FHLB borrowings and amounts available in secured FHLB short-term borrowing capacity, and $1.9 millionand $2.4 million were pledged as collateral as required by federal and state regulators (see Note 13 – Debt).In addition, investment management and related services segment securities with aggregate carryingamounts of $5.0 million and $8.3 million were pledged as collateral at September 30, 2009 and 2008.A summary of the gross unrealized gains and losses relating to investment securities, available-for-saleis as follows:(in thousands)Gross Unrealizedas of September 30, 2009 Cost Basis Gains Losses Fair ValueSponsored investment products ....................... $ 890,745 $ 94,829 $(17,803) $ 967,771U.S. government-sponsored enterprise obligations ....... 361,340 6,566 (2,251) 365,655Securities of U.S. states and political subdivisions ........ 96,647 3,265 (104) 99,808Securities of the U.S. Treasury and federal agencies ...... 59,428 20 (66) 59,382Corporate debt securities ............................ 100,272 1,502 — 101,774Other equity securities .............................. 11,136 2,786 (132) 13,790Total ....................................... $1,519,568 $108,968 $(20,356) $1,608,180(in thousands)Gross Unrealizedas of September 30, 2008 Cost Basis Gains Losses Fair ValueSponsored investment products ....................... $ 650,873 $12,465 $(43,687) $ 619,651U.S. government-sponsored enterprise obligations ........ 315,969 2,705 (2,991) 315,683Securities of U.S. states and political subdivisions ......... 126,583 401 (1,724) 125,260Securities of the U.S. Treasury and federal agencies ....... 7,092 109 (17) 7,184Other equity securities .............................. 7,882 906 (215) 8,573Total ........................................ $1,108,399 $16,586 $(48,634) $1,076,351The changes in net holding gains (losses) on investment securities, available-for-sale included inaccumulated other comprehensive income were $53.6 million, $(101.7) million and $107.0 million duringfiscal years 2009, 2008 and 2007. The tax effects of the net change in unrealized gains (losses) included inaccumulated other comprehensive income were $(13.8) million, $11.2 million and $0.5 million during fiscalyears 2009, 2008 and 2007.84
The following tables show the gross unrealized losses and fair values of investment securities,available-for-sale with unrealized losses aggregated by investment category and length of time thatindividual securities have been in a continuous unrealized loss position:(in thousands) Less Than 12 Months 12 Months or Greater Totalas of September 30, 2009Fair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesCurrentInvestment securities, available-for-saleSponsored investment products ......... $89,676 $(15,082) $ 49,733 $ (594) $139,409 $(15,676)Other equity securities ................ 782 (118) 28 (5) 810 (123)Total Current .................. $90,458 $(15,200) $ 49,761 $ (599) $140,219 $(15,799)Banking/FinanceInvestment securities, available-for-saleU.S. government-sponsored enterpriseobligations ....................... $53,717 $ (333) $161,236 $(1,918) $214,953 $ (2,251)Securities of the U.S. Treasury and federalagencies ......................... 2,129 (36) 1,437 (30) 3,566 (66)Total Banking/Finance .......... $55,846 $ (369) $162,673 $(1,948) $218,519 $ (2,317)Non-CurrentInvestment securities, available-for-saleSponsored investment products ......... $15,460 $ (2,038) $ 37,653 $ (89) $ 53,113 $ (2,127)Securities of U.S. states and politicalsubdivisions ...................... — — 8,618 (104) 8,618 (104)Other equity securities ................ — — 165 (9) 165 (9)Total Non-Current .............. $15,460 $ (2,038) $ 46,436 $ (202) $ 61,896 $ (2,240)(in thousands) Less Than 12 Months 12 Months or Greater Totalas of September 30, 2008Fair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesCurrentInvestment securities, available-for-saleSponsored investment products ......... $368,820 $(39,761) $37,257 $(2,331) $406,077 $(42,092)Other equity securities ................ 32 (3) 30 (12) 62 (15)Total Current .................. $368,852 $(39,764) $37,287 $(2,343) $406,139 $(42,107)Banking/FinanceInvestment securities, available-for-saleU.S. government-sponsored enterpriseobligations ....................... $192,264 $ (2,802) $19,715 $ (189) $211,979 $ (2,991)Securities of the U.S. Treasury and federalagencies ......................... 2,242 (17) — — 2,242 (17)Total Banking/Finance .......... $194,506 $ (2,819) $19,715 $ (189) $214,221 $ (3,008)Non-CurrentInvestment securities, available-for-saleSponsored investment products ......... $ 4,808 $ (1,240) $ 3,144 $ (355) $ 7,952 $ (1,595)Securities of U.S. states and politicalsubdivisions ...................... 28,976 (1,284) 39,502 (440) 68,478 (1,724)Other equity securities ................ 2,720 (200) — — 2,720 (200)Total Non-Current .............. $ 36,504 $ (2,724) $42,646 $ (795) $ 79,150 $ (3,519)85
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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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The following table sets forth the
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Korea; the Commission de Surveillan
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COMPETITIONThe financial services i
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or other efforts successfully stabi
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and, consequently, we are incurring
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such as information, systems and te
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like our business, is based in part
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orrowing costs and limit our access
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- Page 46 and 47: PART IIItem 5. Market for Registran
- Page 48 and 49: OverviewWe are a global investment
- Page 50 and 51: Net income decreased in fiscal year
- Page 52 and 53: Investment Management Fee RateThe f
- Page 54 and 55: accounts closed in a calendar year
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- Page 58 and 59: Our investments in sponsored invest
- Page 60 and 61: At September 30, 2009, we had $355.
- Page 62 and 63: Off-Balance Sheet ArrangementsAs of
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- Page 130 and 131: Exhibit No.DescriptionEXHIBIT INDEX
- Page 132 and 133: Exhibit No.Description10.22 Amendme
- Page 134 and 135: (dollars in thousands)COMPUTATION O
- Page 136 and 137: NameState or Nation ofIncorporation
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- Page 140 and 141: EXHIBIT 31.2CERTIFICATIONI, Kenneth
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One Franklin ParkwaySan Mateo, CA 9