Earnings Per Share

6 Months Ended

Sep. 30, 2013

Earnings Per Share Disclosure [Abstract]

Earnings Per Share

10. Earnings Per Share

Basic EPS is calculated by dividing Net Income Attributable to Legg Mason, Inc. by the weighted-average number of shares outstanding. The calculation of weighted-average shares includes common shares, shares exchangeable into common stock and unvested restricted shares deemed to be participating securities. Diluted EPS is similar to basic EPS, but adjusts for the effect of potentially issuable common shares, except when inclusion is antidilutive.

During the three and six months ended September 30, 2013, Legg Mason purchased and retired 2,693 and 5,317 shares of its common stock for $89,996 and $179,996 through open market purchases under the current share repurchase authorization. These repurchases reduced weighted-average shares outstanding by 3,912 and 2,447 and shares for the three and six months ended September 30, 2013, respectively.

The following table presents the computations of basic and diluted EPS:

	Three Months Ended September 30,
	2013				2012
	Basic		Diluted		Basic		Diluted
Weighted-average basic shares outstanding	122,974		122,974		134,098		134,098
Potential common shares:
Employee stock options	—		233		—		30
Weighted-average diluted shares	122,974		123,207		134,098		134,128
Net Income	$	87,698	$	87,698	$	81,095	$	81,095
Less: Net income attributable to noncontrolling interests	1,410		1,410		298		298
Net Income Attributable to Legg Mason, Inc.	$	86,288	$	86,288	$	80,797	$	80,797
Net Income per share Attributable to Legg Mason, Inc. Common Shareholders	$	0.70	$	0.70	$	0.60	$	0.60

	Six Months Ended September 30,
	2013				2012
	Basic		Diluted		Basic			Diluted
Weighted-average basic shares outstanding	124,095		124,095		136,396			136,396
Potential common shares:
Employee stock options	—		213		—			29
Weighted-average diluted shares	124,095		124,308		136,396			136,425
Net Income	$	136,793	$	136,793	$	68,111		$	68,111
Less: Net income (loss) attributable to noncontrolling interests	2,690		2,690		(3,228		)	(3,228		)
Net Income Attributable to Legg Mason, Inc.	$	134,103	$	134,103	$	71,339		$	71,339
Net Income per Share Attributable to Legg Mason, Inc. Common Shareholders	$	1.08	$	1.08	$	0.52		$	0.52

The diluted EPS calculations for the three and six months ended September 30, 2013 and 2012, exclude any potential common shares issuable under the 14,205 warrants issued in connection with the repurchase of Legg Mason's outstanding 2.5% Convertible Senior Notes in exchange for the note conversion feature because the market price of Legg Mason common stock did not exceed the exercise price, and therefore the warrants would be deemed antidilutive.

Options to purchase 3,846 and 6,011 shares for the three months ended September 30, 2013 and 2012, respectively, and 4,423 and 5,897 shares for the six months ended September 30, 2013 and 2012, respectively, were not included in the computation of diluted EPS because the presumed proceeds from exercising such options, including the related income tax benefits, exceeded the average price of the common shares for the period and therefore the options are deemed antidilutive. Further, market-based options are excluded from potential dilution until the designated market condition is met.