations | % | ( | ) | ( | %) | ( | ) | ( | %) | ||||||||||||
Effect of net loss (income) attributable to noncontrolling interests | % | ( | ) | ( | %) | % | |||||||||||||||
Other | % | % | % | ||||||||||||||||||
Tax Provision | $ | % | $ | % | $ | % |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Balance at beginning of year | $ | $ | $ | |||||||||
Additions from business combinations | ||||||||||||
Additions for tax positions of prior years | ||||||||||||
Reductions for tax positions of prior years | ( | ) | ( | ) | ( | ) | ||||||
Tax positions related to the current year | ||||||||||||
Settlements with taxing authorities | ( | ) | ( | ) | ||||||||
Expirations of statute of limitations | ( | ) | ( | ) | ( | ) | ||||||
Balance at End of Year | $ | $ | $ |
(in millions) | ||||
for the fiscal year ended September 30, 2020 | Amount | |||
Operating lease cost1 | $ | |||
Finance lease cost | ||||
Variable lease cost | ||||
Less: sublease income | ( | ) | ||
Total lease expense | $ |
1 | Substantially all is included in occupancy expense. |
(in millions) | Amount | |||
for the fiscal year ended September 30, 2020 | ||||
Operating cash flows from operating leases included in the measurement of operating lease liabilities | $ | |||
ROU assets obtained in exchange for new/modified operating lease liabilities |
(in millions) | Amount | |||
for the fiscal years ending September 30, | ||||
2021 | $ | |||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
Thereafter | ||||
Total lease payments | ||||
Less: interest | ( | ) | ||
Operating lease liabilities | $ |
(in millions) | ||||
for the fiscal years ending September 30, | Amount | |||
2020 | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total Minimum Lease Payments | $ |
(in millions) | Subleases | Leases | ||||||
for the fiscal years ending September 30, | ||||||||
2021 | $ | $ | ||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total | $ | $ | ||||||
Weighted-average remaining lease term |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Stock and stock unit awards | $ | $ | $ | |||||||||
Employee stock investment plan | ||||||||||||
Total | $ | $ | $ |
(shares in thousands) | Time-Based Shares | Performance- Based Shares | Total Shares | Weighted-Average Grant-Date Fair Value | |||||||||
for the fiscal year ended September 30, 2020 | |||||||||||||
Nonvested balance at September 30, 2019 | $ | ||||||||||||
Granted | |||||||||||||
Vested | ( | ) | ( | ) | ( | ) | |||||||
Forfeited/canceled | ( | ) | ( | ) | ( | ) | |||||||
Nonvested balance at September 30, 2020 | $ |
(in millions) | ||||||||
as of September 30, | 2020 | 2019 | ||||||
Property and Equipment, Net | ||||||||
United States | $ | $ | ||||||
Europe, Middle East and Africa | ||||||||
Asia-Pacific | ||||||||
Americas excluding United States | ||||||||
Total | $ | $ |
(in millions) | ||||||||||||
for the fiscal years ended September 30, | 2020 | 2019 | 2018 | |||||||||
Dividend income | $ | $ | $ | |||||||||
Interest income | ||||||||||||
Gains (losses) on investments, net | ( | ) | ( | ) | ||||||||
Income (losses) from investments in equity method investees | ( | ) | ( | ) | ||||||||
Rental income | ||||||||||||
Foreign currency exchange (losses) gains, net | ( | ) | ||||||||||
Other, net | ||||||||||||
Investment and Other Income (Losses), Net | $ | ( | ) | $ | $ |
(in millions) | Currency Translation Adjustments | Unrealized Losses on Defined Benefit Plans | Unrealized Gains on Investments | Total | ||||||||||||
as of and for the fiscal years ended September 30, 2020, 2019 and 2018 | ||||||||||||||||
Balance at October 1, 2017 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Adoption of new accounting guidance | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | ( | ) | ( | ) | ||||||||||||
Reclassifications to compensation and benefits expense, net of tax | ||||||||||||||||
Reclassifications to net investment and other income (losses), net of tax | ( | ) | ( | ) | ( | ) | ||||||||||
Total other comprehensive income (loss) | ( | ) | ( | ) | ||||||||||||
Balance at September 30, 2018 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Adoption of new accounting guidance | — | — | ( | ) | ( | ) | ||||||||||
Other comprehensive income (loss) | ||||||||||||||||
Other comprehensive loss before reclassifications, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Reclassifications to compensation and benefits expense, net of tax | ||||||||||||||||
Reclassifications to net investment and other income (losses), net of tax | ||||||||||||||||
Total other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at September 30, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Other comprehensive income (loss) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax | ( | ) | ( | ) | ||||||||||||
Reclassifications to compensation and benefits expense, net of tax | ||||||||||||||||
Reclassifications to net investment and other income (losses), net of tax | ||||||||||||||||
Total other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance at September 30, 2020 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 10. | Directors, Executive Officers and Corporate Governance. |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accountant Fees and Services. |
Item 15. | Exhibits and Financial Statement Schedules. |
(a)(1) | The financial statements filed as part of this report are listed in Item 8 of this Annual Report. |
(a)(2) | No financial statement schedules are required to be filed as part of this report because all such schedules have been omitted. Such omission has been made on the basis that information is provided in the financial statements, or in the related notes thereto, in Item 8 of this Annual Report or is not required to be filed as the information is not applicable. |
(a)(3) | The exhibits listed on the Exhibit Index to this Annual Report are incorporated herein by reference. |
Item 16. | Form 10‑K Summary. |
Exhibit No. | Description | ||
2.1 | |||
3.1 | |||
3.2 | |||
3.3 | |||
3.4 | |||
3.5 | |||
3.6 | |||
4.1 | |||
4.2 | |||
4.3 | |||
4.4 | |||
4.5 | |||
4.6 | |||
4.7 |
Exhibit No. | Description | ||
4.8 | |||
4.9 | |||
4.10 | |||
4.11 | |||
4.12 | |||
4.13 | |||
4.14 | |||
4.15 | |||
4.16 | |||
10.1 | |||
10.2 | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
10.10 |
Exhibit No. | Description | ||
10.11 | |||
10.12 | |||
21 | |||
23 | |||
31.1 | |||
31.2 | |||
32.1 | |||
32.2 | |||
101 | The following materials from Registrant’s Annual Report on Form 10‑K for the fiscal year ended September 30, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL), include: (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith) | ||
104 | Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101) |
* | Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. |
** | Management contract or compensatory plan or arrangement |
FRANKLIN RESOURCES, INC. | |||
Date: | November 20, 2020 | By: | /s/ Matthew Nicholls |
Matthew Nicholls, Executive Vice President and Chief Financial Officer | |||
Date: | November 20, 2020 | By: | /s/ Gwen L. Shaneyfelt |
Gwen L. Shaneyfelt, Chief Accounting Officer |
Date: | November 20, 2020 | By: | /s/ Jennifer M. Johnson |
Jennifer M. Johnson, President, Chief Executive Officer and Director (Principal Executive Officer) | |||
Date: | November 20, 2020 | By: | /s/ Matthew Nicholls |
Matthew Nicholls, Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||
Date: | November 20, 2020 | By: | /s/ Gwen L. Shaneyfelt |
Gwen L. Shaneyfelt, Chief Accounting Officer (Principal Accounting Officer) | |||
Date: | November 20, 2020 | By: | /s/ Peter K. Barker |
Peter K. Barker, Director | |||
Date: | November 20, 2020 | By: | /s/ Mariann Byerwalter |
Mariann Byerwalter, Director | |||
Date: | November 20, 2020 | By: | /s/ Gregory E. Johnson |
Gregory E. Johnson, Executive Chairman, Chairman of the Board and Director | |||
Date: | November 20, 2020 | By: | /s/ Rupert H. Johnson, Jr. |
Rupert H. Johnson, Jr., Vice Chairman and Director | |||
Date: | November 20, 2020 | By: | /s/ Anthony J. Noto |
Anthony J. Noto, Director | |||
Date: | November 20, 2020 | By: | /s/ Mark C. Pigott |
Mark C. Pigott, Director | |||
Date: | November 20, 2020 | By: | /s/ Laura Stein |
Laura Stein, Director | |||
Date: | November 20, 2020 | By: | /s/ Seth H. Waugh |
Seth H. Waugh, Director | |||
Date: | November 20, 2020 | By: | /s/ Geoffrey Y. Yang |
Geoffrey Y. Yang, Director |
• | Board may adopt, amend or repeal bylaws without stockholder approval; |
• | the Bylaws specify advanced notice procedures that stockholders must follow in order to bring business at an annual or special meeting of stockholders, and proxy access procedures for director nominations at annual meetings; |
• | the Bylaws provide that the Chairman of the Board or the Chief Executive Officer of the Company shall call a special meeting of stockholders upon the written request of a stockholder, or group of stockholders, owning not less than 25% of the outstanding capital stock of the Company continuously for at least one year, provided that the stockholder or stockholders satisfy the procedural requirements specified in the Bylaws; |
• | the Bylaws otherwise limit the ability to call special meetings of stockholders to the Board or the Chairman of the Board; |
• | vacancies on the Board can be filled by a majority vote of the remaining members of the Board, even where less than a quorum, or by decision of a sole remaining director, or by a vote of the stockholders required for the election of directors generally; |
• | the Board is authorized to issue Preferred Stock without stockholder approval; and |
• | the Company is incorporated in Delaware and is thus subject to the provisions of the General Corporation Law of the State of Delaware (the “DGCL”), including Section 203 of the DGCL regarding business combinations with an interested stockholder. |
Name: | |
Address: |
Award Number: | |
Award Date: | |
Total Number of Shares (the “Shares”) Awarded: | |
Grant Date Value of Award (USD): | |
Restrictive Covenants Apply: | [Insert “Yes” or “No”] |
Name: | |
Address: |
Award Number: | |
Award Date: | |
Total Number of Shares (the “Shares”) Awarded: | |
Grant Date Value of Award (USD): | |
Restrictive Covenants Apply: | [Insert “Yes” or “No”] |
Participant Signature | Authorized Franklin Resources, Inc. Officer Signature | |
Printed Name | Printed Name | |
Date | Date |
1. | Restricted Stock Award. |
Name: | |
Address: |
Award Number: | |
Award Date: | |
Total Number of Units Awarded: | |
Grant Date Value of Award (USD): | |
Restrictive Covenants Apply: | [Insert “Yes” or “No”] |
16. | Forfeiture. |
FRANKLIN RESOURCES, INC. 2006 DIRECTORS DEFERRED COMPENSATION PLAN |
By: | /s/ Jennifer M. Johnson |
Jennifer M. Johnson |
Primary Beneficiary(ies) (Select only one of the three alternatives) | |||
¨ (a) Individuals and/or Charities | % Share | ||
Name____________________________________________________________ | _______ | ||
Address _____________________________________________________________________________________ | |||
Name____________________________________________________________ | _______ | ||
Address _____________________________________________________________________________________ | |||
Name____________________________________________________________ | _______ | ||
Address _____________________________________________________________________________________ | |||
Name____________________________________________________________ | _______ | ||
Address _____________________________________________________________________________________ |
Exhibit A | A-1 |
¨ (b) Residuary Testamentary Trust | |||
In trust, to the trustee of the trust named as the beneficiary of the residue of my probate estate. |
¨ (c) Living Trust | |||
The_____________________________________ Trust, dated ________________________ (print name of trust) (fill in date trust was established) |
Contingent Beneficiary(ies) (Select only one of the three alternatives) | |||
¨ (a) Individuals and/or Charities | % Share | ||
Name____________________________________________________________ | _______ | ||
Address ______________________________________________________________________________ | |||
Name____________________________________________________________ | _______ | ||
Address ______________________________________________________________________________ | |||
Name____________________________________________________________ | _______ | ||
Address ______________________________________________________________________________ | |||
¨ (b) Residuary Testamentary Trust | |||
In trust, to the trustee of the trust named as the beneficiary of the residue of my probate estate. |
¨ (c) Living Trust | |||
The_____________________________________ Trust, dated ___________________________________ (print name of trust) (fill in date trust was established) | |||
Exhibit A | A-2 |
Submitted by: | Filing Acknowledgement: |
o Participant o Participant’s Spouse | Franklin Resources, Inc. |
___________________________________________ | By: ___________________________________ |
Name: _______________________________ | Its: ___________________________________ |
Date: ________________________________ | Filed with the records of the Company this _____ day of _________________, 20___ |
Exhibit A | A-3 |
o | _______% of my annual stock grant(s). |
o | _______% of my other stock grant(s). |
o | _______% of my Directors’ fees. |
o | _______% of my meeting fees. |
o | _______% of my committee fees. |
o | _______% of my chairperson fees. |
o | _______% of all other fees. |
Note: | As stated above, this election shall remain in effect indefinitely for all years of service until terminated or modified by a subsequent deferral election form. You can file a new election form at any time with respect to deferrals in a subsequent calendar year. A new election form must be filed no later than December 31st of the calendar year prior to the calendar year for which the new election will be effective. |
Exhibit B | B-1 |
Submitted by: | Filing Acknowledgement: |
Participant | Franklin Resources, Inc. |
___________________________________________ | By: ___________________________________ |
Name: _______________________________ | Its: ___________________________________ |
Date: ________________________________ | Filed with the records of the Company this _____ day of _________________, 20___ |
Exhibit B | B-2 |
o | Substantially equal quarterly installments over five (5) years beginning on the earlier of the January 20, April 20, July 20, or October 20 immediately following my Separation from Service and continuing on each January 20, April 20, July 20, or October 20 thereafter. |
o | Substantially equal quarterly installments over ten (10) years beginning on the earlier of the January 20, April 20, July 20, or October 20 immediately following my Separation from Service and continuing on each January 20, April 20, July 20, or October 20 thereafter. (Note: Elect this alternative if you are not a resident of California and intend to comply with California R&TC Section 17952.5.) |
o | This Distribution Election Form is made pursuant to Section 4.4 of the Plan. |
Exhibit C | C-1 |
Important Note: | For purposes of subsequent changes in the timing of the payments as elected above, a series of installment payments shall be treated as the entitlement to a single payment. In general, if you wish to change this election for amounts previously deferred, (a) any change shall not take effect for twelve (12) months from the date of the new election, (b) the commencement of payments (or a lump sum payment) shall occur no earlier than five (5) years after the date the first distribution would have been paid under the prior distribution schedule and (c) the change shall be made at least twelve (12) months before the date the first distribution would have been paid absent the change. If this Distribution Election Form is intended to change the timing of distributions of amounts previously deferred, please check below: |
o | This Distribution Election Form is made pursuant to Section 4.4 of the Plan. |
Exhibit C | C-2 |
Submitted by: | Filing Acknowledgement: |
Participant | Franklin Resources, Inc. |
___________________________________________ | By: ___________________________________ |
Name: _______________________________ | Its: ___________________________________ |
Date: ________________________________ | Filed with the records of the Company this _____ day of _________________, 20___ |
Exhibit C | C-3 |
INVESTMENT | Percentage | |
Franklin Resources, Inc. common stock | % | |
_______________________________________ | % | |
_______________________________________ | % | |
_______________________________________ | % | |
_______________________________________ | % | |
100 | % |
Submitted by: | Filing Acknowledgement: |
Participant | Franklin Resources, Inc. |
___________________________________________ | By: ___________________________________ |
Name: _______________________________ | Its: ___________________________________ |
Date: ________________________________ | Filed with the records of the Company this _____ day of _________________, 20___ |
Exhibit D | D-1 |
Submitted by: | Filing Acknowledgement: |
Participant | Franklin Resources, Inc. |
___________________________________________ | By: ___________________________________ |
Name: _______________________________ | Its: ___________________________________ |
Date: ________________________________ | Filed with the records of the Company this _____ day of _________________, 20___ |
October 1, 2020 | ||||
Name and Principal Positions | Annual Base Salary2 | |||
Jennifer M. Johnson President and Chief Executive Officer | $ | 750,000 | ||
Gregory E. Johnson Executive Chairman and Chairman of the Board | $ | 600,000 | ||
Matthew Nicholls Executive Vice President and Chief Financial Officer | $ | 525,000 | ||
Craig S. Tyle Executive Vice President and General Counsel | $ | 525,000 | ||
Jed A. Plafker Executive Vice President | $ | 525,000 |
(a) | receive an annual cash incentive award pursuant to the Company’s Amended and Restated Annual Incentive Compensation Plan (including Key Executive Pool) and/or the Company’s 2014 Key Executive Incentive Compensation Plan, each as amended and restated; |
(b) | participate in the Company’s equity incentive program under which they may be granted restricted stock awards and/or restricted stock unit awards (including both time- and performance-based awards) pursuant to the Company’s 2002 Universal Stock Incentive Plan, as amended and restated; and |
(c) | receive additional cash and/or equity awards for special recognition of significant contributions or for retention purposes (which may include time- and performance-based awards). |
(a) | participate in the Company’s broad-based benefit programs generally available to its salaried employees, including health, disability and life insurance programs, the Franklin Templeton 401(k) Retirement Plan and the Company’s 1998 Employee Stock Investment Plan, as amended and restated (the “ESIP”); provided that Ms. J. Johnson and Mr. G. Johnson may not participate in the ESIP pursuant to applicable rules; and |
(b) | receive certain perquisites offered by the Company. |
1 | The NEOs listed herein are the Company’s current chief executive officer, current chief financial officer, and the three other most highly compensated executive officers of the Company as of September 30, 2019. Effective February 11, 2020, Ms. Johnson became Chief Executive Officer and Mr. Johnson became Executive Chairman. |
2 | Effective October 1, 2020, the annual base salaries of the NEOs were restored following a prior 20% reduction to their annual base salary levels that took effect on April 13, 2020. |
3 | Mr. Nicholls joined the Company in May 2019. Under the terms of his offer letter, Mr. Nicholls was eligible to earn a guaranteed annual incentive award of $2.6 million for fiscal year 2020, and has certain severance protections during the first two years of his employment. |
Name** | State or Jurisdiction of Incorporation or Organization | |
AdvisorEngine Inc. | Delaware | |
Alumcreek Holdings LLC | Delaware | |
Balanced Equity Management Pty. Limited | Australia | |
Brandywine Global Investment Management Europe Limited | United Kingdom | |
CCPF GP Holdco No.2 Limited | United Kingdom | |
CCPF No.2 (GP) Limited | United Kingdom | |
CCPF No.2 LP | United Kingdom | |
Clarion Gramercy Limited | Jersey (Channel Islands) | |
Clarion Gramercy (Deutschland) GmbH | Germany | |
Clarion Gramercy (UK) Limited | United Kingdom | |
Clarion Partners Europe, Ltd. | United Kingdom | |
Clarion Partners Holdings LLC | Delaware | |
Clarion Partners, LLC | New York | |
Clarion Partners Securities, LLC | Delaware | |
Clarion REIM South America Holdings, LLC | Delaware | |
Clarion REIM South America Invsetimentos Imobiliarios Ltda | Brazil | |
ClearBridge RARE Infrastructure International Pty Limited | Australia | |
ClearBridge RARE Infrastructure (North America) Pty Limited | Australia | |
CP Industrial Management, LLC | Delaware | |
CP Intermediate Holdco, Inc. | Delaware | |
CRM Software, LLC | Delaware | |
Darby - Hana Infrastructure Fund Management Co., Ltd. | South Korea | |
Fiduciary International Holding, Inc. | New York | |
Fiduciary Investment Management International, Inc. | Delaware | |
Fiduciary Trust Company International | New York | |
Fiduciary Trust Company International of Pennsylvania | Pennsylvania | |
Fiduciary Trust Company of Canada | Canada | |
Fiduciary Trust International, LLC | Delaware | |
Fiduciary Trust International of California | California | |
Fiduciary Trust International of Delaware | Delaware | |
Fiduciary Trust International of the South | Florida | |
Fiduciary Trust (International) Sàrl | Switzerland | |
Franklin Advisers GP, LLC | Delaware | |
Franklin Advisers, Inc. | California | |
Franklin Advisory Services, LLC | Delaware | |
Franklin Marketplace Loan GP, LLC | Delaware | |
Franklin Mutual Advisers, LLC | Delaware | |
Franklin SystematiQ Advisers, LLC | Delaware | |
Franklin Templeton Alternative Investments (India) Private Limited | India | |
Franklin Templeton Asset Management (India) Private Limited | India | |
Franklin Templeton Asset Management (Malaysia) Sdn. Bhd. | Malaysia |
Name** | State or Jurisdiction of Incorporation or Organization | |
Franklin Templeton Asset Management Mexico, S.A. de C.V., Sociedad Operadora de Fondos de Inversion | Mexico | |
Franklin Templeton Austria GmbH | Austria | |
Franklin Templeton Capital Holdings Private Limited | Singapore | |
Franklin Templeton Chile SpA. V. | Chile | |
Franklin Templeton Companies, LLC | Delaware | |
Franklin Templeton Digital Advisory Services GmbH | Germany | |
Franklin Templeton Fund Management Limited | United Kingdom | |
Franklin Templeton Global Investors Limited | United Kingdom | |
Franklin Templeton GSC Asset Management Sdn. Bhd. | Malaysia | |
Franklin Templeton Holding Limited | Mauritius | |
Franklin Templeton International Services (India) Private Limited | India | |
Franklin Templeton International Services S.à r.l. | Luxembourg | |
Franklin Templeton Investímentos (Brasil) Ltda. | Brazil | |
Franklin Templeton Investment Management Limited | United Kingdom | |
Franklin Templeton Investment Management (Shanghai) Limited | China | |
Franklin Templeton Investment Services GmbH | Germany | |
Franklin Templeton Investment Services Mexico S. de R.L. | Mexico | |
Franklin Templeton Investment Trust Management Co., Ltd. | South Korea | |
Franklin Templeton Investments (Asia) Limited | Hong Kong | |
Franklin Templeton Investments Australia Limited | Australia | |
Franklin Templeton Investments Corp. | Canada | |
Franklin Templeton Investments Japan Limited | Japan | |
Franklin Templeton Investments (ME) Limited | Dubai, U.A.E. | |
Franklin Templeton Investments Poland sp. z o.o. | Poland | |
Franklin Templeton Investments South Africa (Pty) Ltd | South Africa | |
Franklin Templeton Investor Services, LLC | Delaware | |
Franklin Templeton Luxembourg S.A. | Luxembourg | |
Franklin Templeton Magyarorszag Kft. | Hungary | |
Franklin Templeton Management Luxembourg S.A. | Luxembourg | |
Franklin Templeton Overseas Investment Fund Management (Shanghai) Co., Limited | China | |
Franklin Templeton Private Equity, LLC | Delaware | |
Franklin Templeton Services, LLC | Delaware | |
Franklin Templeton Services (India) Private Limited | India | |
Franklin Templeton Servicios de Asesoria Mexico, S. de R.L. de C.V. | Mexico | |
Franklin Templeton Slovakia, s.r.o. | Slovakia | |
Franklin Templeton Social Infrastructure GP, S.à r.l. | Luxembourg | |
Franklin Templeton Strategic Investments Ltd. | Cayman Islands | |
Franklin Templeton Switzerland Ltd. | Switzerland | |
Franklin Templeton Trustee Services Private Limited | India | |
Franklin Templeton Turkey Advisory Services A.S. | Turkey | |
Franklin Templeton Uruguay S.A. | Uruguay | |
Franklin/Templeton Distributors, Inc. | New York | |
Franklin Venture Partners, LLC | Delaware | |
Franklin Venture Partners (Talos Cayman GP), LLC | Delaware | |
FT FinTech Holdings, LLC | Delaware |
Name** | State or Jurisdiction of Incorporation or Organization | |
FT Opportunistic Distressed Fund Ltd. | Cayman Islands | |
FTC Investor Services Inc. | Canada | |
FTCI (Cayman) Ltd. | Cayman Islands | |
FTPE Advisers, LLC | Delaware | |
ITI Capital Markets Limited | India | |
Legg Mason Asset Management Australia Limited | Australia | |
Legg Mason Asset Management Hong Kong Limited | Hong Kong | |
Legg Mason Asset Management Singapore Pte. Limited | Singapore | |
Legg Mason Australia Holdings Pty Limited | Australia | |
Legg Mason (Chile) Inversiones Holdings Limitada | Chile | |
Legg Mason & Co (UK) Limited | United Kingdom | |
Legg Mason & Co., LLC | Maryland | |
Legg Mason Holding (Switzerland) GmbH | Switzerland | |
Legg Mason, Inc. | Maryland | |
Legg Mason Investments (Europe) Limited | United Kingdom | |
Legg Mason Investment Funds Limited | United Kingdom | |
Legg Mason Investments (Switzerland) GmbH | Switzerland | |
Legg Mason Overseas Investment Fund Management (Shanghai) Co., Ltd. | China | |
Legg Mason Partners Fund Advisor, LLC | Delaware | |
Legg Mason Royce Holdings, LLC | Delaware | |
LM (BVI) Limited | British Virgin Islands | |
LM Holdings Limited | United Kingdom | |
LM Holdings 2 Limited | United Kingdom | |
LM International Holding LP | Cayman Islands | |
Onsa Inc. | Delaware | |
Random Forest Capital, LLC | California | |
RARE Infrastructure Limited | Australia | |
RARE IP Trust | Australia | |
REDROSE Caesar S.à r.l. | Luxembourg | |
Riva Financial Systems Limited | Isle of Man | |
Royce & Associates GP, LLC | Delaware | |
Royce & Associates, LP | Delaware | |
Royce Fund Services, LLC | New York | |
Royce Management Company, LLC | Delaware | |
Templeton Asset Management (Labuan) Limited | Malaysia | |
Templeton Asset Management Ltd. | Singapore | |
Templeton Asset Management (Poland) TFI S.A. | Poland | |
Templeton do Brasil Ltda. | Brazil | |
Templeton Global Advisors Limited | The Bahamas | |
Templeton Global Holdings Ltd. | The Bahamas | |
Templeton International, Inc. | Delaware | |
Templeton Investment Counsel, LLC | Delaware | |
Templeton Restructured Investments, L.L.C. | Delaware | |
Templeton Restructured Investments III, Ltd. | Cayman Islands | |
Templeton Restructured Investments IV, Ltd. | Cayman Islands |
Name** | State or Jurisdiction of Incorporation or Organization | |
Templeton Turkey Fund GP Ltd. | Cayman Islands | |
Templeton Worldwide, Inc. | Delaware | |
Templeton/Franklin Investment Services, Inc. | Delaware | |
TSEMF III (Jersey) Limited | Jersey (Channel Islands) | |
TSEMF IV (Jersey) Limited | Jersey (Channel Islands) | |
Western Asset Holdings (Australia) Pty Ltd | Australia | |
Western Asset Management (Brazil) Holdings Limitada | Brazil | |
Western Asset Management (Cayman) Holdings Limited | Cayman Islands | |
Western Asset Management Company Distribuidora de Titulos e Valores Mobiliarios Limitada | Brazil | |
Western Asset Management Company Limited | United Kingdom | |
Western Asset Management Company, LLC | California | |
Western Asset Management Company Pte Ltd. | Singapore | |
Western Asset Management Company Pty Ltd | Australia | |
WHITEROSE Caesar S.à r.l. | Luxembourg |
* | Certain subsidiaries have been omitted because, when considered in the aggregate, they do not constitute a significant subsidiary. |
** | Our subsidiaries currently do business principally under their respective corporate names except as follows: |
• | some of our subsidiaries may use the names Franklin Templeton, Franklin Templeton International and Templeton Worldwide; |
• | our Darby subsidiaries may use the name Darby Private Equity; |
• | Fiduciary Trust Company of Canada may use the names Fiduciary Trust Canada and Franklin Templeton Multi-Asset Solutions in various Canadian jurisdictions; |
• | Franklin Templeton Investments Corp. may use the names Franklin Templeton Canada, Franklin Templeton Investments Canada, Franklin Bissett Investment Management, Franklin Templeton Investments and Franklin Templeton Institutional in various Canadian jurisdictions; |
• | Legg Mason, Inc. may use the name Legg Mason Global Asset Management; and |
• | Royce & Associates, LP may use the name Royce Investment Partners. |
1. | I have reviewed this annual report on Form 10-K of Franklin Resources, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 20, 2020 | /s/ Jennifer M. Johnson | |
Jennifer M. Johnson President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Franklin Resources, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 20, 2020 | /s/ MATTHEW NICHOLLS | |
Matthew Nicholls Executive Vice President and Chief Financial Officer |
1. | The Annual Report on Form 10-K of the Company for the fiscal year ended September 30, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated. |
Dated: | November 20, 2020 | /s/ Jennifer M. Johnson | |
Jennifer M. Johnson President and Chief Executive Officer |
1. | The Annual Report on Form 10-K of the Company for the fiscal year ended September 30, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated. |
Dated: | November 20, 2020 | /s/ MATTHEW NICHOLLS | |
Matthew Nicholls Executive Vice President and Chief Financial Officer |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 787.1 | $ 1,205.5 | $ 742.7 |
Other Comprehensive Income (Loss) | |||
Currency translation adjustments, net of tax | 25.8 | (52.5) | (91.9) |
Net unrealized gains (losses) on defined benefit plans, net of tax | (1.8) | (2.0) | 1.9 |
Net unrealized gains on investments, net of tax | 0.0 | 1.5 | 4.3 |
Total other comprehensive income (loss) | 24.0 | (53.0) | (85.7) |
Total comprehensive income | 811.1 | 1,152.5 | 657.0 |
Less: comprehensive income (loss) attributable to | |||
Redeemable noncontrolling interests | 48.6 | 6.2 | (12.8) |
Nonredeemable noncontrolling interests | (60.4) | 3.6 | (8.9) |
Comprehensive Income Attributable to Franklin Resources, Inc. | $ 822.9 | $ 1,142.7 | $ 678.7 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Investments, at fair value | $ 504.8 | $ 589.7 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 495,116,677 | 499,303,269 |
Common stock, shares outstanding | 495,116,677 | 499,303,269 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 1.08 | $ 1.04 | $ 3.92 |
Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Business. Franklin Resources, Inc. (“Franklin”) is a holding company with subsidiaries (collectively, the “Company”) operating under its Franklin Templeton and/or subsidiary brand names. The Company provides investment management and related services in jurisdictions worldwide for investors in investment products which include sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. In addition to investment management, the Company’s services include fund administration, sales and distribution, and shareholder servicing. Basis of Presentation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Management believes that the accounting estimates are appropriate, and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. Certain comparative amounts for prior fiscal years have been reclassified to conform to the financial statement presentation as of and for the fiscal year ended September 30, 2020 (“fiscal year 2020”). In the quarter ended September 30, 2020, the Company changed the presentation of its consolidated statements of income to include dividend and investment income and expenses of consolidated investment products in other income, net. Amounts for the comparative prior fiscal year periods have been reclassified to conform to the current year presentation. These reclassifications had no impact on previously reported net income or financial position. Management believes the revised presentation is more useful to readers of its financial statements and more accurately portrays the nature of the consolidated investment products (“CIP”) revenue and expenses as the operations of CIPs are not related to the Company’s core business. The following table presents the effects of the change in the presentation of operating revenues, operating expenses and other income, net to the Company’s previously reported consolidated statements of income:
Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and CIPs in which it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a voting interest entity (“VOE”) or is the primary beneficiary of a variable interest entity (“VIE”). Intercompany accounts and transactions have been eliminated. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or do not have defined rights and obligations normally associated with an equity investment. Substantially all of the Company’s VIEs are investment products, and its variable interests consist of its equity ownership interests in and investment management fees earned from these products. The Company is the primary beneficiary of a VIE if it has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”) and the life of the investment product. Related Parties include sponsored funds and equity method investees. A substantial amount of the Company’s operating revenues and receivables are from related parties. Earnings per Share. Basic and diluted earnings per share are computed using the two-class method, which considers participating securities as a separate class of shares. The Company’s participating securities consist of its nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Basic earnings per share is computed by dividing net income available to the Company’s common stockholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period. Business combinations are accounted for by recognizing the acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition-date estimated fair values. Any excess of the purchase consideration over the acquisition-date fair values of these identifiable assets and liabilities is recognized as goodwill. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed due to new information about facts that existed as of the acquisition date, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in earnings. Intangible assets acquired in business combinations consist primarily of investment management contracts and trade names. The fair values of the acquired management contracts are based on the net present value of estimated future cash flows attributable to the contracts, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. The fair value of trade names is determined using the relief from royalty method based on net present value of estimated future cash flows, which include significant assumptions about royalty rate, revenue growth rate, discount rate and effective tax rate. The management contract intangible assets are amortized over their estimated useful lives, which range from three to 15 years, using the straight-line method, unless the asset is determined to have an indefinite useful life. Indefinite-lived intangible assets represent contracts to manage investment assets for which there is no foreseeable limit on the contract period. Trade names intangible assets are amortized over their estimated useful lives which range from five to twenty years using the straight-line method. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 1 and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. The Company has one reporting unit, investment management and related services, consistent with its single operating segment, to which all goodwill has been assigned. Amortization and impairment are recognized in general, administrative and other expense. Goodwill and indefinite-lived intangible assets may first be assessed for qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on the key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed. If a quantitative goodwill impairment test indicates that the carrying value of the goodwill exceeds the fair value of the reporting unit, impairment is recognized in the amount of the excess of the carrying value over the implied fair value of the goodwill, which considers the fair value assigned to all other assets and liabilities of the reporting unit. If a quantitative indefinite-lived intangible assets impairment test indicates that the carrying value of the asset exceeds the fair value, impairment is recognized in the amount of the difference in values. The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include assumptions about the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. Definite-lived intangible assets are tested for impairment quarterly. Impairment is indicated when the carrying value of an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate and expected useful lives as well as royalty rate for trade name intangible assets. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset’s fair value, as determined by discounted cash flows or other methods as appropriate for the asset type. Fair Value Measurements. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Quoted market prices may be adjusted if events occur, such as significant price changes in proxies traded in relevant markets after the close of corresponding markets, trade halts or suspensions, or unscheduled market closures. These proxies consist of correlated country-specific exchange-traded securities, such as futures, American Depositary Receipts indices or exchange-traded funds. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market. A substantial amount of the Company’s investments is recorded at fair value or amounts that approximate fair value on a recurring basis. Investments in fund products for which fair value is estimated using NAV as a practical expedient (when the NAV is available to the Company as an investor but is not publicly available) are not classified in the fair value hierarchy. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value. Cash and Cash Equivalents primarily consist of nonconsolidated sponsored money market funds and deposits with financial institutions and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value. The Company maintains cash and cash equivalents with financial institutions in various countries, limits the amount of credit exposure with any given financial institution and conducts ongoing evaluations of the creditworthiness of the financial institutions with which it does business. Receivables consist primarily of fees receivable from investment products and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value. Investments consist of investments in sponsored funds and separate accounts, investments related to long-term incentive plans, other equity and debt securities, investments in equity method investees and other investments. Sponsored funds and separate accounts consist primarily of nonconsolidated sponsored funds and to a lesser extent, separate accounts. Sponsored funds and separate accounts are carried at fair value with changes in the fair value recognized as gains and losses in earnings. The fair values of funds are determined based on their published NAV or estimated using NAV as a practical expedient. The fair values of separate accounts are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. Investments related to long-term incentive plans consist primarily of investments in sponsored funds related to certain compensation plans that have vesting provision and are carried at fair value. Changes in fair value are recognized as gains and losses in earnings. The fair values of the investments are determined based on the funds’ published NAV or estimated using NAV as a practical expedient. Other equity and debt securities consist of equity investment securities and debt securities classified as trading or available-for-sale and are carried at fair value. Changes in the fair value of trading securities are recognized as gains and losses in earnings. Unrealized gains and losses on available-for-sale securities are recorded net of tax as part of accumulated other comprehensive income (loss) until realized, at which time they are recognized in earnings using the average cost method. The fair values of equity securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. The fair values of debt securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. Investments in Equity Method Investees consist of equity investments in entities, including sponsored funds, over which the Company is able to exercise significant influence, but not control. Significant influence is generally considered to exist when the Company’s ownership interest in the investee is between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, also are considered in determining whether the equity method of accounting is appropriate. Investments in limited partnerships and limited liability companies are accounted for using the equity method when the Company’s investment is more than minor or when the Company is the general partner. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company’s proportionate share of the entities’ net income, which is recognized in earnings. Other Investments consist of equity investments in entities over which the Company is unable to exercise significant influence and do not have a readily determinable fair value, and time deposits with maturities greater than three months from the date of purchase. The equity investments are measured at cost adjusted for observable price changes and impairment, if any, which are recognized in earnings. The fair value of the entities is generally estimated using significant unobservable inputs in either a market-based or income-based approach. The time deposits are carried at cost, which approximates fair value due to their short-term nature and liquidity. Life settlement contracts, which were disposed during fiscal year 2020, were carried at fair value, determined based on discounted cash flows using significant unobservable inputs. Impairment of Investments. Investments in available-for-sale securities, equity method investees and equity investments that do not have a readily determinable fair value are evaluated for impairment on a quarterly basis. The evaluation of equity investments considers qualitative factors, including the financial condition and specific events related to an investee, that may indicate the fair value of the investment is less than its carrying value. Impairment of equity securities is recognized in earnings. Cash and Cash Equivalents of CIPs consist of highly liquid investments, including money market funds, which are readily convertible into cash, and deposits with financial institutions, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value. Receivables of CIPs consist of investment and share transaction related receivables and are carried at transacted amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value. Investments of CIPs consist of marketable debt and equity securities and other investments that are not generally traded in active markets and are carried at fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair values of marketable securities are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. The investments that are not generally traded in active markets consist of equity and debt securities of entities in emerging markets, fund products, other equity and debt instruments, real estate and loans. The fair values are determined using significant unobservable inputs in either a market-based or income-based approach, except for fund products, for which fair values are estimated using NAV as a practical expedient. Property and Equipment, net are recorded at cost and depreciated using the straight-line method over their estimated useful lives which range from three to 35 years. Expenditures for repairs and maintenance are charged to expense when incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the lease term, whichever is shorter. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the shorter of the estimated useful lives of the software or the license terms, beginning when the software project is complete and the application is put into production. Property and equipment are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Carrying values are not recoverable when the undiscounted cash flows estimated to be generated by the assets are less than their carrying values. When an asset is determined to not be recoverable, the impairment is measured based on the excess, if any, of the carrying value of the asset over its respective fair value. Fair value is determined by discounted future cash flows models, appraisals or other applicable methods. Leases consist primarily of operating leases relating to real estate. At the inception of a contract, the Company determines whether it is or contains a lease, which includes consideration of whether there are identified assets in the contract and if the Company has control over such assets. Right-of-use (“ROU”) assets and lease liabilities are recognized for all arrangements that qualify as a lease, except for those with original lease terms of twelve months or less. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments using an incremental borrowing rate estimated on a collateralized basis with similar terms for the specific interest rate environment. Leases with fixed payments are expensed on a straight-line basis over the lease term. Variable lease payments based on usage, changes in an index or market rate are expensed as incurred. The lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised. Lease and nonlease payment components are accounted for separately. ROU assets are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Deferred Sales Commissions consist of upfront commissions paid to financial advisers and broker-dealers on shares of sponsored funds sold without a front-end sales charge, and are amortized over the periods in which they are generally recovered from related revenues, which range from 18 months to seven years. Deferred sales commissions are included in other assets in the consolidated balance sheet. Debt consists of senior notes and junior notes which are carried at amortized cost. The fair value is estimated using quoted market prices, independent third-party broker or dealer price quotes, or prices of publicly traded debt with similar maturities, credit risk and interest rates. Amortization of debt premium and discount are recognized in interest expense. Debt of CIPs is carried at amortized cost. The fair value is estimated using a discounted cash flow model that considers current interest rate levels, the quality of the underlying collateral and current economic conditions. At September 30, 2020, debt of CIPs also included debt of consolidated collateralized loan obligations (“CLOs”) which was measured primarily based on the fair value of the assets of the CLOs less the fair value of the Company’s own economic interests in the CLOs. Noncontrolling Interests consist of third-party equity interests in CIPs and minority interests in certain subsidiaries. Noncontrolling interests that are redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity at the higher of fair value on reporting date or issuance-date fair value. Changes in fair value of redeemable noncontrolling interest is recognized as an adjustment to retained earnings. Nonredeemable noncontrolling interests are classified as a component of equity. Net income (loss) attributable to third-party investors is reflected as net income (loss) attributable to nonredeemable and redeemable noncontrolling interests in the consolidated statements of income. Sales and redemptions of shares of CIPs by third-party investors are a component of the change in noncontrolling interests included in financing activities in the consolidated statements of cash flows. The fair values of third-party equity interests in CIPs are determined based on the published NAV or estimated using NAV a practical expedient. The fair values of redeemable noncontrolling interests related to minority interest in certain subsidiaries are determined using discounted cash flows and guideline public company methods, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate and public company earnings multiples. Revenues. The Company earns revenue primarily from providing investment management and related services to its customers, which are generally investment products or investors in separate accounts. Related services include fund administration, sales and distribution, and shareholder servicing. Revenues are recognized when the Company’s obligations related to the services are satisfied and it is probable that a significant reversal of the revenue amount would not occur in future periods. The obligations are satisfied over time as the services are rendered, except for the sales and distribution obligations for the sale of shares of sponsored funds which are satisfied on trade date. Multiple services included in customer contracts are accounted for separately when the obligations are determined to be distinct. Fees from providing investment management and fund administration services (“investment management fees”), other than performance-based investment management fees, are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM, and are recognized as the services are performed over time. Performance-based investment management fees are generated when investment products’ performance exceeds targets established in customer contracts. These fees are recognized when the amount is no longer probable of significant reversal and may relate to investment management services that were provided in prior periods. Sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees. Sales commissions are based on contractual rates for sales of certain classes of sponsored funds and are recognized on trade date. Distribution service fees are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM. As the fee amounts are uncertain on trade date, they are recognized over time as the amounts become known and may relate to sales and distribution services provided in prior periods. Shareholder servicing fees are primarily determined based on a percentage of AUM on a monthly basis using daily average AUM and either the number of transactions in shareholder accounts or the number of shareholder accounts, while fees from certain investment products are based only on AUM. The fees are recognized as the services are performed over time. AUM is generally based on the fair value of the underlying securities held by investment products and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market in accordance with the Company’s global valuation and pricing policy. The fair values of securities for which market prices are not readily available are valued internally using various methodologies which incorporate significant unobservable inputs as appropriate for each security type and represent an insignificant percentage of total AUM. Revenue is recorded gross of payments made to third-party service providers in the Company’s role as principal as it controls the delegated services provided to customers. Costs of obtaining a contract with a customer include internal and external sales commissions paid upon inception of a contract. The cost to obtain a contract is capitalized if it is incremental and would not have been incurred if the contract had not been obtained. Capitalized contract costs are amortized based on average investor tenure, which range from five to 10 years. Stock-Based Compensation. The fair value of stock-based payment awards is estimated on the date of grant based on the market price of the underlying shares of the Company’s common stock and is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally three years. Expense relating to awards subject to performance conditions is recognized if it is probable that the conditions will be achieved. The probability of achievement is assessed on a quarterly basis. Forfeitures are accounted for as they occur. Postretirement Benefits. Defined contribution plan costs are expensed as incurred. Income Taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. For each tax position taken or expected to be taken in a tax return, the Company determines whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest on tax matters is recognized in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the U.S. and generates earnings worldwide. The Company repatriates its foreign earnings that are in excess of regulatory, capital or operational requirements of all of its non-U.S. subsidiaries. Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries for which the local currency is the functional currency are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings.
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New Accounting Guidance |
12 Months Ended |
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Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Guidance On October 1, 2019, the Company adopted new guidance issued by the Financial Accounting Standards Board (“FASB”) for leases. The new guidance requires lessees to recognize assets and liabilities arising from substantially all leases. The guidance also requires an evaluation at the inception of a contract to determine whether the contract is or contains a lease. The Company adopted the new guidance using the modified retrospective approach and recognized right-of-use assets of $274.5 million and lease liabilities of $315.2 million, substantially all of which relate to real estate leases. The right-of-use assets recognized as of October 1, 2019 were net of $40.7 million of deferred rent previously included in other liabilities on the consolidated balance sheet. See Note 15 – Leases for additional disclosures. Accounting Guidance Not Yet Adopted The FASB issued new guidance for the accounting for credit losses in June 2016. The new guidance requires the application of a current expected credit loss model for financial assets measured at amortized cost, including receivables, and an allowance for credit loss model for available-for-sale debt securities. The Company will adopt the guidance on October 1, 2020 and expects to recognize a cumulative effect adjustment to retained earnings of approximately $6 million.
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Acquisitions |
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Acquisition | Acquisitions Legg Mason, Inc. On July 31, 2020, the Company acquired all outstanding shares of Legg Mason, Inc. (“Legg Mason”) common stock for a purchase consideration of $4.5 billion in cash and $0.2 billion related to the settlement of historical compensation arrangements. Legg Mason has outstanding debt with an aggregate principal amount due of $2.0 billion. The acquisition of Legg Mason, a global investment management organization, establishes the Company as of one of the world’s largest independent, specialized global investment managers, significantly deepens the Company’s presence in key geographies and creates an expansive investment platform that is well balanced between institutional and retail client AUM. The EnTrust business was acquired by its management concurrent with the closing of the acquisition. 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 with the exception of deferred tax assets and liabilities which were valued using preliminary assumptions. The initial estimated fair values of the assets acquired and liabilities and noncontrolling interests assumed were as follows:
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The goodwill is primarily attributable to expected growth opportunities and synergies from the combined operations and is not deductible for tax purposes. The intangible assets relate to acquired investment management contracts and trade names. Indefinite-lived intangible assets represent contracts for which there is no foreseeable limit on the contract period. Definite-lived intangible assets are amortized over their estimated useful lives, which range from 5.0 years to 7.0 years for those related to the contracts and 5.0 years to 20.0 years for those related to trade names. The definite-lived intangible assets related to the contracts and trade names have estimated weighted-average useful lives of 5.9 years and 14.5 years, respectively. The Legg Mason debt is recorded at fair value on acquisition-date and includes a premium of $324.4 million. Transaction costs incurred in connection with the acquisition were $57.4 million in fiscal year 2020. These costs were primarily comprised of professional fees, recorded in general, administrative and other expenses. The Company also incurred $119.6 million of acquisition-related compensation and benefits expense in fiscal year 2020, primarily related to the acceleration of expense for historical Legg Mason compensation arrangements and retention bonuses. Revenue and net loss of Legg Mason included in total operating revenues and net income attributable to Franklin Resources, Inc. in the accompanying consolidated statements of income from the acquisition date through September 30, 2020 were $475.7 million and $28.7 million, respectively. The following unaudited pro forma summary presents combined results of operations of the Company as if the Legg Mason acquisition and concurrent divestiture of EnTrust business had occurred on October 1, 2018. The pro forma adjustments include acquisition-related costs, adjustments to intangible amortization expense, and interest expense related to debt assumed. These pro forma results are not indicative of future results of operations that would have been achieved nor are they indicative of future results of operations of the combined entity.
Benefit Street Partners L.L.C. On February 1, 2019, the Company acquired all of the outstanding ownership interests in Benefit Street Partners L.L.C. (“BSP”), a U.S. alternative credit manager, for a purchase consideration of $720.1 million in cash, of which $135.0 million was used to retire debt. The acquisition provides the Company private credit capabilities that complement its alternative and fixed income strategies available to clients. The estimated fair values of the assets acquired and liabilities and noncontrolling interests assumed were as follows:
The goodwill is primarily attributable to expected growth from the private credit asset class. The amount of goodwill expected to be deductible for tax purposes is $453.2 million, which includes deferred payments that are recognized as compensation expense for accounting purposes. Costs incurred in connection with the acquisition were $6.8 million in the fiscal year ended September 30, 2019 (“fiscal year 2019”). The Company has not presented pro forma combined results of operations for the acquisition of BSP, because the results of operations as reported in the accompanying consolidated statements of income would not have been materially different.
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Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share The components of basic and diluted earnings per share were as follows:
Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.5 million for fiscal year 2020, 0.2 million for fiscal year 2019, and 0.3 million for the fiscal year ended September 30, 2018 (“fiscal year 2018”).
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Revenues |
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Revenues | Revenues Operating revenues by geographic area were as follows:
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.
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Investments |
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Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The disclosures below include details of the Company’s investments, excluding those of CIPs. See Note 11 – Consolidated Investment Products for information related to the investments held by these entities. Investments consisted of the following:
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Fair Value Measurements |
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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 11 – 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:
Investments for which fair value was estimated using reported NAV as a practical expedient primarily consist of nonredeemable private debt, equity and infrastructure funds, and redeemable global equity funds and investments related to long-term incentive plans. The investments in nonredeemable funds 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 were $51.2 million with an expected weighted-average life of 1.9 years at September 30, 2020, and $46.9 million with an expected weighted-average life of 1.3 years at September 30, 2019. The liquidation period for an investment in a private debt fund of $40.2 million and $48.6 million at September 30, 2020 and 2019 is unknown. The Company’s unfunded commitments to the funds totaled $9.5 million and $4.7 million at September 30, 2020 and 2019. The redeemable global equity funds investment of $25.3 million and $10.1 million at September 30, 2020 and 2019 can be redeemed monthly, and investments related to long-term incentive plans of $1.1 million at September 30, 2020 can be redeemed semi-monthly. Changes in the Level 3 assets and liabilities were as follows:
Financial instruments that were not measured at fair value were as follows:
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Property and Equipment |
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Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following:
Depreciation and amortization expense related to property and equipment was $95.2 million, $83.2 million and $78.9 million in fiscal years 2020, 2019 and 2018. The Company recognized $6.6 million of equipment impairment during fiscal year 2018, and insignificant impairment amounts during fiscal year 2019. No impairment of equipment was recorded in fiscal year 2020.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets, net consisted of the following:
Changes in the carrying value of goodwill were as follows:
During the fiscal year 2020, a $23.7 million impairment of goodwill was recognized due to the decision to wind-down operations of Onsa Inc. (formally known as TokenVault, Inc.) which was acquired in fiscal year 2020. During fiscal years 2019 and 2018, no impairment of goodwill was recognized. The Company recognized impairments of indefinite-lived intangible assets of $30.0 million and $9.3 million during fiscal years 2020 and 2019. The impairment in fiscal year 2020 was primarily attributable to a BSP related management contract due to declines in revenue growth rates. The impairment in fiscal year 2019 was related to Canadian management contracts due to revised estimates of future pre-tax profit margins and AUM growth rates for the associated fund products. No impairment of indefinite-lived intangible assets was recognized during fiscal year 2018. Definite-lived intangible assets were as follows:
The Company recognized impairment of definite-lived intangible assets of $1.7 million, $4.0 million and $5.7 million during fiscal years 2020, 2019 and 2018, primarily due to investor redemptions. Definite-lived intangible assets had a weighted-average remaining useful life of 7.5 years at September 30, 2020, with estimated remaining amortization expense as follows:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The disclosures below include details of the Company’s debt, excluding that of CIPs. See Note 11 – Consolidated Investment Products for information related to the debt of these entities. Debt consisted of the following:
At September 30, 2020, Franklin’s outstanding senior unsecured unsubordinated notes had an aggregate principal amount due of $700.0 million. The notes have fixed interest rates with interest payable semi-annually. At September 30, 2020, Legg Mason’s outstanding senior and junior unsecured unsubordinated notes had an aggregate principal amount due of $2,000.0 million. The notes have fixed interest rates with interest payable semi-annually for senior notes and quarterly for junior notes. The senior notes contain an optional redemption feature that allows the Company to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The junior notes due March 2056 and September 2056 may only be redeemed in whole prior to March 2021 and September 2021, respectively. The indentures governing the senior notes contain limitations on the Company’s ability and the ability of its subsidiaries to pledge voting stock or profit participating equity interests in its subsidiaries to secure other debt without similarly securing the notes equally and ratably. In addition, the indentures include requirements that must be met if the Company consolidates or merges with, or sells all or substantially all of its assets to, another entity. The Company was in compliance with all debt covenants at September 30, 2020. At September 30, 2020, the Company had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012. On October 19, 2020, the Company completed its offering and sale of the 1.600% Notes due 2030 with a principal amount of $750.0 million. See Note 22 – Subsequent Event for additional information.
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Consolidated Investment Products |
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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 VOEs and VIEs. CLOs are asset-backed financing entities collateralized by a pool of corporate loans. The Company had 72 CIPs, including four CLOs, as of September 30, 2020 and 60 CIPs, none of which were CLOs, as of September 30, 2019. The balances related to CIPs included in the Company’s consolidated balance sheets were as follows:
The CIPs did not have a significant impact on net income attributable to the Company in fiscal years 2020, 2019 and 2018. 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 and liabilities of CIPs measured at fair value on a recurring basis were as follows:
Investments for which fair value was estimated using reported NAV as a practical expedient consist of nonredeemable real estate and private equity funds. These investments are expected to be returned through distributions over the life of the funds as a result of liquidations of the funds’ underlying assets over a weighted-average period of 4.2 years and 4.4 years at September 30, 2020 and 2019. The CIPs’ unfunded commitments to these funds totaled $94.0 million and $168.7 million, of which the Company was contractually obligated to fund $11.4 million and $20.6 million based on its ownership percentage in the CIPs, at September 30, 2020 and 2019. Changes in Level 3 assets were as follows:
Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows:
If the relevant significant inputs used in the market-based valuations, other than the discount for lack of marketability and risk premium, were independently higher (lower), the resulting fair value of the assets would be higher (lower). If the relevant significant inputs used in the discounted cash flow or yield capitalization valuations, as well as the discount for lack of marketability and risk premium in the market-based valuations, were independently higher (lower) as of September 30, 2020, 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:
Debt Debt of CIPs consisted of the following:
The debt of CLOs had floating interest rates based on LIBOR ranging from 1.48% to 8.19% at September 30, 2020. The other debt had fixed and floating interest rates primarily based on LIBOR ranging from 1.00% to 5.81% at September 30, 2020, and from 2.08% to 7.94% at September 30, 2019. The contractual maturities for debt of CIPs at September 30, 2020 were as follows:
Collateralized Loan Obligations The unpaid principal balance and fair value of the investments of CLOs were as follows:
Investments 90 days or more past due were $3.9 million at September 30, 2020. The Company recognized $1.3 million of net losses during fiscal year 2020 related to its own economic interests in the CLOs. The aggregate principal amount due of the debt of CLOs was $1,235.8 million at September 30, 2020.
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Redeemable Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Disclosure [Text Block] | Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests were as follows:
______________ 1 Represents redeemable noncontrolling interests of CIPs.
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Nonconsolidated Variable Interest Entities |
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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, and loans and related interest receivable as follows:
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. In April 2020, the Company authorized loans aggregating up to 5.0 billion Indian Rupees (approximately $66.2 million) to certain sponsored funds in India that had experienced increased liquidity risks and redemptions. The funds are subject to the decision of the funds’ trustee to wind up the funds. See Note 16 – Commitments and Contingencies for further information. The loans have a fixed interest rate of 8.0% per annum, are secured by the funds’ assets and are due upon demand. At September 30, 2020, the loans have an aggregate outstanding balance of $42.4 million, and the remaining authorization available is approximately $4.9 million. The Company did not provide financial or other support to its sponsored funds during fiscal year 2019.
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Taxes on Income |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on Income | Taxes on Income The Tax Cuts and Jobs Act (“the Tax Act”), which was enacted into law in the U.S. in December 2017, includes various changes to the tax law, including a permanent reduction in the corporate income tax rate and assessment of a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries’ earnings. The estimated related changes in the Company’s deferred tax assets and deferred tax liabilities resulted in a $35.6 million decrease in deferred tax assets, an $88.9 million decrease in deferred tax liabilities and a $53.3 million net tax benefit in fiscal year 2018. The Company also reclassified $0.1 million from accumulated other comprehensive loss to retained earnings related to stranded tax effects resulting from the change in tax rate during fiscal year 2018. The Company completed its analysis of the Tax Act impact during the first quarter of fiscal year 2019 with no significant adjustment to the provisional amounts previously recorded. The estimated transition tax expense recognized in fiscal year 2018 of $983.2 million was net of an $87.6 million tax benefit related to U.S. taxation of deemed foreign dividends. This benefit was reversed during fiscal year 2019 upon issuance of final regulations by the U.S. Department of Treasury, resulting in increased income tax expense and gross unrecognized tax benefits. The remaining federal portion of the transition tax liability was $757.2 million at September 30, 2020, and will be paid over the next six years, with 8% of the original liability payable in each of the next three years, 15% in year four, 20% in year five and 25% in year six. The Tax Act reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. The Company’s federal statutory rate for fiscal year 2018 was a blended rate of 24.5%, based on the pre- and post-Tax Act rates. Prior to the Tax Act, the Company had not provided for U.S. income taxes on undistributed earnings and other outside basis differences of its non-U.S. subsidiaries as it was the Company’s intention for these tax basis differences to remain indefinitely reinvested. Following the Company’s change in policy effective April 1, 2020 to repatriate earnings of all non-U.S. subsidiaries, other outside basis differences, which arose primarily from purchase accounting adjustments, undistributed earnings that are considered indefinitely reinvested and foreign earnings that are restricted by operational and regulatory requirements, remain indefinitely reinvested. These basis differences could reverse through sales of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable as of September 30, 2020. The Company has made no provision for U.S. income taxes on these outside basis differences, and determination of the amount of unrecognized deferred tax liability related to such basis differences is not practicable. The Coronavirus Aid, Relief, and Economic Security Act, which includes several corporate tax provisions and was signed into law on March 27, 2020, did not have a material impact on the Company’s income taxes. Taxes on income were as follows:
Income before taxes consisted of the following:
The Company’s income in certain countries is subject to reduced tax rates due to tax rulings and incentives. The impact of the reduced rates on income tax expense was $2.7 million or $0.01 per diluted share for fiscal year 2020, $4.1 million or $0.01 per diluted share for fiscal year 2019, and $31.3 million or $0.06 per diluted share for fiscal year 2018. One tax incentive remained in effect at September 30, 2020 which will expire in December 2023. The significant components of deferred tax assets and deferred tax liabilities were as follows:
Deferred income tax assets and liabilities that relate to the same tax jurisdiction are presented net on the consolidated balance sheets. The components of the net deferred tax liability were classified in the consolidated balance sheets as follows:
The Company recorded on a preliminary basis the deferred tax effects associated with the fair value of assets acquired and liabilities assumed from the acquisition of Legg Mason and acquired attributes that carry over to post-acquisition tax periods, including U.S. state and foreign net operating losses and foreign tax credits. Utilization of the U.S. state net operating losses and federal credit carry-forwards may be subject to annual limitations due to ownership change provisions under Section 382 of the Internal Revenue Code. Foreign tax credits can only be used to offset tax attributable to foreign source income. At September 30, 2020, there were $107.3 million of non-U.S. tax effected net operating loss carry-forwards which expire between fiscal years 2021 and 2040. In addition, there were $199.4 million in tax effected state net operating loss carry-forwards that expire between fiscal years 2021 and 2041, with some having an indefinite carry-forward period. The Company also has federal net operating losses of $9.3 million, the majority of which will carry-forward indefinitely and $103.0 million of foreign tax credit carry-forwards that expire between fiscal years 2021 and 2028. The Company recognizes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized based on timing of expiration, nature, projected sources of income and limitations on utilization under the statute. The valuation allowance increased $293.7 million in fiscal year 2020 primarily related to carry-forward assets recognized in connection with the acquisition of Legg Mason, and decreased $0.6 million in fiscal year 2019. At September 30, 2020, a valuation allowance of $320.6 million was recorded for the following items: $202.2 million for federal, state, and foreign net operating loss carry-forwards, $45.0 million due to uncertainty of realizing the benefit of foreign tax credits, $38.4 million for other foreign deferred taxes including carried forward U.K. interest deductions, and $35.0 million for capital losses. A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows:
Other Tax Act impacts consist primarily of foreign dividend distribution taxes and tax withholdings. The Company recognized a tax benefit in fiscal year 2020 for capital losses that were realized from sales of investments subsequent to the change in corporate tax structure of a foreign holding company to a U.S. branch. The benefit reflects the Company’s ability to carryback losses for the last three tax years at historical Federal statutory tax rates. The remaining capital losses can be carried forward, which the Company assessed for realizability. A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows:
If recognized, $303.1 million for 2020 and the balance for 2019 and 2018, net of any deferred tax benefits, would favorably affect the Company’s effective income tax rate in future periods. The Company accrues interest and penalties related to unrecognized tax benefits in general, administrative and other expenses. Accrued interest on uncertain tax positions at September 30, 2020 and 2019 was $21.7 million and $11.9 million, and is not presented in the unrecognized tax benefits table above. Accrued penalties at September 30, 2020 was $2.9 million and insignificant in 2019. The Company files a consolidated U.S. federal income tax return, multiple U.S. state and local income tax returns, and income tax returns in multiple non-U.S. jurisdictions. The Company is subject to examination by the taxing authorities in these jurisdictions. The Company’s major tax jurisdictions and the tax years for which the statutes of limitations have not expired are as follows: India 2003 to 2020; Brazil 2008 to 2020, Canada 2011 to 2020; Hong Kong 2014 to 2020; Singapore 2015 to 2020; Luxembourg and the U.K. 2019 to 2020; U.S. federal 2017 to 2020; the City of New York 2012 to 2020; and the States of California, and Minnesota 2016 to 2020; and the States of Florida, Maryland, Massachusetts, New York, and Pennsylvania 2017 to 2020. The Company has ongoing examinations in various stages of completion in the State of Illinois, City of New York, and in Canada, France, Germany and India. Examination outcomes and the timing of settlements are subject to significant uncertainty. Such settlements may involve some or all of the following: the payment of additional taxes, the adjustment of deferred taxes and/or the recognition of unrecognized tax benefits. The Company has recognized a tax benefit only for those positions that meet the more-likely-than-not recognition threshold. It is reasonably possible that the total unrecognized tax benefit as of September 30, 2020 could decrease by an estimated $35.4 million within the next twelve months as a result of the expiration of statutes of limitations in the U.S. federal and certain U.S. state and local and non-U.S. tax jurisdictions, and potential settlements with U.S. states and non-U.S. taxing authorities.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Arrangements The leases had a weighted-average remaining lease term of 6.5 years as of September 30, 2020, and generally include one or more options to renew. Lease expense was as follows:
Supplemental cash flow information related to leases was as follows:
The weighted-average discount rate for the operating lease liabilities as of September 30, 2020 was 3.5%. The maturities of the liabilities were as follows:
As of September 30, 2019, future minimum lease payments under long-term non-cancelable operating leases were as follows:
Lessor Arrangements The Company leases excess owned space in its San Mateo, California corporate headquarters and other office buildings, primarily in the U.S., to third parties, and generally include one or more options to renew. The Company subleases excess leased office spaces to various firms, primarily in the U.S., and generally include options to renew or terminate within a specified period. The maturities of lease payments due to the Company and weighted-average remaining lease term as of September 30, 2020 were as follows:
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Commitments and Contingencies |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings India Credit Fund Closure Matters. Effective April 24, 2020, a subsidiary of Franklin, Franklin Templeton Trustee Services Private Limited (“FTTS”), announced its decision to wind-up six fixed income mutual fund schemes of the Franklin Templeton Mutual Fund in India (referred to herein as the “Funds” or the “India Fixed Income Funds”), which at the time had collective assets under management of approximately USD $3.4 billion. FTTS took action to convene unitholder meetings for the Funds to approve the appointment of liquidators, and the asset management company to the Funds, Franklin Templeton Asset Management (India) Private Limited (“FTAMI”), ceased earning investment management fees on the Funds. Certain Fund unitholders and others subsequently commenced multiple writ petition actions in India (some of which were promptly voluntarily dismissed), challenging the decision to wind up the Funds and alleging that the Company Respondents (as defined below) violated various regulations of the Securities and Exchange Board of India (“SEBI”), mismanaged the Funds, misrepresented or omitted certain information relating to the Funds, and/or engaged in other alleged misconduct. The petitions were filed in May 2020 and June 2020 in the High Court of Gujarat, the High Court of Madras, and the High Court of Delhi, and named as respondents one or more of Franklin, its subsidiaries Templeton International, Inc., FTTS, FTAMI, and certain individual directors, officers, and employees of FTAMI (collectively, the “Company Respondents”), as well as SEBI and other governmental authorities. The petitioners sought a wide range of relief, including, among other items, an order quashing the wind-up notice and blocking the unitholder vote, initiating various investigations into the Company Respondents, and allowing the unitholder petitioners to redeem their investments with interest. On June 3, 2020, the High Court of Gujarat granted an ex parte interim injunction order, staying the operation and implementation of the unitholder voting process. On June 19, 2020, the petitions were transferred to the High Court of Karnataka for hearing and resolution. In the course of the hearings, on September 24, 2020, the Company learned that a “first information report” or “FIR” had been registered by the Economic Offenses Wing of the Chennai police department against certain of the Company Respondents in connection with a complaint made by one of the petitioners. In light of the registration of the FIR, which is the preliminary step in an investigation, the court disposed of the petition that had sought an order for such an investigation. On October 24, 2020, the High Court of Karnataka issued its judgment, in which it upheld the decision taken by FTTS to wind up the Funds and held that there was “nothing wrong with the decision making process,” but determined that consent of the unitholders is required to implement the decision. The court did not grant the other relief sought by the petitioners. The court stayed the operation of its judgment for a period of six weeks, during which time the court held that there will not be any redemptions from the Funds. The deadline for any party to file an appeal is 90 days from the date of the judgment. Certain Company Respondents intend to appeal parts of the judgment. Separately, on May 27, 2020, SEBI initiated a forensic audit/inspection of Franklin Templeton Mutual Fund, FTAMI, and FTTS and appointed an outside auditor to conduct the review. The auditor submitted a confidential report to SEBI containing certain preliminary observations, to which SEBI sought responses from FTAMI and FTTS, and such responses were provided in September 2020. The matter is currently under review by SEBI. As part of the judgment issued by the High Court of Karnataka, the court directed SEBI to decide whether or not to take action within six weeks from the date it receives a final report by the forensic auditor. The Company strongly believes that the decision by FTTS to wind up the India Fixed Income Funds was taken in the best interests of investors and fully pursuant to applicable SEBI regulations. Nonetheless, to implement the decision, FTTS ultimately may be required, or may determine, to obtain unitholder consent. If that effort is unsuccessful and/or if unitholder redemptions from the Funds are not suspended until the process for seeking such consent is complete, the Funds could experience significant redemption pressures. In the event that the Funds are unable to meet investor redemption requests in an orderly fashion, including if redemptions require the Funds to undertake distressed sales of assets resulting in the reduction of the net asset values of the Funds, additional litigation and/or regulatory or governmental investigations and proceedings could be initiated. In addition, if SEBI were to commence a regulatory proceeding in connection with the forensic audit, and ultimately conclude that the respondents violated applicable regulations, it is possible that certain Franklin subsidiaries and related individuals could be subject to the imposition of regulatory sanctions. While the Company believes that it would have meritorious defenses to any such actions, such matters could involve the risk of significant financial penalties and other liabilities, reputational harm, and restrictions on the Company’s asset management activities in India, all of which could adversely impact the Company’s financial results. The Company cannot at this time predict the eventual outcome of the matters described above or reasonably estimate the possible loss or range of loss that may arise from any negative outcome of such matters, including due to the current stage of these matters. Other Litigation Matters. The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity. In management’s opinion, an adequate accrual has been made as of September 30, 2020 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 in those positions. 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 September 30, 2020. Other Commitments and Contingencies While the Company has no legal or contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. At September 30, 2020, the Company had $335.6 million of committed capital contributions which relate to discretionary commitments to invest in sponsored funds and other investment products and entities, including CIPs. These unfunded commitments are not recorded in the Company’s consolidated balance sheet.
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Stock-Based Compensation |
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Share-based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation plans consist of the Amended and Restated Annual Incentive Compensation Plan (the “AIP”), the 2002 Universal Stock Incentive Plan, as amended and restated (the “USIP”) and the amended and restated Franklin Resources, Inc. 1998 Employee Stock Investment Plan (the “ESIP”). In connection with the acquisition of Legg Mason, the Company assumed the Legg Mason 2017 Equity Incentive Plan, which was amended and restated as the Amended and Restated Franklin Resources, Inc. 2017 Equity Incentive Plan (the “EIP”). The Compensation Committee of the Board of Directors determines the terms and conditions of awards under the AIP, the USIP, the ESIP and the EIP. Stock-based compensation expenses were as follows:
Stock and Stock Unit Awards Under the terms of the AIP, eligible employees may receive cash, equity awards and/or mutual fund unit awards generally based on the performance of the Company and/or its funds, and the individual employee. The USIP and EIP provide for the issuance of the Company’s common stock for various stock-related awards to officers, directors and employees. There are 120.0 million shares authorized under the USIP and 23.0 million shares authorized under the EIP, of which 4.5 million shares and 18.3 million shares were available for grant at September 30, 2020. Stock awards entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards entitle holders to receive the underlying shares of common stock once the awards vest. Awards vest based on the passage of time or the achievement of predetermined Company financial performance goals. Stock and stock unit award activity was as follows:
Total unrecognized compensation expense related to nonvested stock and stock unit awards was $338.2 million at September 30, 2020. This expense is expected to be recognized over a remaining weighted-average vesting period of 3.1 years. The weighted-average grant-date fair values of stock awards and stock unit awards granted during fiscal years 2020, 2019 and 2018 were $23.05, $30.75 and $42.63 per share. The total fair value of stock and stock unit awards vested during the same periods was $72.2 million, $84.2 million and $91.5 million. The Company generally does not repurchase shares upon vesting of stock and stock unit awards. However, in order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, shares are repurchased using a net stock issuance method. Employee Stock Investment Plan The ESIP allows eligible participants to buy shares of the Company’s common stock at a discount of its market value on defined dates. A total of 1.0 million shares were issued under the ESIP during fiscal year 2020, and 5.9 million shares were reserved for future issuance at September 30, 2020.
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Defined Contribution Plans |
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Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans The Company sponsors a 401(k) plan which covers substantially all U.S. employees meeting certain employment requirements. Participants may contribute up to 50% of their eligible salary and up to 100% of the cash portion of their year-end bonus, as defined by the plan and subject to Internal Revenue Code limitations, each year to the plan. The Company increased its matching contribution rate from 75% to 85% for a period of three years beginning January 1, 2020. Certain of the Company’s non-U.S. subsidiaries also sponsor defined contribution plans primarily for the purpose of providing deferred compensation incentives for employees and to comply with local regulatory requirements. The total expenses recognized for defined contribution plans were $59.2 million, $52.2 million and $49.8 million for fiscal years 2020, 2019 and 2018.
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Segment and Geographic Information |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information The Company has one operating segment, investment management and related services. See Note 5 – Revenues for total operating revenues disaggregated by geographic location.
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Investment and Other Income (Losses), Net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment and Other Income (Losses), Net | Other Income (Losses), Net Investment and other income (losses), net consisted of the following:
Substantially all dividend income was generated by investments in nonconsolidated sponsored funds. Interest income was primarily generated by cash equivalents, debt securities of U.S. states and political subdivisions. Gains (losses) on investments, net consists primarily of realized and unrealized gains (losses) on equity securities measured at fair value and other-than-temporary impairment of investments. Proceeds from the sale of available-for-sale securities were $1.6 million and $85.5 million in fiscal years 2020 and 2018. There were no sales of available-for-sale securities in fiscal year 2019. Net losses recognized on equity securities measured at fair value and trading debt securities that were held by the Company at September 30, 2020 and 2019 were $2.6 million and $0.1 million, and the net loss recognized on trading investment securities that were held by the Company at September 30, 2018 was $1.7 million.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows:
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Subsequent Event Subsequent Event (Notes) |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On October 19, 2020, the Company completed its offering and sale of the 1.600% Notes due 2030 with a principal amount of $750.0 million. Interest on the notes will be payable semi-annually on April 30 and October 30 of each year, beginning on April 30, 2021. The notes contain an optional redemption feature that allows the Company to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price.
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Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business | Business. Franklin Resources, Inc. (“Franklin”) is a holding company with subsidiaries (collectively, the “Company”) operating under its Franklin Templeton and/or subsidiary brand names. The Company provides investment management and related services in jurisdictions worldwide for investors in investment products which include sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. In addition to investment management, the Company’s services include fund administration, sales and distribution, and shareholder servicing.
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Basis of Presentation | Basis of Presentation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Management believes that the accounting estimates are appropriate, and the resulting balances are reasonable; however, due to the inherent uncertainties in making estimates, actual amounts may differ from these estimates. Certain comparative amounts for prior fiscal years have been reclassified to conform to the financial statement presentation as of and for the fiscal year ended September 30, 2020 (“fiscal year 2020”). In the quarter ended September 30, 2020, the Company changed the presentation of its consolidated statements of income to include dividend and investment income and expenses of consolidated investment products in other income, net. Amounts for the comparative prior fiscal year periods have been reclassified to conform to the current year presentation. These reclassifications had no impact on previously reported net income or financial position. Management believes the revised presentation is more useful to readers of its financial statements and more accurately portrays the nature of the consolidated investment products (“CIP”) revenue and expenses as the operations of CIPs are not related to the Company’s core business. The following table presents the effects of the change in the presentation of operating revenues, operating expenses and other income, net to the Company’s previously reported consolidated statements of income:
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Consolidation | Consolidation. The consolidated financial statements include the accounts of Franklin and its subsidiaries and CIPs in which it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a voting interest entity (“VOE”) or is the primary beneficiary of a variable interest entity (“VIE”). Intercompany accounts and transactions have been eliminated. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or do not have defined rights and obligations normally associated with an equity investment. Substantially all of the Company’s VIEs are investment products, and its variable interests consist of its equity ownership interests in and investment management fees earned from these products. The Company is the primary beneficiary of a VIE if it has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of assets under management (“AUM”) and the life of the investment product.
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Related Parties | Related Parties include sponsored funds and equity method investees. A substantial amount of the Company’s operating revenues and receivables are from related parties.
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Earnings per Share | Earnings per Share. Basic and diluted earnings per share are computed using the two-class method, which considers participating securities as a separate class of shares. The Company’s participating securities consist of its nonvested stock and stock unit awards that contain nonforfeitable rights to dividends or dividend equivalents. Basic earnings per share is computed by dividing net income available to the Company’s common stockholders, adjusted to exclude earnings allocated to participating securities, by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted-average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period.
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Business combinations | Business combinations are accounted for by recognizing the acquired assets, including separately identifiable intangible assets, and assumed liabilities at their acquisition-date estimated fair values. Any excess of the purchase consideration over the acquisition-date fair values of these identifiable assets and liabilities is recognized as goodwill. During the measurement period, which is not to exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed due to new information about facts that existed as of the acquisition date, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in earnings. Intangible assets acquired in business combinations consist primarily of investment management contracts and trade names. The fair values of the acquired management contracts are based on the net present value of estimated future cash flows attributable to the contracts, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. The fair value of trade names is determined using the relief from royalty method based on net present value of estimated future cash flows, which include significant assumptions about royalty rate, revenue growth rate, discount rate and effective tax rate. The management contract intangible assets are amortized over their estimated useful lives, which range from three to 15 years, using the straight-line method, unless the asset is determined to have an indefinite useful life. Indefinite-lived intangible assets represent contracts to manage investment assets for which there is no foreseeable limit on the contract period. Trade names intangible assets are amortized over their estimated useful lives which range from five to twenty years using the straight-line method. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of August 1 and when an event occurs or circumstances change that more likely than not reduce the fair value of the related reporting unit or indefinite-lived intangible asset below its carrying value. The Company has one reporting unit, investment management and related services, consistent with its single operating segment, to which all goodwill has been assigned. Amortization and impairment are recognized in general, administrative and other expense. Goodwill and indefinite-lived intangible assets may first be assessed for qualitative factors to determine whether it is necessary to perform a quantitative impairment test. The qualitative analysis considers entity-specific and macroeconomic factors and their potential impact on the key assumptions used in the determination of the fair value of the reporting unit or indefinite-lived intangible asset. A quantitative impairment test is performed if the results of the qualitative assessment indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value or an indefinite-lived intangible asset is impaired, or if a qualitative assessment is not performed. If a quantitative goodwill impairment test indicates that the carrying value of the goodwill exceeds the fair value of the reporting unit, impairment is recognized in the amount of the excess of the carrying value over the implied fair value of the goodwill, which considers the fair value assigned to all other assets and liabilities of the reporting unit. If a quantitative indefinite-lived intangible assets impairment test indicates that the carrying value of the asset exceeds the fair value, impairment is recognized in the amount of the difference in values. The fair values of the reporting unit and indefinite-lived intangible assets are based on the net present value of estimated future cash flows, which include assumptions about the AUM growth rate, pre-tax profit margin, discount rate, average effective fee rate and effective tax rate. Definite-lived intangible assets are tested for impairment quarterly. Impairment is indicated when the carrying value of an asset is not recoverable and exceeds its fair value. Recoverability is evaluated based on estimated undiscounted future cash flows using assumptions about the AUM growth rate, pre-tax profit margin, average effective fee rate and expected useful lives as well as royalty rate for trade name intangible assets. If the carrying value of an asset is not recoverable through undiscounted cash flows, impairment is recognized in the amount by which the carrying value exceeds the asset’s fair value, as determined by discounted cash flows or other methods as appropriate for the asset type.
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Fair Value Measurements | Fair Value Measurements. The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Quoted market prices may be adjusted if events occur, such as significant price changes in proxies traded in relevant markets after the close of corresponding markets, trade halts or suspensions, or unscheduled market closures. These proxies consist of correlated country-specific exchange-traded securities, such as futures, American Depositary Receipts indices or exchange-traded funds. The price adjustments are primarily determined based on third-party factors derived from model-based valuation techniques for which the significant assumptions are observable in the market. A substantial amount of the Company’s investments is recorded at fair value or amounts that approximate fair value on a recurring basis. Investments in fund products for which fair value is estimated using NAV as a practical expedient (when the NAV is available to the Company as an investor but is not publicly available) are not classified in the fair value hierarchy. Fair values are estimated for disclosure purposes for financial instruments that are not measured at fair value.
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Cash and Cash Equivalents | Cash and Cash Equivalents primarily consist of nonconsolidated sponsored money market funds and deposits with financial institutions and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value. The Company maintains cash and cash equivalents with financial institutions in various countries, limits the amount of credit exposure with any given financial institution and conducts ongoing evaluations of the creditworthiness of the financial institutions with which it does business.
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Receivables | Receivables consist primarily of fees receivable from investment products and are carried at invoiced amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value.
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Investments | Investments consist of investments in sponsored funds and separate accounts, investments related to long-term incentive plans, other equity and debt securities, investments in equity method investees and other investments. Sponsored funds and separate accounts consist primarily of nonconsolidated sponsored funds and to a lesser extent, separate accounts. Sponsored funds and separate accounts are carried at fair value with changes in the fair value recognized as gains and losses in earnings. The fair values of funds are determined based on their published NAV or estimated using NAV as a practical expedient. The fair values of separate accounts are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. Investments related to long-term incentive plans consist primarily of investments in sponsored funds related to certain compensation plans that have vesting provision and are carried at fair value. Changes in fair value are recognized as gains and losses in earnings. The fair values of the investments are determined based on the funds’ published NAV or estimated using NAV as a practical expedient. Other equity and debt securities consist of equity investment securities and debt securities classified as trading or available-for-sale and are carried at fair value. Changes in the fair value of trading securities are recognized as gains and losses in earnings. Unrealized gains and losses on available-for-sale securities are recorded net of tax as part of accumulated other comprehensive income (loss) until realized, at which time they are recognized in earnings using the average cost method. The fair values of equity securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. The fair values of debt securities are determined using independent third-party broker or dealer price quotes or based on discounted cash flows using significant unobservable inputs. Investments in Equity Method Investees consist of equity investments in entities, including sponsored funds, over which the Company is able to exercise significant influence, but not control. Significant influence is generally considered to exist when the Company’s ownership interest in the investee is between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, also are considered in determining whether the equity method of accounting is appropriate. Investments in limited partnerships and limited liability companies are accounted for using the equity method when the Company’s investment is more than minor or when the Company is the general partner. Under the equity method of accounting, the investments are initially carried at cost and subsequently adjusted by the Company’s proportionate share of the entities’ net income, which is recognized in earnings. Other Investments consist of equity investments in entities over which the Company is unable to exercise significant influence and do not have a readily determinable fair value, and time deposits with maturities greater than three months from the date of purchase. The equity investments are measured at cost adjusted for observable price changes and impairment, if any, which are recognized in earnings. The fair value of the entities is generally estimated using significant unobservable inputs in either a market-based or income-based approach. The time deposits are carried at cost, which approximates fair value due to their short-term nature and liquidity. Life settlement contracts, which were disposed during fiscal year 2020, were carried at fair value, determined based on discounted cash flows using significant unobservable inputs. Impairment of Investments. Investments in available-for-sale securities, equity method investees and equity investments that do not have a readily determinable fair value are evaluated for impairment on a quarterly basis. The evaluation of equity investments considers qualitative factors, including the financial condition and specific events related to an investee, that may indicate the fair value of the investment is less than its carrying value. Impairment of equity securities is recognized in earnings.
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Cash and Cash Equivalents of CIPs | Cash and Cash Equivalents of CIPs consist of highly liquid investments, including money market funds, which are readily convertible into cash, and deposits with financial institutions, and are carried at cost. Due to the short-term nature and liquidity of these financial instruments, their carrying values approximate fair value.
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Receivables of CIPs | Receivables of CIPs consist of investment and share transaction related receivables and are carried at transacted amounts. Due to the short-term nature and liquidity of the receivables, their carrying values approximate fair value.
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Investments of CIPs | Investments of CIPs consist of marketable debt and equity securities and other investments that are not generally traded in active markets and are carried at fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. The fair values of marketable securities are determined using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. The investments that are not generally traded in active markets consist of equity and debt securities of entities in emerging markets, fund products, other equity and debt instruments, real estate and loans. The fair values are determined using significant unobservable inputs in either a market-based or income-based approach, except for fund products, for which fair values are estimated using NAV as a practical expedient.
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Property and Equipment, net | Property and Equipment, net are recorded at cost and depreciated using the straight-line method over their estimated useful lives which range from three to 35 years. Expenditures for repairs and maintenance are charged to expense when incurred. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the lease term, whichever is shorter. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the shorter of the estimated useful lives of the software or the license terms, beginning when the software project is complete and the application is put into production. Property and equipment are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable. Carrying values are not recoverable when the undiscounted cash flows estimated to be generated by the assets are less than their carrying values. When an asset is determined to not be recoverable, the impairment is measured based on the excess, if any, of the carrying value of the asset over its respective fair value. Fair value is determined by discounted future cash flows models, appraisals or other applicable methods.
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Leases | Leases consist primarily of operating leases relating to real estate. At the inception of a contract, the Company determines whether it is or contains a lease, which includes consideration of whether there are identified assets in the contract and if the Company has control over such assets. Right-of-use (“ROU”) assets and lease liabilities are recognized for all arrangements that qualify as a lease, except for those with original lease terms of twelve months or less. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments using an incremental borrowing rate estimated on a collateralized basis with similar terms for the specific interest rate environment. Leases with fixed payments are expensed on a straight-line basis over the lease term. Variable lease payments based on usage, changes in an index or market rate are expensed as incurred. The lease terms include options to extend or terminate the lease when it is reasonably certain they will be exercised. Lease and nonlease payment components are accounted for separately. ROU assets are tested for impairment when there is an indication that the carrying value of an asset may not be recoverable.
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Deferred Sales Commissions | Deferred Sales Commissions consist of upfront commissions paid to financial advisers and broker-dealers on shares of sponsored funds sold without a front-end sales charge, and are amortized over the periods in which they are generally recovered from related revenues, which range from 18 months to seven years. Deferred sales commissions are included in other assets in the consolidated balance sheet.
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Debt | Debt consists of senior notes and junior notes which are carried at amortized cost. The fair value is estimated using quoted market prices, independent third-party broker or dealer price quotes, or prices of publicly traded debt with similar maturities, credit risk and interest rates. Amortization of debt premium and discount are recognized in interest expense.
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Debt of CIPs | Debt of CIPs is carried at amortized cost. The fair value is estimated using a discounted cash flow model that considers current interest rate levels, the quality of the underlying collateral and current economic conditions. At September 30, 2020, debt of CIPs also included debt of consolidated collateralized loan obligations (“CLOs”) which was measured primarily based on the fair value of the assets of the CLOs less the fair value of the Company’s own economic interests in the CLOs.
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Noncontrolling Interests | Noncontrolling Interests consist of third-party equity interests in CIPs and minority interests in certain subsidiaries. Noncontrolling interests that are redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity at the higher of fair value on reporting date or issuance-date fair value. Changes in fair value of redeemable noncontrolling interest is recognized as an adjustment to retained earnings. Nonredeemable noncontrolling interests are classified as a component of equity. Net income (loss) attributable to third-party investors is reflected as net income (loss) attributable to nonredeemable and redeemable noncontrolling interests in the consolidated statements of income. Sales and redemptions of shares of CIPs by third-party investors are a component of the change in noncontrolling interests included in financing activities in the consolidated statements of cash flows. The fair values of third-party equity interests in CIPs are determined based on the published NAV or estimated using NAV a practical expedient. The fair values of redeemable noncontrolling interests related to minority interest in certain subsidiaries are determined using discounted cash flows and guideline public company methods, which include significant assumptions about forecasts of the AUM growth rate, pre-tax profit margin, discount rate and public company earnings multiples.
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Revenues | Revenues. The Company earns revenue primarily from providing investment management and related services to its customers, which are generally investment products or investors in separate accounts. Related services include fund administration, sales and distribution, and shareholder servicing. Revenues are recognized when the Company’s obligations related to the services are satisfied and it is probable that a significant reversal of the revenue amount would not occur in future periods. The obligations are satisfied over time as the services are rendered, except for the sales and distribution obligations for the sale of shares of sponsored funds which are satisfied on trade date. Multiple services included in customer contracts are accounted for separately when the obligations are determined to be distinct. Fees from providing investment management and fund administration services (“investment management fees”), other than performance-based investment management fees, are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM, and are recognized as the services are performed over time. Performance-based investment management fees are generated when investment products’ performance exceeds targets established in customer contracts. These fees are recognized when the amount is no longer probable of significant reversal and may relate to investment management services that were provided in prior periods. Sales and distribution fees primarily consist of upfront sales commissions and ongoing distribution fees. Sales commissions are based on contractual rates for sales of certain classes of sponsored funds and are recognized on trade date. Distribution service fees are determined based on a percentage of AUM, primarily on a monthly basis using daily average AUM. As the fee amounts are uncertain on trade date, they are recognized over time as the amounts become known and may relate to sales and distribution services provided in prior periods. Shareholder servicing fees are primarily determined based on a percentage of AUM on a monthly basis using daily average AUM and either the number of transactions in shareholder accounts or the number of shareholder accounts, while fees from certain investment products are based only on AUM. The fees are recognized as the services are performed over time. AUM is generally based on the fair value of the underlying securities held by investment products and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market in accordance with the Company’s global valuation and pricing policy. The fair values of securities for which market prices are not readily available are valued internally using various methodologies which incorporate significant unobservable inputs as appropriate for each security type and represent an insignificant percentage of total AUM. Revenue is recorded gross of payments made to third-party service providers in the Company’s role as principal as it controls the delegated services provided to customers. Costs of obtaining a contract with a customer include internal and external sales commissions paid upon inception of a contract. The cost to obtain a contract is capitalized if it is incremental and would not have been incurred if the contract had not been obtained. Capitalized contract costs are amortized based on average investor tenure, which range from five to 10 years.
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Stock-Based Compensation | Stock-Based Compensation. The fair value of stock-based payment awards is estimated on the date of grant based on the market price of the underlying shares of the Company’s common stock and is amortized to compensation expense on a straight-line basis over the related vesting period, which is generally three years. Expense relating to awards subject to performance conditions is recognized if it is probable that the conditions will be achieved. The probability of achievement is assessed on a quarterly basis. Forfeitures are accounted for as they occur.
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Postretirement Benefits | Postretirement Benefits. Defined contribution plan costs are expensed as incurred.
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Income Taxes | Income Taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and the reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year when the reported amount of the asset or liability is expected to be recovered or settled, respectively. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying values of deferred tax assets to the amount that is more likely than not to be realized. For each tax position taken or expected to be taken in a tax return, the Company determines whether it is more likely than not that the position will be sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation. A tax position that meets the more likely than not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Interest on tax matters is recognized in interest expense and penalties in other operating expenses. As a multinational corporation, the Company operates in various locations outside the U.S. and generates earnings worldwide. The Company repatriates its foreign earnings that are in excess of regulatory, capital or operational requirements of all of its non-U.S. subsidiaries.
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Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions. Assets and liabilities of non-U.S. subsidiaries for which the local currency is the functional currency are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings.
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Significant Accounting Policies Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of the changes to the previously reported statements of income | The following table presents the effects of the change in the presentation of operating revenues, operating expenses and other income, net to the Company’s previously reported consolidated statements of income:
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Acquisitions (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legg Mason [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allocation of estimated fair values | The initial estimated fair values of the assets acquired and liabilities and noncontrolling interests assumed were as follows:
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Schedule of unaudited pro forma information | The following unaudited pro forma summary presents combined results of operations of the Company as if the Legg Mason acquisition and concurrent divestiture of EnTrust business had occurred on October 1, 2018. The pro forma adjustments include acquisition-related costs, adjustments to intangible amortization expense, and interest expense related to debt assumed. These pro forma results are not indicative of future results of operations that would have been achieved nor are they indicative of future results of operations of the combined entity.
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Benefit Street Partners [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allocation of estimated fair values | The estimated fair values of the assets acquired and liabilities and noncontrolling interests assumed were as follows:
|
Earnings per Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share were as follows:
|
Revenues (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating revenues by geographic area | Operating revenues by geographic area were as follows:
|
Investments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of investments | Investments consisted of the following:
|
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in Level 3 assets and liabilities | Changes in the Level 3 assets and liabilities were as follows:
|
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Schedule of financial instruments not measured at fair value | Financial instruments that were not measured at fair value were as follows:
|
Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of property and equipment | Property and equipment, net consisted of the following:
|
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets, net consisted of the following:
|
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Schedule of changes in carrying value of goodwill | Changes in the carrying value of goodwill were as follows:
|
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Schedule of definite-lived intangible assets | Definite-lived intangible assets were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated remaining amortization expense | Definite-lived intangible assets had a weighted-average remaining useful life of 7.5 years at September 30, 2020, with estimated remaining amortization expense as follows:
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of outstanding debt | Debt consisted of the following:
Debt of CIPs consisted of the following:
|
Consolidated Investment Products (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
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Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities of CIPs measured at fair value on a recurring basis were as follows:
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Schedule of changes in Level 3 assets of CIPs | Changes in Level 3 assets were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt of CIPs | Debt consisted of the following:
Debt of CIPs consisted of the following:
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Schedule of contractual maturities for debt of CIPs | The contractual maturities for debt of CIPs at September 30, 2020 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Redeemable Noncontrolling Interests (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest [Table Text Block] | Changes in redeemable noncontrolling interests were as follows:
|
Nonconsolidated Variable Interest Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, and loans and related interest receivable as follows:
|
Taxes on Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of taxes on income | Taxes on income were as follows:
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Schedule of income before taxes | Income before taxes consisted of the following:
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Components of deferred tax assets and liabilities | The significant components of deferred tax assets and deferred tax liabilities were as follows:
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Components of net deferred tax liability as classified in the consolidated balance sheets | The components of the net deferred tax liability were classified in the consolidated balance sheets as follows:
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Reconciliation of the amount of tax expense at the federal statutory rate and taxes on income | A reconciliation of the amount of tax expense at the federal statutory rate and taxes on income as reflected in the consolidated statements of income is as follows:
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Reconciliation of gross unrecognized tax benefits | A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows:
|
Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of lease expenses | Lease expense was as follows:
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Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows:
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Schedule of maturities of operating lease liabilities | The maturities of the liabilities were as follows:
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Future minimum lease payments under long-term non-cancelable operating leases | As of September 30, 2019, future minimum lease payments under long-term non-cancelable operating leases were as follows:
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Schedule of operating lease income | The maturities of lease payments due to the Company and weighted-average remaining lease term as of September 30, 2020 were as follows:
|
Stock-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock-based compensation expenses | Stock-based compensation expenses were as follows:
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Summary of stock and stock unit award activity | Stock and stock unit award activity was as follows:
|
Segment and Geographic Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of geographic information | The Company has one operating segment, investment management and related services. See Note 5 – Revenues for total operating revenues disaggregated by geographic location.
|
Investment and Other Income (Losses), Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment and other income (losses), net | other income (losses), net consisted of the following:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) by component | Changes in accumulated other comprehensive income (loss) by component were as follows:
|
Significant Accounting Policies - Narrative (Details) |
12 Months Ended |
---|---|
Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |
Number of reporting unit | 1 |
Deferred sales commission amortization period, minimum | 1 year 6 months |
Deferred sales commission amortization period, maximum | 7 years |
Stock-based compensation awards vesting period | 3 years |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful lives | 3 years |
Property and equipment, estimated useful lives | 3 years |
Capitalized Contract Cost, Amortization Period | 5 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful lives | 15 years |
Property and equipment, estimated useful lives | 35 years |
Capitalized Contract Cost, Amortization Period | 10 years |
New Accounting Guidance - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Oct. 01, 2019 |
Sep. 30, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 534.8 | $ 0.0 | |
Operating lease liabilities | 621.0 | $ 0.0 | |
ASU 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 274.5 | ||
Operating lease liabilities | 315.2 | ||
Adjustment to ROU asset upon Adoption of ASC 842 | $ (40.7) | ||
ASU 2016-13 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 6.0 |
Acquisitions - Narrative (Details) - USD ($) $ in Millions |
2 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jul. 31, 2020 |
Feb. 01, 2019 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Acquisition [Line Items] | |||||
Purchase consideration in cash | $ 720.1 | ||||
Debt | $ 3,017.1 | $ 3,017.1 | $ 696.9 | ||
Definite-lived intangible assets weighted-average remaining useful life | 7 years 6 months | ||||
Debt retired | 135.0 | ||||
Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration in cash | $ 4,500.0 | ||||
Business Combination Other Consideration Historical Compensation | 200.0 | ||||
Debt | 2,000.0 | ||||
Definite-lived intangible assets | 1,353.8 | ||||
Unamortized debt premium | 324.4 | ||||
Legg mason, revenue | 475.7 | ||||
Legg mason, net loss | (28.7) | ||||
Benefit Street Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Definite-lived intangible assets | 75.8 | ||||
Business Combination, Acquisition Related Costs | $ 6.8 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 453.2 | ||||
Other Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Definite-lived intangible assets weighted-average remaining useful life | 5 years 10 months 24 days | ||||
Other Intangible Assets [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Definite-lived intangible assets | 1,123.2 | ||||
Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Definite-lived intangible assets weighted-average remaining useful life | 14 years 6 months | ||||
Trade Names [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Definite-lived intangible assets | $ 230.6 | ||||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 3 years | ||||
Minimum [Member] | Other Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 5 years | ||||
Minimum [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 5 years | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 15 years | ||||
Maximum [Member] | Other Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 7 years | ||||
Maximum [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, estimated useful lives | 20 years | ||||
Consolidated Investment Products [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt | $ 1,333.4 | $ 1,333.4 | $ 50.8 | ||
General, administrative and other expense [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition Related Costs | 57.4 | ||||
Compensation and Benefits [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Integration Related Costs | $ 119.6 |
Acquisitions - Allocation of Estimated Fair Values (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Jul. 31, 2020 |
Sep. 30, 2019 |
Feb. 01, 2019 |
Sep. 30, 2018 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 4,500.8 | $ 2,130.3 | $ 1,794.8 | ||
Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 681.1 | ||||
Investments | 471.8 | ||||
Receivables | 525.7 | ||||
Indefinite-lived intangible assets | 2,727.8 | ||||
Definite-lived intangible assets | 1,353.8 | ||||
Goodwill | 2,325.0 | ||||
Deferred tax assets | 148.4 | ||||
Other assets | 530.7 | ||||
Debt | (2,324.4) | ||||
Compensation and benefits | (579.9) | ||||
Deferred tax liabilities | (315.4) | ||||
Other liabilities | (926.4) | ||||
Total Identifiable Net Assets | 4,737.2 | ||||
Benefit Street Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 33.2 | ||||
Investments | 138.8 | ||||
Indefinite-lived intangible assets | 280.1 | ||||
Definite-lived intangible assets | 75.8 | ||||
Goodwill | 345.7 | ||||
Other assets | 35.2 | ||||
Other liabilities | (57.5) | ||||
Total Identifiable Net Assets | 720.1 | ||||
Consolidated Investment Products [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 253.4 | ||||
Investments | 402.9 | ||||
Debt | (330.8) | ||||
Consolidated Investment Products [Member] | Benefit Street Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Investments | 84.9 | ||||
Redeemable Noncontrolling Interest [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Nonredeemable noncontrolling interests | (186.4) | ||||
Nonredeemable Noncontrolling Interest [Member] | Legg Mason [Member] | |||||
Business Acquisition [Line Items] | |||||
Nonredeemable noncontrolling interests | $ (20.1) | ||||
Nonredeemable Noncontrolling Interest [Member] | Benefit Street Partners [Member] | |||||
Business Acquisition [Line Items] | |||||
Nonredeemable noncontrolling interests | $ (216.1) |
Acquisitions - Unaudited Pro Forma Information (Details) - Legg Mason [Member] - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Acquisition [Line Items] | ||
Pro Forma Revenue | $ 7,862.0 | $ 8,436.0 |
Pro Forma Net Income | $ 967.5 | $ 886.6 |
Earnings per Share - Narrative (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Earnings Per Share [Abstract] | |||
Shares of nonparticipating nonvested stock unit awards excluded from the calculation of diluted EPS | 0.5 | 0.2 | 0.3 |
Earnings per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Earnings Per Share Reconciliation [Abstract] | |||
Net income attributable to Franklin Resources, Inc. | $ 798.9 | $ 1,195.7 | $ 764.4 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic | 15.3 | 10.9 | 17.6 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted | 15.3 | 10.9 | 17.6 |
Net Income Available to Common Stockholders - basic | 783.6 | 1,184.8 | 746.8 |
Net Income Available to Common Stockholders - diluted | $ 783.6 | $ 1,184.8 | $ 746.8 |
Weighted-average shares outstanding – basic | 491.9 | 503.6 | 537.4 |
Dilutive effect of nonparticipating nonvested stock unit awards | 0.5 | 0.7 | 0.6 |
Weighted-Average Shares Outstanding – Diluted | 492.4 | 504.3 | 538.0 |
Earnings per Share [Abstract] | |||
Basic | $ 1.59 | $ 2.35 | $ 1.39 |
Diluted | $ 1.59 | $ 2.35 | $ 1.39 |
Revenues - Schedule of Operating Revenues by Geographic Area (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | $ 5,566.5 | $ 5,669.4 | $ 6,204.5 |
Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 3,981.7 | 3,985.2 | 4,367.5 |
Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 1,362.0 | 1,444.6 | 1,599.8 |
Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 195.1 | 216.3 | 221.9 |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 27.7 | 23.3 | 15.3 |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 3,594.8 | 3,396.2 | 3,607.5 |
United States [Member] | Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 2,482.5 | 2,260.6 | 2,309.5 |
United States [Member] | Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 928.8 | 941.3 | 1,108.2 |
United States [Member] | Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 158.6 | 175.7 | 177.2 |
United States [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 24.9 | 18.6 | 12.6 |
Luxembourg [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 1,302.9 | 1,533.5 | 1,731.7 |
Luxembourg [Member] | Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 910.1 | 1,064.7 | 1,213.5 |
Luxembourg [Member] | Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 366.1 | 437.2 | 482.2 |
Luxembourg [Member] | Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 25.5 | 30.1 | 33.7 |
Luxembourg [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 1.2 | 1.5 | 2.3 |
Americas Excluding United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 321.4 | 388.8 | 470.4 |
Americas Excluding United States [Member] | Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 269.2 | 325.4 | 463.8 |
Americas Excluding United States [Member] | Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 51.9 | 63.3 | 6.4 |
Americas Excluding United States [Member] | Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 0.3 | 0.1 | 0.2 |
Americas Excluding United States [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 0.0 | 0.0 | 0.0 |
Asia-Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 240.2 | 254.5 | 297.4 |
Asia-Pacific [Member] | Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 217.6 | 241.8 | 283.3 |
Asia-Pacific [Member] | Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 13.6 | 1.3 | 2.9 |
Asia-Pacific [Member] | Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 8.4 | 10.4 | 10.8 |
Asia-Pacific [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 0.6 | 1.0 | 0.4 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 107.2 | 96.4 | 97.5 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Investment management fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 102.3 | 92.7 | 97.4 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Sales and distribution fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 1.6 | 1.5 | 0.1 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Shareholder servicing fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | 2.3 | 0.0 | 0.0 |
Europe, Middle East and Africa, Excluding Luxembourg [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Earned From Contracts With Customers | $ 1.0 | $ 2.2 | $ 0.0 |
Investments - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Investments [Abstract] | |||
Other-than-temporary impairment | $ 9.7 | $ 10.5 | $ 1.7 |
Investments - Summary of Investments (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Investment Holdings [Line Items] | ||
Life settlement contracts | $ 0.0 | $ 11.5 |
Total investments, at fair value | 504.8 | 589.7 |
Investments in equity method investees | 682.2 | 933.4 |
Other investments | 83.5 | 32.7 |
Total | 1,270.5 | 1,555.8 |
Sponsored funds and separate accounts [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | 303.4 | 533.6 |
Investment related to long-term incentive plans [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | 146.6 | 0.0 |
Other equity and debt securities [Member] | ||
Investment Holdings [Line Items] | ||
Investments, at fair value | $ 54.8 | $ 44.6 |
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Fair Value Disclosures [Abstract] | ||
Unfunded commitments | $ 9.5 | $ 4.7 |
Nonredeemable Private Debt, Equity, Infrastructure and Real Estate Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative Investment | $ 51.2 | $ 46.9 |
Liquidation weighted-average period | 1 year 10 months 24 days | 1 year 3 months 18 days |
Private Debt Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative Investment | $ 40.2 | $ 48.6 |
Redeemable Global Equity Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative Investment | 25.3 | $ 10.1 |
Investment related to long-term incentive plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative Investment | $ 1.1 |
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Assets [Abstract] | ||
Life settlement contracts | $ 0.0 | $ 11.5 |
Sponsored funds and separate accounts [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 303.4 | 533.6 |
Investment related to long-term incentive plans [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 146.6 | 0.0 |
Other equity and debt securities [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 54.8 | 44.6 |
Fair Value, Recurring [Member] | ||
Assets [Abstract] | ||
Contingent consideration asset | 39.7 | |
Life settlement contracts | 11.5 | |
Total Assets Measured at Fair Value | 544.5 | 589.7 |
Liability [Abstract] | ||
Contingent consideration liabilities | 25.3 | |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Contingent consideration asset | 0.0 | |
Life settlement contracts | 0.0 | |
Total Assets Measured at Fair Value | 323.9 | 419.6 |
Liability [Abstract] | ||
Contingent consideration liabilities | 0.0 | |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Contingent consideration asset | 0.0 | |
Life settlement contracts | 0.0 | |
Total Assets Measured at Fair Value | 42.4 | 31.6 |
Liability [Abstract] | ||
Contingent consideration liabilities | 0.0 | |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Contingent consideration asset | 39.7 | |
Life settlement contracts | 11.5 | |
Total Assets Measured at Fair Value | 57.1 | 32.1 |
Liability [Abstract] | ||
Contingent consideration liabilities | 25.3 | |
Fair Value, Recurring [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 121.1 | 106.4 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 303.4 | 533.6 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 176.3 | 417.4 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 40.9 | 26.2 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 17.4 | 20.6 |
Fair Value, Recurring [Member] | Sponsored funds and separate accounts [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 68.8 | 69.4 |
Fair Value, Recurring [Member] | Investment related to long-term incentive plans [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 146.6 | |
Fair Value, Recurring [Member] | Investment related to long-term incentive plans [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 145.5 | |
Fair Value, Recurring [Member] | Investment related to long-term incentive plans [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | |
Fair Value, Recurring [Member] | Investment related to long-term incentive plans [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | |
Fair Value, Recurring [Member] | Investment related to long-term incentive plans [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1.1 | |
Fair Value, Recurring [Member] | Other equity and debt securities [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 54.8 | 44.6 |
Fair Value, Recurring [Member] | Other equity and debt securities [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2.1 | 2.2 |
Fair Value, Recurring [Member] | Other equity and debt securities [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1.5 | 5.4 |
Fair Value, Recurring [Member] | Other equity and debt securities [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | 0.0 |
Fair Value, Recurring [Member] | Other equity and debt securities [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | $ 51.2 | $ 37.0 |
Fair Value Measurements - Schedule of Changes in Level 3 Assets and Liabilities (Details) - Level 3 [Member] - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - liabilities | $ 0.0 | $ (38.7) |
Acquisitions - liabilities | (27.9) | 0.0 |
Purchases - liabilities | 0.0 | 0.0 |
Sales - liabilities | 0.0 | 0.0 |
Settlements - liabilities | 0.6 | 40.7 |
Transfers into Level 3 - liabilities | 0.0 | 0.0 |
Transfers out of level 3 - liability | 0.0 | 0.0 |
Balance at End of Year - liabilities | (25.3) | 0.0 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of year - liability | 0.0 | 0.0 |
Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - assets | 32.1 | 32.6 |
Purchases - assets | 22.6 | 10.7 |
Sales - assets | (19.0) | (6.5) |
Settlements - assets | (8.4) | (4.6) |
Consolidation of investment product | (10.0) | 0.0 |
Transfers into Level 3 - assets | 0.1 | 0.0 |
Transfers out of level 3 - assets | 0.0 | (7.1) |
Balance at End of Year - assets | 17.4 | 32.1 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of year - assets | (1.4) | 3.4 |
Contingent Consideration Asset [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year - assets | 0.0 | |
Acquisition - asset | 39.7 | |
Purchases - assets | 0.0 | |
Sales - assets | 0.0 | |
Settlements - assets | 0.0 | |
Transfers into Level 3 - assets | 0.0 | |
Transfers out of level 3 - assets | 0.0 | |
Balance at End of Year - assets | 39.7 | 0.0 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of year - assets | 0.0 | |
Investment and other income (losses), net [Member] | Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | 0.0 | 0.0 |
Investment and other income (losses), net [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | 0.0 | 7.0 |
Investment and other income (losses), net [Member] | Contingent Consideration Asset [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | 0.0 | |
General, administrative and other expense [Member] | Contingent Consideration Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - liabilities | 2.0 | (2.0) |
General, administrative and other expense [Member] | Investments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | 0.0 | $ 0.0 |
General, administrative and other expense [Member] | Contingent Consideration Asset [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total realized and unrealized gains (losses) - assets | $ 0.0 |
Fair Value Measurements - Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|---|---|
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 3,957.5 | $ 5,957.6 | $ 6,910.6 | $ 8,749.7 |
Other investments | 83.5 | 32.7 | ||
Loans receivable | 42.4 | |||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 3,026.8 | 5,803.4 | ||
Time deposits | 19.2 | 15.4 | ||
Loans receivable | 42.4 | 0.0 | ||
Financial Liability [Abstract] | ||||
Debt | 3,017.1 | 696.9 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 3,026.8 | 5,803.4 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ||||
Financial Assets [Abstract] | ||||
Time deposits | 19.2 | 15.4 | ||
Financial Liability [Abstract] | ||||
Debt | 3,086.5 | 718.7 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ||||
Financial Assets [Abstract] | ||||
Loans receivable | 42.4 | 0.0 | ||
Equity securities [Member] | Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Other investments | 64.3 | 17.3 | ||
Equity securities [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||||
Financial Assets [Abstract] | ||||
Other investments | $ 67.3 | $ 19.2 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation and amortization | $ 95.2 | $ 83.2 | $ 78.9 |
Equipment impairment | $ 0.0 | $ 0.0 | $ 6.6 |
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Total cost | $ 1,910.6 | $ 1,716.0 |
Less: accumulated depreciation and amortization | (1,096.8) | (1,032.3) |
Property and Equipment, Net | $ 813.8 | 683.7 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 35 years | |
Buildings and leasehold improvements [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Total cost | $ 877.4 | 789.2 |
Buildings and leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Buildings and leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 35 years | |
Software [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Total cost | $ 576.2 | 522.4 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Equipment and Furniture [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Total cost | $ 374.0 | 324.3 |
Equipment and Furniture [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment and Furniture [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Land [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Total cost | $ 83.0 | $ 80.1 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of goodwill | $ (23.7) | $ 0.0 | |
Impairment of indefinite-lived intangible assets | $ 30.0 | 9.3 | |
Definite-lived intangible assets weighted-average remaining useful life | 7 years 6 months | ||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of definite-lived intangible assets | $ 1.7 | $ 4.0 | $ 5.7 |
Management contracts [Member] | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Definite-lived intangible assets weighted-average remaining useful life | 5 years 10 months 24 days |
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 4,500.8 | $ 2,130.3 | $ 1,794.8 |
Indefinite-lived intangible assets | 3,500.8 | 799.4 | |
Definite-lived intangible assets, net | 1,413.4 | 64.8 | |
Goodwill and Other Intangible Assets, Net | $ 9,415.0 | $ 2,994.5 |
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of year | $ 2,130.3 | $ 1,794.8 |
Acquisitions | 2,389.1 | 345.7 |
Impairment | 23.7 | 0.0 |
Foreign exchange revaluation | 5.1 | (10.2) |
Balance at End of Year | $ 4,500.8 | $ 2,130.3 |
Goodwill and Other Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,528.2 | $ 125.4 |
Accumulated Amortization | (114.8) | (60.6) |
Total | 1,413.4 | 64.8 |
Management contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,283.2 | 125.4 |
Accumulated Amortization | (109.6) | (60.6) |
Total | 1,173.6 | 64.8 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 230.6 | 0.0 |
Accumulated Amortization | (4.0) | 0.0 |
Total | 226.6 | 0.0 |
Developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 14.4 | 0.0 |
Accumulated Amortization | (1.2) | 0.0 |
Total | $ 13.2 | $ 0.0 |
Goodwill and Other Intangible Assets - Schedule of Estimated Remaining Amortization Expense (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2021 | $ 231.4 | |
2022 | 231.4 | |
2023 | 231.4 | |
2024 | 224.5 | |
2025 | 212.4 | |
Thereafter | 282.3 | |
Total | $ 1,413.4 | $ 64.8 |
Debt - Narrative (Details) - USD ($) $ in Millions |
Oct. 19, 2020 |
Sep. 30, 2020 |
---|---|---|
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Commercial paper available for issuance under an uncommitted private placement program | $ 500.0 | |
Franklin Resources, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Face value of unsecured and unsubordinated notes | 700.0 | |
Legg Mason [Member] | ||
Debt Instrument [Line Items] | ||
Face value of unsecured and unsubordinated notes | $ 2,000.0 | |
Subsequent Event [Member] | Notes Due October 2030 [Domain] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.60% |
Debt - Outstanding Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Loan due December 2019 | $ 0.0 | $ 0.2 |
Effective Interest Rate | 9.30% | |
Debt issuance costs | (2.1) | $ (2.7) |
Total | 3,017.1 | 696.9 |
Notes Due September 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 300.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | |
Senior notes | $ 299.8 | |
Effective Interest Rate | 2.93% | 2.93% |
Notes Due March 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 400.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.85% | |
Senior notes | $ 399.6 | |
Effective Interest Rate | 2.97% | 2.97% |
Notes Due July 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 250.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |
Notes Due March 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 450.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Notes Due January 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 550.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
Notes Due September 2056 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 250.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.375% | |
Notes Due September 2056 [Member] | ||
Debt Instrument [Line Items] | ||
Face value of senior notes | $ 500.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.45% | |
Franklin Resources, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 699.5 | $ 699.4 |
Franklin Resources, Inc. [Member] | Notes Due September 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 299.8 | |
Franklin Resources, Inc. [Member] | Notes Due March 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | 399.7 | |
Legg Mason [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,319.7 | 0.0 |
Legg Mason [Member] | Notes Due July 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 272.4 | 0.0 |
Effective Interest Rate | 1.53% | |
Legg Mason [Member] | Notes Due March 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 523.0 | 0.0 |
Effective Interest Rate | 1.80% | |
Legg Mason [Member] | Notes Due January 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 747.5 | 0.0 |
Effective Interest Rate | 3.38% | |
Legg Mason [Member] | Notes Due September 2056 [Member] | ||
Debt Instrument [Line Items] | ||
Junior Subordinated Notes | $ 260.7 | 0.0 |
Effective Interest Rate | 6.08% | |
Legg Mason [Member] | Notes Due September 2056 [Member] | ||
Debt Instrument [Line Items] | ||
Junior Subordinated Notes | $ 516.1 | $ 0.0 |
Effective Interest Rate | 5.25% |
Consolidated Investment Products - Narrative (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
CIPs
|
Sep. 30, 2019
USD ($)
CIPs
|
|
Consolidated Investment Products [Abstract] | ||
Number of consolidated investment products | CIPs | 72 | 60 |
Number Of CLOs | 4 | 0 |
Schedule Of Consolidated Investment Products [Line Items] | ||
CIPs' unfunded commitments | $ 9.5 | $ 4.7 |
Debt, unpaid principal balance | $ 3,017.1 | $ 696.9 |
Nonredeemable Real Estate and Private Equity Funds [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Liquidation weighted-average period | 1 year 10 months 24 days | 1 year 3 months 18 days |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
CIPs' unfunded commitments | $ 94.0 | $ 168.7 |
Unfunded commitments Company contractually obligated to fund | 11.4 | 20.6 |
Debt, unpaid principal balance | $ 1,333.4 | $ 50.8 |
CIPs [Member] | Nonredeemable Real Estate and Private Equity Funds [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Liquidation weighted-average period | 4 years 2 months 12 days | 4 years 4 months 24 days |
CIPs [Member] | Minimum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 2.08% |
CIPs [Member] | Maximum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.81% | 7.94% |
Collateralized Loan Obligations [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments Ninety Or More Days Past Due | $ 3.9 | |
Net losses related to its own economic interests | 1.3 | |
Debt, unpaid principal balance | 1,235.8 | |
Collateralized Loan Obligations [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt, unpaid principal balance | $ 1,179.7 | $ 0.0 |
Collateralized Loan Obligations [Member] | CIPs [Member] | Minimum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.48% | |
Collateralized Loan Obligations [Member] | CIPs [Member] | Maximum [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.19% |
Consolidated Investment Products - Schedule of Balances of CIPs (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|---|---|
Assets [Abstract] | ||||
Cash and cash equivalents | $ 3,957.5 | $ 5,957.6 | $ 6,910.6 | $ 8,749.7 |
Receivables | 1,114.8 | 740.0 | ||
Investments, at fair value | 504.8 | 589.7 | ||
Total Assets | 20,220.9 | 14,532.2 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 283.7 | 222.9 | ||
Debt | 3,017.1 | 696.9 | ||
Other liabilities | 456.1 | 270.6 | ||
Total liabilities | 8,705.2 | 3,161.3 | ||
Redeemable Noncontrolling Interests | 541.9 | 746.7 | ||
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 10,114.5 | 9,906.5 | ||
Nonredeemable noncontrolling interests | 859.3 | 717.7 | ||
Total stockholders’ equity | 10,973.8 | 10,624.2 | $ 10,207.9 | $ 12,935.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 20,220.9 | 14,532.2 | ||
CIPs [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 930.7 | 154.2 | ||
Receivables | 85.8 | 99.0 | ||
Investments, at fair value | 2,709.2 | 2,303.9 | ||
Total Assets | 3,725.7 | 2,557.1 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 510.1 | 81.5 | ||
Debt | 1,333.4 | 50.8 | ||
Other liabilities | 12.1 | 0.0 | ||
Total liabilities | 1,855.6 | 132.3 | ||
Redeemable Noncontrolling Interests | 397.3 | 746.7 | ||
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 788.4 | 1,129.6 | ||
Nonredeemable noncontrolling interests | 684.4 | 548.5 | ||
Total stockholders’ equity | 1,472.8 | 1,678.1 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 3,725.7 | $ 2,557.1 |
Consolidated Investment Products - Schedule of Balances of Assets and Liabilities of CIPs Measured at Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Assets [Abstract] | ||
Investments, at fair value | $ 504.8 | $ 589.7 |
CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2,709.2 | 2,303.9 |
Fair Value, Recurring [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 544.5 | 589.7 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 323.9 | 419.6 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 42.4 | 31.6 |
Fair Value, Recurring [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 57.1 | 32.1 |
Fair Value, Recurring [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 121.1 | 106.4 |
Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 3,219.2 | 2,303.9 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 666.4 | 195.2 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 1,457.9 | 1,307.5 |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 833.8 | 597.1 |
Fair Value, Recurring [Member] | CIPs [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 261.1 | 204.1 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,194.1 | 2,134.6 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 177.6 | 195.2 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 285.7 | 1,307.5 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 469.7 | 427.8 |
Equity and debt securities [Member] | Fair Value, Recurring [Member] | CIPs [Member] | NAV as a Practical Expedient [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 261.1 | 204.1 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,175.9 | 16.6 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | 0.0 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,151.0 | 0.0 |
Loans [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 24.9 | 16.6 |
Real estate [Member] | Fair Value, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 339.2 | 152.7 |
Real estate [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | 0.0 |
Real estate [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 0.0 | 0.0 |
Real estate [Member] | Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 339.2 | $ 152.7 |
Collateralized Loan Obligations [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 1,151.0 | |
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 488.8 | |
Receivables, fair value disclosure | 21.2 | |
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 488.8 | |
Receivables, fair value disclosure | 0.0 | |
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0.0 | |
Receivables, fair value disclosure | 21.2 | |
Collateralized Loan Obligations [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 0.0 | |
Receivables, fair value disclosure | $ 0.0 |
Consolidated Investment Products - Schedule of Changes in Level 3 Assets of CIPs (Details) - CIPs [Member] - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Schedule Of Consolidated Investment Products [Line Items] | ||
Transfers into Level 3 - assets | $ 0.5 | |
Transfers out of level 3 - assets | (29.0) | |
Level 3 [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | $ 597.1 | 350.0 |
Acquisition | 37.9 | 84.9 |
Realized and unrealized gains (losses) included in investment and other income of consolidated investment products, net | (64.9) | (4.2) |
Purchases | 355.4 | 323.7 |
Sales and settlements | (64.9) | (123.2) |
Deconsolidations | (47.8) | |
Transfers into Level 3 - assets | 2.2 | 0.5 |
Transfers out of level 3 - assets | (1.1) | (29.0) |
Foreign exchange revaluation | 19.9 | (5.6) |
Balance at End of Year - assets | 833.8 | 597.1 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | (63.8) | (7.6) |
Level 3 [Member] | Equity and debt securities [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | 427.8 | 317.7 |
Acquisition | 0.0 | 84.9 |
Realized and unrealized gains (losses) included in investment and other income of consolidated investment products, net | (57.9) | (5.9) |
Purchases | 200.5 | 167.5 |
Sales and settlements | (57.4) | (101.6) |
Deconsolidations | (47.8) | |
Transfers into Level 3 - assets | 2.2 | 0.5 |
Transfers out of level 3 - assets | (1.1) | (29.0) |
Foreign exchange revaluation | 3.4 | (6.3) |
Balance at End of Year - assets | 469.7 | 427.8 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | (57.9) | (12.0) |
Level 3 [Member] | Real estate [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | 152.7 | 0.0 |
Acquisition | 20.3 | 0.0 |
Realized and unrealized gains (losses) included in investment and other income of consolidated investment products, net | (5.2) | 5.0 |
Purchases | 154.9 | 147.0 |
Sales and settlements | 0.0 | 0.0 |
Deconsolidations | 0.0 | |
Transfers into Level 3 - assets | 0.0 | 0.0 |
Transfers out of level 3 - assets | 0.0 | 0.0 |
Foreign exchange revaluation | 16.5 | 0.7 |
Balance at End of Year - assets | 339.2 | 152.7 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | (5.2) | 5.0 |
Level 3 [Member] | Loans [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Balance at beginning of year - assets | 16.6 | 32.3 |
Acquisition | 17.6 | 0.0 |
Realized and unrealized gains (losses) included in investment and other income of consolidated investment products, net | (1.8) | (3.3) |
Purchases | 0.0 | 9.2 |
Sales and settlements | (7.5) | (21.6) |
Deconsolidations | 0.0 | |
Transfers into Level 3 - assets | 0.0 | 0.0 |
Transfers out of level 3 - assets | 0.0 | 0.0 |
Foreign exchange revaluation | 0.0 | 0.0 |
Balance at End of Year - assets | 24.9 | 16.6 |
Change in unrealized gains (losses) included in net income relating to assets held at end of year | $ (0.7) | $ (0.6) |
Consolidated Investment Products - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) $ in Millions |
Sep. 30, 2020
USD ($)
$ / shares
|
Sep. 30, 2019
USD ($)
$ / shares
|
||
---|---|---|---|---|
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 504.8 | $ 589.7 | ||
CIPs [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | 2,709.2 | 2,303.9 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Equity and debt securities [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | 1,194.1 | 2,134.6 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Real estate [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | 339.2 | 152.7 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | 469.7 | 427.8 | ||
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] | ||||
Investments, at fair value | $ 108.5 | $ 192.8 | ||
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 | 7.0 | 4.5 | ||
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 | 19.1 | 21.9 | ||
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 | [1] | 10.8 | 10.8 | |
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 | 0.200 | 0.150 | ||
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 | 0.252 | 0.300 | ||
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 | [1] | 0.219 | 0.231 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Risk premium [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.550 | 0.189 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Revenue multiple [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 7.5 | 3.7 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Price-to-earnings ratio [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 9.4 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Price-to-earnings ratio [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 10.0 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market comparable companies [Member] | Price-to-earnings ratio [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 9.7 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 244.9 | $ 212.7 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount for lack of marketability [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.170 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount for lack of marketability [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.247 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount for lack of marketability [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.170 | 0.200 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Risk premium [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.097 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Risk premium [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.193 | |||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Risk premium [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.167 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.040 | 0.048 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.230 | 0.174 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.115 | 0.100 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Equity and debt securities [Member] | Market pricing [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 116.3 | $ 22.3 | ||
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 | 0.02 | 0.25 | ||
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 | 100.00 | 20.13 | ||
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] | 13.01 | 2.06 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 339.2 | $ 152.7 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Valuation, Income Approach [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 231.8 | $ 84.7 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.045 | 0.064 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.065 | 0.074 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Valuation, Income Approach [Member] | Discount rate [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.052 | 0.071 | |
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Valuation, Income Approach [Member] | Exit Capitalization Rate [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.060 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Yield Capitalization Valuation Technique [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, at fair value | $ 107.4 | $ 68.0 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Yield Capitalization Valuation Technique [Member] | Equivalent yield [Member] | Minimum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.043 | 0.043 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Yield Capitalization Valuation Technique [Member] | Equivalent yield [Member] | Maximum [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | 0.061 | 0.061 | ||
Fair Value, Recurring [Member] | CIPs [Member] | Level 3 [Member] | Real estate [Member] | Yield Capitalization Valuation Technique [Member] | Equivalent yield [Member] | Weighted Average [Member] | ||||
Schedule Of Consolidated Investment Products [Line Items] | ||||
Investments, measurement input | [1] | 0.052 | 0.054 | |
|
Consolidated Investment Products - Schedule of Financial Instruments of CIPs not Measured at Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|---|---|
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 3,957.5 | $ 5,957.6 | $ 6,910.6 | $ 8,749.7 |
Financial Liability [Abstract] | ||||
Debt | 3,017.1 | 696.9 | ||
CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 930.7 | 154.2 | ||
Financial Liability [Abstract] | ||||
Debt | 1,333.4 | 50.8 | ||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 3,026.8 | 5,803.4 | ||
Carrying Value [Member] | CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 441.9 | 154.2 | ||
Financial Liability [Abstract] | ||||
Debt | 153.7 | 50.8 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 3,026.8 | 5,803.4 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 441.9 | 154.2 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 3 [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | 155.2 | 51.0 | ||
Collateralized Loan Obligations [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | 1,235.8 | |||
Collateralized Loan Obligations [Member] | CIPs [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | 1,179.7 | 0.0 | ||
Collateralized Loan Obligations [Member] | Carrying Value [Member] | CIPs [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | 1,179.7 | 0.0 | ||
Collateralized Loan Obligations [Member] | Estimated Fair Value [Member] | CIPs [Member] | Level 2 [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | $ 1,225.0 | $ 0.0 |
Consolidated Investment Products Consolidated Investment Products - Schedule of Debt of CIPs (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 3,017.1 | $ 696.9 |
Effective Interest Rate | 9.30% | |
Consolidated Investment Products [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | 1,333.4 | $ 50.8 |
Other debt | $ 153.7 | $ 50.8 |
Effective Interest Rate | 2.97% | 5.09% |
Collateralized Loan Obligations [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 1,235.8 | |
Collateralized Loan Obligations [Member] | Consolidated Investment Products [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Debt | $ 1,179.7 | $ 0.0 |
Effective Interest Rate | 2.85% |
Consolidated Investment Products Consolidated Investment Products - Schedule of Contractual Maturities for Debt of CIPs (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Schedule Of Consolidated Investment Products [Line Items] | ||
Total | $ 3,017.1 | $ 696.9 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
2021 | 76.4 | |
2022 | 0.0 | |
2023 | 0.0 | |
2024 | 35.1 | |
2025 | 39.3 | |
Thereafter | 1,182.6 | |
Total | $ 1,333.4 |
Consolidated Investment Products Consolidated Investment Products - Schedule of Unpaid Principal Balance and Fair Value of Investments and Debt of CLOs (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Schedule Of Consolidated Investment Products [Line Items] | ||
Unpaid principal balance | $ 1,270.5 | $ 1,555.8 |
Investments, at fair value | 504.8 | $ 589.7 |
Collateralized Loan Obligations [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Unpaid principal balance | 1,196.5 | |
Difference between unpaid principal balance and fair value | (45.5) | |
Investments, at fair value | $ 1,151.0 |
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|||||
Noncontrolling Interest [Line Items] | |||||||
Balance at beginning of year | $ 746.7 | ||||||
Acquisitions | 39.1 | $ 216.1 | |||||
Business divestiture | 16.7 | $ 5.2 | |||||
Net income (loss) | 48.6 | 6.2 | (12.8) | ||||
Net subscriptions (distributions) and other | 186.4 | 165.0 | (6.0) | ||||
Net deconsolidations | (6.8) | 24.3 | 2.4 | ||||
Balance at End of Year | 541.9 | 746.7 | |||||
Minority Interests [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Balance at beginning of year | 0.0 | ||||||
Acquisitions | 164.3 | ||||||
Business divestiture | (21.3) | ||||||
Net income (loss) | 3.6 | ||||||
Net subscriptions (distributions) and other | (2.0) | ||||||
Net deconsolidations | 0.0 | ||||||
Balance at End of Year | 144.6 | 0.0 | |||||
Redeemable Noncontrolling Interest [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Balance at beginning of year | [1] | 746.7 | 1,043.6 | 1,941.9 | |||
Acquisitions | 186.4 | 0.0 | [1] | 0.0 | [1] | ||
Business divestiture | (21.3) | 0.0 | [1] | 0.0 | [1] | ||
Net income (loss) | 48.6 | 6.2 | [1] | (12.8) | [1] | ||
Net subscriptions (distributions) and other | 245.1 | 1,046.6 | [1] | 170.9 | [1] | ||
Net deconsolidations | (663.6) | (1,349.7) | [1] | (1,056.4) | [1] | ||
Balance at End of Year | 541.9 | 746.7 | [1] | $ 1,043.6 | [1] | ||
Consolidated Investment Products [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Balance at beginning of year | 746.7 | ||||||
Acquisitions | 22.1 | ||||||
Business divestiture | 0.0 | ||||||
Net income (loss) | 45.0 | ||||||
Net subscriptions (distributions) and other | 247.1 | ||||||
Net deconsolidations | (663.6) | ||||||
Balance at End of Year | $ 397.3 | $ 746.7 | |||||
|
Nonconsolidated Variable Interest Entities - Narrative (Details) $ in Millions, ₨ in Billions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
INR (₨)
|
Sep. 30, 2018
USD ($)
Funds
|
|
Variable Interest Entity [Line Items] | |||
Authorized loan | $ 66.2 | ₨ 5.0 | |
Fixed interest rate on loan | 8.00% | ||
Loans receivable | $ 42.4 | ||
Loan remaining authorization | $ 4.9 | ||
Nonconsolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Number Of Sponsored Funds | Funds | 2 | ||
Equity and debt securities [Member] | Nonconsolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Financial or Other Support, Amount | $ 32.6 |
Nonconsolidated Variable Interest Entities (Details) - Nonconsolidated VIEs [Member] - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 649.6 | $ 607.6 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 439.2 | 458.1 |
Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 168.0 | 149.5 |
Loans Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 42.4 | $ 0.0 |
Taxes on Income - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax Examination [Line Items] | |||
Net tax benefit | $ 87.6 | ||
Federal statutory rate | 21.00% | 21.00% | 24.50% |
Net operating loss and state credit carry-forwards | $ 317.0 | $ 31.9 | |
Foreign tax credit carry-forwards | 103.0 | 0.0 | |
Impact of reduced rates on income tax expense | $ 2.7 | $ 4.1 | $ 31.3 |
Impact of reduced rates on income tax expense, per diluted share | $ 0.01 | $ 0.01 | $ 0.06 |
Increase (decrease) in valuation allowance | $ 293.7 | $ (0.6) | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 303.1 | ||
Accrued interest on uncertain tax positions | 21.7 | 11.9 | |
Accrued penalties on uncertain tax positions | 2.9 | ||
Estimated decrease in unrecognized tax benefits within the next twelve months | 35.4 | ||
Domestic Tax Authority [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss and state credit carry-forwards | 9.3 | ||
Foreign Tax Authority [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss and state credit carry-forwards | 107.3 | ||
State [Member] | |||
Income Tax Examination [Line Items] | |||
Net operating loss and state credit carry-forwards | 199.4 | ||
Tax Cuts and Jobs Act [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease in deferred tax assets | $ 35.6 | ||
Decrease in deferred tax liabilities | 88.9 | ||
Net tax benefit | 0.0 | 0.0 | 53.3 |
Estimated transition tax expense (benefit) | 0.0 | $ (86.0) | (983.2) |
Tax Cuts and Jobs Act [Member] | Domestic Tax Authority [Member] | |||
Income Tax Examination [Line Items] | |||
Estimated transition tax expense (benefit) | $ (757.2) | ||
Next Four Years [Member] | |||
Income Tax Examination [Line Items] | |||
Federal portion of the transition tax liability, payment percentage | 8.00% | ||
Year Five [Member] | |||
Income Tax Examination [Line Items] | |||
Federal portion of the transition tax liability, payment percentage | 15.00% | ||
Year Six [Member] | |||
Income Tax Examination [Line Items] | |||
Federal portion of the transition tax liability, payment percentage | 20.00% | ||
Year Seven [Member] | |||
Income Tax Examination [Line Items] | |||
Federal portion of the transition tax liability, payment percentage | 25.00% | ||
ASU 2018-02 [Member] | |||
Income Tax Examination [Line Items] | |||
Adoption of new accounting guidance | 0.1 | ||
ASU 2018-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | |||
Income Tax Examination [Line Items] | |||
Adoption of new accounting guidance | $ (0.1) |
Taxes on Income - Narrative - Valuation Allowance (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 320.6 | $ 26.9 |
Capital loss [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 35.0 | |
Domestic, State and Foreign Jurisdiction [Member] | Operating loss carryforward [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 202.2 | |
Foreign Tax Authority [Member] | Tax credit carryforward [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 45.0 | |
Foreign Tax Authority [Member] | Other tax carryforward [Member] | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 38.4 |
Taxes on Income - Schedule of Taxes on Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Current expense [Abstract] | |||
Federal | $ 154.9 | $ 343.4 | $ 1,343.7 |
State | 28.8 | 37.0 | 38.0 |
Non-U.S. | 54.2 | 66.8 | 141.1 |
Deferred benefit | (7.1) | (4.9) | (50.3) |
Total | $ 230.8 | $ 442.3 | $ 1,472.5 |
Taxes on Income - Schedule of Income Before Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Income Tax Disclosure [Abstract] | |||
U.S. | $ 771.7 | $ 1,151.1 | $ 1,458.1 |
Non-U.S. | 246.2 | 496.7 | 757.1 |
Total | $ 1,017.9 | $ 1,647.8 | $ 2,215.2 |
Taxes on Income - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Deferred Tax Assets [Abstract] | ||
Capitalized mixed service costs | $ 326.1 | $ 0.0 |
Net operating loss and state credit carry-forwards | 317.0 | 31.9 |
Deferred compensation and benefits | 160.6 | 39.7 |
Foreign tax credit carry-forwards | 103.0 | 0.0 |
Debt premium | 81.9 | 0.0 |
Stock-based compensation | 26.6 | 19.6 |
Unrealized foreign exchange losses | 1.2 | 11.0 |
Other | 120.9 | 30.4 |
Total deferred tax assets | 1,137.3 | 132.6 |
Valuation allowance | (320.6) | (26.9) |
Deferred tax assets, net of valuation allowance | 816.7 | 105.7 |
Deferred Tax Liabilities [Abstract] | ||
Goodwill and other purchased intangibles | 1,009.4 | 159.5 |
Depreciation on property and equipment | 23.6 | 22.5 |
Other | 44.9 | 23.0 |
Total deferred tax liabilities | 1,077.9 | 205.0 |
Net Deferred Tax Liability | $ 261.2 | $ 99.3 |
Taxes on Income - Components of Net Deferred Tax Liability as Classified in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Other assets | $ 44.1 | $ 20.8 |
Deferred tax liabilities | 305.3 | 120.1 |
Net Deferred Tax Liability | $ 261.2 | $ 99.3 |
Taxes on Income - Reconciliation of the Amount of Tax Expense at the Federal Statutory Rate and Taxes on Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal taxes at statutory rate | $ 213.8 | $ 346.0 | $ 542.7 |
Federal statutory rate | 21.00% | 21.00% | 24.50% |
State taxes, net of federal tax effect | $ 28.2 | $ 29.7 | $ 16.6 |
State taxes, net of federal tax effect rate | 2.80% | 1.80% | 0.70% |
Capital loss on Investment, net of valuation allowance | $ (27.0) | $ 0.0 | $ 0.0 |
Capital loss on investment, net of valuation allowance rate | (2.70%) | 0.00% | 0.00% |
Effect of non-U.S. operations | $ 6.9 | $ (21.3) | $ (61.9) |
Effect of non-U.S. operation rate | 0.70% | (1.30%) | (2.80%) |
Effect of net loss (income) attributable to noncontrolling interests | $ 2.5 | $ (2.1) | $ 5.3 |
Effect of net income attributable to noncontrolling interest rate | 0.20% | (0.10%) | 0.20% |
Other | $ 6.4 | $ 3.6 | $ 1.0 |
Other rate | 0.70% | 0.20% | 0.10% |
Tax Provision | $ 230.8 | $ 442.3 | $ 1,472.5 |
Effective Tax Rate | 22.70% | 26.80% | 66.50% |
Tax Cuts and Jobs Act [Member] | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Transition tax on deemed repatriation of undistributed foreign earnings | $ 0.0 | $ 86.0 | $ 983.2 |
Transition tax on deemed repatriation of undistributed foreign earnings rate | 0.00% | 5.20% | 44.40% |
Revaluation of net deferred tax liabilities | $ 0.0 | $ 0.0 | $ (53.3) |
Revaluation of net deferred tax liabilities rate | 0.00% | 0.00% | (2.40%) |
Other | $ 0.0 | $ 0.4 | $ 38.9 |
Other rate | 0.00% | 0.00% | 1.80% |
Taxes on Income - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 202.6 | $ 77.5 | $ 81.1 |
Additions from business combinations | 141.8 | 0.0 | 0.0 |
Additions for tax positions of prior years | 0.9 | 131.8 | 3.6 |
Reductions for tax positions of prior years | (0.6) | (2.9) | (6.6) |
Tax positions related to the current year | 12.2 | 10.7 | 11.6 |
Settlements with taxing authorities | (0.3) | (2.2) | 0.0 |
Expirations of statute of limitations | (13.7) | (12.3) | (12.2) |
Balance at End of Year | $ 342.9 | $ 202.6 | $ 77.5 |
Leases - Narrative (Details) |
Sep. 30, 2020 |
---|---|
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% |
Leases Leases - Lease Expenses (Details) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
| ||||
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 72.5 | [1] | ||
Finance lease cost | 0.5 | |||
Variable lease cost | 6.0 | |||
Sublease income | (4.2) | |||
Total lease expense | $ 74.8 | |||
|
Leases Leases - Cash Flow Supplemental Disclosure (Details) $ in Millions |
12 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Supplemental Cash Flow Information [Abstract] | |
Operating cash flows from operating leases included in the measurement of operating lease liabilities | $ 65.1 |
ROU assets obtained in exchange for new/modified operating lease liabilities | $ 13.7 |
Leases Leases - Operating Lease Liability Maturities (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Leases [Abstract] | ||
2021 | $ 134.8 | |
2022 | 131.5 | |
2023 | 125.4 | |
2024 | 89.0 | |
2025 | 50.2 | |
Thereafter | 153.5 | |
Total lease payments | 684.4 | |
Less: interest | (63.4) | |
Operating lease liabilities | $ 621.0 | $ 0.0 |
Leases Leases - Future Minimum Lease Payments (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 | $ 49.5 |
2021 | 45.3 |
2022 | 40.9 |
2023 | 39.1 |
2024 | 36.7 |
Thereafter | 149.1 |
Total Minimum Lease Payments | $ 360.6 |
Leases Leases - Lessor Operating Lease Payments (Details) $ in Millions |
12 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Subleases [Member] | |
Lessor, Lease, Description [Line Items] | |
2021 | $ 19.0 |
2022 | 19.2 |
2023 | 18.7 |
2024 | 8.5 |
2025 | 0.2 |
Thereafter | 0.1 |
Total Leases | $ 65.7 |
Weighted-average remaining lease term | 3 years 4 months 24 days |
Leases [Member] | |
Lessor, Lease, Description [Line Items] | |
2021 | $ 31.2 |
2022 | 28.0 |
2023 | 28.8 |
2024 | 29.8 |
2025 | 29.9 |
Thereafter | 70.7 |
Total Leases | $ 218.4 |
Weighted-average remaining lease term | 7 years 2 months 12 days |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Apr. 24, 2020 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Assets under Management | $ 3,400.0 | |
Committed capital contributions | $ 335.6 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to nonvested stock and stock unit awards | $ 338.2 | ||
Remaining weighted-average vesting period | 3 years 1 month 6 days | ||
Weighted-average grant-date fair values of stock awards and stock unit awards granted | $ 23.05 | $ 30.75 | $ 42.63 |
Fair value of stock awards and stock unit awards vested | $ 72.2 | $ 84.2 | $ 91.5 |
Total shares issued under ESIP | 1.0 | ||
Shares reserved for future issuance under ESIP | 5.9 | ||
Universal Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance under the USIP | 120.0 | ||
Number of shares available for grant under USIP | 4.5 | ||
Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance under the USIP | 23.0 | ||
Number of shares available for grant under USIP | 18.3 |
Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | $ 122.3 | $ 111.5 | $ 117.8 |
Employee stock investment plan [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | 5.2 | 5.8 | 6.2 |
Stock and stock unit awards [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | $ 117.1 | $ 105.7 | $ 111.6 |
Stock-Based Compensation - Summary of Stock and Stock Unit Award Activity (Details) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2019 | 5,632 | ||
Granted | 15,431 | ||
Vested | (3,172) | ||
Forfeited/canceled | (942) | ||
Nonvested balance at September 30, 2020 | 16,949 | 5,632 | |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ 34.06 | ||
Weighted Average Grant Date Fair Value of shares granted | 23.05 | $ 30.75 | $ 42.63 |
Weighted Average Grant Date Fair Value of shares vested | 32.89 | ||
Weighted Average Grant Date Fair Value of shares forfeited/canceled | 33.26 | ||
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ 24.30 | $ 34.06 | |
Time-Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2019 | 3,778 | ||
Granted | 11,540 | ||
Vested | (2,798) | ||
Forfeited/canceled | (379) | ||
Nonvested balance at September 30, 2020 | 12,141 | 3,778 | |
Performance-Based Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested balance at September 30, 2019 | 1,854 | ||
Granted | 3,891 | ||
Vested | (374) | ||
Forfeited/canceled | (563) | ||
Nonvested balance at September 30, 2020 | 4,808 | 1,854 |
Defined Contribution Plans - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Retirement Benefits [Abstract] | |||
Participants annual maximum contribution to defined contribution plan, pre-tax | 50.00% | ||
Percentage of annual bonus eligible for defined contribution to plan | 100.00% | ||
Loss Contingencies [Line Items] | |||
Plan's employer matching contribution | 75.00% | ||
Expenses recognized for defined contribution plans | $ 59.2 | $ 52.2 | $ 49.8 |
Other Plan Changes [Member] | |||
Loss Contingencies [Line Items] | |||
Plan's employer matching contribution | 85.00% |
Segment and Geographic Information - Narrative (Details) |
12 Months Ended |
---|---|
Sep. 30, 2020
segments
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic Information - Schedule of Operating Revenues, Property and Equipment by Geographic Areas (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 30, 2019 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and Equipment, Net | $ 813.8 | $ 683.7 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and Equipment, Net | 634.4 | 542.8 |
Europe, Middle East and Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and Equipment, Net | 133.0 | 90.0 |
Asia-Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and Equipment, Net | 37.7 | 40.7 |
Americas excluding United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and Equipment, Net | $ 8.7 | $ 10.2 |
Investment and Other Income (Losses), Net - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Other Income and Expenses [Abstract] | |||
Proceeds from the sale of available-for-sale securities | $ 1.6 | $ 85.5 | |
Net losses recognized on equity securities measured at fair value and trading debt securities | $ (2.6) | $ (0.1) | |
Net loss recognized on trading investment securities | $ (1.7) |
Investment and Other Income (Losses), Net - Schedule of Investment and Other Income (Losses), Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Other Income and Expenses [Abstract] | |||
Dividend income | $ 48.9 | $ 97.0 | $ 51.1 |
Interest income | 14.3 | 31.0 | 76.5 |
Gains (losses) on investments, net | (16.8) | (9.7) | 6.0 |
Income (losses) from investments in equity method investees | (98.1) | (10.4) | 44.4 |
Rental income | 30.0 | 19.8 | 15.9 |
Foreign currency exchange (losses) gains, net | (22.3) | 13.1 | 0.6 |
Other, net | 5.6 | 0.6 | 5.8 |
Investment and Other Income (Losses), Net | $ (38.4) | $ 141.4 | $ 200.3 |
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Oct. 01, 2018 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of year | $ (431.6) | $ (370.6) | $ (284.8) | |
Other comprehensive income (loss) before reclassifications, net of tax | 20.4 | (61.7) | (76.7) | |
Reclassifications to compensation and benefits expense, net of tax | 0.3 | 0.4 | 0.4 | |
Reclassifications to net investment and other income (losses), net of tax | 3.3 | 8.3 | (9.4) | |
Total other comprehensive income (loss) | 24.0 | (53.0) | (85.7) | |
Balance at end of year | (407.6) | (431.6) | (370.6) | |
ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 0.1 | |||
ASU 2016-01 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | $ (8.0) | |||
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of year | (425.4) | (372.9) | (281.0) | |
Other comprehensive income (loss) before reclassifications, net of tax | 23.8 | (53.9) | (85.5) | |
Reclassifications to compensation and benefits expense, net of tax | 0.0 | 0.0 | 0.0 | |
Reclassifications to net investment and other income (losses), net of tax | 2.0 | 1.4 | (6.4) | |
Total other comprehensive income (loss) | 25.8 | (52.5) | (91.9) | |
Balance at end of year | (399.6) | (425.4) | (372.9) | |
Currency Translation Adjustments [Member] | ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 0.0 | |||
Unrealized Losses on Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of year | (6.2) | (4.2) | (6.0) | |
Other comprehensive income (loss) before reclassifications, net of tax | (2.1) | (2.4) | 1.5 | |
Reclassifications to compensation and benefits expense, net of tax | 0.3 | 0.4 | 0.4 | |
Reclassifications to net investment and other income (losses), net of tax | 0.0 | 0.0 | 0.0 | |
Total other comprehensive income (loss) | (1.8) | (2.0) | 1.9 | |
Balance at end of year | (8.0) | (6.2) | (4.2) | |
Unrealized Losses on Defined Benefit Plans [Member] | ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (0.1) | |||
Unrealized Gains on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of year | 0.0 | 6.5 | 2.2 | |
Other comprehensive income (loss) before reclassifications, net of tax | (1.3) | (5.4) | 7.3 | |
Reclassifications to compensation and benefits expense, net of tax | 0.0 | 0.0 | 0.0 | |
Reclassifications to net investment and other income (losses), net of tax | 1.3 | 6.9 | (3.0) | |
Total other comprehensive income (loss) | 0.0 | 1.5 | 4.3 | |
Balance at end of year | $ 0.0 | $ 0.0 | 6.5 | |
Unrealized Gains on Investments [Member] | ASU 2018-02 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 0.0 | |||
Unrealized Gains on Investments [Member] | ASU 2016-01 [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of new accounting guidance | $ (8.0) |
Subsequent Event Subsequent Event (Details) - Subsequent Event [Member] - Notes Due October 2030 [Domain] $ in Millions |
Oct. 19, 2020
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Debt Instrument, Face Amount | $ 750.0 |
Debt Instrument, Interest Rate, Stated Percentage | 1.60% |
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