Portfolio Holdings for Franklin Income Fund as of December 31, 2009

The following portfolio data for the Franklin Templeton funds is made available to the public under our Portfolio
Holdings Release Policy and is "as of" the date indicated. This portfolio data should not be relied upon as a complete
listing of a fund's holdings (or of a fund's top holdings) as information on particular holdings may be withheld if it is in the
fund's interest to do so.
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
ABBOTT LABORATORIES (7,398) ($221,940) N/A 02/20/10
ABBOTT LABORATORIES 1,739,800 $94,888,692 N/A N/A
ABX 12.5% YES NOTES ISSUED BY 5,000,000 $202,602,500 N/A 04/01/10
ADVANCED MICRO DEVICES INC 10,000,000 $9,012,500 6% 05/01/15
ADVANCED MICRO DEVICES INC 65,700,000 $65,782,125 8.125% 12/15/17
ADVANCED MICRO DEVICES INC 84,550,000 $83,493,125 5.75% 08/15/12
AES CORP 61,000,000 $62,906,250 8% 10/15/17
AFLAC INC 13,200,000 $15,282,286 8.5% 05/15/19
AGL RESOURCES INC 3,000,000 $111,390,000 N/A N/A
ALLIANCE ONE INTERNATIONAL INC 10,600,000 $11,183,000 10% 07/15/16
ALLIANCE ONE INTERNATIONAL INC 22,500,000 $23,737,500 10% 07/15/16
ALLIANT ENERGY CORP 662,257 $20,371,025 N/A N/A
ALLISON TRANSMISSION INC 173,180,253 $159,369,128 FLOATER 08/07/14
ALON REFINING KROTZ SPRINGS IN 30,000,000 $28,275,000 13.5% 10/15/14
ALTEGRITY INC 20,600,000 $18,488,500 10.5% 11/01/15
ALTEGRITY INC 107,518,797 $96,901,315 FLOATER 02/21/15
AMEREN CORP 10,000,000 $284,100,000 N/A N/A
AMERICAN AIRLINES INC 67,500,000 $71,043,750 10.5% 10/15/12
AMERICAN ELECTRIC POWER CO INC 10,000,000 $352,600,000 N/A N/A
AMERICAN WATER WORKS CO INC 1,388,400 $31,308,420 N/A N/A
ANGLOGOLD ASHANTI LTD 2,884,064 $116,458,504 N/A N/A
ANTERO RESOURCES FINANCE 92,650,000 $94,966,250 9.375% 12/01/17
APRIA HEALTHCARE GROUP INC 14,000,000 $15,470,000 12.375% 11/01/14
APRIA HEALTHCARE GROUP INC 32,300,000 $35,610,750 11.25% 11/01/14
ASHLAND INC 35,000,000 $38,500,000 9.125% 06/01/17
AT&T INC 16,697,000 $472,859,040 N/A N/A
BAC 10% ELN'S ISSUED BY CREDIT 6,310,000 $99,162,912 N/A 06/03/10
BAC 11.10% ELN'S ISSUED BY CRE 8,850,000 $141,038,025 N/A 04/16/10
BAC 8% PERQS ISSUED BY MORGAN 5,685,000 $87,607,555 N/A 03/09/10
BALL CORPORATION 14,800,000 $15,336,500 7.375% 09/01/19
BALL CORPORATION 15,400,000 $15,939,000 7.125% 09/01/16
BANK OF AMERICA CORP 100,000,000 $96,627,000 8.125% 05/15/18
BANK OF AMERICA CORP 580,000 $510,405,800 N/A 12/31/49
BANK OF AMERICA CORP 35,386,000 $533,267,020 N/A N/A
BARCLAYS PLC 15,000,000 $65,613,614 N/A N/A
BAUSCH & LOMB INC 8,315,391 $7,938,604 FLOATER 04/28/15
BAUSCH & LOMB INC 34,242,000 $32,690,426 FLOATER 04/28/15
BERRY PETROLEUM CO 15,300,000 $16,715,250 10.25% 06/01/14
BILL BARRETT CORP 15,000,000 $16,050,000 9.875% 07/15/16
BNY MONEY FUND NEW SERIES 451,667 $361,334 N/A N/A

Page 1 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
BOISE CASCADE LLC 15,000,000 $13,575,000 7.125% 10/15/14
C 17% YEELDS ISSUED BY BARCLAY 21,506,000 $76,275,115 N/A 03/29/10
CABLEVISION SYSTEMS CORP 100,000,000 $104,625,000 8.625% 09/15/17
CABLEVISION SYSTEMS CORP 450,000,000 $478,125,000 8% 04/15/12
CALLON PETROLEUM CO 188,157 $2,756,500 N/A 02/01/49
CALLON PETROLEUM CO 2,299,688 $3,334,547 N/A N/A
CALLON PETROLEUM CO 83,625,000 $62,718,750 13% 09/15/16
CALPINE CONSTRUCTION FINANCE 100,000,000 $103,500,000 8% 06/01/16
CALPINE CORP 125,000,000 $0 N/A N/A
CANADIAN OIL SANDS TRUST 25,847,400 $722,541,741 N/A N/A
CAPITAL ONE CAPITAL V 24,000,000 $27,972,360 10.25% 08/15/39
CASE NEW HOLLAND INC 201,050,000 $206,327,562 7.75% 09/01/13
CB RICHARD ELLIS SERVICES INC 35,000,000 $39,025,000 11.625% 06/15/17
CBS CORP 15,000,000 $17,113,740 8.2% 05/15/14
CBS CORP 100,000,000 $120,232,500 8.875% 05/15/19
CC HOLDINGS GS V LLC 72,250,000 $77,307,500 7.75% 05/01/17
CCH II LLC/CCH II CAPITAL CORP 227,347,163 $266,564,548 13.5% 11/30/16
CCO HLDGS LLC / CCO HLDGS CAP 80,000,000 $82,500,000 8.75% 11/15/13
CEMEX FINANCE LLC 50,000,000 $51,925,264 9.5% 12/14/16
CENTERPOINT ENERGY INC 6,000,000 $88,140,000 N/A N/A
CEQUEL COMMUNICATIONS HOLDINGS 60,000,000 $60,900,000 8.625% 11/15/17
CERIDIAN CORP 75,000,000 $71,906,250 11.25% 11/15/15
CEVA GROUP PLC 13,684,210 $11,540,346 FLOATER 08/01/12
CEVA GROUP PLC 11,800,000 $12,168,750 11.625% 10/01/16
CEVA GROUP PLC 77,878,703 $76,720,406 12% 09/01/14
CEVA GROUP PLC 113,698,684 $95,601,605 FLOATER 08/01/12
CEVA GROUP PLC 125,000,000 $117,822,933 10% 09/01/14
CHARTER COMMUNICATIONS INC 2,112,650 $12,570,267 N/A 11/30/14
CHARTER COMMUNICATIONS INC 4,084,845 $140,927,152 N/A N/A
CHARTER COMMUNICATIONS INC 11,871,333 $409,560,988 N/A N/A
CHESAPEAKE ENERGY CORP 55,000,000 $57,887,500 7.625% 07/15/13
CHESAPEAKE ENERGY CORP 158,000,000 $153,260,000 6.875% 11/15/20
CHESAPEAKE ENERGY CORP 165,000,000 $159,225,000 6.25% 01/15/18
CHESAPEAKE ENERGY CORP 182,000,000 $179,270,000 6.5% 08/15/17
CHESAPEAKE ENERGY CORP 188,065,000 $190,415,812 7.25% 12/15/18
CHESAPEAKE ENERGY CORP 220,000,000 $242,550,000 9.5% 02/15/15
CHK 12% ELN'S ISSUED BY DEUTSC 6,200,000 $169,671,680 N/A 11/04/10
CINEMARK USA INC 16,700,000 $17,451,500 8.625% 06/15/19
CITIGROUP INC 45,000,000 $149,400,000 N/A N/A
CLEAR CHANNEL COMMUNICATIONS I 635,000,000 $523,081,250 FLOATER 11/13/15
CLEAR CHANNEL WORLDWIDE HLDGS 28,700,000 $29,417,500 9.25% 12/15/17
CLEAR CHANNEL WORLDWIDE HLDGS 116,050,000 $120,111,750 9.25% 12/15/17
CLEARWIRE COMMUNICATIONS LLC/F 50,000,000 $51,250,000 12% 12/01/15
CLEARWIRE CORPORATION 145,000,000 $147,175,000 12% 12/01/15

Page 2 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
CMCSA 8% ELN'S ISSUED BY JP MO 5,000,000 $89,373,000 N/A 12/14/10
CMS ENERGY CORP 50,000,000 $62,312,500 5.5% 06/15/29
CMS ENERGY CORP 61,850,000 $68,229,147 8.75% 06/15/19
COLONY FINANCIAL INC 1,250,000 $25,650,000 N/A N/A
COMMUNITY HEALTH SYSTEMS INC 375,000,000 $389,062,500 8.875% 07/15/15
CONOCOPHILLIPS 11,200,000 $571,088,000 N/A N/A
CONSOLIDATED EDISON INC 5,300,000 $244,489,000 N/A N/A
CRICKET COMMUNICATIONS INC 30,000,000 $30,075,000 7.75% 05/15/16
CRICKET COMMUNICATIONS INC 65,000,000 $65,650,000 9.375% 11/01/14
CROWN CASTLE INTERNATIONAL COR 41,200,000 $40,994,000 7.125% 11/01/19
CROWN CASTLE INTERNATIONAL COR 55,000,000 $58,850,000 9% 01/15/15
CSC HOLDINGS INC 67,300,000 $72,011,000 8.5% 04/15/14
DAVITA INC 50,000,000 $50,375,000 6.625% 03/15/13
DAVITA INC 90,000,000 $90,675,000 7.25% 03/15/15
DELTA AIR LINES INC 83,150,000 $86,891,750 9.5% 09/15/14
DELTA AIR LINES INC 130,000,000 $130,650,000 12.25% 03/15/15
DEX MEDIA INC 70,000,000 $17,850,000 9% 11/15/13
DEX MEDIA INC 95,600,000 $24,378,000 8% 11/15/13
DEX MEDIA INC 220,000,000 $56,100,000 9% 11/15/13
DEX MEDIA WEST 9,416,462 $8,725,925 FLOATER 10/24/14
DEX MEDIA WEST 114,100,000 $35,941,500 9.875% 08/15/13
DEX MEDIA WEST 106,500,000 $115,552,500 8.5% 08/15/10
DIAGEO PLC 10,000,000 $174,326,957 N/A N/A
DIGICEL GROUP LTD 65,000,000 $63,943,750 8.875% 01/15/15
DISH DBS CORP 188,000,000 $197,400,000 7.875% 09/01/19
DOLE FOOD CO INC 30,000,000 $30,600,000 8% 10/01/16
DOLLAR GENERAL CORP 137,520,000 $159,523,200 11.875% 07/15/17
DOLLAR GENERAL CORP 391,698,000 $435,764,025 10.625% 07/15/15
DOMINION RESOURCES INC 10,500,000 $414,750,000 N/A N/A
DTE ENERGY COMPANY 4,300,000 $190,705,000 N/A N/A
DUKE ENERGY CORP 33,500,000 $583,570,000 N/A N/A
DUKE REALTY LP 24,000,000 $24,203,808 6.25% 05/15/13
DUKE REALTY LP 35,500,000 $33,572,014 6.5% 01/15/18
DUKE REALTY LP 37,500,000 $35,128,672 5.95% 02/15/17
DUKE REALTY LP 59,400,000 $62,379,325 8.25% 08/15/19
DUPONT FABROS TECHNOLOGY LP 25,000,000 $25,468,750 8.5% 12/15/17
DVN 10.55% YES NOTES ISSUED BY 1,600,000 $97,443,200 N/A 07/21/10
DYNEGY HOLDINGS INC 105,000,000 $91,612,500 7.75% 06/01/19
DYNEGY HOLDINGS INC 115,000,000 $106,375,000 7.5% 06/01/15
DYNEGY HOLDINGS INC 170,000,000 $159,800,000 7.5% 06/01/15
DYNEGY HOLDINGS INC 250,000,000 $238,750,000 8.375% 05/01/16
ECHOSTAR DBS CORP 133,000,000 $140,148,750 7.75% 05/31/15
ECHOSTAR DBS CORP 265,000,000 $271,956,250 7.125% 02/01/16
EL PASO CORP 50,000,000 $49,803,250 7.25% 06/01/18

Page 3 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
EL PASO CORP 176,600,000 $207,946,500 12% 12/12/13
EL PASO CORP 250,000,000 $238,302,750 7.75% 01/15/32
ENCORE ACQUISITION CO 17,000,000 $17,977,500 9.5% 05/01/16
ENERGY FUTURE HOLDINGS CORP 187,500,000 $152,812,500 10.875% 11/01/17
ENERGY FUTURE HOLDINGS CORP 344,500,000 $243,733,750 12% 11/01/17
ENERGY FUTURE HOLDINGS CORP 396,220,000 $283,697,085 5.55% 11/15/14
EXPRO FINANCE LUXEMBOURG 56,800,000 $56,009,912 8.5% 12/15/16
EXXON MOBIL CORP 11,000,000 $756,470,000 N/A N/A
FANNIE MAE 2,399,400 $2,183,454 N/A N/A
FANNIE MAE 3,000,000 $2,820,000 N/A N/A
FANNIE MAE 3,239,000 $5,911,175 N/A 05/13/11
FEDERAL HOME LOAN MORTGAGE COR 16,608,000 $16,940,160 N/A N/A
FEDERAL NATIONAL MORTGAGE ASSO 11,784,000 $12,726,720 N/A N/A
FEDERAL NATIONAL MORTGAGE ASSO 4,700 $13,866,175 N/A 12/31/49
FELCOR LODGING TRUST INC 3,000,000 $31,950,000 N/A 12/31/49
FELCOR LODGING TRUST INC 140,450,000 $142,205,625 10% 10/01/14
FIRST DATA CORP 244,999,999 $218,723,749 FLOATER 09/24/14
FIRST DATA CORP 270,000,000 $253,125,000 9.875% 09/24/15
FIRST DATA CORP 328,447,367 $290,734,712 FLOATER 09/24/14
FIRSTENERGY CORP 3,000,000 $142,470,000 N/A N/A
FLEXTRONICS INTERNATIONAL LTD 75,000,000 $74,156,250 6.25% 11/15/14
FORD MOTOR CREDIT CO LLC 20,000,000 $21,000,000 8.7% 10/01/14
FORD MOTOR CREDIT CO LLC 25,000,000 $25,058,825 7% 10/01/13
FORD MOTOR CREDIT CO LLC 80,000,000 $74,355,713 3.0344% 01/13/12
FORD MOTOR CREDIT CO LLC 75,000,000 $78,750,000 9.875% 08/10/11
FORD MOTOR CREDIT CO LLC 120,000,000 $139,800,000 12% 05/15/15
FORD MOTOR CREDIT CO LLC 185,000,000 $186,571,575 7.25% 10/25/11
FORD MOTOR CREDIT CO LLC 190,000,000 $187,657,746 5.5036% 06/15/11
FORD MOTOR CREDIT CO LLC 183,000,000 $188,961,042 9.75% 09/15/10
FORD MOTOR CREDIT CO LLC 365,000,000 $373,212,500 7.375% 02/01/11
FORD MOTOR CREDIT CO LLC 400,000,000 $404,498,800 7.5% 08/01/12
FORD MOTOR CREDIT CO LLC 400,000,000 $413,072,800 8% 06/01/14
FOREST CITY ENTERPRISES INC 42,250,000 $37,919,375 7.625% 06/01/15
FOREST OIL CORP 47,875,000 $47,515,937 7.25% 06/15/19
FOREST OIL CORP 115,000,000 $120,750,000 8.5% 02/15/14
FPL GROUP INC 975,000 $51,331,312 N/A 06/01/12
FPL GROUP INC 6,000,000 $322,200,000 N/A N/A
FREEPORT-MCMORAN COPPER & GOLD 82,400,000 $89,911,996 8.25% 04/01/15
FREEPORT-MCMORAN COPPER & GOLD 110,000,000 $120,615,110 8.375% 04/01/17
FREESCALE SEMICONDUCTOR INC 77,231,324 $67,867,026 FLOATER 12/01/13
FREESCALE SEMICONDUCTOR INC 162,500,000 $131,625,000 10.125% 12/15/16
FREESCALE SEMICONDUCTOR INC 290,000,000 $267,525,000 8.875% 12/15/14
FREESCALE SEMICONDUCTOR INC 353,531,239 $365,021,004 FLOATER 12/15/14
GMAC INC 115,000,000 $115,071,875 7.75% 01/19/10

Page 4 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
GMAC INC 148,000,000 $148,000,000 7.25% 03/02/11
GMAC INC 170,000,000 $167,450,000 6.875% 08/28/12
GMAC INC 267,636 $176,539,396 N/A N/A
GMAC INC 310,000,000 $307,675,000 6.875% 09/15/11
GREENBRIER COMPANIES INC 31,706,000 $26,355,612 8.375% 05/15/15
HAL 12% ELN'S ISSUED BY CREDIT 4,000,000 $95,233,200 N/A 07/22/10
HANESBRANDS INC 25,300,000 $25,900,875 8% 12/15/16
HARRAHS OPERATING CO INC 50,000,000 $52,500,000 11.25% 06/01/17
HARRAHS OPERATING CO INC 100,000,000 $99,718,800 FLOATER 10/01/16
HARRAHS OPERATING ESCROW 100,000,000 $105,000,000 11.25% 06/01/17
HCA INC 56,515,435 $54,014,627 FLOATER 11/18/13
HCA INC 61,200,717 $58,557,213 FLOATER 11/19/12
HCA INC 62,320,000 $61,696,800 6.75% 07/15/13
HCA INC 169,455,000 $160,770,431 6.375% 01/15/15
HCA INC 165,000,000 $172,218,750 7.875% 02/15/20
HCA INC 160,000,000 $173,200,000 8.5% 04/15/19
HCA INC 195,000,000 $186,225,000 6.5% 02/15/16
HCA INC 300,000,000 $322,875,000 9.25% 11/15/16
HCP INC 15,040,000 $13,944,530 5.625% 05/01/17
HCP INC 23,000,000 $22,544,945 6.3% 09/15/16
HCP INC 25,615,000 $25,767,204 5.625% 02/28/13
HCP INC 33,325,000 $31,491,691 6% 01/30/17
HCP INC 70,500,000 $69,033,258 6.7% 01/30/18
HEADWATERS INC 15,000,000 $15,712,500 11.375% 11/01/14
HERTZ CORP 140,000,000 $150,150,000 10.5% 01/01/16
HERTZ CORP 445,000,000 $457,237,500 8.875% 01/01/14
HOLLY CORP 35,000,000 $37,012,500 9.875% 06/15/17
HOST HOTELS & RESORTS LP 15,500,000 $15,848,750 7% 08/15/12
HOST HOTELS & RESORTS LP 85,500,000 $87,316,875 7.125% 11/01/13
HOST HOTELS & RESORTS LP 110,000,000 $111,100,000 6.875% 11/01/14
HOST HOTELS & RESORTS LP 120,956,000 $114,454,615 2.625% 04/15/27
HOST HOTELS & RESORTS LP 125,750,000 $136,438,750 9% 05/15/17
HOST HOTELS & RESORTS LP 195,000,000 $194,512,500 6.75% 06/01/16
HOST HOTELS & RESORTS LP 240,000,000 $236,400,000 6.375% 03/15/15
HSBC HOLDINGS PLC 35,000,000 $399,658,608 N/A N/A
HUNTSMAN INTL LLC 15,000,000 $14,437,500 7.375% 01/01/15
HUNTSMAN INTL LLC 33,500,000 $32,913,750 7.875% 11/15/14
HUNTSMAN INTL LLC 96,000,000 $85,440,000 5.5% 06/30/16
IDEARC INC 24,146,182 $12,641,540 FLOATER 11/17/14
IDEARC INC 43,684,878 $22,705,215 FLOATER 11/17/13
INEOS GROUP HLDGS PLC 180,000,000 $165,271,644 7.875% 02/15/16
INTC 10% YES NOTES ISSUED BY G 7,500,000 $139,957,500 N/A 06/03/10
INTELSAT JACKSON HOLDING LTD 30,000,000 $31,050,000 8.5% 11/01/19
INTERGEN NV 80,000,000 $83,800,000 9% 06/30/17

Page 5 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
ISTAR FINANCIAL INC 6,142,000 $5,527,800 8% 03/15/11
ISTAR FINANCIAL INC 5,213,500 $13,033,750 N/A N/A
ISTAR FINANCIAL INC 67,350,000 $59,268,000 10% 06/15/14
ISTAR FINANCIAL INC 174,100,000 $113,165,000 8.625% 06/01/13
ISTAR FINANCIAL INC 250,000,000 $137,825,000 0.7506% 10/01/12
JABIL CIRCUIT INC 45,400,000 $48,294,250 7.75% 07/15/16
JARDEN CORP 34,000,000 $35,275,000 8% 05/01/16
JARDEN CORP 94,675,279 $92,359,143 FLOATER 01/24/12
JBS USA LLC 144,500,000 $165,813,750 11.625% 05/01/14
JOHNSON & JOHNSON 5,000,000 $324,550,000 N/A N/A
JOHNSONDIVERSEY HOLDINGS INC 49,200,000 $49,692,000 10.5% 05/15/20
JOHNSONDIVERSEY INC 30,000,000 $30,375,000 8.25% 11/15/19
JOHNSONDIVERSEY INC 40,000,000 $40,375,000 FLOATER 11/24/15
JPMORGAN CHASE & CO 10,000,000 $415,300,000 N/A N/A
JPMORGAN CHASE & CO 865,000,000 $895,069,995 7.9% 04/30/18
KB HOME 8,346,000 $8,408,595 6.375% 08/15/11
KB HOME 49,000,000 $51,695,000 9.1% 09/15/17
KB HOME 70,500,000 $67,327,500 7.25% 06/15/18
KB HOME 75,000,000 $70,875,000 5.75% 02/01/14
KB HOME 90,000,000 $84,375,000 6.25% 06/15/15
LAMAR MEDIA CORP 30,000,000 $33,262,500 9.75% 04/01/14
LEHMAN BROTHERS HOLDINGS INC 550,000 $2,172,500 N/A 07/01/11
LEHMAN BROTHERS HOLDINGS INC 1,000,650 $3,021,963 N/A 12/31/49
LEHMAN BROTHERS HOLDINGS INC 286,300,000 $57,260,000 6.2% 09/26/14
LEHMAN BROTHERS INTO GE 7.50% 900,000,000 $56,700,000 7.5% 02/20/49
LEHMAN BROTHERS INTO TGT 7.50% 400,000,000 $41,300,000 7.5% 02/20/49
LIBERTY GLOBAL INC 122,750,000 $133,950,937 4.5% 11/15/16
LIBERTY MUTUAL GROUP 100,000,000 $107,000,000 10.75% 06/15/2088
LIMITED BRANDS INC 40,000,000 $43,700,000 8.5% 06/15/19
LUCENT TECHNOLOGIES INC 180,000,000 $129,825,000 6.45% 03/15/29
MARINER ENERGY INC 25,800,000 $28,896,000 11.75% 06/30/16
MARINER ENERGY INC 36,600,000 $35,319,000 8% 05/15/17
MARINER ENERGY INC 46,500,000 $46,500,000 7.5% 04/15/13
MERCK & CO INC (3,753) ($150,120) N/A 02/20/10
MERCK & CO INC 23,000,000 $852,380,000 N/A N/A
MGM MIRAGE 25,000,000 $22,437,500 11.375% 03/01/18
MGM MIRAGE 50,000,000 $50,000,000 8.5% 09/15/10
MGM MIRAGE 70,000,000 $61,075,000 6.75% 04/01/13
MGM MIRAGE 70,000,000 $80,850,000 13% 11/15/13
MICHAELS STORES INC 48,235,000 $50,164,400 10% 11/01/14
MOTORS LIQUIDATION CO 11,000,000 $63,800,000 N/A 07/15/33
MOTORS LIQUIDATION CO 510,000,000 $140,250,000 8.375% 07/15/33
NALCO CO 34,650,000 $36,988,875 8.25% 05/15/17
NALCO FINANCE HOLDINGS 380,000,000 $389,500,000 9% 02/01/14

Page 6 of 10
Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
NAVISTAR INTERNATIONAL CORP 33,300,000 $34,299,000 8.25% 11/01/21
NEWFIELD EXPLORATION COMPANY 12,600,000 $12,789,000 7.125% 05/15/18
NEWFIELD EXPLORATION COMPANY 128,000,000 $128,960,000 6.625% 04/15/16
NEWMONT MINING CORP 3,600,000 $171,324,000 N/A N/A
NEWPAGE CORP 35,150,000 $35,677,250 11.375% 12/31/14
NEWPAGE CORP 55,300,000 $39,816,000 10% 05/01/12
NISOURCE INC 2,900,000 $45,356,000 N/A N/A
NORTEK INC 40,000 $1,400,000 N/A N/A
NORTEK INC 40,177,777 $42,186,665 11% 12/01/13
NOVELIS CORPORATION (US) 133,541,279 $122,285,619 FLOATER 07/07/14
OPTI CANADA INC 75,000,000 $61,875,000 7.875% 12/15/14
OWENS-BROCKWAY GLASS CONTAINER 51,850,000 $53,794,375 7.375% 05/15/16
PEPSICO INC 1,000,000 $61,310,000 N/A N/A
PETROHAWK ENERGY CORP 85,000,000 $89,250,000 9.125% 07/15/13
PETROHAWK ENERGY CORP 129,050,000 $141,632,375 10.5% 08/01/14
PETROHAWK ENERGY CORP 141,000,000 $143,115,000 7.875% 06/01/15
PETROPLUS FINANCE LTD 35,000,000 $31,500,000 7% 05/01/17
PETROPLUS FINANCE LTD 80,840,000 $79,671,688 9.375% 09/15/19
PETROPLUS FINANCE LTD 95,000,000 $89,300,000 6.75% 05/01/14
PG&E CORP 10,200,000 $463,080,000 N/A N/A
PINNACLE WEST CAPITAL CORP 4,800,000 $178,464,000 N/A N/A
PIONEER NATURAL RESOURCES CO 25,000,000 $24,851,100 6.65% 03/15/17
PIONEER NATURAL RESOURCES CO 110,000,000 $109,726,540 6.875% 05/01/18
PLAINS EXPLORATION & PRODUCTIO 50,000,000 $51,625,000 8.625% 10/15/19
PLAINS EXPLORATION & PRODUCTIO 80,000,000 $88,000,000 10% 03/01/16
PLAINS EXPLORATION & PRODUCTIO 95,500,000 $97,648,750 7.75% 06/15/15
PORTLAND GENERAL ELECTRIC CO 2,950,000 $60,917,500 N/A N/A
PPL CORP 1,000,000 $32,980,000 N/A N/A
PRIDE INTERNATIONAL INC 33,000,000 $38,280,000 8.5% 06/15/19
PROGRESS ENERGY INC 9,400,000 $390,570,000 N/A N/A
PUBLIC SERVICE CO OF NEW MEXIC 55,000,000 $57,839,100 7.95% 05/15/18
PUBLIC SERVICE ENTERPRISE GROU 15,000,000 $506,250,000 N/A N/A
QUICKSILVER RESOURCES INC 36,800,000 $41,952,000 11.75% 01/01/16
QUICKSILVER RESOURCES INC 90,000,000 $94,050,000 9.125% 08/15/19
QUINTILES TRANSNATIONAL CORP 150,000,000 $151,125,000 9.5% 12/30/14
QVC INC 43,800,000 $44,895,000 7.5% 10/01/19
QWEST CORP 87,750,000 $94,550,625 8.375% 05/01/16
R H DONNELLEY INC 50,201,148 $46,084,654 FLOATER 06/30/11
R.H. DONNELLEY CORP 55,000,000 $5,431,250 6.875% 01/15/13
R.H. DONNELLEY CORP 142,000,000 $14,022,500 6.875% 01/15/13
R.H. DONNELLEY CORP 209,450,000 $20,683,187 6.875% 01/15/13
R.H. DONNELLEY CORP 213,100,000 $21,043,625 8.875% 01/15/16
R.H. DONNELLEY CORP 501,500,000 $49,523,125 8.875% 10/15/17
RANGE RESOURCES CORP 40,000,000 $43,000,000 8% 05/15/19

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Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
RBS GLOBAL & REXNORD CORP 97,000,000 $96,515,000 11.75% 08/01/16
RBS GLOBAL & REXNORD CORP 98,206,000 $99,188,060 9.5% 08/01/14
RBS GLOBAL & REXNORD CORP 173,274,000 $175,006,740 9.5% 08/01/14
REGAL CINEMAS CORP 18,000,000 $18,810,000 8.625% 07/15/19
REYNOLDS GROUP ESCROW 40,000,000 $41,100,000 7.75% 10/15/16
RRI ENERGY INC 150,000,000 $149,250,000 7.625% 06/15/14
RRI ENERGY INC 175,000,000 $172,812,500 7.875% 06/15/17
RSC EQUIP RENT/RSC HLDGS 58,000,000 $58,580,000 10.25% 11/15/19
RSC EQUIPMENT RENTAL INC 30,000,000 $33,037,500 10% 07/15/17
SABINE PASS LNG LP 105,000,000 $95,812,500 7.25% 11/30/13
SABINE PASS LNG LP 280,000,000 $234,500,000 7.5% 11/30/16
SANDRIDGE ENERGY INC 30,170,000 $30,320,850 8.625% 04/01/15
SANDRIDGE ENERGY INC 300,000 $43,354,500 N/A 12/31/49
SANDRIDGE ENERGY INC 59,150,000 $59,445,750 8.75% 01/15/20
SANDRIDGE ENERGY INC 68,925,000 $61,858,464 3.8756% 04/01/14
SANDRIDGE ENERGY INC 106,300,000 $112,412,250 9.875% 05/15/16
SANDRIDGE ENERGY INC 126,745,000 $125,160,687 8% 06/01/18
SANMINA-SCI CORP 100,000,000 $100,250,000 8.125% 03/01/16
SANMINA-SCI CORP 150,000,000 $148,687,500 6.75% 03/01/13
SEACOR HOLDINGS INC 35,000,000 $35,600,285 7.375% 10/01/19
SEMPRA ENERGY 5,900,000 $335,592,000 N/A N/A
SESI LLC 117,000,000 $115,830,000 6.875% 06/01/14
SOUTHERN CO 17,000,000 $572,560,000 N/A N/A
SPECTRA ENERGY CORPORATION 12,500,000 $258,125,000 N/A N/A
SPRINT NEXTEL CORP 80,200,000 $82,205,000 8.375% 08/15/17
STARWOOD HOTELS & RESORTS WORL 65,000,000 $69,712,500 7.875% 10/15/14
SUNGARD DATA SYSTEMS INC 35,000,000 $36,050,000 9.125% 08/15/13
SUNGARD DATA SYSTEMS INC 55,000,000 $60,843,750 10.625% 05/15/15
SUNGARD DATA SYSTEMS INC 85,000,000 $90,950,000 10.25% 08/15/15
SUPERVALU INC 108,500,000 $110,670,000 8% 05/01/16
SWEEP MONEYMARKET PORTFOLIO 226,950,473 $226,950,473 N/A N/A
TALECRIS BIOTHERAPEUTICS HOLDI 36,250,000 $37,156,250 7.75% 11/15/16
TARGET CORP 2,000,000 $97,400,000 N/A N/A
TECK RESOURCES LIMITED 61,900,000 $71,726,625 9.75% 05/15/14
TECK RESOURCES LIMITED 66,675,000 $80,010,000 10.75% 05/15/19
TECK RESOURCES LIMITED 81,300,000 $94,917,750 10.25% 05/15/16
TECO ENERGY INC 10,000,000 $165,300,000 N/A N/A
TENET HEALTHCARE CORP 30,000,000 $32,700,000 8.875% 07/01/19
TENET HEALTHCARE CORP 115,000,000 $123,050,000 9.25% 02/01/15
TENET HEALTHCARE CORP 250,000 $234,861,114 N/A 10/01/12
TENET HEALTHCARE CORP 300,000,000 $325,500,000 9% 05/01/15
TENET HEALTHCARE CORP 300,000,000 $337,500,000 10% 05/01/18
TENET HEALTHCARE CORP 446,365,000 $449,712,737 7.375% 02/01/13
TEREX CORP 185,000,000 $179,912,500 8% 11/15/17

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Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
TESORO CORPORATION 16,000,000 $14,960,000 6.5% 06/01/17
TESORO CORPORATION 41,400,000 $43,056,000 9.75% 06/01/19
TESORO CORPORATION 100,000,000 $92,172,060 7.5% 07/17/12
TEXAS COMPETITIVE ELECTRIC HOL 100,685,407 $82,247,392 FLOATER 10/10/14
TEXAS COMPETITIVE ELECTRIC HOL 105,000,000 $84,525,000 FLOATER 10/10/14
TEXAS COMPETITIVE ELECTRIC HOL 172,115,895 $140,274,455 FLOATER 10/10/14
TEXAS COMPETITIVE ELECTRIC HOL 269,499,999 $218,160,249 FLOATER 10/10/14
TEXAS COMPETITIVE ELECTRIC HOL 284,250,000 $230,242,500 10.25% 11/01/15
TEXAS COMPETITIVE ELECTRIC HOL 425,000,000 $299,625,000 11.25% 11/01/16
TEXAS COMPETITIVE ELECTRIC HOL 695,000,000 $562,950,000 10.25% 11/01/15
TRANSDIGM INC 50,000,000 $50,937,500 7.75% 07/15/14
UNITED RENTALS NORTH AMERICA I 47,725,000 $44,980,812 7.75% 11/15/13
UNIVISION COMMUNICATIONS INC 20,000,000 $17,437,500 FLOATER 09/29/14
UNIVISION COMMUNICATIONS INC 26,500,000 $29,282,500 12% 07/01/14
UNIVISION COMMUNICATIONS INC 278,912,500 $245,791,640 10.5% 03/15/15
UPC GERMANY GMBH 23,100,000 $33,610,557 9.625% 12/01/19
UPC GERMANY GMBH 52,700,000 $53,490,500 8.125% 12/01/17
UPC GERMANY GMBH 43,900,000 $64,110,599 8.125% 12/01/17
UPC HOLDING BV 7,200,000 $7,387,560 9.875% 04/15/18
US ONCOLOGY HOLDINGS INC 87,311,000 $82,072,340 6.4275% 03/15/12
US ONCOLOGY INC 15,000,000 $15,825,000 10.75% 08/15/14
US ONCOLOGY INC 40,000,000 $42,200,000 9.125% 08/15/17
VANGUARD HEALTH HOLDING CO I L 23,900,000 $25,274,250 11.25% 10/01/15
VERIZON COMMUNICATIONS INC 9,000,000 $300,780,000 N/A N/A
VIASAT INC 49,250,000 $51,835,625 8.875% 09/15/16
VIRGIN MEDIA FINANCE PLC 74,800,000 $80,690,500 9.5% 08/15/16
VISANT HOLDING CORP 50,000,000 $51,625,000 8.75% 12/01/13
VODAFONE GROUP PLC 100,000,000 $230,561,459 N/A N/A
W&T OFFSHORE INC 156,255,000 $149,223,525 8.25% 06/15/14
WELLS FARGO & CO 463,516 $425,971,204 N/A 12/31/49
WELLS FARGO & CO 20,000,000 $536,400,000 N/A N/A
WELLS FARGO CAPITAL XIII 44,500,000 $43,387,500 7.7% 03/26/13
WELLS FARGO CAPITAL XV 449,600,000 $483,320,000 9.75% 09/26/13
WENDY'S/ARBY'S RESTAURANT LLC 37,500,000 $41,062,500 10% 07/15/16
WESTERN REFINING INC 15,000,000 $13,650,000 11.25% 06/15/17
WESTERN REFINING INC 25,000,000 $22,500,000 7.7536% 06/15/14
WFC 10% NOTES ISSUED BY JP MOR 3,575,000 $97,815,932 N/A 03/16/10
WFT 11% ELN'S ISSUED BY CREDIT 6,315,000 $122,060,109 N/A 09/03/10
WFT 12% YEELDS ISSUED BY BARCL 7,350,000 $143,613,855 N/A 11/05/10
WIND ACQUISITION FIN SA 53,500,000 $58,448,750 11.75% 07/15/17
WINDSTREAM CORP 70,750,000 $70,219,375 7.875% 11/01/17
WMG ACQUISITION CORP (WARNER M 42,700,000 $45,955,875 9.5% 06/15/16
WYNDHAM WORLDWIDE CORP 21,727,000 $20,324,630 6% 12/01/16
WYNDHAM WORLDWIDE CORP 75,000,000 $83,661,900 9.875% 05/01/14

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Portfolio Holdings for Franklin Income Fund as of December 31, 2009
Shares/ Coupon Maturity
Security Name Positions Market Value Rate Date
XCEL ENERGY INC 19,000,000 $407,550,000 N/A N/A
XRX 12% ELN'S ISSUED BY GOLDMA 13,400,000 $114,476,200 N/A 11/19/10
XTO 9% YES NOTES ISSUED BY GOL 3,600,000 $161,326,800 N/A 08/20/10

Important Legal Information

• Portfolio holdings are subject to change without notice and may not represent current or future portfolio
composition. The portfolio data is “as of” the date indicated and we disclaim any responsibility to update the
information.
• Unlike the fund’s regulatory filings, the portfolio data and its presentation in this document are not required to
conform to Generally Accepted Accounting Principles (GAAP) and Securities and Exchange Commission (SEC)
presentation requirements. Therefore, it differs from that in the complete statement of investments in the annual and
semiannual report to shareholders filed with the SEC on Form N-CSR, and the complete statement of investments
provided in the first and third quarter SEC Form N-Q filings for each fiscal year.
• The portfolio data is for information only. It does not constitute a recommendation or an offer for a particular security
or fund, nor should it be taken as a solicitation or a recommendation to buy or sell securities or other
investments.
• Investors should carefully consider a fund's investment goals, risks, charges and expenses before
investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor,
call us at 1-800/DIAL BEN (1-800/342-5236) or visit our website at franklintempleton.com. Please read the
prospectus carefully before investing. Franklin Templeton Distributors Inc., One Franklin Parkway, San

Copyright © 2004. Franklin Templeton Investments ©. All rights reserved.

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