FRANKLIN RESOURCES INC | 2013 | FY | 3


The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements were as follows:
(in millions)
 
 
 
 
 
 
 
 
as of September 30, 2013
 
Fair Value
 
Valuation Technique
 
Significant Unobservable Inputs
 
Range (Weighted Average)
Life settlement contracts
 
$
13.8

 
Discounted cash flow
 
Life expectancy
 
25–160 months (76)
Discount rate
 
3.3%–21.7% (11.7%)
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities
 
97.7

 
Discounted cash flow
 
AUM growth rate
 
6.0%–25.0% (14.6%)
EBITDA margin
 
26.4% - 38.9% (34.4%)
Discount rate
 
14.0%
(in millions)
 
 
 
 
 
 
 
 
as of September 30, 2012
 
Fair Value
 
Valuation Technique
 
Significant Unobservable Inputs
 
Range (Weighted Average)
Life settlement contracts
 
$
12.1

 
Discounted cash flow
 
Life expectancy
 
22–171 months (82)
Discount rate
 
1.5%–22.3% (11.7%)

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