Fair Values of Assets and Liabilities (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Mar. 31, 2012

Investments and Fair Values of Assets and Liabilities Disclosure [Abstract]

Fair values of financial assets and liabilities



	As of June 30, 2012
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash equivalents⁽¹⁾:
Money market funds	$	428,517		$	—	$	—	$	428,517
Time deposits	—			90,791		—		90,791
Total cash equivalents	428,517			90,791		—		519,308
Investment securities:
Trading investments relating to long-term incentive compensation plans⁽²⁾	91,152			—		—		91,152
Trading proprietary fund products and other investments⁽³⁾	116,446			80,802		—		197,248
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments⁽⁴⁾⁽⁵⁾	11,586			34,223		11,296		57,105
Total current investments	219,184			115,025		11,296		345,505
Available-for-sale investment securities	2,108			10,138		12		12,258
Investments in partnerships, LLCs and other	751			2,646		28,513		31,910
Equity method investments in partnerships and LLCs⁽⁴⁾	1,322			3		160,602		161,927
Derivative assets:
Currency and market hedges	1,129			—		—		1,129
Other investments	—			—		116		116
	$	653,011		$	218,603	$	200,539	$	1,072,153
Liabilities:
Derivative liabilities:
Currency and market hedges	$	(762	)	$	—	$	—	$	(762	)



	As of March 31, 2012
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash equivalents⁽¹⁾:
Money market funds	$	893,738		$	—	$	—	$	893,738
Time deposits	—			88,289		—		88,289
Total cash equivalents	893,738			88,289		—		982,027
Investment securities:
Trading investments relating to long-term incentive compensation plans⁽²⁾	111,257			—		—		111,257
Trading proprietary fund products and other investments⁽³⁾	143,002			79,583		—		222,585
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments⁽⁴⁾⁽⁵⁾	11,565			54,934		11,778		78,277
Total current investments	265,824			134,517		11,778		412,119
Available-for-sale investment securities	2,091			9,810		12		11,913
Investments in partnerships, LLCs and other	851			5,351		28,763		34,965
Equity method investments in partnerships and LLCs⁽⁴⁾	1,415			1,348		166,438		169,201
Derivative assets:
Currency and market hedges	84			—		—		84
Other investments	—			—		112		112
	$	1,164,003		$	239,315	$	207,103	$	1,610,421
Liabilities:
Derivative liabilities:
Currency and market hedges	$	(886	)	$	—	$	—	$	(886	)

(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 net asset value ("NAV") and are classified as Level 1. Cash investments in time deposits 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 proprietary fund products and other investments primarily represent mutual funds that are invested approximately 54% and 46% in equity and debt securities as of June 30, 2012, respectively, and were invested approximately 52% and 48% in equity and debt securities as of March 31, 2012, respectively.


(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 approximates fair value) relating to long-term incentive compensation plans of $34,223 and $54,934 as of June 30, 2012 and March 31, 2012, respectively, and proprietary fund products and other investments of $22,881 and $23,343 as of June 30, 2012 and March 31, 2012, respectively, which are classified as Investment securities on the Consolidated Balance Sheets.

Summary of changes in financial assets measured at fair value using significant unobservable inputs (Level 3)



	Value as of March 31, 2012		Purchases		Sales			Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net			Value as of June 30, 2012
Assets:
Equity method investments in proprietary fund products	$	11,778	$	—	$	—		$	—		$	—	$	(482	)	$	11,296
Investments in partnerships, LLCs and other	28,763		—		—			(151		)	—		(99		)	28,513
Equity method investments in partnerships and LLCs	166,438		90		(1,602		)	(5,614		)	—		1,290			160,602
Other investments	124		—		—			—			—		4			128
	$	207,103	$	90	$	(1,602	)	$	(5,765	)	$	—	$	713		$	200,539



	Value as of March 31, 2011		Purchases		Sales			Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net		Value as of June 30, 2011
Assets:
Trading proprietary fund products and other investments	$	11,378	$	—	$	(11,641	)	$	—		$	—	$	543	$	280
Equity method investments in proprietary fund products	12,167		—		—			—			—		73		12,240
Investments in partnerships, LLCs and other	22,167		—		—			(215		)	—		—		21,952
Equity method investments in partnerships and LLCs	153,931		1,330		(1,657		)	(12,078		)	—		1,581		143,107
Other investments	282		—		—			—			—		972		1,254
	$	199,925	$	1,330	$	(13,298	)	$	(12,293	)	$	—	$	3,169	$	178,833

Fair value of investments determined using net asset value



		Fair Value Determined Using NAV						As of June 30, 2012
Category of Investment	Investment Strategy	June 30, 2012			March 31, 2012			Unfunded Commitments		Remaining Term
Funds-of-hedge funds	Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge	$	44,878	(1)	$	51,251	(2)	n/a		n/a
Hedge funds	Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge	26,367			25,460			$	20,000	n/a
Private equity funds	Long/short equity	27,664		(3)	27,927		(3)	5,932		Up to 8 years
Private fund ⁽⁴⁾	Fixed income, residential and commercial mortgage-backed securities	89,003		(3)	89,323		(3)	n/a		6 years, subject to two one-year extensions
Other	Various	2,153			2,450			n/a		Various ⁽⁵⁾
Total		$	190,065	(6)	$	196,411	(6)	$	25,932

n/a-not applicable


(1)	59% monthly redemption; 41% quarterly redemption, of which 37% is subject to two-year lock-up.


(2)	63% monthly redemption; 37% quarterly redemption, of which 36% is subject to two-year lock-up.

(3) Liquidations are expected over the remaining term.

(4) Redemptions prohibited until November 2012.


(5)	4% remaining term of less than one year and 96% 20-year remaining term.


(6)	Comprised of approximately 13% and 87% of Level 2 and Level 3 assets, respectively, as of both June 30, 2012 and March 31, 2012.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of investees that calculate net asset value per share (including by unit, membership interest, or other equity (ownership interest) unit measure) (alternative investments), whether measured at fair value on a recurring or nonrecurring basis, by major category of assets and liabilities (as defined), including, for example, (i) fair value measurements at the reporting date, (ii) the level within the fair value hierarchy in which the fair value measurements fall, (iii) a reconciliation of beginning and ending balances for those alternative investments that are measured at fair value using unobservable inputs (Level 3 - fair value hierarchy fair value measurement inputs), (iv) the inputs and valuation techniques used to measure fair value, (v) a discussion of changes to valuation techniques and inputs, if any, during the period, (vi) a description of the nature and risk associated with the alternative investments, and (vii) a discussion of the probability that any of the alternative investments are to be sold.

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- Definition

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-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 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-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 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-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.

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