CONSOLIDATED BALANCE SHEETS(dollars in thousands)as of September 30, 2009 2008AssetsCurrent AssetsCash and cash equivalents ........................................ $2,982,539 $2,314,818Receivables .................................................... 581,810 690,351Investment securities, trading ...................................... 502,609 356,408Investment securities, available-for-sale .............................. 1,027,287 600,146Other investments ............................................... 51,950 836,657Deferred taxes .................................................. 67,773 17,308Prepaid expenses and other ........................................ 30,452 33,944Total current assets .......................................... 5,244,420 4,849,632Banking/Finance AssetsCash and cash equivalents ........................................ 121,912 212,734Investment securities, trading ...................................... 110,600 111,607Investment securities, available-for-sale .............................. 472,055 320,910Loans held for sale .............................................. 15,711 32,582Loans receivable, net ............................................ 310,504 371,647Other ......................................................... 8,383 11,899Total banking/finance assets ................................... 1,039,165 1,061,379Non-Current AssetsInvestment securities, available-for-sale .............................. 108,838 155,295Investments in equity method investees and other ...................... 398,995 328,247Deferred sales commissions ....................................... 103,993 187,807Property and equipment, net ....................................... 535,459 554,706Goodwill ...................................................... 1,436,626 1,438,093Other intangible assets, net ........................................ 567,974 579,572Other ......................................................... 32,993 21,789Total non-current assets ...................................... 3,184,878 3,265,509Total Assets ............................................... $9,468,463 $9,176,520[Table continued on next page]See Notes to Consolidated Financial Statements.68
CONSOLIDATED BALANCE SHEETS(dollars in thousands)[Table continued from previous page]as of September 30, 2009 2008Liabilities and Stockholders’ EquityCurrent LiabilitiesCompensation and benefits ........................................ $ 210,789 $ 307,223Commercial paper ............................................... 64,156 13,287Accounts payable and accrued expenses ............................. 174,525 289,985Commissions ................................................... 219,356 230,028Income taxes ................................................... 28,363 66,032Other ......................................................... 28,351 29,335Total current liabilities ....................................... 725,540 935,890Banking/Finance LiabilitiesDeposits ...................................................... 664,580 570,279Variable funding notes ........................................... — 28,551Federal Home Loan Bank advances ................................. 57,000 109,000Other ......................................................... 24,653 44,743Total banking/finance liabilities ................................ 746,233 752,573Non-Current LiabilitiesLong-term debt ................................................. — 118,433Deferred taxes .................................................. 218,845 146,489Other ......................................................... 78,284 71,609Total non-current liabilities ................................... 297,129 336,531Total liabilities ............................................. 1,768,902 2,024,994Commitments and Contingencies (Note 15)Minority Interest ................................................... 67,388 77,162Stockholders’ EquityPreferred stock, $1.00 par value, 1,000,000 shares authorized; noneissued ...................................................... — —Common stock, $0.10 par value, 1,000,000,000 shares authorized;229,324,345 and 232,777,979 shares issued and outstanding, atSeptember 30, 2009 and 2008 ................................... 22,932 23,278Capital in excess of par value ...................................... — —Retained earnings ............................................... 7,505,890 7,044,732Accumulated other comprehensive income ........................... 103,351 6,354Total stockholders’ equity .................................... 7,632,173 7,074,364Total Liabilities and Stockholders’ Equity ...................... $9,468,463 $9,176,520See Notes to Consolidated Financial Statements.69
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G A I N F R O M O U R P E R S P E C
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Letter to StockholdersGregory E. Jo
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LETTER TO STOCKHOLDERSHaving announ
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Directors and OfficersDirectorsChar
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Performance GraphThe following perf
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(MARK ONE)UNITED STATESSECURITIES A
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operational and other services requ
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A. Assets Under Management (“AUM
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60 days. If agreements representing
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Similar arrangements exist with the
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We generally operate our institutio
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Franklin Templeton Variable Insuran
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CATEGORY(and approximate amount of
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- Page 46 and 47: PART IIItem 5. Market for Registran
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- Page 60 and 61: At September 30, 2009, we had $355.
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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