10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 001-09318

FRANKLIN RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	13-2670991
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Franklin Parkway, San Mateo, CA	94403
(Address of principal executive offices)	(Zip Code)

(650) 312-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  YES    o  NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  YES    o  NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer     x	Accelerated filer     o
Non-accelerated filer  o  (Do not check if a smaller reporting company)	Smaller reporting company    o
	Emerging growth company    o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act).    o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    o  YES    x  NO

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Outstanding: 557,701,394 shares of common stock, par value $0.10 per share, of Franklin Resources, Inc. as of July 21, 2017.

INDEX TO FORM 10-Q

			Page
PART I		Financial Information
	Item 1.	Financial Statements (unaudited)
		Condensed Consolidated Statements of Income	3
		Condensed Consolidated Statements of Comprehensive Income	4
		Condensed Consolidated Balance Sheets	5
		Condensed Consolidated Statements of Cash Flows	6
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
	Item 4.	Controls and Procedures	46
PART II		Other Information
	Item 1.	Legal Proceedings	47
	Item 1A.	Risk Factors	47
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
	Item 6.	Exhibits	47
Signature			48
Exhibit Index			49

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

FRANKLIN RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited
	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions, except per share data)	2017			2016			2017			2016
Operating Revenues
Investment management fees	$	1,097.0		$	1,093.5		$	3,249.4		$	3,375.4
Sales and distribution fees	433.3			450.2			1,283.8			1,365.6
Shareholder servicing fees	56.7			61.5			169.7			185.2
Other	26.9			29.1			72.4			80.0
Total operating revenues	1,613.9			1,634.3			4,775.3			5,006.2
Operating Expenses
Sales, distribution and marketing	541.2			553.4			1,596.0			1,673.7
Compensation and benefits	342.7			326.9			997.6			1,043.7
Information systems and technology	54.1			50.5			159.8			151.3
Occupancy	30.2			33.1			88.3			96.8
General, administrative and other	81.5			75.0			227.0			254.4
Total operating expenses	1,049.7			1,038.9			3,068.7			3,219.9
Operating Income	564.2			595.4			1,706.6			1,786.3
Other Income (Expenses)
Investment and other income, net	92.2			65.8			222.9			113.7
Interest expense	(12.9		)	(12.3		)	(38.8		)	(36.5		)
Other income, net	79.3			53.5			184.1			77.2
Income before taxes	643.5			648.9			1,890.7			1,863.5
Taxes on income	184.1			187.4			577.5			578.8
Net income	459.4			461.5			1,313.2			1,284.7
Less: net income attributable to
Nonredeemable noncontrolling interests	12.5			14.2			8.6			29.7
Redeemable noncontrolling interests	36.3			0.9			33.1			0.4
Net Income Attributable to Franklin Resources, Inc.	$	410.6		$	446.4		$	1,271.5		$	1,254.6
Earnings per Share
Basic	$	0.73		$	0.77		$	2.25		$	2.12
Diluted	0.73			0.77			2.25			2.12
Dividends Declared per Share	$	0.20		$	0.18		$	0.60		$	0.54

See Notes to Condensed Consolidated Financial Statements.

3

FRANKLIN RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited
(in millions)	Three Months Ended June 30,						Nine Months Ended June 30,
	2017			2016			2017			2016
Net Income	$	459.4		$	461.5		$	1,313.2		$	1,284.7
Other Comprehensive Income (Loss)
Net unrealized gains (losses) on investments, net of tax	(1.6		)	(4.1		)	1.4			(16.4		)
Currency translation adjustments, net of tax	54.0			(30.8		)	32.3			(22.7		)
Net unrealized gains (losses) on defined benefit plans, net of tax	(0.2		)	0.2			(0.2		)	0.8
Total other comprehensive income (loss)	52.2			(34.7		)	33.5			(38.3		)
Total comprehensive income	511.6			426.8			1,346.7			1,246.4
Less: comprehensive income attributable to
Nonredeemable noncontrolling interests	12.5			14.2			8.6			29.7
Redeemable noncontrolling interests	36.3			0.9			33.1			0.4
Comprehensive Income Attributable to Franklin Resources, Inc.	$	462.8		$	411.7		$	1,305.0		$	1,216.3

See Notes to Condensed Consolidated Financial Statements.

4

FRANKLIN RESOURCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(in millions, except share and per share data)	June 30, 2017			September 30, 2016
Assets
Cash and cash equivalents	$	8,564.8		$	8,247.1
Receivables	978.6			794.3
Investments (including $469.9 and $1,437.6 at fair value at June 30, 2017 and September 30, 2016)	1,455.7			2,416.6
Assets of consolidated sponsored investment products
Cash and cash equivalents	221.4			236.2
Investments, at fair value	3,373.0			1,513.4
Property and equipment, net	508.8			523.2
Goodwill and other intangible assets, net	2,228.0			2,211.3
Other	145.9			156.7
Total Assets	$	17,476.2		$	16,098.8
Liabilities
Compensation and benefits	$	359.8		$	357.4
Accounts payable and accrued expenses	275.0			233.3
Dividends	113.7			104.6
Commissions	313.0			302.0
Debt	1,374.7			1,401.2
Debt of consolidated sponsored investment products	53.1			682.2
Deferred taxes	156.5			161.5
Other	294.7			267.3
Total liabilities	2,940.5			3,509.5
Commitments and Contingencies (Note 9)
Redeemable Noncontrolling Interests	1,830.6			61.1
Stockholders’ Equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued	—			—
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 557,960,048 and 570,345,156 shares issued and outstanding at June 30, 2017 and September 30, 2016	55.8			57.0
Retained earnings	12,665.2			12,226.2
Accumulated other comprehensive loss	(321.0		)	(347.4		)
Total Franklin Resources, Inc. stockholders’ equity	12,400.0			11,935.8
Nonredeemable noncontrolling interests	305.1			592.4
Total stockholders’ equity	12,705.1			12,528.2
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	17,476.2		$	16,098.8

See Notes to Condensed Consolidated Financial Statements.

5

FRANKLIN RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
	Nine Months Ended June 30,
(in millions)	2017			2016
Net Income	$	1,313.2		$	1,284.7
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred sales commissions	52.9			57.8
Depreciation and other amortization	62.3			65.8
Impairment of intangible assets	4.6			28.2
Stock-based compensation	95.0			104.0
Excess tax benefit from stock-based compensation	(0.6		)	(0.6		)
Gains on sale of assets	(5.4		)	(26.5		)
Income from investments in equity method investees	(88.4		)	(19.6		)
Net (gains) losses on other investments of consolidated sponsored investment products	(15.7		)	13.3
Deferred income taxes	(7.0		)	(8.0		)
Other	(17.1		)	0.5
Changes in operating assets and liabilities:
Decrease (increase) in receivables, prepaid expenses and other	(84.7		)	3.7
Decrease (increase) in trading securities, net	68.6			(106.1		)
Increase in trading securities of consolidated sponsored investment products, net	(528.9		)	(118.9		)
Increase (decrease) in accrued compensation and benefits	2.0			(78.4		)
Increase (decrease) in commissions payable	11.0			(52.4		)
Increase in income taxes payable	68.8			24.5
Increase (decrease) in other liabilities	27.7			(6.6		)
Net cash provided by operating activities	958.3			1,165.4
Purchase of investments	(336.2		)	(309.0		)
Liquidation of investments	271.3			330.5
Purchase of other investments by consolidated sponsored investment products	(114.3		)	(238.4		)
Liquidation of other investments by consolidated sponsored investment products	333.9			382.2
Additions of property and equipment, net	(49.0		)	(61.4		)
Adoption of new accounting guidance	(49.2		)	—
Acquisition of business	(14.0		)	—
Net consolidation (deconsolidation) of sponsored investment products	22.4			(11.9		)
Net cash provided by investing activities	64.9			92.0
Issuance of common stock	13.0			13.5
Dividends paid on common stock	(329.4		)	(304.6		)
Repurchase of common stock	(600.6		)	(1,057.0		)
Excess tax benefit from stock-based compensation	0.6			0.6
Proceeds from loan	—			93.4
Payment on loan	(22.5		)	—
Proceeds from debt of consolidated sponsored investment products	0.7			30.5
Payments on debt by consolidated sponsored investment products	(288.3		)	(127.0		)
Payments on contingent consideration liabilities	(31.7		)	(3.2		)
Noncontrolling interests	527.4			(21.9		)
Net cash used in financing activities	(730.8		)	(1,375.7		)

[Table continued on next page]

See Notes to Condensed Consolidated Financial Statements.

6

FRANKLIN RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited [Table continued from previous page]
	Nine Months Ended June 30,
(in millions)	2017		2016
Effect of exchange rate changes on cash and cash equivalents	$	10.5	$	(7.7	)
Increase (decrease) in cash and cash equivalents	302.9		(126.0		)
Cash and cash equivalents, beginning of period	8,483.3		8,368.1
Cash and Cash Equivalents, End of Period	$	8,786.2	$	8,242.1
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes	$	520.5	$	560.3
Cash paid for interest	34.4		33.0
Cash paid for interest by consolidated sponsored investment products	10.3		20.6

See Notes to Condensed Consolidated Financial Statements.

7

FRANKLIN RESOURCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2017

(Unaudited)

Note 1 – Basis of Presentation

The unaudited interim financial statements of Franklin Resources, Inc. and its consolidated subsidiaries (collectively, the “Company”) included herein have been prepared by the Company in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission. Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. These financial statements should be read together with the Company’s audited financial statements included in its Form 10-K for the fiscal year ended September 30, 2016 (“fiscal year 2016”). Certain comparative amounts for the prior fiscal year period have been reclassified to conform to the financial statement presentation as of and for the period ended June 30, 2017.

Note 2 – New Accounting Guidance

Recently Adopted Accounting Guidance

On October 1, 2016, the Company adopted an amendment to the consolidation guidance issued by the Financial Accounting Standards Board (“FASB”) using the modified retrospective approach which did not require the restatement of prior year periods. The amendment modifies the consolidation framework for certain investment entities and all limited partnerships. It also eliminates certain criteria used to determine whether fees paid to a decision maker are a variable interest and results in a lower consolidation threshold for variable interest entities (“VIEs”). The adoption caused the consolidation of 24 sponsored investment products (“SIPs”) that changed from voting interest entities (“VOEs”) to VIEs and three other SIPs that are VIEs. In addition, two collateralized loan obligations (“CLOs”) for which the Company was previously the primary beneficiary and five limited partnerships were deconsolidated. The adoption resulted in net increases in total assets, redeemable noncontrolling interests and retained earnings of $180.9 million, $824.7 million and $5.8 million, and net decreases in total liabilities, nonredeemable noncontrolling interests and other equity of $317.9 million, $324.6 million and $7.1 million as of October 1, 2016.

Accounting Guidance Not Yet Adopted

The FASB issued an amendment to the existing stock-based compensation guidance in March 2016. The amendment requires all income tax effects of stock-based awards to be recognized as income tax expense when the awards vest or settle and clarifies the classification of these transactions within the statement of cash flows. The amendment also provides an election to account for forfeitures as they occur, which the Company expects to take. The amendment is effective for the Company on October 1, 2017 and requires varying transition approaches for the different changes to the guidance. The Company expects the adoption to increase the volatility of income tax expense as a result of fluctuations in its stock price.

The FASB issued new guidance in May 2014 that requires use of a single principles-based model for recognition of revenue from contracts with customers. The core principle of the model is that revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received for the goods or services. The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The guidance is effective for the Company on October 1, 2018 and allows for either a full retrospective or modified approach at adoption. While the Company’s implementation efforts are ongoing, it does not expect adoption of the guidance to have a significant impact on the timing of recognition for the majority of its operating revenue. The Company is evaluating certain costs to determine if they should be capitalized or expensed based on the criteria in the guidance for costs to obtain or fulfill a contract. Additionally, it is assessing certain arrangements to determine whether it continues to act as a principal and present the related revenue gross of associated expenses. The overall impact upon adoption may differ based on further evaluation and additional facts and circumstances identified during implementation. The Company has not yet determined its transition approach.

8

The FASB issued an amendment to the existing financial instruments guidance in January 2016. The amendment requires substantially all equity investments in nonconsolidated entities to be measured at fair value with changes recognized in earnings, except for those accounted for using the equity method of accounting, which will impact all equity securities currently classified as available-for-sale. The amendment also provides an election to measure equity investments that do not have a readily determinable fair value at cost less impairment, if any, which the Company expects to take. The amendment is effective for the Company on October 1, 2018 and requires a cumulative effect adjustment to retained earnings at adoption. The Company does not expect the adoption to have a material impact on its consolidated financial statements; however, this could be affected by market volatility as well as additional facts and circumstances identified during implementation.

There were no other significant updates to the new accounting guidance not yet adopted by the Company as disclosed in its Form 10-K for fiscal year 2016.

Note 3 – Stockholders’ Equity

Changes in total stockholders’ equity were as follows:

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	11,935.8		$	592.4		$	12,528.2
Adoption of new accounting guidance	(1.3		)	(324.6		)	(325.9		)
Net income	1,271.5			8.6			1,280.1
Other comprehensive income	33.5						33.5
Cash dividends declared on common stock	(338.5		)				(338.5		)
Repurchase of common stock	(603.1		)				(603.1		)
Stock-based compensation	102.1						102.1
Net subscriptions and other				38.0			38.0
Deconsolidation of sponsored investment product				(9.3		)	(9.3		)
Balance at June 30, 2017	$	12,400.0		$	305.1		$	12,705.1

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	11,841.0		$	654.8		$	12,495.8
Net income	1,254.6			29.7			1,284.3
Other comprehensive loss	(38.3		)				(38.3		)
Cash dividends declared on common stock	(317.6		)				(317.6		)
Repurchase of common stock	(1,068.1		)				(1,068.1		)
Stock-based compensation	110.5						110.5
Net distributions and other				(95.1		)	(95.1		)
Balance at June 30, 2016	$	11,782.1		$	589.4		$	12,371.5

During the three and nine months ended June 30, 2017, the Company repurchased 4.1 million and 15.2 million shares of its common stock at a cost of $174.6 million and $603.1 million under its stock repurchase program. At June 30, 2017, 35.5 million shares remained available for repurchase under the program, which is not subject to an expiration date. During the three and nine months ended June 30, 2016, the Company repurchased 9.3 million and 29.4 million shares of its common stock at a cost of $326.7 million and $1,068.1 million.

9

Note 4 – Earnings per Share

The components of basic and diluted earnings per share were as follows:

(in millions, except per share data)	Three Months Ended June 30,				Nine Months Ended June 30,
	2017		2016		2017		2016
Net income attributable to Franklin Resources, Inc.	$	410.6	$	446.4	$	1,271.5	$	1,254.6
Less: allocation of earnings to participating nonvested stock and stock unit awards	3.5		3.2		9.9		8.5
Net Income Available to Common Stockholders	$	407.1	$	443.2	$	1,261.6	$	1,246.1
Weighted-average shares outstanding – basic	556.2		578.9		560.5		587.9
Dilutive effect of nonparticipating nonvested stock unit awards	0.5		—		0.3		—
Weighted-Average Shares Outstanding – Diluted	556.7		578.9		560.8		587.9
Earnings per Share
Basic	$	0.73	$	0.77	$	2.25	$	2.12
Diluted	0.73		0.77		2.25		2.12

Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.2 million and 0.7 million for the three and nine months ended June 30, 2017, and 1.3 million for both the three and nine months ended June 30, 2016.

Note 5 – Investments

The disclosures below include details of the Company’s investments, excluding those of consolidated SIPs. See Note 7–Consolidated Sponsored Investment Products for information related to the investments held by these entities.

Investments consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading
SIPs	$	91.2	$	844.4
Debt and other equity securities	286.6		277.5
Total investment securities, trading	377.8		1,121.9
Investment securities, available-for-sale
SIPs	77.1		297.7
Debt and other equity securities	1.7		3.7
Total investment securities, available-for-sale	78.8		301.4
Investments in equity method investees	878.4		797.4
Other investments	120.7		195.9
Total	$	1,455.7	$	2,416.6

Debt and other equity trading securities consist primarily of corporate debt.

Investment securities with aggregate carrying amounts of $38.7 million and $117.3 million were pledged as collateral at June 30, 2017 and September 30, 2016.

10

Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows:

(in millions)			Gross Unrealized
	Cost Basis		Gains		Losses			Fair Value
as of June 30, 2017
SIPs	$	74.9	$	8.3	$	(6.1	)	$	77.1
Debt and other equity securities	1.6		0.1		—			1.7
Total	$	76.5	$	8.4	$	(6.1	)	$	78.8
as of September 30, 2016
SIPs	$	289.6	$	13.7	$	(5.6	)	$	297.7
Debt and other equity securities	3.6		0.1		—			3.7
Total	$	293.2	$	13.8	$	(5.6	)	$	301.4

Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Greater					Total
(in millions)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
as of June 30, 2017
SIPs	$	23.0	$	(5.8	)	$	3.8	$	(0.3	)	$	26.8	$	(6.1	)
as of September 30, 2016
SIPs	$	75.8	$	(4.3	)	$	18.0	$	(1.3	)	$	93.8	$	(5.6	)

The Company recognized $0.5 million and $0.8 million of other-than-temporary impairment during the three and nine months ended June 30, 2017. During the three and nine months ended June 30, 2016, the Company recognized other-than-temporary impairment of $2.2 million and $7.0 million. The amount for the three-month period was all related to available-for-sale SIPs and the amount for the nine-month period included $5.9 million related to available-for-sale SIPs.

Note 6 – Fair Value Measurements

The disclosures below include details of the Company’s fair value measurements, excluding those of consolidated SIPs. See Note 7 – Consolidated Sponsored Investment Products for information related to fair value measurements of the assets and liabilities of these entities.

The assets and liability measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		Total
as of June 30, 2017
Assets
Investment securities, trading
SIPs	$	91.2	$	—	$	—	$	91.2
Debt and other equity securities	6.7		78.7		201.2		286.6
Investment securities, available-for-sale
SIPs	77.1		—		—		77.1
Debt and other equity securities	0.8		0.6		0.3		1.7
Life settlement contracts	—		—		13.3		13.3
Total Assets Measured at Fair Value	$	175.8	$	79.3	$	214.8	$	469.9
Liability
Contingent consideration liability	$	—	$	—	$	54.8	$	54.8

11

(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2016
Assets
Investment securities, trading
SIPs	$	844.4	$	—	$	—	$	844.4
Debt and other equity securities	2.6		84.1		190.8		277.5
Investment securities, available-for-sale
SIPs	297.7		—		—		297.7
Debt and other equity securities	1.6		2.1		—		3.7
Life settlement contracts	—		—		14.3		14.3
Total Assets Measured at Fair Value	$	1,146.3	$	86.2	$	205.1	$	1,437.6
Liability
Contingent consideration liability	$	—	$	—	$	98.1	$	98.1

The fair values of all SIPs and certain other equity securities are determined based on their published net asset values and they are classified as Level 1. The fair values of certain debt and other equity securities are determined using quoted market prices, if available, or independent third-party broker or dealer price quotes, which are evaluated for reasonableness, and they are classified as Level 2. The fair values of other debt securities and all life settlement contracts are determined using discounted cash flow valuation techniques, except for the fair value of certain debt securities which was determined using market pricing as of June 30, 2017; both techniques use significant unobservable inputs and the assets are classified as Level 3.

The fair value of the contingent consideration liability, which is classified as Level 3, is determined using an income-based method which considers the net present value of anticipated future cash flows.

There were no transfers between Level 1 and Level 2, or into Level 3, during the nine months ended June 30, 2017 and 2016.

Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the three months ended June 30,
Balance at beginning of period	$	211.0		$	(60.4	)	$	211.1		$	(96.2	)
Total realized and unrealized gains (losses)
Included in investment and other income, net	1.7			—			11.9			—
Included in general, administrative and other expense	—			5.6			—			(1.2		)
Purchases	1.3			—			3.4			—
Settlements	(0.1		)	—			—			0.5
Foreign exchange revaluation	0.9			—			(3.5		)	—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	$	2.2		$	(0.1	)	$	11.9		$	(1.2	)

12

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the nine months ended June 30,
Balance at beginning of period	$	205.1		$	(98.1	)	$	20.7		$	(102.9	)
Acquisition	—			(5.7		)	—			—
Total realized and unrealized gains
Included in investment and other income, net	7.3			—			13.4			—
Included in general, administrative and other expense	—			13.6			—			2.2
Purchases	2.1			—			189.9			—
Sales	(2.4		)	—			—			—
Settlements	(2.6		)	35.4			(1.7		)	3.8
Transfers out of Level 3	(0.4		)	—			—			—
Foreign exchange revaluation	5.7			—			0.6			—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains included in net income relating to assets and liability held at end of period	$	6.2		$	7.9		$	12.7		$	2.2

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	193.2	Market pricing	Indicative bid	$73 per $100 of par
				Discount rate	18.4%
	8.0		Discounted cash flow	Discount rate	6.6%–6.7% (6.6%)
				Risk premium	2.0%–2.5% (2.2%)
Life settlement contracts	13.3		Discounted cash flow	Life expectancy	20–125 months (62)
				Discount rate	8.0%–20.0% (13.2%)
Contingent consideration liability	54.8		Discounted cash flow	AUM growth rate	1.4%–4.9% (3.1%)
				EBITDA margin	8.3%–8.5% (8.4%)
				Discount rate	14.0%

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	190.8	Discounted cash flow	Discount rate	3.6%–6.9% (6.7%)
				Risk premium	2.0%–17.9% (16.5%)
				Liquidity discount	0.0%–10.0% (9.6%)
Life settlement contracts	14.3		Discounted cash flow	Life expectancy	20–132 months (65)
				Discount rate	3.3%–18.0% (11.5%)
Contingent consideration liability	98.1		Discounted cash flow	AUM growth rate	2.4%–11.5% (5.9%)
				EBITDA margin	14.3%
				Discount rate	13.2%

For investment securities, trading – debt and other equity securities using the market pricing technique, a significant increase (decrease) in the indicative bid in isolation would result in a significantly higher (lower) fair value measurement, while a significant increase (decrease) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement.

For investment securities, trading – debt and other equity securities using the discounted cash flow technique, a significant increase (decrease) in the discount rate, risk premium or liquidity discount in isolation would result in a significantly lower (higher) fair value measurement.

13

For life settlement contracts, a significant increase (decrease) in the life expectancy or the discount rate in isolation would result in a significantly lower (higher) fair value measurement.

For the contingent consideration liability, a significant increase (decrease) in the assets under management (“AUM”) growth rate or EBITDA margin, or decrease (increase) in the discount rate, in isolation would result in a significantly higher (lower) fair value measurement.

Financial instruments that were not measured at fair value were as follows:

(in millions)		June 30, 2017				September 30, 2016
	Fair Value Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	8,564.8	$	8,564.8	$	8,247.1	$	8,247.1
Other investments
Time deposits	2	52.8		52.8		131.6		131.6
Cost method investments	3	54.6		73.9		50.0		61.3
Financial Liabilities
Debt
Senior notes	2	1,343.8		1,373.8		1,348.5		1,412.5
Loan	2	30.9		30.9		52.7		52.7

Note 7 – Consolidated Sponsored Investment Products

The Company consolidates SIPs, which consist of both VOEs and VIEs, when it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a VOE or when it is the primary beneficiary of a VIE. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or they do not have defined rights and obligations normally associated with an equity investment. The Company’s VIEs are all investment entities, and its variable interests consist of its equity ownership interest in and certain investment management fees earned from these entities.

The Company adopted new accounting guidance on October 1, 2016 that modifies the consolidation framework for certain investment entities and all limited partnerships. As a result of the modifications, certain SIPs changed from VOEs to VIEs and became subject to a lower threshold for consolidation. Additionally, there is now a single model to determine whether the Company is the primary beneficiary of a VIE. The Company is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of AUM, investment management fee rates, the life of the investment product, prepayment rates and the discount rate. The new guidance did not change the consolidation framework for VOEs.

Consolidated SIPs consist of mutual and other investment funds, limited partnerships and similar structures and CLOs, which are asset-backed financing entities collateralized by a pool of corporate debt securities. The Company consolidated 59 SIPs, none of which are CLOs, as of June 30, 2017 and 40 SIPs, including three CLOs, as of September 30, 2016. The CLO consolidated as of March 31, 2017 was fully liquidated as of June 30, 2017. Amounts for prior periods have been reclassified to combine amounts previously presented separately as consolidated SIPs and consolidated VIEs.

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The balances of consolidated SIPs included in the Company’s condensed consolidated balance sheets were as follows:

(in millions)	June 30, 2017		September 30, 2016
Assets
Cash and cash equivalents	$	221.4	$	236.2
Receivables	224.2		47.9
Investments, at fair value	3,373.0		1,513.4
Other assets	0.9		1.4
Total Assets	$	3,819.5	$	1,798.9
Liabilities
Accounts payable and accrued expenses	$	123.7	$	65.2
Debt	53.1		682.2
Other liabilities	8.0		8.5
Total liabilities	184.8		755.9
Redeemable Noncontrolling Interests	1,830.6		61.1
Stockholders’ Equity
Franklin Resources, Inc.’s interests	1,525.3		414.1
Nonredeemable noncontrolling interests	278.8		567.8
Total stockholders’ equity	1,804.1		981.9
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	3,819.5	$	1,798.9

The consolidated SIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2017 and 2016.

The Company has no right to the consolidated SIPs’ assets, other than its direct equity investments in them and investment management fees earned from them. The debt holders of the consolidated SIPs have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the SIPs’ liabilities.

SIPs are typically consolidated when the Company makes an initial investment in a newly launched investment entity. They are typically deconsolidated when the Company no longer has a controlling financial interest due to redemptions of its investment or increases in third-party investments. The Company’s investments in SIPs subsequent to deconsolidation are accounted for as trading or available-for-sale investment securities, or equity method or cost method investments depending on the structure of the SIP and the Company’s role and level of ownership.

Investments

Investments of consolidated SIPs consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading	$	2,936.5	$	287.8
Other equity securities	291.4		607.3
Other debt securities	145.1		618.3
Total	$	3,373.0	$	1,513.4

Investment securities, trading consist of debt and equity securities that are traded in active markets. Other equity securities consist of equity securities of entities in emerging markets and fund products. Other debt securities consist of debt securities of entities in emerging markets and also included corporate debt securities held by CLOs at September 30, 2016.

15

Investments in fund products for which fair value was estimated using reported net asset value (“NAV”) as a practical expedient were as follows:

(in millions)	Redemption Frequency	June 30, 2017		September 30, 2016
Real estate and private equity funds	Nonredeemable	$	155.4	$	444.2
Hedge funds	Monthly, quarterly or triennially	—		1.8
Total		$	155.4	$	446.0

The investments in real estate and private equity funds are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over a weighted-average period of 4.7 years and 3.2 years at June 30, 2017 and September 30, 2016. The consolidated SIPs’ unfunded commitments to these funds totaled $1.1 million and $74.4 million at June 30, 2017 and September 30, 2016, of which the Company was contractually obligated to fund $0.1 million and $2.2 million based on its ownership percentage in the SIPs.

Fair Value Measurements

Assets and liabilities of consolidated SIPs measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of June 30, 2017
Assets
Investments
Equity securities	$	333.2	$	111.7	$	137.0	$	155.4	$	737.3
Debt securities	2.2		2,488.2		145.3		—		2,635.7
Total Assets Measured at Fair Value	$	335.4	$	2,599.9	$	282.3	$	155.4	$	3,373.0
Liabilities
Other liabilities	$	0.2	$	7.8	$	—	$	—	$	8.0

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of September 30, 2016
Assets
Cash and cash equivalents of CLOs	$	146.4	$	—	$	—	$	—	$	146.4
Receivables of CLOs	—		23.6		—		—		23.6
Investments
Equity securities	155.4		0.5		160.3		446.0		762.2
Debt securities	—		618.9		132.3		—		751.2
Total Assets Measured at Fair Value	$	301.8	$	643.0	$	292.6	$	446.0	$	1,683.4
Liabilities
Other liabilities	$	0.1	$	8.4	$	—	$	—	$	8.5

Investments in fund products for which fair value was estimated using NAV as a practical expedient are not classified in the fair value hierarchy. There were no transfers between Level 1 and Level 2, or into or out of Level 3, during the nine months ended June 30, 2017 and 2016.

16

Changes in Level 3 assets measured at fair value on a recurring basis were as follows:

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the three months ended June 30,
Balance at beginning of period	$	140.7		$	114.4		$	255.1		$	166.8		$	125.4		$	292.2
Realized and unrealized gains (losses) included in investment and other income, net	(10.3		)	18.3			8.0			(3.3		)	(6.3		)	(9.6		)
Purchases	4.7			15.5			20.2			—			2.6			2.6
Sales	(0.5		)	(4.7		)	(5.2		)	(3.8		)	(2.0		)	(5.8		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	2.4			2.4			4.8			(0.3		)	(1.2		)	(1.5		)
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	(10.3	)	$	18.2		$	7.9		$	(3.0	)	$	(6.5	)	$	(9.5	)

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the nine months ended June 30,
Balance at beginning of period	$	160.3		$	132.3		$	292.6		$	191.6		$	130.2		$	321.8
Adoption of new accounting guidance	(45.4		)	(0.5		)	(45.9		)	—			—			—
Realized and unrealized gains (losses) included in investment and other income, net	(9.4		)	3.8			(5.6		)	1.7			(8.2		)	(6.5		)
Purchases	30.2			23.3			53.5			0.3			12.1			12.4
Sales	(0.6		)	(13.0		)	(13.6		)	(33.9		)	(16.1		)	(50.0		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	1.9			—			1.9			(0.3		)	0.5			0.2
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	0.7		$	3.2		$	3.9		$	(0.3	)	$	(9.4	)	$	(9.7	)

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	99.8	Market comparable companies	EBITDA multiple	6.0–12.3 (9.9)
	22.8		Discounted cash flow	Discount rate	5.7%–19.8% (15.0%)
	14.4		Market pricing	Price to earnings ratio	10.0
Debt securities	130.2		Discounted cash flow	Discount rate	5.0%–50.0% (13.4%)
				Risk premium	0.0%–25.0% (8.1%)
	15.1		Market pricing	Private sale pricing	$57 per $100 of par

17

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	113.1	Market comparable companies	EBITDA multiple	5.0–14.2 (10.3)
				Discount for lack of marketability	25.0%–50.0% (36.6%)
	24.3		Discounted cash flow	Discount rate	5.0%–19.0% (13.7%)
	22.9		Market pricing	Price to book value ratio	1.8–2.3 (2.0)
Debt securities	119.7		Discounted cash flow	Discount rate	6.0%–15.0% (10.4%)
				Risk premium	0.0%–28.0% (9.7%)
				EBITDA multiple	5.5
	12.6		Market pricing	Private sale pricing	$57 per $100 of par

Following are descriptions of the sensitivity of the Level 3 recurring fair value measurements to changes in the significant unobservable inputs presented in the above tables.

For securities utilizing the market comparable companies valuation technique, a significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount for lack of marketability in isolation would result in a significantly lower (higher) fair value measurement. The discount for lack of marketability used to determine fair value may include other factors such as liquidity or credit risk.

For securities utilizing the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate or risk premium in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the discount rate is accompanied by a directionally similar change in the risk premium. A significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement.

For securities utilizing a market pricing valuation technique, a significant increase (decrease) in the price to earnings ratio, private sale pricing or price to book value ratio would result in a significantly higher (lower) fair value measurement.

Financial instruments of consolidated SIPs that were not measured at fair value were as follows:

(in millions)	Fair Value Level	June 30, 2017				September 30, 2016
		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	221.4	$	221.4	$	89.8	$	89.8
Financial Liabilities
Debt, excluding CLOs	3	53.1		53.0		75.0		74.6
Debt of CLOs1	2 or 3	—		—		607.2		594.5

_________________

¹    Substantially all was Level 2.

Debt

Debt of consolidated SIPs consisted of the following:

	June 30, 2017			September 30, 2016
(in millions)	Amount		Weighted- Average Effective Interest Rate	Amount		Weighted- Average Effective Interest Rate
Debt, excluding CLOs	$	53.1	5.80%	$	75.0	4.79%
Debt of CLOs	—		N/A	607.2		2.24%
Total	$	53.1		$	682.2

The debt, excluding CLOs had fixed and floating interest rates ranging from 2.36% to 6.69% at June 30, 2017, and from 2.36% to 6.19% at September 30, 2016. The debt maturities ranged from fiscal years 2018 to 2019 at June 30, 2017 and fiscal years 2017 to 2019 at September 30, 2016.

18

At June 30, 2017, maturities for debt of consolidated SIPs were as follows:

(in millions)	Carrying Amount
for the fiscal years ending September 30,
2017	$	—
2018	5.6
2019	47.5
Total	$	53.1

Redeemable Noncontrolling Interests

Changes in redeemable noncontrolling interests of consolidated SIPs were as follows:

(in millions)
for the nine months ended June 30,	2017		2016
Balance at beginning of period	$	61.1	$	59.6
Adoption of new accounting guidance	824.7		—
Net income	33.1		0.4
Net subscriptions and other	489.4		73.2
Net consolidations (deconsolidations)	422.3		(93.8		)
Balance at End of Period	$	1,830.6	$	39.4

Collateralized Loan Obligations

The Company recognized net gains of $4.6 million and $4.8 million during the three and nine months ended June 30, 2017, and $2.2 million and $3.0 million during the three and nine months ended June 30, 2016 related to its own economic interests in the CLOs.

Note 8 – Nonconsolidated Variable Interest Entities

VIEs for which the Company is not the primary beneficiary consist of SIPs and other investment products in which the Company has an equity ownership interest. The Company’s maximum exposure to loss from these VIEs consists of equity investments and investment management fee receivables as follows:

(in millions)	June 30, 2017		September 30, 2016
Investments	$	167.5	$	77.3
Receivables	145.8		21.4
Total	$	313.3	$	98.7

While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching SIPs. The Company also may voluntarily elect to provide its SIPs with additional direct or indirect financial support based on its business objectives. The Company did not provide financial or other support to its SIPs during the nine months ended June 30, 2017. During the nine months ended June 30, 2016, the Company purchased $182.7 million of certain debt securities from six SIPs domiciled in India in order to provide additional liquidity to the SIPs. None of the purchases occurred during the three months ended June 30, 2016.

19

Note 9 – Commitments and Contingencies

Legal Proceedings

On July 28, 2016, a former employee filed a putative class action lawsuit captioned Cryer v. Franklin Resources, Inc., et al. in the United States District Court for the Northern District of California against Franklin, the Franklin Templeton 401(k) Retirement Plan (“Plan”) Investment Committee, and unnamed Investment Committee members. The plaintiff asserts a claim for breach of fiduciary duty under the Employee Retirement Income Security Act, alleging that the defendants selected mutual funds sponsored and managed by the Company (the “Funds”) as investment options for the Plan when allegedly lower-cost and better performing non-proprietary investment vehicles were available. The plaintiff also claims that the total Plan costs, inclusive of investment management and administrative fees, are excessive. The plaintiff alleges that Plan losses exceed $79.0 million and seeks, among other things, damages, disgorgement, rescission of the Plan’s investments in the Funds, attorneys’ fees and costs, and pre- and post-judgment interest. Franklin’s motion to dismiss and motion for summary adjudication were denied on January 17, 2017. On July 26, 2017, the court certified a class of Plan participants. Management strongly believes that the claims made in the lawsuit are without merit and Franklin is defending against them vigorously. Discovery is continuing and, at this stage of the litigation, Franklin cannot currently predict the eventual outcome of the lawsuit or whether it will have a material negative impact on the Company, or reasonably estimate the possible loss or range of loss that may arise from any negative outcome.

The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity. In management’s opinion, an adequate accrual has been made as of June 30, 2017 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

Other Commitments and Contingencies

At June 30, 2017, there were no material changes in the other commitments and contingencies as reported in the Company’s Form 10-K for fiscal year 2016.

Note 10 – Stock-Based Compensation

Stock awards generally entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards generally entitle holders to receive the underlying shares of common stock once the awards vest. Awards generally vest based on the passage of time or the achievement of predetermined Company financial performance goals. In the event a performance measure is not achieved at or above a specified threshold level, the portion of the award tied to such performance measure is forfeited.

Stock and stock unit award activity was as follows:

(shares in thousands)	Time-Based Shares		Performance- Based Shares		Total Shares		Weighted-Average Grant-Date Fair Value
for the nine months ended June 30, 2017
Nonvested balance at October 1, 2016	2,369		1,288		3,657		$	45.67
Granted	2,706		1,110		3,816		34.13
Vested	(45	)	(355	)	(400	)	49.30
Forfeited/canceled	(205	)	(294	)	(499	)	43.23
Nonvested Balance at June 30, 2017	4,825		1,749		6,574		$	38.94

Total unrecognized compensation expense related to nonvested stock and stock unit awards, net of estimated forfeitures, was $144.9 million at June 30, 2017. This expense is expected to be recognized over a remaining weighted-average vesting period of 1.7 years.

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Note 11 – Other Income (Expenses)

Other income (expenses) consisted of the following:

	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions)	2017			2016			2017			2016
Investment and Other Income, Net
Dividend income	$	3.3		$	6.0		$	8.4		$	15.2
Interest income	20.3			12.3			49.9			23.0
Gains on trading investment securities, net	1.1			35.4			11.5			49.8
Realized gains on sale of investment securities, available-for-sale	2.6			2.2			5.5			29.5
Realized losses on sale of investment securities, available-for-sale	(0.4		)	(0.9		)	(1.6		)	(2.7		)
Income from investments in equity method investees	17.9			11.4			88.4			19.6
Other-than-temporary impairment of investments	(0.5		)	(2.2		)	(0.8		)	(7.0		)
Gains (losses) on investments of consolidated SIPs, net	59.8			(0.6		)	52.6			(12.7		)
Foreign currency exchange gains (losses), net	(19.2		)	10.4			(5.6		)	0.7
Other, net	7.3			(8.2		)	14.6			(1.7		)
Total	92.2			65.8			222.9			113.7
Interest Expense	(12.9		)	(12.3		)	(38.8		)	(36.5		)
Other Income, Net	$	79.3		$	53.5		$	184.1		$	77.2

Substantially all of the Company’s dividend income and realized gains and losses on sale of available-for-sale securities were generated by investments in its nonconsolidated SIPs. Interest income was primarily generated by cash equivalents and trading investment securities. Proceeds from the sale of available-for-sale securities were $2.5 million and $28.3 million for the three and nine months ended June 30, 2017, and $27.7 million and $253.7 million for the three and nine months ended June 30, 2016.

Net gains recognized on the Company’s trading investment securities that were held at June 30, 2017 and 2016 were $1.3 million and $3.8 million for the three and nine months ended June 30, 2017, and $26.8 million and $37.0 million for the three and nine months ended June 30, 2016. Net gains recognized on trading investment securities of consolidated SIPs that were held at June 30, 2017 and 2016 were $19.9 million and $25.8 million for the three and nine months ended June 30, 2017 and $2.5 million and $4.7 million for the three and nine months ended June 30, 2016.

21

Note 12 – Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component were as follows:

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2017
Balance at April 1, 2017	$	3.0		$	(368.1	)	$	(8.1	)	$	(373.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(0.1		)	54.0			(0.2		)	53.7
Reclassifications to net investment and other income, net of tax	(1.5		)	—			—			(1.5		)
Total other comprehensive income (loss)	(1.6		)	54.0			(0.2		)	52.2
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	6.8		$	(346.1	)	$	(8.1	)	$	(347.4	)
Adoption of new accounting guidance	(6.8		)	(0.3		)	—			(7.1		)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	3.9			32.3			(0.2		)	36.0
Reclassifications to net investment and other income, net of tax	(2.5		)	—			—			(2.5		)
Total other comprehensive income (loss)	1.4			32.3			(0.2		)	33.5
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2016
Balance at April 1, 2016	$	7.0		$	(319.7	)	$	(5.1	)	$	(317.8	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(4.9		)	(30.8		)	0.2			(35.5		)
Reclassifications to net investment and other income, net of tax	0.8			—			—			0.8
Total other comprehensive income (loss)	(4.1		)	(30.8		)	0.2			(34.7		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	19.3		$	(327.8	)	$	(5.7	)	$	(314.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(2.4		)	(22.7		)	0.8			(24.3		)
Reclassifications to net investment and other income, net of tax	(14.0		)	—			—			(14.0		)
Total other comprehensive income (loss)	(16.4		)	(22.7		)	0.8			(38.3		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

In this section, we discuss and analyze the results of operations and financial condition of Franklin Resources, Inc. (“Franklin”) and its subsidiaries (collectively, the “Company”). In addition to historical information, we also make statements relating to the future, called “forward-looking” statements, which are provided under the “safe harbor” protection of the U.S. 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,” “plan,” “seek,” “estimate” or other similar words. Moreover, statements that speculate about future events are forward-looking statements. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. You should carefully review the “Risk Factors” section set forth below, which describes these risks, uncertainties and other important factors in more detail.

While forward-looking statements are our best prediction at the time that they are made, you should not rely on them and are cautioned against doing so. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. They are neither statements of historical fact nor guarantees or assurances of future performance. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. If a circumstance occurs after the date of this Form 10-Q that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we do not have an obligation, and we undertake no obligation, to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, unless required by law.

The following discussion should be read in conjunction with our Form 10-K for the fiscal year ended September 30, 2016 (“fiscal year 2016”) filed with the U.S. Securities and Exchange Commission, and the condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q.

OVERVIEW

We are a global investment management organization and derive our operating revenues and net income from providing investment management and related services to investors in jurisdictions worldwide through products that include investment funds and institutional, high net-worth and separately-managed accounts (collectively, our “sponsored investment products” or “SIPs”). In addition to investment management, our services include fund administration, sales, distribution, marketing, shareholder servicing, and other fiduciary services. Our SIPs and investment management and related services are distributed or marketed to investors globally under nine distinct brand names: Franklin^®, Templeton^®, Franklin Mutual Series^®, Franklin Bissett^®, Fiduciary Trust™, Darby^®, Balanced Equity Management^®, K2^® and LibertyShares™. We offer a broad range of SIPs under equity, multi-asset/balanced, fixed income and cash management funds and accounts, including alternative investment products, that meet a wide variety of specific investment needs of individual and institutional investors. We also provide sub-advisory services to certain investment products sponsored by other companies which may be sold to investors under the brand names of those other companies or on a co-branded basis.

The level of our revenues depends largely on the level and relative mix of assets under management (“AUM”). As noted in the “Risk Factors” section set forth below, the amount and mix of our AUM are subject to significant fluctuations and can negatively impact our revenues and income. The level of our revenues also depends on mutual fund sales, the number of mutual fund shareholder accounts and the fee rates charged for our services, which are based on contracts with our SIPs or our clients. These arrangements could change in the future.

During our third fiscal quarter, the global equity markets were volatile but continued to provide positive returns, reflecting, among other things, generally positive global economic data tempered by political uncertainty, as the MSCI World Index and S&P 500 Index increased 4.2% and 3.1% for the quarter and 13.2% and 13.5% for the fiscal year to date. The global bond markets were also positive during the quarter amid rising interest rates and concerns of higher inflation, and the Barclays Global Aggregate Index increased 2.6%, while it decreased 3.0% for the fiscal year to date.

Our total AUM at June 30, 2017 was $742.8 billion, 1% higher than at September 30, 2016 and at June 30, 2016. Simple monthly average AUM (“average AUM”) for the three months ended June 30, 2017 was comparable to the same period in the prior fiscal year, but decreased3% for the nine-month period. The decline in AUM negatively affected our fee revenues and operating income for the nine months ended June 30, 2017.

23

Uncertainties regarding the global economy remain for the foreseeable future. As we continue to confront the challenges of the current economic and regulatory environments, we remain focused on the investment performance of our SIPs and on providing high quality customer service to our clients. We continuously perform reviews of our business model. While we remain focused on expense management, we will also seek to attract, retain and develop employees and invest strategically in systems and technology that will provide a secure and stable environment. We will continue to seek to protect and further our brand recognition while developing and maintaining broker-dealer and client relationships. The success of these and other strategies may be influenced by the factors discussed in the “Risk Factors” section set forth below.

RESULTS OF OPERATIONS

	Three Months Ended June 30,						Percent Change		Nine Months Ended June 30,						Percent Change
(in millions, except per share data)	2017			2016					2017			2016
Operating revenues	$	1,613.9		$	1,634.3		(1	%)	$	4,775.3		$	5,006.2		(5	%)
Operating income	564.2			595.4			(5	%)	1,706.6			1,786.3			(4	%)
Net income attributable to Franklin Resources, Inc.	410.6			446.4			(8	%)	1,271.5			1,254.6			1	%
Diluted earnings per share	$	0.73		$	0.77		(5	%)	$	2.25		$	2.12		6	%
Operating margin1	35.0		%	36.4		%			35.7		%	35.7		%

^{___________________} 

¹  Defined as operating income divided by total operating revenues.

Operating income decreased$31.2 million for the three months ended June 30, 2017, as compared to the same period in the prior fiscal year, as operating revenues decreased1% while operating expenses increased1%. Net income attributable to Franklin Resources, Inc. decreased$35.8 million primarily due to the decrease in operating income.

Operating income decreased$79.7 million for the nine months ended June 30, 2017 as a 5% decrease in operating revenues was partially offset by a 5% decrease in operating expenses. Net income attributable to Franklin Resources, Inc. increased$16.9 million, primarily due to higher investment and other income, net, less the portion attributable to noncontrolling interests, substantially offset by the decrease in operating income.

Diluted earnings per share decreased for the three months ended June 30, 2017 and increased for the nine months ended June 30, 2017. The changes were consistent with the changes in net income and the impacts of 4% and 5% decreases in diluted average common shares outstanding primarily resulting from repurchases of shares of our common stock during the twelve-month period ended June 30, 2017.

ASSETS UNDER MANAGEMENT

AUM by investment objective was as follows:

(in billions)	June 30, 2017		June 30, 2016		Percent Change
Equity
Global/international	$	206.8	$	195.7	6	%
United States	105.7		101.1		5	%
Total equity	312.5		296.8		5	%
Multi-Asset/Balanced	141.2		135.0		5	%
Fixed Income
Tax-free	71.2		76.1		(6	%)
Taxable
Global/international	159.8		165.3		(3	%)
United States	52.1		52.8		(1	%)
Total fixed income	283.1		294.2		(4	%)
Cash Management	6.0		6.1		(2	%)
Total	$	742.8	$	732.1	1	%

24

AUM at June 30, 2017increased1% from June 30, 2016 as $61.1 billion of net market change and other, which consists of $84.2 billion of market appreciation and other, net of $23.1 billion of long-term distributions, was substantially offset by $50.4 billion of net outflows.

Average AUM and the mix of average AUM by investment objective are shown below.

(in billions)	Average AUM				Percent Change		Mix of Average AUM
for the three months ended June 30,	2017		2016				2017		2016
Equity
Global/international	$	206.3	$	202.0	2	%	28	%	27	%
United States	105.7		100.4		5	%	14	%	14	%
Total equity	312.0		302.4		3	%	42	%	41	%
Multi-Asset/Balanced	141.7		134.2		6	%	19	%	18	%
Fixed Income
Tax-free	71.4		74.6		(4	%)	10	%	10	%
Taxable
Global/international	158.3		169.3		(6	%)	21	%	23	%
United States	52.5		53.0		(1	%)	7	%	7	%
Total fixed income	282.2		296.9		(5	%)	38	%	40	%
Cash Management	6.2		6.3		(2	%)	1	%	1	%
Total	$	742.1	$	739.8	0	%	100	%	100	%

(in billions)	Average AUM				Percent Change		Mix of Average AUM
for the nine months ended June 30,	2017		2016				2017		2016
Equity
Global/international	$	201.8	$	206.2	(2	%)	28	%	27	%
United States	103.7		100.4		3	%	14	%	14	%
Total equity	305.5		306.6		0	%	42	%	41	%
Multi-Asset/Balanced	139.5		134.9		3	%	19	%	18	%
Fixed Income
Tax-free	72.6		73.3		(1	%)	10	%	10	%
Taxable
Global/international	156.2		176.6		(12	%)	21	%	23	%
United States	52.6		54.8		(4	%)	7	%	7	%
Total fixed income	281.4		304.7		(8	%)	38	%	40	%
Cash Management	6.2		6.5		(5	%)	1	%	1	%
Total	$	732.6	$	752.7	(3	%)	100	%	100	%

Components of the change in AUM are shown below. Net market change and other includes long-term distributions, appreciation (depreciation), foreign exchange revaluation, an acquisition and net cash management.

(in billions)	Three Months Ended June 30,						Percent Change		Nine Months Ended June 30,						Percent Change
	2017			2016					2017			2016
Beginning AUM	$	740.0		$	742.6		0	%	$	733.3		$	770.9		(5	%)
Long-term sales	29.8			22.7			31	%	84.8			79.0			7	%
Long-term redemptions	(41.1		)	(41.8		)	(2	%)	(132.3		)	(142.3		)	(7	%)
Long-term net exchanges	0.2			(0.1		)	NM		(0.1		)	(0.4		)	(75	%)
Long-term reinvested distributions	3.8			4.2			(10	%)	14.9			19.0			(22	%)
Net flows	(7.3		)	(15.0		)	(51	%)	(32.7		)	(44.7		)	(27	%)
Net market change and other	10.1			4.5			124	%	42.2			5.9			615	%
Ending AUM	$	742.8		$	732.1		1	%	$	742.8		$	732.1		1	%

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Components of the change in AUM by investment objective were as follows:

(in billions)	Equity						Multi-Asset/Balanced			Fixed Income									Cash Management		Total
for the three months ended June 30, 2017	Global/ International			United States						Tax-Free			Taxable Global/ International			Taxable United States
AUM at April 1, 2017	$	204.9		$	105.3		$	141.9		$	71.5		$	157.6		$	52.8		$	6.0	$	740.0
Long-term sales	6.5			3.6			4.6			1.7			11.2			2.2			—		29.8
Long-term redemptions	(12.9		)	(5.9		)	(6.8		)	(2.9		)	(9.5		)	(3.1		)	—		(41.1		)
Long-term net exchanges	0.1			—			0.1			—			—			—			—		0.2
Long-term reinvested distributions	0.1			0.4			1.5			0.5			0.9			0.4			—		3.8
Net flows	(6.2		)	(1.9		)	(0.6		)	(0.7		)	2.6			(0.5		)	—		(7.3		)
Net market change and other	8.1			2.3			(0.1		)	0.4			(0.4		)	(0.2		)	—		10.1
AUM at June 30, 2017	$	206.8		$	105.7		$	141.2		$	71.2		$	159.8		$	52.1		$	6.0	$	742.8

(in billions)	Equity						Multi-Asset/Balanced			Fixed Income									Cash Management			Total
for the three months ended June 30, 2016	Global/ International			United States						Tax-Free			Taxable Global/ International			Taxable United States
AUM at April 1, 2016	$	204.7		$	99.5		$	132.6		$	73.6		$	172.8		$	53.2		$	6.2		$	742.6
Long-term sales	5.0			3.6			3.6			2.4			6.2			1.9			—			22.7
Long-term redemptions	(12.3		)	(5.2		)	(5.8		)	(2.2		)	(12.6		)	(3.7		)	—			(41.8		)
Long-term net exchanges	(0.3		)	—			—			0.2			(0.2		)	0.2			—			(0.1		)
Long-term reinvested distributions	0.2			0.7			1.6			0.5			0.9			0.3			—			4.2
Net flows	(7.4		)	(0.9		)	(0.6		)	0.9			(5.7		)	(1.3		)	—			(15.0		)
Net market change and other	(1.6		)	2.5			3.0			1.6			(1.8		)	0.9			(0.1		)	4.5
AUM at June 30, 2016	$	195.7		$	101.1		$	135.0		$	76.1		$	165.3		$	52.8		$	6.1		$	732.1

AUM increased$2.8 billion during the quarter ended June 30, 2017 due to $10.1 billion of net market change and other, partially offset by $7.3 billion of net outflows. Net market change and other consists of $12.0 billion of market appreciation and a $2.8 billion increase from foreign exchange revaluation, net of $4.7 billion of long-term distributions. The market appreciation occurred in all long-term investment objectives, primarily in equity products, and reflected positive returns in global equity markets as evidenced by increases of 3.1% and 4.2% in the S&P 500 Index and MSCI World Index. The foreign exchange revaluation resulted from AUM in products that are not U.S. dollar denominated, which represented approximately 14% of total AUM, and was primarily due to weakening of the U.S. dollar against the Euro and Canadian dollar. The net outflows occurred most significantly in global/international equity products, including $2.8 billion from three institutional separate accounts. Long-term sales increased31% to $29.8 billion, as compared to the prior-year period, primarily due to higher sales in global/international and multi-asset/balanced investment objectives. Long-term redemptions decreased2% to $41.1 billion primarily due to lower redemptions of global/international fixed income products, partially offset by higher redemptions of equity and multi-asset/balanced products.

AUM decreased$10.5 billion or 1% during the quarter ended June 30, 2016 due to $15.0 billion of net outflows, partially offset by $4.5 billion of net market change and other. The net outflows, which occurred in all long-term investment objectives except tax-free fixed income, and primarily in global/international products, included $5.8 billion from three global/international fixed income funds with global macro strategies that had underperformed against their peer groups during the first nine months of fiscal year 2016, $3.0 billion from two institutional products and $1.9 billion from a global/international equity fund that had underperformed against its peer group. Net market change and other primarily consists of $10.9 billion of market appreciation partially offset by $5.3 billion of long-term distributions and a $1.0 billion decrease from foreign exchange revaluation. The market appreciation occurred primarily in U.S. products and reflected positive returns in the U.S. market, with increases in the S&P 500 Index of 2.5%, the Barclays U.S. Aggregate Index of 2.2% and the Barclays Municipal Bond 7 Year Index of 1.7%.The foreign exchange revaluation was primarily due to strengthening of the U.S. dollar against the Euro, Australian dollar and Pound Sterling, partially offset by weakening of the U.S. dollar against the Japanese yen.

26

(in billions)	Equity						Multi-Asset/Balanced			Fixed Income									Cash Management			Total
for the nine months ended June 30, 2017	Global/ International			United States						Tax-Free			Taxable Global/ International			Taxable United States
AUM at October 1, 2016	$	200.4		$	103.3		$	137.4		$	76.5		$	156.2		$	53.4		$	6.1		$	733.3
Long-term sales	19.3			11.6			12.8			5.8			26.3			9.0			—			84.8
Long-term redemptions	(37.4		)	(19.8		)	(19.5		)	(9.4		)	(35.3		)	(10.9		)	—			(132.3		)
Long-term net exchanges	(0.1		)	0.3			0.4			(0.5		)	(0.4		)	0.2			—			(0.1		)
Long-term reinvested distributions	2.4			3.6			4.0			1.5			2.5			0.9			—			14.9
Net flows	(15.8		)	(4.3		)	(2.3		)	(2.6		)	(6.9		)	(0.8		)	—			(32.7		)
Net market change and other	22.2			6.7			6.1			(2.7		)	10.5			(0.5		)	(0.1		)	42.2
AUM at June 30, 2017	$	206.8		$	105.7		$	141.2		$	71.2		$	159.8		$	52.1		$	6.0		$	742.8

(in billions)	Equity						Multi-Asset/Balanced			Fixed Income									Cash Management			Total
for the nine months ended June 30, 2016	Global/ International			United States						Tax-Free			Taxable Global/ International			Taxable United States
AUM at October 1, 2015	$	212.1		$	100.8		$	138.3		$	71.7		$	182.7		$	58.5		$	6.8		$	770.9
Long-term sales	17.0			10.2			11.5			6.3			27.9			6.1			—			79.0
Long-term redemptions	(35.7		)	(17.7		)	(21.8		)	(6.7		)	(48.0		)	(12.4		)	—			(142.3		)
Long-term net exchanges	(0.9		)	0.6			(0.4		)	0.7			(0.3		)	(0.1		)	—			(0.4		)
Long-term reinvested distributions	3.5			5.0			4.7			1.5			3.3			1.0			—			19.0
Net flows	(16.1		)	(1.9		)	(6.0		)	1.8			(17.1		)	(5.4		)	—			(44.7		)
Net market change and other	(0.3		)	2.2			2.7			2.6			(0.3		)	(0.3		)	(0.7		)	5.9
AUM at June 30, 2016	$	195.7		$	101.1		$	135.0		$	76.1		$	165.3		$	52.8		$	6.1		$	732.1

AUM increased$9.5 billion or 1% during the nine months ended June 30, 2017 due to $42.2 billion of net market change and other, substantially offset by $32.7 billion of net outflows. Net market change and other primarily consists of $59.1 billion of market appreciation net of $17.7 billion of long-term distributions. The market appreciation occurred in all long-term investment objectives except tax-free fixed income, primarily in equity, global/international fixed income and multi-asset/balanced products, and reflected positive returns in global equity markets as evidenced by increases of 13.5% and 13.2% in the S&P 500 Index and MSCI World Index, and strong performance of our global/international fixed income products despite a 3.0% decrease in the Bloomberg Barclays Global Aggregate Index. The net outflows, which occurred in all long-term investment objectives and most significantly in equity and global/international fixed income products, included $9.6 billion from three global/international fixed income funds with global macro strategies that had underperformed against their peer groups during most of fiscal year 2016, $4.5 billion from four institutional separate accounts, $2.9 billion from two sub-advised variable annuity clients due to shifts in their investment strategies and $1.2 billion from a global/international equity fund. Long-term sales increased7% to $84.8 billion, as compared to the prior-year period, primarily due to higher sales in taxable U.S. fixed income and global/international equity products. Long-term redemptions decreased7% to $132.3 billion primarily due to lower redemptions of global/international fixed income products.

AUM decreased$38.8 billion or 5% during the nine months ended June 30, 2016 due to $44.7 billion of net outflows, partially offset by $5.9 billion of net market change and other. The net outflows occurred in all long-term investment objectives except tax-free fixed income, and primarily in global/international and multi-asset/balanced products. The net outflows included $20.8 billion from four global/international fixed income funds with global macro strategies that had underperformed against their peer groups during the first nine months of fiscal year 2016, $4.7 billion redeemed by a sub-advised variable annuity client, $4.0 billion from three institutional products, $3.8 billion from a multi-asset/balanced fund that had underperformed against its peer group and $1.4 billion from a global/international equity fund that had also underperformed against its peer group. The outflows were partially offset by a $5.5 billion inflow for an institutional global macro mandate. Net market change and other primarily consists of $27.0 billion of market appreciation and a $2.0 billion increase from foreign exchange revaluation, substantially offset by $22.4 billion of long-term distributions. The market appreciation occurred in all long-term investment objectives and reflected positive returns in global markets, with increases in the MSCI World Index of 6.7%, the S&P 500 Index of 11.2%, and the Bloomberg Barclays Global Aggregate Index of 8.0%. The foreign exchange revaluation was primarily due to weakening of the U.S. dollar against the Canadian dollar, Japanese yen and Australian dollar, partially offset by strengthening of the U.S. dollar against the Pound Sterling.

27

Average AUM by sales region was as follows:

	Three Months Ended June 30,				Percent Change		Nine Months Ended June 30,				Percent Change
(in billions)	2017		2016				2017		2016
United States	$	499.6	$	501.5	0	%	$	496.2	$	508.9	(2	%)
International
Europe, the Middle East and Africa	105.0		106.6		(2	%)	102.9		110.4		(7	%)
Asia-Pacific	88.4		82.3		7	%	85.3		82.5		3	%
Canada	31.2		31.2		0%		30.8		31.4		(2	%)
Latin America1	17.9		18.2		(2	%)	17.4		19.5		(11	%)
Total international	242.5		238.3		2	%	236.4		243.8		(3	%)
Total	$	742.1	$	739.8	0	%	$	732.6	$	752.7	(3	%)

^{__________________} 

¹  Latin America sales region includes North America-based advisers serving non-resident clients.

The mix of average AUM in the United States sales region was 67% and 68% for the three and nine months ended June 30, 2017 and 68% for the same periods in the prior fiscal year.

Due to the global nature of our business operations, investment management and related services may be performed in locations unrelated to the sales region.

Investment Performance Overview

A key driver of our overall success is the long-term investment performance of our SIPs. A standard measure of the performance of these investment products is the percentage of AUM exceeding benchmarks and peer group medians. Our global/international fixed income products generated notable results with at least 82% of AUM exceeding the benchmark and peer group median comparisons for all periods presented. Strong performance for these products during the nine months ended June 30, 2017 resulted in significant improvements from September 30, 2016 to the benchmark and peer group median comparisons for the one-year and three-year periods. The performance of our multi-asset/balanced products significantly exceeded the peer group medians for the one- and ten-year periods, but has lagged in the comparisons for the three- and five-year periods and to the benchmarks for the three-, five- and ten-year periods, reflecting the performance of a fund which represents approximately 70% of this category. The performance of our tax-free and U.S. taxable fixed income, as well as of our equity products, has mostly lagged the benchmarks and peer group medians during the periods presented.

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The performance of our products against benchmarks and peer group medians is presented in the table below.

	Benchmark Comparison 1,2								Peer Group Comparison 1,3
	% of AUM Exceeding Benchmark								% of AUM in Top Two Peer Group Quartiles
as of June 30, 2017	1-Year		3-Year		5-Year		10-Year		1-Year		3-Year		5-Year		10-Year
Equity
Global/international	86	%	18	%	32	%	49	%	85	%	36	%	59	%	49	%
United States	25	%	35	%	7	%	30	%	36	%	51	%	39	%	70	%
Total equity	64	%	24	%	23	%	42	%	67	%	42	%	51	%	58	%
Multi-Asset/Balanced	86	%	9	%	9	%	8	%	91	%	4	%	14	%	95	%
Fixed Income
Tax-free	3	%	42	%	39	%	27	%	24	%	43	%	40	%	88	%
Taxable
Global/international	94	%	82	%	84	%	83	%	99	%	88	%	90	%	91	%
United States	92	%	10	%	41	%	41	%	78	%	26	%	30	%	36	%
Total fixed income	68	%	57	%	63	%	57	%	71	%	62	%	63	%	79	%

^{__________________} 

¹  AUM measured in the benchmark and peer group rankings represents 90% and 81% of our total AUM as of June 30, 2017.

²  The benchmark comparisons are based on each fund’s return as compared to a market index that has been selected to be generally consistent with the investment objectives of the fund.

³  The peer group rankings are sourced from either Lipper, a Thomson Reuters Company, Morningstar or eVestment in each fund’s market and were based on an absolute ranking of returns. © 2017 Morningstar, Inc. All rights reserved. The information herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

For products with multiple share classes, rankings for the primary share class are applied to the entire product. Rankings for most institutional separately-managed accounts are as of the prior quarter-end due to timing of availability of information. Private equity funds, certain privately-offered emerging market and real estate funds, cash management funds and certain hedge and other funds are not included. Certain other funds and products were also excluded because of limited benchmark or peer group data. Had this data been available, the results may have been different. These results assume the reinvestment of dividends, are based on data available as of July 19, 2017 and are subject to revision. While we remain focused on achieving strong long-term performance, our future benchmark and peer group rankings may vary from our past performance.

OPERATING REVENUES

The table below presents the percentage change in each operating revenue category.

(in millions)	Three Months Ended June 30,				Percent Change		Nine Months Ended June 30,				Percent Change
	2017		2016				2017		2016
Investment management fees	$	1,097.0	$	1,093.5	0	%	$	3,249.4	$	3,375.4	(4	%)
Sales and distribution fees	433.3		450.2		(4	%)	1,283.8		1,365.6		(6	%)
Shareholder servicing fees	56.7		61.5		(8	%)	169.7		185.2		(8	%)
Other	26.9		29.1		(8	%)	72.4		80.0		(10	%)
Total Operating Revenues	$	1,613.9	$	1,634.3	(1	%)	$	4,775.3	$	5,006.2	(5	%)

Investment Management Fees

Investment management fees are generally calculated under contractual arrangements with our SIPs and the products for which we provide sub-advisory services as a percentage of the market value of AUM. Annual rates vary by investment objective and type of services provided. Rates for products sold outside of the U.S. are generally higher than for U.S. products because they are structured to compensate for certain distribution costs.

Investment management fees increased$3.5 million for the three months ended June 30, 2017 primarily due to an $8.8 million increase in performance fees. Average AUM and the effective fee rate were comparable to the same period in the prior fiscal year.

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Investment management fees decreased$126.0 million for the nine months ended June 30, 2017 primarily due to a 3% decrease in average AUM and the impact of a lower effective fee rate, partially offset by higher performance fees. The decrease in average AUM occurred primarily in the global/international fixed income investment objective, and across all sales regions except Asia-Pacific.

Our effective investment management fee rate (annualized investment management fees divided by average AUM) was 59.1 basis points for both the three and nine months ended June 30, 2017, and 59.1 and 59.8 basis points for the same periods in the prior fiscal year. The rate decrease for the nine-month period was primarily due to higher weightings of AUM in lower fee products in the global/international fixed income investment objective in the Europe, Middle East and Africa and Asia-Pacific sales regions.

Performance-based investment management fees were $10.3 million and $34.2 million for the three and nine months ended June 30, 2017, and $1.5 million and $23.2 million for the same periods in the prior fiscal year. The increases were primarily due to performance fees earned from separately-managed accounts.

Our product offerings and global operations are diverse. As such, the impact of future changes in the market value of AUM on investment management fees will be affected by the relative mix of investment objective, geographic region, distribution channel and investment vehicle of the assets.

Sales and Distribution Fees

We earn fees from the sale of certain classes of SIPs on which investors pay a commission at the time of purchase (“commissionable sales”). Sales commissions are reduced or eliminated on some share classes and for some sale transactions depending upon the amount invested and the type of investor. Therefore, sales fees will change with the overall level of gross sales, the size of individual transactions, and the relative mix of sales between different share classes and types of investors.

Globally, our mutual funds and certain other products generally pay us distribution fees in return for sales, marketing and distribution efforts on their behalf. Specifically, the majority of U.S.-registered mutual funds, with the exception of certain of our money market mutual funds, have adopted distribution plans under Rule 12b-1 (the “Rule 12b-1 Plans”) promulgated under the Investment Company Act of 1940. The Rule 12b-1 Plans permit the mutual funds to pay us for marketing, marketing support, advertising, printing and sales promotion services relating to the distribution of their shares, subject to the Rule 12b-1 Plans’ limitations on amounts based on average daily net AUM. Similar arrangements exist for the distribution of our non-U.S. funds.

We pay substantially all of our sales and distribution fees to the financial advisers and other intermediaries who sell our SIPs to investors on our behalf. See the description of sales, distribution and marketing expenses below.

Sales and distribution fees by revenue driver are presented below.

(in millions)	Three Months Ended June 30,				Percent Change		Nine Months Ended June 30,				Percent Change
	2017		2016				2017		2016
Asset-based fees	$	334.7	$	345.7	(3	%)	$	1,005.2	$	1,062.8	(5	%)
Sales-based fees	96.4		102.0		(5	%)	271.8		295.7		(8	%)
Contingent sales charges	2.2		2.5		(12	%)	6.8		7.1		(4	%)
Sales and Distribution Fees	$	433.3	$	450.2	(4	%)	$	1,283.8	$	1,365.6	(6	%)

Asset-based distribution fees decreased$11.0 million and $57.6 million for the three and nine months ended June 30, 2017 primarily due to decreases of $9.2 million and $48.8 million from 3% and 4% decreases in the related average AUM.

Sales-based fees decreased$5.6 million and $23.9 million for the three and nine months ended June 30, 2017 primarily due to decreases of $4.4 million and $14.6 million from lower effective fee rates and $1.7 million and $10.1 million from a lower mix of U.S. product commissionable sales. The lower effective fee rates primarily resulted from a higher mix of non-U.S. product fixed income sales and tiered pricing on larger trades. U.S. products typically generate higher sales fees than non-U.S. products, and equity products typically generate higher sales fees than fixed income products. Total commissionable sales increased 10% and 4%, as significant increases in non-U.S. product sales were largely offset by decreases in U.S. product sales.

Commissionable sales represented 12% and 11% of total sales for the three and nine months ended June 30, 2017, and 14% and 11% for the same periods in the prior year.

Contingent sales charges are earned from investor redemptions within a contracted period of time. These charges are levied only on certain shares sold without a front-end sales charge, and vary with the mix of redemptions of these shares.

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Shareholder Servicing Fees

We receive shareholder servicing fees as compensation for providing transfer agency services, which include providing customer statements, transaction processing, customer service and tax reporting. These fees are generally fixed charges per shareholder account that vary with the particular type of fund and the service being rendered. In some instances, we charge SIPs these fees based on the level of AUM. In the U.S., transfer agency service agreements provide that accounts closed in a calendar year generally remain billable at a reduced rate through the second quarter of the following calendar year. Accordingly, the level of fees varies with the change in open accounts and the level of closed accounts that remain billable. Approximately 0.6 million and 1.2 million accounts closed in the U.S. during calendar years 2016 and 2015.

Other services include tax planning and preparation for individual and trust clients, for which fees are primarily account based, and trust services, for which fees are based on the level of AUM.

Shareholder servicing fees decreased $4.8 million and $15.5 million for the three and nine months ended June 30, 2017 primarily due to decreases of $4.1 million and $12.1 million from SIPs in the U.S. resulting from decreases in active accounts and $0.8 million and $3.4 million from SIPs in Europe resulting from lower levels of related AUM and decreases in active accounts.

Other

Other revenue decreased$2.2 million and $7.6 million for the three and nine months ended June 30, 2017 primarily due to lower interest and dividend income from consolidated SIPs.

OPERATING EXPENSES

The table below presents the percentage change in each operating expense category.

	Three Months Ended June 30,				Percent Change		Nine Months Ended June 30,				Percent Change
(in millions)	2017		2016				2017		2016
Sales, distribution and marketing	$	541.2	$	553.4	(2	%)	$	1,596.0	$	1,673.7	(5	%)
Compensation and benefits	342.7		326.9		5	%	997.6		1,043.7		(4	%)
Information systems and technology	54.1		50.5		7	%	159.8		151.3		6	%
Occupancy	30.2		33.1		(9	%)	88.3		96.8		(9	%)
General, administrative and other	81.5		75.0		9	%	227.0		254.4		(11	%)
Total Operating Expenses	$	1,049.7	$	1,038.9	1	%	$	3,068.7	$	3,219.9	(5	%)

Sales, Distribution and Marketing

Sales, distribution and marketing expenses primarily consist of payments to financial advisers, broker-dealers and other third parties for providing services to investors in our SIPs, including marketing support services. Sales expenses are determined as percentages of sales and are incurred from the same commissionable sales transactions that generate sales fee revenues. Distribution expenses are determined as percentages of AUM and are incurred from assets that generate either distribution fees or higher levels of investment management fees. Marketing support expenses are based on AUM, sales or a combination thereof. Also included is the amortization of deferred sales commissions related to up-front commissions on shares sold without a front-end sales charge to investors. The deferred sales commissions are amortized over the periods in which commissions are generally recovered from related revenues.

Sales, distribution and marketing expenses by cost driver are presented below.

	Three Months Ended June 30,				Percent Change		Nine Months Ended June 30,				Percent Change
(in millions)	2017		2016				2017		2016
Asset-based expenses	$	432.9	$	442.1	(2	%)	$	1,294.3	$	1,354.5	(4	%)
Sales-based expenses	89.8		90.4		(1	%)	248.8		261.4		(5	%)
Amortization of deferred sales commissions	18.5		20.9		(11	%)	52.9		57.8		(8	%)
Sales, Distribution and Marketing	$	541.2	$	553.4	(2	%)	$	1,596.0	$	1,673.7	(5	%)

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Asset-based expenses decreased$9.2 million and $60.2 million for the three and nine months ended June 30, 2017 primarily due to decreases of $8.9 million and $58.5 million from 2% and 3% decreases in the related average AUM. Distribution expenses, which are typically higher for non-U.S. products, are generally not directly correlated with distribution fee revenues due to international fee structures which provide for recovery of certain distribution costs through investment management fees.

Sales-based expenses decreased$0.6 million and $12.6 million for the three and nine months ended June 30, 2017 primarily due to decreases of $1.7 million and $9.4 million from lower average commission rates mainly resulting from a higher mix of non-U.S. product fixed income sales and tiered pricing on larger trades. U.S. products typically generate higher sales commissions than non-U.S. products and equity products typically generate higher sales commissions than fixed income products. The decrease for the nine-month period also included $4.3 million from a lower mix of U.S. product commissionable sales. Total commissionable sales increased 10% and 4% for the three and nine months ended June 30, 2017, as significant increases in non-U.S. product sales were largely offset by decreases in U.S. product sales.

Amortization of deferred sales commissions decreased$2.4 million and $4.9 million for the three and nine months ended June 30, 2017 primarily due to decreases from lower sales of U.S. shares sold without a front-end sales charge to investors, partially offset by $2.6 million and $7.7 million adjustments recognized in fiscal year 2016 related to prior-year amortization expense.

Compensation and Benefits

Compensation and benefit expenses increased$15.8 million and decreased$46.1 million for the three and nine months ended June 30, 2017. The increase for the three-month period was primarily due to a $16.1 million increase in variable compensation, and the decrease for the nine-month period was due to a $67.1 million decrease in salaries, wages and benefits, partially offset by a $21.0 million increase in variable compensation. The increases in variable compensation were primarily due to increases of $6.8 million and $12.7 million from higher market valuations of mutual fund awards and $3.9 million and $9.1 million in bonus expense based on higher expectations of our annual performance, partially offset by decreases of $2.0 million and $8.9 million in amortization of stock and stock unit awards. Salaries, wages and benefits were comparable for the three-month period but decreased for the nine-month period primarily due to decreases of $4.7 million and $53.6 million in termination benefits, offset by increases of $4.7 million and $13.7 million for annual merit salary adjustments that were effective December 1, 2016 and 2015. The decrease for the nine-month period also included a $22.0 million decrease from lower average staffing levels.

Variable compensation as a percentage of compensation and benefits was 37% and 36% for the three and nine months ended June 30, 2017, and 33% and 32% for the same periods in the prior fiscal year. At June 30, 2017, our global workforce had increased to approximately 9,400 employees from approximately 9,100 at June 30, 2016.

We continue to place a high emphasis on our pay for performance philosophy. As such, any changes in the underlying performance of our SIPs or changes in the composition of our incentive compensation offerings could have an impact on compensation and benefit expenses going forward. However, in order to attract and retain talented individuals, our level of compensation and benefit expenses may increase more quickly or decrease more slowly than our revenue.

Information Systems and Technology

Information systems and technology expenses increased$3.6 million and $8.5 million for the three and nine months ended June 30, 2017 primarily due to higher external data service and software costs.

Details of capitalized information systems and technology costs are shown below.

	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions)	2017			2016			2017			2016
Net carrying value at beginning of period	$	96.4		$	86.5		$	88.1		$	89.8
Additions, net of disposals	14.1			10.7			49.0			30.8
Amortization	(12.7		)	(12.5		)	(39.3		)	(35.9		)
Net Carrying Value at End of Period	$	97.8		$	84.7		$	97.8		$	84.7

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Occupancy

We conduct our worldwide operations using a combination of leased and owned facilities. Occupancy expenses include rent and other facilities-related costs including depreciation and utilities.

Occupancy expenses decreased$2.9 million and $8.5 million for the three and nine months ended June 30, 2017 primarily due to lower rent expense.

General, Administrative and Other

General, administrative and other operating expenses primarily consist of fund-related service fees payable to external parties, advertising and promotion costs, professional fees, corporate travel and entertainment, and other miscellaneous expenses.

General, administrative and other operating expenses increased $6.5 million for the three months ended June 30, 2017 primarily due to higher consolidated SIPs, advertising and promotion, corporate travel and entertainment and non-executive directors’ compensation expenses, substantially offset by lower contingent consideration expense. Consolidated SIPs expenses increased $4.1 million. Advertising and promotion expenses increased $2.7 million and corporate travel expenses increased $1.8 million due to higher activity levels. Non-executive directors’ compensation increased $1.8 million primarily due to the impact of an increase in our stock price on the deferred portion, as compared to a decrease in the prior year. The increases were substantially offset by a $6.8 million decrease in contingent consideration expense, primarily due to a decline in certain acquisition-related AUM.

General, administrative and other operating expenses decreased$27.4 million for the nine months ended June 30, 2017 primarily due to lower expenses related to intangible assets and contingent consideration. Definite-lived intangible asset impairment decreased $23.6 million and amortization expense decreased $6.3 million, both mainly resulting from a prior-year impairment related to the K2 Advisors Holdings, LLC (“K2”) acquisition. Contingent consideration expense decreased $11.4 million primarily due to a decline in certain acquisition-related AUM and revised estimates of K2’s future revenues and profits. The decreases were partially offset by increases of $4.9 million in consolidated SIPs expenses, $3.5 million in both advertising and promotion and corporate travel expenses and $2.7 million in non-executive directors’ compensation.

We are committed to investing in advertising and promotion in response to changing business conditions, and to advance our products where we see continued or potential new growth opportunities. As a result of potential changes in our strategic marketing campaigns, the level of advertising and promotion expenditures may increase more rapidly, or decrease more slowly, than our revenues.

OTHER INCOME (EXPENSES)

Other income (expenses) consisted of the following:

	Three Months Ended June 30,						Percent Change		Nine Months Ended June 30,						Percent Change
(in millions)	2017			2016					2017			2016
Investment and other income, net	$	92.2		$	65.8		40	%	$	222.9		$	113.7		96	%
Interest expense	(12.9		)	(12.3		)	5	%	(38.8		)	(36.5		)	6	%
Other Income, Net	$	79.3		$	53.5		48	%	$	184.1		$	77.2		138	%

Investment and other income, net consists primarily of income from equity method investees, gains (losses) on investments of consolidated SIPs and trading investment securities, interest and dividend income, and foreign currency exchange gains (losses).

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Other income, net increased$25.8 million and $106.9 million for the three and nine months ended June 30, 2017, primarily due to higher market valuations on investments held by consolidated SIPs, income from equity method investees and interest income, partially offset by lower net gains on trading investment securities. Investments held by consolidated SIPs generated net gains of $59.8 million and $52.6 million, as compared to net losses of $0.6 million and $12.7 million in the prior year. Income from equity method investees increased $6.5 million and $68.8 million; the income for the nine-month period was primarily due to higher gains on investments in a global equity fund and a global macro hedge fund SIP. Interest income increased $8.0 million and $26.9 million primarily due to higher levels of interest rates and debt securities. The increases were partially offset by decreases of $34.3 million and $38.3 million in net gains on trading investment securities primarily due to lower gains from SIPs held for investment purposes and corporate debt securities. The increase for the three-month period was also partially offset by $19.2 million of net foreign currency exchange losses, as compared to net gains of $10.4 million in the prior year, primarily from the impact of weakening of the U.S. dollar against the Euro on cash and cash equivalents denominated in U.S. dollars held in Europe. The increase for the nine-month period was also partially offset by a $22.9 million decrease in net realized gains on sale of available-for-sale securities.

Significant portions of the net gains (losses) of consolidated SIPs are offset in noncontrolling interests in our condensed consolidated statements of income.

Our investments in SIPs include initial cash investments made in the course of launching mutual fund and other investment product offerings, as well as investments for other business reasons. The market conditions that impact our AUM similarly affect the investment income earned or losses incurred on our SIPs investments.

The consolidated cash, cash equivalents and investments portfolio by investment objective at June 30, 2017, including assets of consolidated SIPs, was as follows:

(in millions)	Total Portfolio		Percent of Total		Trading Securities Included in Total Portfolio		Percent of Total		Assets of Consolidated SIPs Included in Total Portfolio		Percent of Total
Cash and Cash Equivalents	$	8,786.2	65	%	$	—	0	%	$	221.4	6	%
Investment Securities
Equity
Global/international	425.9		3	%	6.9		2	%	403.1		11	%
United States	5.4		0	%	0.4		0	%	3.1		0	%
Total equity	431.3		3	%	7.3		2	%	406.2		11	%
Multi-Asset/Balanced	295.3		2	%	42.5		11	%	241.3		7	%
Fixed Income
Taxable
Global/international	1,941.1		14	%	285.6		76	%	1,629.9		45	%
United States	1,161.9		9	%	42.4		11	%	1,095.6		31	%
Total fixed income	3,103.0		23	%	328.0		87	%	2,725.5		76	%
Total investment securities	3,829.6		28	%	377.8		100	%	3,373.0		94	%
Other Investments	999.1		7	%	—		0	%	—		0	%
Total Cash and Cash Equivalents and Investments	$	13,614.9	100	%	$	377.8	100	%	$	3,594.4	100	%

Investments of consolidated SIPs are generally assigned a classification in the table above based on the investment objective of the consolidated entity holding the securities. Other investments include $777.1 million of investments in equity method investees that hold securities that are subject to market valuation risks and primarily have a global/international equity investment objective.

TAXES ON INCOME

As a multi-national corporation, we provide many of our services from locations outside the U.S. Some of these jurisdictions have lower tax rates than the U.S. Additionally, in certain countries our income is subject to reduced tax rates due to tax rulings. The mix of pre-tax income subject to these lower rates, when aggregated with income originating in the U.S., produces a lower overall effective income tax rate than existing U.S. federal and state income tax rates.

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Our effective income tax rate was 28.6% and 30.5% for the three and nine months ended June 30, 2017, as compared to 28.9% and 31.1% for the same periods in the prior fiscal year. The rate decreases were primarily due to a higher forecasted mix of earnings in lower tax jurisdictions and higher net income attributable to noncontrolling interests.

The effective income tax rate for future reporting periods will continue to reflect the relative contributions of non-U.S. earnings that are subject to reduced tax rates and that are not currently included in U.S. taxable income. Changes in tax rates in these jurisdictions may affect our effective income tax rate and net income.

LIQUIDITY AND CAPITAL RESOURCES

Cash flows were as follows:

	Nine Months Ended June 30,
(in millions)	2017			2016
Cash Flow Data
Operating cash flows	$	958.3		$	1,165.4
Investing cash flows	64.9			92.0
Financing cash flows	(730.8		)	(1,375.7		)

Net cash provided by operating activities decreased during the nine months ended June 30, 2017 primarily due to a larger net increase in trading securities of consolidated SIPs, partially offset by a net decrease in trading securities, as compared to a net increase in the prior year. Net cash provided by investing activities decreased primarily due to net purchases of investments, as compared to net liquidations in the prior year, and the adoption of new accounting guidance, substantially offset by higher net liquidations of other investments by consolidated SIPs and net consolidations of SIPs, as compared to net deconsolidations in the prior year. Net cash used in financing activities decreased primarily due to net subscriptions in consolidated SIPs by noncontrolling interests, as compared to net redemptions in the prior year, and lower repurchases of common stock, partially offset by higher payments on debt by consolidated SIPs and prior-year proceeds from a loan.

The assets and liabilities of our consolidated SIPs attributable to third-party investors do not impact our liquidity and capital resources. We have no right to the consolidated SIPs’ assets, other than our direct equity investment in them and investment management fees earned from them. The debt holders of the consolidated SIPs have no recourse to our assets beyond the level of our direct investment, therefore we bear no other risks associated with the SIPs’ liabilities. Accordingly, the assets and liabilities of our consolidated SIPs, other than our direct investments in them, are excluded from the amounts and discussion below.

Our liquid assets and debt consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Assets
Cash and cash equivalents	$	8,564.8	$	8,247.1
Receivables	754.4		746.4
Investments	2,066.7		1,896.7
Total Liquid Assets	$	11,385.9	$	10,890.2
Liability
Debt	$	1,374.7	$	1,401.2

Liquidity

Liquid assets consist of cash and cash equivalents, receivables, and certain investments. Cash and cash equivalents primarily consist of debt instruments with original maturities of three months or less at the purchase date, money market funds, time deposits with maturities of three months or less, and deposits with financial institutions. Liquid investments consist of trading and available-for-sale securities, investments in equity method investees consisting of mutual fund SIPs, direct investments in redeemable consolidated SIPs, and time deposits with maturities greater than three months.

Cash and cash equivalents at June 30, 2017 increased from September 30, 2016 primarily due to net cash provided by operating and investing activities, partially offset by net cash used in financing activities. The percentages of cash and cash equivalents held by our U.S. and non-U.S. operations were 27% and 73% at June 30, 2017, and 28% and 72% at September 30, 2016.

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We utilize a significant portion of our liquid assets to satisfy operational and regulatory requirements and fund capital contributions relating to our SIPs. Certain of our subsidiaries are required by our internal policy or regulation to maintain minimum levels of capital which are partially maintained by retaining cash and cash equivalents. As a result, such subsidiaries may be restricted in their ability to transfer cash to their parent companies. Also, as a multi-national corporation, we operate in various locations outside of the U.S. Certain of our non-U.S. subsidiaries are subject to regulatory or contractual repatriation restrictions or requirements. Such restrictions and requirements limit our ability to transfer cash between various international jurisdictions, including repatriation to the U.S. Should we require more capital in the U.S. than is generated domestically, we could elect to reduce the level of discretionary activities, such as share repurchases, or we could elect to repatriate future earnings from non-U.S. jurisdictions or raise capital through debt or equity issuance. Certain of these alternatives could result in higher effective tax rates, increased interest expense or other dilution to our earnings. At June 30, 2017, our U.S. and non-U.S. subsidiaries held $828.4 million and $2,635.2 million of liquid assets to satisfy operational and regulatory requirements and capital contributions to our SIPs, as compared to $874.6 million and $2,220.8 million held at September 30, 2016. Included in these amounts were U.S. and non-U.S. liquid assets that were restricted from transfer to Franklin and other subsidiaries of $4.1 million and $201.8 million at June 30, 2017 and $4.7 million and $345.7 million at September 30, 2016.

Capital Resources

We believe that we can meet our present and reasonably foreseeable operating cash needs and future commitments through existing liquid assets, continuing cash flows from operations, the ability to issue debt or equity securities and borrowing capacity under our uncommitted private placement program.

In prior fiscal years, we issued senior unsecured unsubordinated notes for general corporate purposes, to redeem outstanding notes and to finance an acquisition. At June 30, 2017, $1,343.8 million of the notes were outstanding with an aggregate face value of $1,350.0 million. The notes were issued at fixed interest rates and consist of $300.0 million at 1.375% per annum which mature in September 2017, $350.0 million at 4.625% per annum which mature in 2020, $300.0 million at 2.800% per annum which mature in 2022, and $400.0 million at 2.850% per annum which mature in 2025.

Interest on the notes is payable semi-annually. The notes contain an optional redemption feature that allows us to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price. The indentures governing the notes contain limitations on our ability and the ability of our subsidiaries to pledge voting stock or profit participating equity interests in our subsidiaries to secure other debt without similarly securing the notes equally and ratably. The indentures also include requirements that must be met if we consolidate or merge with, or sell all of our assets to, another entity.

In March 2016, we borrowed 6.3 billion Indian Rupees ($93.4 million) at a fixed interest rate of 9.89% with a one-year term to purchase certain securities from SIPs domiciled in India. Interest on the loan is payable monthly, and the loan may be prepaid without penalty. To secure the loan, we concurrently entered into a standby letter of credit for 6.5 billion Indian Rupees ($96.6 million) collateralized by a $116.0 million time deposit. The loan agreement requires that the borrowing entity, a subsidiary located in India, maintain a specified minimum level of capital. In February 2017, we prepaid 1.5 billion Indian Rupees ($22.5 million) of the loan and the time deposit collateral was reduced to $37.4 million. The loan agreement was amended for the remaining balance of 2.0 billion Indian Rupees ($30.0 million) at a fixed interest rate of 9.15% with a maturity in March 2018. The loan had a carrying value of $30.9 million at June 30, 2017.

We were in compliance with all debt covenants at June 30, 2017.

At June 30, 2017, we had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012.

Our ability to access the capital markets in a timely manner depends on a number of factors, including our credit rating, the condition of the global economy, investors’ willingness to purchase our securities, interest rates, credit spreads and the valuation levels of equity markets. If we are unable to access capital markets in a timely manner, our business could be adversely impacted.

Uses of Capital

We expect that our main uses of cash will be to invest in and grow our business, acquire shares of our common stock, invest in our SIPs, fund property and equipment purchases, pay operating expenses of the business, enhance technology infrastructure and business processes, pay stockholder dividends and repay and service debt.

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We declare dividends on a quarterly basis. We declared regular cash dividends of $0.60 per share ($0.20 per share per quarter) during the nine months ended June 30, 2017, and $0.54 per share ($0.18 per share per quarter) during the nine months ended June 30, 2016. We currently expect to continue paying comparable regular cash dividends on a quarterly basis to holders of our common stock depending upon earnings and other relevant factors.

We maintain a stock repurchase program to manage our equity capital with the objective of maximizing shareholder value. Our stock repurchase program is effected through regular open-market purchases and private transactions in accordance with applicable laws and regulations. During the three and nine months ended June 30, 2017, we repurchased 4.1 million and 15.2 million shares of our common stock at a cost of $174.6 million and $603.1 million. At June 30, 2017, 35.5 million shares remained available for repurchase under the program, which is not subject to an expiration date. During the three and nine months ended June 30, 2016, we repurchased 9.3 million and 29.4 million shares of our common stock at a cost of $326.7 million and $1,068.1 million.

We invested $71.6 million, net of redemptions, in our SIPs during the nine months ended June 30, 2017, and redeemed $332.6 million, net of investments, from our SIPs in the prior-year period.

The funds that we manage have their own resources available for purposes of providing liquidity to meet shareholder redemptions, including securities that can be sold or provided to investors as in-kind redemptions, and lines of credit. While we have no contractual obligation to do so, we may voluntarily elect to provide the funds with direct or indirect financial support based on our business objectives. We did not provide financial or other support to our SIPs during the nine months ended June 30, 2017. During the nine months ended June 30, 2016, we purchased $182.7 million of certain debt securities from six SIPs domiciled in India in order to provide additional liquidity to the SIPs. None of the purchases occurred during the three months ended June 30, 2016.

CONTRACTUAL OBLIGATIONS, COMMITMENTS AND CONTINGENT LIABILITIES

At June 30, 2017, there were no material changes in our contractual obligations, commitments and contingent liabilities as reported in our Form 10-K for fiscal year 2016.

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. These estimates, judgments, and assumptions are affected by our application of accounting policies. Actual results may differ from those estimates under different assumptions. The following are updates to our critical accounting policies disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the fiscal year ended September 30, 2016.

Consolidation

We consolidate our subsidiaries and SIPs in which we have a controlling financial interest. We have a controlling financial interest when we own a majority of the voting interest in a voting interest entity (“VOE”) or are the primary beneficiary of a variable interest entity (“VIE”). A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or they do not have defined rights and obligations normally associated with an equity investment. The assessment of whether an entity is a VIE or VOE involves judgment and analysis on a structure-by-structure basis. When performing the assessment we consider factors such as the entity’s legal organization and capital structure, the rights of the equity investment holders and our contractual involvement with and ownership interest in the entity. Our VIEs are all investment entities and our variable interests consist of our equity ownership interest in and certain investment management fees earned from these entities.

We adopted new accounting guidance on October 1, 2016 that modifies the consolidation framework for certain investment entities and all limited partnerships. As a result of the modifications, certain SIPs changed from VOEs to VIEs and became subject to a lower threshold for consolidation. Additionally, there is now a single model to determine whether we are the primary beneficiary of a VIE. We are the primary beneficiary if we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of AUM, investment management fee rates, the life of the investment product and the discount rate.

As of June 30, 2017, we were the primary beneficiary of 39 SIP VIEs.

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Fair Value Measurements

We record a substantial amount of our investments at fair value or amounts that approximate fair value on a recurring basis. We use a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable.

As of June 30, 2017, Level 3 assets represented 13% of total assets measured at fair value, substantially all of which related to consolidated SIPs’ investments in equity and debt securities and our direct investments in debt securities that are not traded in active markets. There was one Level 3 liability, a contingent consideration liability which represented 87% of total liabilities measured at fair value. There were insignificant transfers out of Level 3 and no transfers into Level 3 during the nine months ended June 30, 2017.

Goodwill and Other Intangible Assets

Subsequent to our annual impairment tests as of August 1, 2016, there were no impairments to goodwill or indefinite-lived intangible assets. We monitored market conditions and their potential impact on the assumptions used in the annual calculations of fair value to determine whether circumstances have changed that would more likely than not reduce the fair value of our reporting unit below its carrying value, or indicate that our indefinite-lived intangible assets might be impaired. We considered, among other things, changes in our AUM and weighted-average cost of capital by assessing whether these changes would impact the reasonableness of the assumptions used as of August 1, 2016.

We test definite-lived intangible assets for impairment quarterly and recognized impairment of $0.8 million and $4.6 million during the three and nine months ended June 30, 2017. The undiscounted future cash flow projection for the most significant asset, which was $10.3 million, or 84% of total definite-lived intangible assets, exceeded its carrying value by 15% as of June 30, 2017. We estimated the future undiscounted cash flows for this asset using AUM growth rates ranging from (5.0%) to (4.3%).

While we believe that the assumptions used to estimate fair value in our impairment tests are reasonable and appropriate, future changes in the assumptions could result in recognition of impairment.

Revenues

Investment management fees, other than performance-based fees, and distribution fees are determined based on a percentage of AUM, primarily on a monthly basis using average daily AUM. Performance-based investment management fees are based on performance targets established in the related investment management contracts. AUM is generally based on the fair value of the underlying securities held by SIPs and is calculated using fair value methods derived primarily from unadjusted quoted market prices, unadjusted independent third-party broker or dealer price quotes in active markets, or market prices or price quotes adjusted for observable price movements after the close of the primary market. The fair values of the underlying securities for which market prices are not readily available are internally valued using various methodologies which incorporate unobservable inputs as appropriate for each security type. As of June 30, 2017, our total AUM by fair value hierarchy level was 53% Level 1, 46% Level 2 and 1% Level 3.

Income Taxes

As a multinational corporation, we operate in various locations outside the U.S. and generate earnings from our non-U.S. subsidiaries. Effective October 1, 2016, we indefinitely reinvest the undistributed earnings of all our non-U.S. subsidiaries, except for income previously taxed in the U.S. or subject to regulatory or legal repatriation restrictions or requirements. Prior to October 1, 2016 we did not indefinitely reinvest the undistributed earnings of our Canadian and U.K. subsidiaries. Further changes to our policy of reinvestment or repatriation of non-U.S. earnings may have a significant effect on our financial condition and results of operations.

NEW ACCOUNTING GUIDANCE

See Note 2 – New Accounting Guidance in the notes to condensed consolidated financial statements in Item 1 of Part I of this Form 10-Q.

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RISK FACTORS

Volatility and disruption of the capital and credit markets, and adverse changes in the global economy, may significantly affect our results of operations and may put pressure on our financial results. The capital and credit markets continue to experience volatility and disruption worldwide. Declines in global financial market conditions have in the past resulted in significant decreases in our assets under management (“AUM”), revenues and income, and future declines may further negatively impact our financial results. Such declines have had and may in the future have an adverse impact on our results of operations. We may need to modify our business, strategies or operations and we may be subject to additional constraints or costs in order to compete in a changing global economy and business environment.

The amount and mix of our AUM are subject to significant fluctuations. Fluctuations in the amount and mix of our AUM may be attributable in part to market conditions outside of our control that have had, and in the future could have, a negative impact on our revenues and income. We derive substantially all of our operating revenues and net income from providing investment management and related services to investors globally through products that include investment funds and institutional, high net-worth and separately-managed accounts (collectively, our “sponsored investment products” or “SIPs”). The level of our revenues depends largely on the level and mix of AUM. Our investment management fee revenues are primarily based on a percentage of the value of AUM and vary with the nature of the SIPs managed. Any decrease in the value or amount of our AUM because of market volatility or other factors, such as a decline in the price of stocks, in particular market segments or in the securities market generally, negatively impacts our revenues and income. We are subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets. Individual financial, equity, debt and commodity markets may be adversely affected by financial, economic, political, electoral, diplomatic or other instabilities that are particular to the country or region in which a market is located, including without limitation local acts of terrorism, economic crises, political protests, insurrection or other business, social or political crises. Global economic conditions, exacerbated by war, terrorism, natural disasters or financial crises, changes in the equity, debt or commodity marketplaces, changes in currency exchange rates, interest rates, inflation rates, the yield curve, defaults by trading counterparties, bond defaults, revaluation and bond market liquidity risks, geopolitical risks, the imposition of economic sanctions and other factors that are difficult to predict, affect the mix, market values and levels of our AUM. For example, changes in financial market prices, currency exchange rates and/or interest rates have in the past and could in the future cause the value of our AUM to decline, which would result in lower investment management fee revenues. Changing market conditions could also cause an impairment to the value of our goodwill and other intangible assets. The funds we manage may be subject to liquidity risks or an unanticipated large number of redemptions as a result of the events or conditions described above, causing the funds to sell securities they hold, possibly at a loss, or draw on any available lines of credit, to obtain cash to maintain sufficient liquidity or settle these redemptions, or settle in-kind with securities held in the applicable fund. We have in the past, and may in the future, at our discretion, provide financial support to funds we manage to enable them to maintain sufficient liquidity in any such event. Changes in investor preferences regarding our more popular investment products have in the past and could in the future cause sizable redemptions and lower the value of our AUM, which would result in lower revenue and operating results. Moreover, changing market conditions may cause a shift in our asset mix between international and U.S. assets, potentially resulting in a decline in our revenues and income depending upon the nature of our AUM and the level of management fees we earn based on our AUM. We generally derive higher investment management and distribution fees from our international products than from our U.S. products, and higher sales fees from our U.S. products than from our international products. Additionally, changing market conditions may cause a shift in our asset mix towards fixed income products and away from equity and multi-asset/balanced products, and a related decline in our revenues and income, as we generally derive higher fee revenues and income from equity and certain multi-asset/balanced products than from fixed income products we manage. Further, increases in interest rates, in particular if rapid, as well as any uncertainty in the future direction of interest rates, may have a negative impact on our fixed income products. Although the shorter duration of the bond investments in many of these products may help mitigate the interest rate risk, rising interest rates or interest rate uncertainty typically decrease the total return on many bond investments due to lower market valuations of existing bonds. Any decrease in the level of our AUM resulting from market declines, interest rate volatility or uncertainty, increased redemptions or other factors could negatively impact our revenues and income.

We are subject to extensive, complex, overlapping and frequently changing rules, regulations, policies and legal interpretations. There is uncertainty associated with the regulatory environments in which we operate. As described below, our business is subject to extensive and complex, overlapping and/or conflicting, and frequently changing and increasing rules, regulations, policies and legal interpretations in the countries in which we operate. Our regulatory and compliance obligations impose significant operational and cost burdens on us and cover a broad range of requirements related to securities and other financial instruments, investment and advisory matters, accounting, tax, compensation, ethics, data protection, privacy, sanctions programs, and escheatment laws and regulations.

As a U.S. reporting company, we are subject to U.S. federal securities laws, state laws regarding securities fraud, other federal and state laws and rules and regulations of certain regulatory and self-regulatory organizations, including those rules and regulations promulgated by, among others, the U.S. Securities and Exchange Commission (“SEC”) and the New York Stock Exchange. As a global investment management organization, certain of our subsidiaries are also subject to the rules and regulations

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promulgated by the SEC, the Financial Industry Regulatory Authority, the U.S. Commodity Futures Trading Commission (“CFTC”), the National Futures Association, the U.S. Department of Justice (“DOJ”), the U.S. Department of Labor (“DOL”) and the U.S. Department of Treasury. Given our global operations, we are also subject to securities laws and other laws of various non-U.S. jurisdictions and to regulation by non-U.S. regulators including, among others, the United Kingdom (“U.K.”) Financial Conduct Authority, the Luxembourg Commission de Surveillance du Secteur Financier, Canadian provincial and territorial securities regulatory authorities, the Monetary Authority of Singapore, the Australian Securities and Investments Commission, the Hong Kong Securities and Futures Commission, the Securities and Exchange Board of India, the Japanese Financial Services Agency and various international stock exchanges. In some cases, our non-U.S. operations may also be subject to regulation by U.S. regulators, such as the SEC, the CFTC and the DOJ (for example, with respect to the Foreign Corrupt Practices Act of 1977). We are also subject not only to the sanctions programs administered by the U.S. Department of Treasury's Office of Foreign Assets Control, but also to sanctions programs adopted and administered by non-U.S. jurisdictions, including the European Union (“EU”), where our investment management services and products are offered. We are also subject to the laws and regulations of states and other jurisdictions regarding the reporting and escheatment of unclaimed or abandoned property. Further, certain federal and state anti-takeover or business combination laws may impose various disclosure and procedural requirements on the ability of a person to acquire control of us, which may discourage potential merger and acquisition proposals and may delay, deter or prevent a change of control, including through transactions that some stockholders may consider desirable.

Certain of our subsidiaries are registered with the SEC under the Investment Advisers Act of 1940, the CFTC and/or licensed by various non-U.S. regulators. In addition, many of our funds are registered with the SEC under the Investment Company Act of 1940 (the “Investment Company Act”) or authorized by various European and other non-U.S. regulators pursuant to the EU’s Undertakings for Collective Investment in Transferable Securities (“UCITS”) Directive or under other non-U.S. laws in Europe, the Middle East and Africa, Asia-Pacific, Canada and Latin America. These registrations, licenses and authorizations impose numerous obligations, as well as detailed operational requirements, on such subsidiaries and such funds. Our subsidiaries must also comply with complex tax regimes.

Financial reporting requirements, and the processes, controls and procedures that have been put in place to address them, are often comprehensive and complex. We may be adversely affected as a result of new or revised legislation or regulations or by changes in the interpretation of existing laws and regulations. Political and electoral changes, developments and conflicts may also introduce additional uncertainty. While management has focused attention and resources on our compliance policies, procedures and practices, non-compliance with applicable laws, rules, regulations, conflicts of interest requirements or fiduciary principles, or our inability to keep up with, or adapt to, an ever changing, complex regulatory environment, could result in civil liability, criminal liability and/or sanctions against us, including fines and censures, injunctive relief, suspension or expulsion from a particular jurisdiction or market or the revocation of licenses or charters, any of which could adversely affect our reputation, prospects, revenues and income. Moreover, any potential accounting or reporting error, whether financial or otherwise, if material, could damage our reputation and adversely affect our business.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) authorized the establishment of the Financial Stability Oversight Council (“FSOC”), the mandate of which is to identify and respond to threats to U.S. financial stability. Similarly, the U.S. and other members of the G-20 group of nations have empowered the Financial Stability Board (“FSB”) to identify and respond, in a coordinated manner, to threats to global financial stability. The FSOC may designate certain non-bank financial companies as systemically important financial institutions (“SIFIs”), which are subject to supervision and regulation by the Board of Governors of the Federal Reserve System. The FSB may designate certain non-bank financial companies as global systemically important financial institutions (“G-SIFIs”); the additional regulatory requirements triggered by any such designation are not yet established. The FSOC and the FSB, as well as other global regulators including the European Commission, are considering what threats to U.S., EU and global financial stability, if any, arise from asset management companies and/or the funds that they manage, and whether such threats can be mitigated by treating such entities as SIFIs or G-SIFIs and/or subjecting them to additional regulation. To the extent that we or any of our funds are designated as a SIFI or G-SIFI, such regulation, which could include requirements related to risk-based capital, leverage, liquidity, credit exposure, stress testing, resolution plans, early remediation, and certain risk management requirements, could impact our business. The Dodd-Frank Act, as well as other legislative and regulatory changes, impose other restrictions and limitations on us, resulting in increased scrutiny and oversight of our financial services and products. We continue to analyze the impact of the Dodd-Frank Act as implementing rules are adopted and become effective. Under the Dodd-Frank Act, which imposes a number of new regulations governing derivative transactions, certain categories of swaps are currently required, and further categories of swaps are likely to be required, to be submitted for clearing by a regulated clearing organization and reported on a swap execution facility, and the posting of collateral will be required for uncleared swaps. The EU and other countries are in the process of implementing similar requirements, and there is some risk that full mutual recognition may not be achieved between the various regimes, and duplication of regulation and transaction costs may result. These and other requirements are likely to impact how we manage our investment strategies because of, among other things, an increase in the costs and expenses of utilizing swaps and other derivatives. In addition, the SEC has adopted rules that have changed the structure and operation for certain types of money market funds, and that will require

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certain registered funds to adopt liquidity management programs. (Full compliance with the latter is required by December 1, 2018.) The SEC has also proposed a rule that would impose restrictions on the use of derivatives by registered funds. We expect that the complex regulatory requirements and developments applicable to us will cause us to incur additional administrative and compliance costs.

The laws and regulations applicable to our business generally involve restrictions and requirements in connection with a variety of technical, specialized, and expanding matters and concerns. For example, compliance with the Bank Secrecy Act of 1970, anti-money laundering and Know Your Customer requirements, and economic, trade and other sanctions, both domestically and internationally, has taken on heightened importance as a result of efforts to, among other things, limit terrorism and actions that undermine the stability, sovereignty and territorial integrity of countries. At the same time, there has been increased regulation with respect to the protection of customer privacy and the need to secure sensitive customer information. As we continue to address these requirements or focus on meeting new or expanded ones, we may expend a substantial amount of time and resources. Any inability to meet these requirements within the required timeframes may subject us to sanctions or other restrictions by governments and/or regulators that could adversely impact our broader business objectives.

Global regulatory and legislative actions and reforms have made the regulatory environment in which we operate more costly and future actions and reforms could adversely impact our financial condition and results of operations. The U.S. federal securities laws have been augmented substantially and made significantly more complex by, among other measures, the Dodd-Frank Act, the Sarbanes-Oxley Act of 2002 and the USA Patriot Act of 2001. Similarly, the securities and related laws outside the U.S. have been augmented substantially and made more complex by measures such as the EU’s Alternative Investment Fund Managers Directive (“AIFMD”) and Markets in Financial Instruments Directive II (“MiFID II”). Following the June 2016 U.K. referendum where a majority voted to exit the EU (“Brexit”), it is still unclear when the U.K. will leave the EU and on what terms. Ongoing changes in the EU’s regulatory framework applicable to our business, including changes related to Brexit and any other changes in the composition of the EU’s member states, may add further complexity to our global risks and operations. Moreover, the adoption of new laws, regulations or standards and changes in the interpretation or enforcement of existing laws, regulations or standards have directly affected, and will continue to affect, our business. With new laws and changes in interpretation of existing requirements, the associated time we must dedicate to and related costs we must incur in meeting the regulatory complexities of our business have increased. In particular, certain provisions of the Dodd-Frank Act and MiFID II still require the adoption of implementing rules. We may be required to invest significant additional management time and resources to address the new regulations being adopted pursuant to the Dodd-Frank Act, MiFID II and other laws. For example, MiFID II requires the “unbundling” of research and execution charges for trading. The final rules in this area, and the industry’s response to them, are still evolving and could lead to increased research costs. Outlays associated with meeting regulatory complexities have also increased as we expand our business into new jurisdictions.

Effective May 2018, the EU’s General Data Protection Regulation (“GDPR”) will strengthen and unify data protection rules for individuals within the EU. GDPR also addresses export of personal data outside the EU. The primary objectives of GDPR are to give citizens control of their personal data and to simplify the regulatory environment for international business by unifying data protection regulation within the EU. Compliance with the stringent rules under GDPR will require an extensive review of all of our global data processing systems. A failure to comply with GDPR could result in fines up to 20 million Euros or 4% of annual global revenues, whichever is higher.

Further, pursuant to ongoing efforts to encourage global tax compliance, the Organization for Economic Co-operation and Development has adopted a global common reporting standard for the automatic exchange of financial information among participating countries (“CRS”), aimed at ensuring that persons with financial assets located outside of their tax residence country pay required taxes. In many cases, intergovernmental agreements between the participating countries will govern implementation of the new rules. CRS will be implemented over a multi-year period and we will continue to monitor the implementing regulations and corresponding intergovernmental agreements to determine our requirements. CRS may subject us to additional reporting, compliance and administrative costs and burdens in jurisdictions where we operate as a qualifying financial institution.

Compliance activities to address these and other new legal requirements have required, and will continue to require, us to expend additional time and resources, and, consequently, we are incurring increased costs of doing business, which potentially negatively impacts our profitability and future financial results. Finally, any further regulatory and legislative actions and reforms affecting the investment management industry, including compliance initiatives, may negatively impact revenues by increasing our costs of accessing or operating in the financial markets or by making certain investment offerings less favorable to our clients.

Failure to comply with the laws, rules or regulations in any of the jurisdictions in which we operate could result in substantial harm to our reputation and results of operations. As with all investment management companies, our activities are highly regulated in almost all countries in which we conduct business. The regulatory environments of the jurisdictions where we conduct our business or where our SIPs are organized or sold are complex, uncertain and subject to change. Local regulatory environments may vary widely and place additional demands on our sales, investment, legal and compliance personnel. Failure to comply with

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the applicable laws, rules, regulations, codes, directives, notices or guidelines in any of our jurisdictions could result in a wide range of penalties and disciplinary actions, including fines, censures and the suspension or expulsion from a particular jurisdiction or market or the revocation of licenses, any of which could adversely affect our reputation and operations. In recent years, the regulatory environments in which we operate have seen significant increased and evolving regulations, which have imposed and may continue to impose additional compliance and operational requirements and costs on us in the applicable jurisdictions. Regulators could also change their policies or laws in a manner that might restrict or otherwise impede our ability to offer our investment products and services in their respective markets, or we may be unable to keep up with, or adapt to, the ever changing, complex regulatory requirements in such jurisdictions or markets, which could further negatively impact our business.

Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our financial condition, results of operations and liquidity. We are subject to income taxes as well as non-income based taxes, and are subject to ongoing tax audits, in various jurisdictions in which we operate. Tax authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely outcomes of these audits in order to determine the appropriateness of our tax provision. However, there can be no assurance that we will accurately predict the outcomes of these audits, and the actual outcomes could have a material impact on our net income or financial condition. Changes in tax laws or tax rulings could materially impact our effective tax rate. For example, proposals for fundamental U.S. corporate tax reform, if enacted, could change the amount of taxes we are required to pay and could have a significant impact on our future results of operations, profitability and financial condition.

Any significant limitation, failure or security breach of our information and cyber security infrastructure, software applications, technology or other systems that are critical to our operations could disrupt our business and harm our operations and reputation. We are highly dependent upon the use of various proprietary and third-party information and security technology, software applications and other technology systems to operate our business. We are also dependent on the continuity and effectiveness of our information and cyber security infrastructure, policies, procedures and capabilities to protect our computer and telecommunications systems and the data that reside on or are transmitted through them and contracted third-party systems. We use technology to, among other things, support our business continuity and operations, store and maintain data, obtain securities pricing information, process client transactions, and provide reports and other customer services to the clients of the products we manage. Any disruptions, inaccuracies, delays, systems failures, data or privacy breaches, or other security breaches (including any cyber security breaches) in these and other processes could subject us to client dissatisfaction and losses and damage our reputation. Although we take protective measures, including measures to effectively secure information through system security technology, the technology systems we use may still be vulnerable to unauthorized access, computer viruses or other events that have a security impact, such as an external hacker attack by one or more cyber criminals (including phishing attacks attempting to obtain confidential information) or an authorized employee or vendor inadvertently causing us to release confidential information, which could materially harm our operations and reputation. Potential system disruptions, failures or breaches of the technology systems we use, and the costs necessary to address them, could result in: material financial loss or costs; the unauthorized disclosure or modification of sensitive or confidential information; loss of valuable information; breach of client contracts; liability for stolen assets, information or identity; remediation costs to repair damage caused by the failure or breach; additional security costs to mitigate against future incidents; reputational harm; regulatory actions; and/or legal claims, liability and litigation costs resulting from the incident. Moreover, loss or unauthorized disclosure or transfer of confidential customer identification information could harm our reputation and subject us to liability under laws that protect confidential personal data, resulting in increased costs or a decline in our revenues or common stock price. Further, although we take precautions to password protect and encrypt our laptops and sensitive information on our other mobile electronic devices, if such devices are stolen, misplaced or left unattended, they may become vulnerable to hacking or other unauthorized use, creating a possible security risk and resulting in potentially costly actions by us.

Most of the software applications that we use in our business are licensed from, and supported, upgraded and maintained by, third-party vendors. Our third-party applications include enterprise cloud storage and cloud computing application services provided and maintained by third-party vendors. A suspension or termination of certain of these licenses or the related support, upgrades and maintenance could cause temporary system delays or interruption that could adversely impact our business. In addition, the failure to properly manage and operate the data centers we use could have an adverse impact on our business. Although we have in place certain disaster recovery plans, we may experience system delays and interruptions as a result of natural disasters, power failures, acts of war, and third-party failures. Technology is subject to rapid advancements and changes and our competitors may from time to time implement more advanced technology platforms for their products, which could adversely affect our business.

Our business operations are complex and a failure to properly perform operational tasks or the misrepresentation of our products and services, or the termination of investment management agreements representing a significant portion of our AUM, could have an adverse effect on our revenues and income. Through our subsidiaries, we provide investment management and related services to our SIPs. In addition to investment management, our services include fund administration, sales, distribution, marketing, shareholder servicing, and other fiduciary services. In order to be competitive and comply with our agreements, we

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must properly perform our fund and portfolio administration and related responsibilities, including portfolio recordkeeping and accounting, security pricing, corporate actions, investment restrictions compliance, daily net asset value computations, account reconciliations, and required distributions to fund shareholders. In addition, the intentional or unintentional misrepresentation of our products and services in advertising materials, public relations information, social media or other external communications could adversely affect our reputation and business prospects. Our investment management fees, which represent the majority of our revenues, are dependent on fees earned under investment management agreements that we have with our SIPs. Our revenues could be adversely affected if such agreements representing a significant portion of our AUM are terminated or significantly altered. Further, certain of our subsidiaries may act as general partner for various investment partnerships, which may subject them to liability for the partnerships’ liabilities. If we fail to properly perform and monitor our operations, our business could suffer and our revenues and income could be adversely affected.

We face risks, and corresponding potential costs and expenses, associated with conducting operations and growing our business in numerous countries. We sell our SIPs and offer investment management and related services in many different regulatory jurisdictions around the world, and intend to continue to expand our operations internationally. As we do so, we will continue to face challenges to the adequacy of our resources, procedures and controls to consistently and effectively operate our business. In order to remain competitive, we must be proactive and prepared to implement necessary resources when growth opportunities present themselves, whether as a result of a business acquisition or rapidly increasing business activities in particular markets or regions. Local regulatory environments may vary widely in terms of scope, adequacy and sophistication. Similarly, local distributors, and their policies and practices as well as financial viability, may also vary widely, or be inconsistent or less developed or mature than other more internationally focused distributors. Notwithstanding potential long-term cost savings by increasing certain operations, such as transfer agent and other back-office operations, in countries or regions of the world with lower operating costs, growth of our international operations may involve near-term increases in expenses as well as additional capital costs, such as information systems and technology costs and costs related to compliance with particular regulatory or other local requirements or needs. Local requirements or needs may also place additional demands on sales and compliance personnel and resources, such as meeting local language requirements, while also integrating personnel into an organization with a single operating language. Finding, hiring and retaining additional, well-qualified personnel and crafting and adopting policies, procedures and controls to address local or regional requirements remain a challenge as we expand our operations internationally. Moreover, regulators in non-U.S. jurisdictions could also change their policies or laws in a manner that might restrict or otherwise impede our ability to distribute or authorize investment products or maintain their authorizations in their respective markets. Any of these local requirements, activities, or needs could increase the costs and expenses we incur in a specific jurisdiction without any corresponding increase in revenues and income from operating in the jurisdiction. Certain laws and regulations both inside and outside the U.S. have included extraterritorial application. This may lead to duplicative or conflicting legal or regulatory burdens and additional costs and risks. In addition, from time to time we enter into international joint ventures or take minority stakes in companies in which we typically do not have control. These investments may involve risks, including the risk that the controlling stakeholder or our joint venture partner may have business interests, strategies or goals that are inconsistent with ours, and the risk that business decisions or other actions or omissions of the controlling stakeholder, our joint venture partner or the entity itself may result in liability for us or harm to our reputation or adversely affect the value of our investment in the entity.

We depend on key personnel and our financial performance could be negatively affected by the loss of their services. The success of our business will continue to depend upon our key personnel, including our portfolio and fund managers, investment analysts, investment advisers, sales and management personnel and other professionals as well as our executive officers and business unit heads. Competition for qualified, motivated, and highly skilled executives, professionals and other key personnel in the investment management industry remains significant. Our success depends to a substantial degree upon our ability to find, attract, retain and motivate qualified individuals, including through competitive compensation packages, and upon the continued contributions of these people. Laws and regulations, including those contained in or relating to the EU’s Capital Requirements Directive, those adopted under AIFMD and UCITS and those required to be adopted under the Dodd-Frank Act, could impose restrictions on compensation paid by financial institutions, which could restrict our ability to compete effectively for qualified professionals. As our business grows, we are likely to need to increase correspondingly the overall number of individuals that we employ. Moreover, in order to retain certain key personnel, we may be required to increase compensation to such individuals, resulting in additional expense without a corresponding increase in potential revenues. There is no assurance that we will be successful in finding, attracting and retaining qualified individuals, and the departure of key investment personnel, in particular, if not replaced, could cause us to lose clients, which could have a material adverse effect on our financial condition, results of operations and business prospects.

Strong competition from numerous and sometimes larger companies with competing offerings and products could limit or reduce sales of our products, potentially resulting in a decline in our market share, revenues and income. We compete with numerous investment management companies, securities brokerage and investment banking firms, insurance companies, banks and other financial institutions. Our investment products also compete with products offered by these competitors, as well as with real estate investment trusts, hedge funds and other products. The periodic establishment of new investment management companies

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and other competitors increases the competition that we face. At the same time, consolidation in the financial services industry has created stronger competitors with greater financial resources and broader distribution channels than our own. Competition is based on various factors, including, among others, business reputation, investment performance, product mix and offerings, service quality and innovation, distribution relationships, and fees charged. Further, although we may offer certain types of strategic beta and actively managed exchange-traded funds, to the extent that there is a trend among existing or potential clients in favor of lower fee passive products such as index and other types of exchange-traded funds, it may favor our competitors who provide those products over active managers like us. Additionally, competing securities broker-dealers, whom we rely upon to distribute and sell certain of our funds and other investment products, may also sell their own proprietary funds and investment products, which could limit the distribution of our products. To the extent that existing or potential clients, including securities broker-dealers, decide to invest in or distribute the products of our competitors, the sales of our products as well as our market share, revenues and income could decline. Our ability to attract and retain AUM is also dependent on the relative investment performance of our SIPs, offering a mix of SIPs that meets investor demand and our ability to maintain our investment management fees and pricing structure at competitive levels.

Changes in the third-party distribution and sales channels on which we depend could reduce our income and hinder our growth. We derive nearly all of our fund sales through third-party broker-dealers, banks, investment advisers and other financial intermediaries. Increasing competition for these distribution channels and regulatory initiatives have caused our distribution costs to rise and could cause further increases in the future or could otherwise negatively impact the distribution of our products. Pursuant to the Dodd-Frank Act, the SEC may establish different standards for broker-dealers in their interaction with retail customers, which could have an impact on sales and/or distribution costs. In addition, the SEC has proposed changes to Rule 12b-1 promulgated under the Investment Company Act which, if adopted, could limit our ability to recover expenses relating to the distribution of our U.S.-registered funds. Higher distribution costs lower our income; consolidations in the broker-dealer industry could also adversely impact our income. Moreover, if several of the major financial advisers who distribute our products were to cease operations or limit or otherwise end the distribution of our products, it could have a significant adverse impact on our income. In April 2016, the DOL issued anew fiduciary rule that will subject financial professionals who provide investment advice to certain U.S. retirement clients to a new fiduciary duty intended to address conflicts of interests. We believe that the rule could significantly impact the ability of financial professionals to provide investment advice and recommendations for retirement accounts about funds for which they receive a fee from the fund or its affiliates. This rule may impact the compensation paid to the financial intermediaries who sell our funds to their retirement clients and may negatively impact our business. Certain aspects of the rule became applicable on June 9, 2017, while other aspects of the rule will not become applicable until January 1, 2018. In addition, the U.K., the Netherlands, Sweden and the EU in MiFID II have adopted regimes which ban, or may limit, the payment of commissions and other inducements to intermediaries in relation to certain sales to retail customers in those jurisdictions, and similar regimes are under consideration in several other jurisdictions. Depending on their exact terms, such regimes may result in existing flows of business moving to less profitable channels or even to competitors providing substitutable products outside the regime. There is no assurance we will continue to have access to the third-party broker-dealers, banks, investment advisers and other financial intermediaries that currently distribute our products, or continue to have the opportunity to offer all or some of our existing products through them. A failure to maintain strong business relationships with such distributors may also impair our distribution and sales operations. Because we use broker-dealers, banks, investment advisers and other financial intermediaries to sell our products, we do not control the ultimate investment recommendations given to clients. Any inability to access and successfully sell our products to clients through third-party distribution channels could have a negative effect on our level of AUM, income and overall business and financial condition.

Our increasing focus on international markets as a source of investments and sales of investment products subjects us to increased exchange rate and market-specific political, economic or other risks that may adversely impact our revenues and income generated overseas. While we maintain a significant portion of our operations in the U.S., we also provide services and earn revenues in Europe, the Middle East and Africa, Asia-Pacific, Canada, The Bahamas and Latin America. As a result, we are subject to foreign currency exchange risk through our non-U.S. operations. Fluctuations in the exchange rates to the U.S. dollar have affected and may in the future affect our financial results from one period to the next. While we have taken steps to reduce our exposure to foreign exchange risk, for example, by denominating a significant amount of our transactions in U.S. dollars, the situation may change in the future as our business continues to grow outside the U.S. Appreciation of the U.S. dollar has and could continue to moderate revenues from managing investment products internationally, or could affect relative investment performance of certain of our SIPs invested in non-U.S. securities. In addition, we have risk associated with the foreign exchange revaluation of U.S. dollar balances held by certain non-U.S. subsidiaries for which the local currency is the functional currency. Separately, management fees that we earn tend to be higher in connection with non-U.S. AUM than with U.S. AUM. Consequently, downturns in international markets have in the past and could in the future have a significant effect on our revenues and income. Moreover, our emerging market portfolios and revenues derived from managing these portfolios are subject to significant risks of loss from financial, economic, political and diplomatic developments, currency fluctuations, social instability, changes in governmental policies, expropriation, nationalization, asset confiscation and changes in legislation related to non-U.S. ownership. International trading markets, particularly in some emerging market countries, are often smaller, less liquid, less regulated and significantly

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more volatile than those in the U.S. As our business continues to grow in non-U.S. markets, any ongoing and future business, economic, political or social unrest affecting these markets, in addition to any direct consequences such unrest may have on our personnel and facilities located in the affected area, may also have a more lasting impact on the long-term investment climate in these and other areas and, as a result, our AUM and the corresponding revenues and income that we generate from them may be negatively affected.

Harm to our reputation or poor investment performance of our products could reduce the level of our AUM or affect our sales, and negatively impact our revenues and income. Our reputation is critical to the success of our business. We believe that our brand names have been, and continue to be, well received both in our industry and with our clients, reflecting the fact that our brands, like our business, are based in part on trust and confidence. If our reputation is harmed, existing clients may reduce amounts held in, or withdraw entirely from, our SIPs or our SIPs may terminate their management agreements with us, which could reduce the amount of our AUM and cause us to suffer a corresponding loss in our revenues and income. Our investment performance, along with achieving and maintaining superior distribution and client service, is also critical to the success of our business. Strong investment performance often stimulates sales of our investment products. Poor investment performance as compared to third-party benchmarks or competitive products has in the past and could in the future lead to a decrease in sales of investment products we manage and stimulate redemptions from existing products, generally lowering the overall level of AUM and reducing the management fees we earn. There is no assurance that past or present investment performance in the investment products we manage will be indicative of future performance. Any poor investment performance may negatively impact our revenues and income. Reputational harm or poor investment performance may cause us to lose current clients and we may be unable to continue to attract new clients or develop new business. If we fail to address, or appear to fail to address, successfully and promptly the underlying causes of any reputational harm or poor investment performance, we may be unsuccessful in repairing any existing harm to our reputation or performance and our future business prospects would likely be affected.

Our future results are dependent upon maintaining an appropriate level of expenses, which is subject to fluctuation. The level of our expenses is subject to fluctuation and may increase for the following or other reasons: changes in the level and scope of our operating expenses in response to market conditions; variations in the level of total compensation expense due to, among other things, bonuses, merit increases and severance costs, changes in our employee count and mix, and competitive factors; and/or changes in expenses and capital costs, including costs incurred to maintain and enhance our administrative and operating services infrastructure or to cover uninsured losses, and an increase in insurance expenses including through the assumption of higher deductibles and/or co-insurance liability.

Our ability to successfully manage and grow our business can be impeded by systems and other technological limitations. Our continued success in effectively managing and growing our business depends on our ability to integrate the varied accounting, financial, information, and operational systems on a global basis. Moreover, adapting or developing the existing technology systems we use to meet our internal needs, as well as client needs, industry demands and new regulatory requirements, is also critical for our business. The introduction of new technologies presents new challenges to us. We have an ongoing need to continually upgrade and improve our various technology systems, including our data processing, financial, accounting, shareholder servicing and trading systems. Further, we also must be proactive and prepared to implement technology systems when growth opportunities present themselves, whether as a result of a business acquisition or rapidly increasing business activities in particular markets or regions. These needs could present operational issues or require, from time to time, significant capital spending. It also may require us to reevaluate the current value and/or expected useful lives of the technology systems we use, which could negatively impact our results of operations.

Our inability to successfully recover should we experience a disaster or other business continuity problem could cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability. Should we experience a local or regional disaster or other business continuity problem, such as an earthquake, tsunami, terrorist attack, pandemic or other natural or man-made disaster, our continued success will depend, in part, on the safety and availability of our personnel, our office facilities and infrastructure, and the proper functioning of our technology, computer, telecommunication and other systems and operations that are critical to our business. While our operational size, the diversity of locations from which we operate, and our redundant back-up systems provide us with an advantage should we experience a local or regional disaster or other business continuity event, we could still experience operational challenges, in particular depending upon how a local or regional event may affect our human capital across our operations or with regard to particular aspects of our operations, such as key executive officers or personnel in our technology group. Moreover, as we grow our operations in new geographic regions, the potential for particular types of natural or man-made disasters; political, economic or infrastructure instabilities; information, technology or security limitations or breaches; or other country- or region-specific business continuity risks increases. Past disaster recovery efforts have demonstrated that even seemingly localized events may require broader disaster recovery efforts throughout our operations and, consequently, we regularly assess and take steps to improve upon our existing business continuity plans and key management succession. However, a disaster on a significant scale or affecting certain of our key operating areas within or across regions, or our inability to successfully recover should we experience a disaster or other business continuity problem, could materially interrupt

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our business operations and cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability.

Regulatory and governmental examinations and/or investigations, litigation and the legal risks associated with our business, could adversely impact our AUM, increase costs and negatively impact our profitability and/or our future financial results. From time to time, we may receive requests for documents or other information from governmental authorities or regulatory bodies. We may also become the subject of governmental or regulatory investigations and/or examinations, or governmental or regulatory investigations and/or examinations that have been inactive could become active. In addition, we may be named as a party in litigation. We may be obligated, and under our certificate of incorporation, by-laws and standard form of director indemnification agreement we are obligated under certain conditions, or we may choose, to indemnify directors, officers or employees against liabilities and expenses they may incur in connection with such matters to the extent permitted under applicable law. Even if claims made against us are without merit, litigation typically is an expensive process. Risks associated with legal liability often are difficult to assess or quantify and their existence and magnitude can remain unknown for significant periods of time. Eventual exposures from and expenses incurred relating to any litigation, investigations, examinations and settlements could adversely impact our AUM, increase costs and/or negatively impact our profitability and financial results. Judgments, findings or allegations of wrongdoing by regulatory or governmental authorities, or in litigation against us or settlements with respect thereto, could affect our reputation, increase our costs of doing business and/or negatively impact our revenues, any of which could have a material negative impact on our financial results.

Our ability to meet cash needs depends upon certain factors, including the market value of our assets, operating cash flows and our perceived creditworthiness. Our ability to meet anticipated cash needs depends upon factors such as the market value of our assets, our operating cash flows and our creditworthiness as perceived by lenders. If we are unable to obtain cash, financing or access to the capital markets in a timely manner, we may be forced to incur unanticipated costs or revise our business plans, and our business could be adversely impacted. Further, our access to the capital markets depends significantly on our credit ratings. A reduction in our long- or short-term credit ratings could increase our borrowing costs and limit our access to the capital markets. Volatility in the global financing markets may also impact our ability to access the capital markets should we seek to do so, and may have an adverse effect on investors’ willingness to purchase our securities, interest rates, credit spreads and/or the valuation levels of equity markets.

We are dependent on the earnings of our subsidiaries. Substantially all of our operations are conducted through our subsidiaries. As a result, our cash flow and our ability to fund operations are dependent upon the earnings of our subsidiaries and the distribution of earnings, loans or other payments by our subsidiaries. Our subsidiaries are separate and distinct legal entities and have no obligation to fund our payment obligations, whether by dividends, distributions, loans or other payments. Any payments to us by our subsidiaries could be subject to statutory or contractual restrictions and are contingent upon our subsidiaries’ earnings and business considerations. Certain of our subsidiaries are subject to regulatory restrictions which may limit their ability to transfer assets to their parent companies and/or our ability to repatriate assets to the U.S. Our financial condition could be adversely affected if certain of our subsidiaries are unable to distribute assets to us.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

During the nine months ended June 30, 2017, there were no material changes from the market risk disclosures in our Form 10-K for the fiscal year ended September 30, 2016.

Item 4. Controls and Procedures.

The Company’s management evaluated, with the participation of the Company’s principal executive and principal financial officers, the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of June 30, 2017. Based on their evaluation, the Company’s principal executive and principal financial officers concluded that the Company’s disclosure controls and procedures as of June 30, 2017 were designed and are functioning effectively to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and (ii) accumulated and communicated to management, including the principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

There has been no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company’s fiscal quarter ended June 30, 2017, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

For a description of our legal proceedings, please see the description set forth in the “Legal Proceedings” section in Note 9 – Commitments and Contingencies in the notes to the condensed consolidated financial statements in Item 1 of Part I of this Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors.

Our Form 10-K for the fiscal year ended September 30, 2016 filed with the SEC includes a discussion of the risk factors identified by us, which are also set forth under the heading “Risk Factors” in Item 2 of Part I of this Form 10-Q. There were no material changes from the Risk Factors as previously disclosed in our Form 10-K for the fiscal year ended September 30, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information with respect to the shares of our common stock that we repurchased during the three months ended June 30, 2017.

Month	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
April 2017	1,218,423	$	41.57	1,218,423	38,398,696
May 2017	1,675,300	42.25		1,675,300	36,723,396
June 2017	1,213,102	43.84		1,213,102	35,510,294
Total	4,106,825			4,106,825

Under our stock repurchase program, we can repurchase shares of our common stock from time to time in the open market and in private transactions in accordance with applicable laws and regulations, including without limitation applicable federal securities laws. In order to pay taxes due in connection with the vesting of employee and executive officer stock and stock unit awards, we may repurchase shares under our program using a net stock issuance method. In June 2016, we announced that our Board of Directors authorized the repurchase of up to 50.0 million additional shares of our common stock under the stock repurchase program. At June 30, 2017, 35.5 million shares remained available for repurchase under the program, which is not subject to an expiration date. There were no unregistered sales of equity securities during the period covered by this report.

Item 6. Exhibits.

The exhibits listed on the Exhibit Index to this Form 10-Q are incorporated herein by reference.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		FRANKLIN RESOURCES, INC.
		(Registrant)
Date:	July 28, 2017	By:	/S/ KENNETH A. LEWIS
			Kenneth A. Lewis
			Chief Financial Officer and Executive Vice President
			(Duly Authorized Officer and Principal Financial Officer)

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EXHIBIT INDEX

Exhibit No.	Description
3(i)(a)	Registrant’s Certificate of Incorporation, as filed November 28, 1969, incorporated by reference to Exhibit (3)(i) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended September 30, 1994 (File No. 001-09318) (the “1994 Annual Report”)
3(i)(b)	Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed March 1, 1985, incorporated by reference to Exhibit 3(ii) to the 1994 Annual Report
3(i)(c)	Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed April 1, 1987, incorporated by reference to Exhibit 3(iii) to the 1994 Annual Report
3(i)(d)	Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed February 2, 1994, incorporated by reference to Exhibit 3(iv) to the 1994 Annual Report
3(i)(e)	Registrant’s Certificate of Amendment of Certificate of Incorporation, as filed on February 4, 2005, incorporated by reference to Exhibit (3)(i)(e) to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2004 (File No. 001-09318)
3(ii)	Registrant’s Amended and Restated Bylaws (as adopted and effective September 16, 2015), incorporated by reference to Exhibit (3)(ii) to the Registrant’s Quarterly Report on Form 10-Q for the period ended December 31, 2016 (File No. 001-09318)
10.1	Registrant’s 2002 Universal Stock Incentive Plan (as amended and restated effective June 14, 2017) (filed herewith)*
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101	The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) related notes (filed herewith)

___________

*        Compensatory Plan

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EX-10.1

EXHIBIT 10.1

FRANKLIN RESOURCES, INC.

2002 UNIVERSAL STOCK INCENTIVE PLAN

(as amended and restated effective June 14, 2017)

1. GENERAL

1.1    Purpose. The Franklin Resources, Inc. 2002 Universal Stock Incentive Plan (the “2002 Stock Plan”) has been established by Franklin Resources, Inc., a Delaware corporation (the “Company”) to (i) attract and retain persons eligible to participate in the 2002 Stock Plan; (ii) motivate employees, by means of appropriate incentives, to achieve long-range performance goals; (iii) provide incentive compensation opportunities that are competitive with those of other similar companies; and (iv) further identify Participants’ interests with those of the Company’s other stockholders through compensation that is based on the Company’s common stock; and thereby promote the long-term financial interest of the Company and the Subsidiaries.

1.2    Participation. Subject to the terms and conditions of the 2002 Stock Plan, a Committee shall determine and designate, from time to time, from among the Participants, those persons who will be granted one or more Awards under the 2002 Stock Plan. In the discretion of a Committee, a Participant may be granted any Award permitted under the provisions of the 2002 Stock Plan, and more than one Award may be granted to a Participant. Awards may be granted as alternatives to or replacement of awards outstanding under the 2002 Stock Plan, or any other plan or arrangement of the Company or a Subsidiary (including a plan or arrangement of a business or entity, all or a portion of which is acquired by the Company or a Subsidiary).

1.3    Operation, Administration, and Definitions. The operation and administration of the 2002 Stock Plan, including the Awards made under the 2002 Stock Plan, shall be subject to the provisions of Section 4. Capitalized terms in the 2002 Stock Plan shall be defined as set forth in the 2002 Stock Plan (including the definition provisions of Section 8 of the 2002 Stock Plan).

1.4    Stock Subject to 2002 Stock Plan; Share Counting. Subject to the provisions of this Section 1.4 and Section 6.1 of the 2002 Stock Plan, the maximum aggregate number of Shares which may be delivered pursuant to Awards, including without limitation, the number of Shares that may be granted pursuant to Options (including Incentive Stock Options) and SARs, is 40,000,000. The Shares may be authorized but unissued, or reacquired Common Stock.

(a)    Except as set forth in Section 1.4(b) and (c), to the extent any Shares covered by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, or the Shares are not delivered because the Award is settled in cash, such Shares shall not be deemed to have been delivered for purposes of determining the maximum number of Shares available for delivery pursuant to Awards granted under the 2002 Stock Plan.

(b)    All Shares covered by the portion of a SAR that is exercised (whether or not Shares are actually issued to the Participant upon exercise of the SAR) shall be considered issued pursuant to the 2002 Stock Plan.

(c)    If Shares are surrendered or withheld as payment of either the exercise price of an Option granted hereunder and/or withholding taxes in respect of such an Option (including, without limitation, by attestation), such Shares shall not be returned to the 2002 Stock Plan and shall not be available for future awards under the 2002 Stock Plan

(d)    Subject to adjustment under Section 6.1, (i) the maximum number of shares that may be granted to any one individual Participant pursuant to Section 2 (relating to Options and SARs) shall be 400,000 Shares during any one-calendar-year period and (ii) the maximum number of Shares that may be granted to any one individual Participant subject to Section 3 (relating to Restricted Stock Awards, Restricted Stock Unit Awards and Performance Share Awards) shall be 1,000,000 Shares during any one-calendar-year period (regardless of when such Shares are deliverable).

(e)    Subject to adjustment under Section 6.1, the maximum number of Shares subject to Awards granted during a single fiscal year of the Company to any non-employee member of the Board, taken together with any cash fees paid to such non-employee member of the Board during the fiscal year, shall not, in each case, exceed $1,000,000 in total value (calculating the value of any stock-based Award based on the grant date fair value of such Award for financial reporting purposes).

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2. OPTIONS AND SARS

2.1    Options.

(a)    An Option is a grant of a right to purchase Shares at an exercise price established by the Compensation Committee, subject to Section 2.3. Options granted under this Section 2 may be either Incentive Stock Options (“ISO”) or Nonstatutory Stock Options (“NSO”), as determined in the discretion of the Compensation Committee.

(b)    Each Option shall be designated in the written option agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of the Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be automatically treated as Nonstatutory Stock Options. For purposes of this paragraph 2.1(b), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the underlying Shares shall be determined as of the original date on which the Option is granted. In the event that the Code or the regulations promulgated thereunder are amended after the date the 2002 Stock Plan becomes effective to provide for a different limit on the Fair Market Value of Shares permitted to be subject to Incentive Stock Options, then such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

(c)    The term of each Option shall be the term stated in the Award Agreement; provided, however, that in the case of any Incentive Stock Option, the term shall be no more than ten (10) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. However, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement.

(d)    The date of grant of an Option shall, for all purposes, be the date on which the Compensation Committee makes the determination granting such Option, or such other future date as is determined by the Compensation Committee. Notice of the determination shall be given to each Participant to whom an Option is so granted within a reasonable time after the date of such grant.

2.2    Stock Appreciation Rights. A “Stock Appreciation Right” (“SAR”) is a grant of rights to receive, in cash or Stock (as determined by the Compensation Committee), value equal to (or otherwise based on) the excess of: (a) the Fair Market Value of a specified number of Shares at the time of exercise; over (b) a base appreciation amount established by the Compensation Committee, subject to Section 2.3.

2.3    Exercise Price. The exercise price or base appreciation amount (as applicable) of each Option and SAR shall be established by the Compensation Committee or shall be determined by a method established by the Compensation Committee at the time the Option or SAR is granted; provided, that:

(a)    In the case of an ISO,

(i)    granted to an employee who, at the time of the grant of such Incentive Stock Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant;

(ii)    granted to any other employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

(b)    In the case of a NSO, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

(c)    In the case of a SAR, the base appreciation amount shall be no less than 100% of the Fair Market Value per Share on the date of grant.

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2.4    Time and Manner of Exercise. Options and SARs shall be exercisable in accordance with such terms and conditions and during such periods as may be established by a Committee; subject to the following terms regarding Options and SARs:

(a)    Termination of Employment. In the event of termination of an Optionee’s Continuous Status as an Employee, such Optionee may, but only within ninety (90) days after the date of such termination (or such other period as is set out by a Committee in the Award Agreement, but in no event later than the expiration date of the term of such Option as set forth in the Award Agreement), exercise the Option to the extent that Optionee was entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of such termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

(b)    Disability of Optionee. Notwithstanding the provisions of paragraph 2.4(a) above, in the event of termination of an Optionee’s Continuous Status as an Employee as a result of disability (as determined by a Committee in accordance with the policies of the Company), Optionee may, but only within six (6) months from the date of such termination (or such other period as is set out by a Committee in the Award Agreement, but in no event later than the expiration date of the term of such Option as set forth in the Award Agreement), exercise the Option to the extent otherwise entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

(c)    Death of Optionee. In the event of the death of an Optionee, the Option may be exercised, at any time within twelve (12) months following the date of death (or such other period as is set out by a Committee in the Award Agreement, but in no event later than the expiration date of the term of such Option as set forth in the Award Agreement), by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the Optionee was entitled to exercise the Option at the date of death. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate.

(d)    Minimum Vesting Requirement. No Option or SAR shall become vested or exercisable prior to the first anniversary of its date of grant.

2.5    Payment of Exercise Price. Payment of the exercise price of an Option shall be subject to the following:

(a)    The full exercise price for Shares purchased upon the exercise of any Option shall be paid at the time of such exercise (except that, in the case of an exercise arrangement approved by a Committee and described in paragraph 2.5(b), payment may be made as soon as practicable after the exercise).

(b)    The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by a Committee (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may, in the discretion of a Committee, consist entirely of (i) cash, (ii) check, (iii) delivery of authorization for the Company to retain from the total number of Shares as to which the Option is exercised that number of Shares having a Fair Market Value on the date of exercise equal to the exercise price for the total number of Shares as to which the Option is exercised, (iv) delivery of a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds required to pay the exercise price, (v) irrevocably authorizing a third party to sell Shares (or a sufficient portion of the shares) acquired upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise, (vi) any combination of the foregoing methods of payment, or (vii) such other consideration and method of payment for the issuance of Shares to the extent permitted under Applicable Laws.

2.6    Settlement of Award. Shares delivered pursuant to the exercise of an Option or SAR shall be subject to such conditions, restrictions and contingencies as a Committee may establish in the applicable Award Agreement at the time of grant. Settlement of SARs may be made in Shares (valued at their Fair Market Value at the time of exercise), in cash, or in a combination thereof, as determined in the discretion of a Committee. A Committee, in its discretion, may impose such conditions, restrictions and contingencies with respect to Shares acquired pursuant to the exercise of an Option or a SAR as such Committee determines to be desirable.

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3. OTHER STOCK AWARDS

3.1    Restrictions on Stock Awards. Each Restricted Stock Award, Restricted Stock Unit Award and Performance Share Award shall be subject to the following:

(a)    Any such Awards shall be subject to such conditions, restrictions and contingencies as a Committee shall determine.

(b)    The Compensation Committee may designate whether any such Awards being granted to any Participant are intended to be “performance-based compensation” as that term is used in Section 162(m) of the Code. Any such Awards designated as intended to be “performance-based compensation” shall be conditioned on the achievement of one or more Performance Goals. The Performance Goals that may be used by a Committee for such Awards shall be based on any one or more of the criteria attached hereto on Attachment I, as selected and further defined by the Compensation Committee. The Performance Goals may be applicable to the Company and/or any of its individual business units and may differ from Participant to Participant. For Awards intended to be “performance-based compensation,” the grant of the Awards and the establishment of the Performance Goals shall be made during the period required under Section 162(m) of the Code and shall be subject to the individual share limit set out in Section 1.4(c) above.

4. OPERATION AND ADMINISTRATION

4.1    Effective Date. The 2002 Stock Plan became effective as of October 10, 2002. The 2002 Stock Plan shall be unlimited in duration and, in the event of the 2002 Stock Plan termination, shall remain in effect as long as any Awards under it are outstanding; provided, however, that to the extent required by the Code, no ISO may be granted under the 2002 Stock Plan after March 15, 2021.

4.2    Term of Awards. Subject to the limitations of Section 2.1(c), the term of each Award under the 2002 Stock Plan shall be the term stated in the applicable Award Agreement, provided, that the term shall be no more than ten (10) years from the date of grant thereof. Notwithstanding the foregoing, the specified term of any Award shall not include any period for which the Participant has elected to defer the receipt of the Shares or cash issuable pursuant to the Award.

4.3    General Restrictions. Delivery of Shares or other amounts under the 2002 Stock Plan shall be subject to the following:

(a)    Notwithstanding any other provision of the 2002 Stock Plan, the Company shall have no liability to deliver any Shares under the 2002 Stock Plan or make any other distribution of benefits under the 2002 Stock Plan unless such delivery or distribution would comply with all Applicable Laws (including, without limitation, the requirements of the Securities Act), and the applicable requirements of any securities exchange or similar entity.

(b)    Shares issued under the 2002 Stock Plan may be certificated or, to the extent not prohibited by Applicable Law or the applicable rules of any stock exchange, non-certificated.

4.4    Tax Withholding. All distributions under the 2002 Stock Plan are subject to withholding of all applicable taxes, and a Committee may condition the delivery of any Shares or other benefits under the 2002 Stock Plan on satisfaction of the applicable withholding obligations. A Committee, in its discretion, and subject to such requirements as such Committee may impose prior to the occurrence of such withholding, may permit such withholding obligations to be satisfied through (i) cash payment by the Participant, (ii) through the surrender of Shares which the Participant already owns (which have been held by the Participant and vested for at least six (6) months or such other period as established from time to time by the Committee in order to avoid an adverse accounting treatment under applicable accounting standards), or (iii) through the surrender of Shares to which the Participant is otherwise entitled under the 2002 Stock Plan, provided, however, that only the number of Shares sufficient to satisfy the Company’s minimum statutorily required tax withholding obligations shall be surrendered to the Company. The Committee has full discretion to allow a Participant to satisfy, in whole or in part, any additional income, employment and/or other applicable taxes payable by the Participant with respect to an Award by electing to have the Company withhold from the Shares otherwise deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting or settlement of the Award, as applicable, Shares having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding obligation (but such withholding may in no event be in excess of the maximum statutory withholding amount in the Participant’s relevant tax jurisdictions).

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4.5    Use of Shares. Subject to the overall limitation on the number of Shares that may be delivered under the 2002 Stock Plan, a Committee may use available Shares as the form of payment for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company or a Subsidiary, including the plans and arrangements of the Company or a Subsidiary assumed in business combinations.

4.6    Dividends and Dividend Equivalents. An Award (including without limitation an Option or SAR Award) may provide the Participant with the right to receive dividend payments or dividend equivalent payments with respect to Stock subject to the Award (both before and after the Stock subject to the Award is earned, vested, or acquired), which payments may be either made currently or credited to an account for the Participant, and may be settled in cash or Stock as determined by a Committee. Any such settlements, and any such crediting of dividends or dividend equivalents or reinvestment in Shares, may be subject to such conditions, restrictions and contingencies as a Committee shall establish, including the reinvestment of such credited amounts in Stock equivalents.

4.7    Payments. Awards may be settled through cash payments, the delivery of Shares, the granting of replacement Awards (subject to Section 5.2(e)), or combination thereof as a Committee shall determine. Any Award settlement, including payment deferrals, may be subject to such conditions, restrictions and contingencies as a Committee shall determine. A Committee may permit or require the deferral of any Award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, or dividend equivalents, including converting such credits into deferred Stock equivalents. Each Subsidiary shall be liable for payment of cash due under the 2002 Stock Plan with respect to any Participant to the extent that such benefits are attributable to the services rendered for that Subsidiary by the Participant. Any disputes relating to liability of a Subsidiary for cash payments shall be resolved by a Committee.

4.8    Non-alienation of Awards. Unless specifically provided by a Committee in the Award Agreement, Awards under the 2002 Stock Plan may not be sold, assigned, conveyed, hypothecated, encumbered, anticipated, or otherwise disposed of, and are nontransferable except as designated by the Participant by will or by the laws of descent and distribution; provided, that an Award Agreement shall not provide that an Award is transferable during the lifetime of the Participant, except to the extent that such Award Agreement permits transfers made to family members, to family trusts, to family controlled entities, to charitable organizations, and/or pursuant to domestic relations orders or agreements, in all cases without payment for such transfers to the Participant. Any attempt to sell, assign, convey, hypothecate, encumber, anticipate, transfer, or otherwise dispose of any Award under the 2002 Stock Plan in violation of this Section 4.8 shall be void, and no Shares or cash subject to any Award shall, prior to receipt thereof by a Participant, be in any manner subject to the debts, contracts, liabilities, engagements, or torts of such Participant.

4.9    Agreement With Company. An Award under the 2002 Stock Plan shall be subject to such terms and conditions, not inconsistent with the 2002 Stock Plan, as a Committee shall, in its sole discretion, prescribe. The terms and conditions of any Award to any Participant shall be reflected in an Award Agreement, a copy of which shall be provided to the Participant, and a Committee may, but need not require that the Participant shall sign a copy of such Award Agreement.

4.10    Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular.

4.11    Limitation of Implied Rights.

(a)    Neither a Participant nor any other person shall, by reason of participation in the 2002 Stock Plan, acquire any right in or title to any assets, funds or property of the Company or any Parent or Subsidiary whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Parent or Subsidiary, in their sole discretion, may set aside in anticipation of a liability under the 2002 Stock Plan. A Participant shall have only a contractual right to the Stock or amounts, if any, payable under the 2002 Stock Plan, unsecured by any assets of the Company or any Parent or Subsidiary, and nothing contained in the 2002 Stock Plan shall constitute a guarantee that the assets of the Company or any Parent or Subsidiary shall be sufficient to pay any benefits to any person.

(b)    The 2002 Stock Plan does not constitute a contract of employment, and selection as a Participant will not give any Participant the right to be retained in the employ of the Company or any Subsidiary, nor any right or claim to any benefit under the 2002 Stock Plan, unless such right or claim has specifically accrued under the terms of the 2002 Stock Plan. Except as otherwise provided in the 2002 Stock Plan, no Award under the 2002 Stock Plan shall confer upon the holder thereof any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

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5. COMMITTEES

5.1    Committees. The authority to control and manage the operation and administration of the 2002 Stock Plan shall be vested in a committee or committees established by the Board with such powers and authority as shall be determined by the Board in its discretion (each such committee, a “Committee”). In addition to any other Committee established by the Board, the Compensation Committee of the Board (the “Compensation Committee”) shall be considered a Committee hereunder and shall be comprised, unless otherwise determined by the Board, solely of not less than two members of the Board who shall be “outside” directors within the meaning of Treasury Regulation Section 1.162-27(e)(3) under Section 162(m) of the Code. If a Committee does not exist, or for any other reason determined by the Board, the Board may take any action under the 2002 Stock Plan that would otherwise be the responsibility of a Committee.

5.2    Powers of Committee. Each Committee’s administration of the 2002 Stock Plan shall be subject to the authority granted to such Committee by the Board and the following:

(a)    Subject to the provisions of the 2002 Stock Plan, a Committee will have the authority and discretion to select from among the Participants those persons who shall receive Awards, to determine the time or times of receipt, to determine the types of Awards and the number of shares covered by the Awards, to establish the terms, conditions, performance criteria (provided, that for purposes of Section 162(m) of the Code, performance goals shall be based on one or more of the criteria set out on Attachment I hereto), restrictions, and other provisions of such Awards, and (subject to Section 7) to cancel or suspend Awards.

(b)    To the extent that a Committee determines that the restrictions imposed by the 2002 Stock Plan preclude the achievement of the material purposes of the Awards in jurisdictions outside the United States, such Committee will have the authority and discretion to modify those restrictions as such Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United States.

(c)    A Committee may grant Awards to Participants who are subject to the tax laws of nations other than the United States, which Awards may have terms and conditions as determined by the Committee as necessary to comply with applicable foreign laws. A Committee may take any action which it deems advisable to obtain approval of such Awards by the appropriate foreign government entity; provided, however, that no such Awards may be granted under this 2002 Stock Plan and no action may be taken which would result in a violation of the Exchange Act, the Code or any other Applicable Law.

(d)    In controlling and managing the operation and administration of the 2002 Stock Plan, a Committee shall take action in a manner that conforms to the articles and by-laws of the Company, and Applicable Law.

(e)    Notwithstanding anything in the 2002 Stock Plan to the contrary, (i) the reduction of the exercise price of any Option awarded under the 2002 Stock Plan and the base appreciation amount of any SAR awarded under the 2002 Stock Plan shall be subject to stockholder approval and (ii) canceling an Option or SAR at a time when its exercise price or base appreciation amount (as applicable) exceeds the Fair Market Value of the underlying Shares, in exchange for another Option, SAR, Restricted Stock Award, other Award or cash payment shall be subject to stockholder approval, unless the cancellation and exchange occurs in connection with a Transaction. Notwithstanding the foregoing, canceling an Option or SAR in exchange for another Option, SAR, Restricted Stock Award, or other Award with an exercise price, purchase price or base appreciation amount (as applicable) that is equal to or greater than the exercise price or base appreciation amount (as applicable) of the original Option or SAR shall not be subject to stockholder approval.

(f)    Notwithstanding the authority granted to any other Committee, the Compensation Committee will have the sole authority and discretion to interpret the 2002 Stock Plan, to establish, amend, and rescind any rules and regulations relating to the 2002 Stock Plan, and to make all other determinations that may be necessary or advisable for the administration of the 2002 Stock Plan. The Compensation Committee may correct any defect or supply any omission or reconcile any inconsistency in the 2002 Stock Plan in the manner and to the extent the Compensation Committee deems necessary or advisable. Any decision of the Compensation Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, without limitation, Participants and their beneficiaries or successors).

5.3    Delegation by Compensation Committee. Except to the extent prohibited by Applicable Law or the applicable rules of a stock exchange, a Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its ministerial duties to any person or persons selected by it. Any such allocation or delegation may be revoked by a Committee at any time.

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5.4    Information to be Furnished to Committee. The records of the Company and its Subsidiaries as to a Participant’s employment, termination of employment, leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to be incorrect. Participants must furnish a Committee such evidence, data or information as such Committee considers desirable to carry out the terms of the 2002 Stock Plan in order to be entitled to benefits under the 2002 Stock Plan.

6. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR CORPORATE TRANSACTION

6.1    Changes in Capitalization. In the event of any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock or any transaction similar to the foregoing, the Compensation Committee shall make such substitution or adjustment, if any, as it deems to be equitable in order to prevent the enlargement or diminution of the benefits or potential benefits intended to be made available under the 2002 Stock Plan, subject to any required action by the stockholders of the Company, as to (a) the number and/or class of securities covered by each outstanding Award, (b) the price per share covered by each such outstanding Award, (c) the number and/or class of securities which have been authorized for issuance under the 2002 Stock Plan but as to which no Awards have yet been granted or which have been returned to the 2002 Stock Plan upon cancellation or expiration of an Award, and (d) the maximum number of Options, SARs, Restricted Stock Awards, Restricted Stock Unit Awards and Performance Share Awards which may be granted to any Participant in any one-calendar-year period; provided, that, for the avoidance of doubt, in the case of the occurrence of any of the foregoing events that is an “equity restructuring” (within the meaning of applicable stock-based compensation accounting guidelines), the Compensation Committee shall make an equitable adjustment to outstanding Awards to reflect such event.

6.2    Transactions. In the event of the proposed dissolution or liquidation of the Company or of a merger or corporate combination (a “Transaction”) in which the successor corporation does not agree to assume the Award or substitute an equivalent Award, the Compensation Committee shall make a determination (subject to Section 7) as to the equitable treatment of outstanding Awards under the 2002 Stock Plan and shall notify Participants of such treatment no later than ten (10) days prior to such proposed Transaction. To the extent it has not been previously exercised, an Award that is not assumed will terminate immediately prior to the consummation of such proposed Transaction.

7. AMENDMENT AND TERMINATION

The Board may, at any time, amend or terminate the 2002 Stock Plan; provided, that no amendment or termination (i) may adversely affect the rights of any Participant or beneficiary under any Award granted under the 2002 Stock Plan prior to the date such amendment is adopted by the Board unless written consent of the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary) is obtained, and (ii) shall be made without the approval of the Company’s stockholders to the extent such approval is required by Applicable Laws, the requirements of any applicable stock exchange, or if such amendment would lessen the stockholder approval requirements of Section 5.2(f) or this Section 7; provided, that, anything to the contrary notwithstanding, the Board may amend the 2002 Stock Plan in such manner as it deems necessary to cause an Award to comply with the requirements of the Code or any other Applicable Law (including, without limitation, to avoid adverse tax consequences) or for changes in new accounting standards; provided, further, that such amendment shall not adversely affect the rights or potential benefits of a Participant under an Award unless the Participant consents in writing. Notwithstanding anything herein to the contrary, modifications or adjustments pursuant to Sections 6.1 or 6.2 or that may cause an Incentive Stock Option to become a Nonstatutory Stock Option shall in no event be deemed to have an adverse effect on any Award.

8. DEFINED TERMS

In addition to the other definitions contained herein, the following definitions shall apply:

(a)    “Applicable Law” means the corporate, securities and tax laws (including, without limitation, the Delaware corporate law, the Exchange Act, the Securities Act and the Code) applicable to the establishment and administration of employee stock incentive plans and the grant of awards thereunder.

(b)    “Award” means any award or benefit granted under the 2002 Stock Plan, including, without limitation, the grant of Options, SARs, Restricted Stock Awards, Restricted Stock Unit Awards and Performance Share Awards.

(c)    “Award Agreement” means a written agreement between the Company and a holder of an Award, executed by the Company, evidencing the terms and conditions of the Award.

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(d)    “Board” means the Board of Directors of the Company.

(e)    “Code” means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code shall include reference to any successor provision of the Code.

(f)    “Common Stock” means the common stock, par value, $.10 per share, of the Company.

(g)    “Continuous Status as an Employee” means the absence of any interruption or termination of the employment relationship by the Company or any Subsidiary. Continuous Status as an Employee shall not be considered interrupted in the case of: (i) sick leave, military leave or any other leave of absence approved by the Board, provided, that, solely for purposes of Incentive Stock Options, such leave is for a period of not more than ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted from time to time; or (ii) in the case of transfers between locations of the Company or between the Company, its Subsidiaries or its successor.

(h)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(i)    “Fair Market Value” means the value of a share of Stock granted pursuant to the 2002 Stock Plan as of any date determined as follows:

(i)    If there should be a public market for the Stock on such date, the closing price of such share of Stock as reported on such date on the composite tape of the principal national securities exchange on which such share is listed or admitted to trading, or if such share is not listed or admitted to trading on any national securities exchange, the arithmetic mean of the per share closing bid price and the per share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices are regularly quoted) (“NASDAQ”), or if no sale of such share shall have been reported on the composite tape of any national securities exchange or quoted on the NASDAQ on such date, then the immediately preceding date on which sales of such shares has been so reported or quoted shall be used; and

(ii)    If there should not be a public market for the Stock on such date, then the Fair Market Value of the Stock shall be determined in good faith by the Board (or a committee thereof).

(j)    “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

(k)    “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

(l)    “Option” means a stock option granted pursuant to Section 2 of the 2002 Stock Plan.

(m)    “Optionee” means a Participant who receives an Option.

(n)    “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code.

(o)    “Participant” means any executive, employee, director of the Company, or any of its Subsidiaries. An Award may be granted to an employee, in connection with hiring, retention or otherwise, prior to the date the employee first performs services for the Company or its Subsidiaries; provided, that such Awards shall not become vested prior to the date the employee first performs such services. The term “Participant” also includes any non-employee director of the Company or its Subsidiaries.

(p)    “Performance Goals” means the business criteria applicable to the grant of Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code.

(q)    “Performance Share Award” means a grant of a right to receive Shares or cash that is contingent on the achievement of performance or other objectives during a specified period.

(r)    “Restricted Stock Award” means a grant of Shares subject to a risk of forfeiture or other restrictions that will lapse upon the achievement of one or more goals relating to completion of service by the Participant, or achievement of performance or other objectives, as determined by a Committee.

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(s)    “Restricted Stock Unit Award” means a grant of a right to receive Shares in the future, with such right to future delivery subject to a risk of forfeiture or other restrictions that will lapse upon the achievement of one or more goals relating to completion of service by the Participant, or achievement of performance or other objectives, as determined by a Committee.

(t)    “Securities Act” means the Securities Act of 1933, as amended, and any successor thereto.

(u)    “Share” means a share of the Common Stock, as adjusted in accordance with Section 6 of the 2002 Stock Plan.

(v)    “Stock” mean shares of Common Stock of the Company.

(w)    “Subsidiary” or “Subsidiaries” means any company during any period in which it is a “subsidiary corporation” (as that term is defined in Code section 424(f)) with respect to the Company.

9. SECTION 409A

The 2002 Stock Plan is intended to comply with the requirements of Section 409A of the Code or an exemption or exclusion therefrom and, with respect to amounts that are subject to Section 409A of the Code, it is intended that the 2002 Stock Plan be administered in all respects in accordance with Section 409A of the Code. Each payment under any Award shall be treated as a separate payment for purposes of Section 409A of the Code. In no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under any Award, but only to the extent such payment is considered “nonqualified deferred compensation” within the meaning of Section 409A of the Code. Notwithstanding any provision of the 2002 Stock Plan or any Award Agreement to the contrary, in the event that a Participant is a “specified employee” within the meaning of Section 409A of the Code (as determined in accordance with the methodology established by the Company), amounts that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code that would otherwise be payable on account of a separation from service within the meaning of Section 409A of the Code and during the six-month period immediately following a Participant’s “separation from service” within the meaning of Section 409A of the Code (“Separation from Service”) shall instead be paid or provided on the first business day after the date that is six months following the Participant’s Separation from Service. If the Participant dies following the Separation from Service and prior to the payment of any amounts delayed on account of Section 409A of the Code, such amounts shall be paid to the personal representative of the Participant’s estate within thirty (30) days after the date of the Participant’s death. The Company shall use commercially reasonable efforts to implement the provisions of this Section 9 in good faith; provided, that neither the Company, the Committee nor any of the Company’s employees, directors or representatives shall have any liability to any Participant with respect to this Section 9.

10. PLAN HISTORY

The 2002 Stock Plan became effective as of October 10, 2002. The 2002 Stock Plan was originally approved by the stockholders of the Company on January 30, 2003. The Board approved an amendment and restatement of the 2002 Stock Plan on December 16, 2004 to (a) include additional Performance Goals and (b) amend Section 6.1 to increase the scope of adjustments that may be made as a result of changes in capitalization of the Company, which amendment and restatement was approved by the stockholders of the Company on January 25, 2005. The Board approved a further amendment and restatement of the 2002 Stock Plan on December 18, 2009 to (a) revise the Performance Goals such that they conform to the Performance Goals under the Franklin Resources, Inc. 2004 Key Executive Incentive Compensation Plan and (b) make certain administrative updates, which amendment and restatement became effective upon its approval by the stockholders of the Company on March 16, 2010. The Board approved a further amendment and restatement of the 2002 Stock Plan on December 16, 2010 to increase the number of authorized Shares subject to the 2002 Stock Plan by ten million (10,000,000) Shares, for a total maximum aggregate of forty million (40,000,000) Shares, which amendment and restatement became effective upon its approval of the stockholders of the Company on March 15, 2011. The Board approved a further amendment and restatement of the 2002 Stock Plan on October 22, 2012 to permit additional committees of the Board to exercise certain authority under the Plan, which amendment and restatement was not subject to the approval of the stockholders of the Company. The Board approved a further amendment and restatement of the 2002 Stock Plan on December 15, 2015, to provide for a minimum vesting schedule for Options and SARs and clarify that cancellation of an Option or SAR at a time when its exercise price or base appreciation amount (as applicable) exceeds the Fair Market Value of the underlying Shares requires shareholder approval, which amendment and restatement was not subject to the approval of the stockholders of the Company.

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The Board approved a further amendment and restatement of the 2002 Stock Plan on June 14, 2017 to provide that the Committee may permit a Participant to elect to withhold up to the maximum statutorily required amount for applicable tax withholding upon the vesting, exercise or settlement of Awards and to make other immaterial administrative changes, which amendment and restatement was not subject to the approval of the stockholders of the Company.

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ATTACHMENT I

PERFORMANCE GOALS

The Compensation Committee shall grant performance-based compensation Awards tied to one or more of the following business criteria:

(a) annual revenue,

(b) budget comparisons,

(c) controllable profits,

(d) Company earnings per share,

(e) expense management,

(f) improvements in capital structure,

(g) net income,

(h) net or gross sales,

(i) operating income (pre- or post-tax),

(j) profit margins,

(k) operating or gross margin,

(l) profitability of an identifiable business unit or product,

(m) return on investments,

(n) return on sales,

(o) return on stockholders’ equity,

(p) total return to stockholders,

(q) assets under management,

(r) investment management performance,

(s) mutual and other investment fund performance,

(t) institutional account performance,

(u) high net worth and other separate account performance,

(v) cash flow, operating cash flow, or cash flow or operating cash flow per share (before or after dividends),

(w) price of the shares or any other publicly traded securities of the Company,

(x) reduction in costs,

(y) return on capital, including return on total capital or return on invested capital,

(z) improvement in or attainment of expense levels or working capital levels, and

(aa) performance of the Company relative to a peer group of companies and/or relevant indexes on any of the foregoing measures.

The Performance Goals may be applicable to the Company and/or any of its individual business units and may differ from Participant to Participant. In addition, the Performance Goals shall be calculated in accordance with generally accepted accounting principles, but excluding the effect (whether positive or negative) of any change in accounting standards and any

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extraordinary, unusual or nonrecurring item, as determined by the Compensation Committee, occurring after the establishment of the Performance Goals applicable to an Award intended to be performance-based compensation. Each such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of Performance Goals in order to prevent the dilution or enlargement of the Participant’s rights with respect to an Award intended to be performance-based compensation; provided, however, that certain categories or types of such adjustments can be specifically included (rather than excluded) at the time the Performance Goals are established if so determined by the Compensation Committee.

12

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Gregory E. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Franklin Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 28, 2017	/s/    GREGORY E. JOHNSON
		Gregory E. Johnson
		Chairman of the Board and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Kenneth A. Lewis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Franklin Resources, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 28, 2017	/s/    KENNETH A. LEWIS
		Kenneth A. Lewis
		Chief Financial Officer and Executive Vice President

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (FURNISHED HEREWITH)

I, Gregory E. Johnson, Chairman of the Board and Chief Executive Officer of Franklin Resources, Inc. (the “Company”), certify, as of the date hereof and solely for purposes of and pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date:	July 28, 2017	/s/    GREGORY E. JOHNSON
		Gregory E. Johnson
		Chairman of the Board and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (FURNISHED HEREWITH)

I, Kenneth A. Lewis, Chief Financial Officer and Executive Vice President of Franklin Resources, Inc. (the “Company”), certify, as of the date hereof and solely for purposes of and pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date:	July 28, 2017	/s/    KENNETH A. LEWIS
		Kenneth A. Lewis
		Chief Financial Officer and Executive Vice President

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Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Jul. 21, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Franklin Resources Inc
Entity Central Index Key	0000038777
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		557,701,394

XML

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Operating Revenues
Investment management fees	$ 1,097.0	$ 1,093.5	$ 3,249.4	$ 3,375.4
Sales and distribution fees	433.3	450.2	1,283.8	1,365.6
Shareholder servicing fees	56.7	61.5	169.7	185.2
Other	26.9	29.1	72.4	80.0
Total operating revenues	1,613.9	1,634.3	4,775.3	5,006.2
Operating Expenses
Sales, distribution and marketing	541.2	553.4	1,596.0	1,673.7
Compensation and benefits	342.7	326.9	997.6	1,043.7
Information systems and technology	54.1	50.5	159.8	151.3
Occupancy	30.2	33.1	88.3	96.8
General, administrative and other	81.5	75.0	227.0	254.4
Total operating expenses	1,049.7	1,038.9	3,068.7	3,219.9
Operating Income	564.2	595.4	1,706.6	1,786.3
Other Income (Expenses)
Investment and other income, net	92.2	65.8	222.9	113.7
Interest expense	(12.9)	(12.3)	(38.8)	(36.5)
Other income, net	79.3	53.5	184.1	77.2
Income before taxes	643.5	648.9	1,890.7	1,863.5
Taxes on income	184.1	187.4	577.5	578.8
Net income	459.4	461.5	1,313.2	1,284.7
Less: net income attributable to
Nonredeemable noncontrolling interests	12.5	14.2	8.6	29.7
Redeemable noncontrolling interests	36.3	0.9	33.1	0.4
Net Income Attributable to Franklin Resources, Inc.	$ 410.6	$ 446.4	$ 1,271.5	$ 1,254.6
Earnings per Share
Basic	$ 0.73	$ 0.77	$ 2.25	$ 2.12
Diluted	0.73	0.77	2.25	2.12
Dividends Declared per Share	$ 0.2	$ 0.18	$ 0.6	$ 0.54

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 459.4	$ 461.5	$ 1,313.2	$ 1,284.7
Other Comprehensive Income (Loss)
Net unrealized gains (losses) on investments, net of tax	(1.6)	(4.1)	1.4	(16.4)
Currency translation adjustments, net of tax	54.0	(30.8)	32.3	(22.7)
Net unrealized gains (losses) on defined benefit plans, net of tax	(0.2)	0.2	(0.2)	0.8
Total other comprehensive income (loss)	52.2	(34.7)	33.5	(38.3)
Total comprehensive income	511.6	426.8	1,346.7	1,246.4
Less: comprehensive income attributable to
Nonredeemable noncontrolling interests	12.5	14.2	8.6	29.7
Redeemable noncontrolling interests	36.3	0.9	33.1	0.4
Comprehensive Income Attributable to Franklin Resources, Inc.	$ 462.8	$ 411.7	$ 1,305.0	$ 1,216.3

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Assets
Cash and cash equivalents	$ 8,786.2	$ 8,483.3
Receivables	978.6	794.3
Investments	1,455.7	2,416.6
Investments, at fair value	469.9	1,437.6
Property and equipment, net	508.8	523.2
Goodwill and other intangible assets, net	2,228.0	2,211.3
Other	145.9	156.7
Total Assets	17,476.2	16,098.8
Liabilities
Compensation and benefits	359.8	357.4
Accounts payable and accrued expenses	275.0	233.3
Dividends	113.7	104.6
Commissions	313.0	302.0
Debt	1,374.7	1,401.2
Deferred taxes	156.5	161.5
Other	294.7	267.3
Total liabilities	2,940.5	3,509.5
Commitments and Contingencies (Note 9)
Redeemable Noncontrolling Interests	1,830.6	61.1
Stockholders' Equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; none issued	0.0	0.0
Common stock, $0.10 par value, 1,000,000,000 shares authorized; 557,960,048 and 570,345,156 shares issued and outstanding at June 30, 2017 and September 30, 2016	55.8	57.0
Retained earnings	12,665.2	12,226.2
Accumulated other comprehensive loss	(321.0)	(347.4)
Total Franklin Resources, Inc. stockholders’ equity	12,400.0	11,935.8
Nonredeemable noncontrolling interests	305.1	592.4
Total stockholders’ equity	12,705.1	12,528.2
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	17,476.2	16,098.8
Franklin Resources, Inc. [Member]
Assets
Cash and cash equivalents	8,564.8	8,247.1
Consolidated sponsored investment products [Member]
Assets
Cash and cash equivalents	221.4	236.2
Receivables	224.2	47.9
Investments, at fair value	3,373.0	1,513.4
Other	0.9	1.4
Total Assets	3,819.5	1,798.9
Liabilities
Accounts payable and accrued expenses	123.7	65.2
Debt	53.1	682.2
Other	8.0	8.5
Total liabilities	184.8	755.9
Redeemable Noncontrolling Interests	1,830.6	61.1
Stockholders' Equity
Total Franklin Resources, Inc. stockholders’ equity	1,525.3	414.1
Nonredeemable noncontrolling interests	278.8	567.8
Total stockholders’ equity	1,804.1	981.9
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$ 3,819.5	$ 1,798.9

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Investments, at fair value	$ 469.9	$ 1,437.6
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.1	$ 0.1
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	557,960,048	570,345,156
Common stock, shares outstanding	557,960,048	570,345,156

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net cash provided by operating activities
Net Income	$ 1,313.2	$ 1,284.7
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred sales commissions	52.9	57.8
Depreciation and other amortization	62.3	65.8
Impairment of intangible assets	4.6	28.2
Stock-based compensation	95.0	104.0
Excess tax benefit from stock-based compensation	(0.6)	(0.6)
Gains on sale of assets	(5.4)	(26.5)
Income from investments in equity method investees	(88.4)	(19.6)
Net (gains) losses on other investments of consolidated sponsored investment products	(15.7)	13.3
Deferred income taxes	(7.0)	(8.0)
Other	(17.1)	0.5
Changes in operating assets and liabilities:
Decrease (increase) in receivables, prepaid expenses and other	(84.7)	3.7
Decrease (increase) in trading securities, net	68.6	(106.1)
Increase in trading securities of consolidated sponsored investment products, net	(528.9)	(118.9)
Increase (decrease) in accrued compensation and benefits	2.0	(78.4)
Increase (decrease) in commissions payable	11.0	(52.4)
Increase in income taxes payable	68.8	24.5
Increase (decrease) in other liabilities	27.7	(6.6)
Net cash provided by operating activities	958.3	1,165.4
Net cash provided by investing activities
Purchase of investments	(336.2)	(309.0)
Liquidation of investments	271.3	330.5
Purchase of other investments by consolidated sponsored investment products	(114.3)	(238.4)
Liquidation of other investments by consolidated sponsored investment products	333.9	382.2
Additions of property and equipment, net	(49.0)	(61.4)
Adoption of new accounting guidance	(49.2)	0.0
Acquisition of business	(14.0)	0.0
Net consolidation (deconsolidation) of sponsored investment products	22.4	(11.9)
Net cash provided by investing activities	64.9	92.0
Net cash used in financing activities
Issuance of common stock	13.0	13.5
Dividends paid on common stock	(329.4)	(304.6)
Repurchase of common stock	(600.6)	(1,057.0)
Excess tax benefit from stock-based compensation	0.6	0.6
Proceeds from loan	0.0	93.4
Payment on loan	(22.5)	0.0
Proceeds from debt of consolidated sponsored investment products	0.7	30.5
Payments on debt by consolidated sponsored investment products	(288.3)	(127.0)
Payments on contingent consideration liabilities	(31.7)	(3.2)
Noncontrolling interests	527.4	(21.9)
Net cash used in financing activities	(730.8)	(1,375.7)
Effect of exchange rate changes on cash and cash equivalents	10.5	(7.7)
Increase (decrease) in cash and cash equivalents	302.9	(126.0)
Cash and cash equivalents, beginning of period	8,483.3	8,368.1
Cash and Cash Equivalents, End of Period	8,786.2	8,242.1
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes	520.5	560.3
Cash paid for interest	34.4	33.0
Cash paid for interest by consolidated sponsored investment products	$ 10.3	$ 20.6

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Basis of Presentation

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited interim financial statements of Franklin Resources, Inc. and its consolidated subsidiaries (collectively, the “Company”) included herein have been prepared by the Company in accordance with the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission. Under these rules and regulations, some information and footnote disclosures normally included in financial statements prepared under accounting principles generally accepted in the United States of America have been shortened or omitted. Management believes that all adjustments necessary for a fair statement of the financial position and the results of operations for the periods shown have been made. All adjustments are normal and recurring. These financial statements should be read together with the Company’s audited financial statements included in its Form 10-K for the fiscal year ended September 30, 2016 (“fiscal year 2016”). Certain comparative amounts for the prior fiscal year period have been reclassified to conform to the financial statement presentation as of and for the period ended June 30, 2017.

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New Accounting Guidance

9 Months Ended

Jun. 30, 2017

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Guidance

New Accounting Guidance

Recently Adopted Accounting Guidance

On October 1, 2016, the Company adopted an amendment to the consolidation guidance issued by the Financial Accounting Standards Board (“FASB”) using the modified retrospective approach which did not require the restatement of prior year periods. The amendment modifies the consolidation framework for certain investment entities and all limited partnerships. It also eliminates certain criteria used to determine whether fees paid to a decision maker are a variable interest and results in a lower consolidation threshold for variable interest entities (“VIEs”). The adoption caused the consolidation of 24 sponsored investment products (“SIPs”) that changed from voting interest entities (“VOEs”) to VIEs and three other SIPs that are VIEs. In addition, two collateralized loan obligations (“CLOs”) for which the Company was previously the primary beneficiary and five limited partnerships were deconsolidated. The adoption resulted in net increases in total assets, redeemable noncontrolling interests and retained earnings of $180.9 million, $824.7 million and $5.8 million, and net decreases in total liabilities, nonredeemable noncontrolling interests and other equity of $317.9 million, $324.6 million and $7.1 million as of October 1, 2016.

Accounting Guidance Not Yet Adopted

The FASB issued an amendment to the existing stock-based compensation guidance in March 2016. The amendment requires all income tax effects of stock-based awards to be recognized as income tax expense when the awards vest or settle and clarifies the classification of these transactions within the statement of cash flows. The amendment also provides an election to account for forfeitures as they occur, which the Company expects to take. The amendment is effective for the Company on October 1, 2017 and requires varying transition approaches for the different changes to the guidance. The Company expects the adoption to increase the volatility of income tax expense as a result of fluctuations in its stock price.

The FASB issued new guidance in May 2014 that requires use of a single principles-based model for recognition of revenue from contracts with customers. The core principle of the model is that revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration to be received for the goods or services. The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements. The guidance is effective for the Company on October 1, 2018 and allows for either a full retrospective or modified approach at adoption. While the Company’s implementation efforts are ongoing, it does not expect adoption of the guidance to have a significant impact on the timing of recognition for the majority of its operating revenue. The Company is evaluating certain costs to determine if they should be capitalized or expensed based on the criteria in the guidance for costs to obtain or fulfill a contract. Additionally, it is assessing certain arrangements to determine whether it continues to act as a principal and present the related revenue gross of associated expenses. The overall impact upon adoption may differ based on further evaluation and additional facts and circumstances identified during implementation. The Company has not yet determined its transition approach.

The FASB issued an amendment to the existing financial instruments guidance in January 2016. The amendment requires substantially all equity investments in nonconsolidated entities to be measured at fair value with changes recognized in earnings, except for those accounted for using the equity method of accounting, which will impact all equity securities currently classified as available-for-sale. The amendment also provides an election to measure equity investments that do not have a readily determinable fair value at cost less impairment, if any, which the Company expects to take. The amendment is effective for the Company on October 1, 2018 and requires a cumulative effect adjustment to retained earnings at adoption. The Company does not expect the adoption to have a material impact on its consolidated financial statements; however, this could be affected by market volatility as well as additional facts and circumstances identified during implementation.

There were no other significant updates to the new accounting guidance not yet adopted by the Company as disclosed in its Form 10-K for fiscal year 2016.

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Stockholders' Equity

9 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholders’ Equity

Stockholders’ Equity

Changes in total stockholders’ equity were as follows:

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	11,935.8		$	592.4		$	12,528.2
Adoption of new accounting guidance	(1.3		)	(324.6		)	(325.9		)
Net income	1,271.5			8.6			1,280.1
Other comprehensive income	33.5						33.5
Cash dividends declared on common stock	(338.5		)				(338.5		)
Repurchase of common stock	(603.1		)				(603.1		)
Stock-based compensation	102.1						102.1
Net subscriptions and other				38.0			38.0
Deconsolidation of sponsored investment product				(9.3		)	(9.3		)
Balance at June 30, 2017	$	12,400.0		$	305.1		$	12,705.1

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	11,841.0		$	654.8		$	12,495.8
Net income	1,254.6			29.7			1,284.3
Other comprehensive loss	(38.3		)				(38.3		)
Cash dividends declared on common stock	(317.6		)				(317.6		)
Repurchase of common stock	(1,068.1		)				(1,068.1		)
Stock-based compensation	110.5						110.5
Net distributions and other				(95.1		)	(95.1		)
Balance at June 30, 2016	$	11,782.1		$	589.4		$	12,371.5

During the three and nine months ended June 30, 2017, the Company repurchased 4.1 million and 15.2 million shares of its common stock at a cost of $174.6 million and $603.1 million under its stock repurchase program. At June 30, 2017, 35.5 million shares remained available for repurchase under the program, which is not subject to an expiration date. During the three and nine months ended June 30, 2016, the Company repurchased 9.3 million and 29.4 million shares of its common stock at a cost of $326.7 million and $1,068.1 million.

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Earnings per Share

9 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The components of basic and diluted earnings per share were as follows:

(in millions, except per share data)	Three Months Ended June 30,				Nine Months Ended June 30,
	2017		2016		2017		2016
Net income attributable to Franklin Resources, Inc.	$	410.6	$	446.4	$	1,271.5	$	1,254.6
Less: allocation of earnings to participating nonvested stock and stock unit awards	3.5		3.2		9.9		8.5
Net Income Available to Common Stockholders	$	407.1	$	443.2	$	1,261.6	$	1,246.1
Weighted-average shares outstanding – basic	556.2		578.9		560.5		587.9
Dilutive effect of nonparticipating nonvested stock unit awards	0.5		—		0.3		—
Weighted-Average Shares Outstanding – Diluted	556.7		578.9		560.8		587.9
Earnings per Share
Basic	$	0.73	$	0.77	$	2.25	$	2.12
Diluted	0.73		0.77		2.25		2.12

Nonparticipating nonvested stock unit awards excluded from the calculation of diluted earnings per share because their effect would have been antidilutive were 0.2 million and 0.7 million for the three and nine months ended June 30, 2017, and 1.3 million for both the three and nine months ended June 30, 2016.

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Investments

9 Months Ended

Jun. 30, 2017

Investments [Abstract]

Investments

Investments

The disclosures below include details of the Company’s investments, excluding those of consolidated SIPs. See Note 7–Consolidated Sponsored Investment Products for information related to the investments held by these entities.

Investments consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading
SIPs	$	91.2	$	844.4
Debt and other equity securities	286.6		277.5
Total investment securities, trading	377.8		1,121.9
Investment securities, available-for-sale
SIPs	77.1		297.7
Debt and other equity securities	1.7		3.7
Total investment securities, available-for-sale	78.8		301.4
Investments in equity method investees	878.4		797.4
Other investments	120.7		195.9
Total	$	1,455.7	$	2,416.6

Debt and other equity trading securities consist primarily of corporate debt.

Investment securities with aggregate carrying amounts of $38.7 million and $117.3 million were pledged as collateral at June 30, 2017 and September 30, 2016.

Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows:

(in millions)			Gross Unrealized
	Cost Basis		Gains		Losses			Fair Value
as of June 30, 2017
SIPs	$	74.9	$	8.3	$	(6.1	)	$	77.1
Debt and other equity securities	1.6		0.1		—			1.7
Total	$	76.5	$	8.4	$	(6.1	)	$	78.8
as of September 30, 2016
SIPs	$	289.6	$	13.7	$	(5.6	)	$	297.7
Debt and other equity securities	3.6		0.1		—			3.7
Total	$	293.2	$	13.8	$	(5.6	)	$	301.4

Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Greater					Total
(in millions)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
as of June 30, 2017
SIPs	$	23.0	$	(5.8	)	$	3.8	$	(0.3	)	$	26.8	$	(6.1	)
as of September 30, 2016
SIPs	$	75.8	$	(4.3	)	$	18.0	$	(1.3	)	$	93.8	$	(5.6	)

The Company recognized $0.5 million and $0.8 million of other-than-temporary impairment during the three and nine months ended June 30, 2017. During the three and nine months ended June 30, 2016, the Company recognized other-than-temporary impairment of $2.2 million and $7.0 million. The amount for the three-month period was all related to available-for-sale SIPs and the amount for the nine-month period included $5.9 million related to available-for-sale SIPs.

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Fair Value Measurements

9 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The disclosures below include details of the Company’s fair value measurements, excluding those of consolidated SIPs. See Note 7 – Consolidated Sponsored Investment Products for information related to fair value measurements of the assets and liabilities of these entities.

The assets and liability measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		Total
as of June 30, 2017
Assets
Investment securities, trading
SIPs	$	91.2	$	—	$	—	$	91.2
Debt and other equity securities	6.7		78.7		201.2		286.6
Investment securities, available-for-sale
SIPs	77.1		—		—		77.1
Debt and other equity securities	0.8		0.6		0.3		1.7
Life settlement contracts	—		—		13.3		13.3
Total Assets Measured at Fair Value	$	175.8	$	79.3	$	214.8	$	469.9
Liability
Contingent consideration liability	$	—	$	—	$	54.8	$	54.8

(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2016
Assets
Investment securities, trading
SIPs	$	844.4	$	—	$	—	$	844.4
Debt and other equity securities	2.6		84.1		190.8		277.5
Investment securities, available-for-sale
SIPs	297.7		—		—		297.7
Debt and other equity securities	1.6		2.1		—		3.7
Life settlement contracts	—		—		14.3		14.3
Total Assets Measured at Fair Value	$	1,146.3	$	86.2	$	205.1	$	1,437.6
Liability
Contingent consideration liability	$	—	$	—	$	98.1	$	98.1

The fair values of all SIPs and certain other equity securities are determined based on their published net asset values and they are classified as Level 1. The fair values of certain debt and other equity securities are determined using quoted market prices, if available, or independent third-party broker or dealer price quotes, which are evaluated for reasonableness, and they are classified as Level 2. The fair values of other debt securities and all life settlement contracts are determined using discounted cash flow valuation techniques, except for the fair value of certain debt securities which was determined using market pricing as of June 30, 2017; both techniques use significant unobservable inputs and the assets are classified as Level 3.

The fair value of the contingent consideration liability, which is classified as Level 3, is determined using an income-based method which considers the net present value of anticipated future cash flows.

There were no transfers between Level 1 and Level 2, or into Level 3, during the nine months ended June 30, 2017 and 2016.

Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the three months ended June 30,
Balance at beginning of period	$	211.0		$	(60.4	)	$	211.1		$	(96.2	)
Total realized and unrealized gains (losses)
Included in investment and other income, net	1.7			—			11.9			—
Included in general, administrative and other expense	—			5.6			—			(1.2		)
Purchases	1.3			—			3.4			—
Settlements	(0.1		)	—			—			0.5
Foreign exchange revaluation	0.9			—			(3.5		)	—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	$	2.2		$	(0.1	)	$	11.9		$	(1.2	)

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the nine months ended June 30,
Balance at beginning of period	$	205.1		$	(98.1	)	$	20.7		$	(102.9	)
Acquisition	—			(5.7		)	—			—
Total realized and unrealized gains
Included in investment and other income, net	7.3			—			13.4			—
Included in general, administrative and other expense	—			13.6			—			2.2
Purchases	2.1			—			189.9			—
Sales	(2.4		)	—			—			—
Settlements	(2.6		)	35.4			(1.7		)	3.8
Transfers out of Level 3	(0.4		)	—			—			—
Foreign exchange revaluation	5.7			—			0.6			—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains included in net income relating to assets and liability held at end of period	$	6.2		$	7.9		$	12.7		$	2.2

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	193.2	Market pricing	Indicative bid	$73 per $100 of par
				Discount rate	18.4%
	8.0		Discounted cash flow	Discount rate	6.6%–6.7% (6.6%)
				Risk premium	2.0%–2.5% (2.2%)
Life settlement contracts	13.3		Discounted cash flow	Life expectancy	20–125 months (62)
				Discount rate	8.0%–20.0% (13.2%)
Contingent consideration liability	54.8		Discounted cash flow	AUM growth rate	1.4%–4.9% (3.1%)
				EBITDA margin	8.3%–8.5% (8.4%)
				Discount rate	14.0%

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	190.8	Discounted cash flow	Discount rate	3.6%–6.9% (6.7%)
				Risk premium	2.0%–17.9% (16.5%)
				Liquidity discount	0.0%–10.0% (9.6%)
Life settlement contracts	14.3		Discounted cash flow	Life expectancy	20–132 months (65)
				Discount rate	3.3%–18.0% (11.5%)
Contingent consideration liability	98.1		Discounted cash flow	AUM growth rate	2.4%–11.5% (5.9%)
				EBITDA margin	14.3%
				Discount rate	13.2%

For investment securities, trading – debt and other equity securities using the market pricing technique, a significant increase (decrease) in the indicative bid in isolation would result in a significantly higher (lower) fair value measurement, while a significant increase (decrease) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement.

For investment securities, trading – debt and other equity securities using the discounted cash flow technique, a significant increase (decrease) in the discount rate, risk premium or liquidity discount in isolation would result in a significantly lower (higher) fair value measurement.

For life settlement contracts, a significant increase (decrease) in the life expectancy or the discount rate in isolation would result in a significantly lower (higher) fair value measurement.

For the contingent consideration liability, a significant increase (decrease) in the assets under management (“AUM”) growth rate or EBITDA margin, or decrease (increase) in the discount rate, in isolation would result in a significantly higher (lower) fair value measurement.

Financial instruments that were not measured at fair value were as follows:

(in millions)		June 30, 2017				September 30, 2016
	Fair Value Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	8,564.8	$	8,564.8	$	8,247.1	$	8,247.1
Other investments
Time deposits	2	52.8		52.8		131.6		131.6
Cost method investments	3	54.6		73.9		50.0		61.3
Financial Liabilities
Debt
Senior notes	2	1,343.8		1,373.8		1,348.5		1,412.5
Loan	2	30.9		30.9		52.7		52.7

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Consolidated Sponsored Investment Products

9 Months Ended

Jun. 30, 2017

Consolidated Sponsored Investment Products [Abstract]

Consolidated Sponsored Investment Products

Consolidated Sponsored Investment Products

The Company consolidates SIPs, which consist of both VOEs and VIEs, when it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a VOE or when it is the primary beneficiary of a VIE. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or they do not have defined rights and obligations normally associated with an equity investment. The Company’s VIEs are all investment entities, and its variable interests consist of its equity ownership interest in and certain investment management fees earned from these entities.

The Company adopted new accounting guidance on October 1, 2016 that modifies the consolidation framework for certain investment entities and all limited partnerships. As a result of the modifications, certain SIPs changed from VOEs to VIEs and became subject to a lower threshold for consolidation. Additionally, there is now a single model to determine whether the Company is the primary beneficiary of a VIE. The Company is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of AUM, investment management fee rates, the life of the investment product, prepayment rates and the discount rate. The new guidance did not change the consolidation framework for VOEs.

Consolidated SIPs consist of mutual and other investment funds, limited partnerships and similar structures and CLOs, which are asset-backed financing entities collateralized by a pool of corporate debt securities. The Company consolidated 59 SIPs, none of which are CLOs, as of June 30, 2017 and 40 SIPs, including three CLOs, as of September 30, 2016. The CLO consolidated as of March 31, 2017 was fully liquidated as of June 30, 2017. Amounts for prior periods have been reclassified to combine amounts previously presented separately as consolidated SIPs and consolidated VIEs.

The balances of consolidated SIPs included in the Company’s condensed consolidated balance sheets were as follows:

(in millions)	June 30, 2017		September 30, 2016
Assets
Cash and cash equivalents	$	221.4	$	236.2
Receivables	224.2		47.9
Investments, at fair value	3,373.0		1,513.4
Other assets	0.9		1.4
Total Assets	$	3,819.5	$	1,798.9
Liabilities
Accounts payable and accrued expenses	$	123.7	$	65.2
Debt	53.1		682.2
Other liabilities	8.0		8.5
Total liabilities	184.8		755.9
Redeemable Noncontrolling Interests	1,830.6		61.1
Stockholders’ Equity
Franklin Resources, Inc.’s interests	1,525.3		414.1
Nonredeemable noncontrolling interests	278.8		567.8
Total stockholders’ equity	1,804.1		981.9
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	3,819.5	$	1,798.9

The consolidated SIPs did not have a significant impact on net income attributable to the Company during the three and nine months ended June 30, 2017 and 2016.

The Company has no right to the consolidated SIPs’ assets, other than its direct equity investments in them and investment management fees earned from them. The debt holders of the consolidated SIPs have no recourse to the Company’s assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the SIPs’ liabilities.

SIPs are typically consolidated when the Company makes an initial investment in a newly launched investment entity. They are typically deconsolidated when the Company no longer has a controlling financial interest due to redemptions of its investment or increases in third-party investments. The Company’s investments in SIPs subsequent to deconsolidation are accounted for as trading or available-for-sale investment securities, or equity method or cost method investments depending on the structure of the SIP and the Company’s role and level of ownership.

Investments

Investments of consolidated SIPs consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading	$	2,936.5	$	287.8
Other equity securities	291.4		607.3
Other debt securities	145.1		618.3
Total	$	3,373.0	$	1,513.4

Investment securities, trading consist of debt and equity securities that are traded in active markets. Other equity securities consist of equity securities of entities in emerging markets and fund products. Other debt securities consist of debt securities of entities in emerging markets and also included corporate debt securities held by CLOs at September 30, 2016.

Investments in fund products for which fair value was estimated using reported net asset value (“NAV”) as a practical expedient were as follows:

(in millions)	Redemption Frequency	June 30, 2017		September 30, 2016
Real estate and private equity funds	Nonredeemable	$	155.4	$	444.2
Hedge funds	Monthly, quarterly or triennially	—		1.8
Total		$	155.4	$	446.0

The investments in real estate and private equity funds are expected to be returned through distributions as a result of liquidations of the funds’ underlying assets over a weighted-average period of 4.7 years and 3.2 years at June 30, 2017 and September 30, 2016. The consolidated SIPs’ unfunded commitments to these funds totaled $1.1 million and $74.4 million at June 30, 2017 and September 30, 2016, of which the Company was contractually obligated to fund $0.1 million and $2.2 million based on its ownership percentage in the SIPs.

Fair Value Measurements

Assets and liabilities of consolidated SIPs measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of June 30, 2017
Assets
Investments
Equity securities	$	333.2	$	111.7	$	137.0	$	155.4	$	737.3
Debt securities	2.2		2,488.2		145.3		—		2,635.7
Total Assets Measured at Fair Value	$	335.4	$	2,599.9	$	282.3	$	155.4	$	3,373.0
Liabilities
Other liabilities	$	0.2	$	7.8	$	—	$	—	$	8.0

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of September 30, 2016
Assets
Cash and cash equivalents of CLOs	$	146.4	$	—	$	—	$	—	$	146.4
Receivables of CLOs	—		23.6		—		—		23.6
Investments
Equity securities	155.4		0.5		160.3		446.0		762.2
Debt securities	—		618.9		132.3		—		751.2
Total Assets Measured at Fair Value	$	301.8	$	643.0	$	292.6	$	446.0	$	1,683.4
Liabilities
Other liabilities	$	0.1	$	8.4	$	—	$	—	$	8.5

Investments in fund products for which fair value was estimated using NAV as a practical expedient are not classified in the fair value hierarchy. There were no transfers between Level 1 and Level 2, or into or out of Level 3, during the nine months ended June 30, 2017 and 2016.

Changes in Level 3 assets measured at fair value on a recurring basis were as follows:

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the three months ended June 30,
Balance at beginning of period	$	140.7		$	114.4		$	255.1		$	166.8		$	125.4		$	292.2
Realized and unrealized gains (losses) included in investment and other income, net	(10.3		)	18.3			8.0			(3.3		)	(6.3		)	(9.6		)
Purchases	4.7			15.5			20.2			—			2.6			2.6
Sales	(0.5		)	(4.7		)	(5.2		)	(3.8		)	(2.0		)	(5.8		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	2.4			2.4			4.8			(0.3		)	(1.2		)	(1.5		)
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	(10.3	)	$	18.2		$	7.9		$	(3.0	)	$	(6.5	)	$	(9.5	)

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the nine months ended June 30,
Balance at beginning of period	$	160.3		$	132.3		$	292.6		$	191.6		$	130.2		$	321.8
Adoption of new accounting guidance	(45.4		)	(0.5		)	(45.9		)	—			—			—
Realized and unrealized gains (losses) included in investment and other income, net	(9.4		)	3.8			(5.6		)	1.7			(8.2		)	(6.5		)
Purchases	30.2			23.3			53.5			0.3			12.1			12.4
Sales	(0.6		)	(13.0		)	(13.6		)	(33.9		)	(16.1		)	(50.0		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	1.9			—			1.9			(0.3		)	0.5			0.2
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	0.7		$	3.2		$	3.9		$	(0.3	)	$	(9.4	)	$	(9.7	)

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	99.8	Market comparable companies	EBITDA multiple	6.0–12.3 (9.9)
	22.8		Discounted cash flow	Discount rate	5.7%–19.8% (15.0%)
	14.4		Market pricing	Price to earnings ratio	10.0
Debt securities	130.2		Discounted cash flow	Discount rate	5.0%–50.0% (13.4%)
				Risk premium	0.0%–25.0% (8.1%)
	15.1		Market pricing	Private sale pricing	$57 per $100 of par

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	113.1	Market comparable companies	EBITDA multiple	5.0–14.2 (10.3)
				Discount for lack of marketability	25.0%–50.0% (36.6%)
	24.3		Discounted cash flow	Discount rate	5.0%–19.0% (13.7%)
	22.9		Market pricing	Price to book value ratio	1.8–2.3 (2.0)
Debt securities	119.7		Discounted cash flow	Discount rate	6.0%–15.0% (10.4%)
				Risk premium	0.0%–28.0% (9.7%)
				EBITDA multiple	5.5
	12.6		Market pricing	Private sale pricing	$57 per $100 of par

Following are descriptions of the sensitivity of the Level 3 recurring fair value measurements to changes in the significant unobservable inputs presented in the above tables.

For securities utilizing the market comparable companies valuation technique, a significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount for lack of marketability in isolation would result in a significantly lower (higher) fair value measurement. The discount for lack of marketability used to determine fair value may include other factors such as liquidity or credit risk.

For securities utilizing the discounted cash flow valuation technique, a significant increase (decrease) in the discount rate or risk premium in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the discount rate is accompanied by a directionally similar change in the risk premium. A significant increase (decrease) in the EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement.

For securities utilizing a market pricing valuation technique, a significant increase (decrease) in the price to earnings ratio, private sale pricing or price to book value ratio would result in a significantly higher (lower) fair value measurement.

Financial instruments of consolidated SIPs that were not measured at fair value were as follows:

(in millions)	Fair Value Level	June 30, 2017				September 30, 2016
		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	221.4	$	221.4	$	89.8	$	89.8
Financial Liabilities
Debt, excluding CLOs	3	53.1		53.0		75.0		74.6
Debt of CLOs1	2 or 3	—		—		607.2		594.5

_________________

¹    Substantially all was Level 2.

Debt

Debt of consolidated SIPs consisted of the following:

	June 30, 2017			September 30, 2016
(in millions)	Amount		Weighted- Average Effective Interest Rate	Amount		Weighted- Average Effective Interest Rate
Debt, excluding CLOs	$	53.1	5.80%	$	75.0	4.79%
Debt of CLOs	—		N/A	607.2		2.24%
Total	$	53.1		$	682.2

The debt, excluding CLOs had fixed and floating interest rates ranging from 2.36% to 6.69% at June 30, 2017, and from 2.36% to 6.19% at September 30, 2016. The debt maturities ranged from fiscal years 2018 to 2019 at June 30, 2017 and fiscal years 2017 to 2019 at September 30, 2016.

At June 30, 2017, maturities for debt of consolidated SIPs were as follows:

(in millions)	Carrying Amount
for the fiscal years ending September 30,
2017	$	—
2018	5.6
2019	47.5
Total	$	53.1

Redeemable Noncontrolling Interests

Changes in redeemable noncontrolling interests of consolidated SIPs were as follows:

(in millions)
for the nine months ended June 30,	2017		2016
Balance at beginning of period	$	61.1	$	59.6
Adoption of new accounting guidance	824.7		—
Net income	33.1		0.4
Net subscriptions and other	489.4		73.2
Net consolidations (deconsolidations)	422.3		(93.8		)
Balance at End of Period	$	1,830.6	$	39.4

Collateralized Loan Obligations

The Company recognized net gains of $4.6 million and $4.8 million during the three and nine months ended June 30, 2017, and $2.2 million and $3.0 million during the three and nine months ended June 30, 2016 related to its own economic interests in the CLOs.

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Nonconsolidated Variable Interest Entities

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nonconsolidated Variable Interest Entities

Nonconsolidated Variable Interest Entities

VIEs for which the Company is not the primary beneficiary consist of SIPs and other investment products in which the Company has an equity ownership interest. The Company’s maximum exposure to loss from these VIEs consists of equity investments and investment management fee receivables as follows:

(in millions)	June 30, 2017		September 30, 2016
Investments	$	167.5	$	77.3
Receivables	145.8		21.4
Total	$	313.3	$	98.7

While the Company has no contractual obligation to do so, it routinely makes cash investments in the course of launching SIPs. The Company also may voluntarily elect to provide its SIPs with additional direct or indirect financial support based on its business objectives. The Company did not provide financial or other support to its SIPs during the nine months ended June 30, 2017. During the nine months ended June 30, 2016, the Company purchased $182.7 million of certain debt securities from six SIPs domiciled in India in order to provide additional liquidity to the SIPs. None of the purchases occurred during the three months ended June 30, 2016.

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Commitments and Contingencies

9 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

On July 28, 2016, a former employee filed a putative class action lawsuit captioned Cryer v. Franklin Resources, Inc., et al. in the United States District Court for the Northern District of California against Franklin, the Franklin Templeton 401(k) Retirement Plan (“Plan”) Investment Committee, and unnamed Investment Committee members. The plaintiff asserts a claim for breach of fiduciary duty under the Employee Retirement Income Security Act, alleging that the defendants selected mutual funds sponsored and managed by the Company (the “Funds”) as investment options for the Plan when allegedly lower-cost and better performing non-proprietary investment vehicles were available. The plaintiff also claims that the total Plan costs, inclusive of investment management and administrative fees, are excessive. The plaintiff alleges that Plan losses exceed $79.0 million and seeks, among other things, damages, disgorgement, rescission of the Plan’s investments in the Funds, attorneys’ fees and costs, and pre- and post-judgment interest. Franklin’s motion to dismiss and motion for summary adjudication were denied on January 17, 2017. On July 26, 2017, the court certified a class of Plan participants. Management strongly believes that the claims made in the lawsuit are without merit and Franklin is defending against them vigorously. Discovery is continuing and, at this stage of the litigation, Franklin cannot currently predict the eventual outcome of the lawsuit or whether it will have a material negative impact on the Company, or reasonably estimate the possible loss or range of loss that may arise from any negative outcome.

The Company is from time to time involved in other litigation relating to claims arising in the normal course of business. Management is of the opinion that the ultimate resolution of such claims will not materially affect the Company’s business, financial position, results of operations or liquidity. In management’s opinion, an adequate accrual has been made as of June 30, 2017 to provide for any probable losses that may arise from such matters for which the Company could reasonably estimate an amount.

Other Commitments and Contingencies

At June 30, 2017, there were no material changes in the other commitments and contingencies as reported in the Company’s Form 10-K for fiscal year 2016.

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Stock-Based Compensation

9 Months Ended

Jun. 30, 2017

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock awards generally entitle holders to the right to sell the underlying shares of the Company’s common stock once the awards vest. Stock unit awards generally entitle holders to receive the underlying shares of common stock once the awards vest. Awards generally vest based on the passage of time or the achievement of predetermined Company financial performance goals. In the event a performance measure is not achieved at or above a specified threshold level, the portion of the award tied to such performance measure is forfeited.

Stock and stock unit award activity was as follows:

(shares in thousands)	Time-Based Shares		Performance- Based Shares		Total Shares		Weighted-Average Grant-Date Fair Value
for the nine months ended June 30, 2017
Nonvested balance at October 1, 2016	2,369		1,288		3,657		$	45.67
Granted	2,706		1,110		3,816		34.13
Vested	(45	)	(355	)	(400	)	49.30
Forfeited/canceled	(205	)	(294	)	(499	)	43.23
Nonvested Balance at June 30, 2017	4,825		1,749		6,574		$	38.94

Total unrecognized compensation expense related to nonvested stock and stock unit awards, net of estimated forfeitures, was $144.9 million at June 30, 2017. This expense is expected to be recognized over a remaining weighted-average vesting period of 1.7 years.

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Other Income (Expenses)

9 Months Ended

Jun. 30, 2017

Other Income and Expenses [Abstract]

Other Income (Expenses)

Other Income (Expenses)

Other income (expenses) consisted of the following:

	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions)	2017			2016			2017			2016
Investment and Other Income, Net
Dividend income	$	3.3		$	6.0		$	8.4		$	15.2
Interest income	20.3			12.3			49.9			23.0
Gains on trading investment securities, net	1.1			35.4			11.5			49.8
Realized gains on sale of investment securities, available-for-sale	2.6			2.2			5.5			29.5
Realized losses on sale of investment securities, available-for-sale	(0.4		)	(0.9		)	(1.6		)	(2.7		)
Income from investments in equity method investees	17.9			11.4			88.4			19.6
Other-than-temporary impairment of investments	(0.5		)	(2.2		)	(0.8		)	(7.0		)
Gains (losses) on investments of consolidated SIPs, net	59.8			(0.6		)	52.6			(12.7		)
Foreign currency exchange gains (losses), net	(19.2		)	10.4			(5.6		)	0.7
Other, net	7.3			(8.2		)	14.6			(1.7		)
Total	92.2			65.8			222.9			113.7
Interest Expense	(12.9		)	(12.3		)	(38.8		)	(36.5		)
Other Income, Net	$	79.3		$	53.5		$	184.1		$	77.2

Substantially all of the Company’s dividend income and realized gains and losses on sale of available-for-sale securities were generated by investments in its nonconsolidated SIPs. Interest income was primarily generated by cash equivalents and trading investment securities. Proceeds from the sale of available-for-sale securities were $2.5 million and $28.3 million for the three and nine months ended June 30, 2017, and $27.7 million and $253.7 million for the three and nine months ended June 30, 2016.

Net gains recognized on the Company’s trading investment securities that were held at June 30, 2017 and 2016 were $1.3 million and $3.8 million for the three and nine months ended June 30, 2017, and $26.8 million and $37.0 million for the three and nine months ended June 30, 2016. Net gains recognized on trading investment securities of consolidated SIPs that were held at June 30, 2017 and 2016 were $19.9 million and $25.8 million for the three and nine months ended June 30, 2017 and $2.5 million and $4.7 million for the three and nine months ended June 30, 2016.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Jun. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component were as follows:

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2017
Balance at April 1, 2017	$	3.0		$	(368.1	)	$	(8.1	)	$	(373.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(0.1		)	54.0			(0.2		)	53.7
Reclassifications to net investment and other income, net of tax	(1.5		)	—			—			(1.5		)
Total other comprehensive income (loss)	(1.6		)	54.0			(0.2		)	52.2
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	6.8		$	(346.1	)	$	(8.1	)	$	(347.4	)
Adoption of new accounting guidance	(6.8		)	(0.3		)	—			(7.1		)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	3.9			32.3			(0.2		)	36.0
Reclassifications to net investment and other income, net of tax	(2.5		)	—			—			(2.5		)
Total other comprehensive income (loss)	1.4			32.3			(0.2		)	33.5
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2016
Balance at April 1, 2016	$	7.0		$	(319.7	)	$	(5.1	)	$	(317.8	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(4.9		)	(30.8		)	0.2			(35.5		)
Reclassifications to net investment and other income, net of tax	0.8			—			—			0.8
Total other comprehensive income (loss)	(4.1		)	(30.8		)	0.2			(34.7		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	19.3		$	(327.8	)	$	(5.7	)	$	(314.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(2.4		)	(22.7		)	0.8			(24.3		)
Reclassifications to net investment and other income, net of tax	(14.0		)	—			—			(14.0		)
Total other comprehensive income (loss)	(16.4		)	(22.7		)	0.8			(38.3		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

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Fair Value Measurements Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Fair Value Measurements

The fair values of all SIPs and certain other equity securities are determined based on their published net asset values and they are classified as Level 1. The fair values of certain debt and other equity securities are determined using quoted market prices, if available, or independent third-party broker or dealer price quotes, which are evaluated for reasonableness, and they are classified as Level 2. The fair values of other debt securities and all life settlement contracts are determined using discounted cash flow valuation techniques, except for the fair value of certain debt securities which was determined using market pricing as of June 30, 2017; both techniques use significant unobservable inputs and the assets are classified as Level 3.

The fair value of the contingent consideration liability, which is classified as Level 3, is determined using an income-based method which considers the net present value of anticipated future cash flows.

Consolidation

The Company consolidates SIPs, which consist of both VOEs and VIEs, when it has a controlling financial interest. The Company has a controlling financial interest when it owns a majority of the voting interest in a VOE or when it is the primary beneficiary of a VIE. A VIE is an entity in which the equity investment holders have not contributed sufficient capital to finance its activities or they do not have defined rights and obligations normally associated with an equity investment. The Company’s VIEs are all investment entities, and its variable interests consist of its equity ownership interest in and certain investment management fees earned from these entities.

The Company adopted new accounting guidance on October 1, 2016 that modifies the consolidation framework for certain investment entities and all limited partnerships. As a result of the modifications, certain SIPs changed from VOEs to VIEs and became subject to a lower threshold for consolidation. Additionally, there is now a single model to determine whether the Company is the primary beneficiary of a VIE. The Company is the primary beneficiary if it has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or right to receive benefits from the VIE that could potentially be significant to the VIE. Investment management fees earned from VIEs are excluded from the primary beneficiary determination if they are deemed to be at market and commensurate with service. The key estimates and assumptions used in the analyses include the amount of AUM, investment management fee rates, the life of the investment product, prepayment rates and the discount rate. The new guidance did not change the consolidation framework for VOEs.

Consolidated SIPs consist of mutual and other investment funds, limited partnerships and similar structures and CLOs, which are asset-backed financing entities collateralized by a pool of corporate debt securities. The Company consolidated 59 SIPs, none of which are CLOs, as of June 30, 2017 and 40 SIPs, including three CLOs, as of September 30, 2016. The CLO consolidated as of March 31, 2017 was fully liquidated as of June 30, 2017. Amounts for prior periods have been reclassified to combine amounts previously presented separately as consolidated SIPs and consolidated VIEs.

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Stockholders' Equity (Tables)

9 Months Ended

Jun. 30, 2017

Stockholders' Equity Note [Abstract]

Changes in total stockholders' equity

Changes in total stockholders’ equity were as follows:

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	11,935.8		$	592.4		$	12,528.2
Adoption of new accounting guidance	(1.3		)	(324.6		)	(325.9		)
Net income	1,271.5			8.6			1,280.1
Other comprehensive income	33.5						33.5
Cash dividends declared on common stock	(338.5		)				(338.5		)
Repurchase of common stock	(603.1		)				(603.1		)
Stock-based compensation	102.1						102.1
Net subscriptions and other				38.0			38.0
Deconsolidation of sponsored investment product				(9.3		)	(9.3		)
Balance at June 30, 2017	$	12,400.0		$	305.1		$	12,705.1

(in millions)	Franklin Resources, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total Stockholders’ Equity
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	11,841.0		$	654.8		$	12,495.8
Net income	1,254.6			29.7			1,284.3
Other comprehensive loss	(38.3		)				(38.3		)
Cash dividends declared on common stock	(317.6		)				(317.6		)
Repurchase of common stock	(1,068.1		)				(1,068.1		)
Stock-based compensation	110.5						110.5
Net distributions and other				(95.1		)	(95.1		)
Balance at June 30, 2016	$	11,782.1		$	589.4		$	12,371.5

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Earnings per Share (Tables)

9 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Components of basic and diluted earnings per share

The components of basic and diluted earnings per share were as follows:

(in millions, except per share data)	Three Months Ended June 30,				Nine Months Ended June 30,
	2017		2016		2017		2016
Net income attributable to Franklin Resources, Inc.	$	410.6	$	446.4	$	1,271.5	$	1,254.6
Less: allocation of earnings to participating nonvested stock and stock unit awards	3.5		3.2		9.9		8.5
Net Income Available to Common Stockholders	$	407.1	$	443.2	$	1,261.6	$	1,246.1
Weighted-average shares outstanding – basic	556.2		578.9		560.5		587.9
Dilutive effect of nonparticipating nonvested stock unit awards	0.5		—		0.3		—
Weighted-Average Shares Outstanding – Diluted	556.7		578.9		560.8		587.9
Earnings per Share
Basic	$	0.73	$	0.77	$	2.25	$	2.12
Diluted	0.73		0.77		2.25		2.12

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Investments (Tables)

9 Months Ended

Jun. 30, 2017

Investments [Abstract]

Summary of investments

Investments consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading
SIPs	$	91.2	$	844.4
Debt and other equity securities	286.6		277.5
Total investment securities, trading	377.8		1,121.9
Investment securities, available-for-sale
SIPs	77.1		297.7
Debt and other equity securities	1.7		3.7
Total investment securities, available-for-sale	78.8		301.4
Investments in equity method investees	878.4		797.4
Other investments	120.7		195.9
Total	$	1,455.7	$	2,416.6

Summary of the gross unrealized gains and losses relating to investment securities, available-for-sale

Gross unrealized gains and losses relating to investment securities, available-for-sale were as follows:

(in millions)			Gross Unrealized
	Cost Basis		Gains		Losses			Fair Value
as of June 30, 2017
SIPs	$	74.9	$	8.3	$	(6.1	)	$	77.1
Debt and other equity securities	1.6		0.1		—			1.7
Total	$	76.5	$	8.4	$	(6.1	)	$	78.8
as of September 30, 2016
SIPs	$	289.6	$	13.7	$	(5.6	)	$	297.7
Debt and other equity securities	3.6		0.1		—			3.7
Total	$	293.2	$	13.8	$	(5.6	)	$	301.4

Summary of gross unrealized losses and fair values of investment securities in a continuous unrealized loss position

Gross unrealized losses relating to investment securities, available-for-sale aggregated by length of time that individual securities have been in a continuous unrealized loss position were as follows:

	Less Than 12 Months					12 Months or Greater					Total
(in millions)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
as of June 30, 2017
SIPs	$	23.0	$	(5.8	)	$	3.8	$	(0.3	)	$	26.8	$	(6.1	)
as of September 30, 2016
SIPs	$	75.8	$	(4.3	)	$	18.0	$	(1.3	)	$	93.8	$	(5.6	)

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Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The assets and liability measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		Total
as of June 30, 2017
Assets
Investment securities, trading
SIPs	$	91.2	$	—	$	—	$	91.2
Debt and other equity securities	6.7		78.7		201.2		286.6
Investment securities, available-for-sale
SIPs	77.1		—		—		77.1
Debt and other equity securities	0.8		0.6		0.3		1.7
Life settlement contracts	—		—		13.3		13.3
Total Assets Measured at Fair Value	$	175.8	$	79.3	$	214.8	$	469.9
Liability
Contingent consideration liability	$	—	$	—	$	54.8	$	54.8

(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2016
Assets
Investment securities, trading
SIPs	$	844.4	$	—	$	—	$	844.4
Debt and other equity securities	2.6		84.1		190.8		277.5
Investment securities, available-for-sale
SIPs	297.7		—		—		297.7
Debt and other equity securities	1.6		2.1		—		3.7
Life settlement contracts	—		—		14.3		14.3
Total Assets Measured at Fair Value	$	1,146.3	$	86.2	$	205.1	$	1,437.6
Liability
Contingent consideration liability	$	—	$	—	$	98.1	$	98.1

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

Changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the three months ended June 30,
Balance at beginning of period	$	211.0		$	(60.4	)	$	211.1		$	(96.2	)
Total realized and unrealized gains (losses)
Included in investment and other income, net	1.7			—			11.9			—
Included in general, administrative and other expense	—			5.6			—			(1.2		)
Purchases	1.3			—			3.4			—
Settlements	(0.1		)	—			—			0.5
Foreign exchange revaluation	0.9			—			(3.5		)	—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	$	2.2		$	(0.1	)	$	11.9		$	(1.2	)

	2017						2016
(in millions)	Investments			Contingent Consideration Liabilities			Investments			Contingent Consideration Liability
for the nine months ended June 30,
Balance at beginning of period	$	205.1		$	(98.1	)	$	20.7		$	(102.9	)
Acquisition	—			(5.7		)	—			—
Total realized and unrealized gains
Included in investment and other income, net	7.3			—			13.4			—
Included in general, administrative and other expense	—			13.6			—			2.2
Purchases	2.1			—			189.9			—
Sales	(2.4		)	—			—			—
Settlements	(2.6		)	35.4			(1.7		)	3.8
Transfers out of Level 3	(0.4		)	—			—			—
Foreign exchange revaluation	5.7			—			0.6			—
Balance at End of Period	$	214.8		$	(54.8	)	$	222.9		$	(96.9	)
Change in unrealized gains included in net income relating to assets and liability held at end of period	$	6.2		$	7.9		$	12.7		$	2.2

Schedule of valuation techniques and significant unobservable inputs used in level 3 fair value measurements

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	193.2	Market pricing	Indicative bid	$73 per $100 of par
				Discount rate	18.4%
	8.0		Discounted cash flow	Discount rate	6.6%–6.7% (6.6%)
				Risk premium	2.0%–2.5% (2.2%)
Life settlement contracts	13.3		Discounted cash flow	Life expectancy	20–125 months (62)
				Discount rate	8.0%–20.0% (13.2%)
Contingent consideration liability	54.8		Discounted cash flow	AUM growth rate	1.4%–4.9% (3.1%)
				EBITDA margin	8.3%–8.5% (8.4%)
				Discount rate	14.0%

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Investment securities, trading – debt and other equity securities	$	190.8	Discounted cash flow	Discount rate	3.6%–6.9% (6.7%)
				Risk premium	2.0%–17.9% (16.5%)
				Liquidity discount	0.0%–10.0% (9.6%)
Life settlement contracts	14.3		Discounted cash flow	Life expectancy	20–132 months (65)
				Discount rate	3.3%–18.0% (11.5%)
Contingent consideration liability	98.1		Discounted cash flow	AUM growth rate	2.4%–11.5% (5.9%)
				EBITDA margin	14.3%
				Discount rate	13.2%

Schedule of financial instruments not measured at fair value

Financial instruments that were not measured at fair value were as follows:

(in millions)		June 30, 2017				September 30, 2016
	Fair Value Level	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	8,564.8	$	8,564.8	$	8,247.1	$	8,247.1
Other investments
Time deposits	2	52.8		52.8		131.6		131.6
Cost method investments	3	54.6		73.9		50.0		61.3
Financial Liabilities
Debt
Senior notes	2	1,343.8		1,373.8		1,348.5		1,412.5
Loan	2	30.9		30.9		52.7		52.7

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Consolidated Sponsored Investment Products (Tables)

9 Months Ended

Jun. 30, 2017

Consolidated Sponsored Investment Products [Abstract]

Schedule of balances of CSIPs

The balances of consolidated SIPs included in the Company’s condensed consolidated balance sheets were as follows:

(in millions)	June 30, 2017		September 30, 2016
Assets
Cash and cash equivalents	$	221.4	$	236.2
Receivables	224.2		47.9
Investments, at fair value	3,373.0		1,513.4
Other assets	0.9		1.4
Total Assets	$	3,819.5	$	1,798.9
Liabilities
Accounts payable and accrued expenses	$	123.7	$	65.2
Debt	53.1		682.2
Other liabilities	8.0		8.5
Total liabilities	184.8		755.9
Redeemable Noncontrolling Interests	1,830.6		61.1
Stockholders’ Equity
Franklin Resources, Inc.’s interests	1,525.3		414.1
Nonredeemable noncontrolling interests	278.8		567.8
Total stockholders’ equity	1,804.1		981.9
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$	3,819.5	$	1,798.9

Schedule of investments of CSIPs

Investments of consolidated SIPs consisted of the following:

(in millions)	June 30, 2017		September 30, 2016
Investment securities, trading	$	2,936.5	$	287.8
Other equity securities	291.4		607.3
Other debt securities	145.1		618.3
Total	$	3,373.0	$	1,513.4

Schedule of investments in fund products for which fair value was estimated using NAV as a practical expedient

Investments in fund products for which fair value was estimated using reported net asset value (“NAV”) as a practical expedient were as follows:

(in millions)	Redemption Frequency	June 30, 2017		September 30, 2016
Real estate and private equity funds	Nonredeemable	$	155.4	$	444.2
Hedge funds	Monthly, quarterly or triennially	—		1.8
Total		$	155.4	$	446.0

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities of consolidated SIPs measured at fair value on a recurring basis were as follows:

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of June 30, 2017
Assets
Investments
Equity securities	$	333.2	$	111.7	$	137.0	$	155.4	$	737.3
Debt securities	2.2		2,488.2		145.3		—		2,635.7
Total Assets Measured at Fair Value	$	335.4	$	2,599.9	$	282.3	$	155.4	$	3,373.0
Liabilities
Other liabilities	$	0.2	$	7.8	$	—	$	—	$	8.0

(in millions)	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total
as of September 30, 2016
Assets
Cash and cash equivalents of CLOs	$	146.4	$	—	$	—	$	—	$	146.4
Receivables of CLOs	—		23.6		—		—		23.6
Investments
Equity securities	155.4		0.5		160.3		446.0		762.2
Debt securities	—		618.9		132.3		—		751.2
Total Assets Measured at Fair Value	$	301.8	$	643.0	$	292.6	$	446.0	$	1,683.4
Liabilities
Other liabilities	$	0.1	$	8.4	$	—	$	—	$	8.5

Schedule of changes in Level 3 assets and liabilities of CSIPs on a recurring basis

Changes in Level 3 assets measured at fair value on a recurring basis were as follows:

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the three months ended June 30,
Balance at beginning of period	$	140.7		$	114.4		$	255.1		$	166.8		$	125.4		$	292.2
Realized and unrealized gains (losses) included in investment and other income, net	(10.3		)	18.3			8.0			(3.3		)	(6.3		)	(9.6		)
Purchases	4.7			15.5			20.2			—			2.6			2.6
Sales	(0.5		)	(4.7		)	(5.2		)	(3.8		)	(2.0		)	(5.8		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	2.4			2.4			4.8			(0.3		)	(1.2		)	(1.5		)
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	(10.3	)	$	18.2		$	7.9		$	(3.0	)	$	(6.5	)	$	(9.5	)

	2017									2016
(in millions)	Equity Securities			Debt Securities			Total  Level 3 Assets			Equity Securities			Debt Securities			Total  Level 3 Assets
for the nine months ended June 30,
Balance at beginning of period	$	160.3		$	132.3		$	292.6		$	191.6		$	130.2		$	321.8
Adoption of new accounting guidance	(45.4		)	(0.5		)	(45.9		)	—			—			—
Realized and unrealized gains (losses) included in investment and other income, net	(9.4		)	3.8			(5.6		)	1.7			(8.2		)	(6.5		)
Purchases	30.2			23.3			53.5			0.3			12.1			12.4
Sales	(0.6		)	(13.0		)	(13.6		)	(33.9		)	(16.1		)	(50.0		)
Settlements	—			(0.6		)	(0.6		)	—			—			—
Foreign exchange revaluation	1.9			—			1.9			(0.3		)	0.5			0.2
Balance at End of Period	$	137.0		$	145.3		$	282.3		$	159.4		$	118.5		$	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$	0.7		$	3.2		$	3.9		$	(0.3	)	$	(9.4	)	$	(9.7	)

Schedule of valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements

Valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:

(in millions)
as of June 30, 2017	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	99.8	Market comparable companies	EBITDA multiple	6.0–12.3 (9.9)
	22.8		Discounted cash flow	Discount rate	5.7%–19.8% (15.0%)
	14.4		Market pricing	Price to earnings ratio	10.0
Debt securities	130.2		Discounted cash flow	Discount rate	5.0%–50.0% (13.4%)
				Risk premium	0.0%–25.0% (8.1%)
	15.1		Market pricing	Private sale pricing	$57 per $100 of par

(in millions)
as of September 30, 2016	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Equity securities	$	113.1	Market comparable companies	EBITDA multiple	5.0–14.2 (10.3)
				Discount for lack of marketability	25.0%–50.0% (36.6%)
	24.3		Discounted cash flow	Discount rate	5.0%–19.0% (13.7%)
	22.9		Market pricing	Price to book value ratio	1.8–2.3 (2.0)
Debt securities	119.7		Discounted cash flow	Discount rate	6.0%–15.0% (10.4%)
				Risk premium	0.0%–28.0% (9.7%)
				EBITDA multiple	5.5
	12.6		Market pricing	Private sale pricing	$57 per $100 of par

Schedule of financial instruments of CSIPs not measured at fair value

Financial instruments of consolidated SIPs that were not measured at fair value were as follows:

(in millions)	Fair Value Level	June 30, 2017				September 30, 2016
		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents	1	$	221.4	$	221.4	$	89.8	$	89.8
Financial Liabilities
Debt, excluding CLOs	3	53.1		53.0		75.0		74.6
Debt of CLOs1	2 or 3	—		—		607.2		594.5

_________________

¹    Substantially all was Level 2.

Schedule of debt

Debt of consolidated SIPs consisted of the following:

	June 30, 2017			September 30, 2016
(in millions)	Amount		Weighted- Average Effective Interest Rate	Amount		Weighted- Average Effective Interest Rate
Debt, excluding CLOs	$	53.1	5.80%	$	75.0	4.79%
Debt of CLOs	—		N/A	607.2		2.24%
Total	$	53.1		$	682.2

Schedule of contractual maturities for debt of CSIPs

At June 30, 2017, maturities for debt of consolidated SIPs were as follows:

(in millions)	Carrying Amount
for the fiscal years ending September 30,
2017	$	—
2018	5.6
2019	47.5
Total	$	53.1

Schedule of changes in redeemable noncontrolling interests of CSIPs

Changes in redeemable noncontrolling interests of consolidated SIPs were as follows:

(in millions)
for the nine months ended June 30,	2017		2016
Balance at beginning of period	$	61.1	$	59.6
Adoption of new accounting guidance	824.7		—
Net income	33.1		0.4
Net subscriptions and other	489.4		73.2
Net consolidations (deconsolidations)	422.3		(93.8		)
Balance at End of Period	$	1,830.6	$	39.4

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Nonconsolidated Variable Interest Entities (Tables)

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of maximum exposure loss from nonconsolidated VIEs

The Company’s maximum exposure to loss from these VIEs consists of equity investments and investment management fee receivables as follows:

(in millions)	June 30, 2017		September 30, 2016
Investments	$	167.5	$	77.3
Receivables	145.8		21.4
Total	$	313.3	$	98.7

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Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2017

Share-based Compensation [Abstract]

Summary of nonvested stock and stock unit award activity

Stock and stock unit award activity was as follows:

(shares in thousands)	Time-Based Shares		Performance- Based Shares		Total Shares		Weighted-Average Grant-Date Fair Value
for the nine months ended June 30, 2017
Nonvested balance at October 1, 2016	2,369		1,288		3,657		$	45.67
Granted	2,706		1,110		3,816		34.13
Vested	(45	)	(355	)	(400	)	49.30
Forfeited/canceled	(205	)	(294	)	(499	)	43.23
Nonvested Balance at June 30, 2017	4,825		1,749		6,574		$	38.94

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Other Income (Expenses) (Tables)

9 Months Ended

Jun. 30, 2017

Other Income and Expenses [Abstract]

Schedule of other income (expenses)

Other income (expenses) consisted of the following:

	Three Months Ended June 30,						Nine Months Ended June 30,
(in millions)	2017			2016			2017			2016
Investment and Other Income, Net
Dividend income	$	3.3		$	6.0		$	8.4		$	15.2
Interest income	20.3			12.3			49.9			23.0
Gains on trading investment securities, net	1.1			35.4			11.5			49.8
Realized gains on sale of investment securities, available-for-sale	2.6			2.2			5.5			29.5
Realized losses on sale of investment securities, available-for-sale	(0.4		)	(0.9		)	(1.6		)	(2.7		)
Income from investments in equity method investees	17.9			11.4			88.4			19.6
Other-than-temporary impairment of investments	(0.5		)	(2.2		)	(0.8		)	(7.0		)
Gains (losses) on investments of consolidated SIPs, net	59.8			(0.6		)	52.6			(12.7		)
Foreign currency exchange gains (losses), net	(19.2		)	10.4			(5.6		)	0.7
Other, net	7.3			(8.2		)	14.6			(1.7		)
Total	92.2			65.8			222.9			113.7
Interest Expense	(12.9		)	(12.3		)	(38.8		)	(36.5		)
Other Income, Net	$	79.3		$	53.5		$	184.1		$	77.2

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Jun. 30, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Changes in accumulated other comprehensive income (loss) by component

Changes in accumulated other comprehensive income (loss) by component were as follows:

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2017
Balance at April 1, 2017	$	3.0		$	(368.1	)	$	(8.1	)	$	(373.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(0.1		)	54.0			(0.2		)	53.7
Reclassifications to net investment and other income, net of tax	(1.5		)	—			—			(1.5		)
Total other comprehensive income (loss)	(1.6		)	54.0			(0.2		)	52.2
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2017
Balance at October 1, 2016	$	6.8		$	(346.1	)	$	(8.1	)	$	(347.4	)
Adoption of new accounting guidance	(6.8		)	(0.3		)	—			(7.1		)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	3.9			32.3			(0.2		)	36.0
Reclassifications to net investment and other income, net of tax	(2.5		)	—			—			(2.5		)
Total other comprehensive income (loss)	1.4			32.3			(0.2		)	33.5
Balance at June 30, 2017	$	1.4		$	(314.1	)	$	(8.3	)	$	(321.0	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the three months ended June 30, 2016
Balance at April 1, 2016	$	7.0		$	(319.7	)	$	(5.1	)	$	(317.8	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(4.9		)	(30.8		)	0.2			(35.5		)
Reclassifications to net investment and other income, net of tax	0.8			—			—			0.8
Total other comprehensive income (loss)	(4.1		)	(30.8		)	0.2			(34.7		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

(in millions)	Unrealized Gains on Investments			Currency Translation Adjustments			Unrealized Losses on Defined Benefit Plans			Total
for the nine months ended June 30, 2016
Balance at October 1, 2015	$	19.3		$	(327.8	)	$	(5.7	)	$	(314.2	)
Other comprehensive income (loss)
Other comprehensive income (loss) before reclassifications, net of tax	(2.4		)	(22.7		)	0.8			(24.3		)
Reclassifications to net investment and other income, net of tax	(14.0		)	—			—			(14.0		)
Total other comprehensive income (loss)	(16.4		)	(22.7		)	0.8			(38.3		)
Balance at June 30, 2016	$	2.9		$	(350.5	)	$	(4.9	)	$	(352.5	)

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New Accounting Guidance - Narrative (Details) $ in Millions	Jun. 30, 2017	Oct. 01, 2016 USD ($)	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of consolidated sponsored investment products	59		40
Number of deconsolidated collateralized loan obligations (“CLOs”)			3
ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of consolidated sponsored investment products		24
Number of other SIPs that are consolidated VIEs		3
Number of deconsolidated collateralized loan obligations (“CLOs”)		2
Number of deconsolidated limited partnerships		5
Adoption of new accounting guidance		$ (325.9)
Liability [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		(317.9)
Redeemable noncontrolling interest [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		824.7
Retained earnings [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		5.8
Nonredeemable noncontrolling interests [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		(324.6)
Other equity [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		(7.1)
Assets [Member] | ASU 2015-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adoption of new accounting guidance		$ 180.9

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Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Number of shares repurchased during period	4.1	9.3	15.2	29.4
Cost of shares repurchased during period	$ 174.6	$ 326.7	$ 603.1	$ 1,068.1
Remaining number of shares authorized to be repurchased	35.5		35.5

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Stockholders' Equity - Changes in Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Oct. 01, 2016
Stockholders' Equity Rollforward
Beginning balance - Franklin Resources, Inc. Stockholders' Equity			$ 11,935.8
Beginning balance - Nonredeemable Noncontrolling Interests			592.4
Beginning balance - Total Stockholders' Equity			12,528.2	$ 12,495.8
Net income attributable to Franklin Resources, Inc.	$ 410.6	$ 446.4	1,271.5	1,254.6
Nonredeemable noncontrolling interests	12.5	14.2	8.6	29.7
Net income			1,280.1	1,284.3
Other comprehensive income (loss)	52.2	(34.7)	33.5	(38.3)
Cash dividends declared on common stock			(338.5)	(317.6)
Repurchase of common stock	(174.6)	(326.7)	(603.1)	(1,068.1)
Stock-based compensation			102.1	110.5
Net subscriptions (distributions) and other			38.0	(95.1)
Deconsolidation of sponsored investment product			(9.3)
Ending balance - Franklin Resources, Inc. Stockholders' Equity	12,400.0		12,400.0
Ending balance - Nonredeemable Noncontrolling Interests	305.1		305.1
Ending balance - Total Stockholders' Equity	12,705.1	12,371.5	12,705.1	12,371.5
ASU 2015-02 [Member]
Stockholders' Equity Rollforward
Adoption of new accounting guidance					$ (325.9)
Franklin Resources, Inc. Stockholders' Equity [Member]
Stockholders' Equity Rollforward
Beginning balance - Franklin Resources, Inc. Stockholders' Equity			11,935.8	11,841.0
Net income attributable to Franklin Resources, Inc.			1,271.5	1,254.6
Other comprehensive income (loss)			33.5	(38.3)
Cash dividends declared on common stock			(338.5)	(317.6)
Repurchase of common stock			(603.1)	(1,068.1)
Stock-based compensation			102.1	110.5
Ending balance - Franklin Resources, Inc. Stockholders' Equity	12,400.0	11,782.1	12,400.0	11,782.1
Franklin Resources, Inc. Stockholders' Equity [Member] | ASU 2015-02 [Member]
Stockholders' Equity Rollforward
Adoption of new accounting guidance					(1.3)
Nonredeemable noncontrolling interests [Member]
Stockholders' Equity Rollforward
Beginning balance - Nonredeemable Noncontrolling Interests			592.4	654.8
Nonredeemable noncontrolling interests			8.6	29.7
Net subscriptions (distributions) and other			38.0	(95.1)
Deconsolidation of sponsored investment product			(9.3)
Ending balance - Nonredeemable Noncontrolling Interests	$ 305.1	$ 589.4	$ 305.1	$ 589.4
Nonredeemable noncontrolling interests [Member] | ASU 2015-02 [Member]
Stockholders' Equity Rollforward
Adoption of new accounting guidance					$ (324.6)

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Earnings per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Shares of nonparticipating nonvested stock unit awards excluded from the calculation of diluted EPS	0.2	1.3	0.7	1.3

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Earnings per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share Reconciliation [Abstract]
Net income attributable to Franklin Resources, Inc.	$ 410.6	$ 446.4	$ 1,271.5	$ 1,254.6
Less: allocation of earnings to participating nonvested stock and stock unit awards - basic	3.5	3.2	9.9	8.5
Less: allocation of earnings to participating nonvested stock and stock unit awards - diluted	3.5	3.2	9.9	8.5
Net Income Available to Common Stockholders - basic	407.1	443.2	1,261.6	1,246.1
Net Income Available to Common Stockholders - diluted	$ 407.1	$ 443.2	$ 1,261.6	$ 1,246.1
Weighted-average shares outstanding – basic	556.2	578.9	560.5	587.9
Dilutive effect of nonparticipating nonvested stock unit awards	0.5	0.0	0.3	0.0
Weighted-Average Shares Outstanding – Diluted	556.7	578.9	560.8	587.9
Earnings per Share [Abstract]
Basic	$ 0.73	$ 0.77	$ 2.25	$ 2.12
Diluted	$ 0.73	$ 0.77	$ 2.25	$ 2.12

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Investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Investments [Abstract]
Aggregate carrying values of investment securities pledged as collateral	$ 38.7		$ 38.7		$ 117.3
Other-than-temporary impairment of investments	$ 0.5	$ 2.2	$ 0.8	$ 7.0
SIPs [Member]
Investment Holdings [Line Items]
Other-than-temporary impairment of available-for-sale SIPs		$ 2.2		$ 5.9

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Investments - Summary of Investments (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Investment Holdings [Line Items]
Investment securities, trading	$ 377.8	$ 1,121.9
Investment securities, available-for-sale	78.8	301.4
Investments in equity method investees	878.4	797.4
Other investments	120.7	195.9
Total	1,455.7	2,416.6
SIPs [Member]
Investment Holdings [Line Items]
Investment securities, trading	91.2	844.4
Investment securities, available-for-sale	77.1	297.7
Debt and Other Equity Securities [Member]
Investment Holdings [Line Items]
Investment securities, trading	286.6	277.5
Investment securities, available-for-sale	$ 1.7	$ 3.7

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Investments - Summary of Gross Unrealized Gains and Losses Relating to Investment Securities, Available-for-Sale (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Investment Holdings [Line Items]
Cost Basis	$ 76.5	$ 293.2
Gross Unrealized Gains	8.4	13.8
Gross Unrealized Losses	(6.1)	(5.6)
Fair Value	78.8	301.4
SIPs [Member]
Investment Holdings [Line Items]
Cost Basis	74.9	289.6
Gross Unrealized Gains	8.3	13.7
Gross Unrealized Losses	(6.1)	(5.6)
Fair Value	77.1	297.7
Debt and Other Equity Securities [Member]
Investment Holdings [Line Items]
Cost Basis	1.6	3.6
Gross Unrealized Gains	0.1	0.1
Gross Unrealized Losses	0.0	0.0
Fair Value	$ 1.7	$ 3.7

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Investments - Summary of Gross Unrealized Losses, AFS, Continuous Loss Position (Details) - SIPs [Member] - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 23.0	$ 75.8
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Gross Unrealized Losses	(5.8)	(4.3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Fair Value	3.8	18.0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Greater, Gross Unrealized Losses	(0.3)	(1.3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value	26.8	93.8
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Gross Unrealized Losses	$ (6.1)	$ (5.6)

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Transfers into Level 1 from Level 2 - assets	$ 0.0	$ 0.0
Transfers into Level 2 from Level 1 - assets	0.0	0.0
Transfers into Level 1 from Level 2 - liabilities	0.0	0.0
Transfers into Level 2 from Level 1 - liabilities	0.0	0.0
Transfers into Level 3 - assets	0.0	0.0
Transfers into Level 3 - liabilities	$ 0.0	$ 0.0

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Assets [Abstract]
Investment securities, trading	$ 377.8	$ 1,121.9
Investment securities, available-for-sale	78.8	301.4
Life settlement contracts	13.3	14.3
Total Assets Measured at Fair Value	469.9	1,437.6
Liability [Abstract]
Contingent consideration liability	54.8	98.1
Level 1 [Member]
Assets [Abstract]
Life settlement contracts	0.0	0.0
Total Assets Measured at Fair Value	175.8	1,146.3
Liability [Abstract]
Contingent consideration liability	0.0	0.0
Level 2 [Member]
Assets [Abstract]
Life settlement contracts	0.0	0.0
Total Assets Measured at Fair Value	79.3	86.2
Liability [Abstract]
Contingent consideration liability	0.0	0.0
Level 3 [Member]
Assets [Abstract]
Life settlement contracts	13.3	14.3
Total Assets Measured at Fair Value	214.8	205.1
Liability [Abstract]
Contingent consideration liability	54.8	98.1
SIPs [Member]
Assets [Abstract]
Investment securities, trading	91.2	844.4
Investment securities, available-for-sale	77.1	297.7
SIPs [Member] | Level 1 [Member]
Assets [Abstract]
Investment securities, trading	91.2	844.4
Investment securities, available-for-sale	77.1	297.7
SIPs [Member] | Level 2 [Member]
Assets [Abstract]
Investment securities, trading	0.0	0.0
Investment securities, available-for-sale	0.0	0.0
SIPs [Member] | Level 3 [Member]
Assets [Abstract]
Investment securities, trading	0.0	0.0
Investment securities, available-for-sale	0.0	0.0
Debt and Other Equity Securities [Member]
Assets [Abstract]
Investment securities, trading	286.6	277.5
Investment securities, available-for-sale	1.7	3.7
Debt and Other Equity Securities [Member] | Level 1 [Member]
Assets [Abstract]
Investment securities, trading	6.7	2.6
Investment securities, available-for-sale	0.8	1.6
Debt and Other Equity Securities [Member] | Level 2 [Member]
Assets [Abstract]
Investment securities, trading	78.7	84.1
Investment securities, available-for-sale	0.6	2.1
Debt and Other Equity Securities [Member] | Level 3 [Member]
Assets [Abstract]
Investment securities, trading	201.2	190.8
Investment securities, available-for-sale	$ 0.3	$ 0.0

XML

Fair Value Measurements - Schedule of Changes in Level 3 Assets and Liabilities (Details) - Level 3 [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period - assets	$ 255.1	$ 292.2	$ 292.6	$ 321.8
Total realized and unrealized gains (losses) - assets	8.0	(9.6)	(5.6)	(6.5)
Purchases - assets	20.2	2.6	53.5	12.4
Sales - assets	(5.2)	(5.8)	(13.6)	(50.0)
Settlements - assets	(0.6)	0.0	(0.6)	0.0
Foreign exchange revaluation	4.8	(1.5)	1.9	0.2
Balance at End of Period - assets	282.3	277.9	282.3	277.9
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	7.9	(9.5)	3.9	(9.7)
Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period - assets	211.0	211.1	205.1	20.7
Acquisition - assets			0.0	0.0
Purchases - assets	1.3	3.4	2.1	189.9
Sales - assets			(2.4)	0.0
Settlements - assets	(0.1)	0.0	(2.6)	(1.7)
Transfers out of Level 3 - assets			(0.4)	0.0
Foreign exchange revaluation	0.9	(3.5)	5.7	0.6
Balance at End of Period - assets	214.8	222.9	214.8	222.9
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	2.2	11.9	6.2	12.7
Contingent Consideration Liability [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period - liabilities	(60.4)	(96.2)	(98.1)	(102.9)
Acquisition - liabilities			(5.7)	0.0
Purchases - liabilities	0.0	0.0	0.0	0.0
Sales - liabilities			0.0	0.0
Settlements - liabilities	0.0	0.5	35.4	3.8
Transfers out of Level 3 - liabilities			0.0	0.0
Foreign exchange revaluation	0.0	0.0	0.0	0.0
Balance at End of Period - liabilities	(54.8)	(96.9)	(54.8)	(96.9)
Change in unrealized gains (losses) included in net income relating to assets and liability held at end of period	(0.1)	(1.2)	7.9	2.2
Investment and other income [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total realized and unrealized gains (losses) - assets	1.7	11.9	7.3	13.4
Investment and other income [Member] | Contingent Consideration Liability [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total realized and unrealized gains (losses) - liabilities	0.0	0.0	0.0	0.0
General, administrative and other expense [Member] | Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total realized and unrealized gains (losses) - assets	0.0	0.0	0.0	0.0
General, administrative and other expense [Member] | Contingent Consideration Liability [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total realized and unrealized gains (losses) - liabilities	$ 5.6	$ (1.2)	$ 13.6	$ 2.2

XML

Fair Value Measurements - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Level 3 Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities, trading	$ 377.8	$ 1,121.9
Life settlement contracts	13.3	14.3
Contingent consideration liability	54.8	98.1
Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Life settlement contracts	13.3	14.3
Contingent consideration liability	54.8	98.1
Discounted cash flow [Member] | Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Life settlement contracts	13.3	14.3
Contingent consideration liability	$ 54.8	$ 98.1
Contingent Consideration Liability [Member] | Minimum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
AUM growth rate	1.40%	2.40%
EBITDA margin	8.30%
Contingent Consideration Liability [Member] | Maximum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
AUM growth rate	4.90%	11.50%
EBITDA margin	8.50%
Contingent Consideration Liability [Member] | Weighted Average [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	14.00%	13.20%
AUM growth rate	3.10%	5.90%
EBITDA margin	8.40%	14.30%
Life Settlement Contracts [Member] | Minimum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	8.00%	3.30%
Life expectancy (in months)	20 months	20 months
Life Settlement Contracts [Member] | Maximum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	20.00%	18.00%
Life expectancy (in months)	125 months	132 months
Life Settlement Contracts [Member] | Weighted Average [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	13.20%	11.50%
Life expectancy (in months)	62 months	65 months
Debt and Other Equity Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities, trading	$ 286.6	$ 277.5
Debt and Other Equity Securities [Member] | Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities, trading	201.2	190.8
Debt and Other Equity Securities [Member] | Discounted cash flow [Member] | Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities, trading	8.0	$ 190.8
Debt and Other Equity Securities [Member] | Market Pricing [Member] | Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investment securities, trading	$ 193.2
Debt and Other Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	6.60%	3.60%
Risk premium	2.00%	2.00%
Liquidity discount		0.00%
Debt and Other Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	6.70%	6.90%
Risk premium	2.50%	17.90%
Liquidity discount		10.00%
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate	6.60%	6.70%
Risk premium	2.20%	16.50%
Liquidity discount		9.60%
Debt and Other Equity Securities [Member] | Weighted Average [Member] | Market Pricing [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Indicative bid	$ 0.73
Discount rate	18.40%

XML

Fair Value Measurements - Schedule of Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 8,786.2	$ 8,483.3	$ 8,242.1	$ 8,368.1
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	8,564.8	8,247.1
Other investments	52.8	131.6
Cost method investments	54.6	50.0
Senior notes	1,343.8	1,348.5
Loan	30.9	52.7
Estimated Fair Value [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	8,564.8	8,247.1
Estimated Fair Value [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	52.8	131.6
Senior notes	1,373.8	1,412.5
Loan	30.9	52.7
Estimated Fair Value [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost method investments	$ 73.9	$ 61.3

XML

Consolidated Sponsored Investment Products - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2016 USD ($)
Consolidated Sponsored Investment Products [Abstract]
Number of consolidated sponsored investment products	59		59		40
Number of CLOs					3
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Transfers into Level 2 from Level 1 - assets	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Transfers into Level 2 from Level 1 - liabilities	0.0	0.0	0.0	0.0
Transfers into Level 1 from Level 2 - assets	0.0	0.0	0.0	0.0
Transfers into Level 1 from Level 2 - liabilities	0.0	0.0	0.0	0.0
Transfers into Level 3 - assets			0.0	0.0
Transfers into Level 3 - liabilities			0.0	0.0
Unfunded commitments company contractually obligated to fund	0.1		0.1		$ 2.2
CLOs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Net gains related to its own economic interests	4.6	2.2	4.8	3.0
Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Consolidated SIPs' unfunded commitments	1.1		1.1		$ 74.4
Transfers into Level 2 from Level 1 - assets	0.0	0.0	0.0	0.0
Transfers into Level 2 from Level 1 - liabilities	0.0	0.0	0.0	0.0
Transfers into Level 1 from Level 2 - assets	0.0	0.0	0.0	0.0
Transfers into Level 1 from Level 2 - liabilities	$ 0.0	$ 0.0	0.0	0.0
Transfers into Level 3 - assets			0.0	0.0
Transfers out of Level 3 - assets			0.0	0.0
Transfers into Level 3 - liabilities			0.0	0.0
Transfers out of Level 3 - liabilities			$ 0.0	$ 0.0
Real Estate and Private Equity Funds [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Liquidation weighted average period			4 years 8 months		3 years 2 months
Minimum [Member] | Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Interest rate	2.36%		2.36%		2.36%
Maximum [Member] | Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Interest rate	6.69%		6.69%		6.19%

XML

Consolidated Sponsored Investment Products - Schedule of Balances of CSIPs (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Assets [Abstract]
Cash and cash equivalents	$ 8,786.2	$ 8,483.3	$ 8,242.1	$ 8,368.1
Receivables	978.6	794.3
Investments, at fair value	469.9	1,437.6
Other assets	145.9	156.7
Total Assets	17,476.2	16,098.8
Liabilities [Abstract]
Accounts payable and accrued expenses	275.0	233.3
Debt	1,374.7	1,401.2
Other liabilities	294.7	267.3
Total liabilities	2,940.5	3,509.5
Redeemable Noncontrolling Interests	1,830.6	61.1	39.4	59.6
Stockholders' Equity [Abstract]
Franklin Resources, Inc.’s interests	12,400.0	11,935.8
Nonredeemable noncontrolling interests	305.1	592.4
Total stockholders’ equity	12,705.1	12,528.2	$ 12,371.5	$ 12,495.8
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	17,476.2	16,098.8
Consolidated SIPs [Member]
Assets [Abstract]
Cash and cash equivalents	221.4	236.2
Receivables	224.2	47.9
Investments, at fair value	3,373.0	1,513.4
Other assets	0.9	1.4
Total Assets	3,819.5	1,798.9
Liabilities [Abstract]
Accounts payable and accrued expenses	123.7	65.2
Debt	53.1	682.2
Other liabilities	8.0	8.5
Total liabilities	184.8	755.9
Redeemable Noncontrolling Interests	1,830.6	61.1
Stockholders' Equity [Abstract]
Franklin Resources, Inc.’s interests	1,525.3	414.1
Nonredeemable noncontrolling interests	278.8	567.8
Total stockholders’ equity	1,804.1	981.9
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders’ Equity	$ 3,819.5	$ 1,798.9

XML

Consolidated Sponsored Investment Products - Schedule of Investments of CSIPs (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Investment securities, trading	$ 377.8	$ 1,121.9
Fair value	469.9	1,437.6
Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Investment securities, trading	2,936.5	287.8
Other equity securities	291.4	607.3
Other debt securities	145.1	618.3
Fair value	$ 3,373.0	$ 1,513.4

XML

Consolidated Sponsored Investment Products - Schedule of Investments in Fund Products for which Fair Value was Estimated using NAV as a Practical Expedient (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments in funds products for which fair value was estimated using NAV	$ 155.4	$ 446.0
Real Estate and Private Equity Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments in funds products for which fair value was estimated using NAV	155.4	444.2
Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments in funds products for which fair value was estimated using NAV	$ 0.0	$ 1.8

XML

Consolidated Sponsored Investment Products - Schedule of Balances of Assets and Liabilities of CSIPs Measured at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Total Assets Measured at Fair Value	$ 469.9	$ 1,437.6
NAV as a Practical Expedient	155.4	446.0
Level 1 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Total Assets Measured at Fair Value	175.8	1,146.3
Level 2 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Total Assets Measured at Fair Value	79.3	86.2
Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Total Assets Measured at Fair Value	214.8	205.1
Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	291.4	607.3
Debt securities	145.1	618.3
Fair Value, Measurements, Recurring [Member] | CLOs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents of CLOs		146.4
Receivables of CLOs		23.6
Fair Value, Measurements, Recurring [Member] | CLOs [Member] | Level 1 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents of CLOs		146.4
Receivables of CLOs		0.0
Fair Value, Measurements, Recurring [Member] | CLOs [Member] | Level 2 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents of CLOs		0.0
Receivables of CLOs		23.6
Fair Value, Measurements, Recurring [Member] | CLOs [Member] | Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents of CLOs		0.0
Receivables of CLOs		0.0
Fair Value, Measurements, Recurring [Member] | Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	737.3	762.2
Debt securities	2,635.7	751.2
Total Assets Measured at Fair Value	3,373.0	1,683.4
Other liabilities	8.0	8.5
NAV as a Practical Expedient	155.4	446.0
Fair Value, Measurements, Recurring [Member] | Consolidated sponsored investment products [Member] | Level 1 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	333.2	155.4
Debt securities	2.2	0.0
Total Assets Measured at Fair Value	335.4	301.8
Other liabilities	0.2	0.1
Fair Value, Measurements, Recurring [Member] | Consolidated sponsored investment products [Member] | Level 2 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	111.7	0.5
Debt securities	2,488.2	618.9
Total Assets Measured at Fair Value	2,599.9	643.0
Other liabilities	7.8	8.4
Fair Value, Measurements, Recurring [Member] | Consolidated sponsored investment products [Member] | Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	137.0	160.3
Debt securities	145.3	132.3
Total Assets Measured at Fair Value	282.3	292.6
Other liabilities	0.0	0.0
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
NAV as a Practical Expedient	$ 155.4	$ 446.0

XML

Consolidated Sponsored Investment Products - Schedule of Changes in Level 3 Assets and Liabilities of CSIPs (Details) - Level 3 [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Oct. 01, 2016
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Balance at beginning of period - assets	$ 255.1	$ 292.2	$ 292.6	$ 321.8
Realized and unrealized gains (losses) included in investment and other income, net - assets	8.0	(9.6)	(5.6)	(6.5)
Purchases - assets	20.2	2.6	53.5	12.4
Sales - assets	(5.2)	(5.8)	(13.6)	(50.0)
Settlements - assets	(0.6)	0.0	(0.6)	0.0
Foreign exchange revaluation	4.8	(1.5)	1.9	0.2
Balance at End of Period - assets	282.3	277.9	282.3	277.9
Change in unrealized gains (losses) included in net income relating to assets held at end of period	7.9	(9.5)	3.9	(9.7)
Equity Securities [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Balance at beginning of period - assets	140.7	166.8	160.3	191.6
Realized and unrealized gains (losses) included in investment and other income, net - assets	(10.3)	(3.3)	(9.4)	1.7
Purchases - assets	4.7	0.0	30.2	0.3
Sales - assets	(0.5)	(3.8)	(0.6)	(33.9)
Settlements - assets	0.0	0.0	0.0	0.0
Foreign exchange revaluation	2.4	(0.3)	1.9	(0.3)
Balance at End of Period - assets	137.0	159.4	137.0	159.4
Change in unrealized gains (losses) included in net income relating to assets held at end of period	(10.3)	(3.0)	0.7	(0.3)
Debt Securities [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Balance at beginning of period - assets	114.4	125.4	132.3	130.2
Realized and unrealized gains (losses) included in investment and other income, net - assets	18.3	(6.3)	3.8	(8.2)
Purchases - assets	15.5	2.6	23.3	12.1
Sales - assets	(4.7)	(2.0)	(13.0)	(16.1)
Settlements - assets	(0.6)	0.0	(0.6)	0.0
Foreign exchange revaluation	2.4	(1.2)	0.0	0.5
Balance at End of Period - assets	145.3	118.5	145.3	118.5
Change in unrealized gains (losses) included in net income relating to assets held at end of period	$ 18.2	$ (6.5)	$ 3.2	$ (9.4)
ASU 2015-02 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Adoption of new accounting guidance					$ (45.9)
ASU 2015-02 [Member] | Equity Securities [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Adoption of new accounting guidance					(45.4)
ASU 2015-02 [Member] | Debt Securities [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Adoption of new accounting guidance					$ (0.5)

XML

Consolidated Sponsored Investment Products - Schedule of Valuation Techniques and Significant Unobservable Inputs used in Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Equity Securities [Member] | Minimum [Member] | Market comparable companies [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
EBITDA multiple	6	5.0
Discount for lack of marketability		25.00%
Equity Securities [Member] | Minimum [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Discount rate	5.70%	5.00%
Equity Securities [Member] | Minimum [Member] | Market Pricing [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Price to book value		$ 1.8
Equity Securities [Member] | Maximum [Member] | Market comparable companies [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
EBITDA multiple	12.3	14.2
Discount for lack of marketability		50.00%
Equity Securities [Member] | Maximum [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Discount rate	19.80%	19.00%
Equity Securities [Member] | Maximum [Member] | Market Pricing [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Price to book value		$ 2.3
Equity Securities [Member] | Weighted Average [Member] | Market comparable companies [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
EBITDA multiple	9.9	10.3
Discount for lack of marketability		36.60%
Equity Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Discount rate	15.00%	13.70%
Equity Securities [Member] | Weighted Average [Member] | Market Pricing [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Price to earnings ratio	$ 10.0
Price to book value		$ 2.0
Debt Securities [Member] | Minimum [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Discount rate	5.00%	6.00%
Risk premium	0.00%	0.00%
Debt Securities [Member] | Maximum [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Discount rate	50.00%	15.00%
Risk premium	25.00%	28.00%
Debt Securities [Member] | Weighted Average [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
EBITDA multiple		5.5
Discount rate	13.40%	10.40%
Risk premium	8.10%	9.70%
Debt Securities [Member] | Weighted Average [Member] | Market Pricing [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Private sale pricing	$ 0.57	$ 0.57
Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	$ 291.4	$ 607.3
Debt securities	145.1	618.3
Consolidated SIPs [Member] | Level 3 [Member] | Market comparable companies [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	99.8	113.1
Consolidated SIPs [Member] | Level 3 [Member] | Discounted cash flow [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	22.8	24.3
Debt securities	130.2	119.7
Consolidated SIPs [Member] | Level 3 [Member] | Market Pricing [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	14.4	22.9
Debt securities	15.1	12.6
Fair Value, Measurements, Recurring [Member] | Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	737.3	762.2
Debt securities	2,635.7	751.2
Fair Value, Measurements, Recurring [Member] | Consolidated SIPs [Member] | Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Equity securities	137.0	160.3
Debt securities	$ 145.3	$ 132.3

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Consolidated Sponsored Investment Products - Schedule of Financial Instruments of CSIPs not Measured at Fair Value (Details) - USD ($) $ in Millions		Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		$ 8,786.2	$ 8,483.3	$ 8,242.1	$ 8,368.1
Debt		1,374.7	1,401.2
Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		221.4	236.2
Debt, excluding CLOs		53.1	75.0
Debt		53.1	682.2
Consolidated sponsored investment products [Member] | CLOs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt		0.0	607.2
Carrying Value [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		8,564.8	8,247.1
Carrying Value [Member] | Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		221.4	89.8
Debt, excluding CLOs		53.1	75.0
Carrying Value [Member] | Consolidated sponsored investment products [Member] | CLOs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt		0.0	607.2
Estimated Fair Value [Member] | Level 1 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		8,564.8	8,247.1
Estimated Fair Value [Member] | Consolidated sponsored investment products [Member] | Level 1 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Cash and cash equivalents		221.4	89.8
Estimated Fair Value [Member] | Consolidated sponsored investment products [Member] | Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt, excluding CLOs		53.0	74.6
Estimated Fair Value [Member] | Consolidated sponsored investment products [Member] | CLOs [Member] | Fair Value Inputs Level 2 and Level 3 [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt	[1]	$ 0.0	$ 594.5

[1] Substantially all was Level 2.

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Consolidated Sponsored Investment Products - Schedule of Debt of CSIPs (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt	$ 1,374.7	$ 1,401.2
Consolidated sponsored investment products [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt, excluding CLOs	53.1	75.0
Debt	$ 53.1	$ 682.2
Effective Interest Rate	5.80%	4.79%
Consolidated sponsored investment products [Member] | CLOs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt	$ 0.0	$ 607.2
Effective Interest Rate		2.24%

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Consolidated Sponsored Investment Products - Schedule of Contractual Maturities for Debt of CSIPs (Details) - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Schedule Of Consolidated Sponsored Investment Products [Line Items]
Debt	$ 1,374.7	$ 1,401.2
Consolidated SIPs [Member]
Schedule Of Consolidated Sponsored Investment Products [Line Items]
2017	0.0
2018	5.6
2019	47.5
Debt	$ 53.1	$ 682.2

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Consolidated Sponsored Investment Products - Schedule of Redeemable Noncontrolling Interest of CSIPs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Oct. 01, 2016
Temporary Equity [Line Items]
Balance at beginning of period			$ 61.1	$ 59.6
Net income	$ 36.3	$ 0.9	33.1	0.4
Net subscriptions and other			38.0	(95.1)
Net consolidations (deconsolidations)			(9.3)
Balance at End of Period	$ 1,830.6	$ 39.4	1,830.6	39.4
Redeemable noncontrolling interest [Member]
Temporary Equity [Line Items]
Net subscriptions and other			489.4	73.2
Net consolidations (deconsolidations)			$ 422.3	$ (93.8)
ASU 2015-02 [Member]
Temporary Equity [Line Items]
Adoption of new accounting guidance					$ (325.9)
ASU 2015-02 [Member] | Redeemable noncontrolling interest [Member]
Temporary Equity [Line Items]
Adoption of new accounting guidance					$ 824.7

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Nonconsolidated Variable Interest Entities - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2016 USD ($)
Debt Securities [Member]
Variable Interest Entity [Line Items]
Purchase of debt securities	$ 182.7
INDIA
Variable Interest Entity [Line Items]
Number of SIPs	6

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Nonconsolidated Variable Interest Entities (Details) - Nonconsolidated VIEs [Member] - USD ($) $ in Millions	Jun. 30, 2017	Sep. 30, 2016
Variable Interest Entity [Line Items]
Maximum exposure to loss	$ 313.3	$ 98.7
Investments [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss	167.5	77.3
Receivables [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss	$ 145.8	$ 21.4

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Commitments and Contingencies Commitments and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
The plaintiff alleges that plan losses exceed	$ 79.0

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Stock-Based Compensation - Narrative (Details) $ in Millions	9 Months Ended
	Jun. 30, 2017 USD ($)
Share-based Compensation [Abstract]
Unrecognized compensation expense related to nonvested stock and stock unit awards, net of estimated forfeitures	$ 144.9
Remaining weighted-average vesting period	1 year 8 months

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Stock-Based Compensation (Details) shares in Thousands	9 Months Ended
	Jun. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested balance at October 1, 2016	3,657
Granted	3,816
Vested	(400)
Forfeited/canceled	(499)
Nonvested Balance at June 30, 2017	6,574
Nonvested beginning balance, Weighted Average Grant Date Fair Value | $ / shares	$ 45.67
Weighted Average Grant Date Fair Value of shares granted | $ / shares	34.13
Weighted Average Grant Date Fair Value of shares vested | $ / shares	49.30
Weighted Average Grant Date Fair Value of shares forfeited/canceled | $ / shares	43.23
Nonvested ending balance, Weighted Average Grant Date Fair Value | $ / shares	$ 38.94
Time-Based Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested balance at October 1, 2016	2,369
Granted	2,706
Vested	(45)
Forfeited/canceled	(205)
Nonvested Balance at June 30, 2017	4,825
Performance-Based Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested balance at October 1, 2016	1,288
Granted	1,110
Vested	(355)
Forfeited/canceled	(294)
Nonvested Balance at June 30, 2017	1,749

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Other Income (Expenses) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Income and Expenses [Abstract]
Proceeds from the sale of available-for-sale securities	$ 2.5	$ 27.7	$ 28.3	$ 253.7
Net gains recognized on trading investment securities	1.3	26.8	3.8	37.0
Net gains recognized on trading investment securities of consolidated SIPs	$ 19.9	$ 2.5	$ 25.8	$ 4.7

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Other Income (Expenses) - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Income and Expenses [Abstract]
Dividend income	$ 3.3	$ 6.0	$ 8.4	$ 15.2
Interest income	20.3	12.3	49.9	23.0
Gains on trading investment securities, net	1.1	35.4	11.5	49.8
Realized gains on sale of investment securities, available-for-sale	2.6	2.2	5.5	29.5
Realized losses on sale of investment securities, available-for-sale	(0.4)	(0.9)	(1.6)	(2.7)
Income from investments in equity method investees	17.9	11.4	88.4	19.6
Other-than-temporary impairment of investments	(0.5)	(2.2)	(0.8)	(7.0)
Gains (losses) on investments of consolidated SIPs, net	59.8	(0.6)	52.6	(12.7)
Foreign currency exchange gains (losses), net	(19.2)	10.4	(5.6)	0.7
Other income	7.3		14.6
Other expenses		(8.2)		(1.7)
Total	92.2	65.8	222.9	113.7
Interest Expense	(12.9)	(12.3)	(38.8)	(36.5)
Other income, net	$ 79.3	$ 53.5	$ 184.1	$ 77.2

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Oct. 01, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (373.2)	$ (317.8)	$ (347.4)	$ (314.2)
Other comprehensive income (loss) before reclassifications, net of tax	53.7	(35.5)	36.0	(24.3)
Reclassifications to net investment and other income, net of tax	(1.5)	0.8	(2.5)	(14.0)
Total other comprehensive income (loss)	52.2	(34.7)	33.5	(38.3)
Balance at end of period	(321.0)	(352.5)	(321.0)	(352.5)
Unrealized Gains on Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	3.0	7.0	6.8	19.3
Other comprehensive income (loss) before reclassifications, net of tax	(0.1)	(4.9)	3.9	(2.4)
Reclassifications to net investment and other income, net of tax	(1.5)	0.8	(2.5)	(14.0)
Total other comprehensive income (loss)	(1.6)	(4.1)	1.4	(16.4)
Balance at end of period	1.4	2.9	1.4	2.9
Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(368.1)	(319.7)	(346.1)	(327.8)
Other comprehensive income (loss) before reclassifications, net of tax	54.0	(30.8)	32.3	(22.7)
Reclassifications to net investment and other income, net of tax	0.0	0.0	0.0	0.0
Total other comprehensive income (loss)	54.0	(30.8)	32.3	(22.7)
Balance at end of period	(314.1)	(350.5)	(314.1)	(350.5)
Unrealized Losses on Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(8.1)	(5.1)	(8.1)	(5.7)
Other comprehensive income (loss) before reclassifications, net of tax	(0.2)	0.2	(0.2)	0.8
Reclassifications to net investment and other income, net of tax	0.0	0.0	0.0	0.0
Total other comprehensive income (loss)	(0.2)	0.2	(0.2)	0.8
Balance at end of period	$ (8.3)	$ (4.9)	$ (8.3)	$ (4.9)
ASU 2015-02 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting guidance					$ (325.9)
ASU 2015-02 [Member] | Unrealized Gains on Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting guidance					(6.8)
ASU 2015-02 [Member] | Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting guidance					(0.3)
ASU 2015-02 [Member] | Unrealized Losses on Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting guidance					0.0
ASU 2015-02 [Member] | Other equity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Adoption of new accounting guidance					$ (7.1)