FRANKLIN RESOURCES INC Fair Value Disclosure
| (in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||||||||||||||
| as of September 30, 2025 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Investments, at fair value | ||||||||||||||||||||||||||||||||
Sponsored funds and separate accounts | $ | 463.9 | $ | 305.2 | $ | 2.2 | $ | 38.3 | $ | 809.6 | ||||||||||||||||||||||
Investments related to long-term incentive plans | 253.4 | 3.3 | — | 31.4 | 288.1 | |||||||||||||||||||||||||||
| Other equity and debt investments | 12.4 | 9.4 | 1.8 | 29.2 | 52.8 | |||||||||||||||||||||||||||
| Total Assets Measured at Fair Value | $ | 729.7 | $ | 317.9 | $ | 4.0 | $ | 98.9 | $ | 1,150.5 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Securities sold short | $ | 193.7 | $ | — | $ | — | $ | — | $ | 193.7 | ||||||||||||||||||||||
| Contingent consideration liabilities | — | — | 20.4 | — | 20.4 | |||||||||||||||||||||||||||
| Total Liabilities Measured at Fair Value | $ | 193.7 | $ | — | $ | 20.4 | $ | — | $ | 214.1 | ||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | NAV as a Practical Expedient | Total | |||||||||||||||||||||||||||
| as of September 30, 2024 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Investments, at fair value | ||||||||||||||||||||||||||||||||
Sponsored funds and separate accounts | $ | 306.3 | $ | 157.4 | $ | 5.2 | $ | 40.2 | $ | 509.1 | ||||||||||||||||||||||
Investments related to long-term incentive plans | 242.5 | — | — | 29.1 | 271.6 | |||||||||||||||||||||||||||
Other equity and debt investments | 4.1 | 11.1 | 2.6 | 39.5 | 57.3 | |||||||||||||||||||||||||||
| Total Assets Measured at Fair Value | $ | 552.9 | $ | 168.5 | $ | 7.8 | $ | 108.8 | $ | 838.0 | ||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
Securities sold short | $ | 178.1 | $ | — | $ | — | $ | — | $ | 178.1 | ||||||||||||||||||||||
| Contingent consideration liabilities | — | — | 28.2 | — | 28.2 | |||||||||||||||||||||||||||
| Total Liabilities Measured at Fair Value | $ | 178.1 | $ | — | $ | 28.2 | $ | — | $ | 206.3 | ||||||||||||||||||||||
| (in millions) | ||||||||||||||
| as of September 30, | 2025 | 2024 | ||||||||||||
Nonredeemable investments1 | ||||||||||||||
| Investments with known liquidation periods | $ | 19.7 | $ | 32.4 | ||||||||||
| Investments with unknown liquidation periods | 15.2 | 16.1 | ||||||||||||
Redeemable investments2 | 64.0 | 60.3 | ||||||||||||
| Unfunded commitments | 13.3 | 14.0 | ||||||||||||
| Fair Value Level | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (in millions) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||
| as of September 30, | ||||||||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1 | $ | 3,088.1 | $ | 3,088.1 | $ | 3,309.5 | $ | 3,309.5 | |||||||||||||||||||||||
| Other investments | ||||||||||||||||||||||||||||||||
| Time deposits | 2 | 9.2 | 9.2 | 9.8 | 9.8 | |||||||||||||||||||||||||||
| Equity securities | 3 | 291.4 | 291.4 | 270.9 | 270.9 | |||||||||||||||||||||||||||
| Financial Liability | ||||||||||||||||||||||||||||||||
| Debt | 2 | $ | 2,362.0 | $ | 1,970.9 | $ | 2,780.3 | $ | 2,387.0 | |||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 10, 2025 | Showing above |
| 2024 | Nov 12, 2024 | |
| 2023 | Nov 14, 2023 | |
| 2022 | Nov 14, 2022 | |
| 2021 | Nov 19, 2021 | |
| 2020 | Nov 23, 2020 | |
| 2019 | Nov 12, 2019 | |
| 2018 | Nov 9, 2018 | |
| 2017 | Nov 13, 2017 | |
| 2016 | Nov 14, 2016 | |
| 2015 | Nov 12, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.