The changes in Level 3 assets measured at fair value on a recurring basis were as follows.(in thousands)Securities Heldby ConsolidatedSponsoredInvestmentProductsResidualInterests fromSecuritizationTransactions Other 1 TotalBalance at October 1, 2008 ........................ $ 4,089 $ 29,782 $12,112 $ 45,983Total realized and unrealized gains (losses):Included in other, net revenue .............. — (45,955) — (45,955)Included in consolidated sponsored investmentproducts gains (losses), net .............. (423) — — (423)Included in investments and other income,net.................................. — — (1,847) (1,847)Included in accumulated other comprehensiveincome .............................. — — 476 476Purchases, sales, and settlements, net ............ (580) 44,887 2,593 46,900Transfers (out of)/into Level 3 .................. (1,033) — 2,004 971Balance at September 30, 2009 .................... $ 2,053 $ 28,714 $15,338 $ 46,105Change in unrealized losses included in net incomerelating to assets still held at September 30, 2009 ..... $ (565) 2 $(45,955) 3 $ — $(46,520)1 Other primarily consists of equity securities and life settlement contracts.2 Included in consolidated sponsored investment products gains (losses), net.3 Included in other, net revenue.The Company may also be required to measure certain assets or liabilities at fair value on anonrecurring basis. These fair value measurements generally result from the application of lower of cost orfair value accounting for automobile loans held for sale or write-downs of individual assets. Automobileloans held for sale currently are classified as Level 3. The fair value of these loans was $16.6 million atSeptember 30, 2009, and the adjustments to the fair value of these loans recorded as a loss during fiscal year2009 were de minimus.The following financial instruments were not measured at fair value, but required disclosure of theestimated fair value:(in thousands) 2009 2008as of September 30,CarryingValueFair ValueCarryingValueFair ValueFinancial AssetsCash and cash equivalents ................... $3,104,451 $3,104,451 $2,527,552 $2,527,552Other investments .......................... 51,950 51,950 836,657 836,657Loans held for sale ......................... 15,711 16,621 32,582 32,582Loans receivable, net ....................... 310,504 323,672 371,647 370,871Financial LiabilitiesCommercial paper .......................... $ 64,156 $ 64,156 $ 13,287 $ 13,287Deposits ................................. 664,580 667,793 570,279 564,997FHLB advances ............................ 57,000 57,026 109,000 110,00888
Note 8 – Loans and Allowance for Loan LossesThe following table summarizes the banking/finance operating segment loans receivable by majorcategory:(in thousands)as of September 30, 2009 2008Commercial loans ...................................................... $ 33,511 $ 70,256Real estate mortgage loans ............................................... 36,303 33,029Installment loans to individuals ........................................... 221,765 244,513Other ................................................................ 25,951 30,140Loans receivable ....................................................... 317,530 377,938Less: allowance for loan losses ........................................... (7,026) (6,291)Loans Receivable, Net ............................................. $310,504 $371,647Installment loans to individuals include secured private banking loans to Fiduciary Trust clients andautomobile receivables. Other loans include credit card receivables and overdraft receivables. No loan lossallowance is recognized on private banking loans as described in Note 1 – Significant Accounting Policies,Allowance for Loan Losses. At September 30, 2009 and 2008, loans receivable with aggregate carryingvalues of $30.6 million and $22.3 million were pledged as collateral for the ability to obtain FHLBadvances.Maturities of loans receivable at September 30, 2009 were as follows:(in thousands)One Yearor LessAfter OneThrough FiveYearsAfterFive YearsCommercial loans .................................. $ 28,364 $ 3,954 $ 1,193 $ 33,511Real estate mortgage loans ........................... 120 9,699 26,484 36,303Installment loans to individuals ....................... 94,111 72,114 55,540 221,765Other ............................................ 25,100 339 512 25,951Total ........................................ $147,695 $86,106 $83,729 $317,530TotalThe following table summarizes contractual maturities of loans receivable due after one year byrepricing characteristic at September 30, 2009:(in thousands)CarryingValueLoans at predetermined interest rates ................................................ $108,774Loans at floating or adjustable interest rates .......................................... 61,061Total ..................................................................... $169,83589
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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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director of various subsidiaries of
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PART IIItem 5. Market for Registran
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- Page 54 and 55: accounts closed in a calendar year
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- Page 132 and 133: Exhibit No.Description10.22 Amendme
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