Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | 20-May-14 | Sep. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'LEGG MASON, INC. | ' | ' |
Entity Central Index Key | '0000704051 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 116,803,119 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q4 | ' | ' |
Trading Symbol | 'LM | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $3,572,036,456 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Liabilities | ' | ' |
Current portion of long-term debt | $438 | $50,438 |
Consolidated Legg Mason, Inc. | ' | ' |
Current Assets | ' | ' |
Cash and cash equivalents | 858,022 | 933,036 |
Cash and cash equivalents of consolidated investment vehicles | 56,372 | 46,541 |
Restricted cash | 13,455 | 8,812 |
Receivables: | ' | ' |
Investment advisory and related fees | 348,633 | 350,726 |
Other | 68,186 | 72,392 |
Investment securities | 467,726 | 371,080 |
Investment securities of consolidated investment vehicles | 50,463 | 24,792 |
Deferred income taxes | 186,147 | 85,257 |
Other | 47,677 | 48,239 |
Other assets of consolidated investment vehicles | 31,702 | 1,987 |
Total current assets | 2,128,383 | 1,942,862 |
Fixed assets, net | 189,241 | 201,819 |
Intangible assets, net | 3,171,773 | 3,177,562 |
Goodwill | 1,240,523 | 1,269,165 |
Investments of consolidated investment vehicles | 31,810 | 210,553 |
Deferred income taxes | 165,705 | 279,361 |
Other | 183,706 | 187,274 |
Other assets of consolidated investment vehicles | 208 | 1,064 |
Total assets | 7,111,349 | 7,269,660 |
Current Liabilities | ' | ' |
Accrued compensation | 425,466 | 351,965 |
Accounts payable and accrued expenses | 214,819 | 214,803 |
Current portion of long-term debt | 438 | 50,438 |
Other Liabilities | 91,586 | 74,940 |
Other current liabilities of consolidated investment vehicles | 88,936 | 10,320 |
Total current liabilities | 821,245 | 702,466 |
Deferred compensation | 49,618 | 56,809 |
Deferred income taxes | 265,583 | 161,298 |
Other | 166,209 | 204,446 |
Debt and other liabilities of consolidated investment vehicles | 0 | 2,930 |
Long-term debt | 1,038,826 | 1,094,516 |
Long-term debt of consolidated investment vehicles | 0 | 207,835 |
Total liabilities | 2,341,481 | 2,430,300 |
Commitments and Contingencies (Note 8) | ' | ' |
Redeemable noncontrolling interests | 45,144 | 21,009 |
Stockholders' Equity | ' | ' |
Common stock, par value $.10; authorized 500,000,000 shares; issued 117,173,639 shares in 2014 and 125,341,361 shares in 2013, respectively | 11,717 | 12,534 |
Additional paid-in capital | 3,148,396 | 3,449,190 |
Employee stock trust | -29,922 | -32,623 |
Deferred compensation employee stock trust | 29,922 | 32,623 |
Retained earnings | 1,526,662 | 1,304,259 |
Appropriated retained earnings for consolidated investment vehicle | 0 | 4,829 |
Accumulated other comprehensive income, net | 37,949 | 47,539 |
Total Stockholders' Equity | 4,724,724 | 4,818,351 |
Total liabilities and equity | $7,111,349 | $7,269,660 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Common Stock, Shares Authorized | 500,000,000 | ' |
Consolidated Legg Mason, Inc. | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.10 | $0.10 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 117,173,639 | 125,341,361 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Loss) (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Investment advisory fees | ' | ' | ' |
Separate accounts | $777,420 | $730,326 | $775,534 |
Funds | 1,501,278 | 1,446,066 | 1,491,325 |
Performance fees | 107,087 | 98,568 | 49,499 |
Distribution and service fees | 347,598 | 330,480 | 340,966 |
Other | 8,374 | 7,210 | 5,250 |
Total operating revenues | 2,741,757 | 2,612,650 | 2,662,574 |
Operating Expenses | ' | ' | ' |
Compensation and benefits | 1,210,387 | 1,188,470 | 1,109,671 |
Transition Related Compensation | 0 | 0 | 34,638 |
Total compensation and benefits | 1,210,387 | 1,188,470 | 1,144,309 |
Distribution and servicing | 619,070 | 600,644 | 649,739 |
Communications and technology | 157,872 | 149,645 | 164,712 |
Occupancy | 115,234 | 171,941 | 154,816 |
Amortization of intangible assets | 12,314 | 14,019 | 19,574 |
Impairment of intangible assets | 0 | 734,000 | 0 |
Other | 195,987 | 188,430 | 190,671 |
Total operating expenses | 2,310,864 | 3,047,149 | 2,323,821 |
Operating Income (Loss) | 430,893 | -434,499 | 338,753 |
Other Non-Operating Income (Expense) | ' | ' | ' |
Interest income | 6,367 | 7,590 | 11,481 |
Interest expense | -52,911 | -62,919 | -87,584 |
Other income (expense), net, including $68,975 debt extinguishment loss in 2013 | 32,818 | -17,958 | 22,097 |
Other non-operating income (loss) of consolidated investment vehicles, net | 2,474 | -2,821 | 18,336 |
Total other non-operating income (expense) | -11,252 | -76,108 | -35,670 |
Income (loss) before income tax provision (benefit) | 419,641 | -510,607 | 303,083 |
Income tax provision (benefit) | 137,805 | -150,859 | 72,052 |
Net Income (Loss) | 281,836 | -359,748 | 231,031 |
Less: Net income (loss) attributable to noncontrolling interests | -2,948 | -6,421 | 10,214 |
Net Income (Loss) Attributable to Legg Mason, Inc. | $284,784 | ($353,327) | $220,817 |
Net Income (Loss) per Share Attributable to Legg Mason, Inc. Common Shareholders: | ' | ' | ' |
Basic (in dollars per share) | $2.34 | ($2.65) | $1.54 |
Diluted (in dollars per share) | $2.33 | ($2.65) | $1.54 |
Statement_of_Income
Statement of Income (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Legg Mason, Inc. | ' | ' | ' |
Loss on extinguishment | $0 | $68,975 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Legg Mason, Inc. | ' | ' | ' |
Net Income (Loss) | $281,836 | ($359,748) | $231,031 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustment | -9,424 | -23,945 | -22,098 |
Unrealized gains (losses) on investment securities: | ' | ' | ' |
Unrealized holding gains (losses), net of tax provision (benefit) of $(123), $(1), and $132, respectively | -184 | -1 | 198 |
Reclassification adjustment for (gains) losses included in net income (loss) | 18 | 13 | 11 |
Net unrealized holding gains (losses) on investment securities | -166 | 12 | 209 |
Total other comprehensive income (loss) | -9,590 | -23,933 | -21,889 |
Comprehensive Income (Loss) | 272,246 | -383,681 | 209,142 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | -2,948 | -6,421 | 10,214 |
Comprehensive Income (Loss) Attributable to Legg Mason, Inc. | $275,194 | ($377,260) | $198,928 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Parentheticals) (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Legg Mason, Inc. | ' | ' | ' |
Unrealized holding gains (losses), net of tax provision (benefit) of $(123), $(1) and $132, respectively | ($123) | ($1) | $132 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. |
In Thousands | Common Stock | ADDITIONAL PAID-IN CAPITAL | EMPLOYEE STOCK TRUST | DEFERRED COMPENSATION EMPLOYEE STOCK TRUST | RETAINED EARNINGS | APPROPRIATED RETAINED EARNINGS FOR CONSOLIDATED INVESTMENT VEHICLE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET | ||
Beginning Balance at Mar. 31, 2011 | ' | ' | $15,022 | $4,111,095 | ($34,466) | $34,466 | $1,539,984 | $10,922 | $93,361 |
Stock options and other stock-based compensation | ' | ' | 17 | 16,508 | ' | ' | ' | ' | ' |
Deferred compensation employee stock trust | ' | ' | 7 | 2,020 | ' | ' | ' | ' | ' |
Deferred compensation, net | ' | ' | 124 | 32,193 | ' | ' | ' | ' | ' |
Equity Units exchanged | ' | ' | 183 | 102,831 | ' | ' | ' | ' | ' |
Employee tax withholdings by settlement of net share transactions | ' | ' | -6 | -1,525 | ' | ' | ' | ' | ' |
Shares repurchased and retired | -400,266 | ' | -1,360 | -398,906 | ' | ' | ' | ' | ' |
Redeemable noncontrolling interest for management equity plan | ' | 0 | ' | 0 | ' | ' | ' | ' | ' |
Allocation from 2.5% Convertible Senior Notes repurchase, net of tax | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Shares issued to plans | ' | ' | ' | ' | -2,027 | 2,027 | ' | ' | ' |
Distributions and forfeitures | ' | ' | ' | ' | 4,074 | -4,074 | ' | ' | ' |
Net Income (Loss) Attributable to Legg Mason, Inc. | ' | 220,817 | ' | ' | ' | ' | 220,817 | ' | ' |
Dividends declared | ' | ' | ' | ' | ' | ' | -45,406 | ' | ' |
Net income (loss) reclassified to appropriated retained earnings | ' | ' | ' | ' | ' | ' | ' | 1,299 | ' |
Net unrealized holding gains (losses) on investment securities | ' | 209 | ' | ' | ' | ' | ' | ' | 209 |
Foreign currency translation adjustment | ' | -22,098 | ' | ' | ' | ' | ' | ' | -22,098 |
Ending Balance at Mar. 31, 2012 | ' | 5,677,291 | 13,987 | 3,864,216 | -32,419 | 32,419 | 1,715,395 | 12,221 | 71,472 |
Stock options and other stock-based compensation | ' | ' | 8 | 5,198 | ' | ' | ' | ' | ' |
Deferred compensation employee stock trust | ' | ' | 8 | 1,803 | ' | ' | ' | ' | ' |
Deferred compensation, net | ' | ' | 192 | 44,246 | ' | ' | ' | ' | ' |
Equity Units exchanged | ' | ' | 0 | 0 | ' | ' | ' | ' | ' |
Employee tax withholdings by settlement of net share transactions | ' | ' | -41 | -11,303 | ' | ' | ' | ' | ' |
Shares repurchased and retired | -425,475 | ' | -1,620 | -423,855 | ' | ' | ' | ' | ' |
Redeemable noncontrolling interest for management equity plan | ' | 0 | ' | 0 | ' | ' | ' | ' | ' |
Allocation from 2.5% Convertible Senior Notes repurchase, net of tax | ' | ' | ' | -31,115 | ' | ' | ' | ' | ' |
Shares issued to plans | ' | ' | ' | ' | -1,811 | 1,811 | ' | ' | ' |
Distributions and forfeitures | ' | ' | ' | ' | 1,607 | -1,607 | ' | ' | ' |
Net Income (Loss) Attributable to Legg Mason, Inc. | ' | -353,327 | ' | ' | ' | ' | -353,327 | ' | ' |
Dividends declared | ' | ' | ' | ' | ' | ' | -57,809 | ' | ' |
Net income (loss) reclassified to appropriated retained earnings | ' | ' | ' | ' | ' | ' | ' | -7,392 | ' |
Net unrealized holding gains (losses) on investment securities | ' | 12 | ' | ' | ' | ' | ' | ' | 12 |
Foreign currency translation adjustment | ' | -23,945 | ' | ' | ' | ' | ' | ' | -23,945 |
Ending Balance at Mar. 31, 2013 | ' | 4,818,351 | 12,534 | 3,449,190 | -32,623 | 32,623 | 1,304,259 | 4,829 | 47,539 |
Stock options and other stock-based compensation | ' | ' | 83 | 29,537 | ' | ' | ' | ' | ' |
Deferred compensation employee stock trust | ' | ' | 5 | 1,779 | ' | ' | ' | ' | ' |
Deferred compensation, net | ' | ' | 118 | 48,143 | ' | ' | ' | ' | ' |
Equity Units exchanged | ' | ' | 0 | 0 | ' | ' | ' | ' | ' |
Employee tax withholdings by settlement of net share transactions | ' | ' | -55 | -19,409 | ' | ' | ' | ' | ' |
Shares repurchased and retired | -359,996 | ' | -968 | -359,028 | ' | ' | ' | ' | ' |
Redeemable noncontrolling interest for management equity plan | ' | 1,816 | ' | -1,816 | ' | ' | ' | ' | ' |
Allocation from 2.5% Convertible Senior Notes repurchase, net of tax | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Shares issued to plans | ' | ' | ' | ' | -1,784 | 1,784 | ' | ' | ' |
Distributions and forfeitures | ' | ' | ' | ' | 4,485 | -4,485 | ' | ' | ' |
Net Income (Loss) Attributable to Legg Mason, Inc. | ' | 284,784 | ' | ' | ' | ' | 284,784 | ' | ' |
Dividends declared | ' | ' | ' | ' | ' | ' | -62,381 | ' | ' |
Net income (loss) reclassified to appropriated retained earnings | ' | ' | ' | ' | ' | ' | ' | -4,829 | ' |
Net unrealized holding gains (losses) on investment securities | ' | -166 | ' | ' | ' | ' | ' | ' | -166 |
Foreign currency translation adjustment | ' | -9,424 | ' | ' | ' | ' | ' | ' | -9,424 |
Ending Balance at Mar. 31, 2014 | ' | $4,724,724 | $11,717 | $3,148,396 | ($29,922) | $29,922 | $1,526,662 | $0 | $37,949 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | |
Cash Flows from Operating Activities | ' | ' | ' |
Net Income (Loss) | $281,836 | ($359,748) | $231,031 |
2.5% Convertible Senior Notes: | ' | ' | ' |
Allocation of repurchase payment | 0 | -216,038 | 0 |
Loss on extinguishment | 0 | 68,975 | 0 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operations: | ' | ' | ' |
Impairment of intangible assets | 0 | 734,000 | 0 |
Depreciation and amortization | 62,845 | 87,848 | 93,795 |
Imputed interest for 2.5% Convertible Senior Notes | 0 | 5,839 | 39,077 |
Accretion and amortization of securities discounts and premiums, net | 3,037 | 3,295 | 4,552 |
Stock-based compensation | 66,488 | 58,983 | 48,735 |
Net (gains) losses on investments | -26,805 | -43,684 | -1,714 |
Net losses (gains) of consolidated investment vehicles | -643 | 5,358 | -6,711 |
Deferred income taxes | 118,430 | -157,355 | 49,192 |
Other | 3,276 | 1,725 | -12,191 |
Decrease (increase) in assets: | ' | ' | ' |
Investment advisory and related fees receivable | -2,061 | -11,045 | 31,790 |
Net (purchases) sales of trading and other current investments | -44,293 | 189,347 | -40,020 |
Other receivables | 14,105 | -9,712 | 1,432 |
Other assets | -24,042 | -1,605 | 1,810 |
Other assets of consolidated investment vehicles | -62,916 | -14,378 | 53,720 |
Increase (decrease) in liabilities: | ' | ' | ' |
Accrued compensation | 76,968 | -54,964 | 42,763 |
Deferred compensation | -7,191 | -530 | -35,148 |
Accounts payable and accrued expenses | 319 | 8,690 | -11,147 |
Other liabilities | -18,310 | 3,112 | 28,135 |
Other liabilities of consolidated investment vehicles | -3,719 | 5,219 | -22,332 |
CASH PROVIDED BY OPERATING ACTIVITIES | 437,324 | 303,332 | 496,769 |
Cash Flows From Investing Activities | ' | ' | ' |
Payments for fixed assets | -40,452 | -38,351 | -31,822 |
Acquisitions/dispositions | 1,351 | -55,277 | 3,060 |
Change in restricted cash | -5,801 | -7,245 | 11,221 |
Purchases of investment securities | -4,335 | -5,787 | -6,493 |
Proceeds from sales and maturities of investment securities | 4,306 | 5,272 | 6,197 |
Purchases of investments by consolidated investment vehicles | -17,328 | -98,374 | -141,727 |
Proceeds from sales and maturities of investments by consolidated investment vehicles | 199,886 | 188,739 | 161,894 |
Cash Provided by (Used In) Investing Activities | 137,627 | -11,023 | 2,330 |
Cash Flows From Financing Activities | ' | ' | ' |
Repayment of short-term borrowings | 0 | -250,000 | 0 |
Repayment of 2.5% Convertible Senior Notes, net of operating allocation | 0 | -1,040,212 | -1,014 |
Repayment of long-term debt | -500,439 | -9,006 | 0 |
Repayment of long term debt of Consolidated Investment Vehicles | -133,047 | -75,561 | 0 |
Proceeds from issuance of long-term debt | 393,740 | 1,143,246 | 0 |
Debt issuance costs | -3,940 | -10,289 | 0 |
Issuance of common stock for stock-based compensation | 25,603 | 1,986 | 4,538 |
Employee Tax Withholdings by settlement of net share transaction | -19,464 | -11,302 | 0 |
Repurchase of common stock | -359,996 | -425,516 | -401,797 |
Dividends paid | -61,966 | -55,250 | -43,602 |
Net repayments of consolidated investment vehicles | 0 | 0 | -18,309 |
Net (redemptions/distributions paid to)/subscriptions received from noncontrolling interest holders | 20,438 | -3,993 | -21,596 |
Cash Used In Financing Activities | -639,071 | -735,897 | -481,780 |
Effect of Exchange Rate on Cash | -10,894 | -5,639 | -10,974 |
Net Increase (Decrease) in Cash and Cash Equivalents | -75,014 | -449,227 | 6,345 |
Cash and Cash Equivalents at Beginning of Period | 933,036 | 1,382,263 | 1,375,918 |
Cash and Cash Equivalents at End of Period | 858,022 | 933,036 | 1,382,263 |
Income taxes, net of (refunds) payments of $(13,835), $(2,313) and $(12,034), respectively | 10,140 | 32,318 | 24,552 |
Interest | $44,295 | $40,262 | $41,039 |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Proceeds from Income Tax Refunds | ($13,835) | ($2,313) | ($12,034) |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Significant Accounting Policies | ' | ||||||||||||
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Basis of Presentation | |||||||||||||
Legg Mason, Inc. ("Parent") and its subsidiaries (collectively, "Legg Mason") are principally engaged in providing asset management and related financial services to individuals, institutions, corporations and municipalities. | |||||||||||||
The consolidated financial statements include the accounts of the Parent and its subsidiaries in which it has a controlling financial interest. Generally, an entity is considered to have a controlling financial interest when it owns a majority of the voting interest in an entity. Legg Mason is also required to consolidate any variable interest entity ("VIE") in which it is considered to be the primary beneficiary. See "Consolidation" below and Note 17 for a further discussion of VIEs. All material intercompany balances and transactions have been eliminated. | |||||||||||||
Certain amounts in prior year financial statements have been reclassified to conform to the current year presentation. | |||||||||||||
All references to fiscal 2014, 2013 or 2012, refer to Legg Mason's fiscal year ended March 31 of that year. | |||||||||||||
Use of Estimates | |||||||||||||
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.") and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), which require management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes, including revenue recognition, valuation of financial instruments, intangible assets and goodwill, stock-based compensation, income taxes, and consolidation. Management believes that the estimates used are reasonable, although actual amounts could differ from the estimates and the differences could have a material impact on the consolidated financial statements. | |||||||||||||
Consolidation | |||||||||||||
In the normal course of its business, Legg Mason sponsors and is the manager of various types of investment vehicles. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinated management fees or other incentive fees. Legg Mason's exposure to risk in these entities is generally limited to any equity investment it has made or is required to make and any earned but uncollected management fees. Legg Mason did not sell or transfer assets to any of these investment vehicles. In accordance with financial accounting standards on consolidation, Legg Mason consolidates and separately identifies certain sponsored investment vehicles as consolidated investment vehicles (“CIVs”), the most significant of which is a collateralized loan obligation entity (“CLO”). The consolidation of these investment vehicles has no impact on Net Income (Loss) Attributable to Legg Mason, Inc. and does not have a material impact on Legg Mason's consolidated operating results. The change in the value of these consolidated investment vehicles, which is recorded in Other Non-Operating Income (Expense), is reflected in Net Income (Loss), net of amounts allocated to noncontrolling interests. | |||||||||||||
Certain investment vehicles Legg Mason sponsors and is the manager of are considered to be VIEs (further described below) while others are considered to be voting rights entities (“VREs”) subject to traditional consolidation concepts based on ownership rights. Investment vehicles that are considered VREs are consolidated if Legg Mason has a controlling financial interest in the investment vehicle, absent substantive investor rights to replace the manager of the entity (kick-out rights). Legg Mason may also fund the initial cash investment in certain VRE investment vehicles to generate an investment performance track record in order to attract third-party investors in the product. Legg Mason's initial investment in a new product typically represents 100% of the ownership in that product. As further discussed below, these “seed capital investments” are consolidated as long as Legg Mason maintains a controlling financial interest in the product, but they are not included as CIVs unless Legg Mason's investment is longer term. Legg Mason held a longer-term controlling financial interest in one sponsored investment fund VRE, which has third-party investors and was consolidated and included as a CIV as of March 31, 2014, 2013 and 2012. | |||||||||||||
A VIE is an entity which does not have adequate equity to finance its activities without additional subordinated financial support; or the equity investors, as a group, do not have the normal characteristics of equity for a potential controlling financial interest. | |||||||||||||
Investment Company VIEs | |||||||||||||
For most sponsored investment funds deemed to be investment companies, including money market funds, Legg Mason determines it is the primary beneficiary of a VIE if it absorbs a majority of the VIE's expected losses, or receives a majority of the VIE's expected residual returns, if any. Legg Mason's determination of expected residual returns excludes gross fees paid to a decision maker if certain criteria are met. In determining whether it is the primary beneficiary of an investment company VIE, Legg Mason considers both qualitative and quantitative factors such as the voting rights of the equity holders; economic participation of all parties, including how fees are earned and paid to Legg Mason; related party (including employees’) ownership; guarantees and implied relationships. | |||||||||||||
Legg Mason concluded it was the primary beneficiary of one sponsored investment fund VIE, which was consolidated (and designated a CIV) as of March 31, 2014, 2013 and 2012, despite significant third party investments in this product. As of March 31, 2014, Legg Mason also concluded it was the primary beneficiary of 16 employee-owned funds it sponsors, which were consolidated and reported as CIVs. | |||||||||||||
Other VIEs | |||||||||||||
For other sponsored investment funds that do not meet the investment company criteria, Legg Mason determines it is the primary beneficiary of the VIE if it has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses, or the right to receive benefits, that potentially could be significant to the VIE. | |||||||||||||
Legg Mason concluded that it was the primary beneficiary of one of three CLOs in which it has a variable interest. Although it holds no equity interest in these investment vehicles, it had both the power to control and had a significant variable interest in one CLO because of the level of its expected subordinated fees. As of March 31, 2014, 2013 and 2012, the balances related to this CLO were consolidated and reported as a CIV in the Company's consolidated financial statements. The other CLOs were not consolidated, as their level of expected fees is insignificant. | |||||||||||||
In determining the primary beneficiary of investment company VIEs and other VIEs, Legg Mason must make assumptions and estimates about, among other things, the future performance of the underlying assets held by the VIE, including investment returns, cash flows, and credit and interest rate risks. | |||||||||||||
Legg Mason's investment in CIVs as of March 31, 2014 and 2013 was $39,434 and $39,056, respectively, which represents its maximum risk of loss, excluding uncollected advisory fees, which were not material. The assets of these CIVs are primarily comprised of investment securities. Investors and creditors of these CIVs have no recourse to the general credit or assets of Legg Mason beyond its investment in these funds. | |||||||||||||
See Note 17 for additional information about VIEs and VREs. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash equivalents are highly liquid investments with original maturities of 90 days or less. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash primarily represents long-term escrow deposits and cash collateral required for market hedge arrangements. This cash is not available to Legg Mason for general corporate use. | |||||||||||||
Financial Instruments | |||||||||||||
Substantially all financial instruments are reflected in the financial statements at fair value or amounts that approximate fair value, except Legg Mason's long-term debt. | |||||||||||||
As discussed above in "Consolidation", seed capital investments in proprietary fund products are initially consolidated and the individual securities within the portfolio are accounted for as trading investments. Legg Mason consolidates these products as long as it holds a controlling financial interest in the product. Upon deconsolidation, which typically occurs after several years, Legg Mason accounts for its investments in proprietary fund products as equity method investments (further described below) if its ownership is between 20% and 50%, or it otherwise has the ability to significantly influence the financial and operating policies of the investee. For partnerships and LLCs, where third-party investors may have less ability to influence operations, the equity method of accounting is considered if Legg Mason's ownership is greater than 3%. Changes in the fair value of proprietary fund products classified as trading or equity method investments are recognized in Other Non-Operating Income (Expense) on the Consolidated Statements of Income (Loss). | |||||||||||||
Legg Mason generally redeems its investment in proprietary fund products when the related product establishes a sufficient track record, when third-party investments in the related product are sufficient to sustain the strategy, or a decision is made to no longer pursue the strategy. The length of time Legg Mason holds a majority interest in a product varies based on a number of factors, such as market demand, market conditions and investment performance. | |||||||||||||
See Notes 3 and 17 for additional information regarding Legg Mason's seed capital investments and the determination of whether investments in proprietary fund products represent VIEs, respectively. | |||||||||||||
For equity investments where Legg Mason does not control the investee, and where it is not the primary beneficiary of a VIE, but can exert significant influence over the financial and operating policies of the investee, Legg Mason follows the equity method of accounting. The evaluation of whether Legg Mason can exert control or significant influence over the financial and operational policies of an investee requires significant judgment based on the facts and circumstances surrounding each individual investment. Factors considered in these evaluations may include investor voting or other rights, any influence Legg Mason may have on the governing board of the investee, the legal rights of other investors in the entity pursuant to the fund's operating documents and the relationship between Legg Mason and other investors in the entity. Substantially all of Legg Mason's equity method investees are investment companies which record their underlying investments at fair value. Therefore, under the equity method of accounting, Legg Mason's share of the investee's underlying net income or loss predominantly represents fair value adjustments in the investments held by the equity method investee. Legg Mason's share of the investee's net income or loss is based on the most current information available and is recorded as a net gain (loss) on investments within Non-Operating Income (Expense). A significant portion of earnings (losses) attributable to Legg Mason's equity method investments has offsetting compensation expense adjustments under revenue sharing agreements and deferred compensation arrangements, therefore, fluctuations in the market value of these investments will not have a material impact on Net Income (Loss) Attributable to Legg Mason, Inc. | |||||||||||||
Legg Mason also holds debt and marketable equity investments which are classified as available-for-sale, held-to-maturity or trading. Debt and marketable equity securities classified as available-for-sale are reported at fair value and resulting unrealized gains and losses are reflected in stockholders' equity, noncontrolling interests, and comprehensive income (loss), net of applicable income taxes. Debt securities, for which there is positive intent and ability to hold to maturity, are classified as held-to-maturity and are recorded at amortized cost. Amortization of discount or premium is recorded under the interest method and is included in interest income. Certain investment securities, including those held by CIVs, are classified as trading securities. These investments are recorded at fair value and unrealized gains and losses are included in current period earnings. Realized gains and losses for all investments are included in current period earnings. | |||||||||||||
Equity and fixed income securities classified as trading or available-for-sale are valued using closing market prices for listed instruments or broker price quotations, when available. Fixed income securities may also be valued using valuation models and estimates based on spreads to actively traded benchmark debt instruments with readily available market prices. | |||||||||||||
Legg Mason evaluates its non-trading investment securities for "other-than-temporary" impairment. Impairment may exist when the fair value of an investment security has been below the adjusted cost for an extended period of time. If an "other-than-temporary" impairment is determined to exist, the amount of impairment that relates to credit losses is recognized as a charge to income. As of March 31, 2014, 2013 and 2012, the amount of temporary unrealized losses for investment securities not recognized in income was not material. | |||||||||||||
For investments in illiquid or privately-held securities for which market prices or quotations may not be readily available, including certain investments held by CIVs, management estimates the value of the securities using a variety of methods and resources, including the most current available financial information for the investment and the industry. | |||||||||||||
In addition to the financial instruments described above and the derivative instruments and CLO loans, bonds and debt, described below, other financial instruments that are carried at fair value or amounts that approximate fair value include Cash and cash equivalents and Short-term borrowings. The fair values of Long-term debt at March 31, 2014 and 2013, aggregated $1,135,103 and $1,206,166, respectively. These fair values were estimated using publicly quoted market prices or discounted cash flow analyses, as appropriate, and were classified as Level 2 in the fair value hierarchy, as described below. | |||||||||||||
Derivative Instruments | |||||||||||||
The fair values of derivative instruments are recorded as assets or liabilities on the Consolidated Balance Sheets. Legg Mason has used foreign exchange forwards and interest rate swaps to hedge the risk of movement in exchange rates or interest rates on financial assets and liabilities on a limited basis. Also, Legg Mason has used futures contracts on index funds to hedge the market risk of certain seed capital investments. In addition, certain CIVs use derivative instruments. However, there is no risk to Legg Mason in relation to the derivative assets and liabilities of the CIVs in excess of its investment in the funds, if any. | |||||||||||||
Legg Mason has not designated any financial instruments for hedge accounting, as defined in the accounting literature, during the periods presented. The gains or losses on derivative instruments not designated for hedge accounting are included as Other income (expense) or Other Non-Operating Income (Expense) in the Consolidated Statements of Income (Loss), with the exception of gains and losses on derivative instruments of CIVs, which are recorded as Other non-operating income (loss) of consolidated investment vehicles, net, in the Consolidated Statements of Income (Loss). | |||||||||||||
Fair Value Measurements | |||||||||||||
Accounting guidance for fair value measurements defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Under accounting guidance, a fair value measurement should reflect all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of non-performance. | |||||||||||||
The objective of fair value accounting measurements is to reflect, at the date of the financial statements, how much an asset would be sold for in an orderly transaction (as opposed to a distressed or forced transaction) under current market conditions. Specifically, it requires the use of judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. This accounting guidance also relates to other-than-temporary impairments and is intended to bring greater consistency to the timing of impairment recognition. It is also intended to provide greater clarity to investors about the credit and noncredit components of impaired debt securities that are not expected to be sold. The guidance also requires timely disclosures regarding expected cash flows, credit losses, and an aging of securities with unrealized losses. | |||||||||||||
Fair value accounting guidance also establishes a hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |||||||||||||
Legg Mason's financial instruments are measured and reported at fair value and are classified and disclosed in one of the following categories: | |||||||||||||
Level 1 — Financial instruments for which prices are quoted in active markets, which, for Legg Mason, include investments in publicly traded mutual funds with quoted market prices and equities listed in active markets. | |||||||||||||
Level 2 — Financial instruments for which: prices are quoted for similar assets and liabilities in active markets; prices are quoted for identical or similar assets in inactive markets; or prices are based on observable inputs, other than quoted prices, such as models or other valuation methodologies. For Legg Mason, this category may include fixed income securities and certain proprietary fund products. This category also includes CLO loans and derivative liabilities of a CIV. | |||||||||||||
Level 3 — Financial instruments for which values are based on unobservable inputs, including those for which there is little or no market activity. This category includes investments in partnerships, limited liability companies, private equity funds and CLO debt of a CIV. This category may also include certain proprietary fund products with redemption restrictions. | |||||||||||||
The valuation of an asset or liability may involve inputs from more than one level of the hierarchy. The level in the fair value hierarchy in which a fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||
Certain proprietary fund products and investments held by CIVs are valued at net asset value ("NAV") determined by the applicable fund administrator. These funds are typically invested in exchange traded investments with observable market prices. Their valuations may be classified as Level 1, Level 2 or Level 3 based on whether the fund is exchange traded, the frequency of the related NAV determinations and the impact of redemption restrictions. For investments in illiquid and privately-held securities (private equity and investment partnerships) for which market prices or quotations may not be readily available, including certain investments held by CIVs, management must estimate the value of the securities using a variety of methods and resources, including the most current available financial information for the investment and the industry to which it applies in order to determine fair value. These valuation processes for illiquid and privately-held securities inherently require management's judgment and are therefore classified in Level 3. | |||||||||||||
The fair values of CLO loans and bonds are determined based on prices from well-recognized third-party pricing services that utilize available market data and are therefore classified as Level 2. Legg Mason has established controls designed to assess the reasonableness of the prices provided. The fair value of CLO debt is valued using a discounted cash flow methodology. Inputs used to determine the expected cash flows include assumptions about forecasted default and recovery rates that a market participant would use in determining the fair value of the CLO's underlying collateral assets. Given the significance of the unobservable inputs to the fair value measurement, the CLO debt valuation is classified as Level 3. | |||||||||||||
Exchange traded options are valued using the last sale price or, in the absence of a sale, the last offering price. Options traded over the counter are valued using dealer supplied valuations. Options are classified as Level 1. Futures contracts are valued at the last settlement price at the end of each day on the exchange upon which they are traded and are classified as Level 1. | |||||||||||||
As a practical expedient, Legg Mason relies on the NAV of certain investments, classified as Level 2 or Level 3, as their fair value. The NAVs that have been provided by investees are derived from the fair values of the underlying investments as of the reporting date. | |||||||||||||
Any transfers between categories are measured at the beginning of the period. | |||||||||||||
See Note 3 for additional information regarding fair value measurements. | |||||||||||||
Fair Value Option | |||||||||||||
Legg Mason has elected the fair value option for certain eligible assets and liabilities, including corporate loans and debt, of a CLO it is consolidating (see Note 17). Management believes that the use of the fair value option mitigates the impact of certain timing differences and better matches the changes in fair value of assets and liabilities related to the CLO. Unrealized gains and losses on assets and liabilities for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis, must be applied to an entire instrument, and is irrevocable once elected. Assets and liabilities which are measured at fair value pursuant to the fair value option are included in the assets and liabilities of consolidated investment vehicles in the Consolidated Balance Sheets. At this time, the Company has not elected to apply the fair value option to any of its other financial instruments. | |||||||||||||
Appropriated Retained Earnings | |||||||||||||
Upon the election of the fair value option for eligible assets and liabilities of the CLO described above, Legg Mason recorded a cumulative effect adjustment to Appropriated retained earnings for consolidated investment vehicle on the Consolidated Balance Sheets equal to the difference between the fair values of the CLO's assets and liabilities. This difference is recorded as "Appropriated retained earnings for consolidated investment vehicle" because the investors in the CLO, not Legg Mason shareholders, will ultimately realize any benefits or losses associated with the CLO. Changes in the fair values of the CLO assets and liabilities are recorded as Net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss) and Appropriated retained earnings for consolidated investment vehicle in the Consolidated Balance Sheets. At March 31, 2014, the CLO is in the final stage of liquidation, and the fair value of its assets and liabilities are substantially equal, and there is no Appropriated retained earnings. | |||||||||||||
Fixed Assets | |||||||||||||
Fixed assets primarily consist of equipment, software and leasehold improvements. Equipment consists primarily of communications and technology hardware and furniture and fixtures. Software includes both purchased software and internally developed software. Fixed assets are reported at cost, net of accumulated depreciation and amortization. Depreciation and amortization are determined by use of the straight-line method. Equipment is depreciated over the estimated useful lives of the assets, generally ranging from three to eight years. Software is amortized over the estimated useful lives of the assets, which are generally three years. Leasehold improvements are amortized or depreciated over the initial term of the lease unless options to extend are likely to be exercised. Maintenance and repair costs are expensed as incurred. Internally developed software is reviewed periodically to determine if there is a change in the useful life, or if an impairment in value may exist. If impairment is deemed to exist, the asset is written down to its fair value or is written off if the asset is determined to no longer have any value. | |||||||||||||
Intangible Assets and Goodwill | |||||||||||||
Legg Mason's identifiable intangible assets consist principally of asset management contracts, contracts to manage proprietary mutual funds or funds-of-hedge funds, and trade names resulting from acquisitions. Intangible assets are amortized over their estimated useful lives, using the straight-line method, unless the asset is determined to have an indefinite useful life. Asset management contracts are amortizable intangible assets that are capitalized at acquisition and amortized over the expected life of the contract. The value of contracts to manage assets in proprietary mutual funds or funds-of-hedge funds and the value of trade names are classified as indefinite-life intangible assets. The assignment of indefinite lives to proprietary fund contracts is based upon the assumption that there is no foreseeable limit on the contract period to manage proprietary funds due to the likelihood of continued renewal at little or no cost. The assignment of indefinite lives to trade names is based on the assumption that they are expected to generate cash flows indefinitely. | |||||||||||||
Goodwill represents the residual amount of acquisition cost in excess of identified tangible and intangible assets and assumed liabilities. Indefinite-life intangible assets and goodwill are not amortized for financial statement purposes. Given the relative significance of intangible assets and goodwill to the Company's consolidated financial statements, on a quarterly basis Legg Mason considers if triggering events have occurred that may indicate that the fair values have declined below their respective carrying amounts. Triggering events may include significant adverse changes in the Company's business, legal or regulatory environment, loss of key personnel, significant business dispositions, or other events, including changes in economic arrangements with our affiliates that will impact future operating results. If a triggering event has occurred, the Company will perform quantitative tests, which include critical reviews of all significant factors and assumptions, to determine if any intangible assets or goodwill are impaired. Legg Mason considers factors such as projected cash flows and revenue multiples, to determine whether the value of the assets is impaired and the indefinite-life assumptions are appropriate. If an asset is impaired, the difference between the value of the asset reflected on the consolidated financial statements and its current fair value is recognized as an expense in the period in which the impairment is determined. If a triggering event has not occurred, the Company performs quantitative tests annually at December 31, for indefinite-life intangible assets and goodwill, unless the Company can qualitatively conclude that it is more likely than not that the respective fair values exceed the related carrying values. The fair values of intangible assets subject to amortization are considered for impairment at each reporting period using an undiscounted cash flow analysis. For intangible assets with indefinite lives, fair value is determined from a market participant's perspective based on projected discounted cash flows, which take into consideration estimates of future fees, profit margins, growth rates, taxes, and discount rates. Proprietary fund contracts that are managed and operated as a single unit and meet other criteria may be aggregated for impairment testing. Goodwill is evaluated at the reporting unit level, and is considered for impairment when the carrying value of the reporting unit exceeds the implied fair value of the reporting unit. In estimating the implied fair value of the reporting unit, Legg Mason uses valuation techniques principally based on discounted projected cash flows and EBITDA multiples, similar to techniques employed in analyzing the purchase price of an acquisition. Goodwill is deemed to be recoverable at the reporting unit level, which is also the operating segment level that Legg Mason defines as the Global Asset Management segment. This results from the fact that the chief operating decision maker, Legg Mason's Chief Executive Officer, regularly receives discrete financial information at the consolidated Global Asset Management business level and does not regularly receive discrete financial information, such as operating results, at any lower level, such as the asset management affiliate level. Allocations of goodwill for management restructures, acquisitions and dispositions are based on relative fair values of the respective businesses restructured, added to or sold from the divisions. | |||||||||||||
See Note 5 for additional information regarding intangible assets and goodwill and Note 16 for additional business segment information. | |||||||||||||
Translation of Foreign Currencies | |||||||||||||
Assets and liabilities of foreign subsidiaries that are denominated in non-U.S. dollar functional currencies are translated at exchange rates as of the Consolidated Balance Sheet dates. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in stockholders' equity and comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in Net Income (Loss). | |||||||||||||
Investment Advisory Fees | |||||||||||||
Legg Mason earns investment advisory fees on assets in separately managed accounts, investment funds, and other products managed for Legg Mason's clients. These fees are primarily based on predetermined percentages of the market value of the assets under management ("AUM"), are recognized over the period in which services are performed and may be billed in advance of the period earned based on AUM at the beginning of the billing period in accordance with the related advisory contracts. Revenue associated with advance billings is deferred and included in Other (current) liabilities in the Consolidated Balance Sheets and is recognized over the period earned. Performance fees may be earned on certain investment advisory contracts for exceeding performance benchmarks on a relative or absolute basis, depending on the product, and are recognized at the end of the performance measurement period. Accordingly, neither advanced billings nor performance fees are subject to reversal. The largest portion of performance fees are earned based on 12-month performance periods that end in differing quarters during the year, with a portion also based on quarterly performance periods. | |||||||||||||
Legg Mason has responsibility for the valuation of AUM, substantially all of which is based on observable market data from independent pricing services, fund accounting agents, custodians or brokers. | |||||||||||||
Distribution and Service Fees Revenue and Expense | |||||||||||||
Distribution and service fees represent fees earned from funds to reimburse the distributor for the costs of marketing and selling fund shares and servicing proprietary funds and are generally determined as a percentage of client assets. Reported amounts also include fees earned from providing client or shareholder servicing, including record keeping or administrative services to proprietary funds. Distribution fees earned on company-sponsored investment funds are reported as revenue. When Legg Mason enters into arrangements with broker-dealers or other third parties to sell or market proprietary fund shares, distribution and servicing expense is accrued for the amounts owed to third parties, including finders' fees and referral fees paid to unaffiliated broker-dealers or introducing parties. Distribution and servicing expense also includes payments to third parties for certain shareholder administrative services and sub-advisory fees paid to unaffiliated asset managers. | |||||||||||||
Deferred Sales Commissions | |||||||||||||
Commissions paid to financial intermediaries in connection with sales of certain classes of company-sponsored mutual funds are capitalized as deferred sales commissions. The asset is amortized over periods not exceeding six years, which represent the periods during which commissions are generally recovered from distribution and service fee revenues and from contingent deferred sales charges ("CDSC") received from shareholders of those funds upon redemption of their shares. CDSC receipts are recorded as distribution and service fee revenue when received and a reduction of the unamortized balance of deferred sales commissions, with a corresponding expense. | |||||||||||||
Management periodically tests the deferred sales commission asset for impairment by reviewing the changes in value of the related shares, the relevant market conditions and other events and circumstances that may indicate an impairment in value has occurred. If these factors indicate an impairment in value, management compares the carrying value to the estimated undiscounted cash flows expected to be generated by the asset over its remaining life. If management determines that the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value. For the years ended March 31, 2014, 2013 and 2012, no impairment charges were recorded. Deferred sales commissions, included in Other non-current assets in the Consolidated Balance Sheets, were $8,031 and $8,259 at March 31, 2014 and 2013, respectively. | |||||||||||||
Income Taxes | |||||||||||||
Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred income tax assets are subject to a valuation allowance if, in management's opinion, it is more likely than not that these benefits will not be realized. Legg Mason's deferred income taxes principally relate to net operating loss and other carryforward benefits, business combinations, amortization of intangible assets and accrued compensation. | |||||||||||||
Under applicable accounting guidance, a tax benefit should only be recognized if it is more likely than not that the position will be sustained based on its technical merits. A tax position that meets this threshold is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon settlement by the appropriate taxing authority having full knowledge of all relevant information. | |||||||||||||
The Company's accounting policy is to classify interest related to tax matters as interest expense and related penalties, if any, as other operating expense. | |||||||||||||
See Note 7 for additional information regarding income taxes. | |||||||||||||
Loss Contingencies | |||||||||||||
Legg Mason accrues estimates for loss contingencies related to legal actions, investigations, and proceedings, exclusive of legal fees, when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Related insurance recoveries are recorded separately when the underwriter has confirmed coverage of a specific claim amount. See Note 8 for additional information. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Legg Mason's stock-based compensation includes stock options, an employee stock purchase plan, market-based performance shares payable in common stock, restricted stock awards and units, management equity plans for certain affiliates and deferred compensation payable in stock. Under its stock compensation plans, Legg Mason issues equity awards to directors, officers, and other key employees. | |||||||||||||
In accordance with the applicable accounting guidance, compensation expense includes costs for all non-vested share-based awards classified as equity at their grant date fair value amortized over the respective vesting periods on the straight-line method. Legg Mason determines the fair value of stock options and affiliate management equity plan grants using the Black-Scholes option-pricing model, with the exception of market-based performance grants, which are valued with a Monte Carlo option-pricing model. See "Other Developments" below and Note 11 for additional information regarding stock-based compensation. | |||||||||||||
Earnings Per Share | |||||||||||||
Basic earnings per share attributable to Legg Mason, Inc. common shareholders ("EPS") is calculated by dividing Net Income (Loss) Attributable to Legg Mason, Inc. by the weighted-average number of shares outstanding. The calculation of weighted-average shares includes common shares, shares exchangeable into common stock and certain unvested share-based payment awards that are considered participating securities because they contain nonforfeitable rights to dividends. Diluted EPS is similar to basic EPS, but adjusts for the effect of potential common shares unless they are antidilutive. For periods with a net loss, potential common shares are considered antidilutive. See Note 12 for additional discussion of EPS. | |||||||||||||
Restructuring Costs | |||||||||||||
In May 2010, Legg Mason's management committed to a plan to streamline its business model as further described in Note 15. The streamlining initiative was completed as of March 31, 2012. The costs associated with this initiative primarily related to employee termination benefits, incentives to retain employees during the transition period, charges for consolidating leased office space, and contract termination costs. Termination benefits, including severance and retention incentives, were recorded as Transition-related compensation in the Consolidated Statements of Income (Loss). These compensation items required employees to provide future service and were therefore expensed ratably over the required service period. Contract termination and other costs were expensed when incurred. | |||||||||||||
As further discussed in Note 2, in March 2014, Legg Mason entered into a definitive agreement to acquire QS Investors Holdings, LLC ("QS Investors"). Legg Mason plans to integrate its two existing affiliates, Batterymarch Financial Management, Inc. ("Batterymarch") and Legg Mason Global Asset Allocation, LLC ("LMGAA") into QS Investors over time to leverage the best aspects of each subsidiary. The costs anticipated with this integration primarily relate to employee termination benefits, including severance and retention incentives, which are recorded as Compensation and benefits in the Consolidated Statements of Income (Loss). See Note 2 for additional information. | |||||||||||||
Other Developments | |||||||||||||
In conjunction with the December 2012 modification of employment and other arrangements with certain employees of its subsidiary, The Permal Group, Ltd ("Permal"), Legg Mason completed implementation of a management equity plan during the quarter ended June 30, 2013. On March 31, 2014, a similar management equity plan was implemented by Legg Mason for certain employees of ClearBridge Investments, LLC ("ClearBridge"). The plans better align the interests of each affiliate's management with those of Legg Mason and its shareholders, and provide for, among other things, higher margins at specified higher revenue levels. The management equity plans entitle certain key employees of each affiliate to participate in 15% of the future growth, if any, of the respective affiliates' enterprise value (subject to appropriate discounts) subsequent to the date of grant. Current and future grants under the plans vest 20% annually for five years, over which the related grant-date fair values will be recognized as Compensation expense in the Consolidated Statements of Income. Once vested, plan units can be put to Legg Mason for settlement at fair value, beginning one year after the holder terminates their employment. Legg Mason can also call plan units, generally post employment, for settlement at fair value. Changes in control of Legg Mason or either affiliate do not impact vesting, settlement or other provisions of the units. However, upon sale of substantially all of the affiliate's assets, the vesting of the respective units would accelerate and participants would receive a fair value payment in respect of their interests under the plan. Future grants of additional plan units will dilute the participation of existing outstanding units in 15% of the future growth of the respective affiliates' enterprise value, if any, subsequent to the related future grant date, for which additional compensation expense would be incurred. Further, future grants under either plan will not entitle the plan participants, collectively, to more than an aggregate 15% of the future growth of the respective affiliate's enterprise value. Upon vesting, the grant-date fair value of vested plan units will be reflected in the Consolidated Balance Sheets as redeemable noncontrolling interests through an adjustment to additional paid-in capital. Thereafter, redeemable noncontrolling interests will continue to be adjusted to the ultimate maximum estimated redemption value over the expected term, through retained earnings adjustments. See Note 11 for additional information. | |||||||||||||
Noncontrolling Interests | |||||||||||||
For CIVs with third-party investors, the related noncontrolling interests are classified as redeemable noncontrolling interests if investors in these funds may request withdrawals at any time. Also included in redeemable noncontrolling interests are vested affiliate management equity plan units. There are no nonredeemable noncontrolling interests as of March 31, 2014 or 2013. As noted above, Net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss) also includes Net income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicle in the Consolidated Balance Sheets. | |||||||||||||
Net income (loss) attributable to noncontrolling interests for the years ended March 31, 2014, 2013 and 2012, included the following amounts: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to redeemable noncontrolling interests | $ | 1,881 | $ | 971 | $ | 8,915 | |||||||
Net Income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicle | (4,829 | ) | (7,392 | ) | 1,299 | ||||||||
Total | $ | (2,948 | ) | $ | (6,421 | ) | $ | 10,214 | |||||
Redeemable noncontrolling interests as of and for the years ended March 31, 2014, 2013 and 2012, included the following amounts: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 21,009 | $ | 24,031 | $ | 36,712 | |||||||
Net income attributable to redeemable noncontrolling interests | 1,881 | 971 | 8,915 | ||||||||||
Net (redemptions/distributions paid to)/subscriptions received from noncontrolling interest holders | 20,438 | (3,993 | ) | (21,596 | ) | ||||||||
Management equity plan interests | 1,816 | — | — | ||||||||||
Balance, end of period | $ | 45,144 | $ | 21,009 | $ | 24,031 | |||||||
Recent Accounting Developments | |||||||||||||
In June 2013, the Financial Accounting Standards Board ("FASB") updated the guidance for investment company entities. The update clarifies the characteristics of an investment company, provides comprehensive guidance for assessing whether an entity is an investment company, requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method, and requires additional disclosures. This update will be effective for Legg Mason in fiscal 2015. Legg Mason is currently evaluating its adoption and it is not expected to have a material impact on Legg Mason's consolidated financial statements. | |||||||||||||
In December 2013, the FASB ratified an Emerging Issues Task Force ("EITF") consensus that will update the guidance on measuring the financial assets and financial liabilities of consolidated collateralized financing entities. The update will require that an entity electing to apply the guidance should measure both the financial assets and financial liabilities using the fair value of the consolidated collateralized financing entity’s financial assets or financial liabilities, whichever is more observable. Subject to formal issuance by the FASB, this update will also require certain disclosures by entities that apply its provisions and will be effective for Legg Mason in fiscal 2016, unless adopted earlier. Legg Mason is evaluating its adoption. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | ||||
2. ACQUISITIONS | |||||
Fauchier Partners Management, Limited | |||||
On March 13, 2013, Permal, a wholly-owned subsidiary of Legg Mason, completed the acquisition of all of the outstanding share capital of Fauchier Partners Management, Limited ("Fauchier"), a European based manager of funds-of-hedge funds, from BNP Paribas Investment Partners, S.A. in accordance with a Sale and Purchase Agreement ("SPA") entered into in December 2012. This transaction significantly expands Permal's institutional business, creating a global institutional capability across geographies and client profiles. At the time of acquisition, Fauchier managed assets of approximately $5,400,000. | |||||
The initial purchase price was a cash payment of $63,433, using the exchange rate between the British pound and U.S. dollar at the acquisition date, and was funded from existing cash resources. In addition, contingent consideration of up to approximately $25,000 and approximately $33,000 (using the exchange rate between the British pound and the U.S. dollar as of March 31, 2014) may be due on or about the second and fourth anniversaries of closing, respectively, dependent on achieving certain levels of revenue, net of distribution costs, and subject to a potential catch-up adjustment in the fourth anniversary payment for any second anniversary payment shortfall. The contingent consideration liability established at closing had an acquisition date fair value of $21,566, which represented the present value of the contingent consideration expected to be paid. As of March 31, 2014, the fair value of the contingent consideration liability was $29,553, an increase of $7,653 from March 31, 2013, with $5,000 attributable to revised estimates of amounts that will be payable and $2,653 attributable to changes in the exchange rate and interest amortization. The contingent consideration liability is included in Other liabilities in the Consolidated Balance Sheet. The increase in the contingent consideration liability due to revised estimates of amounts that will be payable was recorded in Other expenses in the Consolidated Statements of Income (Loss) for the year ended March 31, 2014. Legg Mason has executed currency forwards to economically hedge the risk of movements in the exchange rate between the U.S. dollar and the British pound in which the estimated contingent liability payment amounts are denominated. See Note 14 for additional information regarding derivatives and hedging. | |||||
A summary of the acquisition-date fair values of the assets acquired and liabilities assumed are as follows: | |||||
Cash | $ | 8,156 | |||
Receivables | 12,174 | ||||
Amortizable asset management contracts | 2,865 | ||||
Indefinite-life fund management contracts | 65,126 | ||||
Goodwill | 28,983 | ||||
Other current liabilities, net | (16,667 | ) | |||
Contingent consideration | (21,566 | ) | |||
Deferred tax liability | (15,638 | ) | |||
Total net assets acquired | $ | 63,433 | |||
The fair value of the amortizable asset management contracts is being amortized over a period of six years. None of the acquired intangible assets or goodwill are deductible for U.K. tax purposes. | |||||
Management estimated the fair values of the indefinite-life fund management contracts based upon discounted cash flow analyses, and the contingent consideration expected to be paid based upon probability-weighted revenue projections, using unobservable market data inputs, which are Level 3 measurements. As is typical with the acquisition of a portion of a business from a larger financial services firm with other related operations, Legg Mason expected some initial contraction in the acquired business. The significant assumptions used in these analyses at acquisition included projected annual cash flows, revenues and discount rates, are summarized as follows: | |||||
Projected Cash Flow Growth Rates | Discount Rate | ||||
Indefinite-life fund management contracts | (35)% to 11% (weighted-average - 6% ) | 16.00% | |||
Projected Revenue Growth Rates | |||||
Contingent consideration | (16)% to 3% (weighted-average - (5)%) | 2.00% | |||
The revised contingent consideration estimate at March 31, 2014, considers the higher level of Fauchier performance fees to date and includes various scenarios with net revenue growth rates ranging from 0% to 8% (weighted-average 2%) and a discount rate of 2.7%. | |||||
The Company has not presented pro forma combined results of operations for this acquisition because the results of operations as reported in the accompanying Consolidated Statements of Income (Loss) for the years ended March 31, 2013 or 2012, would not have been materially different. The financial results of Fauchier included in Legg Mason's consolidated financial results for the year ended March 31, 2014, include revenues of $72,088. Fauchier operations have been integrated such that the related expenses are not readily identifiable. | |||||
QS Investors, LLC | |||||
In March 2014, Legg Mason entered into a definitive agreement to acquire QS Investors, a customized solutions and global quantitative equities provider with approximately $5,000,000 in AUM and nearly $100,000,000 in assets under advisement as of March 31, 2014. | |||||
Legg Mason plans to integrate over time two existing affiliates, Batterymarch and LMGAA, into QS Investors to leverage the best capabilities of each entity. Legg Mason will pay an initial purchase price of $11,000. In addition, contingent consideration of up to $10,000 and $20,000 may be due on or about the second and fourth anniversaries of closing, respectively, dependent on the achievement of certain net revenue targets, and subject to a potential catch-up adjustment in the fourth anniversary payment for any second anniversary payment shortfall. The acquisition is expected to close in the first quarter of fiscal 2015. | |||||
In connection with the integration, Legg Mason expects to incur restructuring and transition costs of approximately $35,000, primarily comprised of charges for employee related costs. Charges for restructuring and transition costs for the year ended March 31, 2014, were approximately $2,500, which primarily represent costs for severance and retention incentives, recorded in Compensation and benefits in the Consolidated Statements of Income (Loss). Legg Mason expects that approximately $30,000 of the remaining anticipated costs associated with the integration will be incurred in the year ending March 31, 2015. |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | ' | ||||||||||||||||||||||||||||
3. INVESTMENTS AND FAIR VALUES OF ASSETS AND LIABILITIES | |||||||||||||||||||||||||||||
The disclosures below include details of Legg Mason's assets and liabilities that are measured at fair value, excluding the assets and liabilities of CIVs. See Note 17, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the assets and liabilities of CIVs that are measured at fair value. | |||||||||||||||||||||||||||||
Legg Mason has investments in debt and equity securities that are generally classified as trading as described in Note 1. Investments as of March 31, 2014 and 2013, are as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Current investments | $ | 467,726 | $ | 371,080 | |||||||||||||||||||||||||
Available-for-sale | 12,072 | 12,400 | |||||||||||||||||||||||||||
Other(1) | 90 | 99 | |||||||||||||||||||||||||||
Total | $ | 479,888 | $ | 383,579 | |||||||||||||||||||||||||
-1 | Includes investments in private equity securities that do not have readily determinable fair values. | ||||||||||||||||||||||||||||
The net unrealized and realized gain (loss) for investment securities classified as trading was $22,963, $18,260 and $(6,063) for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Legg Mason's available-for-sale investments consist of mortgage backed securities, U.S. government and agency securities and equity securities. Gross unrealized gains and (losses) for investments classified as available-for-sale were $203 and $(451), respectively, as of March 31, 2014, and $230 and $(188), respectively, as of March 31, 2013. | |||||||||||||||||||||||||||||
Legg Mason uses the specific identification method to determine the cost of a security sold and the amount reclassified from accumulated other comprehensive income into earnings. The proceeds and gross realized gains and losses from sales and maturities of available-for-sale investments are as follows: | |||||||||||||||||||||||||||||
Years Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Proceeds | $ | 4,306 | $ | 5,272 | $ | 6,197 | |||||||||||||||||||||||
Gross realized gains | — | 22 | 6 | ||||||||||||||||||||||||||
Gross realized losses | (29 | ) | (43 | ) | (25 | ) | |||||||||||||||||||||||
Legg Mason had no investments classified as held-to-maturity as of March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
The fair values of financial assets and (liabilities) of the Company were determined using the following categories of inputs: | |||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable | Significant unobservable inputs | Total | ||||||||||||||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents(1): | |||||||||||||||||||||||||||||
Money market funds | $ | 456,631 | $ | — | $ | — | $ | 456,631 | |||||||||||||||||||||
Time deposits and other | — | 106,226 | — | 106,226 | |||||||||||||||||||||||||
Total cash equivalents | 456,631 | 106,226 | — | 562,857 | |||||||||||||||||||||||||
Current investments: | |||||||||||||||||||||||||||||
Trading investments relating to long-term incentive compensation plans(2) | 109,648 | — | — | 109,648 | |||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments(3) | 260,251 | 75,015 | 190 | 335,456 | |||||||||||||||||||||||||
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments(4)(5) | 8,497 | 14,125 | — | 22,622 | |||||||||||||||||||||||||
Total current investments | 378,396 | 89,140 | 190 | 467,726 | |||||||||||||||||||||||||
Available-for-sale investment securities(6) | 2,048 | 10,024 | — | 12,072 | |||||||||||||||||||||||||
Investments in partnerships, LLCs and other(6) | — | 2,878 | 21,586 | 24,464 | |||||||||||||||||||||||||
Equity method investments in partnerships and LLCs(4)(6) | — | — | 62,973 | 62,973 | |||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||
Currency and market hedges | 3,584 | — | — | 3,584 | |||||||||||||||||||||||||
Other investments(6) | — | — | 90 | 90 | |||||||||||||||||||||||||
Total | $ | 840,659 | $ | 208,268 | $ | 84,839 | $ | 1,133,766 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability(7) | $ | — | $ | — | $ | (29,553 | ) | $ | (29,553 | ) | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Currency and market hedges | (2,335 | ) | — | — | (2,335 | ) | |||||||||||||||||||||||
Total | $ | (2,335 | ) | $ | — | $ | (29,553 | ) | $ | (31,888 | ) | ||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable | Significant unobservable inputs | Total | ||||||||||||||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents(1): | |||||||||||||||||||||||||||||
Money market funds | $ | 485,776 | $ | — | $ | — | $ | 485,776 | |||||||||||||||||||||
Time deposits and other | — | 177,471 | — | 177,471 | |||||||||||||||||||||||||
Total cash equivalents | 485,776 | 177,471 | — | 663,247 | |||||||||||||||||||||||||
Current investments: | |||||||||||||||||||||||||||||
Trading investments relating to long-term incentive compensation plans(2) | 86,583 | — | — | 86,583 | |||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments(3) | 158,846 | 69,064 | 246 | 228,156 | |||||||||||||||||||||||||
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments(4)(5) | 12,600 | 43,741 | — | 56,341 | |||||||||||||||||||||||||
Total current investments | 258,029 | 112,805 | 246 | 371,080 | |||||||||||||||||||||||||
Available-for-sale investment securities(6) | 2,034 | 10,354 | 12 | 12,400 | |||||||||||||||||||||||||
Investments in partnerships, LLCs and other(6) | 761 | 2,620 | 27,762 | 31,143 | |||||||||||||||||||||||||
Equity method investments in partnerships and LLCs(4)(6) | 1,518 | 924 | 66,338 | 68,780 | |||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||
Currency and market hedges | 1,939 | — | — | 1,939 | |||||||||||||||||||||||||
Other investments(6) | — | — | 99 | 99 | |||||||||||||||||||||||||
Total | $ | 750,057 | $ | 304,174 | $ | 94,457 | $ | 1,148,688 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability(7) | $ | — | $ | — | $ | (21,900 | ) | $ | (21,900 | ) | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Currency and market hedges | (781 | ) | — | — | (781 | ) | |||||||||||||||||||||||
Total | $ | (781 | ) | $ | — | $ | (21,900 | ) | $ | (22,681 | ) | ||||||||||||||||||
-1 | Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at NAV and are classified as Level 1. Cash investments in time deposits and other are measured at amortized cost, which approximates fair value because of the short time between the purchase of the instrument and its expected realization, and are classified as Level 2. | ||||||||||||||||||||||||||||
-2 | Primarily mutual funds where there is minimal market risk to the Company as any change in value is primarily offset by an adjustment to compensation expense and related deferred compensation liability. | ||||||||||||||||||||||||||||
-3 | Trading investments of proprietary fund products and other trading investments consist of approximately 53% and 47% in equity and debt securities, respectively, as of March 31, 2014, and approximately 49% and 51% in equity and debt securities, respectively, as of March 31, 2013. | ||||||||||||||||||||||||||||
-4 | Substantially all of Legg Mason's equity method investments are investment companies which record their underlying investments at fair value. Fair value is measured using Legg Mason's share of the investee's underlying net income or loss, which is predominately representative of fair value adjustments in the investments held by the equity method investee. | ||||||||||||||||||||||||||||
-5 | Includes investments under the equity method (which approximate fair value) relating to long-term incentive compensation plans of $14,125 and $43,741 as of March 31, 2014 and 2013, respectively, and proprietary fund products and other investments of $8,497 and $12,600 as of March 31, 2014 and 2013, respectively, which are classified as Investment securities on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
-6 | Amounts are included in Other non-current assets on the Consolidated Balance Sheets for each of the periods presented. | ||||||||||||||||||||||||||||
-7 | See Note 2. | ||||||||||||||||||||||||||||
Proprietary fund products include seed capital investments made by Legg Mason to fund new investment strategies and products. Legg Mason had investments in proprietary fund products which totaled $405,918 and $304,713, as of March 31, 2014 and 2013, respectively, which are substantially comprised of investments in 46 funds and 39 funds as of March 31, 2014 and 2013, respectively, that are individually greater than $1,000 and together comprise over 90% of the seed capital investment total in each period. See Note 1 for additional information regarding seed capital investments. | |||||||||||||||||||||||||||||
Substantially all of the above financial instruments where valuation methods rely on other than observable market inputs as a significant input utilize the equity method, the cost method, or NAV practical expedient discussed below, such that measurement uncertainty has little relevance. | |||||||||||||||||||||||||||||
The changes in financial assets and (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the years ended March 31, 2014 and 2013, are presented in the tables below: | |||||||||||||||||||||||||||||
Value as of March 31, 2013 | Purchases | Sales | Redemptions/ Settlements/ Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2014 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments | $ | 246 | $ | 1 | $ | — | $ | (77 | ) | $ | — | $ | 20 | $ | 190 | ||||||||||||||
Investments in partnerships, LLCs and other | 27,762 | — | (731 | ) | (4,869 | ) | — | (576 | ) | 21,586 | |||||||||||||||||||
Equity method investments in partnerships and LLCs | 66,338 | 5,154 | (750 | ) | (9,258 | ) | — | 1,489 | 62,973 | ||||||||||||||||||||
Other investments | 111 | — | (12 | ) | — | — | (9 | ) | 90 | ||||||||||||||||||||
$ | 94,457 | $ | 5,155 | $ | (1,493 | ) | $ | (14,204 | ) | $ | — | $ | 924 | $ | 84,839 | ||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability | $ | (21,900 | ) | $ | — | $ | — | $ | — | $ | — | $ | (7,653 | ) | $ | (29,553 | ) | ||||||||||||
Value as of March 31, 2012 | Purchases | Sales | Redemptions/Settlements/ Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2013 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments | $ | — | $ | 246 | $ | — | $ | — | $ | — | $ | — | $ | 246 | |||||||||||||||
Equity method investments in proprietary fund products | 11,778 | — | — | (11,705 | ) | — | (73 | ) | — | ||||||||||||||||||||
Investments in partnerships, LLCs and other | 28,763 | — | (970 | ) | (1,014 | ) | — | 983 | 27,762 | ||||||||||||||||||||
Equity method investments in partnerships and LLCs | 166,438 | 2,827 | (2,268 | ) | (117,411 | ) | — | 16,752 | 66,338 | ||||||||||||||||||||
Other investments | 124 | — | — | — | — | (13 | ) | 111 | |||||||||||||||||||||
$ | 207,103 | $ | 3,073 | $ | (3,238 | ) | $ | (130,130 | ) | $ | — | $ | 17,649 | $ | 94,457 | ||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | (21,566 | ) | $ | — | $ | — | $ | — | $ | (334 | ) | $ | (21,900 | ) | ||||||||||||
Realized and unrealized gains and losses recorded for Level 3 investments are primarily included in Other Non-Operating Income (Expense) on the Consolidated Statements of Income (Loss). The change in unrealized losses for Level 3 investments and liabilities still held at the reporting date was $5,210 and $1,229 for the years ended March 31, 2014 and 2013, respectively. Also, included in realized and unrealized losses, net, for the year ended March 31, 2014, is the change in the fair value of the contingent consideration liability. | |||||||||||||||||||||||||||||
There were no significant transfers between Level 1 and Level 2 during the years ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||
As a practical expedient, Legg Mason relies on the NAV of certain investments as their fair value. The NAVs that have been provided by the investees have been derived from the fair values of the underlying investments as of the respective reporting dates. The following table summarizes, as of March 31, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||||||
Fair Value Determined Using NAV | As of March 31, 2014 | ||||||||||||||||||||||||||||
Category of Investment | Investment Strategy | 31-Mar-14 | 31-Mar-13 | Unfunded Commitments | Remaining Term | ||||||||||||||||||||||||
Funds-of-hedge funds | Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge | $ | 34,771 | -1 | $ | 38,811 | -1 | n/a | n/a | ||||||||||||||||||||
Hedge funds | Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge | 19,461 | 24,716 | $ | 20,000 | n/a | |||||||||||||||||||||||
Private equity funds | Long/short equity | 22,759 | -2 | 23,763 | -2 | 5,575 | Up to 9 years | ||||||||||||||||||||||
Other | Various | 2,434 | 2,408 | n/a | Various (3) | ||||||||||||||||||||||||
Total | $ | 79,425 | -4 | $ | 89,698 | -4 | $ | 25,575 | |||||||||||||||||||||
n/a-not applicable | |||||||||||||||||||||||||||||
-1 | 40% monthly redemption and 60% quarterly redemption as of March 31, 2014. 49% monthly redemption and 51% quarterly redemption as of March 31, 2013. Any remaining lockup expired in June 2013. | ||||||||||||||||||||||||||||
(2) Liquidations are expected over the remaining term. | |||||||||||||||||||||||||||||
-3 | Of this balance, 10% has a remaining term of less than one year and 90% has a remaining term of 19 years. | ||||||||||||||||||||||||||||
-4 | Comprised of approximately 31% and 69% of Level 2 and Level 3 assets, respectively, as of March 31, 2014 and 32% and 68% of Level 2 and Level 3 assets, respectively, as of March 31, 2013. | ||||||||||||||||||||||||||||
There are no current plans to sell any of these investments held as of March 31, 2014. |
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
4. FIXED ASSETS | |||||||||
The following table reflects the components of fixed assets as of March 31: | |||||||||
2014 | 2013 | ||||||||
Equipment | $ | 147,663 | $ | 152,065 | |||||
Software | 249,368 | 227,739 | |||||||
Leasehold improvements | 209,747 | 222,260 | |||||||
Total cost | 606,778 | 602,064 | |||||||
Less: accumulated depreciation and amortization | (417,537 | ) | (400,245 | ) | |||||
Fixed assets, net | $ | 189,241 | $ | 201,819 | |||||
Depreciation and amortization expense related to fixed assets was $50,531, $73,829 and $74,221 for fiscal 2014, 2013 and 2012, respectively, and includes accelerated depreciation and amortization of $2,542 in fiscal 2014, primarily related to various corporate initiatives, $21,020 in fiscal 2013, related to an initiative to reduce space requirements, and $10,256 in fiscal 2012, related to our business streamlining initiative. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||
5. INTANGIBLE ASSETS AND GOODWILL | |||||||||||||
Goodwill and indefinite-life intangible assets are not amortized, and the values of other identifiable intangible assets are amortized over their useful lives, unless the assets are determined to have indefinite useful lives. Goodwill and indefinite-life intangible assets are analyzed to determine if the fair value of the assets exceeds the book value. Intangible assets subject to amortization are considered for impairment at each reporting period. If the fair value is less than the book value, Legg Mason will record an impairment charge. | |||||||||||||
The following table reflects the components of intangible assets as of: | |||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Amortizable asset management contracts | |||||||||||||
Cost | $ | 207,224 | $ | 208,651 | |||||||||
Accumulated amortization | (197,255 | ) | (186,324 | ) | |||||||||
Net | 9,969 | 22,327 | |||||||||||
Indefinite–life intangible assets | |||||||||||||
U.S. domestic mutual fund management contracts | 2,106,351 | 2,106,351 | |||||||||||
Permal/Fauchier funds-of-hedge fund management contracts | 698,104 | 692,133 | |||||||||||
Other fund management contracts | 304,549 | 303,951 | |||||||||||
Trade names | 52,800 | 52,800 | |||||||||||
3,161,804 | 3,155,235 | ||||||||||||
Intangible assets, net | $ | 3,171,773 | $ | 3,177,562 | |||||||||
The change in indefinite-life intangible assets is attributable to the impact of foreign currency translation. Legg Mason completed its annual impairment testing process of goodwill and indefinite-life intangible assets and determined that there was no impairment in the value of these assets as of December 31, 2013. As a result of uncertainty regarding future market conditions and economic results, assessing the fair value of the reporting unit and intangible assets requires management to exercise significant judgment. The current assessed fair value of the indefinite-life domestic mutual funds contracts asset related to the Citigroup Asset Management ("CAM") acquisition exceeds the carrying value by approximately 21%. The current assessed fair value of the indefinite-life funds-of-hedge funds contracts asset related to the Permal and Fauchier acquisitions exceeds the combined carrying values by approximately 10%. Should market performance, flows, or related assets under management levels decrease in the near term such that cash flow projections deviate from current projections, it is reasonably possible that the assets could be deemed to be impaired by a material amount. Legg Mason also determined that no triggering events occurred as of March 31, 2014 that would require further impairment testing. | |||||||||||||
As part of Legg Mason's annual impairment testing process as of December 31, 2012, the Company concluded that the carrying value of two significant indefinite-life fund management contract intangible assets and a trade name asset exceeded their respective fair values, and the assets were impaired by an aggregate amount of $734,000. The impairment charges resulted from a number of then current trends and factors. These factors resulted in a reduction of the projected cash flows and Legg Mason's overall assessment of fair value of the assets, such that the fair value of the domestic mutual fund management contracts asset, Permal funds-of-hedge fund management contracts asset, and Permal trade name declined below their carrying values, and accordingly were impaired by $396,000, $321,000, and $17,000, respectively. Management estimated the fair values of the indefinite-life intangible assets based upon discounted cash flow analyses using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these cash flow analyses as of December 31, 2012, included projected cash flows and discount rates, summarized as follows: | |||||||||||||
Projected Cash Flow Growth Rates | |||||||||||||
Range | Weighted- Average | Discount Rates | |||||||||||
Domestic mutual funds contracts asset | 3% to 9% | 6% | 14.50% | ||||||||||
Permal funds-of-hedge funds contracts and trade name assets | (1)% to 17% | 8% | 16.00% | ||||||||||
Projected cash flow growth rates for these assets are most dependent on product investment performance, client AUM flows, and market conditions. Discount rates are influenced by changes in market conditions, as well as interest rates and other factors. Decreases in the projected cash flow growth rates and/or increases in the discount rates could result in lower fair value measurements and potential additional impairments that could be material. | |||||||||||||
As of March 31, 2014, amortizable asset management contracts are being amortized over a weighted-average remaining life of 3.2 years. | |||||||||||||
Estimated amortization expense for each of the next five fiscal years is as follows: | |||||||||||||
2015 | $ | 3,381 | |||||||||||
2016 | 3,145 | ||||||||||||
2017 | 2,479 | ||||||||||||
2018 | 482 | ||||||||||||
2019 | 482 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 9,969 | |||||||||||
The change in the carrying value of goodwill is summarized below: | |||||||||||||
Gross Book Value | Accumulated Impairment | Net Book Value | |||||||||||
Balance as of March 31, 2012 | $ | 2,436,945 | $ | (1,161,900 | ) | $ | 1,275,045 | ||||||
Impact of excess tax basis amortization | (21,573 | ) | — | (21,573 | ) | ||||||||
Business acquisition (see Note 2) | 28,983 | — | 28,983 | ||||||||||
Other, including changes in foreign exchange rates | (13,290 | ) | — | (13,290 | ) | ||||||||
Balance as of March 31, 2013 | 2,431,065 | (1,161,900 | ) | 1,269,165 | |||||||||
Impact of excess tax basis amortization | (21,675 | ) | — | (21,675 | ) | ||||||||
Other, including changes in foreign exchange rates | (6,967 | ) | — | (6,967 | ) | ||||||||
Balance as of March 31, 2014 | $ | 2,402,423 | $ | (1,161,900 | ) | $ | 1,240,523 | ||||||
Legg Mason recognizes the tax benefit of the amortization of excess tax basis related to the CAM acquisition. In accordance with accounting guidance for income taxes, the tax benefit is recorded as a reduction of goodwill and deferred tax liabilities as the benefit is realized. |
ShortTerm_Borrowings_and_LongT
Short-Term Borrowings and Long-Term Debt | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Short-Term Borrowings and Long-Term Debt | ' | ||||||||||||||||
6. SHORT-TERM BORROWINGS AND LONG-TERM DEBT | |||||||||||||||||
The disclosures below include details of Legg Mason’s debt, excluding the debt of CIVs. See Note 17, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the debt of CIVs. | |||||||||||||||||
As of March 31, 2014 and 2013, Legg Mason had $750,000 and $500,000, respectively, of revolving credit facility capacity. Pursuant to a capital plan, in June 2012, Legg Mason entered into an unsecured credit agreement which provided for a $500,000 revolving credit facility and a $500,000 term loan, which was repaid in fiscal 2014, as further discussed below. The proceeds of the term loan were used to repay the $500,000 of outstanding borrowings under the previous revolving credit facility, which was then terminated. In January 2014, Legg Mason entered into a $250,000 incremental borrowing credit facility, which was contemplated in, and is in addition to the $500,000 revolving credit facility. Both revolving credit facilities expire in June 2017. The revolving credit facilities have interest rates of LIBOR plus 150 basis points and annual commitment fees of 20 basis points. The interest rates may change in the future based on changes in Legg Mason's credit ratings. These revolving credit facilities are available to fund working capital needs and for general corporate purposes. There were no borrowings outstanding under either of these facilities as of March 31, 2014 or 2013. | |||||||||||||||||
The revolving credit facilities have standard financial covenants, including a maximum net debt to EBITDA ratio (as defined in the documents) of 2.5 to 1 and minimum EBITDA to interest ratio (as defined in the documents) of 4.0 to 1. As of March 31, 2014, Legg Mason's net debt to EBITDA ratio was 1.2 to 1 and EBITDA to interest expense ratio was 12.5 to 1, and therefore, Legg Mason has maintained compliance with the applicable covenants. | |||||||||||||||||
The accreted value of long-term debt consists of the following: | |||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Current Accreted Value | Unamortized Discount | Maturity Amount | Accreted Value | ||||||||||||||
5.5% senior notes | $ | 645,042 | $ | 4,958 | $ | 650,000 | $ | 644,077 | |||||||||
5.625% senior notes | 393,784 | 6,216 | 400,000 | — | |||||||||||||
Five-year amortizing term loan | — | — | — | 500,000 | |||||||||||||
Other term loans | 438 | — | 438 | 877 | |||||||||||||
Subtotal | 1,039,264 | 11,174 | 1,050,438 | 1,144,954 | |||||||||||||
Less: current portion | 438 | — | 438 | 50,438 | |||||||||||||
Total | $ | 1,038,826 | $ | 11,174 | $ | 1,050,000 | $ | 1,094,516 | |||||||||
In January 2008, Legg Mason sold $1,250,000 of 2.5% convertible senior notes (the "Convertible Notes”) due 2015, which were refinanced in May 2012 pursuant to the aforementioned capital plan. The refinancing was effected through the issuance of $650,000 of 5.5% senior notes (the "5.5% Senior Notes) due May 2019, the net proceeds of which, together with cash on hand and $250,000 of additional borrowing under a then existing revolving credit facility, were used to repurchase the entire $1,250,000 face amount of the Convertible Notes. | |||||||||||||||||
5.5% Senior Notes | |||||||||||||||||
The $650,000 5.5% Senior Notes due May 2019, were sold at a discount of $6,754, which is being amortized to interest expense over the seven-year term. The 5.5% Senior Notes are subject to certain nonfinancial covenants, including provisions relating to dispositions of certain assets, which could require a percentage of any related proceeds to be applied to accelerated repayments. The 5.5% Senior Notes can be redeemed at any time prior to their scheduled maturity, in part or in aggregate, at the greater of the related principal amount at that time or the sum of the remaining scheduled payments discounted at the Treasury rate (as defined) plus 0.50%, together with any related accrued and unpaid interest. In February 2013, the 5.5% Senior Notes were registered to trade publicly, consistent with the terms of a registration rights agreement signed in connection with the issuance. In addition, under the terms of the 5.5% Senior Notes, the interest rate paid on these notes will increase modestly if Legg Mason's credit ratings are reduced below investment grade. | |||||||||||||||||
5.625% Senior Notes | |||||||||||||||||
In January 2014, Legg Mason issued $400,000 of 5.625% senior notes due 2044 (the "5.625% Senior Notes"), the proceeds of which, plus cash on hand, were used to repay all $450,000 of outstanding borrowings under the five-year term loan entered into in conjunction with the unsecured credit agreement noted above. The 5.625% Senior Notes were sold at a discount of $6,260 which is being amortized to interest expense over the 30-year term. The 5.625% Senior Notes can be redeemed at any time prior to their scheduled maturity in part or in aggregate, at the greater of the related principal amount at that time or the sum of the remaining scheduled payments discounted at the treasury rate (as defined) plus 0.30%, together with any related accrued and unpaid interest. | |||||||||||||||||
2.5% Convertible Senior Notes and Related Hedge Transactions | |||||||||||||||||
Prior to the repurchase of the Convertible Notes in May 2012, as previously discussed, Legg Mason was accreting the carrying value of the Convertible Notes to the principal amount at maturity using an interest rate of 6.5% (the effective borrowing rate for non-convertible debt at the time of issuance) over its expected life of seven years, resulting in interest expense of $5,839 and $39,077 for the years ended March 31, 2013 and 2012, respectively. The Convertible Notes were convertible, if certain conditions were met, at an initial conversion rate of 11.3636 shares of Legg Mason common stock per one thousand dollar principal amount of Convertible Notes (equivalent to a conversion price of approximately $88 per share), or a maximum of 14,205 shares, subject to adjustment. Unconverted notes would mature at par in January 2015. Upon conversion of a one thousand dollar principal amount note, the holder would receive cash in an amount equal to one thousand dollars or, if less, the conversion value of the note. If the conversion value exceeded the principal amount of the Note at conversion, Legg Mason would also deliver, at its election, cash or common stock or a combination of cash and common stock for the conversion value in excess of one thousand dollars. | |||||||||||||||||
In connection with the sale of the Convertible Notes, in January 2008, Legg Mason entered into convertible note hedge transactions with respect to its common stock (the “Purchased Call Options”) with financial institution counterparties (“Hedge Providers”). The Purchased Call Options were exercisable solely in connection with any conversions of the Convertible Notes in the event that the market value per share of Legg Mason common stock at the time of exercise was greater than the exercise price of the Purchased Call Options, which was equal to the $88 conversion price of the Convertible Notes, subject to adjustment. Simultaneously, in separate transactions Legg Mason also sold to the Hedge Providers warrants to purchase, in the aggregate and subject to adjustment, 14,205 shares of common stock on a net share-settled basis at an exercise price of $107.46 per share of common stock. The Purchased Call Options and warrants were not part of the terms of the Convertible Notes and did not affect the holders' rights under the Convertible Notes. These hedging transactions had a net cost of approximately $83,000, which was paid from the proceeds of the Convertible Notes and recorded as a reduction of additional paid-in capital. | |||||||||||||||||
These transactions effectively increased the conversion price of the Convertible Notes to $107.46 per share of common stock. Legg Mason had contractual rights, and, at execution of the related agreements, had the ability to settle its obligations under the conversion feature of the Convertible Notes, the Purchased Call Options and warrants, with Legg Mason common stock. Accordingly, these transactions were accounted for as equity, with no subsequent adjustment for changes in the value of these obligations. | |||||||||||||||||
The terms of the repurchase of the Convertible Notes in May 2012 noted above included their repayment at par plus accrued interest, a prepayment fee of $6,250, and a non-cash exchange of warrants (the “Warrants”) to the holders of the Convertible Notes that replicated and extended the contingent conversion feature of the Convertible Notes. The cash payment of $1,256,250 to repurchase the Convertible Notes was allocated between their liability and equity components based on a liability fair value of $1,193,971, determined using a then current market interest rate of 4.1%, resulting in a loss on debt extinguishment of $68,975, including $7,851 of accelerated deferred issue costs. The remaining balance of the cash payment was allocated to the equity component of the Convertible Notes for a $62,279 reduction of additional paid-in capital, offset by related tax benefits of $31,446. The $1,193,971 amount of cash repurchase payment allocated to the liability component of the Convertible Notes upon their extinguishment exceeds the initial allocated value at issuance of $977,933, requiring the Consolidated Statements of Cash Flows for the year ended March 31, 2013 to include an allocation of the $216,038 excess to operating activities. | |||||||||||||||||
The Warrants issued to the holders of the Convertible Notes in connection with the repurchase of the Convertible Notes provide for the purchase, in the aggregate and subject to adjustment, of 14,205 shares of Legg Mason common stock, on a net share settled basis, at an exercise price of $88 per share. Upon exercise of the Warrants, Legg Mason will be required to deliver to the holders of the Warrants, at its election, either shares of its common stock or cash, in an amount based on the excess of the market price per share of its common stock over the exercise price of the Warrants. The Warrants expire in July 2017. Legg Mason has had the option to settle its obligations under the Warrants with Legg Mason common stock. Accordingly, the Warrants are accounted for as equity. | |||||||||||||||||
In connection with the extinguishment of the Convertible Notes, the hedge transactions (Purchased Call Options and warrants) executed in connection with the initial issuance of the Convertible Notes were also terminated. | |||||||||||||||||
As of March 31, 2014, the aggregate maturities of long-term debt, based on their contractual terms, are as follows: | |||||||||||||||||
2015 | $ | 438 | |||||||||||||||
2016 | — | ||||||||||||||||
2017 | — | ||||||||||||||||
2018 | — | ||||||||||||||||
2019 | — | ||||||||||||||||
Thereafter | 1,050,000 | ||||||||||||||||
Total | $ | 1,050,438 | |||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
7. INCOME TAXES | |||||||||||||
The components of income (loss) before income tax provision (benefit) are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 320,890 | $ | (264,342 | ) | $ | 257,866 | ||||||
Foreign | 98,751 | (246,265 | ) | 45,217 | |||||||||
Total | $ | 419,641 | $ | (510,607 | ) | $ | 303,083 | ||||||
The components of income tax expense (benefit) are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | $ | 125,494 | $ | (74,185 | ) | $ | 54,179 | ||||||
Foreign | (1,450 | ) | (85,677 | ) | (7,850 | ) | |||||||
State and local | 13,761 | 9,003 | 25,723 | ||||||||||
Total income tax provision (benefit) | $ | 137,805 | $ | (150,859 | ) | $ | 72,052 | ||||||
Current | $ | 19,375 | $ | 6,496 | $ | 22,860 | |||||||
Deferred | 118,430 | (157,355 | ) | 49,192 | |||||||||
Total income tax provision (benefit) | $ | 137,805 | $ | (150,859 | ) | $ | 72,052 | ||||||
A reconciliation of the difference between the effective income tax (benefit) rate and the statutory federal income tax (benefit) rate is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision (benefit) at statutory U.S. federal income tax rate | 35 | % | (35.0 | )% | 35 | % | |||||||
State income taxes, net of federal income tax benefit(1) | 1.8 | 1.5 | 5.4 | ||||||||||
Effect of foreign tax rates(1) | (4.2 | ) | 3.8 | (1.8 | ) | ||||||||
Effect of loss on Australian restructuring | — | — | (6.0 | ) | |||||||||
Changes in U.K. tax rates on deferred tax assets and liabilities | (4.6 | ) | (3.5 | ) | (6.0 | ) | |||||||
Net (income) loss attributable to noncontrolling interests | 0.3 | 0.5 | (0.8 | ) | |||||||||
Other, net(1) | 4.5 | 3.2 | (2.0 | ) | |||||||||
Effective income tax (benefit) rate | 32.8 | % | (29.5 | )% | 23.8 | % | |||||||
-1 | State income taxes include changes in related valuation allowances, net of the impact on deferred tax assets of changes in state apportionment factors and planning strategies. The effect of foreign tax rates also includes changes in related valuation allowances. Other includes changes in federal valuation allowances and permanent tax adjustments. See schedule below for the change in valuation allowances by jurisdiction. | ||||||||||||
In July 2011, The U.K. Finance Act 2011 (the "Act") was enacted. The Act reduced the main U.K. corporate tax rate from 27% to 26% effective April 1, 2011, and from 26% to 25% effective April 1, 2012. In July 2012, The U.K. Finance Act 2012 was enacted, which further reduced the main U.K. corporate tax rate to 24% effective April 1, 2012 and 23% effective April 1, 2013. In July 2013, the Finance Bill 2013 was enacted, further reducing the main U.K. corporate tax rate to 21% effective April 1, 2014 and 20% effective April 1, 2015. The reductions in the U.K. corporate tax rate resulted in tax benefits of $19,164, $18,075 and $18,268, recognized in fiscal 2014, 2013 and 2012, respectively, as a result of the revaluation of deferred tax assets and liabilities at the new rates. In addition, during the year ended March 31, 2012, Legg Mason recorded $18,254 of tax benefits related to a restructuring of our Australian business. | |||||||||||||
Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Balance Sheets. These temporary differences result in taxable or deductible amounts in future years. A summary of Legg Mason's deferred tax assets and liabilities are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Accrued compensation and benefits | $ | 154,074 | $ | 107,411 | |||||||||
Accrued expenses | 61,575 | 73,181 | |||||||||||
Operating loss carryforwards | 267,940 | 449,806 | |||||||||||
Capital loss carryforwards | 10,015 | 41,256 | |||||||||||
Foreign tax credit carryforward | 235,661 | 115,819 | |||||||||||
Federal benefit of uncertain tax positions | 16,914 | 21,165 | |||||||||||
Mutual fund launch costs | 31,774 | 24,324 | |||||||||||
Net unrealized losses from investments | — | 4,447 | |||||||||||
Other | 303 | 5,086 | |||||||||||
Deferred tax assets | 778,256 | 842,495 | |||||||||||
Valuation allowance | (90,832 | ) | (115,815 | ) | |||||||||
Deferred tax assets after valuation allowance | $ | 687,424 | $ | 726,680 | |||||||||
2014 | 2013 | ||||||||||||
DEFERRED TAX LIABILITIES | |||||||||||||
Basis differences, principally for intangible assets and goodwill | $ | 72,596 | $ | 134,873 | |||||||||
Depreciation and amortization | 523,595 | 386,959 | |||||||||||
Net unrealized gains from investments | 4,743 | — | |||||||||||
Other | 221 | 1,528 | |||||||||||
Deferred tax liabilities | 601,155 | 523,360 | |||||||||||
Net deferred tax asset | $ | 86,269 | $ | 203,320 | |||||||||
Certain tax benefits associated with Legg Mason's employee stock plans are recorded directly in Stockholders' Equity. No tax benefit was recorded to equity in fiscal 2014, 2013 or 2012, due to the net operating loss position of the Company. As of March 31, 2014, an additional $7,424 of net operating loss will be recognized as an increase in Stockholders' Equity when ultimately realized. | |||||||||||||
Legg Mason has various loss carryforwards that may provide future tax benefits. Related valuation allowances are established in accordance with accounting guidance for income taxes, if it is management's opinion that it is more likely than not that these benefits will not be realized. Substantially all of Legg Mason's deferred tax assets related to U.S. federal and state and U.K. taxing jurisdictions. As of March 31, 2014, U.S. federal deferred tax assets aggregated $762,699, realization of which is expected to require approximately $3,800,000 of future U.S. earnings, approximately $673,317 of which must be in the form of foreign source income. Based on estimates of future taxable income, using assumptions consistent with those used in Legg Mason's goodwill impairment testing, it is more likely than not that current federal tax benefits relating to net operating losses are realizable and no valuation allowance is necessary at this time. With respect to those resulting from foreign tax credits, it is more likely than not that tax benefits relating to the utilization of $39,919 of foreign tax credits as credits will not be realized and an additional valuation allowance of $2,340 was provided in fiscal 2014. In addition, a valuation allowance was established in prior years for the substantial portion of our deferred tax assets relating to U.K. taxing jurisdictions. While tax planning may enhance Legg Mason's tax positions, the realization of these current tax benefits is not dependent on any significant tax strategies. | |||||||||||||
As of March 31, 2014, U.S. state deferred tax assets aggregated approximately $180,183. Due to limitations on utilization of net operating loss carryforwards and taking into consideration certain state tax planning strategies, a valuation allowance was established in prior years for state net operating loss benefits generated in certain jurisdictions. An additional valuation allowance of $8,639 was established in fiscal 2014 for the additional tax benefits generated in these jurisdictions. Additionally, $34,831 of fully reserved deferred tax assets relating to U.S. state capital loss carryforwards expired unused during fiscal 2014. Due to the uncertainty of future state apportionment factors and future effective state tax rates, the value of state net operating loss benefits ultimately realized may vary. | |||||||||||||
An increase to the valuation allowance of approximately $467 in fiscal 2014 was primarily related to the current year change in certain U.K. deferred tax assets for which a full valuation allowance was previously recognized. To the extent the analysis of the realization of deferred tax assets relies on deferred tax liabilities, Legg Mason has considered the timing, nature and jurisdiction of reversals, as well as, future increases relating to the tax amortization of goodwill and indefinite-life intangible assets. | |||||||||||||
The following deferred tax assets and valuation allowances relating to carryforwards have been recorded at March 31, 2014 and 2013, respectively. | |||||||||||||
2014 | 2013 | Expires Beginning | |||||||||||
after Fiscal Year | |||||||||||||
Deferred tax assets | |||||||||||||
U.S. federal net operating losses | $ | 80,515 | $ | 266,659 | 2029 | ||||||||
U.S. federal capital losses | 3,545 | 74 | 2015 | ||||||||||
U.S. federal foreign tax credits | 235,661 | 115,819 | 2015 | ||||||||||
U.S. charitable contributions | — | 5,401 | 2013 | ||||||||||
U.S. state net operating losses (1,2) | 168,173 | 161,136 | 2015 | ||||||||||
U.S. state capital losses | 532 | 34,960 | 2015 | ||||||||||
Foreign net operating losses | 19,252 | 22,011 | 2027 | ||||||||||
Foreign capital losses | 5,938 | 6,222 | n/a | ||||||||||
Total deferred tax assets for carryforwards | $ | 513,616 | $ | 612,282 | |||||||||
Valuation allowances | |||||||||||||
U.S. federal capital losses | $ | 74 | $ | 74 | |||||||||
U.S. federal foreign tax credits | 25,947 | 23,608 | |||||||||||
U.S. charitable contributions | — | 1,597 | |||||||||||
U.S. state net operating losses | 34,590 | 25,951 | |||||||||||
U.S. state capital losses | 129 | 34,960 | |||||||||||
Foreign net operating losses | 15,738 | 15,899 | |||||||||||
Foreign capital losses | 5,938 | 6,222 | |||||||||||
Valuation allowances for carryforwards | 82,416 | 108,311 | |||||||||||
Foreign other deferred assets | 8,416 | 7,504 | |||||||||||
Total valuation allowances | $ | 90,832 | $ | 115,815 | |||||||||
-1 | Substantially all of the U.S. state net operating losses carryforward through fiscal 2029. | ||||||||||||
-2 | Due to potential for change in the factors relating to apportionment of income to various states, the Company's effective state tax rates are subject to fluctuation which will impact the value of the Company's deferred tax assets, including net operating losses, and could have a material impact on the future effective tax rate of the Company. | ||||||||||||
Legg Mason had total gross unrecognized tax benefits of approximately $77,892, $72,650 and $90,831 as of March 31, 2014, 2013 and 2012, respectively. Of these totals, approximately $51,518, $46,340 and $62,400, respectively, (net of the federal benefit for state tax liabilities) are the amounts of unrecognized benefits which, if recognized, would favorably impact future income tax provisions and effective tax rates. During fiscal 2014, as a result of the net impact of expiring statutes of limitation and the completion of tax authority examinations, unrecognized benefits of $2,927 were realized. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized gross tax benefits for the years ended March 31, 2014, 2013 and 2012, is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 72,650 | $ | 90,831 | $ | 77,653 | |||||||
Additions based on tax positions related to the current year | 5,659 | 11,726 | 9,822 | ||||||||||
Additions for tax positions of prior years | 12,610 | 8,439 | 10,668 | ||||||||||
Reductions for tax positions of prior years | (138 | ) | (13,083 | ) | (3,575 | ) | |||||||
Decreases related to settlements with taxing authorities | (12,889 | ) | (25,205 | ) | (3,185 | ) | |||||||
Expiration of statutes of limitations | — | (58 | ) | (552 | ) | ||||||||
Balance, end of year | $ | 77,892 | $ | 72,650 | $ | 90,831 | |||||||
Although management cannot predict with any degree of certainty the timing of ultimate resolution of matters under review by various taxing jurisdictions, at this time the Company does not anticipate any changes to the gross unrecognized tax benefits balance within the next 12 months as a result of the statutes of limitations or the completion of tax authorities' examinations. | |||||||||||||
The Company accrues interest related to unrecognized tax benefits in interest expense and recognizes penalties in other operating expense. During the years ended March 31, 2014, 2013 and 2012, the Company recognized approximately $(580), $5,500, and $1,300, respectively, which was substantially all interest. At March 31, 2014, 2013 and 2012, Legg Mason had approximately $7,300, $14,000, and $10,000, respectively, accrued for interest and penalties on tax contingencies in the Consolidated Balance Sheets. | |||||||||||||
Legg Mason's prior year tax returns are subject to examination by the Internal Revenue Service, the Inland Revenue Service, Brazilian and other tax authorities in various other countries and states. The following tax years remain open to income tax examination for each of the more significant jurisdictions where Legg Mason is subject to income taxes: after fiscal 2009 for U.S. federal; after fiscal 2012 for the United Kingdom ("U.K."); after fiscal 2005 for Brazil; after fiscal 2009 for the state of California; after fiscal 2008 for the state of New York; and after fiscal 2010 for the states of Connecticut, Maryland and Massachusetts. The Company does not anticipate making any significant cash payments with the settlement of these audits in excess of amounts that have been reserved. | |||||||||||||
During the year ended March 31, 2014, Legg Mason revised its plan and completed repatriation of approximately $301,000 of foreign accumulated earnings in order to make the cash available in the U.S. for general corporate purposes. Due to certain tax planning strategies, Legg Mason anticipates that it will generate a benefit of approximately $12,000 with respect to repatriations and has adjusted the tax reserve accordingly. No further repatriation of accumulated prior period foreign earnings is currently planned. However, if circumstances change, Legg Mason will provide for and pay any applicable additional U.S. taxes in connection with repatriation of these funds. It is not practical at this time to determine the income tax liability that would result from any further repatriation of accumulated foreign earnings. | |||||||||||||
Except as noted above, Legg Mason intends to permanently reinvest cumulative undistributed earnings of its foreign subsidiaries in foreign operations. Accordingly, no U.S. federal income taxes have been provided for the undistributed earnings to the extent that they are permanently reinvested in Legg Mason's foreign operations. It is not practical at this time to determine the income tax liability that would result upon repatriation of the earnings. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
8. COMMITMENTS AND CONTINGENCIES | |||||||||||||
Legg Mason leases office facilities and equipment under non-cancelable operating leases, and also has multi-year agreements for certain services. These leases and service agreements expire on varying dates through fiscal 2026. Certain leases provide for renewal options and contain escalation clauses providing for increased rentals based upon maintenance, utility and tax increases. | |||||||||||||
As of March 31, 2014, the minimum annual aggregate rentals under operating leases and service agreements are as follows: | |||||||||||||
2015 | $ | 134,280 | |||||||||||
2016 | 115,694 | ||||||||||||
2017 | 97,595 | ||||||||||||
2018 | 87,080 | ||||||||||||
2019 | 72,879 | ||||||||||||
Thereafter | 351,275 | ||||||||||||
Total | $ | 858,803 | |||||||||||
The minimum rental commitments shown above have not been reduced by $172,526 for minimum sublease rentals to be received in the future under non-cancelable subleases, of which approximately 40% is due from one counterparty. The lease reserve liability, included in the table below, for space subleased as of March 31, 2014 was $36,170. If a sub-tenant defaults on a sublease, Legg Mason may incur operating charges to adjust the existing lease reserve liability to reflect expected future sublease rentals at reduced amounts, as a result of the current commercial real estate market. | |||||||||||||
The above minimum rental commitments include $784,221 in real estate and equipment leases and $74,582 in service and maintenance agreements. | |||||||||||||
The minimum rental commitments shown above include $30,200 for commitments related to space that has been vacated, but for which subleases are being pursued. The related lease reserve liability, included in the table below, was $19,330 as of March 31, 2014, and remains subject to adjustment based on circumstances in the real estate markets that may require a change in assumptions or the actual terms of a sublease that is ultimately secured. The lease reserve liability takes into consideration various assumptions, including the expected amount of time it will take to secure a sublease agreement and prevailing rental rates in the applicable real estate markets. | |||||||||||||
The table below presents a summary of the changes in the lease reserve liability for subleased space and vacated space for which subleases are being pursued: | |||||||||||||
Balance as of March 31, 2011 | $ | 40,521 | |||||||||||
Accrued charges for vacated and subleased space (1) | 17,391 | ||||||||||||
Payments, net | (12,397 | ) | |||||||||||
Adjustments and other | (752 | ) | |||||||||||
Balance as of March 31, 2012 | 44,763 | ||||||||||||
Accrued charges for vacated and subleased space (1) | 39,080 | ||||||||||||
Payments, net | (15,341 | ) | |||||||||||
Adjustments and other | (1,590 | ) | |||||||||||
Balance as of March 31, 2013 | 66,912 | ||||||||||||
Accrued charges for vacated and subleased space (1) | 7,371 | ||||||||||||
Payments, net | (17,117 | ) | |||||||||||
Adjustments and other | (1,666 | ) | |||||||||||
Balance as of March 31, 2014 | $ | 55,500 | |||||||||||
(1) Included in Occupancy expense in the Consolidated Statements of Income (Loss) | |||||||||||||
The table above includes activity related to our business streamlining initiative. See Note 15 for additional information. | |||||||||||||
The following table reflects rental expense under all operating leases and servicing agreements. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Rental expense | $ | 130,880 | $ | 138,488 | $ | 140,285 | |||||||
Less: sublease income | 16,289 | 14,750 | 14,310 | ||||||||||
Net rent expense | $ | 114,591 | $ | 123,738 | $ | 125,975 | |||||||
Legg Mason recognizes rent expense ratably over the lease period based upon the aggregate lease payments. The lease period is determined as the original lease term without renewals, unless and until the exercise of lease renewal options is reasonably assured, and also includes any period provided by the landlord as a "free rent" period. Aggregate lease payments include all rental payments specified in the contract, including contractual rent increases, and are reduced by any lease incentives received from the landlord, including those used for tenant improvements. | |||||||||||||
As of March 31, 2014, Legg Mason had commitments to invest approximately $34,536 in limited partnerships that make private investments. These commitments are expected to be funded as required through the end of the respective investment periods ranging through fiscal 2021. | |||||||||||||
In connection with the acquisition of Fauchier, as further discussed in Note 2, contingent consideration of up to approximately $25,000 and approximately $33,000 (using the exchange rate between the British pound and U.S. dollar as of March 31, 2014), may be due on or about the second and fourth anniversaries of closing, respectively, which is dependent upon achieving certain levels of revenue, net of distribution costs, and subject to a potential catch-up adjustment in the fourth anniversary payment for any second anniversary payment shortfall. The fair value of the contingent consideration liability was $29,553 as of March 31, 2014, an increase of $7,653 from March 31, 2013, with $5,000 attributable to revised estimates of amounts payable and $2,653 attributable to changes in the exchange rate and interest amortization. Legg Mason has executed currency forwards to economically hedge the risk of movements in the exchange rate between the U.S. dollar and the British pound in which the estimated contingent liability payment amounts are denominated. See Note 14 for additional information regarding derivatives and hedging. | |||||||||||||
In connection with the acquisition of QS Investors, as further discussed in Note 2, Legg Mason will pay an initial purchase price of $11,000 and contingent consideration of up to $10,000 and $20,000 may be due on or about the second and fourth anniversaries of closing, respectively, dependent on the achievement of certain net revenue targets, and subject to a potential catch-up adjustment in the fourth anniversary payment for any second anniversary payment shortfall. | |||||||||||||
In the normal course of business, Legg Mason enters into contracts that contain a variety of representations and warranties and that provide general indemnifications, which are not considered financial guarantees by relevant accounting guidance. Legg Mason’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against Legg Mason that have not yet occurred. | |||||||||||||
Legg Mason has been the subject of customer complaints and has also been named as a defendant in various legal actions arising primarily from securities brokerage, asset management and investment banking activities, including certain class actions, which primarily allege violations of securities laws and seek unspecified damages, which could be substantial. In the normal course of its business, Legg Mason has also received subpoenas and is currently involved in governmental and industry self-regulatory agency inquiries, investigations and, from time to time, proceedings involving asset management activities. In accordance with guidance for accounting for contingencies, Legg Mason has established provisions for estimated losses from pending complaints, legal actions, investigations and proceedings when it is probable that a loss has been incurred and a reasonable estimate of loss can be made. | |||||||||||||
In a transaction with Citigroup in December 2005, Legg Mason transferred to Citigroup the subsidiaries that constituted its Private Client/Capital Markets ("PC/CM") businesses, thus transferring the entities that would have primary liability for most of the customer complaint, litigation and regulatory liabilities and proceedings arising from those businesses. However, as part of that transaction, Legg Mason agreed to indemnify Citigroup for most customer complaint, litigation and regulatory liabilities of Legg Mason's former PC/CM businesses that result from pre-closing events. While the ultimate resolution of these matters cannot be determined based on current information, after consultation with legal counsel, management believes that any accrual or range of reasonably possible losses as of March 31, 2014 is not material. Similarly, although Citigroup transferred to Legg Mason the entities that would be primarily liable for most customer complaint, litigation and regulatory liabilities and proceedings of the CAM business, Citigroup has agreed to indemnify Legg Mason for most customer complaint, litigation and regulatory liabilities of the CAM business that result from pre-closing events. | |||||||||||||
One of Legg Mason's asset management subsidiaries was named as the defendant in a lawsuit filed by a former institutional client in late August 2011. Legg Mason settled this matter in the fourth quarter of fiscal 2014. The settlement was substantially covered by insurance and did not have a material effect on Legg Mason's financial position, results of operations or cash flows. | |||||||||||||
Additionally, there were two matters subject to regulatory investigations involving one of Legg Mason's asset management subsidiaries regarding its compliance with applicable legal requirements with respect to investments made for certain client accounts. These matters have been settled with the regulators. The settlements were substantially covered by insurance and did not have a material effect on Legg Mason's financial position, results of operations or cash flows. | |||||||||||||
Legg Mason cannot estimate the reasonably possible loss or range of loss associated with matters of litigation and other proceedings, including those described above as customer complaints, legal actions, inquiries, proceedings and investigations. The inability to provide a reasonably possible amount or range of losses is not because there is uncertainty as to the ultimate outcome of a matter, but because liability and damage issues have not developed to the point where Legg Mason can conclude that there is both a reasonable possibility of a loss and a meaningful amount or range of possible losses. There are numerous aspects to customer complaints, legal actions, inquiries, proceedings and investigations that prevent Legg Mason from estimating a related amount or range of reasonably possible losses. These aspects include, among other things, the nature of the matters; that significant relevant facts are not known, are uncertain or are in dispute; and that damages sought are not specified, are uncertain, unsupportable or unexplained. In addition, for legal actions, discovery may not yet have started, may not be complete or may not be conclusive, and meaningful settlement discussions may not have occurred. Further, for regulatory matters, investigations may run their course without any clear indication of wrongdoing or fault until their conclusion. | |||||||||||||
In management's opinion, an adequate accrual has been made as of March 31, 2014, to provide for any probable losses that may arise from matters for which the Company could reasonably estimate an amount. Legg Mason's financial condition, results of operations and cash flows could be materially affected during a period in which a matter is ultimately resolved. In addition, the ultimate costs of litigation-related charges can vary significantly from period-to-period, depending on factors such as market conditions, the size and volume of customer complaints and claims, including class action suits, and recoveries from indemnification, contribution, insurance reimbursement, or reductions in compensation under revenue share arrangements. | |||||||||||||
As of March 31, 2014 and 2013, Legg Mason's liability for losses and contingencies was $500 and $20,300, respectively. During fiscal 2014, 2013 and 2012, Legg Mason had charges relating to litigation and other proceedings of approximately $200, $5,200, and $1,100, respectively (net of recoveries of $19,300 and $15,200 in fiscal 2014 and 2013, respectively). |
Employee_Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2014 | |
Pension and Other Postretirement Benefit Expense [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
9. EMPLOYEE BENEFITS | |
Legg Mason, through its subsidiaries, maintains various defined contribution plans covering substantially all employees. Through these plans, Legg Mason can make two types of discretionary contributions. One is a profit sharing contribution to eligible Plan participants based on a percentage of qualified compensation and the other is a match of employee 401(k) contributions. Matches range from 50% to 100% of employee 401(k) contributions, up to a maximum of the lesser of up to 6% of employee compensation or a specified amount up to $15 per year. Corporate profit sharing and matching contributions, together with contributions made under subsidiary plans, totaled $29,355, $25,868 and $22,336 in fiscal 2014, 2013 and 2012, respectively. In addition, employees can make voluntary contributions under certain plans. |
Capital_Stock
Capital Stock | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||
CAPITAL STOCK | ' | |||||||||
10. CAPITAL STOCK | ||||||||||
At March 31, 2014, the authorized numbers of common and preferred shares were 500,000 and 4,000, respectively. At March 31, 2014 and 2013, there were 10,333 and 11,948 shares of common stock, respectively, reserved for issuance under Legg Mason's equity plans. | ||||||||||
In May 2012, as part of a capital plan, Legg Mason's Board of Directors authorized $1,000,000 for additional purchases of Legg Mason common stock, as well as the completion of the remaining $155,000 of a previously authorized share repurchase program. There is no expiration date attached to this authorization. During fiscal 2014, Legg Mason purchased and retired 9,677 shares of its common stock for $359,996 through open market purchases. During fiscal 2013, Legg Mason purchased and retired 16,199 shares of its common stock for $425,475 through open market purchases, which completed the repurchase of its common stock under the previous authorization, and began purchases under the new authorization. The remaining balance of the authorized stock buyback is approximately $370,000. | ||||||||||
In May 2008, Legg Mason issued $1,150,000 of Equity Units, each unit consisting of a 5% interest in one thousand dollar principal amount of senior notes due June 30, 2021, and a purchase contract committing the holder to purchase shares of Legg Mason's common stock by June 30, 2011. During fiscal 2012, Legg Mason issued 1,830 shares of Legg Mason common stock upon the exercise of the purchase contracts from the remaining Equity Units and the senior notes from the Equity Units were retired in a remarketing. | ||||||||||
As discussed in Note 6, warrants issued in connection with the repurchase of the Notes could result in the issuance of a maximum of 14,205 shares of Legg Mason common stock, subject to adjustment, if certain conditions are met. | ||||||||||
Changes in common stock for the three years ended March 31, 2014, 2013 and 2012, respectively, are as follows: | ||||||||||
Years Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
COMMON STOCK | ||||||||||
Beginning balance | 125,341 | 139,874 | 150,219 | |||||||
Shares issued for: | ||||||||||
Stock option exercises and other stock-based compensation | 839 | 80 | 172 | |||||||
Deferred compensation employee stock trust | 50 | 71 | 68 | |||||||
Deferred compensation, net | 1,175 | 1,925 | 1,246 | |||||||
Shares repurchased and retired | (9,677 | ) | (16,199 | ) | (13,597 | ) | ||||
Employee tax withholding by settlement of net share transactions | (555 | ) | (410 | ) | (64 | ) | ||||
Equity Units exchanged | — | — | 1,830 | |||||||
Ending balance | 117,173 | 125,341 | 139,874 | |||||||
Dividends declared per share were $0.52, $0.44 and $0.32 for fiscal 2014, 2013 and 2012, respectively. Dividends declared but not paid at March 31, 2014, 2013 and 2012, were $14,945, $14,185 and $11,493, respectively, and are included in Other current liabilities. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
11. STOCK-BASED COMPENSATION | |||||||||||
Legg Mason's stock-based compensation includes stock options, an employee stock purchase plan, market-based performance shares payable in common stock, restricted stock awards and units, management equity plans and deferred compensation payable in stock. Effective July 26, 2011, the number of shares authorized to be issued under Legg Mason's active equity incentive stock plan was increased by 6,500 to 41,500. Shares available for issuance under the active equity incentive stock plan as of March 31, 2014, were 9,740. Options under Legg Mason’s employee stock plans have been granted at prices not less than 100% of the fair market value. Options are generally exercisable in equal increments over four to five years and expire within eight to ten years from the date of grant. | |||||||||||
Stock Options | |||||||||||
Compensation expense relating to stock options for the years ended March 31, 2014, 2013 and 2012, was $13,530, $10,979 and $14,076, respectively. The related income tax benefit for the years ended March 31, 2014, 2013 and 2012, was $5,244, $4,293 and $5,539, respectively. | |||||||||||
Stock option transactions under Legg Mason's equity incentive plans during the years ended March 31, 2014, 2013 and 2012 are summarized below: | |||||||||||
Number of Shares | Weighted-Average Exercise Price Per Share | ||||||||||
Options outstanding at March 31, 2011 | 5,419 | $ | 59.82 | ||||||||
Granted | 810 | 33.99 | |||||||||
Exercised | (117 | ) | 25.32 | ||||||||
Canceled/forfeited | (488 | ) | 48.8 | ||||||||
Options outstanding at March 31, 2012 | 5,624 | 57.78 | |||||||||
Granted | 966 | 23.72 | |||||||||
Exercised | (25 | ) | 21.8 | ||||||||
Canceled/forfeited | (1,204 | ) | 51.87 | ||||||||
Options outstanding at March 31, 2013 | 5,361 | 53.13 | |||||||||
Granted | 1,215 | 33.64 | |||||||||
Exercised | (804 | ) | 30.52 | ||||||||
Canceled/forfeited | (971 | ) | 97.49 | ||||||||
Options outstanding at March 31, 2014 | 4,801 | $ | 43.02 | ||||||||
The total intrinsic value of options exercised during the years ended March 31, 2014, 2013 and 2012, was $6,064, $168 and $398, respectively. At March 31, 2014, the aggregate intrinsic value of options outstanding was $72,724. | |||||||||||
The following information summarizes Legg Mason's stock options outstanding at March 31, 2014: | |||||||||||
Exercise | Option Shares | Weighted-Average | Weighted-Average | ||||||||
Price Range | Outstanding | Exercise Price | Remaining Life | ||||||||
Per Share | (in years) | ||||||||||
$ 12.65 - $ 25.00 | 846 | $ | 22.95 | 5.8 | |||||||
25.01 - 35.00 | 2,403 | 31.89 | 4.9 | ||||||||
35.01 - 94.00 | 681 | 35.16 | 7.1 | ||||||||
94.01 - 100.00 | 416 | 95.13 | 0.3 | ||||||||
100.01 - 134.97 | 455 | 103.21 | 1.2 | ||||||||
4,801 | |||||||||||
At March 31, 2014, 2013 and 2012, options were exercisable for 2,531, 3,254 and 3,334 shares, respectively, and the weighted-average exercise prices were $54.04, $69.07 and $73.60, respectively. Stock options exercisable at March 31, 2014, have a weighted-average remaining contractual life of 3.0 years. At March 31, 2014, the aggregate intrinsic value of options exercisable was $31,180. | |||||||||||
The following information summarizes Legg Mason's stock options exercisable at March 31, 2014: | |||||||||||
Exercise | Option Shares | Weighted-Average | |||||||||
Price Range | Exercisable | Exercise Price | |||||||||
Per Share | |||||||||||
$ 12.65 - $ 25.00 | 241 | $ | 21.03 | ||||||||
25.01 - 35.00 | 1,412 | 31.8 | |||||||||
35.01 - 94.00 | 7 | 35.16 | |||||||||
94.01 - 100.00 | 416 | 95.13 | |||||||||
100.01 - 134.97 | 455 | 103.21 | |||||||||
2,531 | |||||||||||
The following information summarizes unvested stock options under Legg Mason's equity incentive plans for the year ended March 31, 2014: | |||||||||||
Number | Weighted-Average | ||||||||||
of Shares | Grant Date | ||||||||||
Fair Value | |||||||||||
Shares unvested at March 31, 2013 | 2,107 | $ | 11.65 | ||||||||
Granted | 1,215 | 33.64 | |||||||||
Vested | (984 | ) | 29.66 | ||||||||
Canceled/forfeited | (68 | ) | 29.73 | ||||||||
Shares unvested at March 31, 2014 | 2,270 | $ | 30.74 | ||||||||
Unamortized compensation cost related to unvested options at March 31, 2014, was $16,905 and is expected to be recognized over a weighted-average period of 1.5 years. | |||||||||||
Cash received from exercises of stock options under Legg Mason's equity incentive plans was $23,818, $660 and $2,851 for the years ended March 31, 2014, 2013 and 2012, respectively. The tax benefit expected to be realized for the tax deductions from these option exercises totaled $1,815, $45 and $47 for the years ended March 31, 2014, 2013 and 2012, respectively. | |||||||||||
The weighted-average fair value of service-based stock option grants during the years ended March 31, 2014, 2013 and 2012, excluding those granted to our Chief Executive Officer in May 2013 discussed below, using the Black-Scholes option pricing model, was $12.13 , $9.47 and $13.13 per share, respectively. | |||||||||||
The following weighted-average assumptions were used in the model for grants in fiscal 2014, 2013 and 2012: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Expected dividend yield | 1.54 | % | 1.44 | % | 1.39 | % | |||||
Risk-free interest rate | 0.8 | % | 0.81 | % | 1.95 | % | |||||
Expected volatility | 45.08 | % | 51.8 | % | 47.16 | % | |||||
Expected life (in years) | 4.93 | 5.02 | 5.12 | ||||||||
Legg Mason uses an equally weighted combination of both implied and historical volatility to measure expected volatility for calculating Black-Scholes option values. | |||||||||||
In May 2013, Legg Mason awarded options to purchase 500 shares of Legg Mason, Inc. common stock at an exercise price of $31.46, equal to the then current market value of Legg Mason's common stock, to its Chief Executive Officer, which is included in the outstanding options table. The award had a grant date fair value of $5,525 and is subject to vesting requirements, 25% of which vests over a two-year service period; 25% of which vests over a two-year service period and is subject to Legg Mason's common stock price equaling or exceeding $36.46 for 20 consecutive trading days; 25% of which is subject to Legg Mason's common stock price equaling or exceeding $41.46 for 20 consecutive trading days; and 25% of which is subject to Legg Mason's common stock price equaling or exceeding $46.46 for 20 consecutive trading days; as well as a requirement that certain shares received upon exercise are retained for a two-year period. In January 2014, 25% of this award vested when the Legg Mason stock price met and exceeded $41.46 for 20 consecutive trading days. | |||||||||||
The weighted-average fair value per share for these awards of $11.05 was estimated as of the grant date using a grant price of $31.46, and a Monte Carlo option pricing model with the following assumptions: | |||||||||||
Expected dividend yield | 1.48 | % | |||||||||
Risk-free interest rate | 0.86 | % | |||||||||
Expected volatility | 44.05 | % | |||||||||
Restricted Stock | |||||||||||
Restricted stock and restricted stock unit transactions during the years ended March 31, 2014, 2013 and 2012 are summarized below: | |||||||||||
Number of Shares | Weighted-Average Grant Date Value | ||||||||||
Unvested shares at March 31, 2011 | 2,637 | $ | 33.01 | ||||||||
Granted | 1,370 | 33.48 | |||||||||
Vested | (1,075 | ) | 31.49 | ||||||||
Canceled/forfeited | (59 | ) | 32.68 | ||||||||
Unvested shares at March 31, 2012 | 2,873 | 33.83 | |||||||||
Granted | 2,185 | 24.04 | |||||||||
Vested | (1,177 | ) | 31.22 | ||||||||
Canceled/forfeited | (143 | ) | 58.3 | ||||||||
Unvested shares at March 31, 2013 | 3,738 | 27.99 | |||||||||
Granted | 1,369 | 35.66 | |||||||||
Vested | (1,622 | ) | 28.66 | ||||||||
Canceled/forfeited | (151 | ) | 29.04 | ||||||||
Unvested shares at March 31, 2014 | 3,334 | $ | 30.77 | ||||||||
The restricted stock and restricted stock unit awards were non-cash transactions. In fiscal 2014, 2013 and 2012, Legg Mason recognized $48,263, $46,351 and $32,826, respectively, in compensation expense and related tax benefits of $18,575, $17,697 and $12,705, respectively, for restricted stock and restricted stock unit awards. Unamortized compensation cost related to unvested restricted stock and restricted stock unit awards for 3,334 shares not yet recognized at March 31, 2014, was $63,479 and is expected to be recognized over a weighted-average period of 1.7 years. | |||||||||||
In connection with the change in Legg Mason's Chief Executive Officer in September 2012, 325 shares of restricted stock were granted to certain executives and key employees, with an aggregate value of $8,400. In March 2013, the vesting of 85 of these shares was accelerated. The remaining shares vested on March 31, 2014. Compensation expense for the year ended March 31, 2013, includes approximately $6,400 of accelerated stock-based net compensation costs associated with the departure of Legg Mason executive officers during fiscal 2013, of which $1,400 relates to the accelerated vesting of shares in March 2013. | |||||||||||
On January 28, 2008, the Legg Mason Compensation Committee approved grants to senior officers of 120 market-based performance shares. During fiscal 2013, the remaining 100 shares from this award were forfeited resulting in no outstanding balance as of March 31, 2013. | |||||||||||
Other | |||||||||||
Legg Mason has a qualified Employee Stock Purchase Plan covering substantially all U.S. employees. Shares of common stock are purchased in the open market on behalf of participating employees, subject to a 4,500 total share limit under the plan. Purchases are made through payroll deductions and, effective January 2014, Legg Mason provides a 15% contribution towards purchases, which is charged to earnings. Prior to January 2014, Legg Mason's contribution was 10%. During the fiscal years ended March 31, 2014, 2013 and 2012, approximately 85, 107, and 107 shares, respectively, have been purchased in the open market on behalf of participating employees. In fiscal 2014, 2013 and 2012, Legg Mason recognized $315, $238 and $267, respectively, in compensation expense related to the stock purchase plan. | |||||||||||
In June 2013, Legg Mason implemented a management equity plan and granted units to key employees of Permal that entitle them to participate in 15% of the future growth of the Permal enterprise value (subject to appropriate discounts), if any, subsequent to the grant date. On March 31, 2014, a similar management equity plan was implemented by Legg Mason with a grant to certain key employees of ClearBridge. Independent valuations determined the aggregate cost of the awards to be approximately $9,000 and $16,000 for Permal and ClearBridge, respectively, which will be recognized as Compensation expense in the Consolidated Statements of Income (Loss) over the related vesting periods, through December 2017 and March 2019, respectively. Both arrangements provide that one-half of the respective cost will be absorbed by the affiliate's incentive pool. Compensation expense related to the Permal management equity plan was $2,270 for the year ended March 31, 2014. | |||||||||||
Legg Mason also has an equity plan for non-employee directors. Under the current equity plan, directors may elect to receive shares of stock or restricted stock units. Prior to a July 19, 2007 amendment to the Plan, directors could also elect to receive stock options. Options granted under the old plan are immediately exercisable at a price equal to the market value of the shares on the date of grant and have a term of not more than ten years. In fiscal 2014, 2013 and 2012, Legg Mason recognized expense of $1,950, $1,250 and $1,375, respectively, for awards under this plan. Shares, options, and restricted stock units issuable under the equity plan are limited to 625 shares in aggregate, of which 360 shares were issued under the plan as of March 31, 2014. As of March 31, 2014, 2013 and 2012 non-employee directors held 32, 112 and 184, stock options, respectively, which are included in the outstanding options table. As of March 31, 2014, 2013 and 2012, non-employee directors held 64, 91 and 74 restricted stock units, respectively, which vest on the grant date and are, therefore, not included in the unvested shares of restricted stock and restricted stock units in the table above. During the year ended March 31, 2014, there were 39 restricted stock units distributed and non-employee directors did not exercise any stock options. During the years ended March 31, 2013 and 2012, non-employee directors did not exercise any stock options and no restricted stock units were distributed. During the years ended March 31, 2014, 2013 and 2012, non-employee directors were granted 12, 17 and 12 restricted stock units and 47, 35 and 31 shares of common stock, respectively. For the year ended March 31, 2014, there were 26 stock options canceled or forfeited from the current equity plan for non-employee directors. For the years ended March 31, 2013 and 2012, there were no stock options canceled or forfeited from the current equity plan for non-employee directors. For the years ended March 31, 2014, 2013 and 2012, there were 54, 72 and 36 stock options canceled or forfeited, respectively, related to a prior equity plan for non-employee directors which was discontinued in July 2005. | |||||||||||
During fiscal 2012, Legg Mason established a long-term incentive plan (the "LTIP") under its equity incentive plan, which provided an additional element of compensation to executives that is based on performance, determined as the achievement of a pre-defined amount of Legg Mason's cumulative adjusted earnings per share over the respective performance periods. Under the LTIP, current executive officers were granted cash value performance units in the quarters ended June 2011 and September 2012 for target amounts up to $1,850 in each period. Awards granted under the LTIP that vest may be settled in cash and/or shares of Legg Mason common stock, at the discretion of Legg Mason. The estimated payout amounts of the awards, if any, are expensed over the future vesting periods based on a probability assessment of the expected outcome under the LTIP provisions. The June 2011 grant performance period ended March 31, 2014, and no cash and/or shares were due. The September 2012 grant performance period ends March 31, 2015 and no further grants are intended. | |||||||||||
Deferred compensation payable in shares of Legg Mason common stock has been granted to certain employees in an elective plan. The vesting in the plan is immediate and the plan provides for discounts of up to 10% on contributions and dividends. There are 327 additional shares reserved for future issuance under the plan. In fiscal 2014, 2013 and 2012, Legg Mason recognized $160, $165 and $191, respectively, in compensation expense related to this plan. During fiscal 2014, 2013 and 2012, Legg Mason issued 51, 71 and 68 shares, respectively, under the plan with a weighted-average fair value per share at the grant date of $31.90, $23.07 and $27.05, respectively. The undistributed shares issued under this plan are held in a rabbi trust. Assets of the rabbi trust are consolidated with those of the employer, and the value of the employer's stock held in the rabbi trust is classified in stockholders' equity and accounted for in a manner similar to treasury stock. Therefore, the shares Legg Mason has issued to its rabbi trust and the corresponding liability related to the deferred compensation plan are presented as components of stockholders' equity as Employee stock trust and Deferred compensation employee stock trust, respectively. Shares held by the trust at March 31, 2014, 2013 and 2012, were 672, 726 and 690, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
12. EARNINGS PER SHARE | |||||||||||||
Basic EPS is calculated by dividing Net Income (Loss) Attributable to Legg Mason, Inc. by the weighted-average number of shares outstanding. The calculation of weighted-average shares includes common shares and unvested restricted shares deemed to be participating securities. Diluted EPS is similar to basic EPS, but adjusts for the effect of potentially issuable common shares, except when inclusion is antidilutive. For periods where a net loss attributable to Legg Mason, Inc. is reported, the inclusion of potentially issuable common shares will decrease the net loss per share. Since this would be antidilutive, such shares are excluded from the calculation. | |||||||||||||
In May 2012, as part of a capital plan, Legg Mason's Board of Directors authorized $1,000,000 for additional purchases of Legg Mason common stock, as well as the completion of the remaining $155,000 of a previously authorized share repurchase program. The capital plan authorizes using up to 65% of cash generated from future operations to purchase shares of Legg Mason common stock. | |||||||||||||
During the years ended March 31, 2014, 2013 and 2012, Legg Mason purchased and retired 9,677, 16,199 and 13,597 shares of its common stock, respectively, for $359,996, $425,475 and $400,266, through open market purchases. The fiscal 2013 purchases completed the repurchase of its common stock under the previous authorization and included approximately $270,000 of purchases under the new authorization. These repurchases reduced weighted-average shares outstanding by 4,908, 8,449, and 9,716 shares for the years ended March 31, 2014, 2013, and 2012, respectively. The par value of the shares repurchased is charged to common stock, with the excess of the purchase price over par first charged against additional paid-in capital, with the remaining balance, if any, charged against retained earnings. | |||||||||||||
In June 2011, Legg Mason issued 1,830 shares of common stock upon the exercise of purchase contracts on the remaining outstanding Equity Units. Of these shares, 1,380 shares are included in weighted-average shares outstanding for the year ended March 31, 2012. | |||||||||||||
The following table presents the computations of basic and diluted EPS: | |||||||||||||
Years ended March 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted-average basic shares outstanding | 121,941 | 133,226 | 143,292 | ||||||||||
Potential common shares: | |||||||||||||
Employee stock options | 442 | — | 57 | ||||||||||
Weighted-average diluted shares (1) | 122,383 | 133,226 | 143,349 | ||||||||||
Net Income (Loss) | $ | 281,836 | $ | (359,748 | ) | $ | 231,031 | ||||||
Less: Net income (loss) attributable to noncontrolling interests | (2,948 | ) | (6,421 | ) | 10,214 | ||||||||
Net Income (Loss) Attributable to Legg Mason, Inc. | $ | 284,784 | $ | (353,327 | ) | $ | 220,817 | ||||||
Net Income (Loss) per share Attributable to Legg Mason, Inc. common shareholders | |||||||||||||
Basic | $ | 2.34 | $ | (2.65 | ) | $ | 1.54 | ||||||
Diluted | $ | 2.33 | $ | (2.65 | ) | $ | 1.54 | ||||||
-1 | Diluted shares are the same as basic shares for periods with a net loss. | ||||||||||||
The diluted EPS calculations for the years ended March 31, 2014 and 2013, exclude any potential common shares issuable under the 14,205 warrants issued in connection with the repurchase of the 2.5% Convertible Senior Notes in May 2012 because the market price of Legg Mason common stock did not exceed the exercise price, and therefore, the warrants would be antidilutive. The diluted EPS calculations for the years ended March 31, 2013 and 2012, exclude any potential common shares issuable under the 2.5% Convertible Senior Notes because the market price of Legg Mason common stock had not exceeded the price at which conversion would be dilutive using the treasury stock method. Also, at March 31, 2012, warrants issued in connection with the convertible note hedge transactions associated with the issuance of the 2.5% Convertible Senior Notes are excluded from the calculation of diluted EPS because the effect would be antidilutive. | |||||||||||||
Options to purchase 2,620 and 5,239 shares for the years ended March 31, 2014 and 2012, respectively, were not included in the computation of diluted EPS because the presumed proceeds from exercising such options, including the related income tax benefits, exceed the average price of the common shares for the period and therefore the options are deemed antidilutive. Further, market-based options are excluded from potential dilution until the designated market condition is met. The diluted EPS calculation for the year ended March 31, 2013, excludes 5,730 potential common shares that are antidilutive due to the net loss for the fiscal year. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||
13. ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||
Accumulated other comprehensive income includes cumulative foreign currency translation adjustments and net of tax, gains and losses on investment securities. The change in the accumulated translation adjustments for fiscal 2014 and 2013, primarily resulted from the impact of changes in the Brazilian real, the Australian dollar, the Japanese yen, and the British pound in relation to the U.S. dollar on the net assets of Legg Mason's subsidiaries in Brazil, Australia, Japan, and the U.K., for which the real, the Australian dollar, the yen, and the pound are the functional currencies, respectively. | |||||||||
A summary of Legg Mason's accumulated other comprehensive income as of March 31, 2014 and 2013, is as follows: | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | 37,835 | $ | 47,259 | |||||
Unrealized gains on investment securities, net of tax provision of $76 and $187, respectively | 114 | 280 | |||||||
Total | $ | 37,949 | $ | 47,539 | |||||
There were no significant amounts reclassified from Accumulated other comprehensive income to the Consolidated Statements of Income (Loss) for the years ended March 31, 2014, 2013 or 2012. | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | 37,835 | $ | 47,259 | |||||
Unrealized gains on investment securities, net of tax provision of $76 and $187, respectively | 114 | 280 | |||||||
Total | $ | 37,949 | $ | 47,539 | |||||
Derivatives_and_Hedging
Derivatives and Hedging | 12 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Derivatives and Hedging | ' | ||||||||||||||||||||||||||
14. DERIVATIVES AND HEDGING | |||||||||||||||||||||||||||
The disclosures below detail Legg Mason’s derivatives and hedging activities excluding the derivatives and hedging activities of CIVs. See Note 17, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the derivatives and hedging of CIVs. | |||||||||||||||||||||||||||
Legg Mason uses currency forwards to economically hedge the risk of movements in exchange rates, primarily between the U.S. dollar, British pound, Japanese yen, Australian dollar, euro, Singapore dollar, Chinese yuan, Indonesian rupiah, Malaysian ringgit, Philippine peso, Thai baht and South Korean won. In the Consolidated Balance Sheets, Legg Mason nets the fair value of certain foreign currency forwards or futures contracts executed with the same counterparty where Legg Mason has both the legal right and intent to settle the contracts on a net basis, resulting in net Other assets of $1,249 and $1,158 as of March 31, 2014 and 2013, respectively. Legg Mason has not designated any derivatives as hedging instruments for accounting purposes during the periods ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||
Legg Mason also uses market hedges on certain seed capital investments by entering into futures contracts to sell index funds that benchmark the hedged seed capital investments. Open futures contracts required cash collateral of $12,985 and $7,131 as of March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
The following table presents the fair values as of March 31, 2014 and 2013, of derivative instruments not designated for accounting purposes as hedging instruments, classified as Other assets and Other liabilities: | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
Currency forward contracts | $ | 3,271 | $ | 825 | $ | 1,496 | $ | 101 | |||||||||||||||||||
Futures and forward contracts | 313 | 1,510 | 443 | 680 | |||||||||||||||||||||||
Total | $ | 3,584 | $ | 2,335 | $ | 1,939 | $ | 781 | |||||||||||||||||||
The following table presents gains (losses) recognized on derivative instruments for the years ended March 31, 2014, 2013 and 2012. As described above, the currency, futures and forward contracts included below are economic hedges of interest rate and market risk of certain operating and investing activities of Legg Mason. Gains and losses on these derivatives substantially offset gains and losses of the hedged items. | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Income Statement Classification | Gains | Losses | Gains | Losses | Gains | Losses | |||||||||||||||||||||
Currency forward contracts for: | |||||||||||||||||||||||||||
Operating activities | Other expense | $ | 7,098 | $ | (2,617 | ) | $ | 3,650 | $ | (1,858 | ) | $ | 5,604 | $ | (3,159 | ) | |||||||||||
Seed capital investments | Other non-operating income (expense) | 56 | (1,719 | ) | 1,090 | (380 | ) | 431 | (351 | ) | |||||||||||||||||
Futures and forward contracts for seed capital investments | Other non-operating income (expense) | 2,471 | (19,403 | ) | 1,914 | (5,597 | ) | 5,684 | (4,560 | ) | |||||||||||||||||
Total | $ | 9,625 | $ | (23,739 | ) | $ | 6,654 | $ | (7,835 | ) | $ | 11,719 | $ | (8,070 | ) | ||||||||||||
Restructuring
Restructuring | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring | ' | ||||||||||||
15. RESTRUCTURING | |||||||||||||
In May 2010, Legg Mason announced a plan to streamline its business model to drive increased profitability and growth that primarily involved transitioning certain shared services to its investment affiliates which are closer to actual client relationships. This plan involved headcount reductions in operations, technology, and other administrative areas, which were partially offset by headcount increases at the affiliates, and enabled Legg Mason to eliminate a portion of its corporate office space that was primarily dedicated to operations and technology employees. The initiative was completed as of March 31, 2012. | |||||||||||||
Total transition-related costs were $127,500, including non-cash charges of $30,841, through completion of the plan in March 2012. Of the total transition-related costs incurred, $79,686 were related to charges for employee termination benefits and retention incentives during the transition period, and were recorded in Transition-related compensation in the Consolidated Statements of Income (Loss). The remainder represents other costs, including charges for consolidating leased office space, early contract terminations, asset disposals, and professional fees, which were recorded in the appropriate operating expense classifications. Charges for transition-related costs were $73,066 and $54,434 for the years ended March 31, 2012 and 2011, respectively, which primarily represent costs for lease loss accruals and fixed asset accelerated depreciation related to space permanently abandoned, as well as costs for severance and retention incentives. There were no | |||||||||||||
charges for transition-related costs associated with this initiative for the years ended March 31, 2014 or 2013. | |||||||||||||
The table below presents a summary of changes in the transition-related liability from March 31, 2011 through March 31, 2014: | |||||||||||||
Severance and retention incentives | Lease loss accruals and other (1) | Total | |||||||||||
Balance as of March 31, 2011 | $ | 23,211 | $ | 5,835 | $ | 29,046 | |||||||
Accrued charges | 29,096 | 25,916 | (2) | 55,012 | |||||||||
Payments | (51,140 | ) | (16,121 | ) | (67,261 | ) | |||||||
Balance as of March 31, 2012 | 1,167 | 15,630 | 16,797 | ||||||||||
Payments and other | (1,167 | ) | (10,744 | ) | (11,911 | ) | |||||||
Balance as of March 31, 2013 | — | 4,886 | 4,886 | ||||||||||
Payments and other | — | (3,276 | ) | (3,276 | ) | ||||||||
Balance as of March 31, 2014 | $ | — | $ | 1,610 | $ | 1,610 | |||||||
-1 | Amounts related to the lease reserve liability are also included in Note 8. | ||||||||||||
-2 | Includes lease loss accruals of $17,983 for space permanently abandoned. | ||||||||||||
See Note 2 for information regarding restructuring and transition costs associated with the planned integration over time of two existing affiliates, Batterymarch and LMGAA, in conjunction with the acquisition of QS Investors. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Business Segment Information | ' | ||||||||||||
16. BUSINESS SEGMENT INFORMATION | |||||||||||||
Legg Mason is a global asset management company that provides investment management and related services to a wide array of clients. The company operates in one reportable business segment, Global Asset Management. Global Asset Management provides investment advisory services to institutional and individual clients and to company-sponsored investment funds. The primary sources of revenue in Global Asset Management are investment advisory, distribution and administrative fees, which typically are calculated as a percentage of the AUM and vary based upon factors such as the type of underlying investment product and the type of services that are provided. In addition, performance fees may be earned under certain investment advisory contracts for exceeding performance benchmarks. | |||||||||||||
Revenues by geographic location are primarily based on the geographic location of the advisor or the domicile of fund families managed by Legg Mason. | |||||||||||||
The table below reflects our revenues and long-lived assets by geographic region as of March 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
OPERATING REVENUES | |||||||||||||
United States | $ | 1,874,328 | $ | 1,800,539 | $ | 1,806,990 | |||||||
United Kingdom | 436,542 | 387,966 | 448,863 | ||||||||||
Other International | 430,887 | 424,145 | 406,721 | ||||||||||
Total | $ | 2,741,757 | $ | 2,612,650 | $ | 2,662,574 | |||||||
INTANGIBLE ASSETS, NET AND GOODWILL | |||||||||||||
United States | $ | 3,127,654 | $ | 3,139,050 | $ | 3,548,628 | |||||||
United Kingdom | 879,946 | 895,767 | 1,108,297 | ||||||||||
Other International | 404,696 | 411,910 | 474,986 | ||||||||||
Total | $ | 4,412,296 | $ | 4,446,727 | $ | 5,131,911 | |||||||
Variable_Interest_Entities_and
Variable Interest Entities and Consolidation of Investment Vehicles | 12 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Variable Interest Entities and Consolidation of Investment Vehicles [Abstract] | ' | ||||||||||||||||||||||||||||||||
Consolidated Investment Vehicles and Other Variable Interest Entities Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
17. VARIABLE INTEREST ENTITIES AND CONSOLIDATION OF INVESTMENT VEHICLES | |||||||||||||||||||||||||||||||||
As further discussed in Notes 1 and 3, in accordance with financial accounting standards on consolidation, Legg Mason consolidates and separately identifies certain sponsored investment vehicles as CIVs, the most significant of which is a CLO. Legg Mason has concluded that it was the primary beneficiary of one of three CLOs in which it has a variable interest. As of March 31, 2014, 2013 and 2012, the balances related to this CLO were consolidated and reported as a CIV in the Company's consolidated financial statements. In addition, Legg Mason concluded it was the primary beneficiary of one sponsored investment fund VIE, which was consolidated (and designated a CIV) as of March 31, 2014, 2013 and 2012, despite significant third party investments in this product. As of March 31, 2014, Legg Mason also concluded it was the primary beneficiary of 16 employee-owned funds it sponsors, which were consolidated and reported as CIVs. Finally, Legg Mason held a longer-term controlling financial interest in one sponsored investment fund VRE, which has third-party investors and was consolidated and included as a CIV as of March 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||
Legg Mason's investment in CIVs as of March 31, 2014 and 2013, was $39,434 and $39,056, respectively, which represents its maximum risk of loss, excluding uncollected advisory fees. The assets of these CIVs are primarily comprised of investment securities. Investors and creditors of these CIVs have no recourse to the general credit or assets of Legg Mason beyond its investment in these funds. | |||||||||||||||||||||||||||||||||
The following tables reflect the impact of CIVs on the Consolidated Balance Sheets as of March 31, 2014 and 2013, respectively, and the Consolidated Statements of Income (Loss) for the years ended March 31, 2014, 2013 and 2012, respectively: | |||||||||||||||||||||||||||||||||
Consolidating Balance Sheets | |||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | Consolidated Totals | Balance | CIVs | Eliminations | Consolidated Totals | ||||||||||||||||||||||||||
Before | Before | ||||||||||||||||||||||||||||||||
Consolidation of CIVs | Consolidation of CIVs | ||||||||||||||||||||||||||||||||
Current assets | $ | 2,032,827 | $ | 138,537 | $ | (42,981 | ) | $ | 2,128,383 | $ | 1,908,932 | $ | 73,320 | $ | (39,390 | ) | $ | 1,942,862 | |||||||||||||||
Non-current assets | 4,950,948 | 32,018 | — | 4,982,966 | 5,115,181 | 211,617 | — | 5,326,798 | |||||||||||||||||||||||||
Total assets | $ | 6,983,775 | $ | 170,555 | $ | (42,981 | ) | $ | 7,111,349 | $ | 7,024,113 | $ | 284,937 | $ | (39,390 | ) | $ | 7,269,660 | |||||||||||||||
Current liabilities | $ | 735,737 | $ | 89,055 | $ | (3,547 | ) | $ | 821,245 | $ | 692,261 | $ | 10,539 | $ | (334 | ) | $ | 702,466 | |||||||||||||||
Long-term debt of CIVs | — | — | — | — | — | 207,835 | — | 207,835 | |||||||||||||||||||||||||
Other non-current liabilities | 1,520,236 | — | — | 1,520,236 | 1,517,069 | 2,930 | — | 1,519,999 | |||||||||||||||||||||||||
Total liabilities | 2,255,973 | 89,055 | (3,547 | ) | 2,341,481 | 2,209,330 | 221,304 | (334 | ) | 2,430,300 | |||||||||||||||||||||||
Redeemable non-controlling interests | 3,172 | 26,325 | 15,647 | 45,144 | 1,355 | — | 19,654 | 21,009 | |||||||||||||||||||||||||
Total stockholders’ equity | 4,724,630 | 55,175 | (55,081 | ) | 4,724,724 | 4,813,428 | 63,633 | (58,710 | ) | 4,818,351 | |||||||||||||||||||||||
Total liabilities and equity | $ | 6,983,775 | $ | 170,555 | $ | (42,981 | ) | $ | 7,111,349 | $ | 7,024,113 | $ | 284,937 | $ | (39,390 | ) | $ | 7,269,660 | |||||||||||||||
Consolidating Statements of Income (Loss) | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,743,707 | $ | — | $ | (1,950 | ) | $ | 2,741,757 | ||||||||||||||||||||||||
Total operating expenses | 2,310,444 | 2,376 | (1,956 | ) | 2,310,864 | ||||||||||||||||||||||||||||
Operating income (loss) | 433,263 | (2,376 | ) | 6 | 430,893 | ||||||||||||||||||||||||||||
Total other non-operating income (expense) | (10,333 | ) | 2,445 | (3,364 | ) | (11,252 | ) | ||||||||||||||||||||||||||
Income before income tax provision (benefit) | 422,930 | 69 | (3,358 | ) | 419,641 | ||||||||||||||||||||||||||||
Income tax provision (benefit) | 137,805 | — | — | 137,805 | |||||||||||||||||||||||||||||
Net income | 285,125 | 69 | (3,358 | ) | 281,836 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 341 | — | (3,289 | ) | (2,948 | ) | |||||||||||||||||||||||||||
Net income attributable to Legg Mason, Inc. | $ | 284,784 | $ | 69 | $ | (69 | ) | $ | 284,784 | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-13 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,615,047 | $ | — | $ | (2,397 | ) | $ | 2,612,650 | ||||||||||||||||||||||||
Total operating expenses | 3,046,587 | 2,965 | (2,403 | ) | 3,047,149 | ||||||||||||||||||||||||||||
Operating income (loss) | (431,540 | ) | (2,965 | ) | 6 | (434,499 | ) | ||||||||||||||||||||||||||
Total other non-operating income (expense) | (72,177 | ) | (2,864 | ) | (1,067 | ) | (76,108 | ) | |||||||||||||||||||||||||
Income (loss) before income tax provision (benefit) | (503,717 | ) | (5,829 | ) | (1,061 | ) | (510,607 | ) | |||||||||||||||||||||||||
Income tax provision (benefit) | (150,859 | ) | — | — | (150,859 | ) | |||||||||||||||||||||||||||
Net income (loss) | (352,858 | ) | (5,829 | ) | (1,061 | ) | (359,748 | ) | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 469 | — | (6,890 | ) | (6,421 | ) | |||||||||||||||||||||||||||
Net income (loss) attributable to Legg Mason, Inc. | $ | (353,327 | ) | $ | (5,829 | ) | $ | 5,829 | $ | (353,327 | ) | ||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-12 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,665,668 | $ | — | $ | (3,094 | ) | $ | 2,662,574 | ||||||||||||||||||||||||
Total operating expenses | 2,323,213 | 3,709 | (3,101 | ) | 2,323,821 | ||||||||||||||||||||||||||||
Operating income (loss) | 342,455 | (3,709 | ) | 7 | 338,753 | ||||||||||||||||||||||||||||
Total other non-operating income (expense) | (49,236 | ) | 18,336 | (4,770 | ) | (35,670 | ) | ||||||||||||||||||||||||||
Income (loss) before income tax provision (benefit) | 293,219 | 14,627 | (4,763 | ) | 303,083 | ||||||||||||||||||||||||||||
Income tax provision (benefit) | 72,052 | — | — | 72,052 | |||||||||||||||||||||||||||||
Net income (loss) | 221,167 | 14,627 | (4,763 | ) | 231,031 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 350 | — | 9,864 | 10,214 | |||||||||||||||||||||||||||||
Net income (loss) attributable to Legg Mason, Inc. | $ | 220,817 | $ | 14,627 | $ | (14,627 | ) | $ | 220,817 | ||||||||||||||||||||||||
Other non-operating income (expense) includes interest income, interest expense and net gains (losses) on investments and long-term debt determined on an accrual basis. | |||||||||||||||||||||||||||||||||
The consolidation of CIVs has no impact on Net Income (Loss) Attributable to Legg Mason, Inc. | |||||||||||||||||||||||||||||||||
The fair value of the financial assets and (liabilities) of CIVs were determined using the following categories of inputs as of March 31, 2014: | |||||||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Value as of March 31, 2014 | ||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Trading investments: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 1,110 | $ | 3,941 | $ | 17,888 | $ | 22,939 | |||||||||||||||||||||||||
Proprietary Funds | 27,524 | — | — | $ | 27,524 | ||||||||||||||||||||||||||||
Total trading investments | 28,634 | 3,941 | 17,888 | 50,463 | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||
Private equity funds | — | — | 31,810 | 31,810 | |||||||||||||||||||||||||||||
$ | 28,634 | $ | 3,941 | $ | 49,698 | $ | 82,273 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | — | $ | — | $ | (79,179 | ) | $ | (79,179 | ) | |||||||||||||||||||||||
Derivative liabilities | — | (1,888 | ) | — | (1,888 | ) | |||||||||||||||||||||||||||
$ | — | $ | (1,888 | ) | $ | (79,179 | ) | $ | (81,067 | ) | |||||||||||||||||||||||
Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Value as of March 31, 2013 | ||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Trading investments: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 2,076 | $ | 3,268 | $ | 19,448 | $ | 24,792 | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||
CLO loans | — | 172,519 | — | 172,519 | |||||||||||||||||||||||||||||
CLO bonds | — | 11,052 | — | 11,052 | |||||||||||||||||||||||||||||
Private equity funds | — | — | 26,982 | 26,982 | |||||||||||||||||||||||||||||
Total investments | — | 183,571 | 26,982 | 210,553 | |||||||||||||||||||||||||||||
$ | 2,076 | $ | 186,839 | $ | 46,430 | $ | 235,345 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | — | $ | — | $ | (207,835 | ) | $ | (207,835 | ) | |||||||||||||||||||||||
Derivative liabilities | — | (2,930 | ) | — | (2,930 | ) | |||||||||||||||||||||||||||
$ | — | $ | (2,930 | ) | $ | (207,835 | ) | $ | (210,765 | ) | |||||||||||||||||||||||
Except for the CLO debt, substantially all of the above financial instruments where valuation methods rely on other than observable market inputs as a significant input utilize the NAV practical expedient, such that measurement uncertainty has little relevance. In April 2014, the CLO was completing its wind-down for the subsequent distribution of cash to settle its liabilities. As of March 31, 2014, the carrying value of the CLO debt approximated the amount to be paid to investors, and there was no appreciable measurement uncertainty. The following table provides a summary of qualitative information relating to the valuation of CLO debt as of March 31, 2013: | |||||||||||||||||||||||||||||||||
Value as of March 31, 2013 | Valuation technique | Unobservable input | Range (weighted-average) | ||||||||||||||||||||||||||||||
$ | (207,835 | ) | Discounted cash flow | Discount rate | 1.1 | % | - | 11 | % | -2.30% | |||||||||||||||||||||||
Default rate | 3 | % | - | 4 | % | -3.50% | |||||||||||||||||||||||||||
Constant prepayment rate | 25 | % | |||||||||||||||||||||||||||||||
The changes in assets and (liabilities) of CIVs measured at fair value using significant unobservable inputs (Level 3) for the years ended March 31, 2014 and 2013 are presented in the table below: | |||||||||||||||||||||||||||||||||
Value as of March 31, 2013 | Purchases | Sales | Settlements / Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 19,448 | $ | 3,516 | $ | (8,037 | ) | $ | — | $ | — | $ | 2,961 | $ | 17,888 | ||||||||||||||||||
Private equity funds | 26,982 | 1,811 | — | — | — | 3,017 | 31,810 | ||||||||||||||||||||||||||
$ | 46,430 | $ | 5,327 | $ | (8,037 | ) | $ | — | $ | — | $ | 5,978 | $ | 49,698 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | (207,835 | ) | $ | — | $ | — | $ | 133,047 | $ | — | $ | (4,391 | ) | $ | (79,179 | ) | ||||||||||||||||
Total realized and unrealized gains (losses), net | $ | 1,587 | |||||||||||||||||||||||||||||||
Value as of March 31, 2012 | Purchases | Sales | Settlements / Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2013 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 24,116 | $ | 1,980 | $ | (6,602 | ) | $ | — | $ | — | $ | (46 | ) | $ | 19,448 | |||||||||||||||||
Private equity funds | 25,071 | 2,622 | (2,030 | ) | — | — | 1,319 | 26,982 | |||||||||||||||||||||||||
$ | 49,187 | $ | 4,602 | $ | (8,632 | ) | $ | — | $ | — | $ | 1,273 | $ | 46,430 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | (271,707 | ) | $ | — | $ | — | $ | 75,798 | $ | — | $ | (11,926 | ) | $ | (207,835 | ) | ||||||||||||||||
Total realized and unrealized gains (losses), net | $ | (10,653 | ) | ||||||||||||||||||||||||||||||
Realized and unrealized gains and losses recorded for Level 3 assets and liabilities of CIVs are included in Other non-operating income (expense) of CIVs on the Consolidated Statements of Income (Loss). Total unrealized losses for Level 3 investments and liabilities of CIVs relating only to those assets and liabilities still held at the reporting date were $2,284 and $11,842 for the years ended March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 during either of the years ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
The NAVs used as a practical expedient by CIVs have been provided by the investees and have been derived from the fair values of the underlying investments as of the respective reporting dates. The following table summarizes, as of March 31, 2014 and March 31, 2013, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||||||||||
Fair Value Determined | As of March 31, 2014 | ||||||||||||||||||||||||||||||||
Using NAV | |||||||||||||||||||||||||||||||||
Category of Investment | Investment Strategy | 31-Mar-14 | 31-Mar-13 | Unfunded Commitments | Remaining Term | ||||||||||||||||||||||||||||
Hedge funds | Global macro, fixed income, long/short equity, systematic, emerging market, U.S. and European hedge | $ | 22,939 | (1) | $ | 24,792 | (2) | n/a | n/a | ||||||||||||||||||||||||
Private equity funds | Long/short equity | 31,810 | (3) | 26,982 | (3) | $ | 2,707 | 4 years | |||||||||||||||||||||||||
Total | $ | 54,749 | $ | 51,774 | $ | 2,707 | |||||||||||||||||||||||||||
n/a – not applicable | |||||||||||||||||||||||||||||||||
-1 | 10% daily redemption; 6% monthly redemption; 2% quarterly redemption; and 82% are subject to three to five year lock-up or side pocket provisions. | ||||||||||||||||||||||||||||||||
-2 | 11% daily redemption; 8% monthly redemption; 2% quarterly redemption; and 79% are subject to three to five year lock-up or side pocket provisions. | ||||||||||||||||||||||||||||||||
-3 | Liquidations are expected over the remaining term. | ||||||||||||||||||||||||||||||||
There are no current plans to sell any of these investments held as of March 31, 2014. | |||||||||||||||||||||||||||||||||
Legg Mason has elected the fair value option for certain eligible assets and liabilities, including corporate loans and debt, of the consolidated CLO. Management believes that the use of the fair value option mitigates the impact of certain timing differences and better matches the changes in fair value of assets and liabilities related to the CLO. | |||||||||||||||||||||||||||||||||
The following table presents the fair value and unpaid principal balance of CLO loans, bonds and debt carried at fair value under the fair value option as of March 31, 2014 and March 31, 2013: | |||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||
CLO loans and bonds | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | — | $ | 186,839 | |||||||||||||||||||||||||||||
Unpaid principal balance in excess of fair value | — | (3,268 | ) | ||||||||||||||||||||||||||||||
Fair value | $ | — | $ | 183,571 | |||||||||||||||||||||||||||||
CLO debt | |||||||||||||||||||||||||||||||||
Principal amounts outstanding | $ | 92,114 | $ | 225,161 | |||||||||||||||||||||||||||||
Excess unpaid principal over fair value | (12,935 | ) | (17,326 | ) | |||||||||||||||||||||||||||||
Fair value | $ | 79,179 | $ | 207,835 | |||||||||||||||||||||||||||||
During the years ended March 31, 2014 and 2013, total net losses of $5,914 and $8,455, respectively, were recognized in Other non-operating income (loss) of CIVs in the Consolidated Statements of Income (Loss) related to assets and liabilities for which the fair value option was elected. CLO loans and CLO debt measured at fair value have floating interest rates, therefore, substantially all of the estimated gains and losses included in earnings for the years ended March 31, 2014 and 2013, were attributable to instrument specific credit risk. | |||||||||||||||||||||||||||||||||
The CLO debt bears interest at variable rates based on LIBOR plus a pre-defined spread, which ranges from 25 basis points to 400 basis points. All outstanding debt matures on July 15, 2018. The CLO commenced its wind-down in July 2012, such that proceeds from securities cannot be reinvested and are applied to reduce the debt outstanding in the quarter subsequent to receipt, after other required payments. As noted above, the CLO was completing its wind-down in April 2014. | |||||||||||||||||||||||||||||||||
Total derivative liabilities of CIVs of $1,888 and $2,930 as of March 31, 2014 and 2013, respectively, are recorded in Other liabilities of CIVs. Gains and (losses) of $1,311 and $(1,537), respectively, for the fiscal year ended March 31, 2014 and $942 and $(1,223), respectively, for the fiscal year ended March 31, 2013, related to derivative liabilities of CIVs are included in Other non-operating income (loss) of CIVs. There is no risk to Legg Mason in relation to the derivative assets and liabilities of the CIVs in excess of its investment in the funds, if any. | |||||||||||||||||||||||||||||||||
As of March 31, 2014 and 2013, for VIEs in which Legg Mason holds a variable interest or is the sponsor and holds a variable interest, but for which it was not the primary beneficiary, Legg Mason's carrying value and maximum risk of loss were as follows: | |||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of March 31, 2013 | ||||||||||||||||||||||||||||||||
Equity Interests | Maximum | Equity Interests | Maximum | ||||||||||||||||||||||||||||||
on the | Risk of Loss (2) | on the | Risk of Loss (2) | ||||||||||||||||||||||||||||||
Consolidated | Consolidated | ||||||||||||||||||||||||||||||||
Balance Sheet (1) | Balance Sheet (1) | ||||||||||||||||||||||||||||||||
CLOs | $ | — | $ | 911 | $ | — | $ | 496 | |||||||||||||||||||||||||
Real Estate Investment Trust | 1,442 | 3,715 | 989 | 2,644 | |||||||||||||||||||||||||||||
Other sponsored investment funds | 34,126 | 78,521 | 43,104 | 87,121 | |||||||||||||||||||||||||||||
Total | $ | 35,568 | $ | 83,147 | $ | 44,093 | $ | 90,261 | |||||||||||||||||||||||||
-1 | Includes $23,404 and $33,918 related to investments in proprietary funds products as of March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
-2 | Includes equity investments the Company has made or is required to make and any earned but uncollected management fees. | ||||||||||||||||||||||||||||||||
The Company's total AUM of unconsolidated VIEs was $16,032,764 and $17,090,267 as of March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
The assets of these VIEs are primarily comprised of cash and cash equivalents and investment securities, and the liabilities are primarily comprised of debt and various expense accruals. These VIEs are not consolidated because either (1) Legg Mason does not have the power to direct significant economic activities of the entity and rights/obligations associated with benefits/losses that could be significant to the entity, or (2) Legg Mason does not absorb a majority of each VIE's expected losses or does not receive a majority of each VIE's expected residual gains. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA | |||||||||||||||||
(Dollars in thousands, except per share amounts or unless otherwise noted) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
Fiscal 2014(1) | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | |||||||||||||
Operating Revenues | $ | 681,396 | $ | 720,092 | $ | 669,852 | $ | 670,417 | |||||||||
Operating Expenses | 562,055 | 598,440 | 563,486 | 586,883 | |||||||||||||
Operating Income | 119,341 | 121,652 | 106,366 | 83,534 | |||||||||||||
Other Non-Operating Income (Expense) | (7,393 | ) | 4,303 | 485 | (8,647 | ) | |||||||||||
Income before Income Tax Provision | 111,948 | 125,955 | 106,851 | 74,887 | |||||||||||||
Income tax provision | 46,856 | 46,004 | 19,153 | 25,792 | |||||||||||||
Net Income | 65,092 | 79,951 | 87,698 | 49,095 | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (3,855 | ) | (1,783 | ) | 1,410 | 1,280 | |||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 68,947 | $ | 81,734 | $ | 86,288 | $ | 47,815 | |||||||||
Net Income per share Attributable to Legg Mason, Inc. common shareholders: | |||||||||||||||||
Basic | $ | 0.58 | $ | 0.68 | $ | 0.7 | $ | 0.38 | |||||||||
Diluted | 0.58 | 0.67 | 0.7 | 0.38 | |||||||||||||
Cash dividend per share | 0.13 | 0.13 | 0.13 | 0.13 | |||||||||||||
Stock price range: | |||||||||||||||||
High | 49.5 | 44.09 | 35.85 | 37.04 | |||||||||||||
Low | 39.6 | 32.44 | 30.28 | 29.28 | |||||||||||||
Assets Under Management (in millions): | |||||||||||||||||
End of period | $ | 701,774 | $ | 679,475 | $ | 656,023 | $ | 644,511 | |||||||||
Average | 689,003 | 670,019 | 650,428 | 654,737 | |||||||||||||
(1) Due to rounding of quarterly results, total amounts for fiscal year may differ immaterially from the annual results. | |||||||||||||||||
As of May 20, 2014, the closing price of Legg Mason's common stock was $48.11. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
Fiscal 2013(1) | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | |||||||||||||
Operating Revenues | $ | 667,763 | $ | 673,900 | $ | 640,295 | $ | 630,692 | |||||||||
Operating Expenses | 624,750 | 1,307,223 | 560,561 | 554,615 | |||||||||||||
Operating Income (Loss) | 43,013 | (633,323 | ) | 79,734 | 76,077 | ||||||||||||
Other Non-Operating Income (Expense) | 5,633 | (5,441 | ) | 17,758 | (94,058 | ) | |||||||||||
Income (Loss) before Income Tax Provision (Benefit) | 48,646 | (638,764 | ) | 97,492 | (17,981 | ) | |||||||||||
Income tax provision (benefit) | 17,955 | (180,214 | ) | 16,397 | (4,997 | ) | |||||||||||
Net Income (Loss) | 30,691 | (458,550 | ) | 81,095 | (12,984 | ) | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 1,487 | (4,680 | ) | 298 | (3,526 | ) | |||||||||||
Net Income (Loss) Attributable to Legg Mason, Inc. | $ | 29,204 | $ | (453,870 | ) | $ | 80,797 | $ | (9,458 | ) | |||||||
Net Income (Loss) per share Attributable to Legg Mason, Inc. common shareholders: | |||||||||||||||||
Basic | $ | 0.23 | $ | (3.45 | ) | $ | 0.6 | $ | (0.07 | ) | |||||||
Diluted | 0.23 | (3.45 | ) | 0.6 | (0.07 | ) | |||||||||||
Cash dividend per share | 0.11 | 0.11 | 0.11 | 0.11 | |||||||||||||
Stock price range: | |||||||||||||||||
High | 32.59 | 26.63 | 27.14 | 28.47 | |||||||||||||
Low | 25.43 | 23.88 | 23.31 | 22.36 | |||||||||||||
Assets Under Management (in millions): | |||||||||||||||||
End of period | $ | 664,609 | $ | 648,879 | $ | 650,700 | $ | 631,823 | |||||||||
Average | 657,357 | 648,354 | 639,389 | 635,463 | |||||||||||||
(1) Due to rounding of quarterly results, total amounts for fiscal year may differ immaterially from the annual results. |
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||
The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.") and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), which require management to make assumptions and estimates that affect the amounts reported in the financial statements and accompanying notes, including revenue recognition, valuation of financial instruments, intangible assets and goodwill, stock-based compensation, income taxes, and consolidation. Management believes that the estimates used are reasonable, although actual amounts could differ from the estimates and the differences could have a material impact on the consolidated financial statements. | |||||||||||||
Consolidation, Policy | ' | ||||||||||||
Consolidation | |||||||||||||
In the normal course of its business, Legg Mason sponsors and is the manager of various types of investment vehicles. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinated management fees or other incentive fees. Legg Mason's exposure to risk in these entities is generally limited to any equity investment it has made or is required to make and any earned but uncollected management fees. Legg Mason did not sell or transfer assets to any of these investment vehicles. In accordance with financial accounting standards on consolidation, Legg Mason consolidates and separately identifies certain sponsored investment vehicles as consolidated investment vehicles (“CIVs”), the most significant of which is a collateralized loan obligation entity (“CLO”). The consolidation of these investment vehicles has no impact on Net Income (Loss) Attributable to Legg Mason, Inc. and does not have a material impact on Legg Mason's consolidated operating results. The change in the value of these consolidated investment vehicles, which is recorded in Other Non-Operating Income (Expense), is reflected in Net Income (Loss), net of amounts allocated to noncontrolling interests. | |||||||||||||
Certain investment vehicles Legg Mason sponsors and is the manager of are considered to be VIEs (further described below) while others are considered to be voting rights entities (“VREs”) subject to traditional consolidation concepts based on ownership rights. Investment vehicles that are considered VREs are consolidated if Legg Mason has a controlling financial interest in the investment vehicle, absent substantive investor rights to replace the manager of the entity (kick-out rights). Legg Mason may also fund the initial cash investment in certain VRE investment vehicles to generate an investment performance track record in order to attract third-party investors in the product. Legg Mason's initial investment in a new product typically represents 100% of the ownership in that product. As further discussed below, these “seed capital investments” are consolidated as long as Legg Mason maintains a controlling financial interest in the product, but they are not included as CIVs unless Legg Mason's investment is longer term. Legg Mason held a longer-term controlling financial interest in one sponsored investment fund VRE, which has third-party investors and was consolidated and included as a CIV as of March 31, 2014, 2013 and 2012. | |||||||||||||
A VIE is an entity which does not have adequate equity to finance its activities without additional subordinated financial support; or the equity investors, as a group, do not have the normal characteristics of equity for a potential controlling financial interest. | |||||||||||||
Investment Company VIEs | |||||||||||||
For most sponsored investment funds deemed to be investment companies, including money market funds, Legg Mason determines it is the primary beneficiary of a VIE if it absorbs a majority of the VIE's expected losses, or receives a majority of the VIE's expected residual returns, if any. Legg Mason's determination of expected residual returns excludes gross fees paid to a decision maker if certain criteria are met. In determining whether it is the primary beneficiary of an investment company VIE, Legg Mason considers both qualitative and quantitative factors such as the voting rights of the equity holders; economic participation of all parties, including how fees are earned and paid to Legg Mason; related party (including employees’) ownership; guarantees and implied relationships. | |||||||||||||
Legg Mason concluded it was the primary beneficiary of one sponsored investment fund VIE, which was consolidated (and designated a CIV) as of March 31, 2014, 2013 and 2012, despite significant third party investments in this product. As of March 31, 2014, Legg Mason also concluded it was the primary beneficiary of 16 employee-owned funds it sponsors, which were consolidated and reported as CIVs. | |||||||||||||
Other VIEs | |||||||||||||
For other sponsored investment funds that do not meet the investment company criteria, Legg Mason determines it is the primary beneficiary of the VIE if it has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses, or the right to receive benefits, that potentially could be significant to the VIE. | |||||||||||||
Legg Mason concluded that it was the primary beneficiary of one of three CLOs in which it has a variable interest. Although it holds no equity interest in these investment vehicles, it had both the power to control and had a significant variable interest in one CLO because of the level of its expected subordinated fees. As of March 31, 2014, 2013 and 2012, the balances related to this CLO were consolidated and reported as a CIV in the Company's consolidated financial statements. The other CLOs were not consolidated, as their level of expected fees is insignificant. | |||||||||||||
In determining the primary beneficiary of investment company VIEs and other VIEs, Legg Mason must make assumptions and estimates about, among other things, the future performance of the underlying assets held by the VIE, including investment returns, cash flows, and credit and interest rate risks. | |||||||||||||
Legg Mason's investment in CIVs as of March 31, 2014 and 2013 was $39,434 and $39,056, respectively, which represents its maximum risk of loss, excluding uncollected advisory fees, which were not material. The assets of these CIVs are primarily comprised of investment securities. Investors and creditors of these CIVs have no recourse to the general credit or assets of Legg Mason beyond its investment in these funds. | |||||||||||||
See Note 17 for additional information about VIEs and VREs. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||
Cash equivalents are highly liquid investments with original maturities of 90 days or less. | |||||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||
Restricted cash primarily represents long-term escrow deposits and cash collateral required for market hedge arrangements. This cash is not available to Legg Mason for general corporate use. | |||||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||||
Substantially all financial instruments are reflected in the financial statements at fair value or amounts that approximate fair value, except Legg Mason's long-term debt. | |||||||||||||
As discussed above in "Consolidation", seed capital investments in proprietary fund products are initially consolidated and the individual securities within the portfolio are accounted for as trading investments. Legg Mason consolidates these products as long as it holds a controlling financial interest in the product. Upon deconsolidation, which typically occurs after several years, Legg Mason accounts for its investments in proprietary fund products as equity method investments (further described below) if its ownership is between 20% and 50%, or it otherwise has the ability to significantly influence the financial and operating policies of the investee. For partnerships and LLCs, where third-party investors may have less ability to influence operations, the equity method of accounting is considered if Legg Mason's ownership is greater than 3%. Changes in the fair value of proprietary fund products classified as trading or equity method investments are recognized in Other Non-Operating Income (Expense) on the Consolidated Statements of Income (Loss). | |||||||||||||
Legg Mason generally redeems its investment in proprietary fund products when the related product establishes a sufficient track record, when third-party investments in the related product are sufficient to sustain the strategy, or a decision is made to no longer pursue the strategy. The length of time Legg Mason holds a majority interest in a product varies based on a number of factors, such as market demand, market conditions and investment performance. | |||||||||||||
See Notes 3 and 17 for additional information regarding Legg Mason's seed capital investments and the determination of whether investments in proprietary fund products represent VIEs, respectively. | |||||||||||||
For equity investments where Legg Mason does not control the investee, and where it is not the primary beneficiary of a VIE, but can exert significant influence over the financial and operating policies of the investee, Legg Mason follows the equity method of accounting. The evaluation of whether Legg Mason can exert control or significant influence over the financial and operational policies of an investee requires significant judgment based on the facts and circumstances surrounding each individual investment. Factors considered in these evaluations may include investor voting or other rights, any influence Legg Mason may have on the governing board of the investee, the legal rights of other investors in the entity pursuant to the fund's operating documents and the relationship between Legg Mason and other investors in the entity. Substantially all of Legg Mason's equity method investees are investment companies which record their underlying investments at fair value. Therefore, under the equity method of accounting, Legg Mason's share of the investee's underlying net income or loss predominantly represents fair value adjustments in the investments held by the equity method investee. Legg Mason's share of the investee's net income or loss is based on the most current information available and is recorded as a net gain (loss) on investments within Non-Operating Income (Expense). A significant portion of earnings (losses) attributable to Legg Mason's equity method investments has offsetting compensation expense adjustments under revenue sharing agreements and deferred compensation arrangements, therefore, fluctuations in the market value of these investments will not have a material impact on Net Income (Loss) Attributable to Legg Mason, Inc. | |||||||||||||
Legg Mason also holds debt and marketable equity investments which are classified as available-for-sale, held-to-maturity or trading. Debt and marketable equity securities classified as available-for-sale are reported at fair value and resulting unrealized gains and losses are reflected in stockholders' equity, noncontrolling interests, and comprehensive income (loss), net of applicable income taxes. Debt securities, for which there is positive intent and ability to hold to maturity, are classified as held-to-maturity and are recorded at amortized cost. Amortization of discount or premium is recorded under the interest method and is included in interest income. Certain investment securities, including those held by CIVs, are classified as trading securities. These investments are recorded at fair value and unrealized gains and losses are included in current period earnings. Realized gains and losses for all investments are included in current period earnings. | |||||||||||||
Equity and fixed income securities classified as trading or available-for-sale are valued using closing market prices for listed instruments or broker price quotations, when available. Fixed income securities may also be valued using valuation models and estimates based on spreads to actively traded benchmark debt instruments with readily available market prices. | |||||||||||||
Legg Mason evaluates its non-trading investment securities for "other-than-temporary" impairment. Impairment may exist when the fair value of an investment security has been below the adjusted cost for an extended period of time. If an "other-than-temporary" impairment is determined to exist, the amount of impairment that relates to credit losses is recognized as a charge to income. As of March 31, 2014, 2013 and 2012, the amount of temporary unrealized losses for investment securities not recognized in income was not material. | |||||||||||||
For investments in illiquid or privately-held securities for which market prices or quotations may not be readily available, including certain investments held by CIVs, management estimates the value of the securities using a variety of methods and resources, including the most current available financial information for the investment and the industry. | |||||||||||||
In addition to the financial instruments described above and the derivative instruments and CLO loans, bonds and debt, described below, other financial instruments that are carried at fair value or amounts that approximate fair value include Cash and cash equivalents and Short-term borrowings. The fair values of Long-term debt at March 31, 2014 and 2013, aggregated $1,135,103 and $1,206,166, respectively. These fair values were estimated using publicly quoted market prices or discounted cash flow analyses, as appropriate, and were classified as Level 2 in the fair value hierarchy, as described below. | |||||||||||||
Derivatives, Policy [Policy Text Block] | ' | ||||||||||||
The fair values of derivative instruments are recorded as assets or liabilities on the Consolidated Balance Sheets. Legg Mason has used foreign exchange forwards and interest rate swaps to hedge the risk of movement in exchange rates or interest rates on financial assets and liabilities on a limited basis. Also, Legg Mason has used futures contracts on index funds to hedge the market risk of certain seed capital investments. In addition, certain CIVs use derivative instruments. However, there is no risk to Legg Mason in relation to the derivative assets and liabilities of the CIVs in excess of its investment in the funds, if any. | |||||||||||||
Legg Mason has not designated any financial instruments for hedge accounting, as defined in the accounting literature, during the periods presented. The gains or losses on derivative instruments not designated for hedge accounting are included as Other income (expense) or Other Non-Operating Income (Expense) in the Consolidated Statements of Income (Loss), with the exception of gains and losses on derivative instruments of CIVs, which are recorded as Other non-operating income (loss) of consolidated investment vehicles, net, in the Consolidated Statements of Income (Loss). | |||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||
Accounting guidance for fair value measurements defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Under accounting guidance, a fair value measurement should reflect all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of non-performance. | |||||||||||||
The objective of fair value accounting measurements is to reflect, at the date of the financial statements, how much an asset would be sold for in an orderly transaction (as opposed to a distressed or forced transaction) under current market conditions. Specifically, it requires the use of judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. This accounting guidance also relates to other-than-temporary impairments and is intended to bring greater consistency to the timing of impairment recognition. It is also intended to provide greater clarity to investors about the credit and noncredit components of impaired debt securities that are not expected to be sold. The guidance also requires timely disclosures regarding expected cash flows, credit losses, and an aging of securities with unrealized losses. | |||||||||||||
Fair value accounting guidance also establishes a hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |||||||||||||
Legg Mason's financial instruments are measured and reported at fair value and are classified and disclosed in one of the following categories: | |||||||||||||
Level 1 — Financial instruments for which prices are quoted in active markets, which, for Legg Mason, include investments in publicly traded mutual funds with quoted market prices and equities listed in active markets. | |||||||||||||
Level 2 — Financial instruments for which: prices are quoted for similar assets and liabilities in active markets; prices are quoted for identical or similar assets in inactive markets; or prices are based on observable inputs, other than quoted prices, such as models or other valuation methodologies. For Legg Mason, this category may include fixed income securities and certain proprietary fund products. This category also includes CLO loans and derivative liabilities of a CIV. | |||||||||||||
Level 3 — Financial instruments for which values are based on unobservable inputs, including those for which there is little or no market activity. This category includes investments in partnerships, limited liability companies, private equity funds and CLO debt of a CIV. This category may also include certain proprietary fund products with redemption restrictions. | |||||||||||||
The valuation of an asset or liability may involve inputs from more than one level of the hierarchy. The level in the fair value hierarchy in which a fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||
Certain proprietary fund products and investments held by CIVs are valued at net asset value ("NAV") determined by the applicable fund administrator. These funds are typically invested in exchange traded investments with observable market prices. Their valuations may be classified as Level 1, Level 2 or Level 3 based on whether the fund is exchange traded, the frequency of the related NAV determinations and the impact of redemption restrictions. For investments in illiquid and privately-held securities (private equity and investment partnerships) for which market prices or quotations may not be readily available, including certain investments held by CIVs, management must estimate the value of the securities using a variety of methods and resources, including the most current available financial information for the investment and the industry to which it applies in order to determine fair value. These valuation processes for illiquid and privately-held securities inherently require management's judgment and are therefore classified in Level 3. | |||||||||||||
The fair values of CLO loans and bonds are determined based on prices from well-recognized third-party pricing services that utilize available market data and are therefore classified as Level 2. Legg Mason has established controls designed to assess the reasonableness of the prices provided. The fair value of CLO debt is valued using a discounted cash flow methodology. Inputs used to determine the expected cash flows include assumptions about forecasted default and recovery rates that a market participant would use in determining the fair value of the CLO's underlying collateral assets. Given the significance of the unobservable inputs to the fair value measurement, the CLO debt valuation is classified as Level 3. | |||||||||||||
Exchange traded options are valued using the last sale price or, in the absence of a sale, the last offering price. Options traded over the counter are valued using dealer supplied valuations. Options are classified as Level 1. Futures contracts are valued at the last settlement price at the end of each day on the exchange upon which they are traded and are classified as Level 1. | |||||||||||||
As a practical expedient, Legg Mason relies on the NAV of certain investments, classified as Level 2 or Level 3, as their fair value. The NAVs that have been provided by investees are derived from the fair values of the underlying investments as of the reporting date. | |||||||||||||
Any transfers between categories are measured at the beginning of the period. | |||||||||||||
See Note 3 for additional information regarding fair value measurements. | |||||||||||||
Fair Value, Option [Text Block] | ' | ||||||||||||
Legg Mason has elected the fair value option for certain eligible assets and liabilities, including corporate loans and debt, of a CLO it is consolidating (see Note 17). Management believes that the use of the fair value option mitigates the impact of certain timing differences and better matches the changes in fair value of assets and liabilities related to the CLO. Unrealized gains and losses on assets and liabilities for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis, must be applied to an entire instrument, and is irrevocable once elected. Assets and liabilities which are measured at fair value pursuant to the fair value option are included in the assets and liabilities of consolidated investment vehicles in the Consolidated Balance Sheets. At this time, the Company has not elected to apply the fair value option to any of its other financial instruments. | |||||||||||||
Appropriated Retained Earnings [Policy Text Block] | ' | ||||||||||||
Upon the election of the fair value option for eligible assets and liabilities of the CLO described above, Legg Mason recorded a cumulative effect adjustment to Appropriated retained earnings for consolidated investment vehicle on the Consolidated Balance Sheets equal to the difference between the fair values of the CLO's assets and liabilities. This difference is recorded as "Appropriated retained earnings for consolidated investment vehicle" because the investors in the CLO, not Legg Mason shareholders, will ultimately realize any benefits or losses associated with the CLO. Changes in the fair values of the CLO assets and liabilities are recorded as Net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss) and Appropriated retained earnings for consolidated investment vehicle in the Consolidated Balance Sheets. At March 31, 2014, the CLO is in the final stage of liquidation, and the fair value of its assets and liabilities are substantially equal, and there is no Appropriated retained earnings. | |||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||||
Fixed assets primarily consist of equipment, software and leasehold improvements. Equipment consists primarily of communications and technology hardware and furniture and fixtures. Software includes both purchased software and internally developed software. Fixed assets are reported at cost, net of accumulated depreciation and amortization. Depreciation and amortization are determined by use of the straight-line method. Equipment is depreciated over the estimated useful lives of the assets, generally ranging from three to eight years. Software is amortized over the estimated useful lives of the assets, which are generally three years. Leasehold improvements are amortized or depreciated over the initial term of the lease unless options to extend are likely to be exercised. Maintenance and repair costs are expensed as incurred. Internally developed software is reviewed periodically to determine if there is a change in the useful life, or if an impairment in value may exist. If impairment is deemed to exist, the asset is written down to its fair value or is written off if the asset is determined to no longer have any value. | |||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||||
Legg Mason's identifiable intangible assets consist principally of asset management contracts, contracts to manage proprietary mutual funds or funds-of-hedge funds, and trade names resulting from acquisitions. Intangible assets are amortized over their estimated useful lives, using the straight-line method, unless the asset is determined to have an indefinite useful life. Asset management contracts are amortizable intangible assets that are capitalized at acquisition and amortized over the expected life of the contract. The value of contracts to manage assets in proprietary mutual funds or funds-of-hedge funds and the value of trade names are classified as indefinite-life intangible assets. The assignment of indefinite lives to proprietary fund contracts is based upon the assumption that there is no foreseeable limit on the contract period to manage proprietary funds due to the likelihood of continued renewal at little or no cost. The assignment of indefinite lives to trade names is based on the assumption that they are expected to generate cash flows indefinitely. | |||||||||||||
Goodwill represents the residual amount of acquisition cost in excess of identified tangible and intangible assets and assumed liabilities. Indefinite-life intangible assets and goodwill are not amortized for financial statement purposes. Given the relative significance of intangible assets and goodwill to the Company's consolidated financial statements, on a quarterly basis Legg Mason considers if triggering events have occurred that may indicate that the fair values have declined below their respective carrying amounts. Triggering events may include significant adverse changes in the Company's business, legal or regulatory environment, loss of key personnel, significant business dispositions, or other events, including changes in economic arrangements with our affiliates that will impact future operating results. If a triggering event has occurred, the Company will perform quantitative tests, which include critical reviews of all significant factors and assumptions, to determine if any intangible assets or goodwill are impaired. Legg Mason considers factors such as projected cash flows and revenue multiples, to determine whether the value of the assets is impaired and the indefinite-life assumptions are appropriate. If an asset is impaired, the difference between the value of the asset reflected on the consolidated financial statements and its current fair value is recognized as an expense in the period in which the impairment is determined. If a triggering event has not occurred, the Company performs quantitative tests annually at December 31, for indefinite-life intangible assets and goodwill, unless the Company can qualitatively conclude that it is more likely than not that the respective fair values exceed the related carrying values. The fair values of intangible assets subject to amortization are considered for impairment at each reporting period using an undiscounted cash flow analysis. For intangible assets with indefinite lives, fair value is determined from a market participant's perspective based on projected discounted cash flows, which take into consideration estimates of future fees, profit margins, growth rates, taxes, and discount rates. Proprietary fund contracts that are managed and operated as a single unit and meet other criteria may be aggregated for impairment testing. Goodwill is evaluated at the reporting unit level, and is considered for impairment when the carrying value of the reporting unit exceeds the implied fair value of the reporting unit. In estimating the implied fair value of the reporting unit, Legg Mason uses valuation techniques principally based on discounted projected cash flows and EBITDA multiples, similar to techniques employed in analyzing the purchase price of an acquisition. Goodwill is deemed to be recoverable at the reporting unit level, which is also the operating segment level that Legg Mason defines as the Global Asset Management segment. This results from the fact that the chief operating decision maker, Legg Mason's Chief Executive Officer, regularly receives discrete financial information at the consolidated Global Asset Management business level and does not regularly receive discrete financial information, such as operating results, at any lower level, such as the asset management affiliate level. Allocations of goodwill for management restructures, acquisitions and dispositions are based on relative fair values of the respective businesses restructured, added to or sold from the divisions. | |||||||||||||
See Note 5 for additional information regarding intangible assets and goodwill and Note 16 for additional business segment information. | |||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||||||||||
Assets and liabilities of foreign subsidiaries that are denominated in non-U.S. dollar functional currencies are translated at exchange rates as of the Consolidated Balance Sheet dates. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars are included in stockholders' equity and comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in Net Income (Loss). | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||
Legg Mason earns investment advisory fees on assets in separately managed accounts, investment funds, and other products managed for Legg Mason's clients. These fees are primarily based on predetermined percentages of the market value of the assets under management ("AUM"), are recognized over the period in which services are performed and may be billed in advance of the period earned based on AUM at the beginning of the billing period in accordance with the related advisory contracts. Revenue associated with advance billings is deferred and included in Other (current) liabilities in the Consolidated Balance Sheets and is recognized over the period earned. Performance fees may be earned on certain investment advisory contracts for exceeding performance benchmarks on a relative or absolute basis, depending on the product, and are recognized at the end of the performance measurement period. Accordingly, neither advanced billings nor performance fees are subject to reversal. The largest portion of performance fees are earned based on 12-month performance periods that end in differing quarters during the year, with a portion also based on quarterly performance periods. | |||||||||||||
Legg Mason has responsibility for the valuation of AUM, substantially all of which is based on observable market data from independent pricing services, fund accounting agents, custodians or brokers. | |||||||||||||
Distribution and Service Fees Revenue and Expense [Policy Text Block] | ' | ||||||||||||
Distribution and service fees represent fees earned from funds to reimburse the distributor for the costs of marketing and selling fund shares and servicing proprietary funds and are generally determined as a percentage of client assets. Reported amounts also include fees earned from providing client or shareholder servicing, including record keeping or administrative services to proprietary funds. Distribution fees earned on company-sponsored investment funds are reported as revenue. When Legg Mason enters into arrangements with broker-dealers or other third parties to sell or market proprietary fund shares, distribution and servicing expense is accrued for the amounts owed to third parties, including finders' fees and referral fees paid to unaffiliated broker-dealers or introducing parties. Distribution and servicing expense also includes payments to third parties for certain shareholder administrative services and sub-advisory fees paid to unaffiliated asset managers. | |||||||||||||
Deferred Charges, Policy [Policy Text Block] | ' | ||||||||||||
Commissions paid to financial intermediaries in connection with sales of certain classes of company-sponsored mutual funds are capitalized as deferred sales commissions. The asset is amortized over periods not exceeding six years, which represent the periods during which commissions are generally recovered from distribution and service fee revenues and from contingent deferred sales charges ("CDSC") received from shareholders of those funds upon redemption of their shares. CDSC receipts are recorded as distribution and service fee revenue when received and a reduction of the unamortized balance of deferred sales commissions, with a corresponding expense. | |||||||||||||
Management periodically tests the deferred sales commission asset for impairment by reviewing the changes in value of the related shares, the relevant market conditions and other events and circumstances that may indicate an impairment in value has occurred. If these factors indicate an impairment in value, management compares the carrying value to the estimated undiscounted cash flows expected to be generated by the asset over its remaining life. If management determines that the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value. For the years ended March 31, 2014, 2013 and 2012, no impairment charges were recorded. Deferred sales commissions, included in Other non-current assets in the Consolidated Balance Sheets, were $8,031 and $8,259 at March 31, 2014 and 2013, respectively. | |||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||
Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements. Deferred income tax assets are subject to a valuation allowance if, in management's opinion, it is more likely than not that these benefits will not be realized. Legg Mason's deferred income taxes principally relate to net operating loss and other carryforward benefits, business combinations, amortization of intangible assets and accrued compensation. | |||||||||||||
Under applicable accounting guidance, a tax benefit should only be recognized if it is more likely than not that the position will be sustained based on its technical merits. A tax position that meets this threshold is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon settlement by the appropriate taxing authority having full knowledge of all relevant information. | |||||||||||||
The Company's accounting policy is to classify interest related to tax matters as interest expense and related penalties, if any, as other operating expense. | |||||||||||||
See Note 7 for additional information regarding income taxes. | |||||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | ' | ||||||||||||
Legg Mason accrues estimates for loss contingencies related to legal actions, investigations, and proceedings, exclusive of legal fees, when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Related insurance recoveries are recorded separately when the underwriter has confirmed coverage of a specific claim amount. See Note 8 for additional information. | |||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||
Legg Mason's stock-based compensation includes stock options, an employee stock purchase plan, market-based performance shares payable in common stock, restricted stock awards and units, management equity plans for certain affiliates and deferred compensation payable in stock. Under its stock compensation plans, Legg Mason issues equity awards to directors, officers, and other key employees. | |||||||||||||
In accordance with the applicable accounting guidance, compensation expense includes costs for all non-vested share-based awards classified as equity at their grant date fair value amortized over the respective vesting periods on the straight-line method. Legg Mason determines the fair value of stock options and affiliate management equity plan grants using the Black-Scholes option-pricing model, with the exception of market-based performance grants, which are valued with a Monte Carlo option-pricing model. See "Other Developments" below and Note 11 for additional information regarding stock-based compensation. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||
Basic earnings per share attributable to Legg Mason, Inc. common shareholders ("EPS") is calculated by dividing Net Income (Loss) Attributable to Legg Mason, Inc. by the weighted-average number of shares outstanding. The calculation of weighted-average shares includes common shares, shares exchangeable into common stock and certain unvested share-based payment awards that are considered participating securities because they contain nonforfeitable rights to dividends. Diluted EPS is similar to basic EPS, but adjusts for the effect of potential common shares unless they are antidilutive. For periods with a net loss, potential common shares are considered antidilutive. See Note 12 for additional discussion of EPS. | |||||||||||||
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | ' | ||||||||||||
In May 2010, Legg Mason's management committed to a plan to streamline its business model as further described in Note 15. The streamlining initiative was completed as of March 31, 2012. The costs associated with this initiative primarily related to employee termination benefits, incentives to retain employees during the transition period, charges for consolidating leased office space, and contract termination costs. Termination benefits, including severance and retention incentives, were recorded as Transition-related compensation in the Consolidated Statements of Income (Loss). These compensation items required employees to provide future service and were therefore expensed ratably over the required service period. Contract termination and other costs were expensed when incurred. | |||||||||||||
As further discussed in Note 2, in March 2014, Legg Mason entered into a definitive agreement to acquire QS Investors Holdings, LLC ("QS Investors"). Legg Mason plans to integrate its two existing affiliates, Batterymarch Financial Management, Inc. ("Batterymarch") and Legg Mason Global Asset Allocation, LLC ("LMGAA") into QS Investors over time to leverage the best aspects of each subsidiary. The costs anticipated with this integration primarily relate to employee termination benefits, including severance and retention incentives, which are recorded as Compensation and benefits in the Consolidated Statements of Income (Loss). See Note 2 for additional information. | |||||||||||||
Other Developments [Policy Text Block] | ' | ||||||||||||
In conjunction with the December 2012 modification of employment and other arrangements with certain employees of its subsidiary, The Permal Group, Ltd ("Permal"), Legg Mason completed implementation of a management equity plan during the quarter ended June 30, 2013. On March 31, 2014, a similar management equity plan was implemented by Legg Mason for certain employees of ClearBridge Investments, LLC ("ClearBridge"). The plans better align the interests of each affiliate's management with those of Legg Mason and its shareholders, and provide for, among other things, higher margins at specified higher revenue levels. The management equity plans entitle certain key employees of each affiliate to participate in 15% of the future growth, if any, of the respective affiliates' enterprise value (subject to appropriate discounts) subsequent to the date of grant. Current and future grants under the plans vest 20% annually for five years, over which the related grant-date fair values will be recognized as Compensation expense in the Consolidated Statements of Income. Once vested, plan units can be put to Legg Mason for settlement at fair value, beginning one year after the holder terminates their employment. Legg Mason can also call plan units, generally post employment, for settlement at fair value. Changes in control of Legg Mason or either affiliate do not impact vesting, settlement or other provisions of the units. However, upon sale of substantially all of the affiliate's assets, the vesting of the respective units would accelerate and participants would receive a fair value payment in respect of their interests under the plan. Future grants of additional plan units will dilute the participation of existing outstanding units in 15% of the future growth of the respective affiliates' enterprise value, if any, subsequent to the related future grant date, for which additional compensation expense would be incurred. Further, future grants under either plan will not entitle the plan participants, collectively, to more than an aggregate 15% of the future growth of the respective affiliate's enterprise value. Upon vesting, the grant-date fair value of vested plan units will be reflected in the Consolidated Balance Sheets as redeemable noncontrolling interests through an adjustment to additional paid-in capital. Thereafter, redeemable noncontrolling interests will continue to be adjusted to the ultimate maximum estimated redemption value over the expected term, through retained earnings adjustments. See Note 11 for additional information. | |||||||||||||
Noncontrolling Interests Redeemable | ' | ||||||||||||
For CIVs with third-party investors, the related noncontrolling interests are classified as redeemable noncontrolling interests if investors in these funds may request withdrawals at any time. Also included in redeemable noncontrolling interests are vested affiliate management equity plan units. There are no nonredeemable noncontrolling interests as of March 31, 2014 or 2013. As noted above, Net income (loss) attributable to noncontrolling interests in the Consolidated Statements of Income (Loss) also includes Net income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicle in the Consolidated Balance Sheets. | |||||||||||||
Net income (loss) attributable to noncontrolling interests for the years ended March 31, 2014, 2013 and 2012, included the following amounts: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to redeemable noncontrolling interests | $ | 1,881 | $ | 971 | $ | 8,915 | |||||||
Net Income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicle | (4,829 | ) | (7,392 | ) | 1,299 | ||||||||
Total | $ | (2,948 | ) | $ | (6,421 | ) | $ | 10,214 | |||||
Redeemable noncontrolling interests as of and for the years ended March 31, 2014, 2013 and 2012, included the following amounts: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 21,009 | $ | 24,031 | $ | 36,712 | |||||||
Net income attributable to redeemable noncontrolling interests | 1,881 | 971 | 8,915 | ||||||||||
Net (redemptions/distributions paid to)/subscriptions received from noncontrolling interest holders | 20,438 | (3,993 | ) | (21,596 | ) | ||||||||
Management equity plan interests | 1,816 | — | — | ||||||||||
Balance, end of period | $ | 45,144 | $ | 21,009 | $ | 24,031 | |||||||
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' | ||||||||||||
In June 2013, the Financial Accounting Standards Board ("FASB") updated the guidance for investment company entities. The update clarifies the characteristics of an investment company, provides comprehensive guidance for assessing whether an entity is an investment company, requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method, and requires additional disclosures. This update will be effective for Legg Mason in fiscal 2015. Legg Mason is currently evaluating its adoption and it is not expected to have a material impact on Legg Mason's consolidated financial statements. | |||||||||||||
In December 2013, the FASB ratified an Emerging Issues Task Force ("EITF") consensus that will update the guidance on measuring the financial assets and financial liabilities of consolidated collateralized financing entities. The update will require that an entity electing to apply the guidance should measure both the financial assets and financial liabilities using the fair value of the consolidated collateralized financing entity’s financial assets or financial liabilities, whichever is more observable. Subject to formal issuance by the FASB, this update will also require certain disclosures by entities that apply its provisions and will be effective for Legg Mason in fiscal 2016, unless adopted earlier. Legg Mason is evaluating its adoption. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interests [Table Text Block] | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income attributable to redeemable noncontrolling interests | $ | 1,881 | $ | 971 | $ | 8,915 | |||||||
Net Income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicle | (4,829 | ) | (7,392 | ) | 1,299 | ||||||||
Total | $ | (2,948 | ) | $ | (6,421 | ) | $ | 10,214 | |||||
Changes in redeemable noncontrolling interests | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 21,009 | $ | 24,031 | $ | 36,712 | |||||||
Net income attributable to redeemable noncontrolling interests | 1,881 | 971 | 8,915 | ||||||||||
Net (redemptions/distributions paid to)/subscriptions received from noncontrolling interest holders | 20,438 | (3,993 | ) | (21,596 | ) | ||||||||
Management equity plan interests | 1,816 | — | — | ||||||||||
Balance, end of period | $ | 45,144 | $ | 21,009 | $ | 24,031 | |||||||
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Fair Value Inputs Assets Liabilities Quantitative Information [Table Text Block] | ' | ||||
Projected Cash Flow Growth Rates | Discount Rate | ||||
Indefinite-life fund management contracts | (35)% to 11% (weighted-average - 6% ) | 16.00% | |||
Projected Revenue Growth Rates | |||||
Contingent consideration | (16)% to 3% (weighted-average - (5)%) | 2.00% | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||
Cash | $ | 8,156 | |||
Receivables | 12,174 | ||||
Amortizable asset management contracts | 2,865 | ||||
Indefinite-life fund management contracts | 65,126 | ||||
Goodwill | 28,983 | ||||
Other current liabilities, net | (16,667 | ) | |||
Contingent consideration | (21,566 | ) | |||
Deferred tax liability | (15,638 | ) | |||
Total net assets acquired | $ | 63,433 | |||
Fair_Values_of_Assets_and_Liab1
Fair Values of Assets and Liabilities (Tables) (Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]) | 12 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | ' | ||||||||||||||||||||||||||||
Open Option Contracts Written [Line Items] | ' | ||||||||||||||||||||||||||||
Investment Table [Text Block] | ' | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Current investments | $ | 467,726 | $ | 371,080 | |||||||||||||||||||||||||
Available-for-sale | 12,072 | 12,400 | |||||||||||||||||||||||||||
Other(1) | 90 | 99 | |||||||||||||||||||||||||||
Total | $ | 479,888 | $ | 383,579 | |||||||||||||||||||||||||
-1 | Includes investments in private equity securities that do not have readily determinable fair values. | ||||||||||||||||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | ||||||||||||||||||||||||||||
Years Ended March 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Proceeds | $ | 4,306 | $ | 5,272 | $ | 6,197 | |||||||||||||||||||||||
Gross realized gains | — | 22 | 6 | ||||||||||||||||||||||||||
Gross realized losses | (29 | ) | (43 | ) | (25 | ) | |||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable | Significant unobservable inputs | Total | ||||||||||||||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents(1): | |||||||||||||||||||||||||||||
Money market funds | $ | 456,631 | $ | — | $ | — | $ | 456,631 | |||||||||||||||||||||
Time deposits and other | — | 106,226 | — | 106,226 | |||||||||||||||||||||||||
Total cash equivalents | 456,631 | 106,226 | — | 562,857 | |||||||||||||||||||||||||
Current investments: | |||||||||||||||||||||||||||||
Trading investments relating to long-term incentive compensation plans(2) | 109,648 | — | — | 109,648 | |||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments(3) | 260,251 | 75,015 | 190 | 335,456 | |||||||||||||||||||||||||
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments(4)(5) | 8,497 | 14,125 | — | 22,622 | |||||||||||||||||||||||||
Total current investments | 378,396 | 89,140 | 190 | 467,726 | |||||||||||||||||||||||||
Available-for-sale investment securities(6) | 2,048 | 10,024 | — | 12,072 | |||||||||||||||||||||||||
Investments in partnerships, LLCs and other(6) | — | 2,878 | 21,586 | 24,464 | |||||||||||||||||||||||||
Equity method investments in partnerships and LLCs(4)(6) | — | — | 62,973 | 62,973 | |||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||
Currency and market hedges | 3,584 | — | — | 3,584 | |||||||||||||||||||||||||
Other investments(6) | — | — | 90 | 90 | |||||||||||||||||||||||||
Total | $ | 840,659 | $ | 208,268 | $ | 84,839 | $ | 1,133,766 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability(7) | $ | — | $ | — | $ | (29,553 | ) | $ | (29,553 | ) | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Currency and market hedges | (2,335 | ) | — | — | (2,335 | ) | |||||||||||||||||||||||
Total | $ | (2,335 | ) | $ | — | $ | (29,553 | ) | $ | (31,888 | ) | ||||||||||||||||||
As of March 31, 2013 | |||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable | Significant unobservable inputs | Total | ||||||||||||||||||||||||||
(Level 1) | inputs | (Level 3) | |||||||||||||||||||||||||||
(Level 2) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash equivalents(1): | |||||||||||||||||||||||||||||
Money market funds | $ | 485,776 | $ | — | $ | — | $ | 485,776 | |||||||||||||||||||||
Time deposits and other | — | 177,471 | — | 177,471 | |||||||||||||||||||||||||
Total cash equivalents | 485,776 | 177,471 | — | 663,247 | |||||||||||||||||||||||||
Current investments: | |||||||||||||||||||||||||||||
Trading investments relating to long-term incentive compensation plans(2) | 86,583 | — | — | 86,583 | |||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments(3) | 158,846 | 69,064 | 246 | 228,156 | |||||||||||||||||||||||||
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments(4)(5) | 12,600 | 43,741 | — | 56,341 | |||||||||||||||||||||||||
Total current investments | 258,029 | 112,805 | 246 | 371,080 | |||||||||||||||||||||||||
Available-for-sale investment securities(6) | 2,034 | 10,354 | 12 | 12,400 | |||||||||||||||||||||||||
Investments in partnerships, LLCs and other(6) | 761 | 2,620 | 27,762 | 31,143 | |||||||||||||||||||||||||
Equity method investments in partnerships and LLCs(4)(6) | 1,518 | 924 | 66,338 | 68,780 | |||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||
Currency and market hedges | 1,939 | — | — | 1,939 | |||||||||||||||||||||||||
Other investments(6) | — | — | 99 | 99 | |||||||||||||||||||||||||
Total | $ | 750,057 | $ | 304,174 | $ | 94,457 | $ | 1,148,688 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability(7) | $ | — | $ | — | $ | (21,900 | ) | $ | (21,900 | ) | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||
Currency and market hedges | (781 | ) | — | — | (781 | ) | |||||||||||||||||||||||
Total | $ | (781 | ) | $ | — | $ | (21,900 | ) | $ | (22,681 | ) | ||||||||||||||||||
-1 | Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds are measured at NAV and are classified as Level 1. Cash investments in time deposits and other are measured at amortized cost, which approximates fair value because of the short time between the purchase of the instrument and its expected realization, and are classified as Level 2. | ||||||||||||||||||||||||||||
-2 | Primarily mutual funds where there is minimal market risk to the Company as any change in value is primarily offset by an adjustment to compensation expense and related deferred compensation liability. | ||||||||||||||||||||||||||||
-3 | Trading investments of proprietary fund products and other trading investments consist of approximately 53% and 47% in equity and debt securities, respectively, as of March 31, 2014, and approximately 49% and 51% in equity and debt securities, respectively, as of March 31, 2013. | ||||||||||||||||||||||||||||
-4 | Substantially all of Legg Mason's equity method investments are investment companies which record their underlying investments at fair value. Fair value is measured using Legg Mason's share of the investee's underlying net income or loss, which is predominately representative of fair value adjustments in the investments held by the equity method investee. | ||||||||||||||||||||||||||||
-5 | Includes investments under the equity method (which approximate fair value) relating to long-term incentive compensation plans of $14,125 and $43,741 as of March 31, 2014 and 2013, respectively, and proprietary fund products and other investments of $8,497 and $12,600 as of March 31, 2014 and 2013, respectively, which are classified as Investment securities on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
-6 | Amounts are included in Other non-current assets on the Consolidated Balance Sheets for each of the periods presented. | ||||||||||||||||||||||||||||
-7 | See Note 2. | ||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||||||||||||||
Value as of March 31, 2013 | Purchases | Sales | Redemptions/ Settlements/ Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2014 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments | $ | 246 | $ | 1 | $ | — | $ | (77 | ) | $ | — | $ | 20 | $ | 190 | ||||||||||||||
Investments in partnerships, LLCs and other | 27,762 | — | (731 | ) | (4,869 | ) | — | (576 | ) | 21,586 | |||||||||||||||||||
Equity method investments in partnerships and LLCs | 66,338 | 5,154 | (750 | ) | (9,258 | ) | — | 1,489 | 62,973 | ||||||||||||||||||||
Other investments | 111 | — | (12 | ) | — | — | (9 | ) | 90 | ||||||||||||||||||||
$ | 94,457 | $ | 5,155 | $ | (1,493 | ) | $ | (14,204 | ) | $ | — | $ | 924 | $ | 84,839 | ||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability | $ | (21,900 | ) | $ | — | $ | — | $ | — | $ | — | $ | (7,653 | ) | $ | (29,553 | ) | ||||||||||||
Value as of March 31, 2012 | Purchases | Sales | Redemptions/Settlements/ Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2013 | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Trading investments of proprietary fund products and other trading investments | $ | — | $ | 246 | $ | — | $ | — | $ | — | $ | — | $ | 246 | |||||||||||||||
Equity method investments in proprietary fund products | 11,778 | — | — | (11,705 | ) | — | (73 | ) | — | ||||||||||||||||||||
Investments in partnerships, LLCs and other | 28,763 | — | (970 | ) | (1,014 | ) | — | 983 | 27,762 | ||||||||||||||||||||
Equity method investments in partnerships and LLCs | 166,438 | 2,827 | (2,268 | ) | (117,411 | ) | — | 16,752 | 66,338 | ||||||||||||||||||||
Other investments | 124 | — | — | — | — | (13 | ) | 111 | |||||||||||||||||||||
$ | 207,103 | $ | 3,073 | $ | (3,238 | ) | $ | (130,130 | ) | $ | — | $ | 17,649 | $ | 94,457 | ||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | (21,566 | ) | $ | — | $ | — | $ | — | $ | (334 | ) | $ | (21,900 | ) | ||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | ' | ||||||||||||||||||||||||||||
Fair Value Determined Using NAV | As of March 31, 2014 | ||||||||||||||||||||||||||||
Category of Investment | Investment Strategy | 31-Mar-14 | 31-Mar-13 | Unfunded Commitments | Remaining Term | ||||||||||||||||||||||||
Funds-of-hedge funds | Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge | $ | 34,771 | -1 | $ | 38,811 | -1 | n/a | n/a | ||||||||||||||||||||
Hedge funds | Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge | 19,461 | 24,716 | $ | 20,000 | n/a | |||||||||||||||||||||||
Private equity funds | Long/short equity | 22,759 | -2 | 23,763 | -2 | 5,575 | Up to 9 years | ||||||||||||||||||||||
Other | Various | 2,434 | 2,408 | n/a | Various (3) | ||||||||||||||||||||||||
Total | $ | 79,425 | -4 | $ | 89,698 | -4 | $ | 25,575 | |||||||||||||||||||||
n/a-not applicable | |||||||||||||||||||||||||||||
-1 | 40% monthly redemption and 60% quarterly redemption as of March 31, 2014. 49% monthly redemption and 51% quarterly redemption as of March 31, 2013. Any remaining lockup expired in June 2013. | ||||||||||||||||||||||||||||
(2) Liquidations are expected over the remaining term. | |||||||||||||||||||||||||||||
-3 | Of this balance, 10% has a remaining term of less than one year and 90% has a remaining term of 19 years. | ||||||||||||||||||||||||||||
-4 | Comprised of approximately 31% and 69% of Level 2 and Level 3 assets, respectively, as of March 31, 2014 and 32% and 68% of Level 2 and Level 3 assets, respectively, as of March 31, 2013. |
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Components of fixed assets | ' | ||||||||
2014 | 2013 | ||||||||
Equipment | $ | 147,663 | $ | 152,065 | |||||
Software | 249,368 | 227,739 | |||||||
Leasehold improvements | 209,747 | 222,260 | |||||||
Total cost | 606,778 | 602,064 | |||||||
Less: accumulated depreciation and amortization | (417,537 | ) | (400,245 | ) | |||||
Fixed assets, net | $ | 189,241 | $ | 201,819 | |||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Components of intangible assets | ' | ||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||
Amortizable asset management contracts | |||||||||||||
Cost | $ | 207,224 | $ | 208,651 | |||||||||
Accumulated amortization | (197,255 | ) | (186,324 | ) | |||||||||
Net | 9,969 | 22,327 | |||||||||||
Indefinite–life intangible assets | |||||||||||||
U.S. domestic mutual fund management contracts | 2,106,351 | 2,106,351 | |||||||||||
Permal/Fauchier funds-of-hedge fund management contracts | 698,104 | 692,133 | |||||||||||
Other fund management contracts | 304,549 | 303,951 | |||||||||||
Trade names | 52,800 | 52,800 | |||||||||||
3,161,804 | 3,155,235 | ||||||||||||
Intangible assets, net | $ | 3,171,773 | $ | 3,177,562 | |||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | ||||||||||||
Projected Cash Flow Growth Rates | |||||||||||||
Range | Weighted- Average | Discount Rates | |||||||||||
Domestic mutual funds contracts asset | 3% to 9% | 6% | 14.50% | ||||||||||
Permal funds-of-hedge funds contracts and trade name assets | (1)% to 17% | 8% | 16.00% | ||||||||||
Estimated amortization expense | ' | ||||||||||||
2015 | $ | 3,381 | |||||||||||
2016 | 3,145 | ||||||||||||
2017 | 2,479 | ||||||||||||
2018 | 482 | ||||||||||||
2019 | 482 | ||||||||||||
Thereafter | — | ||||||||||||
Total | $ | 9,969 | |||||||||||
Changes in carrying value of goodwill | ' | ||||||||||||
Gross Book Value | Accumulated Impairment | Net Book Value | |||||||||||
Balance as of March 31, 2012 | $ | 2,436,945 | $ | (1,161,900 | ) | $ | 1,275,045 | ||||||
Impact of excess tax basis amortization | (21,573 | ) | — | (21,573 | ) | ||||||||
Business acquisition (see Note 2) | 28,983 | — | 28,983 | ||||||||||
Other, including changes in foreign exchange rates | (13,290 | ) | — | (13,290 | ) | ||||||||
Balance as of March 31, 2013 | 2,431,065 | (1,161,900 | ) | 1,269,165 | |||||||||
Impact of excess tax basis amortization | (21,675 | ) | — | (21,675 | ) | ||||||||
Other, including changes in foreign exchange rates | (6,967 | ) | — | (6,967 | ) | ||||||||
Balance as of March 31, 2014 | $ | 2,402,423 | $ | (1,161,900 | ) | $ | 1,240,523 | ||||||
ShortTerm_Borrowings_and_LongT1
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Instrument | ' | ||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Current Accreted Value | Unamortized Discount | Maturity Amount | Accreted Value | ||||||||||||||
5.5% senior notes | $ | 645,042 | $ | 4,958 | $ | 650,000 | $ | 644,077 | |||||||||
5.625% senior notes | 393,784 | 6,216 | 400,000 | — | |||||||||||||
Five-year amortizing term loan | — | — | — | 500,000 | |||||||||||||
Other term loans | 438 | — | 438 | 877 | |||||||||||||
Subtotal | 1,039,264 | 11,174 | 1,050,438 | 1,144,954 | |||||||||||||
Less: current portion | 438 | — | 438 | 50,438 | |||||||||||||
Total | $ | 1,038,826 | $ | 11,174 | $ | 1,050,000 | $ | 1,094,516 | |||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||||||||||
2015 | $ | 438 | |||||||||||||||
2016 | — | ||||||||||||||||
2017 | — | ||||||||||||||||
2018 | — | ||||||||||||||||
2019 | — | ||||||||||||||||
Thereafter | 1,050,000 | ||||||||||||||||
Total | $ | 1,050,438 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of income (loss) before income tax provision (benefit) | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 320,890 | $ | (264,342 | ) | $ | 257,866 | ||||||
Foreign | 98,751 | (246,265 | ) | 45,217 | |||||||||
Total | $ | 419,641 | $ | (510,607 | ) | $ | 303,083 | ||||||
Components of income tax expense (benefit) | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | $ | 125,494 | $ | (74,185 | ) | $ | 54,179 | ||||||
Foreign | (1,450 | ) | (85,677 | ) | (7,850 | ) | |||||||
State and local | 13,761 | 9,003 | 25,723 | ||||||||||
Total income tax provision (benefit) | $ | 137,805 | $ | (150,859 | ) | $ | 72,052 | ||||||
Current | $ | 19,375 | $ | 6,496 | $ | 22,860 | |||||||
Deferred | 118,430 | (157,355 | ) | 49,192 | |||||||||
Total income tax provision (benefit) | $ | 137,805 | $ | (150,859 | ) | $ | 72,052 | ||||||
Reconciliation of the difference between the effective income tax rate and the statutory federal income tax rate | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision (benefit) at statutory U.S. federal income tax rate | 35 | % | (35.0 | )% | 35 | % | |||||||
State income taxes, net of federal income tax benefit(1) | 1.8 | 1.5 | 5.4 | ||||||||||
Effect of foreign tax rates(1) | (4.2 | ) | 3.8 | (1.8 | ) | ||||||||
Effect of loss on Australian restructuring | — | — | (6.0 | ) | |||||||||
Changes in U.K. tax rates on deferred tax assets and liabilities | (4.6 | ) | (3.5 | ) | (6.0 | ) | |||||||
Net (income) loss attributable to noncontrolling interests | 0.3 | 0.5 | (0.8 | ) | |||||||||
Other, net(1) | 4.5 | 3.2 | (2.0 | ) | |||||||||
Effective income tax (benefit) rate | 32.8 | % | (29.5 | )% | 23.8 | % | |||||||
-1 | State income taxes include changes in related valuation allowances, net of the impact on deferred tax assets of changes in state apportionment factors and planning strategies. The effect of foreign tax rates also includes changes in related valuation allowances. Other includes changes in federal valuation allowances and permanent tax adjustments. See schedule below for the change in valuation allowances by jurisdiction. | ||||||||||||
Summary of deferred tax assets and liabilities | ' | ||||||||||||
2014 | 2013 | ||||||||||||
DEFERRED TAX ASSETS | |||||||||||||
Accrued compensation and benefits | $ | 154,074 | $ | 107,411 | |||||||||
Accrued expenses | 61,575 | 73,181 | |||||||||||
Operating loss carryforwards | 267,940 | 449,806 | |||||||||||
Capital loss carryforwards | 10,015 | 41,256 | |||||||||||
Foreign tax credit carryforward | 235,661 | 115,819 | |||||||||||
Federal benefit of uncertain tax positions | 16,914 | 21,165 | |||||||||||
Mutual fund launch costs | 31,774 | 24,324 | |||||||||||
Net unrealized losses from investments | — | 4,447 | |||||||||||
Other | 303 | 5,086 | |||||||||||
Deferred tax assets | 778,256 | 842,495 | |||||||||||
Valuation allowance | (90,832 | ) | (115,815 | ) | |||||||||
Deferred tax assets after valuation allowance | $ | 687,424 | $ | 726,680 | |||||||||
2014 | 2013 | ||||||||||||
DEFERRED TAX LIABILITIES | |||||||||||||
Basis differences, principally for intangible assets and goodwill | $ | 72,596 | $ | 134,873 | |||||||||
Depreciation and amortization | 523,595 | 386,959 | |||||||||||
Net unrealized gains from investments | 4,743 | — | |||||||||||
Other | 221 | 1,528 | |||||||||||
Deferred tax liabilities | 601,155 | 523,360 | |||||||||||
Net deferred tax asset | $ | 86,269 | $ | 203,320 | |||||||||
Deferred tax assets and valuation allowances relating to carryforwards | ' | ||||||||||||
2014 | 2013 | Expires Beginning | |||||||||||
after Fiscal Year | |||||||||||||
Deferred tax assets | |||||||||||||
U.S. federal net operating losses | $ | 80,515 | $ | 266,659 | 2029 | ||||||||
U.S. federal capital losses | 3,545 | 74 | 2015 | ||||||||||
U.S. federal foreign tax credits | 235,661 | 115,819 | 2015 | ||||||||||
U.S. charitable contributions | — | 5,401 | 2013 | ||||||||||
U.S. state net operating losses (1,2) | 168,173 | 161,136 | 2015 | ||||||||||
U.S. state capital losses | 532 | 34,960 | 2015 | ||||||||||
Foreign net operating losses | 19,252 | 22,011 | 2027 | ||||||||||
Foreign capital losses | 5,938 | 6,222 | n/a | ||||||||||
Total deferred tax assets for carryforwards | $ | 513,616 | $ | 612,282 | |||||||||
Valuation allowances | |||||||||||||
U.S. federal capital losses | $ | 74 | $ | 74 | |||||||||
U.S. federal foreign tax credits | 25,947 | 23,608 | |||||||||||
U.S. charitable contributions | — | 1,597 | |||||||||||
U.S. state net operating losses | 34,590 | 25,951 | |||||||||||
U.S. state capital losses | 129 | 34,960 | |||||||||||
Foreign net operating losses | 15,738 | 15,899 | |||||||||||
Foreign capital losses | 5,938 | 6,222 | |||||||||||
Valuation allowances for carryforwards | 82,416 | 108,311 | |||||||||||
Foreign other deferred assets | 8,416 | 7,504 | |||||||||||
Total valuation allowances | $ | 90,832 | $ | 115,815 | |||||||||
-1 | Substantially all of the U.S. state net operating losses carryforward through fiscal 2029. | ||||||||||||
-2 | Due to potential for change in the factors relating to apportionment of income to various states, the Company's effective state tax rates are subject to fluctuation which will impact the value of the Company's deferred tax assets, including net operating losses, and could have a material impact on the future effective tax rate of the Company. | ||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 72,650 | $ | 90,831 | $ | 77,653 | |||||||
Additions based on tax positions related to the current year | 5,659 | 11,726 | 9,822 | ||||||||||
Additions for tax positions of prior years | 12,610 | 8,439 | 10,668 | ||||||||||
Reductions for tax positions of prior years | (138 | ) | (13,083 | ) | (3,575 | ) | |||||||
Decreases related to settlements with taxing authorities | (12,889 | ) | (25,205 | ) | (3,185 | ) | |||||||
Expiration of statutes of limitations | — | (58 | ) | (552 | ) | ||||||||
Balance, end of year | $ | 77,892 | $ | 72,650 | $ | 90,831 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Schedule Of Future Minimum Rental Payments For Operating Leases | ' | ||||||||||||
2015 | $ | 134,280 | |||||||||||
2016 | 115,694 | ||||||||||||
2017 | 97,595 | ||||||||||||
2018 | 87,080 | ||||||||||||
2019 | 72,879 | ||||||||||||
Thereafter | 351,275 | ||||||||||||
Total | $ | 858,803 | |||||||||||
Lease Liability Reserve Roll Forward [Table Text Block] | ' | ||||||||||||
Balance as of March 31, 2011 | $ | 40,521 | |||||||||||
Accrued charges for vacated and subleased space (1) | 17,391 | ||||||||||||
Payments, net | (12,397 | ) | |||||||||||
Adjustments and other | (752 | ) | |||||||||||
Balance as of March 31, 2012 | 44,763 | ||||||||||||
Accrued charges for vacated and subleased space (1) | 39,080 | ||||||||||||
Payments, net | (15,341 | ) | |||||||||||
Adjustments and other | (1,590 | ) | |||||||||||
Balance as of March 31, 2013 | 66,912 | ||||||||||||
Accrued charges for vacated and subleased space (1) | 7,371 | ||||||||||||
Payments, net | (17,117 | ) | |||||||||||
Adjustments and other | (1,666 | ) | |||||||||||
Balance as of March 31, 2014 | $ | 55,500 | |||||||||||
Schedule of Rent Expense [Table Text Block] | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Rental expense | $ | 130,880 | $ | 138,488 | $ | 140,285 | |||||||
Less: sublease income | 16,289 | 14,750 | 14,310 | ||||||||||
Net rent expense | $ | 114,591 | $ | 123,738 | $ | 125,975 | |||||||
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | ' | |||||||||
Years Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
COMMON STOCK | ||||||||||
Beginning balance | 125,341 | 139,874 | 150,219 | |||||||
Shares issued for: | ||||||||||
Stock option exercises and other stock-based compensation | 839 | 80 | 172 | |||||||
Deferred compensation employee stock trust | 50 | 71 | 68 | |||||||
Deferred compensation, net | 1,175 | 1,925 | 1,246 | |||||||
Shares repurchased and retired | (9,677 | ) | (16,199 | ) | (13,597 | ) | ||||
Employee tax withholding by settlement of net share transactions | (555 | ) | (410 | ) | (64 | ) | ||||
Equity Units exchanged | — | — | 1,830 | |||||||
Ending balance | 117,173 | 125,341 | 139,874 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||
Number of Shares | Weighted-Average Exercise Price Per Share | ||||||||||
Options outstanding at March 31, 2011 | 5,419 | $ | 59.82 | ||||||||
Granted | 810 | 33.99 | |||||||||
Exercised | (117 | ) | 25.32 | ||||||||
Canceled/forfeited | (488 | ) | 48.8 | ||||||||
Options outstanding at March 31, 2012 | 5,624 | 57.78 | |||||||||
Granted | 966 | 23.72 | |||||||||
Exercised | (25 | ) | 21.8 | ||||||||
Canceled/forfeited | (1,204 | ) | 51.87 | ||||||||
Options outstanding at March 31, 2013 | 5,361 | 53.13 | |||||||||
Granted | 1,215 | 33.64 | |||||||||
Exercised | (804 | ) | 30.52 | ||||||||
Canceled/forfeited | (971 | ) | 97.49 | ||||||||
Options outstanding at March 31, 2014 | 4,801 | $ | 43.02 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||
Exercise | Option Shares | Weighted-Average | Weighted-Average | ||||||||
Price Range | Outstanding | Exercise Price | Remaining Life | ||||||||
Per Share | (in years) | ||||||||||
$ 12.65 - $ 25.00 | 846 | $ | 22.95 | 5.8 | |||||||
25.01 - 35.00 | 2,403 | 31.89 | 4.9 | ||||||||
35.01 - 94.00 | 681 | 35.16 | 7.1 | ||||||||
94.01 - 100.00 | 416 | 95.13 | 0.3 | ||||||||
100.01 - 134.97 | 455 | 103.21 | 1.2 | ||||||||
4,801 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | ||||||||||
Exercise | Option Shares | Weighted-Average | |||||||||
Price Range | Exercisable | Exercise Price | |||||||||
Per Share | |||||||||||
$ 12.65 - $ 25.00 | 241 | $ | 21.03 | ||||||||
25.01 - 35.00 | 1,412 | 31.8 | |||||||||
35.01 - 94.00 | 7 | 35.16 | |||||||||
94.01 - 100.00 | 416 | 95.13 | |||||||||
100.01 - 134.97 | 455 | 103.21 | |||||||||
2,531 | |||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||
Number | Weighted-Average | ||||||||||
of Shares | Grant Date | ||||||||||
Fair Value | |||||||||||
Shares unvested at March 31, 2013 | 2,107 | $ | 11.65 | ||||||||
Granted | 1,215 | 33.64 | |||||||||
Vested | (984 | ) | 29.66 | ||||||||
Canceled/forfeited | (68 | ) | 29.73 | ||||||||
Shares unvested at March 31, 2014 | 2,270 | $ | 30.74 | ||||||||
Management [Member] | ' | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ||||||||||
Assumptions used to determine the weighted-average fair value of option grants | ' | ||||||||||
2014 | 2013 | 2012 | |||||||||
Expected dividend yield | 1.54 | % | 1.44 | % | 1.39 | % | |||||
Risk-free interest rate | 0.8 | % | 0.81 | % | 1.95 | % | |||||
Expected volatility | 45.08 | % | 51.8 | % | 47.16 | % | |||||
Expected life (in years) | 4.93 | 5.02 | 5.12 | ||||||||
Chief Executive Officer [Member] | ' | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ||||||||||
Assumptions used to determine the weighted-average fair value of option grants | ' | ||||||||||
Expected dividend yield | 1.48 | % | |||||||||
Risk-free interest rate | 0.86 | % | |||||||||
Expected volatility | 44.05 | % |
StockBased_Compensation_Restri
Stock-Based Compensation Restricted Stock (Tables) | 12 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Restricted stock and restricted stock unit transactions | ' | |||||||
Number of Shares | Weighted-Average Grant Date Value | |||||||
Unvested shares at March 31, 2011 | 2,637 | $ | 33.01 | |||||
Granted | 1,370 | 33.48 | ||||||
Vested | (1,075 | ) | 31.49 | |||||
Canceled/forfeited | (59 | ) | 32.68 | |||||
Unvested shares at March 31, 2012 | 2,873 | 33.83 | ||||||
Granted | 2,185 | 24.04 | ||||||
Vested | (1,177 | ) | 31.22 | |||||
Canceled/forfeited | (143 | ) | 58.3 | |||||
Unvested shares at March 31, 2013 | 3,738 | 27.99 | ||||||
Granted | 1,369 | 35.66 | ||||||
Vested | (1,622 | ) | 28.66 | |||||
Canceled/forfeited | (151 | ) | 29.04 | |||||
Unvested shares at March 31, 2014 | 3,334 | $ | 30.77 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computations of basic and diluted EPS | ' | ||||||||||||
Years ended March 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted-average basic shares outstanding | 121,941 | 133,226 | 143,292 | ||||||||||
Potential common shares: | |||||||||||||
Employee stock options | 442 | — | 57 | ||||||||||
Weighted-average diluted shares (1) | 122,383 | 133,226 | 143,349 | ||||||||||
Net Income (Loss) | $ | 281,836 | $ | (359,748 | ) | $ | 231,031 | ||||||
Less: Net income (loss) attributable to noncontrolling interests | (2,948 | ) | (6,421 | ) | 10,214 | ||||||||
Net Income (Loss) Attributable to Legg Mason, Inc. | $ | 284,784 | $ | (353,327 | ) | $ | 220,817 | ||||||
Net Income (Loss) per share Attributable to Legg Mason, Inc. common shareholders | |||||||||||||
Basic | $ | 2.34 | $ | (2.65 | ) | $ | 1.54 | ||||||
Diluted | $ | 2.33 | $ | (2.65 | ) | $ | 1.54 | ||||||
-1 | Diluted shares are the same as basic shares for periods with a net loss. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||
13. ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||
Accumulated other comprehensive income includes cumulative foreign currency translation adjustments and net of tax, gains and losses on investment securities. The change in the accumulated translation adjustments for fiscal 2014 and 2013, primarily resulted from the impact of changes in the Brazilian real, the Australian dollar, the Japanese yen, and the British pound in relation to the U.S. dollar on the net assets of Legg Mason's subsidiaries in Brazil, Australia, Japan, and the U.K., for which the real, the Australian dollar, the yen, and the pound are the functional currencies, respectively. | |||||||||
A summary of Legg Mason's accumulated other comprehensive income as of March 31, 2014 and 2013, is as follows: | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | 37,835 | $ | 47,259 | |||||
Unrealized gains on investment securities, net of tax provision of $76 and $187, respectively | 114 | 280 | |||||||
Total | $ | 37,949 | $ | 47,539 | |||||
There were no significant amounts reclassified from Accumulated other comprehensive income to the Consolidated Statements of Income (Loss) for the years ended March 31, 2014, 2013 or 2012. | |||||||||
2014 | 2013 | ||||||||
Foreign currency translation adjustment | $ | 37,835 | $ | 47,259 | |||||
Unrealized gains on investment securities, net of tax provision of $76 and $187, respectively | 114 | 280 | |||||||
Total | $ | 37,949 | $ | 47,539 | |||||
Derivatives_and_Hedging_Tables
Derivatives and Hedging (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Derivative Instruments not Designated as Hedging Instruments | ' | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||
Currency forward contracts | $ | 3,271 | $ | 825 | $ | 1,496 | $ | 101 | |||||||||||||||||||
Futures and forward contracts | 313 | 1,510 | 443 | 680 | |||||||||||||||||||||||
Total | $ | 3,584 | $ | 2,335 | $ | 1,939 | $ | 781 | |||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Income Statement Classification | Gains | Losses | Gains | Losses | Gains | Losses | |||||||||||||||||||||
Currency forward contracts for: | |||||||||||||||||||||||||||
Operating activities | Other expense | $ | 7,098 | $ | (2,617 | ) | $ | 3,650 | $ | (1,858 | ) | $ | 5,604 | $ | (3,159 | ) | |||||||||||
Seed capital investments | Other non-operating income (expense) | 56 | (1,719 | ) | 1,090 | (380 | ) | 431 | (351 | ) | |||||||||||||||||
Futures and forward contracts for seed capital investments | Other non-operating income (expense) | 2,471 | (19,403 | ) | 1,914 | (5,597 | ) | 5,684 | (4,560 | ) | |||||||||||||||||
Total | $ | 9,625 | $ | (23,739 | ) | $ | 6,654 | $ | (7,835 | ) | $ | 11,719 | $ | (8,070 | ) | ||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Summary of changes in transition-related liability | ' | ||||||||||||
Severance and retention incentives | Lease loss accruals and other (1) | Total | |||||||||||
Balance as of March 31, 2011 | $ | 23,211 | $ | 5,835 | $ | 29,046 | |||||||
Accrued charges | 29,096 | 25,916 | (2) | 55,012 | |||||||||
Payments | (51,140 | ) | (16,121 | ) | (67,261 | ) | |||||||
Balance as of March 31, 2012 | 1,167 | 15,630 | 16,797 | ||||||||||
Payments and other | (1,167 | ) | (10,744 | ) | (11,911 | ) | |||||||
Balance as of March 31, 2013 | — | 4,886 | 4,886 | ||||||||||
Payments and other | — | (3,276 | ) | (3,276 | ) | ||||||||
Balance as of March 31, 2014 | $ | — | $ | 1,610 | $ | 1,610 | |||||||
-1 | Amounts related to the lease reserve liability are also included in Note 8. | ||||||||||||
-2 | Includes lease loss accruals of $17,983 for space permanently abandoned. |
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Revenues and long-lived assets by geographic region | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
OPERATING REVENUES | |||||||||||||
United States | $ | 1,874,328 | $ | 1,800,539 | $ | 1,806,990 | |||||||
United Kingdom | 436,542 | 387,966 | 448,863 | ||||||||||
Other International | 430,887 | 424,145 | 406,721 | ||||||||||
Total | $ | 2,741,757 | $ | 2,612,650 | $ | 2,662,574 | |||||||
INTANGIBLE ASSETS, NET AND GOODWILL | |||||||||||||
United States | $ | 3,127,654 | $ | 3,139,050 | $ | 3,548,628 | |||||||
United Kingdom | 879,946 | 895,767 | 1,108,297 | ||||||||||
Other International | 404,696 | 411,910 | 474,986 | ||||||||||
Total | $ | 4,412,296 | $ | 4,446,727 | $ | 5,131,911 | |||||||
Variable_Interest_Entities_and1
Variable Interest Entities and Consolidation of Investment Vehicles (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ' | ||||||||||||||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | Consolidated Totals | Balance | CIVs | Eliminations | Consolidated Totals | ||||||||||||||||||||||||||
Before | Before | ||||||||||||||||||||||||||||||||
Consolidation of CIVs | Consolidation of CIVs | ||||||||||||||||||||||||||||||||
Current assets | $ | 2,032,827 | $ | 138,537 | $ | (42,981 | ) | $ | 2,128,383 | $ | 1,908,932 | $ | 73,320 | $ | (39,390 | ) | $ | 1,942,862 | |||||||||||||||
Non-current assets | 4,950,948 | 32,018 | — | 4,982,966 | 5,115,181 | 211,617 | — | 5,326,798 | |||||||||||||||||||||||||
Total assets | $ | 6,983,775 | $ | 170,555 | $ | (42,981 | ) | $ | 7,111,349 | $ | 7,024,113 | $ | 284,937 | $ | (39,390 | ) | $ | 7,269,660 | |||||||||||||||
Current liabilities | $ | 735,737 | $ | 89,055 | $ | (3,547 | ) | $ | 821,245 | $ | 692,261 | $ | 10,539 | $ | (334 | ) | $ | 702,466 | |||||||||||||||
Long-term debt of CIVs | — | — | — | — | — | 207,835 | — | 207,835 | |||||||||||||||||||||||||
Other non-current liabilities | 1,520,236 | — | — | 1,520,236 | 1,517,069 | 2,930 | — | 1,519,999 | |||||||||||||||||||||||||
Total liabilities | 2,255,973 | 89,055 | (3,547 | ) | 2,341,481 | 2,209,330 | 221,304 | (334 | ) | 2,430,300 | |||||||||||||||||||||||
Redeemable non-controlling interests | 3,172 | 26,325 | 15,647 | 45,144 | 1,355 | — | 19,654 | 21,009 | |||||||||||||||||||||||||
Total stockholders’ equity | 4,724,630 | 55,175 | (55,081 | ) | 4,724,724 | 4,813,428 | 63,633 | (58,710 | ) | 4,818,351 | |||||||||||||||||||||||
Total liabilities and equity | $ | 6,983,775 | $ | 170,555 | $ | (42,981 | ) | $ | 7,111,349 | $ | 7,024,113 | $ | 284,937 | $ | (39,390 | ) | $ | 7,269,660 | |||||||||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Consolidating Statements of Income (Loss) | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,743,707 | $ | — | $ | (1,950 | ) | $ | 2,741,757 | ||||||||||||||||||||||||
Total operating expenses | 2,310,444 | 2,376 | (1,956 | ) | 2,310,864 | ||||||||||||||||||||||||||||
Operating income (loss) | 433,263 | (2,376 | ) | 6 | 430,893 | ||||||||||||||||||||||||||||
Total other non-operating income (expense) | (10,333 | ) | 2,445 | (3,364 | ) | (11,252 | ) | ||||||||||||||||||||||||||
Income before income tax provision (benefit) | 422,930 | 69 | (3,358 | ) | 419,641 | ||||||||||||||||||||||||||||
Income tax provision (benefit) | 137,805 | — | — | 137,805 | |||||||||||||||||||||||||||||
Net income | 285,125 | 69 | (3,358 | ) | 281,836 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 341 | — | (3,289 | ) | (2,948 | ) | |||||||||||||||||||||||||||
Net income attributable to Legg Mason, Inc. | $ | 284,784 | $ | 69 | $ | (69 | ) | $ | 284,784 | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-13 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,615,047 | $ | — | $ | (2,397 | ) | $ | 2,612,650 | ||||||||||||||||||||||||
Total operating expenses | 3,046,587 | 2,965 | (2,403 | ) | 3,047,149 | ||||||||||||||||||||||||||||
Operating income (loss) | (431,540 | ) | (2,965 | ) | 6 | (434,499 | ) | ||||||||||||||||||||||||||
Total other non-operating income (expense) | (72,177 | ) | (2,864 | ) | (1,067 | ) | (76,108 | ) | |||||||||||||||||||||||||
Income (loss) before income tax provision (benefit) | (503,717 | ) | (5,829 | ) | (1,061 | ) | (510,607 | ) | |||||||||||||||||||||||||
Income tax provision (benefit) | (150,859 | ) | — | — | (150,859 | ) | |||||||||||||||||||||||||||
Net income (loss) | (352,858 | ) | (5,829 | ) | (1,061 | ) | (359,748 | ) | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 469 | — | (6,890 | ) | (6,421 | ) | |||||||||||||||||||||||||||
Net income (loss) attributable to Legg Mason, Inc. | $ | (353,327 | ) | $ | (5,829 | ) | $ | 5,829 | $ | (353,327 | ) | ||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Mar-12 | |||||||||||||||||||||||||||||||||
Balance | CIVs | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Before | |||||||||||||||||||||||||||||||||
Consolidation of CIVs | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,665,668 | $ | — | $ | (3,094 | ) | $ | 2,662,574 | ||||||||||||||||||||||||
Total operating expenses | 2,323,213 | 3,709 | (3,101 | ) | 2,323,821 | ||||||||||||||||||||||||||||
Operating income (loss) | 342,455 | (3,709 | ) | 7 | 338,753 | ||||||||||||||||||||||||||||
Total other non-operating income (expense) | (49,236 | ) | 18,336 | (4,770 | ) | (35,670 | ) | ||||||||||||||||||||||||||
Income (loss) before income tax provision (benefit) | 293,219 | 14,627 | (4,763 | ) | 303,083 | ||||||||||||||||||||||||||||
Income tax provision (benefit) | 72,052 | — | — | 72,052 | |||||||||||||||||||||||||||||
Net income (loss) | 221,167 | 14,627 | (4,763 | ) | 231,031 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 350 | — | 9,864 | 10,214 | |||||||||||||||||||||||||||||
Net income (loss) attributable to Legg Mason, Inc. | $ | 220,817 | $ | 14,627 | $ | (14,627 | ) | $ | 220,817 | ||||||||||||||||||||||||
Consolidated Investment Vehicles [Member] | ' | ||||||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Value as of March 31, 2014 | ||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Trading investments: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 1,110 | $ | 3,941 | $ | 17,888 | $ | 22,939 | |||||||||||||||||||||||||
Proprietary Funds | 27,524 | — | — | $ | 27,524 | ||||||||||||||||||||||||||||
Total trading investments | 28,634 | 3,941 | 17,888 | 50,463 | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||
Private equity funds | — | — | 31,810 | 31,810 | |||||||||||||||||||||||||||||
$ | 28,634 | $ | 3,941 | $ | 49,698 | $ | 82,273 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | — | $ | — | $ | (79,179 | ) | $ | (79,179 | ) | |||||||||||||||||||||||
Derivative liabilities | — | (1,888 | ) | — | (1,888 | ) | |||||||||||||||||||||||||||
$ | — | $ | (1,888 | ) | $ | (79,179 | ) | $ | (81,067 | ) | |||||||||||||||||||||||
Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | Value as of March 31, 2013 | ||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Trading investments: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 2,076 | $ | 3,268 | $ | 19,448 | $ | 24,792 | |||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||
CLO loans | — | 172,519 | — | 172,519 | |||||||||||||||||||||||||||||
CLO bonds | — | 11,052 | — | 11,052 | |||||||||||||||||||||||||||||
Private equity funds | — | — | 26,982 | 26,982 | |||||||||||||||||||||||||||||
Total investments | — | 183,571 | 26,982 | 210,553 | |||||||||||||||||||||||||||||
$ | 2,076 | $ | 186,839 | $ | 46,430 | $ | 235,345 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | — | $ | — | $ | (207,835 | ) | $ | (207,835 | ) | |||||||||||||||||||||||
Derivative liabilities | — | (2,930 | ) | — | (2,930 | ) | |||||||||||||||||||||||||||
$ | — | $ | (2,930 | ) | $ | (207,835 | ) | $ | (210,765 | ) | |||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Value as of March 31, 2013 | Valuation technique | Unobservable input | Range (weighted-average) | ||||||||||||||||||||||||||||||
$ | (207,835 | ) | Discounted cash flow | Discount rate | 1.1 | % | - | 11 | % | -2.30% | |||||||||||||||||||||||
Default rate | 3 | % | - | 4 | % | -3.50% | |||||||||||||||||||||||||||
Constant prepayment rate | 25 | % | |||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring Basis, Unobservable Input, Reconciliation [Table Text Block] [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Value as of March 31, 2013 | Purchases | Sales | Settlements / Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2014 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 19,448 | $ | 3,516 | $ | (8,037 | ) | $ | — | $ | — | $ | 2,961 | $ | 17,888 | ||||||||||||||||||
Private equity funds | 26,982 | 1,811 | — | — | — | 3,017 | 31,810 | ||||||||||||||||||||||||||
$ | 46,430 | $ | 5,327 | $ | (8,037 | ) | $ | — | $ | — | $ | 5,978 | $ | 49,698 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | (207,835 | ) | $ | — | $ | — | $ | 133,047 | $ | — | $ | (4,391 | ) | $ | (79,179 | ) | ||||||||||||||||
Total realized and unrealized gains (losses), net | $ | 1,587 | |||||||||||||||||||||||||||||||
Value as of March 31, 2012 | Purchases | Sales | Settlements / Other | Transfers | Realized and unrealized gains/(losses), net | Value as of March 31, 2013 | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 24,116 | $ | 1,980 | $ | (6,602 | ) | $ | — | $ | — | $ | (46 | ) | $ | 19,448 | |||||||||||||||||
Private equity funds | 25,071 | 2,622 | (2,030 | ) | — | — | 1,319 | 26,982 | |||||||||||||||||||||||||
$ | 49,187 | $ | 4,602 | $ | (8,632 | ) | $ | — | $ | — | $ | 1,273 | $ | 46,430 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
CLO debt | $ | (271,707 | ) | $ | — | $ | — | $ | 75,798 | $ | — | $ | (11,926 | ) | $ | (207,835 | ) | ||||||||||||||||
Total realized and unrealized gains (losses), net | $ | (10,653 | ) | ||||||||||||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Fair Value Determined | As of March 31, 2014 | ||||||||||||||||||||||||||||||||
Using NAV | |||||||||||||||||||||||||||||||||
Category of Investment | Investment Strategy | 31-Mar-14 | 31-Mar-13 | Unfunded Commitments | Remaining Term | ||||||||||||||||||||||||||||
Hedge funds | Global macro, fixed income, long/short equity, systematic, emerging market, U.S. and European hedge | $ | 22,939 | (1) | $ | 24,792 | (2) | n/a | n/a | ||||||||||||||||||||||||
Private equity funds | Long/short equity | 31,810 | (3) | 26,982 | (3) | $ | 2,707 | 4 years | |||||||||||||||||||||||||
Total | $ | 54,749 | $ | 51,774 | $ | 2,707 | |||||||||||||||||||||||||||
n/a – not applicable | |||||||||||||||||||||||||||||||||
-1 | 10% daily redemption; 6% monthly redemption; 2% quarterly redemption; and 82% are subject to three to five year lock-up or side pocket provisions. | ||||||||||||||||||||||||||||||||
-2 | 11% daily redemption; 8% monthly redemption; 2% quarterly redemption; and 79% are subject to three to five year lock-up or side pocket provisions. | ||||||||||||||||||||||||||||||||
-3 | Liquidations are expected over the remaining term. | ||||||||||||||||||||||||||||||||
Fair Value, Option, Quantitative Disclosures | ' | ||||||||||||||||||||||||||||||||
The following table presents the fair value and unpaid principal balance of CLO loans, bonds and debt carried at fair value under the fair value option as of March 31, 2014 and March 31, 2013: | |||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||
CLO loans and bonds | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | — | $ | 186,839 | |||||||||||||||||||||||||||||
Unpaid principal balance in excess of fair value | — | (3,268 | ) | ||||||||||||||||||||||||||||||
Fair value | $ | — | $ | 183,571 | |||||||||||||||||||||||||||||
CLO debt | |||||||||||||||||||||||||||||||||
Principal amounts outstanding | $ | 92,114 | $ | 225,161 | |||||||||||||||||||||||||||||
Excess unpaid principal over fair value | (12,935 | ) | (17,326 | ) | |||||||||||||||||||||||||||||
Fair value | $ | 79,179 | $ | 207,835 | |||||||||||||||||||||||||||||
Legg Mason, Inc | ' | ||||||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of March 31, 2013 | ||||||||||||||||||||||||||||||||
Equity Interests | Maximum | Equity Interests | Maximum | ||||||||||||||||||||||||||||||
on the | Risk of Loss (2) | on the | Risk of Loss (2) | ||||||||||||||||||||||||||||||
Consolidated | Consolidated | ||||||||||||||||||||||||||||||||
Balance Sheet (1) | Balance Sheet (1) | ||||||||||||||||||||||||||||||||
CLOs | $ | — | $ | 911 | $ | — | $ | 496 | |||||||||||||||||||||||||
Real Estate Investment Trust | 1,442 | 3,715 | 989 | 2,644 | |||||||||||||||||||||||||||||
Other sponsored investment funds | 34,126 | 78,521 | 43,104 | 87,121 | |||||||||||||||||||||||||||||
Total | $ | 35,568 | $ | 83,147 | $ | 44,093 | $ | 90,261 | |||||||||||||||||||||||||
-1 | Includes $23,404 and $33,918 related to investments in proprietary funds products as of March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
-2 | Includes equity investments the Company has made or is required to make and any earned but uncollected management fees. |
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA | ' | ' | ||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||
Fiscal 2014(1) | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | Fiscal 2013(1) | Mar. 31 | Dec. 31 | Sept. 30 | 30-Jun | |||||||||||||||||||||||||
Operating Revenues | $ | 681,396 | $ | 720,092 | $ | 669,852 | $ | 670,417 | Operating Revenues | $ | 667,763 | $ | 673,900 | $ | 640,295 | $ | 630,692 | |||||||||||||||||
Operating Expenses | 562,055 | 598,440 | 563,486 | 586,883 | Operating Expenses | 624,750 | 1,307,223 | 560,561 | 554,615 | |||||||||||||||||||||||||
Operating Income | 119,341 | 121,652 | 106,366 | 83,534 | Operating Income (Loss) | 43,013 | (633,323 | ) | 79,734 | 76,077 | ||||||||||||||||||||||||
Other Non-Operating Income (Expense) | (7,393 | ) | 4,303 | 485 | (8,647 | ) | Other Non-Operating Income (Expense) | 5,633 | (5,441 | ) | 17,758 | (94,058 | ) | |||||||||||||||||||||
Income before Income Tax Provision | 111,948 | 125,955 | 106,851 | 74,887 | Income (Loss) before Income Tax Provision (Benefit) | 48,646 | (638,764 | ) | 97,492 | (17,981 | ) | |||||||||||||||||||||||
Income tax provision | 46,856 | 46,004 | 19,153 | 25,792 | Income tax provision (benefit) | 17,955 | (180,214 | ) | 16,397 | (4,997 | ) | |||||||||||||||||||||||
Net Income | 65,092 | 79,951 | 87,698 | 49,095 | Net Income (Loss) | 30,691 | (458,550 | ) | 81,095 | (12,984 | ) | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (3,855 | ) | (1,783 | ) | 1,410 | 1,280 | Less: Net income (loss) attributable to noncontrolling interests | 1,487 | (4,680 | ) | 298 | (3,526 | ) | |||||||||||||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 68,947 | $ | 81,734 | $ | 86,288 | $ | 47,815 | Net Income (Loss) Attributable to Legg Mason, Inc. | $ | 29,204 | $ | (453,870 | ) | $ | 80,797 | $ | (9,458 | ) | |||||||||||||||
Net Income per share Attributable to Legg Mason, Inc. common shareholders: | Net Income (Loss) per share Attributable to Legg Mason, Inc. common shareholders: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.68 | $ | 0.7 | $ | 0.38 | Basic | $ | 0.23 | $ | (3.45 | ) | $ | 0.6 | $ | (0.07 | ) | |||||||||||||||
Diluted | 0.58 | 0.67 | 0.7 | 0.38 | Diluted | 0.23 | (3.45 | ) | 0.6 | (0.07 | ) | |||||||||||||||||||||||
Cash dividend per share | 0.13 | 0.13 | 0.13 | 0.13 | Cash dividend per share | 0.11 | 0.11 | 0.11 | 0.11 | |||||||||||||||||||||||||
Stock price range: | Stock price range: | |||||||||||||||||||||||||||||||||
High | 49.5 | 44.09 | 35.85 | 37.04 | High | 32.59 | 26.63 | 27.14 | 28.47 | |||||||||||||||||||||||||
Low | 39.6 | 32.44 | 30.28 | 29.28 | Low | 25.43 | 23.88 | 23.31 | 22.36 | |||||||||||||||||||||||||
Assets Under Management (in millions): | Assets Under Management (in millions): | |||||||||||||||||||||||||||||||||
End of period | $ | 701,774 | $ | 679,475 | $ | 656,023 | $ | 644,511 | End of period | $ | 664,609 | $ | 648,879 | $ | 650,700 | $ | 631,823 | |||||||||||||||||
Average | 689,003 | 670,019 | 650,428 | 654,737 | Average | 657,357 | 648,354 | 639,389 | 635,463 | |||||||||||||||||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ' | ' |
Investment in Proprietary Fund Products, Initial Investment | ' | 100.00% |
Employee Owned Funds | ' | 16 |
Investment in Consolidated Sponsored Investment Funds | $39,056 | $39,434 |
Cash and Cash Equivalents, Maturity Period | 90 | ' |
Threshold for Equity Method Accounting, Proprietary Fund Products, Low End | ' | 20.00% |
Threshold for Equity Method Accounting, Proprietary Fund Products, High End | ' | 50.00% |
Threshold for Equity Method Accounting, Partnership and Limited Liability Company Investments | ' | 3.00% |
Long-term Debt, Fair Value | $1,206,166 | $1,135,103 |
Significant_Accounting_Policie4
Significant Accounting Policies Fixed Assets (Details) | 12 Months Ended |
Mar. 31, 2014 | |
Equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '8 years 0 days |
Equipment | Minimum | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '3 years 0 days |
Software and Software Development Costs | ' |
Property, Plant and Equipment | ' |
Property, Plant and Equipment, Useful Life | '3 years 0 days |
Significant_Accounting_Policie5
Significant Accounting Policies Deferred Sales Commissions (Details 1) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Significant Accounting Policies [Line Items] | ' | ' |
Deferred Sales Commission | $8,031 | $8,259 |
Maximum | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' |
Deferred Sales Commissions, Amortization Period | '6 years 0 days | ' |
Significant_Accounting_Policie6
Significant Accounting Policies MEP Details (Details) | 12 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Profits interests equity plan participation percentage | 15.00% |
Annual Vesting Percentage | 20.00% |
Vesting period | '5 years |
Significant_Accounting_Policie7
Significant Accounting Policies (Details 2) (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | $1,881 | $971 | $8,915 |
Net Income (loss) attributable to Noncontrolling Interest | -2,948 | -6,421 | 10,214 |
Appropriated Retained Earnings of Consolidated Investment Vehicles [Member] | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Net income (loss) reclassified to Appropriated retained earnings for consolidated investment vehicles | ($4,829) | ($7,392) | $1,299 |
Significant_Accounting_Policie8
Significant Accounting Policies (Details 3) (Consolidated Legg Mason, Inc., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Legg Mason, Inc. | ' | ' | ' |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' |
Balance, beginning of period | $21,009 | $24,031 | $36,712 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 1,881 | 971 | 8,915 |
Net (redemptions/distributions paid to)/subscriptions received from noncontrolling interest holders | 20,438 | -3,993 | -21,596 |
Management equity plan interests | 1,816 | 0 | 0 |
Balance, end of period | $45,144 | $21,009 | $24,031 |
Acquisitions_Acquisitions_Deta
Acquisitions Acquisitions (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 13, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' | |
Business Acquisition, Contingent Consideration, Potential Cash Payment | ($29,553) | ($21,900) | [1] | ' |
Fauchier [Member] | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | |
Assets Under Management | ' | ' | 5,400,000 | |
Business Combination, Consideration Transferred | ' | 63,433 | ' | |
Amortizable asset management contracts, weighted average useful life | '6 years | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 7,653 | ' | ' | |
Business Acquisition, Contingent Consideration, Potential Cash Payment | ' | ' | 21,566 | |
Contingent Payment Due on Fourth Anniversary of Acquisition [Member] | Fauchier [Member] | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 33,000 | ' | ' | |
Contingent Payment Due on Second Anniversary of Acquisition [Member] | Fauchier [Member] | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 25,000 | ' | ' | |
Estimate of Fair Value Measurement [Member] | Fauchier [Member] | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | |
Business Combination, Contingent Consideration, Liability Fair Value Adjustment | 5,000 | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,653 | ' | ' | |
Business Acquisition, Contingent Consideration, Potential Cash Payment | $29,553 | ' | $21,566 | |
[1] | See Note 2. |
Acquisitions_Assets_Acquired_a
Acquisitions Assets Acquired and Liabilities Assumed in Transactions (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 13, 2013 | |
In Thousands, unless otherwise specified | Fauchier [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | ' | ' | $8,156 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | ' | ' | 12,174 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | ' | 2,865 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | ' | ' | 65,126 | |
Goodwill | ' | ' | 28,983 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | ' | ' | -16,667 | |
Business Combination, Contingent Consideration, Liability | 29,553 | 21,900 | [1] | -21,566 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | ' | ' | -15,638 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ' | ' | $63,433 | |
[1] | See Note 2. |
Acquisitions_Acquisition_Proje
Acquisitions Acquisition Projection Inputs (Details 3) (Fauchier [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Operating Revenues | 72,088 | ' |
Fair Value, Inputs, Level 3 [Member] | Fund management contracts [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Projected Cash Flow Growth Rate, Low End of Range | ' | -35.00% |
Projected Cash Flow Growth Rate, High End of Range | ' | 11.00% |
Projected Cash Flow Growth Rate, Average | ' | 6.00% |
Discount rate | ' | 16.00% |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Projected Cash Flow Growth Rate, Low End of Range | 0.00% | -16.00% |
Projected Cash Flow Growth Rate, High End of Range | 8.00% | 3.00% |
Projected Cash Flow Growth Rate, Average | 2.00% | -5.00% |
Discount rate | 2.70% | 2.00% |
Acquisitions_Acquisitions_Deta1
Acquisitions Acquisitions (Details 4) (USD $) | 24 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
QS Investors [Domain] | Contingent Payment Due on Second Anniversary of Acquisition [Member] | Contingent Payment Due on Fourth Anniversary of Acquisition [Member] | |||||
QS Investors [Domain] | QS Investors [Domain] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | |
Assets under Management, Carrying Amount | ' | ' | ' | $5,000,000 | ' | ' | |
Assets Under Advisement, Carrying Amount | ' | ' | ' | 100,000,000 | ' | ' | |
Payments to Acquire Business, Gross, Expected | ' | ' | ' | 11,000 | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | 10,000 | 20,000 | |
Business Combination, Contingent Consideration, Liability | ' | -29,553 | -21,900 | [1] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | 35,000 | ' | ' | |
Restructuring and Related Cost, Cost Incurred to Date | $127,500 | ' | ' | $2,500 | ' | ' | |
[1] | See Note 2. |
Fair_Values_of_Assets_and_Liab2
Fair Values of Assets and Liabilities Schedule of Trading Investments (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||
Schedule of Investments [Line Items] | ' | ' | ' | ||
Short-term Investments | $467,726 | $371,080 | ' | ||
Available-for-sale Securities | 12,072 | 12,400 | [1] | ' | |
Other Investments | 90 | [2] | 99 | [2] | ' |
Investments | 479,888 | 383,579 | ' | ||
Net Realized and Unrealized Gain (Loss) on Trading Securities | 22,963 | 18,260 | -6,063 | ||
Available-for-sale Securities, Gross Unrealized Gain | 203 | 230 | ' | ||
Available-for-sale Securities, Gross Unrealized Loss | -451 | -188 | ' | ||
Proceeds from Sale of Available-for-sale Securities | 4,306 | 5,272 | 6,197 | ||
Available-for-sale Securities, Gross Realized Gains | 0 | 22 | 6 | ||
Available-for-sale Securities, Gross Realized Losses | -29 | -43 | -25 | ||
Held-to-maturity Securities | $0 | $0 | $0 | ||
[1] | Amounts are included in Other non-current assets on the Consolidated Balance Sheets for each of the periods presented. | ||||
[2] | Includes investments in private equity securities that do not have readily determinable fair values. |
Fair_Values_of_Assets_and_Liab3
Fair Values of Assets and Liabilities (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | $456,631 | $485,776 | ||
Time deposits and other | 106,226 | 177,471 | ||
Total cash equivalents | 562,857 | 663,247 | ||
Current Investments | ' | ' | ||
Short-term Investments | 467,726 | 371,080 | ||
Available-for-sale Securities | 12,072 | 12,400 | [1] | |
Investments in partnerships, LLCs and other | 24,464 | 31,143 | [1] | |
Derivative Asset | ' | ' | ||
Currency and market hedges | 3,584 | 1,939 | ||
Other Investments | 90 | [2] | 99 | [2] |
Assets, Fair Value Disclosure | 1,133,766 | 1,148,688 | ||
Liabilities | ' | ' | ||
Business Combination, Contingent Consideration, Liability | -29,553 | -21,900 | [3] | |
Derivative Liability [Abstract] | ' | ' | ||
Derivative Liabilities | -2,335 | -781 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | -31,888 | -22,681 | ||
Proprietary Fund Products Equity Securities | 53.00% | 49.00% | ||
Proprietary Fund Products Debt Securities | 47.00% | 51.00% | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 456,631 | 485,776 | ||
Time deposits and other | 0 | 0 | ||
Total cash equivalents | 456,631 | 485,776 | ||
Current Investments | ' | ' | ||
Short-term Investments | 378,396 | 258,029 | ||
Available-for-sale Securities | 2,048 | 2,034 | [1] | |
Investments in partnerships, LLCs and other | 0 | 761 | [1] | |
Derivative Asset | ' | ' | ||
Currency and market hedges | 3,584 | 1,939 | ||
Other Investments | 0 | 0 | ||
Assets, Fair Value Disclosure | 840,659 | 750,057 | ||
Liabilities | ' | ' | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | [3] | |
Derivative Liability [Abstract] | ' | ' | ||
Derivative Liabilities | -2,335 | -781 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | -2,335 | -781 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 0 | 0 | ||
Time deposits and other | 106,226 | 177,471 | ||
Total cash equivalents | 106,226 | 177,471 | ||
Current Investments | ' | ' | ||
Short-term Investments | 89,140 | 112,805 | ||
Available-for-sale Securities | 10,024 | 10,354 | [1] | |
Investments in partnerships, LLCs and other | 2,878 | 2,620 | [1] | |
Derivative Asset | ' | ' | ||
Currency and market hedges | 0 | 0 | ||
Other Investments | 0 | 0 | ||
Assets, Fair Value Disclosure | 208,268 | 304,174 | ||
Liabilities | ' | ' | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | [3] | |
Derivative Liability [Abstract] | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 0 | 0 | ||
Time deposits and other | 0 | 0 | ||
Total cash equivalents | 0 | 0 | ||
Current Investments | ' | ' | ||
Short-term Investments | 190 | 246 | ||
Available-for-sale Securities | 0 | 12 | [1] | |
Investments in partnerships, LLCs and other | 21,586 | 27,762 | [1] | |
Derivative Asset | ' | ' | ||
Currency and market hedges | 0 | 0 | ||
Other Investments | 90 | 99 | ||
Assets, Fair Value Disclosure | 84,839 | 94,457 | ||
Liabilities | ' | ' | ||
Business Combination, Contingent Consideration, Liability | -29,553 | -21,900 | [3] | |
Derivative Liability [Abstract] | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | -29,553 | -21,900 | ||
Long Term Incentive Compensation Plans [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 109,648 | 86,583 | [4] | |
Long Term Incentive Compensation Plans [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 109,648 | 86,583 | [4] | |
Long Term Incentive Compensation Plans [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 0 | 0 | [4] | |
Equity method investments | 14,125 | 43,741 | ||
Long Term Incentive Compensation Plans [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 0 | 0 | [4] | |
Proprietary Fund Product And Other Investments [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 335,456 | 228,156 | [5] | |
Proprietary Fund Product And Other Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 260,251 | 158,846 | [5] | |
Equity method investments | 8,497 | 12,600 | ||
Proprietary Fund Product And Other Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 75,015 | 69,064 | [5] | |
Proprietary Fund Product And Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Trading Securities | 190 | 246 | [5] | |
Equity Method Investments Related To Long Term Incentive Compensation Plans Proprietary Fund Products And Other Investments [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 22,622 | 56,341 | [6],[7] | |
Equity Method Investments Related To Long Term Incentive Compensation Plans Proprietary Fund Products And Other Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 8,497 | 12,600 | [6],[7] | |
Equity Method Investments Related To Long Term Incentive Compensation Plans Proprietary Fund Products And Other Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 14,125 | 43,741 | [6],[7] | |
Equity Method Investments Related To Long Term Incentive Compensation Plans Proprietary Fund Products And Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 0 | 0 | [6],[7] | |
Equity Method Investments In Partnerships And LLCs [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 62,973 | 68,780 | ||
Equity Method Investments In Partnerships And LLCs [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 0 | 1,518 | ||
Equity Method Investments In Partnerships And LLCs [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | 0 | 924 | ||
Equity Method Investments In Partnerships And LLCs [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Current Investments | ' | ' | ||
Equity method investments | $62,973 | $66,338 | ||
[1] | Amounts are included in Other non-current assets on the Consolidated Balance Sheets for each of the periods presented. | |||
[2] | Includes investments in private equity securities that do not have readily determinable fair values. | |||
[3] | See Note 2. | |||
[4] | Primarily mutual funds where there is minimal market risk to the Company as any change in value is primarily offset by an adjustment to compensation expense and related deferred compensation liability. | |||
[5] | Trading investments of proprietary fund products and other trading investments consist of approximately 53% and 47% in equity and debt securities, respectively, as of March 31, 2014, and approximately 49% and 51% in equity and debt securities, respectively, as of March 31, 2013. | |||
[6] | Substantially all of Legg Mason's equity method investments are investment companies which record their underlying investments at fair value. Fair value is measured using Legg Mason's share of the investee's underlying net income or loss, which is predominately representative of fair value adjustments in the investments held by the equity method investee. | |||
[7] | Includes investments under the equity method (which approximate fair value) relating to long-term incentive compensation plans of $14,125 and $43,741 as of March 31, 2014 and 2013, respectively, and proprietary fund products and other investments of $8,497 and $12,600 as of March 31, 2014 and 2013, respectively, which are classified as Investment securities on the Consolidated Balance Sheets. |
Fair_Values_of_Assets_and_Liab4
Fair Values of Assets and Liabilities Fair Values of Assets and Liabilities (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Investment in Proprietary Fund Products | $405,918 | $304,713 |
Number of Proprietary Fund Products with Seed Capital Investment in Excess of One Million Dollars | 46 | 39 |
Minimum value of seed investment included in count of funds with corporate investment | $1,000 | ' |
Percentage of Investments In Proprietary Fund Products In Excess of Threshold | 90.00% | ' |
Fair_Values_of_Assets_and_Liab5
Fair Values of Assets and Liabilities (Details 3) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | $94,457,000 | $207,103,000 |
Purchases | 5,155,000 | 3,073,000 |
Sales | -1,493,000 | -3,238,000 |
Redemptions/Settlements/Other | -14,204,000 | -130,130,000 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 924,000 | 17,649,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 84,839,000 | 94,457,000 |
Unrealized Gains (Losses) Relating to Fair Value Measurements Using Unobservable Inputs Assets and Liabilities Still Held at Reporting Date | -5,210,000 | -1,229,000 |
Legg Mason, Inc | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Other Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 111,000 | 124,000 |
Purchases | 0 | 0 |
Sales | -12,000 | 0 |
Redemptions/Settlements/Other | 0 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | -9,000 | -13,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 90,000 | 111,000 |
Proprietary Fund Product And Other Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 246,000 | 0 |
Purchases | 1,000 | 246,000 |
Sales | 0 | 0 |
Redemptions/Settlements/Other | -77,000 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 20,000 | 0 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 190,000 | 246,000 |
Equity Method Investments In Proprietary Fund Products [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | ' | 11,778,000 |
Purchases | ' | 0 |
Sales | ' | 0 |
Redemptions/Settlements/Other | ' | -11,705,000 |
Transfers, Net | ' | 0 |
Realized and unrealized gains/(losses), net | ' | -73,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | ' | 0 |
Investment In Partnerships And Limited Liability Companies [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 27,762,000 | 28,763,000 |
Purchases | 0 | 0 |
Sales | -731,000 | -970,000 |
Redemptions/Settlements/Other | -4,869,000 | -1,014,000 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | -576,000 | 983,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 21,586,000 | 27,762,000 |
Equity Method Investments In Partnerships And LLCs [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 66,338,000 | 166,438,000 |
Purchases | 5,154,000 | 2,827,000 |
Sales | -750,000 | -2,268,000 |
Redemptions/Settlements/Other | -9,258,000 | -117,411,000 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 1,489,000 | 16,752,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 62,973,000 | 66,338,000 |
Contingent Consideration Liability [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Liabilities measured at fair value using significant unobservable inputs, value at beginning of period | -21,900,000 | 0 |
Purchases | 0 | -21,566,000 |
Sales | 0 | 0 |
Redemptions/Settlements/Other | 0 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | -7,653,000 | -334,000 |
Liabilities measured at fair value using significant unobservable inputs, value at end of period | ($29,553,000) | ($21,900,000) |
Fair_Values_of_Assets_and_Liab6
Fair Values of Assets and Liabilities (Details 4) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | $79,425 | [1] | $89,698 | [1] |
Unfunded Commitments | 25,575 | ' | ||
Assets valued using net asset value as practical expedient - Level 2 | 31.00% | 32.00% | ||
Assets at fair value using net asset as practical expedient - Level 3 | 69.00% | 68.00% | ||
Funds-Of-Hedge Funds [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 34,771 | [2] | 38,811 | [2] |
Percentage of Monthly Redemption | 40.00% | 49.00% | ||
Percentage of Quarterly Redemption | 60.00% | 51.00% | ||
Hedge Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 19,461 | 24,716 | ||
Unfunded Commitments | 20,000 | ' | ||
Private Equity Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 22,759 | [3] | 23,763 | [3] |
Unfunded Commitments | 5,575 | ' | ||
Investments Remaining Term, High End of Range | '9 years 0 days | ' | ||
Other Investments [Member] | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | $2,434 | [4] | $2,408 | [4] |
Percentage of Redemption, Investment Funds, With Less Than One Year | 10.00% | ' | ||
Percentage of Investment of 19 Year Redemption | 90.00% | ' | ||
Investments Remaining Term, Category One | '1 year 0 months | ' | ||
Investments Remaining Term, Category Two | '19 years 0 months | ' | ||
[1] | Comprised of approximately 31% and 69% of Level 2 and Level 3 assets, respectively, as of March 31, 2014 and 32% and 68% of Level 2 and Level 3 assets, respectively, as of March 31, 2013. | |||
[2] | 40% monthly redemption and 60% quarterly redemption as of March 31, 2014. 49% monthly redemption and 51% quarterly redemption as of March 31, 2013. Any remaining lockup expired in June 2013. | |||
[3] | Liquidations are expected over the remaining term. | |||
[4] | Of this balance, 10% has a remaining term of less than one year and 90% has a remaining term of 19 years. |
Schedule_of_Fixed_Assets_Detai
Schedule of Fixed Assets (Details) (Legg Mason, Inc, USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed assets: | ' | ' |
Total cost | $606,778 | $602,064 |
Less: accumulated depreciation and amortization | -417,537 | -400,245 |
Fixed assets, net | 189,241 | 201,819 |
Equipment | ' | ' |
Fixed assets: | ' | ' |
Total cost | 147,663 | 152,065 |
Software and Software Development Costs | ' | ' |
Fixed assets: | ' | ' |
Total cost | 249,368 | 227,739 |
Leasehold improvements | ' | ' |
Fixed assets: | ' | ' |
Total cost | $209,747 | $222,260 |
Fixed_Assets_Depreciation_and_
Fixed Assets Depreciation and Amortization Expense (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation and amortization expense included in operating income | $50,531 | $73,829 | $74,221 |
Accelerated Depreciation, Other | 2,542 | 21,020 | ' |
Restructuring and Related Cost, Accelerated Depreciation | ' | ' | $10,256 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Indefinite-life intangible assets | $3,155,235 | $3,161,804 |
Trade Names | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Indefinite-life intangible assets | 52,800 | 52,800 |
Number of impairments | 1 | ' |
Other Fund Management Contracts [Member] | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Indefinite-life intangible assets | 303,951 | 304,549 |
Permal/Fauchier Funds-Of-Hedge Fund Management Contracts | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Indefinite-life intangible assets | 692,133 | 698,104 |
Number of impairments | 1 | ' |
U.S. Domestic Mutual Fund Management Contracts | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Indefinite-life intangible assets | 2,106,351 | 2,106,351 |
Number of impairments | 1 | ' |
Asset Management Contracts | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Cost | 208,651 | 207,224 |
Accumulated amortization | -186,324 | -197,255 |
Total | 22,327 | 9,969 |
Legg Mason, Inc | ' | ' |
Finite-Lived and Indefinite-lived Intangible Assets | ' | ' |
Intangible assets, net | $3,177,562 | $3,171,773 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill Inputs used to determine Fair Value of Intangibles (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $734,000 |
U.S. Domestic Mutual Fund Management Contracts | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 396,000 |
U.S. Domestic Mutual Fund Management Contracts | Legg Mason, Inc | Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Projected Cash Flow Growth Rate, Average | 6.00% |
Projected Cash Flow Growth Rate, Low End of Range | 3.00% |
Projected Cash Flow Growth Rate, High End of Range | 9.00% |
Discount rate | 14.50% |
Permal funds-Of-Hedge Fund Management Contracts | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 321,000 |
Permal funds-Of-Hedge Fund Management Contracts | Fauchier [Member] | Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Projected Cash Flow Growth Rate, Average | 8.00% |
Projected Cash Flow Growth Rate, Low End of Range | -1.00% |
Projected Cash Flow Growth Rate, High End of Range | 17.00% |
Discount rate | 16.00% |
Permal trade names | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $17,000 |
Schedule_of_Remaining_Intangib
Schedule of Remaining Intangible Amortization (Details 3) (Asset Management Contracts, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Asset Management Contracts | ' | ' |
Finite-Lived Intangible Assets Future Amortization Expense [Line Items] | ' | ' |
2015 | $3,381 | ' |
2016 | 3,145 | ' |
2017 | 2,479 | ' |
2018 | 482 | ' |
2019 | 482 | ' |
Thereafter | 0 | ' |
Total | $9,969 | $22,327 |
Finite-Lived Intangible Asset, Useful Life | '3 years 73 days | ' |
Schedule_of_Goodwill_Carrying_
Schedule of Goodwill Carrying Value Rollfoward (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Goodwill Gross Value [Member] | ' | ' | ' |
Goodwill | ' | ' | ' |
Goodwill, Gross | $2,402,423 | $2,431,065 | $2,436,945 |
Goodwill, Subsequent Recognition of Deferred Tax Asset | -21,675 | -21,573 | ' |
Goodwill, Acquired During Period | ' | 28,983 | ' |
Goodwill, Other Changes, Including Foreign Exchange Rates | -6,967 | -13,290 | ' |
Goodwill Accumulated Impairment [Member] | ' | ' | ' |
Goodwill | ' | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | -1,161,900 | -1,161,900 | -1,161,900 |
Goodwill, Subsequent Recognition of Deferred Tax Asset | 0 | 0 | ' |
Goodwill, Acquired During Period | ' | 0 | ' |
Goodwill, Other Changes, Including Foreign Exchange Rates | 0 | 0 | ' |
Goodwill Net Value [Member] | ' | ' | ' |
Goodwill | ' | ' | ' |
Goodwill | 1,240,523 | 1,269,165 | 1,275,045 |
Goodwill, Subsequent Recognition of Deferred Tax Asset | -21,675 | -21,573 | ' |
Goodwill, Acquired During Period | ' | 28,983 | ' |
Goodwill, Other Changes, Including Foreign Exchange Rates | ($6,967) | ($13,290) | ' |
ShortTerm_Borrowings_and_LongT2
Short-Term Borrowings and Long-Term Debt Details on Revolving Credit Facility (Details) (USD $) | Mar. 31, 2014 | Jun. 27, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2013 | Jun. 27, 2012 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Five-year term loan [Member] | ||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | $750,000 | ' | $500,000 | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 250,000 | ' | 500,000 | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
Line of Credit Facility, Repayment of Borrowings | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | 0.20% | ' | ' | ' | ' | ' | ' |
Maximum Net Debt to Earnings before Interest Taxes Depreciation and Amortization, Ratio | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' |
Minimum Earnings before Interest Taxes Depreciation and Amortization to Interest, Ratio | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Debt to Earnings before Interest Taxes Depreciation and Amortization, Ratio | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings before Interest Taxes Depreciation and Amortization to Interest Expense, Ratio | 12.5 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | $0 | ' | $0 | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' |
ShortTerm_Borrowings_and_LongT3
Short-Term Borrowings and Long-Term Debt Schedule of Accreted Value of Long-term Debt (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | 21-May-12 | Mar. 31, 2014 | Jan. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | 5.5% senior notes | 5.5% senior notes | 5.5% senior notes | 5.625% senior notes | 5.625% senior notes | 5.625% senior notes | Five-year term loan [Member] | Five-year term loan [Member] | Other term loans | Other term loans | Long-term Debt [Member] | Long-term Debt [Member] | ||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | $1,050,438 | ' | $650,000 | ' | $650,000 | $400,000 | $400,000 | ' | $0 | ' | $438 | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | 4,958 | ' | ' | 6,216 | ' | ' | 0 | ' | 0 | ' | 11,174 | ' |
Debt Instrument, Noncurrent Carrying Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,050,000 | ' |
Long-term Debt, including current portion | 1,039,264 | 1,144,954 | 645,042 | 644,077 | ' | 393,784 | ' | 0 | 0 | 500,000 | 438 | 877 | ' | ' |
Long-term Debt, Current Maturities | 438 | 50,438 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Excluding Current Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,038,826 | 1,094,516 |
Debt Instrument Maturity Amount, Current | 438 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | $11,174 | ' | ' | ' | $6,754 | ' | $6,260 | ' | ' | ' | ' | ' | ' | ' |
Disclosure_of_Short_and_Long_T
Disclosure of Short and Long Term Debt (Details 2) (USD $) | Mar. 31, 2014 | Jun. 27, 2012 | Mar. 31, 2014 | 21-May-12 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | 5.5% senior notes | 5.5% senior notes | 2.5% convertible senior notes | 5.625% senior notes | 5.625% senior notes | Five-year term loan [Member] | Five-year term loan [Member] | Other term loans | Five-year term loan [Member] | ||
Y | Y | Y | |||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 5.50% | 2.50% | ' | 5.63% | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $650,000 | ' | ' | ' | ' | $500,000 | ' | ' |
Maximum Net Debt to Earnings before Interest Taxes Depreciation and Amortization, Ratio | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Earnings before Interest Taxes Depreciation and Amortization to Interest, Ratio | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt to Earnings before Interest Taxes Depreciation and Amortization, Ratio | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings before Interest Taxes Depreciation and Amortization to Interest Expense, Ratio | 12.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | 1,050,438 | ' | 650,000 | 650,000 | ' | 400,000 | 400,000 | 0 | ' | 438 | ' |
Extinguishment of Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000 |
Debt Instrument, Repurchased Face Amount | ' | ' | ' | ' | 1,250,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount (Premium), Net | $11,174 | ' | ' | $6,754 | ' | ' | $6,260 | ' | ' | ' | ' |
Contingent prepayment fee, basis spread on variable rate | ' | ' | ' | 0.50% | ' | ' | 0.30% | ' | ' | ' | ' |
Term of loan in years | ' | ' | ' | 7 | ' | ' | 30 | ' | ' | ' | ' |
Debt Instrument, Expected Term for Computation of Effective Rate in Years | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' |
ShortTerm_Borrowings_and_LongT4
Short-Term Borrowings and Long-Term Debt Disclosure of 2.5% Convertable Notes (Details 3) (USD $) | 1 Months Ended | 12 Months Ended | 53 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2008 | Mar. 31, 2013 | Mar. 31, 2012 | 23-May-12 | Mar. 31, 2014 |
Debt Instrument | ' | ' | ' | ' | ' |
Debt Instrument, Repurchase Amount | ' | ' | ' | $1,193,971 | ' |
2.5% convertible senior notes | ' | ' | ' | ' | ' |
Debt Instrument | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | 6.50% | ' | ' |
Interest Expense, Debt | ' | 5,839 | 39,077 | ' | ' |
Investment Warrants, Exercise Price | $107.46 | ' | ' | ' | ' |
Payments for Hedge, Financing Activities | 83,000 | ' | ' | ' | ' |
Prepayment fee on repurchase of notes | ' | ' | ' | 6,250 | ' |
Cash payment to extinguish long-term debt | ' | ' | ' | 1,256,250 | ' |
Debt Instrument, Repurchase Amount | ' | ' | ' | 1,193,971 | ' |
Debt instrument, current market interest rate | ' | ' | ' | 4.10% | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | 68,975 | ' |
Write off of Deferred Debt Issuance Cost | ' | ' | ' | 7,851 | ' |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | ' | ' | ' | 62,279 | ' |
Extinguishment of Debt, Gain (Loss), Income Tax | ' | ' | ' | 31,446 | ' |
Fair value of convertible debt allocated to liability component at issuance | ' | ' | ' | 977,933 | ' |
Excess of allocation to liability component of convertible debt at extinguishment over initial allocation recorded as an operating cash flow | ' | ' | ' | $216,038 | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | 14,205 |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | $88 | ' |
Schedule_of_LongTerm_Debt_by_M
Schedule of Long-Term Debt by Maturities (Details 4) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument | ' |
2015 | $438 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 1,050,000 |
Total | $1,050,438 |
Income_Taxes_Components_of_Inc
Income Taxes Components of Income Before Taxes (Details 1) (Legg Mason, Inc, USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Legg Mason, Inc | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $320,890 | ($264,342) | $257,866 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 98,751 | -246,265 | 45,217 |
Income (loss) before income tax provision (benefit) | $111,948 | $125,955 | $106,851 | $74,887 | $48,646 | ($638,764) | $97,492 | ($17,981) | $419,641 | ($510,607) | $303,083 |
Income_Taxes_Components_of_Inc1
Income Taxes Components of Income Tax Expense (Details 2) (Legg Mason, Inc, USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Legg Mason, Inc | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax Expense [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $125,494 | ($74,185) | $54,179 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -1,450 | -85,677 | -7,850 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 13,761 | 9,003 | 25,723 |
Income Tax Expense (Benefit) | 46,856 | 46,004 | 19,153 | 25,792 | 17,955 | -180,214 | 16,397 | -4,997 | 137,805 | -150,859 | 72,052 |
Current | ' | ' | ' | ' | ' | ' | ' | ' | 19,375 | 6,496 | 22,860 |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | $118,430 | ($157,355) | $49,192 |
Income_Taxes_Disclosure_of_Tax
Income Taxes Disclosure of Tax Rates (Details 3) | 12 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||||
Reconciliation of Tax Rates [Line Items] | ' | ' | ' | |||
Tax provision (benefit) at statutory U.S. federal income tax rate | 35.00% | -35.00% | 35.00% | |||
State income taxes, net of federal income tax benefit | 1.80% | [1] | 1.50% | [1] | 5.40% | [1] |
Effect of foreign tax rates | -4.20% | [1] | 3.80% | [1] | -1.80% | [1] |
Effect of loss on Australian restructuring | 0.00% | 0.00% | -6.00% | |||
Changes in U.K. tax rates on deferred tax assets and liabilities | -4.60% | -3.50% | -6.00% | |||
Net (income) loss attributable to noncontrolling interests | 0.30% | 0.50% | -0.80% | |||
Other, net | 4.50% | [1] | 3.20% | [1] | -2.00% | [1] |
Effective income tax provision (benefit) rate | 32.80% | -29.50% | 23.80% | |||
[1] | State income taxes include changes in related valuation allowances, net of the impact on deferred tax assets of changes in state apportionment factors and planning strategies. The effect of foreign tax rates also includes changes in related valuation allowances. Other includes changes in federal valuation allowances and permanent tax adjustments. See schedule below for the change in valuation allowances by jurisdiction. |
Income_Taxes_Changes_in_Foreig
Income Taxes Changes in Foreign Tax Rates (Details 4) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
United Kingdom | United Kingdom | United Kingdom | United Kingdom | United Kingdom | United Kingdom | ||
Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | ||
Foreign Corporate Tax Rate After Enactment of Finance Act of 2010, Effective April 1, 2011 | ' | ' | ' | ' | ' | ' | 27.00% |
Foreign Corporate tax rate after enactment of finance act of 2011, effective April 1, 2011 | ' | ' | ' | ' | ' | ' | 26.00% |
Foreign Corporate Tax Rate After Enactment of Finance Act of 2011, Effective April 1, 2012 | ' | ' | ' | ' | ' | ' | 25.00% |
Foreign Corporate Tax Rate After Enactment of Finance Act of 2012, Effective April 1, 2012 | ' | ' | ' | ' | ' | 24.00% | ' |
Foreign Corporate Tax Rate After Enactment of Finance Act of 2012, Effective April 1, 2013 | ' | ' | ' | ' | ' | 23.00% | ' |
Foreign Corporate Tax Rate After Enactment Of Finance Bill Of 2013, Effective April 1, 2014 | ' | ' | ' | ' | 21.00% | ' | ' |
Foreign Corporate Tax Rate After Enactment of Finance Bill of 2013, Effective April 1, 2015 | ' | ' | ' | ' | 20.00% | ' | ' |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | ' | $19,164 | $18,075 | $18,268 | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | ($18,254) | ' | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Defer
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details 5) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' |
Accrued compensation and benefits | $154,074 | $107,411 |
Accrued expenses | 61,575 | 73,181 |
Operating loss carryforwards | 267,940 | 449,806 |
Capital loss carryforwards | 10,015 | 41,256 |
Foreign tax credit carryforward | 235,661 | 115,819 |
Federal benefit of uncertain tax positions | 16,914 | 21,165 |
Mutual fund launch costs | 31,774 | 24,324 |
Net unrealized losses from investments | 0 | 4,447 |
Other | 303 | 5,086 |
Deferred tax assets | 778,256 | 842,495 |
Valuation allowances | -90,832 | -115,815 |
Deferred tax assets after valuation allowance | 687,424 | 726,680 |
Basis differences, principally for intangible assets and goodwill | 72,596 | 134,873 |
Depreciation and amortization | 523,595 | 386,959 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 4,743 | 0 |
Other | 221 | 1,528 |
Deferred Tax Liabilities, Gross | 601,155 | 523,360 |
Net Deferred Tax Assets | $86,269 | $203,320 |
Income_Taxes_Information_Regar
Income Taxes Information Regarding Deferred Taxes and Tax Credits (Details 6) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' | ' |
NOL recognized as an increase in stockholders equity upon realization | $7,424,000 | ' | ' |
Deferred Tax Assets | 778,256,000 | 842,495,000 | ' |
Future Earnings, Required for Realization of Deferred Tax Assets | 3,800,000,000 | ' | ' |
Future Foreign Source Earnings Required for Realization of Deferred Tax Assets | 673,317,000 | ' | ' |
Foreign Tax Credits for Which Valuation Allowance Has Been Recorded | 39,919,000 | ' | ' |
Deferred Tax Assets, State Taxes | 180,183,000 | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 34,831,000 | ' | ' |
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation | 0 | 0 | 0 |
Internal Revenue Service (IRS) [Member] | ' | ' | ' |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' | ' |
Deferred Tax Assets | 762,699,000 | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 8,639,000 | ' | ' |
Foreign Tax Authority [Member] | ' | ' | ' |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $467,000 | ' | $2,340,000 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes Deferred Tax Assets and Valuation Allowances (Details 7) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Capital Loss Carryforwards | $10,015 | $41,256 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 235,661 | 115,819 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 34,831 | ' | ||
Deferred Tax Assets, Valuation Allowance | 90,832 | 115,815 | ||
Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets for Carryforwards | 513,616 | 612,282 | ||
Deferred Tax Assets, Valuation Allowance | 90,832 | 115,815 | ||
Carryforwards [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 82,416 | 108,311 | ||
Foreign Other Deferred Assets [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 8,416 | 7,504 | ||
Internal Revenue Service (IRS) [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 80,515 | 266,659 | ||
Deferred Tax Assets, Capital Loss Carryforwards | 3,545 | 74 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 235,661 | 115,819 | ||
Deferred Tax Assets, Charitable Contribution Carryforwards | 0 | 5,401 | ||
Internal Revenue Service (IRS) [Member] | US Federal Capital Loss [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 74 | 74 | ||
Internal Revenue Service (IRS) [Member] | US Federal Foreign Tax Credit [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 25,947 | 23,608 | ||
Internal Revenue Service (IRS) [Member] | US Charitable Contributions [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 0 | 1,597 | ||
State and Local Jurisdiction [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Capital Loss Carryforwards | 532 | 34,960 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 168,173 | [1],[2] | 161,136 | [1],[2] |
State and Local Jurisdiction [Member] | US State Net Operating Losses [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 34,590 | 25,951 | ||
State and Local Jurisdiction [Member] | US State Capital Losses [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 129 | 34,960 | ||
Foreign Tax Authority [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Capital Loss Carryforwards | 5,938 | 6,222 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 19,252 | 22,011 | ||
Foreign Tax Authority [Member] | Foreign Net Operating Losses [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | 15,738 | 15,899 | ||
Foreign Tax Authority [Member] | Foreign Capital Losses [Member] | Legg Mason, Inc | ' | ' | ||
Valuation Allowance [Line Items] | ' | ' | ||
Deferred Tax Assets, Valuation Allowance | $5,938 | $6,222 | ||
[1] | Substantially all of the U.S. state net operating losses carryforward through fiscal 2029. | |||
[2] | Due to potential for change in the factors relating to apportionment of income to various states, the Company's effective state tax rates are subject to fluctuation which will impact the value of the Company's deferred tax assets, including net operating losses, and could have a material impact on the future effective tax rate of the Company. |
Information_regarding_Unrecogn
Information regarding Unrecognized and recognized Tax Benefits (Details 8) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Unrecognized Tax Benefits | $77,892 | $72,650 | $90,831 | $77,653 |
Unrecognized tax benefits that would favorably impact tax provision and rate, if recognized | 51,518 | 46,340 | 62,400 | ' |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities and the Lapse of Applicable Statutes of Limitations | $2,927 | ' | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of Unrecognized Gross Tax Benefits (Details 9) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Reconciliation of Gross Tax Benefits [Line Items] | ' | ' | ' | ' |
Unrecognized Tax Benefits | $77,892 | $72,650 | $90,831 | $77,653 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 5,659 | 11,726 | 9,822 | ' |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 12,610 | 8,439 | 10,668 | ' |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | -138 | -13,083 | -3,575 | ' |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | -12,889 | -25,205 | -3,185 | ' |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $0 | ($58) | ($552) | ' |
Income_Taxes_Information_Regar1
Income Taxes Information Regarding Accrued Interest and Repatriation (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense (substantially all interest) | ($580) | $5,500 | $1,300 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 7,300 | 14,000 | 10,000 |
Foreign Earnings Repatriated | ' | ' | 301,000 |
Incremental tax expense (benefit) associated with future earnings from foreign subsidiaries | ($12,000) | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 1) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating leases | ' |
2015 | $134,280 |
2016 | 115,694 |
2017 | 97,595 |
2018 | 87,080 |
2019 | 72,879 |
Thereafter | 351,275 |
Total | $858,803 |
Commitments_and_Contingencies_2
Commitments and Contingencies Information Regarding Rental Commitments (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Minimum Rental Commitments in Real Estate and Equipment Lease | $858,803 |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 172,526 |
Percentage of Sublease Rentals due from Counterparty | 40.00% |
Lease Liability Related To Subleased Space | 36,170 |
Lease Liability Related To Vacant Space | 19,330 |
Real Estate And Equipment [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Minimum Rental Commitments in Real Estate and Equipment Lease | 784,221 |
Service, Support And Maintenance Agreements [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Minimum Rental Commitments in Real Estate and Equipment Lease | 74,582 |
Vacated Office Space [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Minimum Rental Commitments in Real Estate and Equipment Lease | $30,200 |
Commitments_and_Contingencies_3
Commitments and Contingencies Lease Reserve Rollforward (Details 3) (Vacated Office Space [Member], USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |||
Vacated Office Space [Member] | ' | ' | ' | ' | |||
Schedule of Lease Reserve Liability Rollforward [Line Items] | ' | ' | ' | ' | |||
Lease-Related Charges | $7,371 | [1] | $39,080 | [1] | $17,391 | [1] | ' |
Rental Payments, Net of Sublease Income | -17,117 | -15,341 | -12,397 | ' | |||
Adjustments to Lease Liability Related to Vacant Space | -1,666 | -1,590 | -752 | ' | |||
Lease Liability Related To Space Permanentely Abandonded | $55,500 | $66,912 | $44,763 | $40,521 | |||
[1] | Included in Occupancy expense in the Consolidated Statements of Income (Loss) |
Commitments_and_Contingencies_4
Commitments and Contingencies Operating Leases Rent Expense (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | $130,880 | $138,488 | $140,285 |
Operating Leases, Rent Expense, Sublease Rentals | 16,289 | 14,750 | 14,310 |
Operating Leases, Rent Expense, Net | $114,591 | $123,738 | $125,975 |
Commitments_and_Contingencies_5
Commitments and Contingencies Information Regarding Other Commitments (Details 5) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 13, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 13, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | Investment In Limited Partnerships [Member] | Fauchier [Member] | Fauchier [Member] | Fauchier [Member] | Fauchier [Member] | Fauchier [Member] | Fauchier [Member] | QS Investors [Domain] | QS Investors [Domain] | QS Investors [Domain] | |||
Contingent Payment Due on Second Anniversary of Acquisition [Member] | Contingent Payment Due on Fourth Anniversary of Acquisition [Member] | Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | Contingent Payment Due on Second Anniversary of Acquisition [Member] | Contingent Payment Due on Fourth Anniversary of Acquisition [Member] | ||||||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Commitments in Limited Partnerships | ' | ' | $34,536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | 25,000 | 33,000 | ' | ' | ' | 10,000 | 20,000 | |
Business Combination, Contingent Consideration, Liability | -29,553 | -21,900 | [1] | ' | ' | 21,566 | ' | ' | 29,553 | 21,566 | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | ' | ' | ' | 7,653 | ' | ' | ' | 2,653 | ' | ' | ' | ' | |
Payments to Acquire Business, Gross, Expected | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000 | ' | ' | |
Business Combination, Contingent Consideration, Liability Fair Value Adjustment | ' | ' | ' | ' | ' | ' | ' | $5,000 | ' | ' | ' | ' | |
[1] | See Note 2. |
Commitments_and_Contingencies_6
Commitments and Contingencies Legal Contingencies (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Loss Contingencies | ' | ' | ' |
Loss Contingency Accrual, Provision | $500 | $20,300 | ' |
Loss Contingency, Loss in Period | 200 | 5,200 | 1,100 |
Malpractice Loss Contingency, Insurance Recoveries | $19,300 | $15,200 | ' |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Schedule of Defined Contribution Plans Disclosures [Line Items] | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $15 | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $29,355 | $25,868 | $22,336 |
Minimum | ' | ' | ' |
Schedule of Defined Contribution Plans Disclosures [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ' | ' |
Maximum | ' | ' | ' |
Schedule of Defined Contribution Plans Disclosures [Line Items] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ' | ' |
Information_about_Outstanding_
Information about Outstanding Shares of Equity (Details 1) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | 31-May-12 | 31-May-08 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | ' | 500,000,000 | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | 4,000,000 | ' | ' |
Stock Repurchase Program, Authorized Amount | $1,000,000 | ' | ' | ' | ' |
Shares repurchased and retired, in dollars | ' | ' | 359,996 | 425,475 | 400,266 |
Stock Repurchased and Retired During Period, Shares | ' | ' | 9,677,000 | 16,199,000 | 13,597,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | 370,000 | ' | ' |
Proceeds from Equity Units Issued | ' | 1,150,000 | ' | ' | ' |
Interest Percentage in Senior Notes Per Equity Unit, Issued | ' | 5.00% | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Units | ' | ' | ' | ' | 1,830,000 |
Legg Mason, Inc | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | 10,333,000 | 11,948,000 | ' |
Shares repurchased and retired, in dollars | $155,000 | ' | $359,996 | $425,475 | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | 16,199,000 | ' |
2.5% convertible senior notes | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | 14,205,000 | ' | ' |
Capital_Stock_Schedule_of_Somm
Capital Stock Schedule of Sommon Stock Outstanding Roll Forward (Details 2) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Capital Unit [Line Items] | ' | ' | ' |
Shares repurchased and retired | -9,677 | -16,199 | -13,597 |
Common Stock | ' | ' | ' |
Capital Unit [Line Items] | ' | ' | ' |
Beginning balance | 125,341 | 139,874 | 150,219 |
Stock option exercises and other stock-based compensation | 839 | 80 | 172 |
Deferred compensation employee stock trust | 50 | 71 | 68 |
Deferred compensation, net | 1,175 | 1,925 | 1,246 |
Shares repurchased and retired | -9,677 | -16,199 | -13,597 |
Employee tax withholding by settlement of net share transactions | -555 | -410 | -64 |
Equity Units exchanged | 0 | 0 | 1,830 |
Ending balance | 117,173 | 125,341 | 139,874 |
Capital_Stock_Information_Rega
Capital Stock Information Regarding Dividends (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Equity [Abstract] | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.52 | $0.44 | $0.32 |
Dividends Payable | $14,945 | $14,185 | $11,493 |
Compensation_Expense_Details_1
Compensation Expense (Details 1) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Jul. 26, 2011 | Mar. 31, 2014 |
Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Stock Compensation Plan | Stock Compensation Plan | |
Minimum | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | ' | ' | ' | ' | 6,500 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | 41,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | 9,740 |
Share-based Compensation Arrangement by Share-based Payment Award Granted Price as Percentage of Fair Market Value Minimum | 100.00% | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '4 years 0 days | '5 years 0 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | '8 years 0 days | '10 years 0 days | ' | ' |
Allocated Share-based Compensation Expense | $13,530 | $10,979 | $14,076 | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $5,244 | $4,293 | $5,539 | ' | ' | ' | ' |
StockBased_Compensation_Outsta
Stock-Based Compensation Outstanding Stock Options (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $6,064 | $168 | $398 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $72,724 | ' | ' | ' |
Employee Stock Option | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $97.49 | $51.87 | $48.80 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $33.64 | $23.72 | $33.99 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,801 | 5,361 | 5,624 | 5,419 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | -804 | -25 | -117 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $43.02 | $53.13 | $57.78 | $59.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | 1,215 | 966 | 810 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $30.52 | $21.80 | $25.32 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | -971 | -1,204 | -488 | ' |
Employee Stock Option | Range of exercise price, 12.65 - 25.00 [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $22.95 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 846 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | '5 years 292 days | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $12.65 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $25 | ' | ' | ' |
Employee Stock Option | Range of exercise price, 25.01 - 35.00 [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $31.89 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 2,403 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | ' | '4 years 329 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $25.01 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $35 | ' | ' | ' |
Employee Stock Option | Range of exercise price, 35.01 - 94.00 [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $35.16 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 681 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | ' | '7 years 37 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $35.01 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $94 | ' | ' | ' |
Employee Stock Option | Range of exercise price, 94.01 - 100.00 [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $95.13 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 416 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | ' | '0 years 110 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $94.01 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $100 | ' | ' | ' |
Employee Stock Option | Range of exercise price, 100.01 - 134.97 [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $103.21 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 455 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | ' | '1 year 73 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $100.01 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $134.97 | ' | ' | ' |
Employee Stock Option | Range of exercise price, all [Member] | ' | ' | ' | ' |
Stock based compensation disclosure | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 4,801 | ' | ' | ' |
StockBased_Compensation_Exerci
Stock-Based Compensation Exercisable Stock Options (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | |||
Range of exercise price, 12.65 - 25.00 [Member] | Range of exercise price, 25.01 - 35.00 [Member] | Range of exercise price, 35.01 - 94.00 [Member] | Range of exercise price, 94.01 - 100.00 [Member] | Range of exercise price, 100.01 - 134.97 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,531 | 3,254 | 3,334 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $54.04 | $69.07 | $73.60 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | ' | ' | ' | 2,531 | 241 | 1,412 | 7 | 416 | 455 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | ' | ' | ' | ' | $21.03 | $31.80 | $35.16 | $95.13 | $103.21 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $31,180 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | ' | ' | ' | '3 years 0 days | ' | ' | ' | ' | ' |
StockBased_Compensation_Unvest
Stock-Based Compensation Unvested Stock Options (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Schedule of Unvested Shares [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $12.13 | $9.47 | $13.13 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $16,905 | ' | ' |
Employee Stock Option | ' | ' | ' |
Schedule of Unvested Shares [Line Items] | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 183 days | ' | ' |
Employee Stock Option | ' | ' | ' |
Schedule of Unvested Shares [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 2,270 | 2,107 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $30.74 | $11.65 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | 1,215 | 966 | 810 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $33.64 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | -984 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $29.66 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | -68 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $29.73 | ' | ' |
Exercised_Stock_Options_Detail
Exercised Stock Options (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $23,818 | $660 | $2,851 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $1,815 | $45 | $47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $12.13 | $9.47 | $13.13 |
StockBased_Compensation_Servic
Stock-Based Compensation Service-based Stock Options and Awards (Details 6) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | 2-May-13 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Chief Executive Officer [Member] | Tranche one [Member] | Tranche two [Member] | Tranche three [Member] | Tranche four [Member] | All tranches [Member] | Employee Stock Option | Employee Stock Option | Employee Stock Option | ||||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.48% | 1.54% | 1.44% | 1.39% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.86% | 0.80% | 0.81% | 1.95% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | ' | ' | ' | 44.05% | 45.08% | 51.80% | 47.16% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 339 days | '5 years 7 days | '5 years 44 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | ' | ' | ' | $31.46 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $72,724,000 | ' | ' | $5,525,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Percentage | ' | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' |
Target Share Price, Option Vesting Requirement | ' | ' | ' | ' | ' | $36.46 | $41.46 | $46.46 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $12.13 | $9.47 | $13.13 | ' | ' | ' | ' | ' | $11.05 | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | $31.46 | ' | ' | ' |
StockBased_Compensation_Restri1
Stock-Based Compensation Restricted Stock and Restricted Stock Unit Transactions (Details 9) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,334 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $63,479 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | ' | 6,400 | ' | ' |
Key Employees | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 325 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | ' | 8,400 | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $28.66 | $31.22 | $31.49 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $35.66 | $24.04 | $33.48 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -1,622 | -1,177 | -1,075 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $30.77 | $27.99 | $33.83 | $33.01 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,369 | 2,185 | 1,370 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | -151 | -143 | -59 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $29.04 | $58.30 | $32.68 | ' |
Allocated Share-based Compensation Expense | 48,263 | 46,351 | 32,826 | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 18,575 | 17,697 | 12,705 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,334 | 3,738 | 2,873 | 2,637 |
Restricted Stock [Member] | Key Employees | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | ' | 85 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | ' | $1,400 | ' | ' |
Marketbased_Performance_shares
Market-based Performance shares - Senior Officers (Details 8) (Performance Shares [Member], Senior Officers [Member]) | 1 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2008 | Mar. 31, 2013 |
Performance Shares [Member] | Senior Officers [Member] | ' | ' |
Stock based compensation disclosure | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | 100 |
StockBased_Compensation_Employ
Stock-Based Compensation Employee Stock Purchase Plan (Details 7) (Employee Stock Purchase Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,500 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award Contribution Provided Percent | 15.00% | 10.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 85 | 107 | 107 |
Allocated Share-based Compensation Expense | $315 | $238 | $267 |
StockBased_Compensation_Manage
Stock-Based Compensation Management Equity Plans (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Profits interests equity plan participation percentage | 15.00% | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | $160 | $165 | $191 |
Management Equity Plan [Member] | ' | ' | ' |
Profits interests equity plan participation percentage | 15.00% | ' | ' |
Management Equity Plan [Member] | Permal [Member] | ' | ' | ' |
Aggregate Cost of Awards | 9,000 | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | 2,270 | ' | ' |
Management Equity Plan [Member] | ClearBridge Investments [Member] | ' | ' | ' |
Aggregate Cost of Awards | $16,000 | ' | ' |
StockBased_Compensation_Nonemp
Stock-Based Compensation Non-employee Directors Equity Plan (Details 11) (Director [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Common stock granted to non-employee directors, fair value | $1,950 | $1,250 | $1,375 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 625 | ' | ' |
Shares, Issued | 360 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 32 | 112 | 184 |
Restricted Stock Units Outstanding to Non-Employee Director Number of Shares | 64 | 91 | 74 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 39 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Restricted Stock Units Granted In Period | 12 | 17 | 12 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 47 | 35 | 31 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 54 | 72 | 36 |
Previous Equity Plan for Non-Employee Directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 26 | ' | ' |
StockBased_Compensation_Deferr
Stock-Based Compensation Deferred Compensation Plans (Details 12) (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2011 |
Deferred Compensation, Share-based Payments [Member] | Deferred Compensation, Share-based Payments [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' |
Aggregate Cost of Awards | ' | ' | ' | $1,850 | $1,850 |
Deferred Compensation Arrangement with Individual Discount on Contribution, Maximum Percent | 10.00% | ' | ' | ' | ' |
Additional shares reserved for future issuance | 327 | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Compensation Expense | $160 | $165 | $191 | ' | ' |
Deferred Compensation Arrangement with Individual, Shares Issued | 51 | 71 | 68 | ' | ' |
Deferred Compensation Arrangement with Individual, Weighted Average Grant Date Fair Value | $31.90 | $23.07 | $27.05 | ' | ' |
Common Stock, Shares Held in Employee Trust, Shares | 672 | 726 | 690 | ' | ' |
Earnings_Per_Share_Board_Autho
Earnings Per Share Board Authorizations (Details 1) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-12 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jun. 30, 2012 |
Previously Authorized [Member] | |||||
Earnings Per Share Information [Line Items] | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Value | ' | $359,996 | $425,475 | $400,266 | $155,000 |
Maximum future operating cash flows authorized for share repurchases | ' | 65.00% | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | $1,000,000 | ' | ' | ' | ' |
Earnings_Per_Share_Shares_Purc
Earnings Per Share Shares Purchased and Retired (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jun. 30, 2012 |
Newly Authorized [Member] | ||||
Shares Repurchases [Line Items] | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | 9,677 | 16,199 | 13,597 | ' |
Stock Repurchased and Retired During Period, Value | $359,996 | $425,475 | $400,266 | $270,000 |
Repurchased and Retired Shares, Excluded from Weighted Average Shares Outstanding Number | 4,908 | 8,449 | 9,716 | ' |
Common Stock Issued During Period Shares Equity Units Tender Offer | ' | ' | 1,830 | ' |
Weighted Average Shares Outstanding, Common Stock Issued Through Equity Units | ' | ' | 1,380 | ' |
Earnings_Per_Share_Basic_and_D
Earnings Per Share Basic and Diluted Earnings Per Share Information (Details 4) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |||
Antidilutive shares due to net loss [Member] | ' | ' | ' | |||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ' | ' | ' | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 5,730 | ' | |||
Antidilutive shares due to proceeds from exercising exceeded price of shares [Domain] | ' | ' | ' | |||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ' | ' | ' | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,620 | ' | 5,239 | |||
2.5% convertible senior notes | ' | ' | ' | |||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ' | ' | ' | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 14,205 | ' | ' | |||
Consolidated Legg Mason, Inc. | ' | ' | ' | |||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ' | ' | ' | |||
Weighted Average Number of Shares Outstanding, Basic | 121,941 | 133,226 | 143,292 | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 442 | 0 | 57 | |||
Weighted Average Number of Shares Outstanding, Diluted | 122,383 | [1] | 133,226 | [1] | 143,349 | [1] |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $281,836 | ($359,748) | $231,031 | |||
Net Income (loss) attributable to Noncontrolling Interest | -2,948 | -6,421 | 10,214 | |||
Net income (loss) attributable to Legg Mason, Inc. | $284,784 | ($353,327) | $220,817 | |||
Earnings Per Share, Basic | $2.34 | ($2.65) | $1.54 | |||
Earnings Per Share, Diluted | $2.33 | ($2.65) | $1.54 | |||
[1] | Diluted shares are the same as basic shares for periods with a net loss. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $76 | $187 |
Legg Mason, Inc | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Foreign currency translation adjustment | 37,835 | 47,259 |
Unrealized gains on investment securities, net of tax provision of $76 and $187, respectively | 114 | 280 |
Total | $37,949 | $47,539 |
Derivatives_and_Hedging_Deriva
Derivatives and Hedging Derivatives and Hedgeing (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative | ' | ' |
Amount Net for Fair Value of Derivative Assets and (Liabilities) | $1,249 | $1,158 |
Cash collateral | 12,985 | 7,131 |
Other Assets [Member] | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 3,584 | 1,939 |
Other Assets [Member] | Currency forward contracts | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 3,271 | 1,496 |
Other Assets [Member] | Futures and forward contracts | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 313 | 443 |
Other Liabilities [Member] | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 2,335 | 781 |
Other Liabilities [Member] | Currency forward contracts | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 825 | 101 |
Other Liabilities [Member] | Futures and forward contracts | ' | ' |
Derivative | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $1,510 | $680 |
Derivatives_and_Hedging_Detail
Derivatives and Hedging (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Derivative | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gains | $9,625 | $6,654 | $11,719 |
Derivative Instruments Not Designated as Hedging Instruments, Loss | -23,739 | -7,835 | -8,070 |
Forward foreign currency contracts | Other Expense | ' | ' | ' |
Derivative | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gains | 7,098 | 3,650 | 5,604 |
Derivative Instruments Not Designated as Hedging Instruments, Loss | -2,617 | -1,858 | -3,159 |
Forward foreign currency contracts | Seed Capital Investments - Other non-operating income (expense) | ' | ' | ' |
Derivative | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gains | 56 | 1,090 | 431 |
Derivative Instruments Not Designated as Hedging Instruments, Loss | -1,719 | -380 | -351 |
Futures contracts | Seed Capital Investments - Other non-operating income (expense) | ' | ' | ' |
Derivative | ' | ' | ' |
Derivative Instruments Not Designated as Hedging Instruments, Gains | 2,471 | 1,914 | 5,684 |
Derivative Instruments Not Designated as Hedging Instruments, Loss | ($19,403) | ($5,597) | ($4,560) |
Restructuring_Total_Costs_Rela
Restructuring Total Costs Related to Restructure (Details 1) (USD $) | 12 Months Ended | 24 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2012 |
Restructuring Costs [Abstract] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | ' | ' | $127,500 |
Restructuring Reserve, Settled without Cash | ' | ' | ' | ' | 30,841 |
Transition Related Compensation | ' | ' | ' | ' | 79,686 |
Restructuring and Related Cost, Incurred Cost | $0 | $0 | $73,066 | $54,434 | ' |
Restructuring_Schedule_of_Rest
Restructuring Schedule of Restructuring Costs Reserve Roll Forward (Details) (USD $) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring Reserve | $1,610 | $4,886 | $16,797 | $29,046 | ||||
Restructuring Reserve, Accrual Adjustment | ' | ' | 55,012 | ' | ||||
Payments for Restructuring | -3,276 | -11,911 | -67,261 | ' | ||||
Other Restructuring Costs [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring Reserve | 1,610 | [1] | 4,886 | [1] | 15,630 | [1] | 5,835 | [1] |
Restructuring Reserve, Accrual Adjustment | ' | ' | 25,916 | [1],[2] | ' | |||
Payments for Restructuring | -3,276 | [1] | -10,744 | [1] | -16,121 | [1] | ' | |
Severance and Retention Incentives [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring Reserve | 0 | 0 | 1,167 | 23,211 | ||||
Restructuring Reserve, Accrual Adjustment | ' | ' | 29,096 | ' | ||||
Payments for Restructuring | 0 | -1,167 | -51,140 | ' | ||||
Lease Loss Accruals For Space Permanently Abandoned [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring Reserve, Accrual Adjustment | $17,983 | ' | ' | ' | ||||
[1] | Amounts related to the lease reserve liability are also included in Note 8. | |||||||
[2] | Includes lease loss accruals of $17,983 for space permanently abandoned. |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Revenues and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Legg Mason, Inc | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues | $681,396 | $720,092 | $669,852 | $670,417 | $667,763 | $673,900 | $640,295 | $630,692 | $2,741,757 | $2,612,650 | $2,662,574 |
Intangible Assets and Goodwill | 4,412,296 | ' | ' | ' | 4,446,727 | ' | ' | ' | 4,412,296 | 4,446,727 | 5,131,911 |
Legg Mason, Inc | United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,874,328 | 1,800,539 | 1,806,990 |
Intangible Assets and Goodwill | 3,127,654 | ' | ' | ' | 3,139,050 | ' | ' | ' | 3,127,654 | 3,139,050 | 3,548,628 |
Legg Mason, Inc | United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 436,542 | 387,966 | 448,863 |
Intangible Assets and Goodwill | 879,946 | ' | ' | ' | 895,767 | ' | ' | ' | 879,946 | 895,767 | 1,108,297 |
Legg Mason, Inc | Other International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 430,887 | 424,145 | 406,721 |
Intangible Assets and Goodwill | $404,696 | ' | ' | ' | $411,910 | ' | ' | ' | $404,696 | $411,910 | $474,986 |
Variable_Interest_Entities_and2
Variable Interest Entities and Consolidation of Investment Vehicles (Details) (USD $) | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Eliminations | Eliminations | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Consolidated Legg Mason, Inc. | Reportable Legal Entities [Member] | Reportable Legal Entities [Member] | Reportable Legal Entities [Member] | Reportable Legal Entities [Member] | |||
Balance Before Consolidation of CIVs | Balance Before Consolidation of CIVs | CIVs | CIVs | |||||||||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Owned Funds | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Number of Collateralized Securites Vehicles | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Primary Beneficiary, Number of Collateralized Securites Vehicles | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Sponsored Investment Fund Vie | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity Controlling Financial Interest Number of Sponsored Investment Fund Vres | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Consolidated Sponsored Investment Funds | $39,434 | $39,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets, Current | ' | ' | -42,981 | -39,390 | 2,128,383 | 1,942,862 | ' | ' | 2,032,827 | 1,908,932 | 138,537 | 73,320 |
Assets, Noncurrent | ' | ' | 0 | 0 | 4,982,966 | 5,326,798 | ' | ' | 4,950,948 | 5,115,181 | 32,018 | 211,617 |
Total assets | ' | ' | -42,981 | -39,390 | 7,111,349 | 7,269,660 | ' | ' | 6,983,775 | 7,024,113 | 170,555 | 284,937 |
Liabilities, Current | ' | ' | -3,547 | -334 | 821,245 | 702,466 | ' | ' | 735,737 | 692,261 | 89,055 | 10,539 |
Noncurrent Long-Term Debt of Consolidated Investment Vehicles | ' | ' | 0 | 0 | 0 | 207,835 | ' | ' | 0 | 0 | 0 | 207,835 |
Noncurrent Liabilities Other than Debt Related to Consolidated Investment Entities | ' | ' | 0 | 0 | 1,520,236 | 1,519,999 | ' | ' | 1,520,236 | 1,517,069 | 0 | 2,930 |
Total liabilities | ' | ' | -3,547 | -334 | 2,341,481 | 2,430,300 | ' | ' | 2,255,973 | 2,209,330 | 89,055 | 221,304 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | ' | ' | 15,647 | 19,654 | 45,144 | 21,009 | 24,031 | 36,712 | 3,172 | 1,355 | 26,325 | 0 |
Stockholders' Equity Attributable to Parent | ' | ' | -55,081 | -58,710 | 4,724,724 | 4,818,351 | ' | ' | 4,724,630 | 4,813,428 | 55,175 | 63,633 |
Total liabilities and equity | ' | ' | ($42,981) | ($39,390) | $7,111,349 | $7,269,660 | ' | ' | $6,983,775 | $7,024,113 | $170,555 | $284,937 |
Variable_Interest_Entities_and3
Variable Interest Entities and Consolidation of Investment Vehicles (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Eliminations | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Total operating revenues | ($1,950) | ($2,397) | ($3,094) |
Total operating expenses | -1,956 | -2,403 | -3,101 |
Operating Income (Loss) | 6 | 6 | 7 |
Total other non-operating income (expense) | -3,364 | -1,067 | -4,770 |
Income (loss) before income tax provision (benefit) | -3,358 | -1,061 | -4,763 |
Income tax provision (benefit) | 0 | 0 | 0 |
Net Income (Loss) | -3,358 | -1,061 | -4,763 |
Less: Net income (loss) attributable to noncontrolling interests | -3,289 | -6,890 | 9,864 |
Net Income (Loss) Attributable to Legg Mason, Inc. | -69 | 5,829 | -14,627 |
Consolidated Legg Mason, Inc. | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Total operating revenues | 2,741,757 | 2,612,650 | 2,662,574 |
Total operating expenses | 2,310,864 | 3,047,149 | 2,323,821 |
Operating Income (Loss) | 430,893 | -434,499 | 338,753 |
Total other non-operating income (expense) | -11,252 | -76,108 | -35,670 |
Income (loss) before income tax provision (benefit) | 419,641 | -510,607 | 303,083 |
Income tax provision (benefit) | 137,805 | -150,859 | 72,052 |
Net Income (Loss) | 281,836 | -359,748 | 231,031 |
Less: Net income (loss) attributable to noncontrolling interests | -2,948 | -6,421 | 10,214 |
Net Income (Loss) Attributable to Legg Mason, Inc. | 284,784 | -353,327 | 220,817 |
Reportable Legal Entities [Member] | Balance Before Consolidation of CIVs | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Total operating revenues | 2,743,707 | 2,615,047 | 2,665,668 |
Total operating expenses | 2,310,444 | 3,046,587 | 2,323,213 |
Operating Income (Loss) | 433,263 | -431,540 | 342,455 |
Total other non-operating income (expense) | -10,333 | -72,177 | -49,236 |
Income (loss) before income tax provision (benefit) | 422,930 | -503,717 | 293,219 |
Income tax provision (benefit) | 137,805 | -150,859 | 72,052 |
Net Income (Loss) | 285,125 | -352,858 | 221,167 |
Less: Net income (loss) attributable to noncontrolling interests | 341 | 469 | 350 |
Net Income (Loss) Attributable to Legg Mason, Inc. | 284,784 | -353,327 | 220,817 |
Reportable Legal Entities [Member] | CIVs | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Total operating revenues | 0 | 0 | 0 |
Total operating expenses | 2,376 | 2,965 | 3,709 |
Operating Income (Loss) | -2,376 | -2,965 | -3,709 |
Total other non-operating income (expense) | 2,445 | -2,864 | 18,336 |
Income (loss) before income tax provision (benefit) | 69 | -5,829 | 14,627 |
Income tax provision (benefit) | 0 | 0 | 0 |
Net Income (Loss) | 69 | -5,829 | 14,627 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 |
Net Income (Loss) Attributable to Legg Mason, Inc. | $69 | ($5,829) | $14,627 |
Variable_Interest_Entities_and4
Variable Interest Entities and Consolidation of Investment Vehicles (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | $467,726 | $371,080 |
Assets, Fair Value Disclosure | 1,133,766 | 1,148,688 |
Long-term Debt, Fair Value | 1,135,103 | 1,206,166 |
Derivative Liabilities | -2,335 | -781 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 378,396 | 258,029 |
Assets, Fair Value Disclosure | 840,659 | 750,057 |
Derivative Liabilities | -2,335 | -781 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 89,140 | 112,805 |
Assets, Fair Value Disclosure | 208,268 | 304,174 |
Derivative Liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 190 | 246 |
Assets, Fair Value Disclosure | 84,839 | 94,457 |
Derivative Liabilities | 0 | 0 |
Consolidated Investment Vehicles [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 50,463 | ' |
Long-term Investments | ' | 210,553 |
Assets, Fair Value Disclosure | 82,273 | 235,345 |
Liabilities, Fair Value Disclosure, Recurring | -81,067 | -210,765 |
Consolidated Investment Vehicles [Member] | Other Credit Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | -1,888 | -2,930 |
Consolidated Investment Vehicles [Member] | Collateralized Debt Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Fair Value | -79,179 | -207,835 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 28,634 | ' |
Long-term Investments | ' | 0 |
Assets, Fair Value Disclosure | 28,634 | 2,076 |
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 1 [Member] | Other Credit Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Debt Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Fair Value | 0 | 0 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 3,941 | ' |
Long-term Investments | ' | 183,571 |
Assets, Fair Value Disclosure | 3,941 | 186,839 |
Liabilities, Fair Value Disclosure, Recurring | -1,888 | -2,930 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 2 [Member] | Other Credit Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | -1,888 | -2,930 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Debt Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Fair Value | 0 | 0 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 17,888 | ' |
Long-term Investments | ' | 26,982 |
Assets, Fair Value Disclosure | 49,698 | 46,430 |
Liabilities, Fair Value Disclosure, Recurring | -79,179 | -207,835 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 3 [Member] | Other Credit Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Liabilities | 0 | 0 |
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Fair Value | -79,179 | -207,835 |
Consolidated Investment Vehicles [Member] | Hedge Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 22,939 | 24,792 |
Consolidated Investment Vehicles [Member] | Hedge Funds | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 1,110 | 2,076 |
Consolidated Investment Vehicles [Member] | Hedge Funds | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 3,941 | 3,268 |
Consolidated Investment Vehicles [Member] | Hedge Funds | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 17,888 | 19,448 |
Consolidated Investment Vehicles [Member] | Proprietary Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 27,524 | ' |
Consolidated Investment Vehicles [Member] | Proprietary Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 27,524 | ' |
Consolidated Investment Vehicles [Member] | Proprietary Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 0 | ' |
Consolidated Investment Vehicles [Member] | Proprietary Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Short-term Investments | 0 | ' |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 172,519 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 0 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 172,519 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 0 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 11,052 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 0 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 11,052 |
Consolidated Investment Vehicles [Member] | Collateralized Loan Obligations Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | ' | 0 |
Consolidated Investment Vehicles [Member] | Private Equity Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | 31,810 | 26,982 |
Consolidated Investment Vehicles [Member] | Private Equity Funds | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | 0 | 0 |
Consolidated Investment Vehicles [Member] | Private Equity Funds | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | 0 | 0 |
Consolidated Investment Vehicles [Member] | Private Equity Funds | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Investments | $31,810 | $26,982 |
Variable_Interest_Entities_and5
Variable Interest Entities and Consolidation of Investment Vehicles (Details 4) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Weighted Average | Collateralized Loan Obligations [Member] | Collateralized Loan Obligations [Member] | Collateralized Loan Obligations [Member] | Collateralized Loan Obligations [Member] | ||
Discounted Cash Flow [Member] | Minimum | Maximum | Weighted Average | ||||
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | ||||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
CLO debt | ($1,135,103) | ($1,206,166) | ' | ($207,835) | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | 2.30% | ' | 1.10% | 11.00% | ' |
Fair Value Inputs, Probability of Default | ' | ' | 3.50% | ' | 3.00% | 4.00% | ' |
Fair Value Inputs, Prepayment Rate | ' | ' | ' | ' | ' | ' | 25.00% |
Variable_Interest_Entities_and6
Variable Interest Entities and Consolidation of Investment Vehicles (Details 5) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
ASSETS: | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | $94,457,000 | $207,103,000 |
Purchases | 5,155,000 | 3,073,000 |
Sales | 1,493,000 | 3,238,000 |
Redemptions/Settlements/Other | 14,204,000 | 130,130,000 |
Transfers, Net | 0 | 0 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 84,839,000 | 94,457,000 |
Fair Value Disclosures [Abstract] | ' | ' |
Unrealized gains (losses) on Level 3 assets and liabilities still held at the reporting date | 5,210,000 | 1,229,000 |
CIVs | ' | ' |
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 |
CIVs | Fair Value, Inputs, Level 3 [Member] | ' | ' |
ASSETS: | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 46,430,000 | 49,187,000 |
Purchases | 5,327,000 | 4,602,000 |
Sales | -8,037,000 | -8,632,000 |
Redemptions/Settlements/Other | 0 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 5,978,000 | 1,273,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 49,698,000 | 46,430,000 |
Fair Value Disclosures [Abstract] | ' | ' |
Total realized and unrealized gains (losses), net | 1,587,000 | -10,653,000 |
Unrealized gains (losses) on Level 3 assets and liabilities still held at the reporting date | -2,284,000 | -11,842,000 |
Hedge Funds | CIVs | Fair Value, Inputs, Level 3 [Member] | ' | ' |
ASSETS: | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 19,448,000 | 24,116,000 |
Purchases | 3,516,000 | 1,980,000 |
Sales | -8,037,000 | -6,602,000 |
Redemptions/Settlements/Other | 0 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 2,961,000 | -46,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 17,888,000 | 19,448,000 |
Private Equity Funds | CIVs | Fair Value, Inputs, Level 3 [Member] | ' | ' |
ASSETS: | ' | ' |
Assets measured at fair value using significant unobservable inputs, value at beginning of period | 26,982,000 | 25,071,000 |
Purchases | 1,811,000 | 2,622,000 |
Sales | 0 | -2,030,000 |
Redemptions/Settlements/Other | 0 | 0 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | 3,017,000 | 1,319,000 |
Assets measured at fair value using significant unobservable inputs, value at end of period | 31,810,000 | 26,982,000 |
Collateralized Debt Obligations [Member] | CIVs | Fair Value, Inputs, Level 3 [Member] | ' | ' |
LIABILITIES: | ' | ' |
Liabilities measured at fair value using significant unobservable inputs, value at beginning of period | -207,835,000 | -271,707,000 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Redemptions/Settlements/Other | 133,047,000 | 75,798,000 |
Transfers, Net | 0 | 0 |
Realized and unrealized gains/(losses), net | -4,391,000 | -11,926,000 |
Liabilities measured at fair value using significant unobservable inputs, value at end of period | ($79,179,000) | ($207,835,000) |
Variable_Interest_Entities_and7
Variable Interest Entities and Consolidation of Investment Vehicles (Details 6) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Y | Y | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 79,425 | [1] | 89,698 | [1] |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 25,575 | ' | ||
Private Equity Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 22,759 | [2] | 23,763 | [2] |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 5,575 | ' | ||
Hedge Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 19,461 | 24,716 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 20,000 | ' | ||
CIVs | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 54,749 | 51,774 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 2,707 | ' | ||
CIVs | Private Equity Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 31,810 | [2] | 26,982 | [2] |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 2,707 | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | '4 years 0 days | ' | ||
CIVs | Hedge Funds | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Alternative Investments Fair Value Disclosure | 22,939 | [3] | 24,792 | [4] |
Percentage of Daily Redemption | 10.00% | 11.00% | ||
Percentage of Monthly Redemption | 6.00% | 8.00% | ||
Percentage of Quarterly Redemption | 2.00% | 2.00% | ||
Percentage Subject to Lock in Period | 82.00% | 79.00% | ||
CIVs | Hedge Funds | Minimum | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Investment Lock up Period | 3 | 3 | ||
CIVs | Hedge Funds | Maximum | ' | ' | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | ' | ||
Investment Lock up Period | 5 | 5 | ||
[1] | Comprised of approximately 31% and 69% of Level 2 and Level 3 assets, respectively, as of March 31, 2014 and 32% and 68% of Level 2 and Level 3 assets, respectively, as of March 31, 2013. | |||
[2] | Liquidations are expected over the remaining term. | |||
[3] | daily redemption; 6% monthly redemption; 2% quarterly redemption; and 82% are subject to three to five year lock-up or side pocket provisions. | |||
[4] | daily redemption; 8% monthly redemption; 2% quarterly redemption; and 79% are subject to three to five year lock-up or side pocket provisions. |
Variable_Interest_Entities_and8
Variable Interest Entities and Consolidation of Investment Vehicles (Details 7) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
CLO debt | ' | ' |
Fair value | $1,135,103 | $1,206,166 |
Collateralized Loan Obligations Loans And Bonds [Member] | CIVs | ' | ' |
CLO Loans And Bonds | ' | ' |
Unpaid principal balance | 0 | 186,839 |
Unpaid principal balance in excess of fair value | 0 | -3,268 |
Fair value | 0 | 183,571 |
Collateralized Debt Obligations [Member] | CIVs | ' | ' |
CLO debt | ' | ' |
Principal amounts outstanding of CLO Debt | 92,114 | 225,161 |
Excess unpaid principal over fair value | -12,935 | -17,326 |
Other liabilities of consolidated investment vehicles | 79,179 | ' |
Fair value | ' | $207,835 |
Variable_Interest_Entities_and9
Variable Interest Entities and Consolidation of Investment Vehicles (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Debt Instrument | ' | ' |
Derivative Liabilities | ($2,335) | ($781) |
London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Debt Instrument | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ' |
CIVs | Minimum | Collateralized Debt Obligations [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Debt Instrument | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ' |
CIVs | Maximum | Collateralized Debt Obligations [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' |
Debt Instrument | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ' |
Other Liabilities [Member] | CIVs | ' | ' |
Debt Instrument | ' | ' |
Derivative Liabilities | -1,888 | -2,930 |
Other Nonoperating income (expense) [Member] | CIVs | ' | ' |
Debt Instrument | ' | ' |
Fair Value Option, Gain (Loss) recognized in other non-operating income of CIVs | -5,914 | -8,455 |
Gain on Derivative Assets and Liabilities Recorded in Other Non-Operating Income of Consolidated Investment Vehicles | 1,311 | 942 |
Loss on Derivative Assets and Liabilities Recorded in Other Non-Operating Income of Consolidated Investment Vehicles | ($1,537) | ($1,223) |
Recovered_Sheet1
Variable Interest Entities and Consolidation of Investment Vehicles (Details 9) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | Mar. 31, 2014 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Variable Interest Entity | ' | ' | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $35,568 | [1] | $44,093 | [1] |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 83,147 | [2] | 90,261 | [2] |
Assets under Management, Carrying Amount | 16,032,764 | 17,090,267 | ||
CDO and CLO [Member] | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | 0 | 0 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 911 | 496 | ||
Real Estate Investment Trusts [Member] | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | 1,442 | 989 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 3,715 | 2,644 | ||
Other sponsored investments fund [Member] | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | 34,126 | 43,104 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 78,521 | 87,121 | ||
Proprietary Funds [Member] | ' | ' | ||
Variable Interest Entity | ' | ' | ||
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $23,404 | $33,918 | ||
[1] | Includes $23,404 and $33,918 related to investments in proprietary funds products as of March 31, 2014 and 2013, respectively. | |||
[2] | Includes equity investments the Company has made or is required to make and any earned but uncollected management fees. |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 20-May-14 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | Legg Mason, Inc | |
Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | |||||||||||||
Operating Revenues | ' | $681,396 | $720,092 | $669,852 | $670,417 | $667,763 | $673,900 | $640,295 | $630,692 | $2,741,757 | $2,612,650 | $2,662,574 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Expenses | ' | 562,055 | 598,440 | 563,486 | 586,883 | 624,750 | 1,307,223 | 560,561 | 554,615 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | ' | 119,341 | 121,652 | 106,366 | 83,534 | 43,013 | -633,323 | 79,734 | 76,077 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Nonoperating Income (Expense) | ' | -7,393 | 4,303 | 485 | -8,647 | 5,633 | -5,441 | 17,758 | -94,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before income tax provision (benefit) | ' | 111,948 | 125,955 | 106,851 | 74,887 | 48,646 | -638,764 | 97,492 | -17,981 | 419,641 | -510,607 | 303,083 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | ' | 46,856 | 46,004 | 19,153 | 25,792 | 17,955 | -180,214 | 16,397 | -4,997 | 137,805 | -150,859 | 72,052 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | 65,092 | 79,951 | 87,698 | 49,095 | 30,691 | -458,550 | 81,095 | -12,984 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (loss) attributable to Noncontrolling Interest | ' | -3,855 | -1,783 | 1,410 | 1,280 | 1,487 | -4,680 | 298 | -3,526 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Legg Mason, Inc. | ' | 68,947 | 81,734 | 86,288 | 47,815 | 29,204 | -453,870 | 80,797 | -9,458 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Basic | ' | $0.58 | $0.68 | $0.70 | $0.38 | $0.23 | ($3.45) | $0.60 | ($0.07) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted | ' | $0.58 | $0.67 | $0.70 | $0.38 | $0.23 | ($3.45) | $0.60 | ($0.07) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Cash Paid | ' | $0.13 | $0.13 | $0.13 | $0.13 | $0.11 | $0.11 | $0.11 | $0.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price | $48.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49.50 | $44.09 | $35.85 | $37.04 | $32.59 | $26.63 | $27.14 | $28.47 | $39.60 | $32.44 | $30.28 | $29.28 | $25.43 | $23.88 | $23.31 | $22.36 |
Assets under Management, Carrying Amount | ' | 701,774 | 679,475 | 656,023 | 644,511 | 664,609 | 648,879 | 650,700 | 631,823 | 701,774 | 664,609 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets under Management, Average Balance | ' | $689,003 | $670,019 | $650,428 | $654,737 | $657,357 | $648,354 | $639,389 | $635,463 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |