Variable Interest Entities and Consolidation of Investment Vehicles (Tables)

3 Months Ended

6 Months Ended

12 Months Ended

Sep. 30, 2011

Sep. 30, 2010

Sep. 30, 2011

Sep. 30, 2010

Mar. 31, 2011

Variable Interest Entities and Consolidation of Investment Vehicles [Abstract]

Impact of Consolidated Investment Entities on Consolidated Financial Statements [Table Text Block]

Consolidating Balance Sheets



	September 30, 2011									March 31, 2011
	Balance Before Consolidation of CIVs		CIVs		Eliminations			As Reported		Balance Before Consolidation of CIVs		CIVs ⁽¹⁾		Eliminations			As Reported
Current assets	$	2,074,231	$	81,099	$	(50,407	)	$	2,104,923	$	2,378,226	$	122,963	$	(54,633	)	$	2,446,556
Non-current assets	5,852,817		301,409		—			6,154,226		5,946,737		314,463		—			6,261,200
Total assets	$	7,927,048	$	382,508	$	(50,407	)	$	8,259,149	$	8,324,963	$	437,426	$	(54,633	)	$	8,707,756
Current liabilities	$	810,193	$	10,607	$	(427	)	$	820,373	$	914,803	$	55,094	$	(925	)	$	968,972
Long-term debt of CIVs	—		267,714		—			267,714		—		278,320		—			278,320
Other non-current liabilities	1,565,412		4,285		—			1,569,697		1,649,815		3,553		—			1,653,368
Total liabilities	2,375,605		282,606		(427		)	2,657,784		2,564,618		336,967		(925		)	2,900,660
Redeemable non-controlling interests	917		—		44,711			45,628		976		—		35,736			36,712
Total stockholders’ equity	5,550,526		99,902		(94,691		)	5,555,737		5,759,369		100,459		(89,444		)	5,770,384
Total liabilities and equity	$	7,927,048	$	382,508	$	(50,407	)	$	8,259,149	$	8,324,963	$	437,426	$	(54,633	)	$	8,707,756

(1) Certain immaterial non-current liabilities of CIVs are included in Other liabilities on the Consolidated Balance Sheets.

Consolidating Statements of Income



	Three Months Ended
	September 30, 2011												September 30, 2010
	Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported			Balance Before Consolidation of CIVs		CIVs			Eliminations			As Reported
Total operating revenues	$	670,522		$	—		$	(625	)	$	669,897		$	675,753	$	—		$	(959	)	$	674,794
Total operating expenses	562,785			885			(625		)	563,045			586,393		1,461			(959		)	586,895
Operating income (loss)	107,737			(885		)	—			106,852			89,360		(1,461		)	—			87,899
Total other non-operating income (expense)	(52,597		)	3,081			(1,559		)	(51,075		)	12,746		4,499			(1,836		)	15,409
Income (loss) before income tax provision	55,140			2,196			(1,559		)	55,777			102,106		3,038			(1,836		)	103,308
Income tax (benefit) provision	(1,606		)	—			—			(1,606		)	26,720		—			—			26,720
Net income (loss)	56,746			2,196			(1,559		)	57,383			75,386		3,038			(1,836		)	76,588
Less: Net income (loss) attributable to noncontrolling interests	82			—			637			719			51		—			1,202			1,253
Net income (loss) attributable to Legg Mason, Inc.	$	56,664		$	2,196		$	(2,196	)	$	56,664		$	75,335	$	3,038		$	(3,038	)	$	75,335



	Six Months Ended
	September 30, 2011												September 30, 2010
	Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported			Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported
Total operating revenues	$	1,388,682		$	—		$	(1,677	)	$	1,387,005		$	1,350,697		$	—		$	(1,738	)	$	1,348,959
Total operating expenses	1,179,417			2,047			(1,677		)	1,179,787			1,157,317			2,704			(1,738		)	1,158,283
Operating income (loss)	209,265			(2,047		)	—			207,218			193,380			(2,704		)	—			190,676
Total other non-operating income (expense)	(66,229		)	8,183			(3,830		)	(61,876		)	(16,225		)	2,106			(1,142		)	(15,261		)
Income (loss) before income tax provision	143,036			6,136			(3,830		)	145,342			177,155			(598		)	(1,142		)	175,415
Income tax provision	26,261			—			—			26,261			53,784			—			—			53,784
Net income (loss)	116,775			6,136			(3,830		)	119,081			123,371			(598		)	(1,142		)	121,631
Less: Net income (loss) attributable to noncontrolling interests	159			—			2,306			2,465			105			—			(1,740		)	(1,635		)
Net income (loss) attributable to Legg Mason, Inc.	$	116,616		$	6,136		$	(6,136	)	$	116,616		$	123,266		$	(598	)	$	598		$	123,266

Fair Value Assets and Liabilities Measured on Recurring Basis of Consolidated Investments Entities [Table Text Block]



	As of September 30, 2011
	Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Total
Assets:
Trading investments:
Hedge funds	$	1,026	$	13,884		$	33,327		$	48,237
Government and corporate securities	—		10,075			—			10,075
Total trading investment securities	1,026		23,959			33,327			58,312
Investments:
CLO loans	—		257,880			—			257,880
CLO bonds	—		11,402			—			11,402
Private equity funds	—		—			23,513			23,513
Total investments	—		269,282			23,513			292,795
Other assets	7,083		—			—			7,083
	$	8,109	$	293,241		$	56,840		$	358,190

Liabilities:
CLO debt	$	—	$	—		$	(267,714	)	$	(267,714	)
Derivative liabilities	—		(4,285		)	—			(4,285		)
	$	—	$	(4,285	)	$	(267,714	)	$	(271,999	)



	As of September 30, 2011
	Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Total
Assets:
Trading investments:
Hedge funds	$	1,026	$	13,884		$	33,327		$	48,237
Government and corporate securities	—		10,075			—			10,075
Total trading investment securities	1,026		23,959			33,327			58,312
Investments:
CLO loans	—		257,880			—			257,880
CLO bonds	—		11,402			—			11,402
Private equity funds	—		—			23,513			23,513
Total investments	—		269,282			23,513			292,795
Other assets	7,083		—			—			7,083
	$	8,109	$	293,241		$	56,840		$	358,190

Liabilities:
CLO debt	$	—	$	—		$	(267,714	)	$	(267,714	)
Derivative liabilities	—		(4,285		)	—			(4,285		)
	$	—	$	(4,285	)	$	(267,714	)	$	(271,999	)



	As of March 31, 2011
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Total
Assets:
Trading investments:
Hedge funds	$	—		$	14,087		$	34,272		$	48,359
Government and corporate securities	—			22,139			—			22,139
Repurchase agreements	—			12,331			—			12,331
Total trading investment securities	—			48,557			34,272			82,829
Investments:
CLO loans	—			275,948			—			275,948
CLO bonds	—			18,813			—			18,813
Private equity funds	—			—			17,879			17,879
Total investments	—			294,761			17,879			312,640
Derivative assets	125			45			—			170
	$	125		$	343,363		$	52,151		$	395,639

Liabilities:
CLO debt	$	—		$	—		$	(278,320	)	$	(278,320	)
Reverse repurchase agreements	—			(18,310		)	—			(18,310		)
Derivative liabilities	(128		)	(14,169		)	—			(14,297		)
	$	(128	)	$	(32,479	)	$	(278,320	)	$	(310,927	)

Fair Value Assets and Liabilities of Consolidated Investment Entities Measured on Recurring Basis, Unobservable Input, Reconciliation [Table Text Block]



	Value as of June 30, 2011			Purchases		Sales			Transfers			Realized and unrealized gains/(losses), net		Value as of September 30, 2011
Assets:
Hedge funds	$	35,718		$	1,647	$	(3,871	)	$	(1,057	)	$	890	$	33,327
Private equity funds	19,792			3,396		—			—			325		23,513
	$	55,510		$	5,043	$	(3,871	)	$	(1,057	)	$	1,215	$	56,840
Liabilities:
CLO debt	$	(278,195	)	$	—	$	—		$	—		$	10,481	$	(267,714	)
Total realized and unrealized gains (losses), net												$	11,696



	Value as of June 30, 2010			Purchases, sales, issuances and settlements, net		Transfers		Realized and unrealized gains/(losses), net			Value as of September 30, 2010
Assets:
Hedge funds	$	13,934		$	2,189	$	2,627	$	962		$	19,712
Private equity funds	14,812			1,011		—		(21		)	15,802
	$	28,746		$	3,200	$	2,627	$	941		$	35,514
Liabilities:
CLO debt	$	(252,444	)	$	—	$	—	$	(378	)	$	(252,822	)
Total realized and unrealized gains (losses), net								$	563



	Value as of March 31, 2011			Purchases		Sales			Transfers		Realized and unrealized gains/(losses), net		Value as of September 30, 2011
Assets:
Hedge funds	$	34,272		$	10,699	$	(15,507	)	$	—	$	3,863	$	33,327
Private equity funds	17,879			3,974		—			—		1,660		23,513
	$	52,151		$	14,673	$	(15,507	)	$	—	$	5,523	$	56,840
Liabilities:
CLO debt	$	(278,320	)	$	—	$	—		$	—	$	10,606	$	(267,714	)
Total realized and unrealized gains (losses), net											$	16,129



	Value as of March 31, 2010		Purchases, sales, issuances and settlements, net		Transfers ⁽¹⁾			Realized and unrealized gains/(losses), net			Value as of September 30, 2010
Assets:
Hedge funds	$	12,374	$	3,389	$	2,627		$	1,322		$	19,712
Private equity funds	13,692		2,654		—			(544		)	15,802
	$	26,066	$	6,043	$	2,627		$	778		$	35,514
Liabilities:
CLO debt	$	—	$	—	$	(249,668	)	$	(3,154	)	$	(252,822	)
Total realized and unrealized gains (losses), net								$	(2,376	)


(1)	Transfers into Level 3 for the six months ended September 30, 2010, primarily represent liabilities recorded upon the initial consolidation of investment vehicles.

Schedule of Fair Value of Investment and Related Liquidation Restriction [Table Text Block]

Category of Investment

Investment Strategy

Fair Value Determined Using NAV

Unfunded Commitments

Remaining Term

Hedge funds

Global, fixed income, macro, long/short equity, systematic, emerging market, U.S. and European hedge

48,237

⁽¹⁾

n/a

Private equity funds

Long/short equity

23,513

⁽²⁾

10,449

8 years

Total

71,750

10,449

n/a – not applicable


(1)	3% daily redemption; 5% monthly redemption; 27% quarterly redemption; 1% annual redemption; and 64% subject to three to five year lock-up or side pocket provisions.


(2)	Liquidations are expected over the remaining term.

Fair Value, Option, Quantitative Disclosures [Table Text Block]

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 September 30, 2011, and March 31, 2011:



	September 30, 2011			March 31, 2011
CLO loans and bonds
Unpaid principal balance	$	287,338		$	299,044
Unpaid principal balance in excess of fair value	(18,056		)	(4,283		)
Fair value	$	269,282		$	294,761

Unpaid principal balance of loans that are more than 90 days past due and also in nonaccrual status	$	2,963		$	4,963
Unpaid principal balance in excess of fair value for loans that are more than 90 days past due and also in nonaccrual status	(1,176		)	(2,837		)
Fair value of loans more than 90 days past due and in nonaccrual status	$	1,787		$	2,126

CLO debt
Principal amounts outstanding	$	300,959		$	300,959
Excess unpaid principal over fair value	(33,245		)	(22,639		)
Fair value	$	267,714		$	278,320

Schedule of Variable Interest Entities Assets Liabilities and Maximum Risk of Loss [Table Text Block]



	As of September 30, 2011
	VIE Assets Not Consolidated		VIE Liabilities Not Consolidated		Equity Interests on the Consolidated Balance Sheet		Maximum Risk of Loss ⁽¹⁾
CLO	$	385,423	$	357,423	$	—	$	449
Public-Private Investment Program⁽²⁾	608,646		2,682		254		538
Other sponsored investment funds	17,602,559		11,469		73,360		107,410
Total	$	18,596,628	$	371,574	$	73,614	$	108,397



	As of March 31, 2011
	VIE Assets Not Consolidated		VIE Liabilities Not Consolidated		Equity Interests on the Consolidated Balance Sheet		Maximum Risk of Loss ⁽¹⁾
CLO	$	382,692	$	354,692	$	—	$	196
Public-Private Investment Program⁽²⁾	692,488		2,002		290		290
Other sponsored investment funds	20,241,752		16,771		83,480		121,899
Total	$	21,316,932	$	373,465	$	83,770	$	122,385


(1)	Includes equity investments the Company has made or is required to make and any earned but uncollected management fees.


(2)	The Company continues to manage funds under the Public-Private Investment Program. As a result of restructuring its investment during the three months ended June 30, 2010, the Company remains a sponsor but no longer has a variable interest in certain of the Public-Private Investment Program funds.

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph d, e

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a),(c)(1),(d)(1)

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph c(1)

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 28

-Subparagraph (c)(2),(d),(e)

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2)

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph d(1)

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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