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The Company’s pension plan assets are predominantly invested in equity securities. The Company hasno target allocation set for the pension plan as the plan members control all investment decisions. Thehealthcare plan is an unfunded benefit plan. The Company expects to contribute $4.5 million to the pensionplan and $0.5 million to the healthcare benefit plan in fiscal year 2010. The expected future benefitspayments over the next 10 years for the pension plan and for the healthcare plan are $9.7 million and $5.4million.Note 18 – Segment InformationThe Company bases its operating segment selection process primarily on services offered. TheCompany derives substantially all of its operating revenues and net income from providing investmentmanagement and related services to its sponsored investment products. This is the Company’s primarybusiness activity and operating segment. The Company’s investment management and related services aremarketed to the public globally under six distinct brand names: Franklin, Templeton, Mutual Series, Bissett,Fiduciary Trust and Darby.The Company’s secondary business activity and operating segment is banking/finance. The banking/finance segment offers select retail banking and consumer lending services and private banking services tohigh net-worth clients. Consumer lending and retail banking activities include automobile lending servicesrelated to the purchase, securitization, and servicing of retail installment sales contracts originated byindependent automobile dealerships, consumer credit and debit cards, real estate equity lines, and homeequity/mortgage lending, and other consumer lending.Financial information for the Company’s two operating segments is presented in the table below. Intersegmenttransactions are immaterial and excluded from segment income (loss) and assets. Operatingrevenues of the banking/finance segment are reported net of interest expense, the provision for loan lossesand changes in fair value of residual interests from securitization transactions.(in thousands)as of and for the fiscal year ended September 30, 2009InvestmentManagementand RelatedServicesBanking/FinanceAssets .................................................. $8,429,298 $1,039,165 $9,468,463Operating revenues ....................................... 4,195,592 (1,505) 4,194,087Interest expense .......................................... (3,771) N/A (3,771)Income (loss) before taxes .................................. 1,331,428 (50,336) 1,281,092as of and for the fiscal year ended September 30, 2008Assets .................................................. $8,115,141 $1,061,379 $9,176,520Operating revenues ....................................... 5,995,796 36,590 6,032,386Interest expense .......................................... (15,758) N/A (15,758)Income (loss) before taxes .................................. 2,238,595 (2,006) 2,236,589as of and for the fiscal year ended September 30, 2007Assets .................................................. $8,884,094 $1,048,178 $9,932,272Operating revenues ....................................... 6,146,371 59,398 6,205,769Interest expense .......................................... (23,220) N/A (23,220)Income before taxes ....................................... 2,437,868 27,433 2,465,301Total107

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