PART IIItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and IssuerPurchases of Equity Securities.Our common stock is traded on the NYSE under the ticker symbol “BEN”. On September 30, 2009,the closing price of our common stock on the NYSE was $100.60 per share. At October 31, 2009, therewere approximately 5,065 stockholders of record of our common stock.The following table sets forth the high and low sales prices for our common stock on the NYSE foreach full quarterly period of the two most recently completed fiscal years of Franklin.2009 Fiscal Year 2008 Fiscal YearQuarter High Low High LowOctober-December ............................ $ 95.49 $45.52 $143.08 $108.46January-March ............................... $ 70.82 $37.19 $114.49 $ 86.06April-June ................................... $ 77.62 $52.93 $108.00 $ 91.21July-September ............................... $104.00 $65.48 $113.70 $ 81.39We declared regular cash dividends of $0.84 per share (or $0.21 per share per quarter) in fiscal year2009 and $0.80 per share (or $0.20 per share per quarter) in the fiscal year ended September 30, 2008. Wecurrently expect to continue paying comparable cash dividends on a quarterly basis to holders of ourcommon stock depending upon earnings and other relevant factors.The equity compensation plan information called for by Item 201(d) of Regulation S-K is set forth inItem 12 of Part III of this Form 10-K under the heading “Equity Compensation Plan Information.”The following table provides information with respect to the shares of common stock we purchasedduring the three months ended September 30, 2009.PeriodTotal Number ofShares PurchasedAverage PricePaid per ShareTotal Number ofShares PurchasedAs Part of PubliclyAnnounced Plansor ProgramsMaximumNumber of Sharesthat May Yet BePurchasedUnder the Plansor ProgramsJuly 1, 2009 through July 31, 2009 .... 77,066 $71.40 77,066 11,207,169August 1, 2009 through August 31,2009 .......................... 926,158 $92.51 926,158 10,281,011September 1, 2009 throughSeptember 30, 2009 .............. 695,484 $96.40 695,484 9,585,527Total ........................ 1,698,708 1,698,708Under our stock repurchase program, we can repurchase shares of Franklin’s common stock from timeto time in the open market and in private transactions in accordance with applicable laws and regulations,including without limitation applicable federal securities laws. From time to time we have announced theexistence of the Company’s continuing policy of repurchasing shares of its common stock, including recentannouncements made in June 2007, January 2008 and March 2009. From fiscal year 2002 through 2009,our Board of Directors had authorized and approved the repurchase of up to 70.0 million shares of ourcommon stock under our stock repurchase program of which approximately 9.6 million shares of ourcommon stock remained available for repurchase at September 30, 2009. Our stock repurchase program isnot subject to an expiration date. There were no unregistered sales of equity securities during the periodcovered by this report.36
Item 6. Selected Financial Data.FINANCIAL HIGHLIGHTSas of and for the fiscal years ended September 30, 2009 2008 2007 2006 2005Summary of Operations (in millions)Operating revenues ........................ $4,194.1 $6,032.4 $6,205.8 $5,050.7 $4,310.1Net income .............................. 896.8 1,588.2 1,772.9 1,267.6 1,057.6Financial Data (in millions)Total assets .............................. $9,468.5 $9,176.5 $9,932.3 $9,499.9 $8,893.9Long-term debt 1 .......................... 42.0 156.4 162.1 627.9 1,208.4Stockholders’ equity ....................... 7,632.2 7,074.4 7,332.3 6,684.7 5,684.4Operating cash flows ....................... 641.4 1,409.2 1,673.6 1,277.9 850.0Assets Under Management (in billions)Ending .................................. $ 523.4 $ 507.3 $ 645.9 $ 511.3 $ 453.1Simple monthly average .................... 442.2 604.9 582.0 482.4 410.8Per Common ShareEarningsBasic ............................... $ 3.89 $ 6.72 $ 7.11 $ 4.97 $ 4.22Diluted .............................. 3.87 6.67 7.03 4.86 4.06Cash dividends ........................... 0.84 0.80 0.60 0.48 2.40Book value .............................. 33.28 30.39 29.87 26.40 22.49Employee Headcount ......................... 7,745 8,809 8,699 7,982 7,1561 Includes non-current portion of FHLB advances classified as banking/finance liabilities on our consolidated balancesheets.Item 7. Management’s Discussion and Analysis of Financial Condition and Results ofOperations.Forward-Looking StatementsIn this section, we discuss and analyze the results of operations and financial condition of FranklinResources, Inc. (“Franklin”) and its subsidiaries (collectively, the “Company”). In addition to historicalinformation, we also make statements relating to the future, called “forward-looking” statements, which areprovided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995.Forward-looking statements are generally written in the future tense and/or are preceded by words such as“will”, “may”, “could”, “expect”, “believe”, “anticipate”, “intend”, or other similar words. Moreover,statements that speculate about future events are forward-looking statements. These forward-lookingstatements involve a number of known and unknown risks, uncertainties and other important factors thatcould cause the actual results and outcomes to differ materially from any future results or outcomesexpressed or implied by such forward-looking statements. You should carefully review the “Risk Factors”section set forth in Item 1A of this Annual Report on Form 10-K and in any more recent filings with theU.S. Securities and Exchange Commission (the “SEC”), each of which describe these risks, uncertaintiesand other important factors in more detail. While forward-looking statements are our best prediction at thetime that they are made, you should not rely on them. If a circumstance occurs after the date of this AnnualReport on Form 10-K that causes any of our forward-looking statements to be inaccurate, we do not have anobligation, and we undertake no obligation, to announce publicly the change to our expectations, or to makeany revisions to our forward-looking statements, unless required by law.37
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The Company recognized other-than-t
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The changes in Level 3 assets measu
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Certain of the goodwill and intangi
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At September 30, 2009, maturities o
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The components of the net deferred
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At September 30, 2009, the banking/
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Total assets under management of in
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Stock OptionsThe following table su
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The following tables summarize info
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Operating revenues of the banking/f
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minimum Tier 1 and Total risk-based
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PART IIIItem 10. Directors, Executi
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Item 15.(a)(1)(a)(2)(a)(3)PART IVEx
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Exhibit No.Description10.17 Represe
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Exhibit No.Description12 Computatio
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Exhibit No.DescriptionEXHIBIT INDEX
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Exhibit No.Description10.22 Amendme
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(dollars in thousands)COMPUTATION O
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NameState or Nation ofIncorporation
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CONSENT OF INDEPENDENT REGISTERED P
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EXHIBIT 31.2CERTIFICATIONI, Kenneth
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CERTIFICATION PURSUANT TO 18 U.S.C.
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One Franklin ParkwaySan Mateo, CA 9