Intangible Assets and Goodwill

6 Months Ended

Sep. 30, 2012

Intangible Assets And Goodwill Disclosure [Abstract]

5. Intangible Assets and Goodwill

The following table reflects the components of intangible assets as of:



	September 30, 2012			March 31, 2012
Amortizable asset management contracts
Cost	$	205,880		$	206,411
Accumulated amortization	(179,452		)	(172,974		)
Net	26,428			33,437
Indefinite–life intangible assets
Fund management contracts	3,753,688			3,753,629
Trade names	69,800			69,800
	3,823,488			3,823,429
Intangible assets, net	$	3,849,916		$	3,856,866

As of September 30, 2012, amortizable asset management contracts are being amortized over a weighted-average remaining life of 2.6 years.

Estimated amortization expense for each of the next five fiscal years is as follows:



Remaining 2013	$	7,010
2014	11,835
2015	2,920
2016	2,663
2017	2,000
Thereafter	—
Total	$	26,428

Indefinite-life fund management contracts include $2,502,000 of mutual fund contracts acquired in the Citigroup Asset Management ("CAM") acquisition, principally managed by ClearBridge Advisors LLC and Western Asset Management Company, which as of Legg Mason's most recent annual impairment test as of December 31, 2011, had an assessed fair value that exceeded its carrying value by 5%. Given the current uncertainty regarding future market conditions, should market performance, flows, or related AUM levels decrease in the near term such that cash flow projections deviate from current projections, it is reasonably possible that the asset could be deemed to be impaired by a material amount.

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	(10,792		)	—			(10,792		)
Other, including changes in foreign exchange rates	(8,107		)	—			(8,107		)
Balance as of September 30, 2012	$	2,418,046		$	(1,161,900	)	$	1,256,146

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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