Variable Interest Entities and Consolidation of Investment Vehicles (Tables)

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2011

Dec. 31, 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



	December 31, 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	$	2,204,535	$	70,678	$	(43,667	)	$	2,231,546	$	2,378,226	$	122,963	$	(54,633	)	$	2,446,556
Non-current assets	5,847,514		292,002		—			6,139,516		5,946,737		314,463		—			6,261,200
Total assets	$	8,052,049	$	362,680	$	(43,667	)	$	8,371,062	$	8,324,963	$	437,426	$	(54,633	)	$	8,707,756
Current liabilities	$	891,674	$	9,785	$	(521	)	$	900,938	$	914,803	$	55,094	$	(925	)	$	968,972
Long-term debt of CIVs	—		265,478		—			265,478		—		278,320		—			278,320
Other non-current liabilities	1,574,860		3,998		—			1,578,858		1,649,815		3,553		—			1,653,368
Total liabilities	2,466,534		279,261		(521		)	2,745,274		2,564,618		336,967		(925		)	2,900,660
Redeemable non-controlling interests	911		—		27,905			28,816		976		—		35,736			36,712
Total stockholders’ equity	5,584,604		83,419		(71,051		)	5,596,972		5,759,369		100,459		(89,444		)	5,770,384
Total liabilities and equity	$	8,052,049	$	362,680	$	(43,667	)	$	8,371,062	$	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
	December 31, 2011												December 31, 2010
	Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported			Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported
Total operating revenues	$	627,731		$	—		$	(753	)	$	626,978		$	723,087		$	—		$	(1,159	)	$	721,928
Total operating expenses	567,550			859			(754		)	567,655			625,452			643			(1,159		)	624,936
Operating income (loss)	60,181			(859		)	1			59,323			97,635			(643		)	—			96,992
Total other non-operating income (expense)	(19,357		)	7,424			358			(11,575		)	(2,177		)	(8,462		)	803			(9,836		)
Income (loss) before income tax provision	40,824			6,565			359			47,748			95,458			(9,105		)	803			87,156
Income tax provision	12,607			—			—			12,607			33,792			—			—			33,792
Net income (loss)	28,217			6,565			359			35,141			61,666			(9,105		)	803			53,364
Less: Net income (loss) attributable to noncontrolling interests	85			—			6,924			7,009			46			—			(8,302		)	(8,256		)
Net income (loss) attributable to Legg Mason, Inc.	$	28,132		$	6,565		$	(6,565	)	$	28,132		$	61,620		$	(9,105	)	$	9,105		$	61,620



	Nine Months Ended
	December 31, 2011												December 31, 2010
	Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported			Balance Before Consolidation of CIVs			CIVs			Eliminations			As Reported
Total operating revenues	$	2,016,413		$	—		$	(2,430	)	$	2,013,983		$	2,073,784		$	—		$	(2,897	)	$	2,070,887
Total operating expenses	1,746,967			2,906			(2,431		)	1,747,442			1,782,769			3,347			(2,897		)	1,783,219
Operating income (loss)	269,446			(2,906		)	1			266,541			291,015			(3,347		)	—			287,668
Total other non-operating income (expense)	(85,586		)	15,607			(3,472		)	(73,451		)	(18,402		)	(6,356		)	(339		)	(25,097		)
Income (loss) before income tax provision	183,860			12,701			(3,471		)	193,090			272,613			(9,703		)	(339		)	262,571
Income tax provision	38,868			—			—			38,868			87,576			—			—			87,576
Net income (loss)	144,992			12,701			(3,471		)	154,222			185,037			(9,703		)	(339		)	174,995
Less: Net income (loss) attributable to noncontrolling interests	244			—			9,230			9,474			151			—			(10,042		)	(9,891		)
Net income (loss) attributable to Legg Mason, Inc.	$	144,748		$	12,701		$	(12,701	)	$	144,748		$	184,886		$	(9,703	)	$	9,703		$	184,886

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



	As of December 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	$	977	$	9,366		$	26,547		$	36,890
Investments:
CLO loans	—		256,470			—			256,470
CLO bonds	—		10,312			—			10,312
Private equity funds	—		—			23,871			23,871
Total investments	—		266,782			23,871			290,653
	$	977	$	276,148		$	50,418		$	327,543

Liabilities:
CLO debt	$	—	$	—		$	(265,478	)	$	(265,478	)
Derivative liabilities	—		(3,998		)	—			(3,998		)
	$	—	$	(3,998	)	$	(265,478	)	$	(269,476	)



	As of December 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	$	977	$	9,366		$	26,547		$	36,890
Investments:
CLO loans	—		256,470			—			256,470
CLO bonds	—		10,312			—			10,312
Private equity funds	—		—			23,871			23,871
Total investments	—		266,782			23,871			290,653
	$	977	$	276,148		$	50,418		$	327,543

Liabilities:
CLO debt	$	—	$	—		$	(265,478	)	$	(265,478	)
Derivative liabilities	—		(3,998		)	—			(3,998		)
	$	—	$	(3,998	)	$	(265,478	)	$	(269,476	)



	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 September 30, 2011			Purchases		Sales			Transfers		Realized and unrealized gains/(losses), net		Value as of December 31, 2011
Assets:
Hedge funds	$	33,327		$	3,794	$	(10,954	)	$	—	$	380	$	26,547
Private equity funds	23,513			—		—			—		358		23,871
	$	56,840		$	3,794	$	(10,954	)	$	—	$	738	$	50,418
Liabilities:
CLO debt	$	(267,714	)	$	—	$	—		$	—	$	2,236	$	(265,478	)
Total realized and unrealized gains (losses), net											$	2,974



	Value as of September 30, 2010			Purchases, sales, issuances and settlements, net			Transfers		Realized and unrealized gains/(losses), net			Value as of December 31, 2010
Assets:
Hedge funds	$	19,712		$	(849	)	$	3,235	$	3,196		$	25,294
Private equity funds	15,802			1			—		(183		)	15,620
	$	35,514		$	(848	)	$	3,235	$	3,013		$	40,914
Liabilities:
CLO debt	$	(252,822	)	$	—		$	—	$	(15,059	)	$	(267,881	)
Total realized and unrealized gains (losses), net									$	(12,046	)



	Value as of March 31, 2011			Purchases		Sales			Transfers		Realized and unrealized gains/(losses), net		Value as of December 31, 2011
Assets:
Hedge funds	$	34,272		$	14,493	$	(26,461	)	$	—	$	4,243	$	26,547
Private equity funds	17,879			3,974		—			—		2,018		23,871
	$	52,151		$	18,467	$	(26,461	)	$	—	$	6,261	$	50,418
Liabilities:
CLO debt	$	(278,320	)	$	—	$	—		$	—	$	12,842	$	(265,478	)
Total realized and unrealized gains (losses), net											$	19,103



	Value as of March 31, 2010		Purchases, sales, issuances and settlements, net		Transfers ⁽¹⁾			Realized and unrealized gains/(losses), net			Value as of December 31, 2010
Assets:
Hedge funds	$	12,374	$	2,540	$	5,862		$	4,518		$	25,294
Private equity funds	13,692		2,655		—			(727		)	15,620
	$	26,066	$	5,195	$	5,862		$	3,791		$	40,914
Liabilities:
CLO debt	$	—	$	—	$	(249,668	)	$	(18,213	)	$	(267,881	)
Total realized and unrealized gains (losses), net								$	(14,422	)


(1)	Transfers into Level 3 for the nine months ended December 31, 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

36,890

⁽¹⁾

n/a

Private equity funds

Long/short equity

23,871

⁽²⁾

9,610

8 years

Total

60,761

9,610

n/a – not applicable


(1)	4% daily redemption; 6% monthly redemption; 19% quarterly redemption; and 71% 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 December 31, 2011, and March 31, 2011:



	December 31, 2011			March 31, 2011
CLO loans and bonds
Unpaid principal balance	$	279,624		$	299,044
Unpaid principal balance in excess of fair value	(12,842		)	(4,283		)
Fair value	$	266,782		$	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	(1,132		)	(2,837		)
Fair value of loans more than 90 days past due and in nonaccrual status	$	1,831		$	2,126

CLO debt
Principal amounts outstanding	$	300,959		$	300,959
Excess unpaid principal over fair value	(35,481		)	(22,639		)
Fair value	$	265,478		$	278,320

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



	As of December 31, 2011
	VIE Assets Not Consolidated		VIE Liabilities Not Consolidated		Equity Interests on the Consolidated Balance Sheet		Maximum Risk of Loss ⁽¹⁾
CLO	$	394,435	$	366,435	$	—	$	449
Public-Private Investment Program	554,570		2,878		232		375
Other sponsored investment funds	16,430,529		2,048		67,359		103,584
Total	$	17,379,534	$	371,361	$	67,591	$	104,408



	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	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.

- 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

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

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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-Topic 825

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

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-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph d(1)

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-Name Statement of Financial Accounting Standard (FAS)

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