Investments and Fair Values of Assets and Liabilities (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2013

Jun. 30, 2012

Mar. 31, 2013

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

Fair values of financial assets and liabilities



	As of June 30, 2013
	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	$	347,063		$	—	$	—		$	347,063
Time deposits and other	—			108,754		—			108,754
Total cash equivalents	347,063			108,754		—			455,817
Current investments:
Trading investments relating to long-term incentive compensation plans⁽²⁾	106,734			—		—			106,734
Trading proprietary fund products and other investments⁽³⁾	184,578			67,302		233			252,113
Equity method investments relating to long-term incentive compensation plans, proprietary fund products and other investments⁽⁴⁾⁽⁵⁾	11,939			16,881		—			28,820
Total current investments	303,251			84,183		233			387,667
Available-for-sale investment securities⁽⁶⁾	2,033			9,960		12			12,005
Investments in partnerships, LLCs and other⁽⁶⁾	679			2,731		28,018			31,428
Equity method investments in partnerships and LLCs⁽⁴⁾⁽⁶⁾	1,533			797		63,353			65,683
Derivative assets:
Currency and market hedges	3,900			—		—			3,900
Other investments⁽⁶⁾	—			—		93			93
Total	$	658,459		$	206,425	$	91,709		$	956,593
Liabilities:
Contingent consideration liability	$	—		$	—	$	(21,931	)	$	(21,931	)
Derivative liabilities:
Currency and market hedges	(1,794		)	—		—			(1,794		)
Total	$	(1,794	)	$	—	$	(21,931	)	$	(23,725	)



	As of March 31, 2013
	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	$	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 proprietary fund products and other 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	$	—		$	—	$	(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 net asset value ("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 proprietary fund products and other investments primarily represent mutual funds that are invested approximately 62% and 38% in equity and debt securities, respectively, as of June 30, 2013, and were invested 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 approximates fair value) relating to long-term incentive compensation plans of $16,881 and $43,741 as of June 30, 2013 and March 31, 2013, respectively, and proprietary fund products and other investments of $11,939 and $12,600 as of June 30, 2013 and March 31, 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.

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



	Value as of March 31, 2013			Purchases		Sales			Redemptions/ Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net			Value as of June 30, 2013
Assets:
Trading proprietary fund products and other investments	$	246		$	—	$	—		$	(13	)	$	—	$	—		$	233
Investments in partnerships, LLCs and other	27,762			800		(193		)	(165		)	—		(186		)	28,018
Equity method investments in partnerships and LLCs	66,338			196		(313		)	(3,572		)	—		704			63,353
Other investments	111			—		—			—			—		(6		)	105
	$	94,457		$	996	$	(506	)	$	(3,750	)	$	—	$	512		$	91,709
Liabilities:
Contingent consideration liability	$	(21,900	)	$	—	$	—		$	—		$	—	$	(31	)	$	(21,931	)



	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

Fair value of investments determined using net asset value



		Fair Value Determined Using NAV								As of June 30, 2013
Category of Investment	Investment Strategy	June 30, 2013				March 31, 2013				Unfunded Commitments		Remaining Term
Funds-of-hedge funds	Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge	$	39,161	(1)		$	38,811	(1	)	n/a		n/a
Hedge funds	Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge	23,138				24,716				$	20,000	n/a
Private equity funds	Long/short equity	22,982		(2	)	23,763		(2	)	5,043		Up to 7 years
Other	Various	2,116				2,408				n/a		Various ⁽³⁾
Total		$	87,397	(4	)	$	89,698	(4	)	$	25,043

n/a-not applicable


(1)	49% monthly redemption; 51% quarterly redemption. Any remaining lock-up expired in June 2013.

(2) Liquidations are expected over the remaining term.


(3)	Of this balance, 5% has a remaining term of less than one year and 95% has a remaining term of 20 years.


(4)	Comprised of approximately 33% and 67% of Level 2 and Level 3 assets, respectively, as of June 30, 2013 and 32% and 68% of Level 2 and Level 3 assets, respectively, as of March 31, 2013.

- 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 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 2: 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 3: 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 4: 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 5: 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 6: 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 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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