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managers’ interests in entities that apply the specialized accounting guidance for investment companies orthat have the attributes of investment companies. The proposed standard update, once finalized, is expectedto be effective for fiscal years beginning after November 15, 2009. The Company is currently evaluating theimpact that the adoption of the standard as of October 1, 2010 will have on its consolidated financialstatements.In June 2009, the FASB issued a new standard that eliminates the concept of a qualifying specialpurposeentity (“QSPE”), changes the requirements for derecognizing financial assets, and requiresadditional disclosures to enhance information reported to users of financial statements by providing greatertransparency about transfers of financial assets, including securitization transactions, and an entity’scontinuing involvement in and exposure to the risks related to transferred financial assets. The standard alsoclarifies the requirements for isolation and limitations on portions of financial assets that are eligible for saleaccounting. The standard is effective for fiscal years beginning after November 15, 2009. The Company iscurrently evaluating the impact that the adoption of the standard as of October 1, 2010 will have on itsconsolidated financial statements.Note 3 – Earnings per ShareBasic earnings per share is computed on the basis of the weighted-average number of shares ofcommon stock outstanding during the period. Diluted earnings per share is computed on the basis of theweighted-average number of shares of common stock plus the effect of dilutive potential common sharesoutstanding during the period using the treasury stock method. The components of basic and dilutedearnings per share were as follows:(in thousands except per share data)for the fiscal years ended September 30, 2009 2008 2007Net income as reported ...................................... $896,778 $1,588,213 $1,772,938Adjustments, net of taxes .................................... — — (269)Net Income Available to Common Stockholders ............ $896,778 $1,588,213 $1,772,669Weighted-average shares outstanding–basic ..................... 230,334 236,396 249,197Common stock options, nonvested stock awards and nonvestedstock unit awards ........................................ 1,120 1,885 2,921Weighted-Average Shares Outstanding–Diluted ............ 231,454 238,281 252,118Earnings per ShareBasic ................................................ $ 3.89 $ 6.72 $ 7.11Diluted .............................................. $ 3.87 $ 6.67 $ 7.03In computing diluted earnings per share for fiscal year 2007, the Company adjusted net income for theeffect of an accelerated stock repurchase agreement entered into in March 2007.For fiscal years 2009, 2008 and 2007, the Company excluded approximately 945.6 thousand,867.4 thousand and 6.7 thousand nonvested shares related to grants of stock awards and stock unit awardsfrom the computation of diluted earnings per share because their effect would have been anti-dilutive.Note 4 – AcquisitionsOn April 3, 2007, the Company acquired the remaining 25% interests in each of its joint ventures inIndia, Franklin Templeton Asset Management (India) Private Limited and Franklin Templeton TrusteeServices Private Limited, from an unrelated third party for approximately $89.7 million in cash. The81