Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Franklin Resources Inc | |
Entity Central Index Key | 38,777 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 527,058,253 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Revenues | ||||
Investment management fees | $ 1,077.9 | $ 1,097 | $ 3,308.6 | $ 3,249.4 |
Sales and distribution fees | 391.4 | 433.3 | 1,219 | 1,283.8 |
Shareholder servicing fees | 53.9 | 56.7 | 170.1 | 169.7 |
Other | 35.4 | 26.9 | 94.2 | 72.4 |
Total operating revenues | 1,558.6 | 1,613.9 | 4,791.9 | 4,775.3 |
Operating Expenses | ||||
Sales, distribution and marketing | 499.8 | 541.2 | 1,550 | 1,596 |
Compensation and benefits | 357.5 | 342.7 | 1,045.5 | 997.6 |
Information systems and technology | 62.5 | 54.1 | 175.6 | 159.8 |
Occupancy | 30.5 | 30.2 | 94 | 88.3 |
General, administrative and other | 105.2 | 81.5 | 286.9 | 227 |
Total operating expenses | 1,055.5 | 1,049.7 | 3,152 | 3,068.7 |
Operating Income | 503.1 | 564.2 | 1,639.9 | 1,706.6 |
Other Income (Expenses) | ||||
Investment and other income (losses), net | (33.8) | 92.2 | 134.9 | 222.9 |
Interest expense | (22.1) | (12.9) | (42.9) | (38.8) |
Other income (expenses), net | (55.9) | 79.3 | 92 | 184.1 |
Income before taxes | 447.2 | 643.5 | 1,731.9 | 1,890.7 |
Taxes on income | 91.8 | 184.1 | 1,465.5 | 577.5 |
Net income | 355.4 | 459.4 | 266.4 | 1,313.2 |
Less: net income (loss) attributable to | ||||
Nonredeemable noncontrolling interests | (1.6) | 12.5 | 22.8 | 8.6 |
Redeemable noncontrolling interests | (45) | 36.3 | (18.3) | 33.1 |
Net Income Attributable to Franklin Resources, Inc. | $ 402 | $ 410.6 | $ 261.9 | $ 1,271.5 |
Earnings per Share | ||||
Basic | $ 0.75 | $ 0.73 | $ 0.45 | $ 2.25 |
Diluted | 0.75 | 0.73 | 0.45 | 2.25 |
Dividends Declared per Share | $ 0.23 | $ 0.2 | $ 3.69 | $ 0.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 355.4 | $ 459.4 | $ 266.4 | $ 1,313.2 |
Other Comprehensive Income (Loss) | ||||
Net unrealized gains (losses) on investments, net of tax | 3.3 | (1.6) | 6.6 | 1.4 |
Currency translation adjustments, net of tax | (86.7) | 54 | (64.1) | 32.3 |
Net unrealized gains (losses) on defined benefit plans, net of tax | 0.2 | (0.2) | (0.5) | (0.2) |
Total other comprehensive income (loss) | (83.2) | 52.2 | (58) | 33.5 |
Total comprehensive income | 272.2 | 511.6 | 208.4 | 1,346.7 |
Less: comprehensive income (loss) attributable to | ||||
Nonredeemable noncontrolling interests | (1.6) | 12.5 | 22.8 | 8.6 |
Redeemable noncontrolling interests | (45) | 36.3 | (18.3) | 33.1 |
Comprehensive Income Attributable to Franklin Resources, Inc. | $ 318.8 | $ 462.8 | $ 203.9 | $ 1,305 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Assets | ||
Cash and cash equivalents | $ 6,654.2 | $ 8,749.7 |
Receivables | 814.9 | 767.8 |
Investments | 1,509.5 | 1,393.6 |
Investments, at fair value | 587 | 440 |
Property and equipment, net | 522.4 | 517.2 |
Goodwill and other intangible assets, net | 2,352.9 | 2,227.7 |
Other | 211 | 176.5 |
Total Assets | 15,528 | 17,534 |
Liabilities | ||
Compensation and benefits | 405.9 | 396.6 |
Accounts payable and accrued expenses | 177.5 | 167.4 |
Dividends | 130.1 | 113.3 |
Commissions | 291.3 | 313.3 |
Income taxes | 1,176.2 | 74.7 |
Debt | 695.7 | 1,044.2 |
Deferred taxes | 128 | 170.6 |
Other | 190.9 | 198.7 |
Total liabilities | 3,306 | 2,656.3 |
Commitments and Contingencies (Note 11) | ||
Redeemable Noncontrolling Interests | 2,031.6 | 1,941.9 |
Stockholders' Equity | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 529,106,446 and 554,865,343 shares issued and outstanding at June 30, 2018 and September 30, 2017 | 52.9 | 55.5 |
Retained earnings | 10,153.5 | 12,849.3 |
Accumulated other comprehensive loss | (342.9) | (284.8) |
Total Franklin Resources, Inc. stockholders’ equity | 9,863.5 | 12,620 |
Nonredeemable noncontrolling interests | 326.9 | 315.8 |
Total stockholders’ equity | 10,190.4 | 12,935.8 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 15,528 | 17,534 |
Consolidated Investment Products [Member] | ||
Assets | ||
Cash and cash equivalents | 231.6 | 226.4 |
Receivables | 132 | 234.1 |
Investments, at fair value | 3,331.1 | 3,467.4 |
Other | 1 | 0.9 |
Total Assets | 3,695.7 | 3,928.8 |
Liabilities | ||
Accounts payable and accrued expenses | 76.3 | 124.1 |
Debt | 34.1 | 53.4 |
Other | 8.9 | 8.7 |
Total liabilities | 119.3 | 186.2 |
Redeemable Noncontrolling Interests | 2,031.6 | 1,941.9 |
Stockholders' Equity | ||
Total Franklin Resources, Inc. stockholders’ equity | 1,244.2 | 1,511.8 |
Nonredeemable noncontrolling interests | 300.6 | 288.9 |
Total stockholders’ equity | 1,544.8 | 1,800.7 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 3,695.7 | 3,928.8 |
Franklin Resources, Inc. [Member] | ||
Assets | ||
Cash and cash equivalents | $ 6,422.6 | $ 8,523.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Investments, at fair value | $ 587 | $ 440 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 529,106,446 | 554,865,343 |
Common stock, shares outstanding | 529,106,446 | 554,865,343 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Net cash provided by operating activities | ||
Net Income | $ 266.4 | $ 1,313.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred sales commissions | 60.5 | 52.9 |
Depreciation and other amortization | 58.7 | 62.3 |
Stock-based compensation | 89.5 | 95 |
Income from investments in equity method investees | (41.8) | (88.4) |
Net gains on investments of consolidated investment products | (35.1) | (15.7) |
Deferred income taxes | (54.5) | (7) |
Other | 28.3 | (18.5) |
Changes in operating assets and liabilities: | ||
Increase in receivables and other assets | (79.2) | (39) |
Decrease (increase) in receivables of consolidated investment products | 97.1 | (45.7) |
Decrease (increase) in trading securities, net | (165.7) | 68.6 |
Decrease (increase) in trading securities of consolidated investment products, net | 235.6 | (528.9) |
Increase (decrease) in accrued compensation and benefits | (18.6) | 2 |
Increase (decrease) in commissions payable | (22) | 11 |
Increase in income taxes payable | 1,106.6 | 68.8 |
Decrease in accounts payable, accrued expenses and other liabilities | (18.4) | (26.3) |
Increase in accounts payable and accrued expenses of consolidated investment products | 1.1 | 54 |
Net cash provided by operating activities | 1,508.5 | 958.3 |
Net cash provided by (used in) investing activities | ||
Purchase of investments | (250) | (336.2) |
Liquidation of investments | 127.5 | 271.3 |
Purchase of investments by consolidated investment products | (46.1) | (114.3) |
Liquidation of investments by consolidated investment products | 72.3 | 333.9 |
Additions of property and equipment, net | (71.5) | (49) |
Adoption of new accounting guidance | 0 | (49.2) |
Acquisitions, net of cash acquired | (97) | (14) |
Net (deconsolidation) consolidation of investment products | (8) | 22.4 |
Net cash provided by (used in) investing activities | (272.8) | 64.9 |
Net cash used in financing activities | ||
Issuance of common stock | 13.6 | 13 |
Dividends paid on common stock | (1,994.9) | (329.4) |
Repurchase of common stock | (1,056) | (600.6) |
Excess tax benefit from stock-based compensation | 0 | 0.6 |
Payment on debt | (361.9) | 0 |
Payment on loan | 0 | (22.5) |
Proceeds from debt of consolidated investment products | 0 | 0.7 |
Payments on debt by consolidated investment products | (19.6) | (288.3) |
Payments on contingent consideration liability | (21.6) | (31.7) |
Noncontrolling interests | 123.7 | 527.4 |
Net cash used in financing activities | (3,316.7) | (730.8) |
Effect of exchange rate changes on cash and cash equivalents | (14.5) | 10.5 |
Increase (decrease) in cash and cash equivalents | (2,095.5) | 302.9 |
Cash and cash equivalents, beginning of period | 8,749.7 | 8,483.3 |
Cash and Cash Equivalents, End of Period | 6,654.2 | 8,786.2 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for income taxes | 414.9 | 520.5 |
Cash paid for interest | 34.2 | 34.4 |
Cash paid for interest by consolidated investment products | $ 1.9 | $ 10.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements of Franklin Resources, Inc. (“Franklin”) and its consolidated subsidiaries (collectively, the “Company”) included herein have been prepared by the Company in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission. Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. These financial statements should be read together with the Company’s audited financial statements included in its Form 10-K for the fiscal year ended September 30, 2017 (“fiscal year 2017 ”). Certain comparative amounts for the prior fiscal year period have been reclassified to conform to the financial statement presentation as of and for the period ended June 30, 2018 . |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | New Accounting Guidance Recently Adopted Accounting Guidance On October 1, 2017 , the Company adopted an amendment to the existing stock-based compensation guidance issued by the Financial Accounting Standards Board (“FASB”). The amendment requires all income tax effects of stock-based awards to be recognized as income tax expense when the awards vest or settle and clarifies the classification of these transactions within the statement of cash flows. The amendment also provides an election to account for forfeitures as they occur, which the Company made using the modified retrospective approach which did not require the restatement of prior-year periods and did not result in a material impact on retained earnings. The income tax effect and statement of cash flow changes were adopted on a prospective basis. The adoption of the amendment will increase the volatility of income tax expense as a result of fluctuations in the Company’s stock price. Accounting Guidance Not Yet Adopted The FASB issued new guidance in May 2014 that requires use of a single principles-based model for recognition of revenue from contracts with customers. The core principle of the model is that revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received for the goods or services. The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The guidance is effective for the Company on October 1, 2018 and allows for either a full or modified retrospective approach at adoption. While the Company’s implementation efforts are ongoing, it does not expect adoption of the guidance to have a significant impact on the timing of recognition or presentation for substantially all of its operating revenue or the accounting for its contract costs. The impact upon adoption may differ based on further evaluation of the Company’s arrangements. The Company will elect the modified retrospective approach and recognize a cumulative effect adjustment to retained earnings at adoption. There were no other significant updates to the new accounting guidance not yet adopted by the Company as disclosed in its Form 10-K for fiscal year 2017 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Changes in total stockholders’ equity were as follows: (in millions) Franklin Resources, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Stockholders’ Equity for the nine months ended June 30, 2018 Balance at October 1, 2017 $ 12,620.0 $ 315.8 $ 12,935.8 Adoption of new accounting guidance 0.4 — 0.4 Net income 261.9 22.8 284.7 Other comprehensive loss (58.0 ) (58.0 ) Cash dividends declared on common stock (2,011.7 ) (2,011.7 ) Repurchase of common stock (1,078.8 ) (1,078.8 ) Stock-based compensation 102.7 102.7 Acquisition 27.0 27.0 Net redemptions and other (14.1 ) (14.1 ) Net consolidation of investment products 2.4 2.4 Balance at June 30, 2018 $ 9,863.5 $ 326.9 $ 10,190.4 (in millions) Franklin Resources, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Stockholders’ Equity for the nine months ended June 30, 2017 Balance at October 1, 2016 $ 11,935.8 $ 592.4 $ 12,528.2 Adoption of new accounting guidance (1.3 ) (324.6 ) (325.9 ) Net income 1,271.5 8.6 1,280.1 Other comprehensive income 33.5 33.5 Cash dividends declared on common stock (338.5 ) (338.5 ) Repurchase of common stock (603.1 ) (603.1 ) Stock-based compensation 102.1 102.1 Net subscriptions and other 38.0 38.0 Deconsolidation of investment product (9.3 ) (9.3 ) Balance at June 30, 2017 $ 12,400.0 $ 305.1 $ 12,705.1 During the three and nine months ended June 30, 2018 , the Company repurchased 13.4 million and 29.1 million shares of its common stock at a cost of $446.2 million and $1,078.8 million under its stock repurchase program. At June 30, 2018 , 82.5 million shares remained available for repurchase under the program, which is not subject to an expiration date. On April 11, 2018 , the Company’s Board of Directors authorized the Company to repurchase, from time to time, up to an additional 80.0 million shares of its common stock in either open market or private transactions. Shares repurchased under the stock repurchase program are retired. During the three and nine months ended June 30, 2017 , the Company repurchased 4.1 million and 15.2 million shares of its common stock at a cost of $174.6 million and $603.1 million . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The components of basic and diluted earnings per share were as follows: (in millions, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income attributable to Franklin Resources, Inc. $ 402.0 $ 410.6 $ 261.9 $ 1,271.5 Less: allocation of earnings to participating nonvested stock and stock unit awards 3.3 3.5 17.1 9.9 Net Income Available to Common Stockholders $ 398.7 $ 407.1 $ 244.8 $ 1,261.6 Weighted-average shares outstanding – basic 533.0 556.2 542.9 560.5 Dilutive effect of nonparticipating nonvested stock unit awards 0.5 0.5 0.7 0.3 Weighted-Average Shares Outstanding – Diluted 533.5 556.7 543.6 560.8 Earnings per Share Basic $ 0.75 $ 0.73 $ 0.45 $ 2.25 Diluted 0.75 0.73 0.45 2.25 Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.8 million and 0.3 million for the three and nine months ended June 30, 2018 , and 0.2 million and 0.7 million for the three and nine months ended June 30, 2017 . |
Investments
Investments | 9 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | Investments The disclosures below include details of the Company’s investments, excluding those of consolidated investment products. See Note 8 – Consolidated Investment Products for information related to the investments held by these entities. Investments consisted of the following: (in millions) June 30, September 30, Investment securities, trading Sponsored funds $ 203.7 $ 31.1 Debt and other equity securities 269.6 283.4 Total investment securities, trading 473.3 314.5 Investment securities, available-for-sale Sponsored funds 100.9 110.8 Debt and other equity securities 1.0 1.9 Total investment securities, available-for-sale 101.9 112.7 Investments in equity method investees 858.8 893.5 Other investments 75.5 72.9 Total $ 1,509.5 $ 1,393.6 Debt and other equity trading securities consist primarily of corporate debt. Investment securities with aggregate carrying amounts of $1.2 million and $0.8 million were pledged as collateral at June 30, 2018 and September 30, 2017 . Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows: (in millions) Cost Basis Gross Unrealized Fair Value Gains Losses as of June 30, 2018 Sponsored funds $ 93.0 $ 9.7 $ (1.8 ) $ 100.9 Debt and other equity securities 1.0 — — 1.0 Total $ 94.0 $ 9.7 $ (1.8 ) $ 101.9 as of September 30, 2017 Sponsored funds $ 107.9 $ 9.4 $ (6.5 ) $ 110.8 Debt and other equity securities 1.9 — — 1.9 Total $ 109.8 $ 9.4 $ (6.5 ) $ 112.7 Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows: (in millions) Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses as of June 30, 2018 Sponsored funds $ 20.3 $ (1.3 ) $ 21.3 $ (0.5 ) $ 41.6 $ (1.8 ) as of September 30, 2017 Sponsored funds $ 28.4 $ (6.3 ) $ 2.4 $ (0.2 ) $ 30.8 $ (6.5 ) The Company recognized other-than-temporary impairment of $0.3 million and $0.9 million during the three and nine months ended June 30, 2018 , and $0.5 million and $0.8 million during the three and nine months ended June 30, 2017 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The disclosures below include details of the Company’s fair value measurements, excluding those of consolidated investment products. See Note 8 – Consolidated Investment Products for information related to fair value measurements of the assets and liabilities of these entities. The assets and liability measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of June 30, 2018 Assets Investment securities, trading Sponsored funds $ 203.7 $ — $ — $ 203.7 Debt and other equity securities 19.4 58.1 192.1 269.6 Investment securities, available-for-sale Sponsored funds 100.9 — — 100.9 Debt and other equity securities 0.2 0.5 0.3 1.0 Life settlement contracts — — 11.8 11.8 Total Assets Measured at Fair Value $ 324.2 $ 58.6 $ 204.2 $ 587.0 Liability Contingent consideration liability $ — $ — $ 35.6 $ 35.6 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2017 Assets Investment securities, trading Sponsored funds $ 31.1 $ — $ — $ 31.1 Debt and other equity securities 18.2 78.4 186.8 283.4 Investment securities, available-for-sale Sponsored funds 110.8 — — 110.8 Debt and other equity securities 1.0 0.6 0.3 1.9 Life settlement contracts — — 12.8 12.8 Total Assets Measured at Fair Value $ 161.1 $ 79.0 $ 199.9 $ 440.0 Liability Contingent consideration liability $ — $ — $ 51.0 $ 51.0 Level 1 assets consist primarily of sponsored funds and other equity securities for which the fair values are based on published net asset values (“NAV”) or quoted market prices. Level 2 assets consist of debt and equity securities for which the fair values are determined using independent third-party broker or dealer price quotes. Level 3 assets consist of corporate debt securities for which the fair value is determined using market pricing, and other debt securities and life settlement contracts for which the fair values are based on discounted cash flows using significant unobservable inputs. The fair value of the contingent consideration liability is determined using an income-based method which considers the net present value of anticipated future cash flows. Transfers into Level 2 from Level 1 were nil and $0.5 million for the three and nine months ended June 30, 2018 , and transfers into Level 1 from Level 2 were $0.5 million for both periods. The transfers into Level 2 from Level 1 were securities for which the quoted market prices were adjusted as of March 31, 2018 due to significant price changes in U.S.-traded market proxies resulting from global market volatility. The adjustments were made after the close of foreign markets and were based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. The transfers into Level 1 from Level 2 were securities that were valued using unadjusted quoted market prices. There were no transfers between Level 1 and Level 2 during the nine months ended June 30, 2017 . There were no transfers into or out of Level 3 during the nine months ended June 30, 2018 , and there were no transfers into Level 3 for the nine months ended June 30, 2017 . Changes in the Level 3 assets and liabilities were as follows: 2018 2017 (in millions) Investments Contingent Investments Contingent for the three months ended June 30, Balance at beginning of period $ 208.1 $ (31.2 ) $ 211.0 $ (60.4 ) Total realized and unrealized gains (losses) Included in investment and other income, net 1.0 — 1.7 — Included in general, administrative and other expense — (4.4 ) — 5.6 Purchases 5.4 — 1.3 — Sales (0.4 ) — — — Settlements (1.1 ) — (0.1 ) — Foreign exchange revaluation and other (8.8 ) — 0.9 — Balance at End of Period $ 204.2 $ (35.6 ) $ 214.8 $ (54.8 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period $ 0.4 $ (4.4 ) $ 2.2 $ (0.1 ) 2018 2017 (in millions) Investments Contingent Investments Contingent for the nine months ended June 30, Balance at beginning of period $ 199.9 $ (51.0 ) $ 205.1 $ (98.1 ) Acquisition — — — (5.7 ) Total realized and unrealized gains (losses) Included in investment and other income, net 4.0 — 7.3 — Included in general, administrative and other expense — (10.0 ) — 13.6 Purchases 12.1 — 2.1 — Sales (0.4 ) — (2.4 ) — Settlements (3.0 ) 32.4 (2.6 ) 35.4 Transfers out of Level 3 — — (0.4 ) — Foreign exchange revaluation and other (8.4 ) (7.0 ) 5.7 — Balance at End of Period $ 204.2 $ (35.6 ) $ 214.8 $ (54.8 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period $ 2.4 $ (10.0 ) $ 6.2 $ 7.9 Valuation techniques and significant unobservable inputs used in the Level 3 fair value measurements were as follows: (in millions) as of June 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 171.3 Market pricing Redemption price $73 per $100 of par Discount rate 18.7% 20.8 Discounted cash flow Discount rate 3.4%–6.6% (5.4%) Risk premium 2.0%–4.7% (3.1%) Life settlement contracts 11.8 Discounted cash flow Life expectancy 20–117 months (62) Discount rate 8.0%–20.0% (13.1%) Contingent consideration liability 35.6 Discounted cash flow AUM growth rate (3.4%) Discount rate 13.8% (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 175.7 Market pricing Redemption price $73 per $100 of par Discount rate 18.6% 11.1 Discounted cash flow Discount rate 4.1%–6.7% (5.7%) Risk premium 2.0%–4.1% (2.9%) Life settlement contracts 12.8 Discounted cash flow Life expectancy 20–123 months (62) Discount rate 8.0%–20.0% (13.2%) Contingent consideration liability 51.0 Discounted cash flow AUM growth rate 1.3%–9.4% (5.3%) Discount rate 14.6% For investment securities, trading – debt and other equity securities using the market pricing technique, a significant increase (decrease) in the redemption price in isolation would result in a significantly higher (lower) fair value measurement, while a significant increase (decrease) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. For investment securities, trading – debt and other equity securities using the discounted cash flow technique, a significant increase (decrease) in the discount rate or risk premium in isolation would result in a significantly lower (higher) fair value measurement. For life settlement contracts, a significant increase (decrease) in the life expectancy or the discount rate in isolation would result in a significantly lower (higher) fair value measurement. For the contingent consideration liability, a significant increase (decrease) in the assets under management (“AUM”) growth rate, or decrease (increase) in the discount rate, in isolation would result in a significantly higher (lower) fair value measurement. Financial instruments that were not measured at fair value were as follows: (in millions) Fair Value Level June 30, 2018 September 30, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 6,422.6 $ 6,422.6 $ 8,523.3 $ 8,523.3 Other investments Time deposits 2 12.2 12.2 13.4 13.4 Cost method investments 3 51.5 73.7 46.7 67.7 Financial Liability Debt 2 $ 695.7 $ 685.0 $ 1,044.2 $ 1,073.5 |
Debt
Debt | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The disclosures below include details of the Company’s debt, excluding that of consolidated investment products. See Note 8 – Consolidated Investment Products for information related to the debt of these entities. Debt consisted of the following: June 30, Effective Interest Rate September 30, Effective Interest Rate (in millions) Senior Notes $350 million 4.625% notes due May 2020 $ — N/A $ 349.9 4.74 % $300 million 2.800% notes due September 2022 299.7 2.93 % 299.6 2.93 % $400 million 2.850% notes due March 2025 399.5 2.97 % 399.5 2.97 % Total senior notes 699.2 1,049.0 Debt issuance costs (3.5 ) (4.8 ) Total $ 695.7 $ 1,044.2 At June 30, 2018 , the Company’s outstanding senior unsecured unsubordinated notes had an aggregate face value of $700.0 million . The notes have fixed interest rates with interest payable semi-annually and contain an optional redemption feature that allows the Company to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The indentures governing the notes contain limitations on the Company’s ability and the ability of its subsidiaries to pledge voting stock or profit participating equity interests in its subsidiaries to secure other debt without similarly securing the notes equally and ratably. The indentures also include requirements that must be met if the Company consolidates or merges with, or sells all or substantially all of its assets to, another entity. On May 21, 2018 , the Company redeemed its outstanding 4.625% notes due in May 2020 at a make-whole redemption price of $361.9 million , which resulted in the recognition of $12.5 million of accelerated interest expense. The Company was in compliance with all debt covenants at June 30, 2018 . At June 30, 2018 , the Company had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012 . |
Consolidated Investment Product
Consolidated Investment Products | 9 Months Ended |
Jun. 30, 2018 | |
Consolidated Investment Products [Abstract] | |
Consolidated Investment Products | Consolidated Investment Products Consolidated investment products (“CIPs”) consist of mutual and other investment funds, limited partnerships and similar structures, substantially all of which are sponsored by the Company, and include both voting interest entities and variable interest entities. The Company had 55 and 58 CIPs as of June 30, 2018 and September 30, 2017 . The balances related to CIPs included in the Company’s consolidated balance sheets were as follows: (in millions) June 30, September 30, Assets Cash and cash equivalents $ 231.6 $ 226.4 Receivables 132.0 234.1 Investments, at fair value 3,331.1 3,467.4 Other assets 1.0 0.9 Total Assets $ 3,695.7 $ 3,928.8 Liabilities Accounts payable and accrued expenses $ 76.3 $ 124.1 Debt 34.1 53.4 Other liabilities 8.9 8.7 Total liabilities 119.3 186.2 Redeemable Noncontrolling Interests 2,031.6 1,941.9 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,244.2 1,511.8 Nonredeemable noncontrolling interests 300.6 288.9 Total stockholders’ equity 1,544.8 1,800.7 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 3,695.7 $ 3,928.8 The CIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2018 and 2017 . The Company has no right to the CIPs’ assets, other than its direct equity investments in them and investment management fees earned from them. The debt holders of the CIPs have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the CIPs’ liabilities. Investment products are typically consolidated when the Company makes an initial investment in a newly launched investment entity. They are typically deconsolidated when the Company no longer has a controlling financial interest due to redemptions of its investment or increases in third-party investments. The Company’s investments in these products subsequent to deconsolidation are accounted for as trading or available-for-sale investment securities, or equity method or cost method investments depending on the structure of the product and the Company’s role and level of ownership. Investments Investments of CIPs consisted of the following: (in millions) June 30, September 30, Investment securities, trading $ 2,861.3 $ 3,017.2 Other equity securities 346.9 306.9 Other debt securities 122.9 143.3 Total $ 3,331.1 $ 3,467.4 Investment securities, trading consist of debt and equity securities that are traded in active markets. Other equity securities consist of equity securities of entities in emerging markets and fund products. Other debt securities consist of debt securities of entities in emerging markets and other debt instruments. Fair Value Measurements Assets and liabilities of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of June 30, 2018 Assets Investments Equity securities $ 307.1 $ 307.1 $ 187.5 $ 160.8 $ 962.5 Debt securities 3.4 2,242.3 122.9 — 2,368.6 Total Assets Measured at Fair Value $ 310.5 $ 2,549.4 $ 310.4 $ 160.8 $ 3,331.1 Liabilities Other liabilities $ 0.6 $ 8.3 $ — $ — $ 8.9 (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2017 Assets Investments Equity securities $ 331.4 $ 128.1 $ 160.7 $ 155.2 $ 775.4 Debt securities 1.4 2,555.2 135.4 — 2,692.0 Total Assets Measured at Fair Value $ 332.8 $ 2,683.3 $ 296.1 $ 155.2 $ 3,467.4 Liabilities Other liabilities $ 0.4 $ 8.3 $ — $ — $ 8.7 Level 1 assets consist of equity and debt securities for which the fair values are based on quoted market prices. Level 2 assets consist of debt and equity securities for which the fair values are determined using independent third-party broker or dealer price quotes. Level 3 assets consist of equity and debt securities of entities in emerging markets and other debt instruments for which the fair values are determined using significant unobservable inputs in either a market-based or income-based approach. The fair value of other liabilities, which consist of short positions in debt and equity securities, is determined based on the fair value of the underlying securities using quoted market prices, or independent third-party broker or dealer price quotes if quoted market prices are not available. Transfers into Level 2 from Level 1 were nil and $3.5 million for the three and nine months ended June 30, 2018 , and transfers into Level 1 from Level 2 were $2.8 million for both periods. The transfers into Level 2 from Level 1 were securities for which the quoted market prices were adjusted as of March 31, 2018 due to significant price changes in U.S.-traded market proxies resulting from global market volatility. The impacted securities trade in 11 different countries in Asia-Pacific, Europe and Latin America. The adjustments were made after the close of the foreign markets and were based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. The transfers into Level 1 from Level 2 were securities that were valued using unadjusted quoted market prices. There were no transfers between Level 1 and Level 2 during the nine months ended June 30, 2017 . There were no transfers into or out of Level 3 during the nine months ended June 30, 2018 and 2017 . Investments for which fair value was estimated using reported NAV as a practical expedient consisted of nonredeemable real estate and private equity funds. These investments are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over a weighted-average period of 3.7 years and 4.4 years at June 30, 2018 and September 30, 2017 . The CIPs’ unfunded commitments to these funds totaled $1.9 million , of which the Company was contractually obligated to fund $0.4 million based on its ownership percentage in the CIPs, at both June 30, 2018 and September 30, 2017 . Changes in Level 3 assets were as follows: 2018 2017 (in millions) Equity Debt Total Equity Debt Total for the three months ended June 30, Balance at beginning of period $ 188.4 $ 112.2 $ 300.6 $ 140.7 $ 114.4 $ 255.1 Realized and unrealized gains (losses) included in investment and other income, net 5.4 0.3 5.7 (10.3 ) 18.3 8.0 Purchases 0.1 5.0 5.1 4.7 15.5 20.2 Sales (2.6 ) (0.1 ) (2.7 ) (0.5 ) (4.7 ) (5.2 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (3.8 ) (1.0 ) (4.8 ) 2.4 2.4 4.8 Balance at End of Period $ 187.5 $ 122.9 $ 310.4 $ 137.0 $ 145.3 $ 282.3 Change in unrealized gains (losses) included in net income relating to assets held at end of period $ 0.9 $ 0.2 $ 1.1 $ (10.3 ) $ 18.2 $ 7.9 2018 2017 (in millions) Equity Debt Total Equity Debt Total for the nine months ended June 30, Balance at beginning of period $ 160.7 $ 135.4 $ 296.1 $ 160.3 $ 132.3 $ 292.6 Adoption of new accounting guidance — — — (45.4 ) (0.5 ) (45.9 ) Realized and unrealized gains (losses) included in investment and other income, net 22.9 2.4 25.3 (9.4 ) 3.8 (5.6 ) Purchases 22.7 15.5 38.2 30.2 23.3 53.5 Sales (17.5 ) (37.8 ) (55.3 ) (0.6 ) (13.0 ) (13.6 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (1.3 ) 0.9 (0.4 ) 1.9 — 1.9 Balance at End of Period $ 187.5 $ 122.9 $ 310.4 $ 137.0 $ 145.3 $ 282.3 Change in unrealized gains (losses) included in net income relating to assets held at end of period $ 17.5 $ (2.1 ) $ 15.4 $ 0.7 $ 3.2 $ 3.9 Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows: (in millions) as of June 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 159.8 Market comparable companies EBITDA multiple 5.9–13.6 (9.4) 27.7 Discounted cash flow Discount rate 8.1%–16.5% (14.1%) Debt securities 76.9 Discounted cash flow Discount rate 7.0%–14.8% (10.7%) 30.9 Comparable trading multiple Price to earnings ratio 10.0 Enterprise value/ 20.9 12.0 Discounted cash flow Loss-adjusted discount rate 3.0%–62.3% (10.7%) 3.1 Market pricing Private sale pricing $33 per $100 of par (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 101.9 Market comparable companies EBITDA multiple 5.5–12.3 (9.0) 44.4 Discounted cash flow Discount rate 5.7%–17.9% (14.3%) 14.4 Market pricing Price to earnings ratio 10.0 Debt securities 112.7 Discounted cash flow Discount rate 5.0%–33.0% (9.5%) Risk premium 0.0%–25.0% (8.4%) 22.7 Market pricing Private sale pricing $33–$57 ($52) per $100 of par For securities using the market comparable companies valuation technique, a significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. For securities using the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate, loss-adjusted discount rate or risk premium in isolation would result in a significantly lower (higher) fair value measurement. For securities using the comparable trading multiple valuation technique, a significant increase (decrease) in the price to earnings ratio or enterprise value/EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. For securities using the market pricing valuation technique, a significant increase (decrease) in the private sale pricing or price to earnings ratio in isolation would result in a significantly higher (lower) fair value measurement. Financial instruments of CIPs that were not measured at fair value were as follows: (in millions) Fair Value Level June 30, 2018 September 30, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Asset Cash and cash equivalents 1 $ 231.6 $ 231.6 $ 226.4 $ 226.4 Financial Liability Debt 3 $ 34.1 $ 33.9 $ 53.4 $ 53.1 Debt Debt of CIPs totaled $34.1 million and $53.4 million at June 30, 2018 and September 30, 2017 . The debt had fixed and floating interest rates ranging from 3.07% to 7.63% with a weighted-average effective interest rate of 6.65% at June 30, 2018 , and from 2.84% to 6.75% with a weighted-average effective interest rate of 5.15% at September 30, 2017 . The debt carried at June 30, 2018 matures in fiscal year 2019. Redeemable Noncontrolling Interests Changes in redeemable noncontrolling interests of CIPs were as follows: (in millions) for the nine months ended June 30, 2018 2017 Balance at beginning of period $ 1,941.9 $ 61.1 Adoption of new accounting guidance — 824.7 Net income (loss) (18.3 ) 33.1 Net subscriptions and other 137.8 489.4 Net consolidations (deconsolidations) (29.8 ) 422.3 Balance at End of Period $ 2,031.6 $ 1,830.6 |
Nonconsolidated Variable Intere
Nonconsolidated Variable Interest Entities | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nonconsolidated Variable Interest Entities | Nonconsolidated Variable Interest Entities 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 investment management fee receivables and equity investments as follows: (in millions) June 30, September 30, Receivables $ 147.3 $ 155.6 Investments 84.7 129.3 Total $ 232.0 $ 284.9 While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching sponsored funds. The Company also may voluntarily elect to provide its sponsored funds with additional direct or indirect financial support based on its business objectives. The Company did not provide financial or other support to its sponsored funds during the nine months ended June 30, 2018 or fiscal year 2017 . |
Taxes on Income
Taxes on Income | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law in the U.S. on December 22, 2017. The Tax Act includes various changes to the tax law, including a permanent reduction in the corporate income tax rate. The Tax Act imposes a one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiaries’ earnings. During the quarter ended December 31, 2017, the Company recognized an estimated transition tax expense of $1,120.7 million based on information then available. The Company subsequently decreased this estimate by $45.6 million as a result of the completion of the Company’s tax return filings for fiscal year 2017, additional technical guidance from the Department of Treasury, and further refinement of the calculation. The expense may be further adjusted in future quarters upon issuance of additional technical guidance, legislative updates from states on tax reform, and the completion of the Company’s tax return filings for fiscal year 2018. The federal portion of the transition tax liability, estimated to be $1,059.6 million , will be paid over eight years beginning in January 2019, with 8% of the liability payable in each of the first five years, 15% in year six, 20% in year seven and 25% in year eight. The Tax Act reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018 . The Company’s federal statutory rate for the fiscal year ending September 30, 2018 is a blended rate of 24.5% , based on the pre- and post-Tax Act rates, and will be 21% for future fiscal years. During the quarter ended December 31, 2017, the Company recognized the estimated related changes in its deferred tax assets and deferred tax liabilities, which resulted in a $35.7 million decrease in deferred tax assets, an $88.8 million decrease in deferred tax liabilities and a $53.1 million net tax benefit. The Company subsequently increased the estimated net tax benefit by $0.4 million , and the estimate may be further revised in future quarters as the related temporary differences are realized or settled. During the nine months ended June 30, 2018 , the Company reclassified $0.1 million from accumulated other comprehensive loss to retained earnings related to stranded tax effects resulting from the change in tax rate. Deferred tax assets and deferred tax liabilities were as follows: (in millions) June 30, September 30, Deferred tax assets, net of valuation allowance $ 92.4 $ 141.3 Deferred tax liabilities 199.4 296.1 Net Deferred Tax Liability $ 107.0 $ 154.8 Deferred income tax assets and liabilities that relate to the same tax jurisdiction are presented net on the consolidated balance sheets. The components of the net deferred tax liability were classified in the consolidated balance sheets as follows: (in millions) June 30, September 30, Other assets $ 21.0 $ 15.8 Deferred tax liabilities 128.0 170.6 Net Deferred Tax Liability $ 107.0 $ 154.8 Prior to the Tax Act, the Company indefinitely reinvested the undistributed earnings of all its foreign subsidiaries, except for income previously taxed in the U.S. or subject to regulatory or legal repatriation restrictions or requirements. The Company is currently reconsidering its repatriation policy in light of the changes contained in the Tax Act. The Company’s effective income tax rate was 20.5% and 84.6% for the three and nine months ended June 30, 2018 , and is expected to be approximately 71% for the full fiscal year 2018. Taxes on income and the related impacts on the effective income tax rate were as follows: (in millions) Three Months Ended June 30, 2018 Nine Months Ended June 30, 2018 Amount Percentage of Income Before Taxes Amount Percentage of Income Before Taxes Tax expense before one-time charges $ 101.5 22.7 % $ 407.1 23.5 % Transition tax on deemed repatriation of undistributed foreign earnings (45.1 ) (10.1 %) 1,075.1 62.1 % Revaluation of net deferred tax liabilities 0.1 0.0 % (53.5 ) (3.1 %) Other Tax Act impacts 35.3 7.9 % 36.8 2.1 % Total $ 91.8 20.5 % $ 1,465.5 84.6 % Other Tax Act impacts consist primarily of foreign dividend distribution taxes and tax withholdings. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings On July 28, 2016, a former employee filed a class action lawsuit captioned Cryer v. Franklin Resources, Inc., et al. in the United States District Court for the Northern District of California against Franklin, the Franklin Templeton 401(k) Retirement Plan (“Plan”) Investment Committee (“Investment Committee”), and unnamed Investment Committee members. The plaintiff asserts a claim for breach of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”), alleging that the defendants selected mutual funds sponsored and managed by the Company (the “Funds”) as investment options for the Plan when allegedly lower-cost and better performing non-proprietary investment vehicles were available. The plaintiff also claims that the total Plan costs, inclusive of investment management and administrative fees, are excessive. The plaintiff alleges that Plan losses exceed $79.0 million and seeks, among other things, damages, disgorgement, rescission of the Plan’s investments in the Funds, attorneys’ fees and costs, and pre- and post-judgment interest. On November 2, 2017, a second former employee, represented by the same law firm, filed another class action lawsuit relating to the Plan in the same court, captioned Fernandez v. Franklin Resources, Inc., et al. The plaintiff filed an amended complaint on February 6, 2018, naming the same defendants as those named in the Cryer action, as well as the Franklin Board of Directors, the Plan Administrative Committee, individual current and former Franklin directors, and individual current and former Investment Committee members. The plaintiff in this second lawsuit asserts the same ERISA breach of fiduciary duty claim asserted in the Cryer action, as well as claims for alleged prohibited transactions by virtue of the Plan’s investments in the Funds and for an alleged failure to monitor the performance of the Investment Committee. The plaintiff alleges that Plan losses exceed $60.0 million and seeks the same relief sought in the Cryer action. On April 6, 2018, the court consolidated the Fernandez action with the existing Cryer action. Management strongly believes that the claims asserted in the litigation are without merit. The fact discovery phase in the consolidated action is closed and the parties are currently in the expert discovery phase. Franklin is defending against the consolidated action vigorously. Franklin cannot at this time predict the eventual outcome of the litigation or whether it will have a material negative impact on the Company, or reasonably estimate the possible loss or range of loss that may arise from any negative outcome. The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity. In management’s opinion, an adequate accrual has been made as of June 30, 2018 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount. Other Commitments and Contingencies At June 30, 2018 , there were no material changes in the other commitments and contingencies as reported in the Company’s Form 10-K for fiscal year 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Shares Performance- Based Shares Total Shares Weighted-Average Grant-Date Fair Value for the nine months ended June 30, 2018 Nonvested balance at October 1, 2017 2,783 1,761 4,544 $ 37.23 Granted 2,260 724 2,984 42.67 Vested (149 ) (516 ) (665 ) 39.23 Forfeited/canceled (202 ) (149 ) (351 ) 44.58 Nonvested Balance at June 30, 2018 4,692 1,820 6,512 $ 39.12 Total unrecognized compensation expense related to nonvested stock and stock unit awards was $148.1 million at June 30, 2018 . This expense is expected to be recognized over a remaining weighted-average vesting period of 1.7 years . |
Other Income (Expenses)
Other Income (Expenses) | 9 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expenses) | Other Income (Expenses) Other income (expenses) consisted of the following: Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Investment and Other Income (Losses), Net Interest income $ 15.4 $ 20.3 $ 64.9 $ 49.9 Dividend income 16.6 3.3 30.0 8.4 Gains (losses) on trading investment securities, net (2.4 ) 1.1 0.1 11.5 Realized gains on sale of investment securities, available-for-sale 0.6 2.6 2.7 5.5 Realized losses on sale of investment securities, available-for-sale (0.4 ) (0.4 ) (0.8 ) (1.6 ) Income (losses) from investments in equity method investees (4.1 ) 17.9 41.8 88.4 Other-than-temporary impairment of investments (0.3 ) (0.5 ) (0.9 ) (0.8 ) Gains (losses) on investments of CIPs, net (69.9 ) 59.8 (15.3 ) 52.6 Foreign currency exchange gains (losses), net 5.8 (19.2 ) (4.9 ) (5.6 ) Other, net 4.9 7.3 17.3 14.6 Total (33.8 ) 92.2 134.9 222.9 Interest Expense (22.1 ) (12.9 ) (42.9 ) (38.8 ) Other Income (Expenses), Net $ (55.9 ) $ 79.3 $ 92.0 $ 184.1 Interest income was primarily generated by cash equivalents and trading investment securities. Substantially all of the dividend income and realized gains and losses on sale of available-for-sale securities were generated by investments in nonconsolidated funds. Proceeds from the sale of available-for-sale securities were $6.8 million and $48.2 million for the three and nine months ended June 30, 2018 , and $2.5 million and $28.3 million for the three and nine months ended June 30, 2017 . Net gains (losses) recognized on the Company’s trading investment securities that were held at June 30, 2018 and 2017 were $(1.1) million and $2.3 million for the three and nine months ended June 30, 2018 , and $1.3 million and $3.8 million for the three and nine months ended June 30, 2017 . Net gains (losses) recognized on trading investment securities of CIPs that were held at June 30, 2018 and 2017 were $(39.0) million and $(49.7) million for the three and nine months ended June 30, 2018 , and $19.9 million and $25.8 million for the three and nine months ended June 30, 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows: (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the three months ended June 30, 2018 Balance at April 1, 2018 $ 5.5 $ (258.4 ) $ (6.8 ) $ (259.7 ) Other comprehensive income (loss), net of tax 3.3 (86.7 ) 0.2 (83.2 ) Balance at June 30, 2018 $ 8.8 $ (345.1 ) $ (6.6 ) $ (342.9 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the nine months ended June 30, 2018 Balance at October 1, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) Adoption of new accounting guidance — — (0.1 ) (0.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 8.3 (62.6 ) (0.5 ) (54.8 ) Reclassifications to net investment and other income (losses), net of tax (1.7 ) (1.5 ) — (3.2 ) Total other comprehensive income (loss) 6.6 (64.1 ) (0.5 ) (58.0 ) Balance at June 30, 2018 $ 8.8 $ (345.1 ) $ (6.6 ) $ (342.9 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the three months ended June 30, 2017 Balance at April 1, 2017 $ 3.0 $ (368.1 ) $ (8.1 ) $ (373.2 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax (0.1 ) 54.0 (0.2 ) 53.7 Reclassifications to net investment and other income (losses), net of tax (1.5 ) — — (1.5 ) Total other comprehensive income (loss) (1.6 ) 54.0 (0.2 ) 52.2 Balance at June 30, 2017 $ 1.4 $ (314.1 ) $ (8.3 ) $ (321.0 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the nine months ended June 30, 2017 Balance at October 1, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) Adoption of new accounting guidance (6.8 ) (0.3 ) — (7.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 3.9 32.3 (0.2 ) 36.0 Reclassifications to net investment and other income (losses), net of tax (2.5 ) — — (2.5 ) Total other comprehensive income (loss) 1.4 32.3 (0.2 ) 33.5 Balance at June 30, 2017 $ 1.4 $ (314.1 ) $ (8.3 ) $ (321.0 ) There were no reclassifications from accumulated other comprehensive income (loss) for the three months ended June 30, 2018 . |
Fair Value Measurements Account
Fair Value Measurements Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Fair Value Measurements | Level 1 assets consist primarily of sponsored funds and other equity securities for which the fair values are based on published net asset values (“NAV”) or quoted market prices. Level 2 assets consist of debt and equity securities for which the fair values are determined using independent third-party broker or dealer price quotes. Level 3 assets consist of corporate debt securities for which the fair value is determined using market pricing, and other debt securities and life settlement contracts for which the fair values are based on discounted cash flows using significant unobservable inputs. The fair value of the contingent consideration liability is determined using an income-based method which considers the net present value of anticipated future cash flows. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in total stockholders' equity | Changes in total stockholders’ equity were as follows: (in millions) Franklin Resources, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Stockholders’ Equity for the nine months ended June 30, 2018 Balance at October 1, 2017 $ 12,620.0 $ 315.8 $ 12,935.8 Adoption of new accounting guidance 0.4 — 0.4 Net income 261.9 22.8 284.7 Other comprehensive loss (58.0 ) (58.0 ) Cash dividends declared on common stock (2,011.7 ) (2,011.7 ) Repurchase of common stock (1,078.8 ) (1,078.8 ) Stock-based compensation 102.7 102.7 Acquisition 27.0 27.0 Net redemptions and other (14.1 ) (14.1 ) Net consolidation of investment products 2.4 2.4 Balance at June 30, 2018 $ 9,863.5 $ 326.9 $ 10,190.4 (in millions) Franklin Resources, Inc. Stockholders’ Equity Nonredeemable Noncontrolling Interests Total Stockholders’ Equity for the nine months ended June 30, 2017 Balance at October 1, 2016 $ 11,935.8 $ 592.4 $ 12,528.2 Adoption of new accounting guidance (1.3 ) (324.6 ) (325.9 ) Net income 1,271.5 8.6 1,280.1 Other comprehensive income 33.5 33.5 Cash dividends declared on common stock (338.5 ) (338.5 ) Repurchase of common stock (603.1 ) (603.1 ) Stock-based compensation 102.1 102.1 Net subscriptions and other 38.0 38.0 Deconsolidation of investment product (9.3 ) (9.3 ) Balance at June 30, 2017 $ 12,400.0 $ 305.1 $ 12,705.1 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share were as follows: (in millions, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net income attributable to Franklin Resources, Inc. $ 402.0 $ 410.6 $ 261.9 $ 1,271.5 Less: allocation of earnings to participating nonvested stock and stock unit awards 3.3 3.5 17.1 9.9 Net Income Available to Common Stockholders $ 398.7 $ 407.1 $ 244.8 $ 1,261.6 Weighted-average shares outstanding – basic 533.0 556.2 542.9 560.5 Dilutive effect of nonparticipating nonvested stock unit awards 0.5 0.5 0.7 0.3 Weighted-Average Shares Outstanding – Diluted 533.5 556.7 543.6 560.8 Earnings per Share Basic $ 0.75 $ 0.73 $ 0.45 $ 2.25 Diluted 0.75 0.73 0.45 2.25 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Summary of investments | Investments consisted of the following: (in millions) June 30, September 30, Investment securities, trading Sponsored funds $ 203.7 $ 31.1 Debt and other equity securities 269.6 283.4 Total investment securities, trading 473.3 314.5 Investment securities, available-for-sale Sponsored funds 100.9 110.8 Debt and other equity securities 1.0 1.9 Total investment securities, available-for-sale 101.9 112.7 Investments in equity method investees 858.8 893.5 Other investments 75.5 72.9 Total $ 1,509.5 $ 1,393.6 |
Summary of the gross unrealized gains and losses relating to investment securities, available-for-sale | Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows: (in millions) Cost Basis Gross Unrealized Fair Value Gains Losses as of June 30, 2018 Sponsored funds $ 93.0 $ 9.7 $ (1.8 ) $ 100.9 Debt and other equity securities 1.0 — — 1.0 Total $ 94.0 $ 9.7 $ (1.8 ) $ 101.9 as of September 30, 2017 Sponsored funds $ 107.9 $ 9.4 $ (6.5 ) $ 110.8 Debt and other equity securities 1.9 — — 1.9 Total $ 109.8 $ 9.4 $ (6.5 ) $ 112.7 |
Summary of gross unrealized losses and fair values of investment securities in a continuous unrealized loss position | Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows: (in millions) Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses as of June 30, 2018 Sponsored funds $ 20.3 $ (1.3 ) $ 21.3 $ (0.5 ) $ 41.6 $ (1.8 ) as of September 30, 2017 Sponsored funds $ 28.4 $ (6.3 ) $ 2.4 $ (0.2 ) $ 30.8 $ (6.5 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liability measured at fair value on a recurring basis | The assets and liability measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 Total as of June 30, 2018 Assets Investment securities, trading Sponsored funds $ 203.7 $ — $ — $ 203.7 Debt and other equity securities 19.4 58.1 192.1 269.6 Investment securities, available-for-sale Sponsored funds 100.9 — — 100.9 Debt and other equity securities 0.2 0.5 0.3 1.0 Life settlement contracts — — 11.8 11.8 Total Assets Measured at Fair Value $ 324.2 $ 58.6 $ 204.2 $ 587.0 Liability Contingent consideration liability $ — $ — $ 35.6 $ 35.6 (in millions) Level 1 Level 2 Level 3 Total as of September 30, 2017 Assets Investment securities, trading Sponsored funds $ 31.1 $ — $ — $ 31.1 Debt and other equity securities 18.2 78.4 186.8 283.4 Investment securities, available-for-sale Sponsored funds 110.8 — — 110.8 Debt and other equity securities 1.0 0.6 0.3 1.9 Life settlement contracts — — 12.8 12.8 Total Assets Measured at Fair Value $ 161.1 $ 79.0 $ 199.9 $ 440.0 Liability Contingent consideration liability $ — $ — $ 51.0 $ 51.0 |
Schedule of changes in Level 3 assets and liabilities | Changes in the Level 3 assets and liabilities were as follows: 2018 2017 (in millions) Investments Contingent Investments Contingent for the three months ended June 30, Balance at beginning of period $ 208.1 $ (31.2 ) $ 211.0 $ (60.4 ) Total realized and unrealized gains (losses) Included in investment and other income, net 1.0 — 1.7 — Included in general, administrative and other expense — (4.4 ) — 5.6 Purchases 5.4 — 1.3 — Sales (0.4 ) — — — Settlements (1.1 ) — (0.1 ) — Foreign exchange revaluation and other (8.8 ) — 0.9 — Balance at End of Period $ 204.2 $ (35.6 ) $ 214.8 $ (54.8 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period $ 0.4 $ (4.4 ) $ 2.2 $ (0.1 ) 2018 2017 (in millions) Investments Contingent Investments Contingent for the nine months ended June 30, Balance at beginning of period $ 199.9 $ (51.0 ) $ 205.1 $ (98.1 ) Acquisition — — — (5.7 ) Total realized and unrealized gains (losses) Included in investment and other income, net 4.0 — 7.3 — Included in general, administrative and other expense — (10.0 ) — 13.6 Purchases 12.1 — 2.1 — Sales (0.4 ) — (2.4 ) — Settlements (3.0 ) 32.4 (2.6 ) 35.4 Transfers out of Level 3 — — (0.4 ) — Foreign exchange revaluation and other (8.4 ) (7.0 ) 5.7 — Balance at End of Period $ 204.2 $ (35.6 ) $ 214.8 $ (54.8 ) Change in unrealized gains (losses) included in net income relating to assets and liabilities held at end of period $ 2.4 $ (10.0 ) $ 6.2 $ 7.9 |
Schedule of valuation techniques and significant unobservable inputs used in level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in the Level 3 fair value measurements were as follows: (in millions) as of June 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 171.3 Market pricing Redemption price $73 per $100 of par Discount rate 18.7% 20.8 Discounted cash flow Discount rate 3.4%–6.6% (5.4%) Risk premium 2.0%–4.7% (3.1%) Life settlement contracts 11.8 Discounted cash flow Life expectancy 20–117 months (62) Discount rate 8.0%–20.0% (13.1%) Contingent consideration liability 35.6 Discounted cash flow AUM growth rate (3.4%) Discount rate 13.8% (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Investment securities, trading – debt and other equity securities $ 175.7 Market pricing Redemption price $73 per $100 of par Discount rate 18.6% 11.1 Discounted cash flow Discount rate 4.1%–6.7% (5.7%) Risk premium 2.0%–4.1% (2.9%) Life settlement contracts 12.8 Discounted cash flow Life expectancy 20–123 months (62) Discount rate 8.0%–20.0% (13.2%) Contingent consideration liability 51.0 Discounted cash flow AUM growth rate 1.3%–9.4% (5.3%) Discount rate 14.6% |
Schedule of financial instruments not measured at fair value | Financial instruments that were not measured at fair value were as follows: (in millions) Fair Value Level June 30, 2018 September 30, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets Cash and cash equivalents 1 $ 6,422.6 $ 6,422.6 $ 8,523.3 $ 8,523.3 Other investments Time deposits 2 12.2 12.2 13.4 13.4 Cost method investments 3 51.5 73.7 46.7 67.7 Financial Liability Debt 2 $ 695.7 $ 685.0 $ 1,044.2 $ 1,073.5 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Debt consisted of the following: June 30, Effective Interest Rate September 30, Effective Interest Rate (in millions) Senior Notes $350 million 4.625% notes due May 2020 $ — N/A $ 349.9 4.74 % $300 million 2.800% notes due September 2022 299.7 2.93 % 299.6 2.93 % $400 million 2.850% notes due March 2025 399.5 2.97 % 399.5 2.97 % Total senior notes 699.2 1,049.0 Debt issuance costs (3.5 ) (4.8 ) Total $ 695.7 $ 1,044.2 |
Consolidated Investment Produ27
Consolidated Investment Products (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Consolidated Investment Products [Abstract] | |
Schedule of balances of CIPs | The balances related to CIPs included in the Company’s consolidated balance sheets were as follows: (in millions) June 30, September 30, Assets Cash and cash equivalents $ 231.6 $ 226.4 Receivables 132.0 234.1 Investments, at fair value 3,331.1 3,467.4 Other assets 1.0 0.9 Total Assets $ 3,695.7 $ 3,928.8 Liabilities Accounts payable and accrued expenses $ 76.3 $ 124.1 Debt 34.1 53.4 Other liabilities 8.9 8.7 Total liabilities 119.3 186.2 Redeemable Noncontrolling Interests 2,031.6 1,941.9 Stockholders ’ Equity Franklin Resources, Inc.’s interests 1,244.2 1,511.8 Nonredeemable noncontrolling interests 300.6 288.9 Total stockholders’ equity 1,544.8 1,800.7 Total Liabilities, Redeemable Noncontrolling Interests and Stockholders ’ Equity $ 3,695.7 $ 3,928.8 |
Schedule of investments of CIPs | Investments of CIPs consisted of the following: (in millions) June 30, September 30, Investment securities, trading $ 2,861.3 $ 3,017.2 Other equity securities 346.9 306.9 Other debt securities 122.9 143.3 Total $ 3,331.1 $ 3,467.4 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities of CIPs measured at fair value on a recurring basis were as follows: (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of June 30, 2018 Assets Investments Equity securities $ 307.1 $ 307.1 $ 187.5 $ 160.8 $ 962.5 Debt securities 3.4 2,242.3 122.9 — 2,368.6 Total Assets Measured at Fair Value $ 310.5 $ 2,549.4 $ 310.4 $ 160.8 $ 3,331.1 Liabilities Other liabilities $ 0.6 $ 8.3 $ — $ — $ 8.9 (in millions) Level 1 Level 2 Level 3 NAV as a Practical Expedient Total as of September 30, 2017 Assets Investments Equity securities $ 331.4 $ 128.1 $ 160.7 $ 155.2 $ 775.4 Debt securities 1.4 2,555.2 135.4 — 2,692.0 Total Assets Measured at Fair Value $ 332.8 $ 2,683.3 $ 296.1 $ 155.2 $ 3,467.4 Liabilities Other liabilities $ 0.4 $ 8.3 $ — $ — $ 8.7 |
Schedule of changes in Level 3 assets of CIPs | Changes in Level 3 assets were as follows: 2018 2017 (in millions) Equity Debt Total Equity Debt Total for the three months ended June 30, Balance at beginning of period $ 188.4 $ 112.2 $ 300.6 $ 140.7 $ 114.4 $ 255.1 Realized and unrealized gains (losses) included in investment and other income, net 5.4 0.3 5.7 (10.3 ) 18.3 8.0 Purchases 0.1 5.0 5.1 4.7 15.5 20.2 Sales (2.6 ) (0.1 ) (2.7 ) (0.5 ) (4.7 ) (5.2 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (3.8 ) (1.0 ) (4.8 ) 2.4 2.4 4.8 Balance at End of Period $ 187.5 $ 122.9 $ 310.4 $ 137.0 $ 145.3 $ 282.3 Change in unrealized gains (losses) included in net income relating to assets held at end of period $ 0.9 $ 0.2 $ 1.1 $ (10.3 ) $ 18.2 $ 7.9 2018 2017 (in millions) Equity Debt Total Equity Debt Total for the nine months ended June 30, Balance at beginning of period $ 160.7 $ 135.4 $ 296.1 $ 160.3 $ 132.3 $ 292.6 Adoption of new accounting guidance — — — (45.4 ) (0.5 ) (45.9 ) Realized and unrealized gains (losses) included in investment and other income, net 22.9 2.4 25.3 (9.4 ) 3.8 (5.6 ) Purchases 22.7 15.5 38.2 30.2 23.3 53.5 Sales (17.5 ) (37.8 ) (55.3 ) (0.6 ) (13.0 ) (13.6 ) Settlements — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Consolidation — 7.0 7.0 — — — Foreign exchange revaluation (1.3 ) 0.9 (0.4 ) 1.9 — 1.9 Balance at End of Period $ 187.5 $ 122.9 $ 310.4 $ 137.0 $ 145.3 $ 282.3 Change in unrealized gains (losses) included in net income relating to assets held at end of period $ 17.5 $ (2.1 ) $ 15.4 $ 0.7 $ 3.2 $ 3.9 |
Schedule of valuation techniques and significant unobservable inputs used in Level 3 fair value measurements | Valuation techniques and significant unobservable inputs used in Level 3 fair value measurements were as follows: (in millions) as of June 30, 2018 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 159.8 Market comparable companies EBITDA multiple 5.9–13.6 (9.4) 27.7 Discounted cash flow Discount rate 8.1%–16.5% (14.1%) Debt securities 76.9 Discounted cash flow Discount rate 7.0%–14.8% (10.7%) 30.9 Comparable trading multiple Price to earnings ratio 10.0 Enterprise value/ 20.9 12.0 Discounted cash flow Loss-adjusted discount rate 3.0%–62.3% (10.7%) 3.1 Market pricing Private sale pricing $33 per $100 of par (in millions) as of September 30, 2017 Fair Value Valuation Technique Significant Unobservable Inputs Range (Weighted Average) Equity securities $ 101.9 Market comparable companies EBITDA multiple 5.5–12.3 (9.0) 44.4 Discounted cash flow Discount rate 5.7%–17.9% (14.3%) 14.4 Market pricing Price to earnings ratio 10.0 Debt securities 112.7 Discounted cash flow Discount rate 5.0%–33.0% (9.5%) Risk premium 0.0%–25.0% (8.4%) 22.7 Market pricing Private sale pricing $33–$57 ($52) per $100 of par |
Schedule of financial instruments of CIPs not measured at fair value | Financial instruments of CIPs that were not measured at fair value were as follows: (in millions) Fair Value Level June 30, 2018 September 30, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Asset Cash and cash equivalents 1 $ 231.6 $ 231.6 $ 226.4 $ 226.4 Financial Liability Debt 3 $ 34.1 $ 33.9 $ 53.4 $ 53.1 |
Schedule of changes in redeemable noncontrolling interests of CIPs | Changes in redeemable noncontrolling interests of CIPs were as follows: (in millions) for the nine months ended June 30, 2018 2017 Balance at beginning of period $ 1,941.9 $ 61.1 Adoption of new accounting guidance — 824.7 Net income (loss) (18.3 ) 33.1 Net subscriptions and other 137.8 489.4 Net consolidations (deconsolidations) (29.8 ) 422.3 Balance at End of Period $ 2,031.6 $ 1,830.6 |
Nonconsolidated Variable Inte28
Nonconsolidated Variable Interest Entities (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of maximum exposure loss from nonconsolidated VIEs | The Company’s maximum exposure to loss from these VIEs consists of investment management fee receivables and equity investments as follows: (in millions) June 30, September 30, Receivables $ 147.3 $ 155.6 Investments 84.7 129.3 Total $ 232.0 $ 284.9 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of deferred tax assets and liabilities | Deferred tax assets and deferred tax liabilities were as follows: (in millions) June 30, September 30, Deferred tax assets, net of valuation allowance $ 92.4 $ 141.3 Deferred tax liabilities 199.4 296.1 Net Deferred Tax Liability $ 107.0 $ 154.8 |
Components of net deferred tax liability as classified in the consolidated balance sheets | The components of the net deferred tax liability were classified in the consolidated balance sheets as follows: (in millions) June 30, September 30, Other assets $ 21.0 $ 15.8 Deferred tax liabilities 128.0 170.6 Net Deferred Tax Liability $ 107.0 $ 154.8 |
Taxes on income and the related impact on the effective income tax rate | Taxes on income and the related impacts on the effective income tax rate were as follows: (in millions) Three Months Ended June 30, 2018 Nine Months Ended June 30, 2018 Amount Percentage of Income Before Taxes Amount Percentage of Income Before Taxes Tax expense before one-time charges $ 101.5 22.7 % $ 407.1 23.5 % Transition tax on deemed repatriation of undistributed foreign earnings (45.1 ) (10.1 %) 1,075.1 62.1 % Revaluation of net deferred tax liabilities 0.1 0.0 % (53.5 ) (3.1 %) Other Tax Act impacts 35.3 7.9 % 36.8 2.1 % Total $ 91.8 20.5 % $ 1,465.5 84.6 % Other Tax Act impacts consist primarily of foreign dividend distribution taxes and tax withholdings. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Summary of nonvested stock and stock unit award activity | Stock and stock unit award activity was as follows: (shares in thousands) Time-Based Shares Performance- Based Shares Total Shares Weighted-Average Grant-Date Fair Value for the nine months ended June 30, 2018 Nonvested balance at October 1, 2017 2,783 1,761 4,544 $ 37.23 Granted 2,260 724 2,984 42.67 Vested (149 ) (516 ) (665 ) 39.23 Forfeited/canceled (202 ) (149 ) (351 ) 44.58 Nonvested Balance at June 30, 2018 4,692 1,820 6,512 $ 39.12 |
Other Income (Expenses) (Tables
Other Income (Expenses) (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expenses) | Other income (expenses) consisted of the following: Three Months Ended Nine Months Ended (in millions) 2018 2017 2018 2017 Investment and Other Income (Losses), Net Interest income $ 15.4 $ 20.3 $ 64.9 $ 49.9 Dividend income 16.6 3.3 30.0 8.4 Gains (losses) on trading investment securities, net (2.4 ) 1.1 0.1 11.5 Realized gains on sale of investment securities, available-for-sale 0.6 2.6 2.7 5.5 Realized losses on sale of investment securities, available-for-sale (0.4 ) (0.4 ) (0.8 ) (1.6 ) Income (losses) from investments in equity method investees (4.1 ) 17.9 41.8 88.4 Other-than-temporary impairment of investments (0.3 ) (0.5 ) (0.9 ) (0.8 ) Gains (losses) on investments of CIPs, net (69.9 ) 59.8 (15.3 ) 52.6 Foreign currency exchange gains (losses), net 5.8 (19.2 ) (4.9 ) (5.6 ) Other, net 4.9 7.3 17.3 14.6 Total (33.8 ) 92.2 134.9 222.9 Interest Expense (22.1 ) (12.9 ) (42.9 ) (38.8 ) Other Income (Expenses), Net $ (55.9 ) $ 79.3 $ 92.0 $ 184.1 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in accumulated other comprehensive income (loss) by component | Changes in accumulated other comprehensive income (loss) by component were as follows: (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the three months ended June 30, 2018 Balance at April 1, 2018 $ 5.5 $ (258.4 ) $ (6.8 ) $ (259.7 ) Other comprehensive income (loss), net of tax 3.3 (86.7 ) 0.2 (83.2 ) Balance at June 30, 2018 $ 8.8 $ (345.1 ) $ (6.6 ) $ (342.9 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the nine months ended June 30, 2018 Balance at October 1, 2017 $ 2.2 $ (281.0 ) $ (6.0 ) $ (284.8 ) Adoption of new accounting guidance — — (0.1 ) (0.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 8.3 (62.6 ) (0.5 ) (54.8 ) Reclassifications to net investment and other income (losses), net of tax (1.7 ) (1.5 ) — (3.2 ) Total other comprehensive income (loss) 6.6 (64.1 ) (0.5 ) (58.0 ) Balance at June 30, 2018 $ 8.8 $ (345.1 ) $ (6.6 ) $ (342.9 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the three months ended June 30, 2017 Balance at April 1, 2017 $ 3.0 $ (368.1 ) $ (8.1 ) $ (373.2 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax (0.1 ) 54.0 (0.2 ) 53.7 Reclassifications to net investment and other income (losses), net of tax (1.5 ) — — (1.5 ) Total other comprehensive income (loss) (1.6 ) 54.0 (0.2 ) 52.2 Balance at June 30, 2017 $ 1.4 $ (314.1 ) $ (8.3 ) $ (321.0 ) (in millions) Unrealized Currency Translation Adjustments Unrealized Losses on Defined Benefit Plans Total for the nine months ended June 30, 2017 Balance at October 1, 2016 $ 6.8 $ (346.1 ) $ (8.1 ) $ (347.4 ) Adoption of new accounting guidance (6.8 ) (0.3 ) — (7.1 ) Other comprehensive income (loss) Other comprehensive income (loss) before reclassifications, net of tax 3.9 32.3 (0.2 ) 36.0 Reclassifications to net investment and other income (losses), net of tax (2.5 ) — — (2.5 ) Total other comprehensive income (loss) 1.4 32.3 (0.2 ) 33.5 Balance at June 30, 2017 $ 1.4 $ (314.1 ) $ (8.3 ) $ (321.0 ) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 11, 2018 | |
Stockholders' Equity Note [Abstract] | |||||
Number of shares repurchased during period | 13.4 | 4.1 | 29.1 | 15.2 | |
Cost of shares repurchased during period | $ 446.2 | $ 174.6 | $ 1,078.8 | $ 603.1 | |
Remaining number of shares authorized to be repurchased | 82.5 | 82.5 | |||
Additional number of shares authorized to be repurchased | 80 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 01, 2017 | Oct. 01, 2016 | |
Stockholders' Equity [Roll Forward] | ||||||
Beginning balance - Franklin Resources, Inc. Stockholders' Equity | $ 12,620 | |||||
Beginning balance - Nonredeemable Noncontrolling Interests | 315.8 | |||||
Beginning balance - Total Stockholders' Equity | 12,935.8 | $ 12,528.2 | ||||
Net income attributable to Franklin Resources, Inc. | $ 402 | $ 410.6 | 261.9 | 1,271.5 | ||
Nonredeemable noncontrolling interests | (1.6) | 12.5 | 22.8 | 8.6 | ||
Net income | 284.7 | 1,280.1 | ||||
Other comprehensive income | (83.2) | 52.2 | (58) | 33.5 | ||
Cash dividends declared on common stock | (2,011.7) | (338.5) | ||||
Repurchase of common stock | (446.2) | (174.6) | (1,078.8) | (603.1) | ||
Stock-based compensation | 102.7 | 102.1 | ||||
Acquisition | 27 | |||||
Net redemptions and other | (14.1) | 38 | ||||
Net consolidation of investment products | 2.4 | (9.3) | ||||
Ending balance - Franklin Resources, Inc. Stockholders' Equity | 9,863.5 | 9,863.5 | ||||
Ending balance - Nonredeemable Noncontrolling Interests | 326.9 | 326.9 | ||||
Ending balance - Total Stockholders' Equity | 10,190.4 | 12,705.1 | 10,190.4 | 12,705.1 | ||
Franklin Resources, Inc. Stockholders' Equity [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Beginning balance - Franklin Resources, Inc. Stockholders' Equity | 12,620 | 11,935.8 | ||||
Net income attributable to Franklin Resources, Inc. | 261.9 | 1,271.5 | ||||
Other comprehensive income | (58) | 33.5 | ||||
Cash dividends declared on common stock | (2,011.7) | (338.5) | ||||
Repurchase of common stock | (1,078.8) | (603.1) | ||||
Stock-based compensation | 102.7 | 102.1 | ||||
Acquisition | 27 | |||||
Ending balance - Franklin Resources, Inc. Stockholders' Equity | 9,863.5 | 12,400 | 9,863.5 | 12,400 | ||
Nonredeemable Noncontrolling Interests [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Beginning balance - Nonredeemable Noncontrolling Interests | 315.8 | 592.4 | ||||
Nonredeemable noncontrolling interests | 22.8 | 8.6 | ||||
Net redemptions and other | (14.1) | 38 | ||||
Net consolidation of investment products | 2.4 | (9.3) | ||||
Ending balance - Nonredeemable Noncontrolling Interests | $ 326.9 | $ 305.1 | $ 326.9 | $ 305.1 | ||
ASU 2016-09 [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | $ 0.4 | |||||
ASU 2016-09 [Member] | Franklin Resources, Inc. Stockholders' Equity [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | 0.4 | |||||
ASU 2016-09 [Member] | Nonredeemable Noncontrolling Interests [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | $ 0 | |||||
ASU 2015-02 [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | $ (325.9) | |||||
ASU 2015-02 [Member] | Franklin Resources, Inc. Stockholders' Equity [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | (1.3) | |||||
ASU 2015-02 [Member] | Nonredeemable Noncontrolling Interests [Member] | ||||||
Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting guidance | $ (324.6) |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Shares of nonparticipating nonvested stock unit awards excluded from the calculation of diluted EPS | 0.8 | 0.2 | 0.3 | 0.7 |
Earnings per Share - Components
Earnings per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income attributable to Franklin Resources, Inc. | $ 402 | $ 410.6 | $ 261.9 | $ 1,271.5 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic | 3.3 | 3.5 | 17.1 | 9.9 |
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted | 3.3 | 3.5 | 17.1 | 9.9 |
Net Income Available to Common Stockholders - basic | 398.7 | 407.1 | 244.8 | 1,261.6 |
Net Income Available to Common Stockholders - diluted | $ 398.7 | $ 407.1 | $ 244.8 | $ 1,261.6 |
Weighted-average shares outstanding – basic | 533 | 556.2 | 542.9 | 560.5 |
Dilutive effect of nonparticipating nonvested stock unit awards | 0.5 | 0.5 | 0.7 | 0.3 |
Weighted-Average Shares Outstanding – Diluted | 533.5 | 556.7 | 543.6 | 560.8 |
Earnings per Share [Abstract] | ||||
Basic | $ 0.75 | $ 0.73 | $ 0.45 | $ 2.25 |
Diluted | $ 0.75 | $ 0.73 | $ 0.45 | $ 2.25 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Investments [Abstract] | |||||
Aggregate carrying amounts of investment securities pledged as collateral | $ 1.2 | $ 1.2 | $ 0.8 | ||
Other-than-temporary impairment of investments | $ 0.3 | $ 0.5 | $ 0.9 | $ 0.8 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Investment Holdings [Line Items] | ||
Investment securities, trading | $ 473.3 | $ 314.5 |
Investment securities, available-for-sale | 101.9 | 112.7 |
Investments in equity method investees | 858.8 | 893.5 |
Other investments | 75.5 | 72.9 |
Total | 1,509.5 | 1,393.6 |
Sponsored Funds [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, trading | 203.7 | 31.1 |
Investment securities, available-for-sale | 100.9 | 110.8 |
Debt and Other Equity Securities [Member] | ||
Investment Holdings [Line Items] | ||
Investment securities, trading | 269.6 | 283.4 |
Investment securities, available-for-sale | $ 1 | $ 1.9 |
Investments - Summary of Gross
Investments - Summary of Gross Unrealized Gains and Losses Relating to Investment Securities, Available-for-Sale (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Investment Holdings [Line Items] | ||
Cost Basis | $ 94 | $ 109.8 |
Gross Unrealized Gains | 9.7 | 9.4 |
Gross Unrealized Losses | (1.8) | (6.5) |
Fair Value | 101.9 | 112.7 |
Sponsored Funds [Member] | ||
Investment Holdings [Line Items] | ||
Cost Basis | 93 | 107.9 |
Gross Unrealized Gains | 9.7 | 9.4 |
Gross Unrealized Losses | (1.8) | (6.5) |
Fair Value | 100.9 | 110.8 |
Debt and Other Equity Securities [Member] | ||
Investment Holdings [Line Items] | ||
Cost Basis | 1 | 1.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 1.9 |
Investments - Summary of Gros40
Investments - Summary of Gross Unrealized Losses, AFS, Continuous Loss Position (Details) - Sponsored Funds [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 20.3 | $ 28.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses | (1.3) | (6.3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value | 21.3 | 2.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses | (0.5) | (0.2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 41.6 | 30.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses | $ (1.8) | $ (6.5) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Transfers into Level 1 from Level 2 - assets | $ 0.5 | $ 0 | $ 0.5 | $ 0 |
Transfers into Level 2 from Level 1 - assets | 0.5 | 0 | 0.5 | 0 |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 | 0 | 0 |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 | 0 | 0 |
Transfers into Level 3 - assets | 0 | 0 | 0 | 0 |
Transfers into Level 3 - liabilities | 0 | 0 | 0 | 0 |
Transfers out of Level 3 - assets | 0 | 0 | 0 | 0 |
Transfers out of Level 3 - liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liability Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Assets [Abstract] | ||
Investment securities, trading | $ 473.3 | $ 314.5 |
Investment securities, available-for-sale | 101.9 | 112.7 |
Life settlement contracts | 11.8 | 12.8 |
Total Assets Measured at Fair Value | 587 | 440 |
Liability [Abstract] | ||
Contingent consideration liability | 35.6 | 51 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 324.2 | 161.1 |
Liability [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 0 | 0 |
Total Assets Measured at Fair Value | 58.6 | 79 |
Liability [Abstract] | ||
Contingent consideration liability | 0 | 0 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Life settlement contracts | 11.8 | 12.8 |
Total Assets Measured at Fair Value | 204.2 | 199.9 |
Liability [Abstract] | ||
Contingent consideration liability | 35.6 | 51 |
Sponsored Funds [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 203.7 | 31.1 |
Investment securities, available-for-sale | 100.9 | 110.8 |
Sponsored Funds [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 203.7 | 31.1 |
Investment securities, available-for-sale | 100.9 | 110.8 |
Sponsored Funds [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Sponsored Funds [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Debt and Other Equity Securities [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 269.6 | 283.4 |
Investment securities, available-for-sale | 1 | 1.9 |
Debt and Other Equity Securities [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 19.4 | 18.2 |
Investment securities, available-for-sale | 0.2 | 1 |
Debt and Other Equity Securities [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 58.1 | 78.4 |
Investment securities, available-for-sale | 0.5 | 0.6 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investment securities, trading | 192.1 | 186.8 |
Investment securities, available-for-sale | $ 0.3 | $ 0.3 |
Fair Value Measurements - Sch43
Fair Value Measurements - Schedule of Changes in Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfers out of Level 3 - assets | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers out of Level 3 - liabilities | 0 | 0 | 0 | 0 |
Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period - assets | 300.6 | 255.1 | 296.1 | 292.6 |
Total realized and unrealized gains (losses) - assets | 5.7 | 8 | 25.3 | (5.6) |
Purchases - assets | 5.1 | 20.2 | 38.2 | 53.5 |
Sales - assets | (2.7) | (5.2) | (55.3) | (13.6) |
Settlements - assets | (0.5) | (0.6) | (0.5) | (0.6) |
Balance at End of Period - assets | 310.4 | 282.3 | 310.4 | 282.3 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period | 1.1 | 7.9 | 15.4 | 3.9 |
Level 3 [Member] | Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period - assets | 208.1 | 211 | 199.9 | 205.1 |
Acquisition - assets | 0 | 0 | ||
Purchases - assets | 5.4 | 1.3 | 12.1 | 2.1 |
Sales - assets | (0.4) | 0 | (0.4) | (2.4) |
Settlements - assets | (1.1) | (0.1) | (3) | (2.6) |
Transfers out of Level 3 - assets | 0 | 0.4 | ||
Foreign exchange revaluation and other | (8.8) | 0.9 | (8.4) | 5.7 |
Balance at End of Period - assets | 204.2 | 214.8 | 204.2 | 214.8 |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period | 0.4 | 2.2 | 2.4 | 6.2 |
Level 3 [Member] | Contingent Consideration Liability [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period - liabilities | (31.2) | (60.4) | (51) | (98.1) |
Acquisition - liabilities | 0 | 5.7 | ||
Purchases - liability | 0 | 0 | 0 | 0 |
Sales - liability | 0 | 0 | 0 | 0 |
Settlements - liability | 0 | 0 | 32.4 | 35.4 |
Transfers out of Level 3 - liabilities | 0 | 0 | ||
Foreign exchange revaluation and other | 0 | 0 | (7) | 0 |
Balance at End of Period - liabilities | (35.6) | (54.8) | (35.6) | (54.8) |
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period | (4.4) | (0.1) | (10) | 7.9 |
Level 3 [Member] | Investment and other income [Member] | Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized and unrealized gains (losses) - assets | 1 | 1.7 | 4 | 7.3 |
Level 3 [Member] | Investment and other income [Member] | Contingent Consideration Liability [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized and unrealized gains (losses) - liability | 0 | 0 | 0 | 0 |
Level 3 [Member] | 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 |
Level 3 [Member] | General, administrative and other expense [Member] | Contingent Consideration Liability [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total realized and unrealized gains (losses) - liability | $ (4.4) | $ 5.6 | $ (10) | $ 13.6 |
Fair Value Measurements - Sch44
Fair Value Measurements - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 473.3 | $ 314.5 |
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | 35.6 | 51 |
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | 35.6 | 51 |
Discounted cash flow [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Life settlement contracts | 11.8 | 12.8 |
Contingent consideration liability | $ 35.6 | $ 51 |
Contingent Consideration Liability [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 1.30% | |
Contingent Consideration Liability [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
AUM growth rate | 9.40% | |
Contingent Consideration Liability [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 13.80% | 14.60% |
AUM growth rate | (3.40%) | 5.30% |
Life Settlement Contracts [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Life expectancy | 20 months | 20 months |
Life Settlement Contracts [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Life expectancy | 117 months | 123 months |
Life Settlement Contracts [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 13.10% | 13.20% |
Life expectancy | 62 months | 62 months |
Debt and Other Equity Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 269.6 | $ 283.4 |
Debt and Other Equity Securities [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | 192.1 | 186.8 |
Debt and Other Equity Securities [Member] | Discounted cash flow [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | 20.8 | 11.1 |
Debt and Other Equity Securities [Member] | Market Pricing [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities, trading | $ 171.3 | $ 175.7 |
Debt and Other Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 3.40% | 4.10% |
Risk premium | 2.00% | 2.00% |
Debt and Other Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 6.60% | 6.70% |
Risk premium | 4.70% | 4.10% |
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 5.40% | 5.70% |
Risk premium | 3.10% | 2.90% |
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Market Pricing [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Redemption price | $ 0.73 | $ 0.73 |
Discount rate | 18.70% | 18.60% |
Fair Value Measurements - Sch45
Fair Value Measurements - Schedule of Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,654.2 | $ 8,749.7 | $ 8,786.2 | $ 8,483.3 |
Financial Liability [Abstract] | ||||
Debt | 699.2 | 1,049 | ||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,422.6 | 8,523.3 | ||
Time deposits | 12.2 | 13.4 | ||
Cost method investments | 51.5 | 46.7 | ||
Financial Liability [Abstract] | ||||
Debt | 695.7 | 1,044.2 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,422.6 | 8,523.3 | ||
Estimated Fair Value [Member] | Level 2 [Member] | ||||
Financial Assets [Abstract] | ||||
Time deposits | 12.2 | 13.4 | ||
Financial Liability [Abstract] | ||||
Debt | 685 | 1,073.5 | ||
Estimated Fair Value [Member] | Level 3 [Member] | ||||
Financial Assets [Abstract] | ||||
Cost method investments | $ 73.7 | $ 67.7 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | May 21, 2018 | Jun. 30, 2018 |
Debt Disclosure [Abstract] | ||
Face value of senior unsecured and unsubordinated notes | $ 700 | |
Notes Due May 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.625% | |
Redemption price | $ 361.9 | |
Accelerated interest expense | $ (12.5) | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Commercial paper available for issuance under an uncommitted private placement program | $ 500 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Details) - USD ($) $ in Millions | Jun. 30, 2018 | May 21, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Senior notes | $ 699.2 | $ 1,049 | |
Debt issuance costs | (3.5) | (4.8) | |
Total | 695.7 | 1,044.2 | |
Notes Due May 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | 350 | ||
Stated interest rate | 4.625% | ||
Senior notes | 0 | $ 349.9 | |
Effective Interest Rate | 4.74% | ||
Notes Due September 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | $ 300 | ||
Stated interest rate | 2.80% | ||
Senior notes | $ 299.7 | $ 299.6 | |
Effective Interest Rate | 2.93% | 2.93% | |
Notes Due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of senior notes | $ 400 | ||
Stated interest rate | 2.85% | ||
Senior notes | $ 399.5 | $ 399.5 | |
Effective Interest Rate | 2.97% | 2.97% |
Consolidated Investment Produ48
Consolidated Investment Products - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Consolidated Investment Products [Abstract] | |||||
Number of consolidated investment products | 55 | 55 | 58 | ||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Transfers into Level 2 from Level 1 - assets | $ 0.5 | $ 0 | $ 0.5 | $ 0 | |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 1 from Level 2 - assets | 0.5 | 0 | 0.5 | 0 | |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 3 - assets | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 - assets | 0 | 0 | 0 | 0 | |
Transfers into Level 3 - liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 - liabilities | 0 | 0 | 0 | 0 | |
Debt | 695.7 | 695.7 | $ 1,044.2 | ||
CIPs [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Transfers into Level 2 from Level 1 - assets | 3.5 | 0 | 3.5 | 0 | |
Transfers into Level 2 from Level 1 - liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 1 from Level 2 - assets | 2.8 | 0 | 2.8 | 0 | |
Transfers into Level 1 from Level 2 - liabilities | 0 | 0 | 0 | 0 | |
Transfers into Level 3 - assets | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 - assets | 0 | 0 | 0 | 0 | |
Transfers into Level 3 - liabilities | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 - liabilities | 0 | $ 0 | $ 0 | $ 0 | |
Number of countries impacted by price changes | 11 | ||||
CIPs' unfunded commitments | 1.9 | $ 1.9 | |||
Unfunded commitments Company contractually obligated to fund | 0.4 | 0.4 | |||
Debt | $ 34.1 | $ 34.1 | $ 53.4 | ||
Effective Interest Rate | 6.65% | 6.65% | 5.15% | ||
CIPs [Member] | Real Estate and Private Equity Funds [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Liquidation weighted average period | 3 years 8 months | 4 years 5 months | |||
CIPs [Member] | Minimum [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Stated interest rate | 3.07% | 3.07% | 2.84% | ||
CIPs [Member] | Maximum [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Stated interest rate | 7.63% | 7.63% | 6.75% |
Consolidated Investment Produ49
Consolidated Investment Products - Schedule of Balances of CIPs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,654.2 | $ 8,749.7 | $ 8,786.2 | $ 8,483.3 |
Receivables | 814.9 | 767.8 | ||
Investments, at fair value | 587 | 440 | ||
Other assets | 211 | 176.5 | ||
Total Assets | 15,528 | 17,534 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 177.5 | 167.4 | ||
Debt | 695.7 | 1,044.2 | ||
Other liabilities | 190.9 | 198.7 | ||
Total liabilities | 3,306 | 2,656.3 | ||
Redeemable Noncontrolling Interests | 2,031.6 | 1,941.9 | 1,830.6 | 61.1 |
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 9,863.5 | 12,620 | ||
Nonredeemable noncontrolling interests | 326.9 | 315.8 | ||
Total stockholders’ equity | 10,190.4 | 12,935.8 | $ 12,705.1 | $ 12,528.2 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | 15,528 | 17,534 | ||
CIPs [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 231.6 | 226.4 | ||
Receivables | 132 | 234.1 | ||
Investments, at fair value | 3,331.1 | 3,467.4 | ||
Other assets | 1 | 0.9 | ||
Total Assets | 3,695.7 | 3,928.8 | ||
Liabilities [Abstract] | ||||
Accounts payable and accrued expenses | 76.3 | 124.1 | ||
Debt | 34.1 | 53.4 | ||
Other liabilities | 8.9 | 8.7 | ||
Total liabilities | 119.3 | 186.2 | ||
Redeemable Noncontrolling Interests | 2,031.6 | 1,941.9 | ||
Stockholders' Equity [Abstract] | ||||
Franklin Resources, Inc.’s interests | 1,244.2 | 1,511.8 | ||
Nonredeemable noncontrolling interests | 300.6 | 288.9 | ||
Total stockholders’ equity | 1,544.8 | 1,800.7 | ||
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity | $ 3,695.7 | $ 3,928.8 |
Consolidated Investment Produ50
Consolidated Investment Products - Schedule of Investments of CIPs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Schedule Of Consolidated Investment Products [Line Items] | ||
Investment securities, trading | $ 473.3 | $ 314.5 |
Other investments | 75.5 | 72.9 |
Fair value | 587 | 440 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investment securities, trading | 2,861.3 | 3,017.2 |
Fair value | 3,331.1 | 3,467.4 |
Equity Securities [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Other investments | 346.9 | 306.9 |
Debt Securities [Member] | CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Other investments | $ 122.9 | $ 143.3 |
Consolidated Investment Produ51
Consolidated Investment Products - Schedule of Balances of Assets and Liabilities of CIPs Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Assets [Abstract] | ||
Investments, at fair value | $ 587 | $ 440 |
Total Assets Measured at Fair Value | 587 | 440 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 324.2 | 161.1 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 58.6 | 79 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 204.2 | 199.9 |
CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 3,331.1 | 3,467.4 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 3,331.1 | 3,467.4 |
Liability [Abstract] | ||
Other liabilities | 8.9 | 8.7 |
NAV as a Practical Expedient | 160.8 | 155.2 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 310.5 | 332.8 |
Liability [Abstract] | ||
Other liabilities | 0.6 | 0.4 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 2,549.4 | 2,683.3 |
Liability [Abstract] | ||
Other liabilities | 8.3 | 8.3 |
Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Total Assets Measured at Fair Value | 310.4 | 296.1 |
Liability [Abstract] | ||
Other liabilities | 0 | 0 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2,368.6 | 2,692 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 3.4 | 1.4 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 2,242.3 | 2,555.2 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 122.9 | 135.4 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 962.5 | 775.4 |
Liability [Abstract] | ||
NAV as a Practical Expedient | 160.8 | 155.2 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 307.1 | 331.4 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | 307.1 | 128.1 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | CIPs [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Investments, at fair value | $ 187.5 | $ 160.7 |
Consolidated Investment Produ52
Consolidated Investment Products - Schedule of Changes in Level 3 Assets of CIPs (Details) - Level 3 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 01, 2016 | |
Schedule Of Consolidated Investment Products [Line Items] | |||||
Balance at beginning of period - assets | $ 300.6 | $ 255.1 | $ 296.1 | $ 292.6 | |
Realized and unrealized gains (losses) included in investment and other income, net | 5.7 | 8 | 25.3 | (5.6) | |
Purchases - assets | 5.1 | 20.2 | 38.2 | 53.5 | |
Sales - assets | (2.7) | (5.2) | (55.3) | (13.6) | |
Settlements - assets | (0.5) | (0.6) | (0.5) | (0.6) | |
Consolidation | 7 | 0 | 7 | 0 | |
Foreign exchange revaluation | (4.8) | 4.8 | (0.4) | 1.9 | |
Balance at End of Period - assets | 310.4 | 282.3 | 310.4 | 282.3 | |
Change in unrealized gains (losses) included in net income relating to assets held at end of period | 1.1 | 7.9 | 15.4 | 3.9 | |
Equity Securities [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Balance at beginning of period - assets | 188.4 | 140.7 | 160.7 | 160.3 | |
Realized and unrealized gains (losses) included in investment and other income, net | 5.4 | (10.3) | 22.9 | (9.4) | |
Purchases - assets | 0.1 | 4.7 | 22.7 | 30.2 | |
Sales - assets | (2.6) | (0.5) | (17.5) | (0.6) | |
Settlements - assets | 0 | 0 | 0 | 0 | |
Consolidation | 0 | 0 | 0 | 0 | |
Foreign exchange revaluation | (3.8) | 2.4 | (1.3) | 1.9 | |
Balance at End of Period - assets | 187.5 | 137 | 187.5 | 137 | |
Change in unrealized gains (losses) included in net income relating to assets held at end of period | 0.9 | (10.3) | 17.5 | 0.7 | |
Debt Securities [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Balance at beginning of period - assets | 112.2 | 114.4 | 135.4 | 132.3 | |
Realized and unrealized gains (losses) included in investment and other income, net | 0.3 | 18.3 | 2.4 | 3.8 | |
Purchases - assets | 5 | 15.5 | 15.5 | 23.3 | |
Sales - assets | (0.1) | (4.7) | (37.8) | (13) | |
Settlements - assets | (0.5) | (0.6) | (0.5) | (0.6) | |
Consolidation | 7 | 0 | 7 | 0 | |
Foreign exchange revaluation | (1) | 2.4 | 0.9 | 0 | |
Balance at End of Period - assets | 122.9 | 145.3 | 122.9 | 145.3 | |
Change in unrealized gains (losses) included in net income relating to assets held at end of period | $ 0.2 | $ 18.2 | $ (2.1) | $ 3.2 | |
ASU 2015-02 [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Adoption of new accounting guidance | $ (45.9) | ||||
ASU 2015-02 [Member] | Equity Securities [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Adoption of new accounting guidance | (45.4) | ||||
ASU 2015-02 [Member] | Debt Securities [Member] | |||||
Schedule Of Consolidated Investment Products [Line Items] | |||||
Adoption of new accounting guidance | $ (0.5) |
Consolidated Investment Produ53
Consolidated Investment Products - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 587 | $ 440 |
CIPs [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 3,331.1 | $ 3,467.4 |
Equity Securities [Member] | Minimum [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 5.9 | 5.5 |
Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 8.10% | 5.70% |
Equity Securities [Member] | Maximum [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 13.6 | 12.3 |
Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 16.50% | 17.90% |
Equity Securities [Member] | Weighted Average [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 9.4 | 9 |
Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 14.10% | 14.30% |
Equity Securities [Member] | Weighted Average [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Price to earnings ratio | $ 10 | |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 159.8 | $ 101.9 |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 27.7 | 44.4 |
Equity Securities [Member] | CIPs [Member] | Level 3 [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 14.4 | |
Debt Securities [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 7.00% | 5.00% |
Risk premium | 0.00% | |
Debt Securities [Member] | Minimum [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.33 | |
Debt Securities [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 14.80% | 33.00% |
Risk premium | 25.00% | |
Debt Securities [Member] | Maximum [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.57 | |
Debt Securities [Member] | Weighted Average [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
EBITDA multiple | 20.9 | |
Price to earnings ratio | $ 10 | |
Debt Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 10.70% | 9.50% |
Risk premium | 8.40% | |
Debt Securities [Member] | Weighted Average [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Private sale pricing | $ 0.33 | $ 0.52 |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Market comparable [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 30.9 | |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | 76.9 | $ 112.7 |
Debt Securities [Member] | CIPs [Member] | Level 3 [Member] | Market Pricing [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 3.1 | $ 22.7 |
Other Debt Obligations [Member] | Minimum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 3.00% | |
Other Debt Obligations [Member] | Maximum [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 62.30% | |
Other Debt Obligations [Member] | Weighted Average [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Discount rate | 10.70% | |
Other Debt Obligations [Member] | CIPs [Member] | Level 3 [Member] | Discounted cash flow [Member] | ||
Schedule Of Consolidated Investment Products [Line Items] | ||
Investments, at fair value | $ 12 |
Consolidated Investment Produ54
Consolidated Investment Products - Schedule of Financial Instruments of CIPs not Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Financial Assets [Abstract] | ||||
Cash and cash equivalents | $ 6,654.2 | $ 8,749.7 | $ 8,786.2 | $ 8,483.3 |
Financial Liability [Abstract] | ||||
Debt | 695.7 | 1,044.2 | ||
CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 231.6 | 226.4 | ||
Financial Liability [Abstract] | ||||
Debt | 34.1 | 53.4 | ||
Carrying Value [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,422.6 | 8,523.3 | ||
Carrying Value [Member] | CIPs [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 231.6 | 226.4 | ||
Financial Liability [Abstract] | ||||
Debt | 34.1 | 53.4 | ||
Estimated Fair Value [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 6,422.6 | 8,523.3 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 1 [Member] | ||||
Financial Assets [Abstract] | ||||
Cash and cash equivalents | 231.6 | 226.4 | ||
Estimated Fair Value [Member] | CIPs [Member] | Level 3 [Member] | ||||
Financial Liability [Abstract] | ||||
Debt | $ 33.9 | $ 53.1 |
Consolidated Investment Produ55
Consolidated Investment Products - Schedule of Redeemable Noncontrolling Interest of CIPs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 01, 2016 | |
Temporary Equity [Line Items] | |||||
Balance at beginning of period | $ 1,941.9 | $ 61.1 | |||
Net income (loss) | $ (45) | $ 36.3 | (18.3) | 33.1 | |
Net subscriptions and other | (14.1) | 38 | |||
Net consolidations (deconsolidations) | 2.4 | (9.3) | |||
Balance at End of Period | $ 2,031.6 | $ 1,830.6 | 2,031.6 | 1,830.6 | |
Redeemable noncontrolling interests [Member] | |||||
Temporary Equity [Line Items] | |||||
Net subscriptions and other | 137.8 | 489.4 | |||
Net consolidations (deconsolidations) | $ (29.8) | $ 422.3 | |||
ASU 2015-02 [Member] | |||||
Temporary Equity [Line Items] | |||||
Adoption of new accounting guidance | $ (325.9) | ||||
ASU 2015-02 [Member] | Redeemable noncontrolling interests [Member] | |||||
Temporary Equity [Line Items] | |||||
Adoption of new accounting guidance | $ 824.7 |
Nonconsolidated Variable Inte56
Nonconsolidated Variable Interest Entities (Details) - Nonconsolidated VIEs [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 232 | $ 284.9 |
Receivables [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 147.3 | 155.6 |
Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 84.7 | $ 129.3 |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Examination [Line Items] | ||||||
Effective income tax rate | 20.50% | 84.60% | ||||
Tax Cuts and Jobs Act [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Estimated transition tax expense | $ (45.1) | $ 1,120.7 | $ (45.6) | $ 1,075.1 | ||
Decrease in deferred tax assets | (35.7) | |||||
Decrease in deferred tax liabilities | 88.8 | |||||
Net tax benefit | $ 0.1 | $ (53.1) | $ (0.4) | (53.5) | ||
Tax Cuts and Jobs Act [Member] | Domestic Tax Authority [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Estimated transition tax expense | $ 1,059.6 | |||||
Scenario, Forecast [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal portion of the transition tax liability, payment percentage | 21.00% | 24.50% | ||||
Effective income tax rate | 71.00% | |||||
First Five Years [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal Portion Transition Tax Liability, Payment Percentage | 8.00% | |||||
Year Six [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal Portion Transition Tax Liability, Payment Percentage | 15.00% | |||||
Year Seven [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal Portion Transition Tax Liability, Payment Percentage | 20.00% | |||||
Year Eight [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal Portion 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 - Components of
Taxes on Income - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net of valuation allowance | $ 92.4 | $ 141.3 |
Deferred tax liabilities | 199.4 | 296.1 |
Net Deferred Tax Liability | $ 107 | $ 154.8 |
Taxes on Income - Components 59
Taxes on Income - Components of Net Deferred Tax Liability as Classified in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Other assets | $ 21 | $ 15.8 |
Deferred tax liabilities | 128 | 170.6 |
Net Deferred Tax Liability | $ 107 | $ 154.8 |
Taxes on Income - Taxes on inco
Taxes on Income - Taxes on income and the related impact on the effective income tax rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Tax expense before one-time charges | $ 101.5 | $ 407.1 | ||||
Tax expense before one-time charges, percentage | 22.70% | 23.50% | ||||
Total | $ 91.8 | $ 184.1 | $ 1,465.5 | $ 577.5 | ||
Total, percentage | 20.50% | 84.60% | ||||
Tax Cuts and Jobs Act [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Transition tax on deemed repatriation of undistributed foreign earnings | $ (45.1) | $ 1,120.7 | $ (45.6) | $ 1,075.1 | ||
Transition tax on deemed repatriation of undistributed foreign earnings, percentage | (10.10%) | 62.10% | ||||
Revaluation of net deferred tax liabilities | $ 0.1 | $ (53.1) | $ (0.4) | $ (53.5) | ||
Revaluation of net deferred tax liabilities, percentage | 0.00% | (3.10%) | ||||
Other Tax Act impacts | $ 35.3 | $ 36.8 | ||||
Other Tax Act impacts, percentage | 7.90% | 2.10% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2018USD ($) | |
Plaintiff Cryer 401K Plan [Member] | |
Loss Contingencies [Line Items] | |
The plaintiff alleges that plan losses exceed | $ 79 |
Plaintiff Fernandez 401K Plan [Member] | |
Loss Contingencies [Line Items] | |
The plaintiff alleges that plan losses exceed | $ 60 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2018USD ($) | |
Share-based Compensation [Abstract] | |
Unrecognized compensation expense related to nonvested stock and stock unit awards, net of estimated forfeitures | $ 148.1 |
Remaining weighted-average vesting period | 1 year 8 months |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) shares in Thousands | 9 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested balance at October 1, 2017 | 4,544 |
Granted | 2,984 |
Vested | (665) |
Forfeited/canceled | (351) |
Nonvested Balance at June 30, 2018 | 6,512 |
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 37.23 |
Weighted Average Grant Date Fair Value of shares granted | $ / shares | 42.67 |
Weighted Average Grant Date Fair Value of shares vested | $ / shares | 39.23 |
Weighted Average Grant Date Fair Value of shares forfeited/canceled | $ / shares | 44.58 |
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 39.12 |
Time-Based Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested balance at October 1, 2017 | 2,783 |
Granted | 2,260 |
Vested | (149) |
Forfeited/canceled | (202) |
Nonvested Balance at June 30, 2018 | 4,692 |
Performance-Based Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested balance at October 1, 2017 | 1,761 |
Granted | 724 |
Vested | (516) |
Forfeited/canceled | (149) |
Nonvested Balance at June 30, 2018 | 1,820 |
Other Income (Expenses) - Narra
Other Income (Expenses) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Proceeds from the sale of available-for-sale securities | $ 6.8 | $ 2.5 | $ 48.2 | $ 28.3 |
Net gains (losses) recognized on trading investment securities | (1.1) | 1.3 | 2.3 | 3.8 |
Net gains (losses) recognized on trading investment securities of CIPs | $ (39) | $ 19.9 | $ (49.7) | $ 25.8 |
Other Income (Expenses) - Sched
Other Income (Expenses) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 15.4 | $ 20.3 | $ 64.9 | $ 49.9 |
Dividend income | 16.6 | 3.3 | 30 | 8.4 |
Gains (losses) on trading investment securities, net | (2.4) | 1.1 | 0.1 | 11.5 |
Realized gains on sale of investment securities, available-for-sale | 0.6 | 2.6 | 2.7 | 5.5 |
Realized losses on sale of investment securities, available-for-sale | (0.4) | (0.4) | (0.8) | (1.6) |
Income (losses) from investments in equity method investees | (4.1) | 17.9 | 41.8 | 88.4 |
Other-than-temporary impairment of investments | (0.3) | (0.5) | (0.9) | (0.8) |
Gains (losses) on investments of CIPs, net | (69.9) | 59.8 | (15.3) | 52.6 |
Foreign currency exchange gains (losses), net | 5.8 | (19.2) | (4.9) | (5.6) |
Other, net | 4.9 | 7.3 | 17.3 | 14.6 |
Total | (33.8) | 92.2 | 134.9 | 222.9 |
Interest Expense | (22.1) | (12.9) | (42.9) | (38.8) |
Other Income (Expenses), Net | $ (55.9) | $ 79.3 | $ 92 | $ 184.1 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ (1.5) | $ (3.2) | $ (2.5) |
Unrealized Gains on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | (1.5) | (1.7) | (2.5) |
Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | (1.5) | 0 |
Unrealized Losses on Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 01, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | $ (259.7) | $ (373.2) | $ (284.8) | $ (347.4) | |
Other comprehensive income (loss) before reclassifications, net of tax | (83.2) | 53.7 | (54.8) | 36 | |
Reclassifications to net investment and other income (losses), net of tax | 0 | (1.5) | (3.2) | (2.5) | |
Total other comprehensive income (loss) | (83.2) | 52.2 | (58) | 33.5 | |
Balance at end of period | (342.9) | (321) | (342.9) | (321) | |
Unrealized Gains on Investments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | 5.5 | 3 | 2.2 | 6.8 | |
Other comprehensive income (loss) before reclassifications, net of tax | 3.3 | (0.1) | 8.3 | 3.9 | |
Reclassifications to net investment and other income (losses), net of tax | 0 | (1.5) | (1.7) | (2.5) | |
Total other comprehensive income (loss) | (1.6) | 6.6 | 1.4 | ||
Balance at end of period | 8.8 | 1.4 | 8.8 | 1.4 | |
Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | (258.4) | (368.1) | (281) | (346.1) | |
Other comprehensive income (loss) before reclassifications, net of tax | (86.7) | 54 | (62.6) | 32.3 | |
Reclassifications to net investment and other income (losses), net of tax | 0 | 0 | (1.5) | 0 | |
Total other comprehensive income (loss) | 54 | (64.1) | 32.3 | ||
Balance at end of period | (345.1) | (314.1) | (345.1) | (314.1) | |
Unrealized Losses on Defined Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance at beginning of period | (6.8) | (8.1) | (6) | (8.1) | |
Other comprehensive income (loss) before reclassifications, net of tax | 0.2 | (0.2) | (0.5) | (0.2) | |
Reclassifications to net investment and other income (losses), net of tax | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | (0.2) | (0.5) | (0.2) | ||
Balance at end of period | $ (6.6) | $ (8.3) | (6.6) | $ (8.3) | |
ASU 2018-02 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | (0.1) | ||||
ASU 2018-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | $ (0.1) | ||||
ASU 2015-02 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | $ (325.9) | ||||
ASU 2015-02 [Member] | Unrealized Gains on Investments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | (6.8) | ||||
ASU 2015-02 [Member] | Currency Translation Adjustments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | (0.3) | ||||
ASU 2015-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | 0 | ||||
ASU 2015-02 [Member] | AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of new accounting guidance | $ (7.1) |