10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-8529
LEGG MASON, INC.
(Exact name of registrant as specified in its charter)
MARYLAND	52-1200960
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
100 International Drive - Baltimore, MD	21202
(Address of principal executive offices)	(Zip code)
(410) 539-0000
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 

Yes X No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	X		Accelerated filer
Non-accelerated filer		(Do not check if a smaller reporting company)	Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No X

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

93,599,404 shares of common stock as of the close of business on August 1, 2017.

TABLE OF CONTENTS

		Page
	PART I
	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
	CONSOLIDATED BALANCE SHEETS
	CONSOLIDATED STATEMENTS OF INCOME
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
	CONSOLIDATED STATEMENTS OF CASH FLOWS
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	69
Item 4.	Controls and Procedures	69
	PART II
	OTHER INFORMATION
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 6.	Exhibits	71

PART I. FINANCIAL INFORMATION

Item 1.      Financial Statements

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	June 30, 2017			March 31, 2017
ASSETS
Current Assets
Cash and cash equivalents	$	491,301		$	733,709
Cash and cash equivalents of consolidated investment vehicles	679			651
Restricted cash	15,152			16,046
Receivables:
Investment advisory and related fees	480,269			433,192
Other	64,631			70,527
Investment securities	394,960			423,619
Investment securities of consolidated investment vehicles	81,401			49,901
Other	74,942			74,102
Other current assets of consolidated investment vehicles	2,266			—
Total Current Assets	1,605,601			1,801,747
Fixed assets, net	156,008			159,662
Intangible assets, net	3,999,526			4,034,380
Goodwill	1,924,211			1,924,889
Deferred income taxes	202,823			202,843
Other	156,292			156,907
Other assets of consolidated investment vehicles	9,968			9,987
TOTAL ASSETS	$	8,054,429		$	8,290,415
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current Liabilities
Accrued compensation	$	285,320		$	486,679
Accounts payable and accrued expenses	194,755			181,793
Contingent consideration	14,986			22,316
Other	89,573			117,863
Other current liabilities of consolidated investment vehicles	1,750			736
Total Current Liabilities	586,384			809,387
Deferred compensation	103,624			87,757
Deferred income taxes	320,113			329,229
Contingent consideration	5,711			14,494
Other	137,768			138,737
Long-term debt, net	2,221,853			2,221,867
TOTAL LIABILITIES	3,375,453			3,601,471
Commitments and Contingencies (Note 8)
REDEEMABLE NONCONTROLLING INTERESTS	684,203			677,772
STOCKHOLDERS' EQUITY
Common stock, par value $.10; authorized 500,000,000 shares; issued 94,119,547 shares for June 2017 and 95,726,628 shares for March 2017	9,412			9,573
Additional paid-in capital	2,311,752			2,385,726
Employee stock trust	(24,122		)	(24,057		)
Deferred compensation employee stock trust	24,122			24,057
Retained earnings	1,741,362			1,694,859
Accumulated other comprehensive loss, net	(95,994		)	(106,784		)
Total stockholders' equity attributable to Legg Mason, Inc.	3,966,532			3,983,374
Nonredeemable noncontrolling interest	28,241			27,798
TOTAL STOCKHOLDERS' EQUITY	3,994,773			4,011,172
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	8,054,429		$	8,290,415

See Notes to Consolidated Financial Statements

3

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,
	2017			2016
OPERATING REVENUES
Investment advisory fees:
Separate accounts	$	250,046		$	226,853
Funds	382,228			363,463
Performance fees	81,537			17,459
Distribution and service fees	78,906			91,382
Other	1,125			1,008
Total Operating Revenues	793,842			700,165
OPERATING EXPENSES
Compensation and benefits	413,307			358,625
Distribution and servicing	122,349			124,663
Communications and technology	50,303			52,732
Occupancy	24,408			33,142
Amortization of intangible assets	6,339			5,703
Impairment charges	34,000			—
Contingent consideration fair value adjustments	(16,550		)	(18,000		)
Other	52,481			69,745
Total Operating Expenses	686,637			626,610
OPERATING INCOME	107,205			73,555
NON-OPERATING INCOME (EXPENSE)
Interest income	1,468			1,848
Interest expense	(29,266		)	(24,565		)
Other income, net	11,388			6,585
Non-operating income of consolidated investment vehicles, net	997			3,228
Total Non-Operating Income (Expense)	(15,413		)	(12,904		)
INCOME BEFORE INCOME TAX PROVISION	91,792			60,651
Income tax provision	28,255			15,311
NET INCOME	63,537			45,340
Less: Net income attributable to noncontrolling interests	12,617			11,888
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$	50,920		$	33,452
NET INCOME PER SHARE ATTRIBUTABLE TO LEGG MASON, INC. SHAREHOLDERS:
Basic	$	0.52		$	0.31
Diluted	0.52			0.31
DIVIDENDS DECLARED PER SHARE	$	0.28		$	0.22

See Notes to Consolidated Financial Statements

4

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

	Three Months Ended June 30,
	2017		2016
NET INCOME	$	63,537	$	45,340
Other comprehensive income (loss):
Foreign currency translation adjustment	10,671		(16,183		)
Unrealized losses on interest rate swap:
Unrealized losses on interest rate swap, net of tax benefit of $1,889	—		(3,007		)
Reclassification adjustment for losses included in net income, net of tax benefit of $203	—		324
Net unrealized losses on interest rate swap	—		(2,683		)
Actuarial losses on defined benefit pension plan:
Actuarial losses on defined benefit pension plan	—		(6,112		)
Reclassification of unrecognized loss on defined benefit pension plan	119		—
Net actuarial losses on defined benefit pension plan	119		(6,112		)
Total other comprehensive income (loss)	10,790		(24,978		)
COMPREHENSIVE INCOME	74,327		20,362
Less: Comprehensive income attributable to noncontrolling interests	12,284		13,886
COMPREHENSIVE INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$	62,043	$	6,476

See Notes to Consolidated Financial Statements

5

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands)

(Unaudited)

	Three Months Ended June 30,
	2017			2016
STOCKHOLDERS' EQUITY ATTRIBUTABLE TO LEGG MASON, INC.
COMMON STOCK
Beginning balance	$	9,573		$	10,701
Stock options exercised	26			7
Deferred compensation employee stock trust	1			1
Stock-based compensation	83			34
Employee tax withholdings by settlement of net share transactions	(34		)	(36		)
Shares repurchased and retired	(237		)	(347		)
Ending balance	9,412			10,360
ADDITIONAL PAID-IN CAPITAL
Beginning balance	2,385,726			2,693,113
Stock options exercised	7,380			1,803
Deferred compensation employee stock trust	125			122
Stock-based compensation	20,710			25,860
Performance-based restricted share units related to the acquisition of Clarion Partners	—			11,121
Employee tax withholdings by settlement of net share transactions	(12,777		)	(11,625		)
Shares repurchased and retired	(89,412		)	(111,326		)
Redeemable noncontrolling interest reclassification for affiliate management equity plans	—			(3,632		)
Ending balance	2,311,752			2,605,436
EMPLOYEE STOCK TRUST
Beginning balance	(24,057		)	(26,263		)
Shares issued to plans	(126		)	(123		)
Distributions and forfeitures	61			760
Ending balance	(24,122		)	(25,626		)
DEFERRED COMPENSATION EMPLOYEE STOCK TRUST
Beginning balance	24,057			26,263
Shares issued to plans	126			123
Distributions and forfeitures	(61		)	(760		)
Ending balance	24,122			25,626
RETAINED EARNINGS
Beginning balance	1,694,859			1,576,242
Net Income Attributable to Legg Mason, Inc.	50,920			33,452
Dividends declared	(27,352		)	(23,581		)
Reclassifications to noncontrolling interest for:
EnTrustPermal combination	—			(15,500		)
Net increase in estimated redemption value of affiliate management equity plans and affiliate noncontrolling interests	(1,392		)	(619		)
Adoption of new stock-based compensation guidance	24,327			—
Ending balance	1,741,362			1,569,994
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET
Beginning balance	(106,784		)	(66,493		)
Net unrealized losses on interest rate swap	—			(2,683		)
Net actuarial losses on defined benefit pension plan	119			(6,112		)
Foreign currency translation adjustment	10,671			(16,183		)
Ending balance	(95,994		)	(91,471		)
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO LEGG MASON, INC.	3,966,532			4,094,319
NONREDEEMABLE NONCONTROLLING INTEREST
Beginning balance	27,798			22,202
Net income attributable to noncontrolling interests	2,261			1,851
Distributions	(1,818		)	(802		)
Ending balance	28,241			23,251
TOTAL STOCKHOLDERS’ EQUITY	$	3,994,773		$	4,117,570

See Notes to Consolidated Financial Statements

6

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Three Months Ended June 30,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	63,537		$	45,340
Adjustments to reconcile Net Income to net cash used in operations:
Impairments of intangible assets	34,000			—
Depreciation and amortization	18,473			20,918
Accretion and amortization of securities discounts and premiums, net	936			659
Stock-based compensation, including $15,200 related to Clarion Partners affiliate management equity plan in 2016	21,068			37,471
Net unrealized (gains) losses on investments	(5,496		)	(3,107		)
Net (gains) and earnings on investments	(5,546		)	(2,568		)
Net (gains) losses of consolidated investment vehicles	(997		)	(3,199		)
Deferred income taxes	22,183			16,093
Contingent consideration fair value adjustments	(16,550		)	(18,000		)
Other	(76		)	1,419
Decrease (increase) in assets:
Investment advisory and related fees receivable	(46,340		)	4,564
Net sales of trading and other investments	41,370			16,392
Other receivables	(9,778		)	(8,930		)
Other assets	(1,330		)	3,685
Assets of consolidated investment vehicles	(32,803		)	(40,705		)
Increase (decrease) in liabilities:
Accrued compensation	(201,486		)	(236,848		)
Deferred compensation	15,718			20,076
Accounts payable and accrued expenses	12,378			17,145
Other liabilities	(23,855		)	(38,509		)
Other liabilities of consolidated investment vehicles	1,014			2,134
CASH USED IN OPERATING ACTIVITIES	$	(113,580	)	$	(165,970	)

7

LEGG MASON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Dollars in thousands)

(Unaudited)

	Three Months Ended June 30,
	2017			2016
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for fixed assets	$	(8,371	)	$	(11,971	)
Business acquisitions, net of cash acquired of $33,543 in 2016	—			(997,933		)
Contingent payment from prior sale of business	2,561			—
Change in restricted cash	1,117			1,088
Returns of capital and proceeds from sales and maturities of investments	200			1,000
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(4,493		)	(1,007,816		)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	—			460,000
Debt issuance costs	—			(806		)
Issuances of common stock for stock-based compensation	7,532			1,933
Employee tax withholdings by settlement of net share transactions	(12,811		)	(11,661		)
Repurchases of common stock	(89,649		)	(111,673		)
Dividends paid	(21,153		)	(21,878		)
Distributions to affiliate noncontrolling interests	(17,731		)	(2,306		)
Net subscriptions/(redemptions) attributable to noncontrolling interests	10,266			21,371
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(123,546		)	334,980
EFFECT OF EXCHANGE RATES ON CASH	(789		)	368
NET DECREASE IN CASH AND CASH EQUIVALENTS	(242,408		)	(838,438		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	733,709			1,329,126
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	491,301		$	490,688
SUPPLEMENTAL DISCLOSURE
Cash paid for:
Income taxes, net of refunds of $1,903 in 2017	$	8,132		$	5,483
Interest	11,094			5,842

See Notes to Consolidated Financial Statements

8

LEGG MASON, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except per share amounts or unless otherwise noted)

June 30, 2017

(Unaudited)

1. Interim Basis of Reporting

The accompanying unaudited interim consolidated financial statements of Legg Mason, Inc. and its subsidiaries (collectively “Legg Mason”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"). The interim consolidated financial statements have been prepared using the interim basis of reporting and, as such, reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. The preparation of interim consolidated financial statements requires management to make assumptions and estimates that affect the amounts reported in the interim consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates and the differences could have a material impact on the interim consolidated financial statements. Terms such as “we,” “us,” “our,” and “Company” refer to Legg Mason.

The nature of Legg Mason's business is such that the results of any interim period are not necessarily indicative of the results of a full year. Certain disclosures included in the Company's annual report are not required to be included on an interim basis in the Company's quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation, including amounts for cash flows, comprehensive income, and changes in equity.

The information contained in the interim consolidated financial statements should be read in conjunction with Legg Mason's latest Annual Report on Form 10-K filed with the SEC.

2. Significant Accounting Policies

Consolidation

In the normal course of its business, Legg Mason sponsors and manages various types of investment products. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinated management fees or other incentive fees. Legg Mason's exposure to risk in these entities is generally limited to any equity investment it has made or is required to make, and any earned but uncollected management fees. Legg Mason did not sell or transfer investment assets to any of these investment products. In accordance with financial accounting standards, Legg Mason consolidates certain sponsored investment products, some of which are designated and reported as consolidated investment vehicles (“CIVs”). The consolidation of sponsored investment products, including those designated as CIVs, has no impact on Net Income Attributable to Legg Mason, Inc. and does not have a material impact on Legg Mason's consolidated operating results. The change in the value of all consolidated sponsored investment products is recorded in Non-Operating Income (Expense) and reflected in Net income attributable to noncontrolling interests.

Certain of the investment products Legg Mason sponsors and manages are considered to be variable interest entities ("VIEs") (as further described below) while others are considered to be voting rights entities (“VREs”) subject to traditional consolidation concepts based on ownership rights. Legg Mason may fund the initial cash investment in certain VRE investment products to generate an investment performance track record in order to attract third-party investors in the product. Legg Mason's initial investment in a new product typically represents 100% of the ownership in that product. As further discussed below, the products with “seed capital investments” are consolidated as long as Legg Mason maintains a controlling financial interest in the product, but they are not designated as CIVs by Legg Mason unless the investment is longer-term. As of June 30, 2017, March 31, 2017, and June 30, 2016, no consolidated VREs were designated as CIVs.

A VIE is an entity which does not have adequate equity to finance its activities without additional subordinated financial support; or the equity investors, as a group, do not have the normal characteristics of equity investors for a potential controlling financial interest. Legg Mason must consolidate any VIE for which it is deemed to be the primary beneficiary.

9

Under consolidation accounting guidance, if limited partners or similar equity holders in a sponsored investment vehicle structured as a limited partnership or a similar entity do not have either substantive kick-out or substantive participation rights over the general partner, the entities are VIEs. As a sponsor and manager of an investment vehicle, Legg Mason may be deemed a decision maker under the accounting guidance. If the fees paid to a decision maker are market-based, such fees are not considered variable interests in a VIE. Market-based fees are those fees which are both customary and commensurate with the level of effort required for the services provided. Additionally, if employee interests in a sponsored investment vehicle are not made to circumvent the consolidation guidance and are not financed by the sponsor, they are not included in the variable interests assessment, and are not included in the primary beneficiary determination.

A decision maker is deemed to be a primary beneficiary of a VIE if it has the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or receive benefits from variable interests that could be significant to the VIE. In determining whether it is the primary beneficiary of a VIE, Legg Mason considers both qualitative and quantitative factors such as the voting rights of the equity holders, guarantees, and implied relationships. If a fee paid to a decision maker is not market-based, it will be considered in the primary beneficiary determination.

Legg Mason concluded it was the primary beneficiary of three foreign mutual fund VIEs as of each June 30, 2017 and March 31, 2017, and of nine foreign mutual fund VIEs as of June 30, 2016, which were consolidated and designated as CIVs, because it held significant financial interests in these funds. Legg Mason also concluded it was the primary beneficiary of two sponsored investment fund VIEs, and one employee-owned fund that it sponsors, as of each June 30, 2017, March 31, 2017, and June 30, 2016, which were also consolidated and designated as CIVs.

On June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one sponsored exchange traded fund ("ETF") which resulted in investments in the ETF by those intermediaries in the amount of $20,253, as further described in Note 12. Under the terms of the total return swaps, Legg Mason absorbs all gains and losses on the underlying ETF investments of these financial intermediaries, and therefore has variable interests in the fund, and is deemed to be the primary beneficiary. As such, the underlying sponsored investment fund was consolidated and designated a CIV during the three months ended June 30, 2017.

See Notes 4 and 13 for additional information related to VIEs and CIVs.

Contingent Consideration Liabilities

In connection with business acquisitions, Legg Mason may be required to pay additional future consideration based on the achievement of certain designated financial metrics. Legg Mason estimates the fair value of these potential future obligations at the time a business combination is consummated and records a Contingent consideration liability in the Consolidated Balance Sheet.

Legg Mason accretes contingent consideration liabilities to the expected payment amounts over the related earn-out terms until the obligations are ultimately paid, resulting in Interest expense in the Consolidated Statements of Income. If the expected payment amounts subsequently change, the contingent consideration liabilities are (reduced) or increased in the current period, resulting in a (gain) or loss, which is reflected within Contingent consideration fair value adjustments in the Consolidated Statements of Income. See Notes 3 and 9 for additional information regarding contingent consideration liabilities.

Noncontrolling Interests

Noncontrolling interests include affiliate minority interests, third-party investor equity in consolidated sponsored investment products, and vested affiliate management equity plan interests. For CIVs and other consolidated sponsored investment products with third-party investors, the related noncontrolling interests are classified as redeemable noncontrolling interests if investors in these funds may request withdrawals at any time. Also included in redeemable noncontrolling interests are vested affiliate management equity plan and affiliate minority interests for which the holder may, at some point, request settlement of their interests. Redeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their estimated settlement values. Changes in the expected settlement values are recognized over the settlement period as adjustments to retained earnings. Nonredeemable noncontrolling interests include vested affiliate management equity plan interests that do not permit the holder to request settlement of their interests. Nonredeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their issuance value, together with undistributed net income allocated to noncontrolling interests.

10

Legg Mason estimates the settlement value of noncontrolling interests as their fair value. For consolidated sponsored investment products, where the investor may request withdrawal at any time, fair value is based on market quotes of the underlying securities held by the investment products. For affiliate minority interests and management equity plan interests, fair value reflects the related total business enterprise value, after appropriate discounts for lack of marketability and control.

There may also be features of these equity interests, such as dividend subordination, that are contemplated in their valuations. The fair value of option-like management equity plan interests also relies on Black-Scholes option pricing model calculations.

Net income attributable to noncontrolling interests in the Consolidated Statements of Income includes the share of net income of the respective subsidiary allocated to the minority interest holders.

See Note 11 for additional information regarding noncontrolling interests.

Derivative Instruments

As noted above, on June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one Legg Mason sponsored ETF for a total notional amount of $20,253 which resulted in investments in the ETF by these intermediaries. The total return swap arrangements qualify as derivative instruments and are not designated for hedge accounting. In connection with the arrangements, Legg Mason also executed a futures contract to partially hedge the market risk related to the total return swap arrangements. See Notes 4, 12, and 13 for additional information.

Stock-Based Compensation

Effective April 1, 2017, Legg Mason adopted updated accounting guidance on stock-based compensation accounting. The updated guidance simplifies several aspects of accounting for stock-based compensation including the income tax consequences, and clarifies classification criteria for awards as either equity or liabilities, and the classification of related amounts in statements of cash flows. The updated guidance requires all excess tax benefits and deficiencies associated with stock-based compensation to be recognized as discrete items in the Income tax provision in the Consolidated Statements of Income in the reporting period in which they occur, thereby increasing the volatility of the Income tax provision as a result of fluctuations in Legg Mason's stock price. Legg Mason adopted this amendment on a modified retrospective basis, and recorded a cumulative-effect adjustment of $24,327 as an increase to both deferred tax assets and Retained earnings on the Consolidated Balance Sheet as of April 1, 2017. These tax benefits were not previously recognized due to Legg Mason's cumulative tax loss position. In addition, Legg Mason recorded a related discrete Income tax expense of $906 during the three months ended June 30, 2017, for vested stock awards with a grant date exercise price higher than the related vesting date stock price, as this aspect of the guidance was adopted on a prospective basis. Upon adoption of the updated guidance, Legg Mason elected to prospectively account for forfeitures as they occur, which did not have a material impact on the Consolidated Financial Statements. Also, cash flows related to income tax deductions in excess of or less than the related stock-based compensation expense will be classified as Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows.

Accumulated Other Comprehensive Loss, Net

There were no significant amounts reclassified from Accumulated other comprehensive loss, net, to the Consolidated Statements of Income, except as follows. During the three months ended June 30, 2017, $119 of previously unrecognized losses on a defined benefit pension plan were reclassified and expensed as further described in Note 3, and during the three months ended June 30, 2016, $527 realized on the settlement of an interest rate swap was reclassified and expensed, as further described in Note 7.

Income Taxes

Noncontrolling interests in EnTrustPermal Group Holdings, LLC ("EnTrustPermal"), Clarion Partners, LLC ("Clarion Partners") and Royce & Associates ("Royce") are structured as partnerships that pass related tax attributes to the related noncontrolling interest holders. As such, the consolidated financial statements do not generally include any tax provision/benefit associated with the net income allocated to these noncontrolling interests, which caused the effective tax rate to be reduced by 3.5 percentage points and 4.8 percentage points for the three months ended June 30, 2017 and 2016, respectively.

In connection with the adoption of updated accounting guidance on stock-based compensation accounting discussed above, Legg Mason recorded a discrete income tax expense of approximately $906 during the three months ended June 30, 2017, which increased the effective tax rate by 1.0 percentage point.

11

Recent Accounting Developments

In February 2016, the Financial Accounting Standards Board ("FASB") updated the guidance on accounting for leases. The updated guidance requires that a lessee shall recognize the assets and liabilities that arise from lease transactions. A lessee will recognize a right-of-use asset to use the underlying asset and a liability representing the lease payments. The updated guidance also requires an evaluation at the inception of a service or other contract, to determine whether the contract is or contains a lease. The guidance will be effective for Legg Mason in fiscal 2020. Legg Mason expects to recognize right of use assets and liabilities upon its adoption of the new standard and is continuing to evaluate the full impact of its adoption.

In May 2014, the FASB updated the guidance on revenue recognition. The updated guidance provides a single, comprehensive revenue recognition model for all contracts with customers, improves comparability and removes inconsistencies in revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance also requires comprehensive disclosures about the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments made in applying the guidance. In March 2016, the FASB further updated the revenue guidance on determining whether to report revenue on a gross versus net basis. The updated guidance clarifies how entities evaluate principal versus agent aspects of the revenue recognition guidance issued in May 2014. The evaluation will require entities to identify all goods or services to be provided to the customer, and determine whether they obtain control of the good or service before it is transferred to the customer, where control would suggest a principal relationship, which would be accounted for on a gross basis. Legg Mason is currently reviewing its revenue contracts, and monitoring relevant implementation guidance. Legg Mason does not anticipate any significant changes to current revenue recognition practices, except as discussed below. Legg Mason may be required to recognize longer-term performance and incentive fees subject to clawback when clawback is not reasonably possible, which is earlier than under its current revenue recognition process, which defers recognition until all contingencies are resolved. Additionally, Legg Mason is evaluating whether certain separate account commissions currently expensed when paid meet the criteria for capitalization and amortization. Legg Mason is also evaluating whether revenue-related costs currently presented on a gross basis will be recorded net, or vice versa. The evaluation of the effect of this guidance is ongoing, and Legg Mason has not determined the ultimate impact of the adoption or the transition method to be used upon adoption, which is effective for Legg Mason on April 1, 2018.

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3. Acquisitions

Acquisitions

The following table presents a summary of the acquisition-date fair values of the assets acquired and liabilities assumed for each of Legg Mason's significant recent acquisitions:

	EnTrust Capital				Clarion Partners			RARE Infrastructure Limited			Martin Currie (Holdings) Limited			QS Investors Holdings, LLC
Acquisition Date	May 2, 2016				April 13, 2016			October 21, 2015			October 1, 2014			May 31,  2014
Purchase price
Cash	$	400,000			$	631,476		$	213,739		$	202,577		$	11,000
Estimated contingent consideration	—				—			25,000			75,211			13,370
Performance-based Legg Mason restricted share units	—				11,121			—			—			—
Minority equity interest transferred	140,000			(1)	—			—			—			—
Total consideration	540,000				642,597			238,739			277,788			24,370
Fair value of noncontrolling interests	247,700			(1)	105,300			62,722			—			—
Total	787,700				747,897			301,461			277,788			24,370
Identifiable assets and liabilities
Cash	8,236				25,307			9,667			29,389			441
Investments	16,220				22,285			—			—			3,281
Receivables	20,820				53,657			6,612			—			2,699
Indefinite-life intangible fund management contracts	262,300				505,200			122,755			135,321			—
Indefinite-life trade name	7,400				23,100			4,766			7,130			—
Amortizable intangible asset management contracts	65,500				102,800			67,877			15,234			7,060
Fixed assets	4,479				8,255			673			784			599
Other current assets (liabilities), net	1,030				(25,585		)	(10,605		)	—			—
Liabilities, net	(8,823		)		(10,579		)	(3,948		)	(4,388		)	(6,620		)
Pension liability	—				—			—			(32,433		)	—
Deferred tax liabilities	—				(36,788		)	(58,619		)	(31,537		)	—
Total identifiable assets and liabilities	377,162				667,652			139,178			119,500			7,460
Goodwill	$	410,538			$	80,245		$	162,283		$	158,288		$	16,910

(1) Post combination EnTrustPermal noncontrolling interest of $403,200 also includes a fair value reclassification of $15,500 from retained earnings.

EnTrust Capital

On May 2, 2016, Legg Mason acquired EnTrust Capital ("EnTrust") and combined it with The Permal Group, Ltd. ("Permal"), Legg Mason's existing hedge fund platform, to form EnTrustPermal. EnTrust, an alternative asset management firm headquartered in New York, had $9,600,000 in assets under management ("AUM") and approximately $2,000,000 in assets under advisement and committed capital at closing, and largely complementary investment strategies, investor base, and business mix to Permal. The transaction included a cash payment of $400,000, which was funded with borrowings under Legg Mason's revolving credit facility, as well as a portion of the proceeds from the issuance of $450,000 of 4.75% Senior Notes due 2026 (the "2026 Notes") and $250,000 of 6.375% Junior Subordinated Notes due 2056 (the "6.375% 2056 Notes") in March 2016. As a result of the combination, Legg Mason owns 65% of the new entity, EnTrustPermal, with the remaining 35% owned by EnTrust's co-founder and managing partner. The noncontrolling interests can be put by the holder or called by Legg Mason for settlement at fair value subject to various conditions, including the passage of time. The fair value of the noncontrolling interests in the Consolidated Balance Sheet reflects the total business enterprise value of the combined entity, after appropriate discounts for lack of marketability and control.

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The fair value of the acquired amortizable intangible asset management contracts had a useful life of approximately eight years at acquisition. Purchase price allocated to intangible assets and goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with EnTrust.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	(1)% to 5% (weighted-average: 4%)	14.5%
Indefinite-life trade name	6% to 14% (weighted-average: 6%)	14.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	10% / (13)%	13.5%

Costs incurred in connection with the acquisition of EnTrust were $6,732 during the three months ended June 30, 2016.

The financial results of EnTrust included in Legg Mason's consolidated financial results for the three months ended June 30, 2016, include revenues of $18,726 and did not have a material impact on Net Income Attributable to Legg Mason, Inc.

In connection with the combination of EnTrust and Permal, Legg Mason incurred total charges for restructuring and transition costs of $87,643 through June 30, 2017, which includes $2,562 recognized during the quarter ended June 30, 2017. These costs were primarily comprised of charges for employee termination benefits, including severance and retention incentives, which were recorded as Compensation and benefits, in the Consolidated Statements of Income, and real estate related charges, which were recorded as Occupancy, in the Consolidated Statements of Income. While the combination is substantially complete, Legg Mason expects to incur additional costs totaling $3,000 to $4,000 during the remainder of fiscal 2018 and fiscal 2019.

The table below presents a summary of changes in the restructuring and transition-related liability from December 31, 2015 through June 30, 2017, and cumulative charges incurred to date:

	Compensation			Other				Total
Balance as of December 31, 2015	$	—		$	—			$	—
Accrued charges	31,581			9,981			(1)	41,562
Payments	(21,938		)	(2,097		)		(24,035		)
Balance as of March 31, 2016	9,643			7,884				17,527
Accrued charges	22,891			11,075			(1)	33,966
Payments	(29,211		)	(12,408		)		(41,619		)
Balance as of March 31, 2017	3,323			6,551				9,874
Accrued charges	923			194				1,117
Payments	(4,118		)	(1,041		)		(5,159		)
Balance as of June 30, 2017	$	128		$	5,704			$	5,832
Non-cash charges(2)
Year ended March 31, 2016	$	591		$	1,143			$	1,734
Year ended March 31, 2017	4,423			3,396				7,819
Three months ended June 30, 2017	1,441			4				1,445
Total	$	6,455		$	4,543			$	10,998
Cumulative charges incurred through June 30, 2017	$	61,850		$	25,793			$	87,643

(1) Includes lease loss reserve for space permanently abandoned of $9,069 for the year ended March 31, 2017, and $7,212 for the year ended March 31, 2016.

(2) Includes stock-based compensation expense and accelerated fixed asset depreciation.

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Clarion Partners

On April 13, 2016, Legg Mason acquired a majority equity interest in Clarion Partners, a diversified real estate asset management firm headquartered in New York. Clarion Partners managed approximately $41,500,000 in AUM on the date of acquisition. Legg Mason acquired an 82% ownership interest in Clarion Partners for a cash payment of $631,476 (including a payment for cash delivered of $36,772 and co-investments of $16,210), which was funded with a portion of the proceeds from the issuance of the 2026 Notes and the 6.375% 2056 Notes in March 2016. The Clarion Partners management team retained 18% of the outstanding equity in Clarion Partners. The Clarion Partners management team also retained rights to the full amount of performance fee revenues earned on historic AUM in place as of the closing of the acquisition. Performance fees earned on this historic AUM are fully passed through to employees as compensation, per the terms of the acquisition agreement, and recorded as compensation expense. Legg Mason expects the full pass through of performance fees to phase out approximately five years post-closing. The firm's previous majority owner sold its entire ownership interest in the transaction. The noncontrolling interests held by the management team can be put by the holders or called by Legg Mason for settlement at fair value subject to various conditions, including the passage of time. The fair value of the noncontrolling interests reflects the total business enterprise value, after appropriate discounts for lack of marketability and control.

Upon the acquisition, Legg Mason also granted certain key employees of Clarion Partners a total of 716 performance-based Legg Mason restricted share units with an aggregate fair value of $11,121, which vest upon Clarion Partners achieving a certain level of EBITDA, as defined in the award agreements, within a designated period after the closing of the acquisition. The aggregate value of the award was included in the purchase price and was determined as of the grant date using a Monte Carlo pricing model with the following assumptions:

Long-term EBITDA growth rate	6.0	%
Risk-free interest rate	2.3	%
Expected volatility:
Legg Mason	38.0	%
Clarion Partners	30.0	%

In connection with the transaction, Legg Mason also implemented an affiliate management equity plan for the management team of Clarion Partners, which resulted in a non-cash charge of $15,200 in the three months ended June 30, 2016. See Note 8 for additional information related to the Clarion Partners management equity plan.

The fair value of the acquired amortizable intangible asset management contracts had an average useful life of approximately 10 years at acquisition. Approximately 82% of the purchase price allocated to intangible assets and goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with Clarion Partners.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	6% to 20% (weighted-average: 6%)	13.5%
Indefinite-life trade name	5% to 17% (weighted-average: 6%)	13.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts:	7% / (10)%	13.4%

In addition to the previously discussed charge of $15,200 incurred in connection with the implementation of the Clarion Partners management equity plan, during the three months ended June 30, 2016, there were $10,383, of costs incurred in connection with the acquisition of Clarion Partners.

The financial results of Clarion Partners included in Legg Mason's consolidated financial results for the three months ended June 30, 2016, include revenues of $56,691 and did not have a material impact to Net Income Attributable to Legg Mason, Inc.

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Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined financial results of Legg Mason, Clarion Partners, and EnTrust, for the initial period of the acquisitions as if each acquisition had occurred on April 1, 2015. The unaudited pro forma financial information reflects certain adjustments for amortization expense related to the fair value of acquired intangible assets, acquisition- and transition-related costs, interest expense related to debt incurred to finance the acquisitions, and the income tax impact of the pro forma adjustments. The unaudited pro forma financial information is for informational purposes only, excludes projected cost savings, and is not necessarily indicative of the financial results that would have been achieved had the acquisitions actually occurred at the beginning of the first period presented.

	Three Months Ended June 30, 2016
Revenues	$	717,516
Net Income Attributable to Legg Mason, Inc.	68,281
Net Income Per Share Attributable to Legg Mason, Inc. Shareholders:
Basic	$	0.63
Diluted	$	0.63

RARE Infrastructure Limited

On October 21, 2015, Legg Mason acquired a majority equity interest in RARE Infrastructure Limited ("RARE Infrastructure"). RARE Infrastructure specializes in global listed infrastructure security investing, is headquartered in Sydney, Australia, and had approximately $6,800,000 in AUM at the closing of the transaction. Under the terms of the related transaction agreements, Legg Mason acquired a 75% ownership interest in the firm, the firm's management team retained a 15% equity interest and a continuing corporate minority owner, retained 10%. The acquisition required an initial cash payment of $213,739 (using the foreign exchange rate as of October 21, 2015 for the 296,000 Australian dollar payment), which was funded with approximately $40,000 of net borrowings under the Company's previous revolving credit facility, as well as existing cash resources. In August 2015, Legg Mason executed a currency forward contract to economically hedge the risk of movement in the exchange rate between the U.S. dollar and the Australian dollar in which the initial cash payment was denominated. This currency forward contract was closed in October 2015. See Note 12 for additional information regarding derivatives and hedging. In addition, contingent consideration may be due March 31, 2018, of up to $81,426 (using the foreign exchange rate as of June 30, 2017, for the maximum 106,000 Australian dollar amount per the related agreements), dependent on the achievement of certain net revenue targets, and subject to potential catch-up adjustments extending through March 31, 2019. The transaction also provided for a potential contingent payment as of March 31, 2017, however no such payment was due based on relevant net revenue targets.

The noncontrolling interests can be put by the holders or called by Legg Mason for settlement at fair value, except for the non-management portion of the noncontrolling interests, which are callable at a pre-agreed formula, as specified in the agreements. The fair value of the noncontrolling interests reflects the total business enterprise value of RARE Infrastructure, after appropriate discounts for lack of marketability and control.

The fair value of the acquired amortizable intangible asset management contracts had a useful life of 12 years at acquisition. Purchase price allocated to intangible assets and goodwill is not deductible for Australian tax purposes. Goodwill was principally attributable to synergies expected to arise with RARE Infrastructure.

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Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 10% (weighted-average: 7%)	16.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	7% / (8)%	16.5%

During the three months ended June 30, 2017, the amortizable intangible asset management contracts asset and the trade name indefinite-life intangible asset were impaired by $32,000 and $2,000, respectively. See Note 6 for additional information.

The fair value of the contingent consideration was estimated using Monte Carlo simulation in a risk-neutral framework with various observable inputs, as well as, with various unobservable data inputs which are Level 3 measurements. The simulation considered variables, including AUM growth and performance fee levels. Consistent with risk-neutral framework, projected AUM and performance fees were dampened by a measure of risk referred to as 'market price of risk' to account for its market risk or systematic risk before calculating the earn-out payments. These earn-out payments were then discounted commensurate with their timing. A summary of various assumption values follows:

AUM growth rates	Weighted-average: 7%
Performance fee growth rates	Weighted-average: 3%
Projected AUM and performance fee market price of risk	6.5%
AUM volatility	20.0%
Earn-out payment discount rate	1.9%

Significant increases (decreases) in projected AUM or performance fees would result in a significantly higher (lower) contingent consideration liability fair value.

The contingent consideration liability established at closing had an acquisition date fair value of $25,000 (using the foreign exchange rate as of October 21, 2015). As of June 30, 2017, the fair value of the contingent consideration liability was $2,128, a decrease of $15,316 from March 31, 2017. During the three months ended June 30, 2017, reductions in projected AUM and revenues attributable in part to a large outflow during the quarter resulted in a $15,250 reduction in the estimated contingent consideration liability, recorded as a credit to Contingent consideration fair value adjustments in the Consolidated Statement of Income. The remaining decrease of $66 is attributable to changes in the exchange rate, which is included in Accumulated other comprehensive loss, net, as Foreign currency translation adjustment, and accretion. The total contingent consideration liability was included in non-current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017. As of March 31, 2017, the contingent consideration liability totaled $17,444, of which $7,791 was included in current Contingent consideration in the Consolidated Balance Sheet, with the remaining $9,653 included in non-current Contingent consideration. The contingent consideration liability was recorded at an entity with an Australian dollar functional currency, such that related changes in the exchange rate do not impact net income.

Martin Currie (Holdings) Limited

On October 1, 2014, Legg Mason acquired all outstanding equity interests of Martin Currie (Holdings) Limited ("Martin Currie"), an international equity specialist based in the United Kingdom. The acquisition required an initial payment of $202,577 (using the foreign exchange rate as of October 1, 2014 for the £125,000 contract amount), which was funded from existing cash. In addition, a contingent consideration payment may be due March 31, 2018, following the third anniversary of closing, of up to approximately $423,075 (using the foreign exchange rate as of June 30, 2017 for the maximum £325,000 contract amount), inclusive of the payment of certain potential pension and other obligations, and dependent on the achievement of certain financial metrics at March 31, 2018, as specified in the share purchase agreement. The agreement also provided for potential first and second anniversary contingent payments as of March 31, 2016 and 2017, respectively, however no such payments were due based on relevant financial metrics.

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The fair value of the amortizable intangible asset management contracts asset is being amortized over a period of 12 years. Goodwill is principally attributable to synergies expected to arise with Martin Currie. These acquired intangible assets and goodwill are not deductible for U.K. tax purposes.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 25% (weighted-average: 11%)	15.0%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	6% / (17)%	15.0%

The fair value of the contingent consideration was measured using Monte Carlo simulation with various unobservable market data inputs, which are Level 3 measurements. The simulation considered variables, including AUM growth, performance fee levels and relevant product performance. Projected AUM, performance fees and earn-out payments were discounted as appropriate. A summary of various assumption values follows:

AUM growth rates	Weighted-average: 14%
Performance fee growth rates	Weighted-average: 15%
Discount rates:
Projected AUM	13.0%
Projected performance fees	15.0%
Earn-out payments	1.3%
AUM volatility	18.8%

Significant future increases (decreases) in projected AUM or performance fees would result in a significantly higher (lower) contingent consideration liability fair value.

The contingent consideration liability established at closing had an acquisition date fair value of $75,211 (using the foreign exchange rate as of October 1, 2014). Actual payments to be made may also include amounts for certain potential pension and other obligations that are accounted for separately. As of June 30, 2017, the fair value of the contingent consideration liability was $12,480, an increase of $462 from March 31, 2017, which was attributable to changes in the exchange rate, which is included in Accumulated other comprehensive loss, net, as Foreign currency translation adjustment. The contingent consideration liability was included in current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017, and recorded at an entity with a British pound functional currency, such that related changes in the exchange rate do not impact net income.

Martin Currie Defined Benefit Pension Plan

Martin Currie sponsors a retirement and death benefits plan, a defined benefit pension plan with assets held in a separate trustee-administered fund. Plan assets are measured at fair value and comprised of 65% equities (Level 1), 34% bonds (Level 2) and 1% cash (Level 1) as of June 30, 2017, and 65% equities (Level 1) and 35% bonds (Level 2) as of March 31, 2017. Assumptions used to determine the expected return on plan assets targets a 60% / 40% equity/bond allocation with reference to the 15-year FTSE U.K. Gilt yield for equities and U.K. long-dated bond yields for bonds. Plan liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate on a high-quality bond in the local U.K. market and currency. There were no significant concentrations of risk in plan assets as of June 30, 2017. The most recent actuarial valuation was performed as of May 31, 2013, which was updated through the acquisition and at subsequent balance sheet dates through March 31, 2017. Accrual of service credit under the plan ceased on October 3, 2014. Legg Mason uses the corridor approach to account for this plan. Under the corridor approach, actuarial gains and losses on plan assets and liabilities are deferred and reported as Other comprehensive income (loss). However, if at the beginning of the next fiscal year, the actuarial gains and losses exceed 10% of the greater of the fair value of the plan assets or the plan benefit obligation, the excess will be amortized as Compensation expense over the recovery period

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of 15 years. During the three months ended June 30, 2017, $119 of previously unrecognized losses were expensed under the corridor approach.

The resulting net benefit obligation, comprised as follows, is included in the June 30, 2017 and March 31, 2017, Consolidated Balance Sheets as Other non-current liabilities:

	June 30, 2017			March 31, 2017
Fair value of plan assets (at 5.4% expected weighted-average long-term return)	$	62,893		$	59,623
Benefit obligation (at 2.7% discount rate)	(99,802		)	(97,137		)
Unfunded status (excess of benefit obligation over plan assets)	$	(36,909	)	$	(37,514	)

For the three months ended June 30, 2017 and 2016, a net periodic benefit cost of $25 and $28, respectively, was included in Compensation and benefits expense in the Consolidated Statements of Income. Net actuarial losses of $17,202 and $16,681 were included in Accumulated other comprehensive loss, net, in the Consolidated Balance Sheets at June 30, 2017 and March 31, 2017, respectively.

The contingent consideration payments may provide some funding of the net plan benefit obligation, through a provision of the share purchase agreement requiring certain amounts to be paid to the plan. Any contingent consideration payments to the plan are based on determination of the plan benefit obligation under local technical provisions utilized by the plan trustees.

In connection with a review by the Pensions Regulator in the U.K. ("the Regulator") of the pension plan's current structure and funding status, Martin Currie and the trustees of the pension have agreed with the Regulator to a revised plan structure which will result in certain changes to the plan structure, including the redomiciliation of the plan in the U.K., additional guarantees and, following the application of any contingent consideration payments toward the pension deficit, provisions for accelerated funding of a portion of any remaining benefit obligation, in certain circumstances. Absent funding from contingent consideration payments, Martin Currie does not expect to contribute any additional amounts in fiscal 2018 to the plan in excess of the $1,919 contributed during the three months ended June 30, 2017.

The contingent consideration provisions of the share purchase agreement also require a designated percentage of the earn-out payments, net of any pension contribution, to be allocated to fund an incentive plan for Martin Currie's management. No payments to employees under the arrangement will be made until the end of the earn-out period. The estimated payment (adjusted quarterly) is being amortized over the earn-out term.

Other

In December 2015, Martin Currie acquired certain assets of PK Investment Management, LLP ("PK Investments"), a London based equity manager, for an initial cash payment of $4,981 and an estimated contingent payment of $2,506 due on December 31, 2017. The amount of any ultimate contingent payment will be based on certain financial metrics. The initial cash payment was funded with existing cash resources. In connection with the acquisition, Legg Mason recognized indefinite-life intangible fund management contracts and goodwill of $6,619 and $827, respectively.

QS Investors Holdings, LLC

Effective May 31, 2014, Legg Mason acquired all of the outstanding equity interests of QS Investors, a customized solutions and global quantitative equities provider. The initial purchase price was a cash payment of $11,000, funded from existing cash. Additional contingent consideration of up to $20,000 for the fourth anniversary payment, and up to $3,400 for a potential catch-up adjustment for the second anniversary payment shortfall, may be due in July 2018, dependent on the achievement of certain net revenue targets.

The fair value of the amortizable intangible asset management contracts had a useful life of 10 years at acquisition. Purchase price allocated to goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with QS Investors.

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Management estimated the fair values of the amortizable intangible asset management contracts based upon a discounted cash flow analysis, and the contingent consideration expected to be paid and discounted, based upon probability-weighted revenue projections, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition including projected annual cash flows, revenues and discount rates, are summarized as follows:

	Projected Cash Flow Attrition, Net	Discount Rate
Amortizable intangible asset management contracts	(10.0)%	15.0%
	Projected Revenue Growth Rates	Discount Rates
Contingent consideration	0% to 10% (weighted-average: 6%)	1.2% / 2.1%

As of June 30, 2017, the fair value of the contingent consideration liability was $3,583, a decrease of $1,258 from March 31, 2017. During the three months ended June 30, 2017, a reduction in projected net revenue resulted in a $1,300 reduction in the estimated contingent consideration liability, recorded as a credit to Contingent consideration fair value adjustments in the Consolidated Statement of Income. The reduction was offset in part by an increase of $42 attributable to accretion. The contingent consideration liability was included in non-current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017.

Financial Guard, LLC

On August 17, 2016, Legg Mason acquired 82% of the equity interests in Financial Guard, LLC ("Financial Guard"), an online registered investment advisor and technology-enabled wealth management and investment advice platform. The acquisition required an initial cash payment, which was funded with existing cash resources, and a contingent payment of up to $3,000 based on certain metrics within the first year after the acquisition. In connection with the acquisition, Legg Mason recognized certain business assets and goodwill of $11,995. Legg Mason also committed to contribute up to $5,000 of additional working capital to Financial Guard, to be paid over the two-year period following the acquisition, of which $2,500 has been paid as of June 30, 2017. As of June 30, 2017 and March 31, 2017, no contingent consideration liability was recorded in the Consolidated Balance Sheet.

Precidian Investments, LLC

On January 22, 2016, Legg Mason acquired a minority equity position in Precidian Investments, LLC ("Precidian"), a firm specializing in creating innovative products and solutions and solving market structure issues, particularly with regard to the ETF marketplace.

The transaction required a cash payment, which was funded from existing cash resources. Under the terms of the transaction, Legg Mason acquired series B preferred units of Precidian that entitle Legg Mason to approximately 20% of the voting and economic interests of Precidian, along with customary preferred equity protections. At its sole option during the 48 months following the initial investment or, if earlier, within nine months of the SEC's approval of Precidian's application to operate its active shares product. Legg Mason may, subject to satisfaction of certain closing conditions and upon payment of further consideration, convert its preferred units to 75% of the common equity of Precidian on a fully diluted basis.

Legg Mason accounts for its investment in Precidian, which is included in Other assets in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017, under the equity method of accounting.

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4. Investments and Fair Values of Assets and Liabilities

The disclosures below include details of Legg Mason's financial assets and financial liabilities that are measured at fair value, excluding the financial assets and financial liabilities of CIVs. See Note 13, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the assets and liabilities of CIVs that are measured at fair value.

The fair values of financial assets and (liabilities) of the Company were determined using the following categories of inputs:

	As of June 30, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	225,358		$	—	$	—		$	—	$	225,358
Time deposits and other	—			16,586		—			—		16,586
Total cash equivalents	225,358			16,586		—			—		241,944
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	119,998			64,161		—			3,389		187,548
Other(3)	21,542			2,474		—			11		24,027
Trading investments relating to long-term incentive compensation plans(4)	175,036			—		—			105		175,141
Equity method investments relating to long-term incentive compensation plans(5)	—			—		1,349			6,895		8,244
Total current investments(6)	316,576			66,635		1,349			10,400		394,960
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		813			22,658		23,471
Seed capital investments in real estate funds	—			—		27,182			—		27,182
Other proprietary fund products	—			—		1,646			13,969		15,615
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,277		3,277
Investments related to long-term incentive compensation plans	—			—		9,367			—		9,367
Other proprietary fund products	—			99		1,818			—		1,917
Derivative assets(7)(8)	3,083			—		—			—		3,083
Other investments(7)	—			—		112			—		112
Total	$	545,017		$	83,320	$	42,287		$	50,304	$	720,928
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(20,697	)	$	—	$	(20,697	)
Derivative liabilities(8)	(274		)	—		—			—		(274		)
Total	$	(274	)	$	—	$	(20,697	)	$	—	$	(20,971	)

21

	As of March 31, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	403,585		$	—	$	—		$	—	$	403,585
Time deposits and other	—			35,835		—			—		35,835
Total cash equivalents	403,585			35,835		—			—		439,420
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	141,025			75,275		—			4,373		220,673
Other(3)	39,177			2,724		—			11		41,912
Trading investments relating to long-term incentive compensation plans(4)	150,576			—		—			327		150,903
Equity method investments relating to proprietary fund products and long-term incentive compensation plans:(5)
Seed capital investments	—			2,502		—			—		2,502
Investments related to long-term incentive compensation plans	—			—		1,337			6,292		7,629
Total current investments(6)	330,778			80,501		1,337			11,003		423,619
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		752			22,712		23,464
Seed capital investments in real estate funds	—			—		26,909			—		26,909
Other proprietary fund products	—			—		1,646			15,617		17,263
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,440		3,440
Investments related to long-term incentive compensation plans	—			—		9,315			—		9,315
Other proprietary fund products	—			99		1,825			—		1,924
Derivative assets(7)(8)	2,718			—		—			—		2,718
Other investments(7)	—			—		113			—		113
Total	$	737,081		$	116,435	$	41,897		$	52,772	$	948,185
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(36,810	)	$	—	$	(36,810	)
Derivative liabilities(8)	(4,522		)	—		—			—		(4,522		)
Total	$	(4,522	)	$	—	$	(36,810	)	$	—	$	(41,332	)

(1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds 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 purchase of the instrument and its expected realization, and are classified as Level 2.

(2) Trading investments of proprietary fund products and other trading investments consist of approximately 75% and 25% equity and debt securities, respectively, as of June 30, 2017, and approximately 79% and 21% equity and debt securities, respectively, as of March 31, 2017.

(3) Includes $12,691 and $26,854 in noncontrolling interests associated with consolidated seed investment products as of June 30, 2017 and March 31, 2017, respectively.

(4) 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.

(5) Certain of Legg Mason's equity method investments are investment companies that record underlying investments at fair value. Therefore, the fair value of these investments 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. Other equity method investments not measured at fair value on a recurring basis are excluded from the tables above.

(6) Excludes $36,026 and $28,300 of seed capital as of June 30, 2017, and March 31, 2017, respectively, which is related to Legg Mason's investments in CIVs. See Note 13.

(7) Amounts are included in Other non-current assets in the Consolidated Balance Sheets for each of the periods presented.

(8) See Note 12.

(9) See Note 3 and Note 9.

22

Proprietary fund products include seed capital investments made by Legg Mason to fund new investment strategies and products. Legg Mason had seed capital investments in proprietary fund products, which totaled $277,504 and $305,288, as of June 30, 2017 and March 31, 2017, respectively, which are substantially comprised of investments in 55 funds and 57 funds, respectively, that are individually greater than $1,000, and together comprise over 90% of the total seed capital investments at each period end.

As further discussed in Notes 2, 12, and 13, on June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one Legg Mason sponsored ETF for an aggregate notional amount of $20,253 which resulted in the investment in the ETF by each of the financial intermediaries. Under the terms of the total return swap arrangements, Legg Mason receives all the investment gains and losses on the underlying investments and therefore is required to consolidate the sponsored investment fund, which was designated as a CIV.

See Notes 2 for information regarding the determination of whether investments in proprietary fund products represent VIEs and consolidation.

The net realized and unrealized gain for investment securities classified as trading was $10,169, and $9,587 for the three months ended June 30, 2017 and 2016, respectively.

The net unrealized gains relating to trading investments still held as of the reporting dates were $2,068 and $4,139 for the three months ended June 30, 2017 and 2016, respectively.

23

The changes in financial assets and (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three months ended June 30, 2017 and 2016, are presented in the tables below:

	Balance as of March 31, 2017			Purchases		Sales		Redemptions/ Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net			Balance as of June 30,  2017
Assets:
Equity method investments relating to long-term incentive compensation plans	$	1,337		$	11	$	—	$	(11	)	$	—	$	12		$	1,349
Equity method investments in partnerships and LLCs:
Seed capital investments	752			—		—		—			—		61			813
Seed capital investments in real estate funds	26,909			439		—		(619		)	—		453			27,182
Other proprietary fund products	1,646			—		—		—			—		—			1,646
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	9,315			52		—		—			—		—			9,367
Other proprietary fund products	1,825			—		—		(7		)	—		—			1,818
Other investments	113			—		—		—			—		(1		)	112
	$	41,897		$	502	$	—	$	(637	)	$	—	$	525		$	42,287
Liabilities:
Contingent consideration liabilities	$	(36,810	)	$	—	n/a		$	—		n/a		$	16,113		$	(20,697	)

n/a - not applicable

24

	Balance as of March 31, 2016			Purchases		Sales		Redemptions/Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net		Balance as of June 30,  2016
Assets:
Trading investments of seed capital investments in proprietary fund products	$	3		$	—	$	—	$	(3	)	$	—	$	—	$	—
Equity method investments relating to long-term incentive compensation plans	—			2,553		—		(22		)	—		56		2,587
Equity method investments in partnerships and LLCs:
Seed capital investments in real estate funds	—			24,263		—		(132		)	—		382		24,513
Seed capital investments	627			—		—		—			—		17		644
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	7,501			—		—		—			—		—		7,501
Other proprietary fund products	4,807			—		—		(1,000		)	—		3		3,810
Other investments	83			—		—		—			—		7		90
	$	13,021		$	26,816	$	—	$	(1,157	)	$	—	$	465	$	39,145
Liabilities:
Contingent consideration liabilities	$	(84,585	)	$	—	n/a		$	—		n/a		$	21,662	$	(62,923	)

n/a - not applicable

Realized and unrealized gains and losses recorded for Level 3 investments are primarily included in Other non-operating income (expense), net, in the Consolidated Statements of Income. The change in unrealized gains for Level 3 investments and liabilities still held at the reporting date was $16,638, and $22,126 for the three months ended June 30, 2017, and 2016, respectively.

There were no significant transfers between Level 1 and Level 2 during the three months ended June 30, 2017 and 2016.

25

As a practical expedient, Legg Mason relies on the NAV of certain investments as their fair value.  The NAVs that have been provided by the investees have been derived from the fair values of the underlying investments as of the respective reporting dates.  The following table summarizes, as of June 30, 2017 and March 31, 2017, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized:

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments		Remaining Term
Funds-of-hedge funds	Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge	$	17,962	(1)	$	18,537	n/a		n/a
Hedge funds	Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge	9,367			10,107		$	20,000	n/a
Private equity funds	Long/short equity	15,907		(2)	17,612		7,071		Up to 12 years
Equity method	Long/short fixed income	6,895			6,292		n/a		n/a
Other	Various	173			224		n/a		Various (3)
Total		$	50,304		$	52,772	$	27,071

n/a - not applicable

(1) Liquidation restrictions: 1% daily redemption, 12% monthly redemption, 10% quarterly redemption, and 77% are not subject to redemption or are not currently redeemable.

(2) Liquidations are expected over the remaining term.

(3) Of this balance, 34% has a remaining term of less than one year and 66% has a remaining term of 15 years.

There are no current plans to sell any of these investments held as of June 30, 2017.

5. Fixed Assets

Fixed assets primarily consist of equipment, software and leasehold improvements. Equipment consists primarily of communications and technology hardware and furniture and fixtures. Capitalized software includes both purchased software and internally developed software. Fixed assets are reported at cost, net of accumulated depreciation and amortization. The following table reflects the components of fixed assets as of:

	June 30, 2017			March 31, 2017
Equipment	$	162,315		$	159,102
Software	309,590			304,943
Leasehold improvements	205,068			204,551
Total cost	676,973			668,596
Less: accumulated depreciation and amortization	(520,965		)	(508,934		)
Fixed assets, net	$	156,008		$	159,662

Depreciation and amortization expense related to fixed assets was $12,134 and $15,215 for the three months ended June 30, 2017, and 2016, respectively. The expense includes accelerated depreciation and amortization of $1,705 for the three months ended June 30, 2016, primarily related to space vacated in connection with the restructuring of Permal for the combination with EnTrust.

26

6. Intangible Assets and Goodwill

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

	June 30, 2017			March 31, 2017
Amortizable intangible asset management contracts and other
Cost	$	374,938		$	408,025
Accumulated amortization	(199,315		)	(194,371		)
Net	175,623			213,654
Indefinite–life intangible assets
U.S. domestic mutual fund management contracts	2,106,351			2,106,351
Clarion Partners fund management contracts	505,200			505,200
EnTrustPermal fund management contracts	596,404			596,404
Other fund management contracts	547,917			542,908
Trade names	68,031			69,863
	3,823,903			3,820,726
Intangible assets, net	$	3,999,526		$	4,034,380

Certain of Legg Mason's intangible assets are denominated in currencies other than the U.S. dollar and balances related to these assets will fluctuate with changes in the related foreign currency exchange rates.

During the three months ended June 30, 2017, projected revenues related to the RARE Infrastructure separate account contacts amortizable asset declined due to losses of separate account AUM and other factors, including the withdrawal of approximately $1,500,000 by an institutional client in June 2017. Based on revised attrition estimates, the remaining useful life of the acquired contracts was decreased from eight years to five years at June 30, 2017. As a result of the decline in projected revenues and the revised estimate of the remaining useful life, the amortized carrying value was determined to exceed its fair value and an impairment charge of $32,000 was recorded during the three months ended June 30, 2017. Management estimated the fair value of this asset based upon a discounted cash flow analysis using unobservable market inputs, which are Level 3 measurements. The significant assumptions used in the cash flow analysis included projected AUM growth rates of 7%, attrition rates of 20%, and a discount rate of 16.5%.

In addition, as a result of the AUM losses and other factors, Legg Mason tested the RARE Infrastructure indefinite-life fund management contracts intangible asset and trade name indefinite-life intangible asset for impairment during the three months ended June 30, 2017. The assessed fair value of the RARE Infrastructure indefinite-life fund management contracts intangible asset exceeded the carrying value by 7% and therefore was not impaired. The carrying value of the trade name exceeded its fair value, which resulted in an impairment charge of $2,000. Management estimated the fair value of the RARE Infrastructure trade name based upon a relief from royalty approach and a discounted cash flow method using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in the cash flow analysis included projected annual revenue growth rates of 5% to 18% (average: 8%), a royalty rate of 1.0%, and a discount rate of 16.5%.

Projected revenue, AUM growth rates and client attrition are most dependent on client AUM flows, changes in market conditions, and product investment performance. Discount rates are also influenced by changes in market conditions, as well as interest rates and other factors. Decreases in projected revenue or AUM growth rates and/or increases in the discount rates could result in lower fair value measurements and potential additional impairments in these intangible assets.

Based on qualitative assessments, Legg Mason determined as of June 30, 2017, that no further quantitative impairment testing was required. Also, there were no impairments to amortizable management contract intangible assets as of June 30, 2017.

In Legg Mason's annual impairment test as of December 31, 2016, the assessed fair value of the Permal trade name indefinite-life asset declined below its carrying value, and accordingly was impaired during the year ended March 31, 2017. Should market performance, flows, and related AUM levels decrease in the near term such that cash flow projections deviate from current projections, it is reasonably possible that this asset could be deemed to be impaired by a material amount.

27

The assessed fair value of the indefinite-life domestic mutual funds contracts asset related to the Citigroup Asset Management acquisition exceeds the carrying value by a material amount.

As of June 30, 2017, amortizable intangible asset management contracts and other are being amortized over a weighted-average remaining life of 7.6 years.

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

Remaining fiscal 2018	$	18,196
2019	24,678
2020	24,213
2021	23,797
2022	23,559
Thereafter	61,180
Total	$	175,623

The change in the carrying value of goodwill is summarized below:

	Gross Book Value			Accumulated Impairment			Net Book Value
Balance as of March 31, 2017	3,086,789			(1,161,900		)	1,924,889
Impact of excess tax basis amortization	(5,204		)	—			(5,204		)
Changes in foreign exchange rates and other	4,526			—			4,526
Balance as of June 30, 2017	$	3,086,111		$	(1,161,900	)	$	1,924,211

7. Short-Term Borrowings and Long-Term Debt

Short-term borrowings

On December 29, 2015, Legg Mason entered into an unsecured credit agreement (as amended from time to time, the "Credit Agreement") which provided for a $1,000,000 revolving credit facility. The Credit Agreement was amended on March 31, 2017 to reduce the amount available for borrowing under the revolving credit facility to $500,000. On June 2, 2017, the Credit Agreement was further amended to include Legg Mason, Inc. (the parent entity) among the entities permitted to incur liens to secure obligations, including those related to cash collateral provisions for hedging agreements, in an aggregate amount not to exceed $200,000 at any one time. Prior to this amendment, only certain subsidiaries of Legg Mason were permitted to incur such liens and the cash collateral provided by Legg Mason, Inc. (the parent entity) in connection with certain of its hedging agreements was considered a lien on assets for purposes of the lien covenant. As a result, Legg Mason was not in compliance with the terms of the Credit Agreement at all times. The amendment provides for a waiver of any defaults under the unsecured credit agreement that may have arisen prior to the date of the amendment resulting from the provision of such cash collateral.

Legg Mason had no outstanding borrowings under the revolving credit facility as of June 30, 2017 or March 31, 2017.

Interest Rate Swap - Revolving Credit Facility

On April 29, 2016, Legg Mason entered into a forward starting, amortizing interest rate swap agreement with a financial intermediary, which was designated as a cash flow hedge. The interest rate swap was used to convert then outstanding borrowings under the revolving credit facility from floating rate to fixed rate debt. Under the terms of the interest rate swap agreement, Legg Mason paid a fixed interest rate of 2.3% on a notional amount of $500,000. The swap had a 4.67-year term, with scheduled reductions in notional amount and was to expire on December 29, 2020. The fair value of the contract at June 30, 2016, was a liability of $4,369, with a corresponding loss of $2,683 (net of deferred taxes of $1,686) recorded in Accumulated other comprehensive loss, net, in the Consolidated Balance Sheet. Prior to its termination in August 2016 in connection with the repayment of the outstanding borrowings under the revolving credit facility, the swap settled monthly and during the three months ended June 30, 2016, $527 was reclassified from Accumulated other comprehensive loss, net, to Interest expense upon settlement of the swap. There was no material ineffectiveness related to this cash flow hedge at June 30, 2016.

28

Long-term debt

Long-term debt, net, consists of the following:

	June 30, 2017												March 31, 2017
	Carrying Value		Fair Value Hedge Adjustment			Unamortized Discount (Premium)			Unamortized Debt Issuance Costs		Maturity Amount		Carrying Value
2.7% Senior Notes due July 2019	$	252,645	$	(3,609	)	$	223		$	741	$	250,000	$	252,980
3.95% Senior Notes due July 2024	248,325		—			320			1,355		250,000		248,265
4.75% Senior Notes due March 2026	446,901		—			—			3,099		450,000		446,812
5.625% Senior Notes due January 2044	547,880		—			(3,243		)	5,363		550,000		547,861
6.375% Junior Notes due March 2056	242,105		—			—			7,895		250,000		242,054
5.45% Junior Notes due September 2056	483,997		—			—			16,003		500,000		483,895
Total	$	2,221,853	$	(3,609	)	$	(2,700	)	$	34,456	$	2,250,000	$	2,221,867

Interest Rate Swap - 2.7% Senior Notes due July 2019

On June 23, 2014, Legg Mason entered into an interest rate swap contract with a financial intermediary with a notional amount of $250,000, which was designated as a fair value hedge. The interest rate swap was used to effectively convert the 2.7% Senior Notes due July 2019 from fixed rate debt to floating rate debt and had identical terms as the underlying debt being hedged. The related hedging gains and losses offset one another and resulted in no net income or loss impact. The swap had a five-year term, and was scheduled to mature on July 15, 2019. On April 21, 2016, the fair value hedge swap was terminated for a cash receipt of $6,500, and the related fair value hedge adjustment is being amortized as Interest expense over the remaining life of the debt. During each of the three months ended June 30, 2017 and 2016, $451 was amortized and recorded as Interest expense in the Consolidated Statements of Income. Until the swap was terminated on April 21, 2016, the original terms and conditions of the hedged instruments were unchanged and the swap was an effective fair value hedge.

As of June 30, 2017, $250,000 of Legg Mason's long-term debt matures in fiscal 2020, and $2,000,000 matures after fiscal 2022.

At June 30, 2017, the estimated fair value of Long-term debt was approximately $2,333,658. The fair value of debt was estimated using publicly quoted market prices and was classified as Level 2 in the fair value hierarchy.

8.  Stock-Based Compensation

See Note 1 regarding updated stock-based compensation accounting guidance effective April 1, 2017.

Legg Mason's stock-based compensation includes stock options, an employee stock purchase plan, market-based performance shares payable in common stock, restricted stock awards and units, affiliate management equity plans and deferred compensation payable in stock. Shares available for issuance under the equity incentive stock plan as of June 30, 2017, were 1,762. Legg Mason's stockholders have approved, effective August 1, 2017, a new equity incentive plan, under which a total of 6,500 shares, plus any shares remaining under the prior plan, are available for issuance. Options under Legg Mason’s employee stock plans have been granted at prices not less than 100% of the fair market value. Options are generally exercisable in equal increments over four or five years and expire within eight to 10 years from the date of grant.

29

As further discussed below, the components of Legg Mason's total stock-based compensation expense for the three months ended June 30, 2017 and 2016, were as follows:

	Three Months Ended June 30,
	2017		2016
Stock options	$	2,225	$	2,242
Restricted stock and restricted stock units	16,579		14,573
Employee stock purchase plan	297		301
Affiliate management equity plans	776		19,499
Performance share units	1,185		850
Employee stock trust	6		6
Total stock-based compensation expense	$	21,068	$	37,471

Stock Options

Stock option transactions under Legg Mason's equity incentive plans during the three months ended June 30, 2017 and 2016, are summarized below:

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Exercise Price Per Share		Number of Shares		Weighted-Average Exercise Price Per Share
Options outstanding at March 31	4,593		38.15		4,506		$	38.48
Granted	421		37.64		753		31.31
Exercised	(256	)	28.99		(56	)	29.04
Canceled/forfeited	(44	)	43.73		(42	)	43.93
Options outstanding at June 30	4,714		$	38.55	5,161		$	37.49

At June 30, 2017, options were exercisable for 3,141 shares with a weighted-average exercise price of $37.32 and a weighted average remaining contractual life of 4.2 years. Unamortized compensation cost related to unvested options for 1,573 shares at June 30, 2017, was $12,722, which is expected to be recognized over a weighted-average period of 1.6 years.

The weighted-average fair value of service-based stock options granted during the three months ended June 30, 2017 and 2016, using the Black-Scholes option pricing model was $8.33 and $7.78, per share, respectively.

The following weighted-average assumptions were used in the model for grants in the three months ended June 30, 2017 and 2016:

	Three Months Ended June 30,
	2017		2016
Expected dividend yield	1.70	%	1.45	%
Risk-free interest rate	1.89	%	1.25	%
Expected volatility	26.79	%	30.95	%
Expected life (in years)	5.09		5.02

Legg Mason uses an equally weighted combination of both implied and historical volatility to measure expected volatility for calculating Black-Scholes option values.

30

Restricted Stock

Restricted stock and restricted stock unit transactions during the three months ended June 30, 2017 and 2016, are summarized below:

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Grant Date Value		Number of Shares		Weighted-Average Grant Date Value
Unvested shares at March 31	3,321		38.92		3,058		$	43.34
Granted	1,441		37.64		1,642		31.24
Vested	(1,281	)	39.41		(1,164	)	38.88
Canceled/forfeited	(32	)	38.89		(63	)	42.11
Unvested shares at June 30	3,449		$	38.20	3,473		$	39.11

Unamortized compensation cost related to unvested restricted stock and restricted stock unit awards at June 30, 2017, of $111,146 is expected to be recognized over a weighted-average period of 1.9 years.

Affiliate Management Equity Plans

In connection with the acquisition of Clarion Partners in April 2016, as further discussed in Note 2, Legg Mason implemented a management equity plan for the management team of Clarion Partners that entitles certain of its key employees to participate in 15% of the future growth, if any, of the Clarion Partners enterprise value (subject to appropriate discounts) subsequent to the date of the grant. The initial grant under the plan vested immediately and the related grant-date fair value of $15,200, determined by independent valuation, was recognized as Compensation and benefits expense in the Consolidated Statement of Income (Loss) and reflected in the Consolidated Balance Sheet as Redeemable noncontrolling interest during the three months ended June 30, 2016. As of June 30, 2017, the estimated aggregate redemption amount of units under the plan, as if they were currently redeemable, was $18,700.

Effective March 1, 2016, Legg Mason executed agreements with the management of its existing wholly-owned subsidiary, Royce, regarding employment arrangements with Royce management, revised revenue sharing, and the implementation of a management equity plan for Royce's key employees. Under the management equity plan, minority equity interests equivalent to 19% in the Royce entity have been issued to its management team. These interests allow the holders to receive quarterly distributions of a portion of Royce's pre-tax income in amounts equal to the percentage of ownership represented by the equity they hold, subject to payment of Legg Mason's revenue share and reasonable expenses. As of June 30, 2017, the estimated aggregate redemption amount of units under the plan, as if they were currently redeemable, was $28,241.

On March 31, 2014, Legg Mason implemented a management equity plan and granted units to key employees of its subsidiary ClearBridge Investments, LLC ("ClearBridge") that entitle them to participate in 15% of the future growth, if any, of the ClearBridge enterprise value (subject to appropriate discounts) subsequent to the grant date. Independent valuation determined the aggregate cost of the award to be approximately $16,000, which will be recognized as Compensation and benefits expense in the Consolidated Statements of Income over the related vesting periods through March 2019. Total compensation expense related to the ClearBridge affiliate management equity plan was $776 and $818 for the three months ended June 30, 2017 and 2016, respectively. This arrangement provides that one-half of the cost will be absorbed by the ClearBridge incentive pool. As of June 30, 2017, the estimated aggregate redemption amount of vested units under the ClearBridge plan, as if they were currently redeemable, was approximately $25,800.

On June 28, 2013, Legg Mason implemented a management equity plan with key employees of Permal. Independent valuation determined the aggregate cost of the awards to be approximately $9,000, which was being recognized as Compensation and benefits expense in the Consolidated Statements of Income over the related vesting period through December 2017. In April 2016, in conjunction with the Permal restructuring in preparation for the combination with EnTrust, the Permal management equity plan was liquidated with a payment of $7,150 to its participants, and the remaining $3,481 unamortized cost was expensed during the three months ended June 30, 2016.

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Other

As of June 30, 2017 and 2016, non-employee directors held 67 and 54 restricted stock units, respectively, which vest on the grant date and are, therefore, not included in the unvested shares of restricted stock and restricted stock units in the table above.

As discussed in Note 3, upon the acquisition of Clarion Partners in April 2016, Legg Mason granted certain key employees of Clarion Partners a total of 716 performance-based Legg Mason restricted share units, which are not included in the unvested shares of restricted stock and restricted stock units in the table above, with an aggregate fair value of $11,121, which was included in the purchase price, that vest upon Clarion Partners achieving a certain level of EBITDA, as defined in the purchase agreement, within a designated period after the closing of the acquisition.

In May 2017 and 2016, Legg Mason granted certain executive officers a total of 111 and 182 performance share units, respectively, as part of their fiscal 2017 and 2016 incentive award with an aggregate value of $3,503 and $3,528, respectively. The vesting of performance share units granted in May 2017 and 2016, and the number of shares payable at vesting are determined based on Legg Mason’s relative total stockholder return over a three-year period ending March 31, 2020 and 2019, respectively. The grant date fair value per unit for the May 2017 and 2016 performance share units of $31.42 and $19.36, respectively, was estimated as of the grant date using a Monte Carlo pricing model with the following assumptions:

	2017		2016
Expected dividend yield	2.96	%	2.87	%
Risk-free interest rate	1.47	%	0.89	%
Expected volatility	27.73	%	26.01	%

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9. Commitments and Contingencies

Legg Mason leases office facilities and equipment under non-cancelable operating leases, and also has multi-year agreements for certain services. These leases and service agreements expire on varying dates through fiscal 2028. Certain leases provide for renewal options and contain escalation clauses providing for increased rentals based upon maintenance, utility and tax increases.

As of June 30, 2017, the minimum annual aggregate rentals under operating leases and service agreements are as follows:

Remaining fiscal 2018	$	96,134
2019	112,339
2020	99,336
2021	90,007
2022	88,201
Thereafter	187,773
Total(1)	$	673,790

(1) Includes $611,637 in real estate and equipment leases and $62,153 in service and maintenance agreements.

The minimum rental commitments shown above have not been reduced by $125,444 for minimum sublease rentals to be received in the future under non-cancelable subleases, of which approximately 35% is due from one counterparty.  The lease reserve liability, which is included in the table below, for space subleased as of June 30, 2017 and March 31, 2017, was $31,605 and $28,821, respectively. If a sub-tenant defaults on a sublease, Legg Mason may incur operating charges to adjust the existing lease reserve liability to reflect expected future sublease rentals at reduced amounts, dependent on the commercial real estate market at such time.

The minimum rental commitments shown above also include $8,015 for commitments related to space that has been vacated, but for which subleases are being pursued. The related lease reserve liability, also included in the table below, was $5,126 and $10,867 as of June 30, 2017 and March 31, 2017, respectively, and remains subject to adjustment based on circumstances in the real estate markets that may require a change in assumptions or the actual terms of a sublease that is ultimately secured. The lease reserve liability takes into consideration various assumptions, including the expected amount of time it will take to secure a sublease agreement and prevailing rental rates in the applicable real estate markets.

During fiscal 2016 and fiscal 2017, certain office space was permanently vacated in connection with the combination of EnTrust and Permal. During fiscal 2017, the lease related to a portion of this space was terminated, resulting in reductions in the lease reserve liability totaling $4,495. Also during fiscal 2017, a sublease was executed for headquarters space that had been vacated during fiscal 2016, resulting in a $2,700 reduction in the lease reserve liability for terms more favorable than estimated. This activity is reflected in the lease reserve liability in the table below.

The lease reserve liability for subleased space and vacated space for which subleases are being pursued is included in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets. The table below presents a summary of the changes in the lease reserve liability:

Balance as of March 31, 2016	$	52,240
Accrued charges for vacated and subleased space (1) (2)	9,454
Payments, net	(16,531		)
Adjustments and other	(5,475		)
Balance as of March 31, 2017	39,688
Payments, net	(3,273		)
Adjustments and other	316
Balance as of June 30, 2017	$	36,731

(1) Included in Occupancy expense in the Consolidated Statements of Income

(2) Includes $9,069 related to the restructuring of Permal for the combination with EnTrust

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As of June 30, 2017, Legg Mason had commitments to invest $35,863 in limited partnerships that make private investments. These commitments are expected to be outstanding, or funded as required, through the end of their respective investment periods ranging through fiscal 2029. Also, in connection with the acquisition of Clarion Partners, Legg Mason committed to provide $100,000 of seed capital to Clarion Partners products after the second anniversary of the transaction closing. Legg Mason also committed to contribute up to $5,000 of additional working capital to Financial Guard, to be paid over the two-year period following the acquisition, of which $2,500 has been paid as of June 30, 2017.

As of June 30, 2017, Legg Mason had various commitments to pay contingent consideration relating to business acquisitions. The following table presents a summary of the maximum remaining contingent consideration and changes in the contingent consideration liability for each of Legg Mason's recent acquisitions. See Note 3 for additional details regarding each significant acquisition.

	RARE Infrastructure			Martin Currie			QS Investors			Other(2)			Total
Acquisition Date	October 21, 2015			October 1, 2014			May 30, 2014			Various
Maximum Remaining Contingent Consideration(1)	$	81,426		$	423,075		$	23,400		$	5,506		$	533,407
Contingent Consideration Liability
Balance as of March 31, 2016	$	27,145		$	41,222		$	13,749		$	2,469		$	84,585
Initial purchase accounting accrual	—			—			—			2,000			2,000
Payment	—			—			(6,587		)	—			(6,587		)
Fair value adjustments	(10,000		)	(25,000		)	(2,500		)	(2,000		)	(39,500		)
Foreign exchange and accretion	299			(4,204		)	179			38			(3,688		)
Balance as of March 31, 2017	17,444			12,018			4,841			2,507			36,810
Fair value adjustments	(15,250		)	—			(1,300		)	—			(16,550		)
Foreign exchange and accretion	(66		)	462			42			(1		)	437
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697
Balance Sheet Classification
Current Contingent consideration	$	—		$	12,480		$	—		$	2,506		$	14,986
Non-current Contingent consideration	2,128			—			3,583			—			5,711
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697

(1) Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

(2) Includes amounts related to the acquisition of Financial Guard on August 17, 2016 and PK Investments on December 31, 2015.

In the normal course of business, Legg Mason enters into contracts that contain a variety of representations and warranties and that provide general indemnifications, which are not considered financial guarantees by relevant accounting guidance. Legg Mason’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against Legg Mason that have not yet occurred.

Legg Mason has been the subject of customer complaints and has also been named as a defendant in various legal actions arising primarily from asset management, securities brokerage, and investment banking activities, including certain class actions, which primarily allege violations of securities laws and seek unspecified damages, which could be substantial. In the normal course of its business, Legg Mason has also received subpoenas and is currently involved in governmental and industry self-regulatory agency inquiries, investigations and, from time to time, proceedings involving asset management activities. In accordance with guidance for accounting for contingencies, Legg Mason has established provisions for estimated losses from pending complaints, legal actions, investigations and proceedings when it is probable that a loss has been incurred and a reasonable estimate of loss can be made.

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Legg Mason cannot estimate the reasonably possible loss or range of loss associated with matters of litigation and other proceedings, including those described above as customer complaints, legal actions, inquiries, proceedings and investigations. The inability to provide a reasonably possible amount or range of losses is not because there is uncertainty as to the ultimate outcome of a matter, but because liability and damage issues have not developed to the point where Legg Mason can conclude that there is both a reasonable possibility of a loss and a meaningful amount or range of possible losses. There are numerous aspects to customer complaints, legal actions, inquiries, proceedings and investigations that prevent Legg Mason from estimating a related amount or range of reasonably possible losses. These aspects include, among other things, the nature of the matters; that significant relevant facts are not known, are uncertain or are in dispute; and that damages sought are not specified, are uncertain, unsupportable or unexplained. In addition, for legal actions, discovery may not yet have started, may not be complete or may not be conclusive, and meaningful settlement discussions may not have occurred. Further, for regulatory matters, investigations may run their course without any clear indication of wrongdoing or fault until their conclusion.

In management's opinion, an adequate accrual has been made as of June 30, 2017, to provide for any probable losses that may arise from matters for which the Company could reasonably estimate an amount. Legg Mason's financial condition, results of operations and cash flows could be materially affected during a period in which a matter is ultimately resolved. In addition, the ultimate costs of litigation-related charges can vary significantly from period-to-period, depending on factors such as market conditions, the size and volume of customer complaints and claims, including class action suits, and recoveries from indemnification, contribution, insurance reimbursement, or reductions in compensation under revenue share arrangements.

As further described in Note 3, Legg Mason may be obligated to settle noncontrolling interests related to certain affiliates. As of June 30, 2017, affiliate noncontrolling interests, excluding amounts related to management equity plans, aggregated $585,995. In addition, as of June 30, 2017, the estimated redemption value for units under affiliate management equity plans aggregated $72,741. See Notes 8 and 11 for additional information regarding affiliate management equity plans and noncontrolling interests, respectively.

10. Earnings Per Share

Basic earnings per share attributable to Legg Mason, Inc. shareholders ("EPS") is calculated by dividing Net Income Attributable to Legg Mason, Inc. (adjusted by removing earnings allocated to participating securities) by the weighted-average number of shares outstanding, which excludes participating securities. Legg Mason issues to employees restricted stock and restricted stock units that are deemed to be participating securities prior to vesting, because the related unvested restricted shares/units entitle their holder to nonforfeitable dividend rights. In this circumstance, accounting guidance requires a “two-class method” for EPS calculations that excludes earnings (potentially both distributed and undistributed) allocated to participating securities and does not allocate losses to participating securities.

Diluted EPS is similar to basic EPS, but the effect of potential common shares is included in the calculation unless the potential common shares are antidilutive.

During the three months ended June 30, 2017 and 2016, Legg Mason purchased and retired 2,369 and 3,475 shares of its common stock, respectively, for $89,649 and $111,673, respectively, through open market purchases, and retired 337 and 357 shares of its common stock, respectively, for $12,811 and $11,661, respectively, under net share settlements of annual deferred compensation award vesting. Total retired shares reduced weighted-average shares outstanding by 1,329 and 2,015 shares for the three months ended June 30, 2017 and 2016, respectively.

The par value of the shares repurchased is charged to common stock, with the excess of the purchase price over par first charged against additional paid-in capital, with the remaining balance, if any, charged against retained earnings.

35

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

	Three Months Ended June 30,
	2017		2016
Basic weighted-average shares outstanding for EPS	94,869		104,465
Potential common shares:
Dilutive employee stock options	428		212
Diluted weighted-average shares outstanding for EPS	95,297		104,677
Net Income Attributable to Legg Mason, Inc.	$	50,920	$	33,452
Less: Earnings (distributed and undistributed) allocated to participating securities	1,736		1,051
Net Income (Distributed and Undistributed) Allocated to Shareholders (Excluding Participating Securities)	$	49,184	$	32,401
Net Income per share Attributable to Legg Mason, Inc. Shareholders
Basic	$	0.52	$	0.31
Diluted	$	0.52	$	0.31

The weighted-average shares for the three months ended June 30, 2017 and 2016, exclude weighted-average unvested restricted shares deemed to be participating securities of 3,192 and 3,134, respectively.

The diluted EPS calculations for the three months ended June 30, 2017 and 2016, exclude any potential common shares issuable under the 14,205 warrants issued in connection with the repurchase of Convertible Notes in May 2012 because the market price of Legg Mason common stock did not exceed the exercise price, and therefore, the warrants would be antidilutive.

Options to purchase 2,284 and 3,493 shares for the three months ended June 30, 2017 and 2016, respectively, were not included in the computation of diluted EPS because the presumed proceeds from exercising such options, including the related income tax benefits, exceed the average price of the common shares for the period and, therefore, the options are deemed antidilutive.

Further, market- and performance-based awards are excluded from potential dilution until the designated market or performance condition is met. Unvested restricted shares for the three months ended June 30, 2017 and 2016, were antidilutive and, therefore, do not further impact diluted EPS.

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11. Noncontrolling Interests

Net income attributable to noncontrolling interests for the three months ended June 30, included the following amounts:

	Three Months Ended June 30,
	2017		2016
Net income attributable to redeemable noncontrolling interests	$	10,356	$	10,037
Net income attributable to nonredeemable noncontrolling interests	2,261		1,851
Total	$	12,617	$	11,888

Total redeemable and nonredeemable noncontrolling interests for the three months ended June 30, 2017 and 2016, included the following amounts:

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2017	$	58,470	$	591,254		$	28,048	$	677,772		$	27,798
Net income attributable to noncontrolling interests	648		9,708			—		10,356			2,261
Net subscriptions (redemptions) and other	10,266		—			—		10,266			—
Distributions	—		(15,913		)	—		(15,913		)	(1,818		)
Foreign exchange	—		333			—		333			—
Vesting/change in estimated redemption value	—		613			776		1,389			—
Balance as of June 30, 2017	$	69,384	$	585,995		$	28,824	$	684,203		$	28,241

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2016	$	94,136	$	68,922		$	12,727	$	175,785		$	22,202
Net income attributable to noncontrolling interests	2,480		7,557			—		10,037			1,851
Net subscriptions (redemptions) and other(3)	18,767		2,604			—		21,371			—
Distributions	—		(1,504		)	—		(1,504		)	(802		)
Grants (settlements), net	—		—			6,120		6,120			—
Business acquisition	—		508,500			—		508,500			—
Foreign exchange	—		(1,998		)	—		(1,998		)	—
Vesting/change in estimated redemption value	—		—			4,251		4,251			—
Balance as of June 30, 2016	$	115,383	$	584,081		$	23,098	$	722,562		$	23,251

(1) Principally related to VIE and seeded investment products.

(2) Related to Royce management equity plan.

(3) Includes the impact related to the adoption of updated consolidation accounting guidance.

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Redeemable noncontrolling interests by affiliate (exclusive of management equity plans) for the three months ended June 30, 2017 and 2016, included the following amounts:

	Redeemable noncontrolling interests
	EnTrust-Permal			Clarion Partners			RARE Infrastructure			Other			Total
Balance as of March 31, 2017	$	404,852		$	113,173		$	68,747		$	4,482		$	591,254
Net income attributable to noncontrolling interests	4,595			3,233			1,823			57			9,708
Distributions	(5,884		)	(7,806		)	(2,098		)	(125		)	(15,913		)
Foreign exchange	—			—			333			—			333
Change in estimated redemption value	—			613			—			—			613
Balance as of June 30, 2017	$	403,563		$	109,213		$	68,805		$	4,414		$	585,995

	Redeemable noncontrolling interests
	EnTrust-Permal		Clarion Partners		RARE Infrastructure			Other			Total
Balance as of March 31, 2016	$	—	$	—	$	67,155		$	1,767		$	68,922
Net income attributable to noncontrolling interests	4,159		2,244		1,098			56			7,557
Subscriptions	—		—		—			2,604			2,604
Distributions	—		—		(1,317		)	(187		)	(1,504		)
Business acquisitions	403,200		105,300		—			—			508,500
Foreign exchange	—		—		(1,998		)	—			(1,998		)
Balance as of June 30, 2016	$	407,359	$	107,544	$	64,938		$	4,240		$	584,081

12. Derivatives and Hedging

Legg Mason uses currency forwards to economically hedge the risk of movements in exchange rates, primarily between the U.S. dollar, British pound, Australian dollar, Singapore dollar, Japanese yen, and euro. All derivative transactions for which Legg Mason has certain legally enforceable rights of setoff are governed by International Swaps and Derivative Association ("ISDA") Master Agreements. For these derivative transactions, Legg Mason has one ISDA Master Agreement with each of the significant counterparties, which covers transactions with that counterparty. Each of the respective ISDA agreements provides for settlement netting and close-out netting between Legg Mason and that counterparty, which are legally enforceable rights to setoff. Other assets recorded in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, were $3,083 and $2,718, respectively. Other liabilities recorded in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, were $274 and $4,522, respectively.

Legg Mason also uses market hedges on certain seed capital investments by entering into futures contracts to sell index funds that benchmark the hedged seed capital investments.

On June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to a Legg Mason sponsored ETF, which resulted in an investment by each of the financial intermediaries in the ETF. Under the terms of each of the total return swap arrangements, LeggMason receives the related investment gains and losses on the underlying shares of the ETF, and also pays a floating spread on the value of the underlying shares equal to the three-month LIBOR plus 1.35%. The total return swap arrangements allow either party to terminate all or part of the arrangement, provide for automatic termination upon occurrence of certain events, and expire in June 2018. Each financial intermediary counterparty may hedge its total return swap position through an investment in the ETF and collectively, the four financial intermediaries have purchased interests in the Legg Mason ETF for a total amount of $20,253. In connection with the arrangements, Legg Mason executed a futures contract with a notional amount of $19,931 to partially hedge the gains and losses recognized on the total return swaps.

As further discussed in Note 7, in April 2016, Legg Mason executed a 4.67-year, amortizing interest rate swap, which was terminated in August 2016. Also, in April 2016, Legg Mason terminated another previously existing interest rate swap.

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With the exception of the two interest rate swap contracts discussed in Note 7, Legg Mason has not designated any derivatives as hedging instruments for accounting purposes during the periods ended June 30, 2017, March 31, 2017, or June 30, 2016. In addition to the total return swap arrangements and the related futures contract discussed above, as of June 30, 2017, Legg Mason had open currency forward contracts with aggregate notional amounts totaling $219,118, and open futures contracts relating to seed capital investments with aggregate notional values totaling $129,496. With the exception of the total return swap arrangements and related futures contract, these amounts are representative of the level of non-hedge designation derivative activity throughout the three months ended June 30, 2017 and 2016. As of June 30, 2017, the weighted-average remaining contract terms for currency forward contracts and futures contracts relating to seed capital investments were eight and three months, respectively.

The following table presents the derivative assets and related offsets, if any, as of June 30, 2017:

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,757	$	(1,795	)	$	1,962	$	—	$	—	$	1,962
Futures contracts relating to:
Seed capital investments	—		—			—		853		3,834		4,687
Total return swaps	—		—			—		268		574		842
Total futures contracts	—		—			—		1,121		4,408		5,529
Total derivative instruments not designated as hedging instruments	$	3,757	$	(1,795	)	$	1,962	$	1,121	$	4,408	$	7,491

The following table presents the derivative liabilities and related offsets, if any, as of June 30, 2017:

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(187	)	$	20	$	(167	)	$	—		$	—	$	(167	)
Total return swaps	—			—		—			(107		)	1,275		1,168
Total derivative instruments not designated as hedging instruments	$	(187	)	$	20	$	(167	)	$	(107	)	$	1,275	$	1,001

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The following table presents the derivative assets and related offsets, if any, as of March 31, 2017:

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,470	$	(928	)	$	2,542	$	—	$	—	$	2,542
Futures contracts relating to seed capital investments	—		—			—		176		2,878		3,054
Total derivative instruments not designated as hedging instruments	$	3,470	$	(928	)	$	2,542	$	176	$	2,878	$	5,596

The following table presents the derivative liabilities and related offsets, if any, as of March 31, 2017:

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(3,641	)	$	751	$	(2,890	)	$	—		$	—	$	(2,890	)
Futures contracts relating to seed capital investments	—			—		—			(1,632		)	4,155		2,523
Total derivative instruments not designated as hedging instruments	$	(3,641	)	$	751	$	(2,890	)	$	(1,632	)	$	4,155	$	(367	)

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The following table presents gains (losses) recognized in the Consolidated Statements of Income on derivative instruments. As described above, the currency forward contracts and futures and forward contracts for seed capital investments included below are economic hedges of interest rate and market risk of certain operating and investing activities of Legg Mason, including foreign exchange risk on acquisition contingent consideration. Gains and losses on these derivative instruments substantially offset gains and losses of the economically hedged items.

		Three Months Ended June 30,
		2017					2016
	Income Statement Classification	Gains		Losses			Gains		Losses
Derivatives not designated as hedging instruments
Currency forward contracts relating to:
Operating activities	Other expense	$	4,712	$	(2,572	)	$	10,530	$	(7,983	)
Seed capital investments	Other non-operating income (expense)	411		(1,049		)	1,334		(856		)
Futures contracts relating to:
Seed capital investments	Other non-operating income (expense)	848		(5,500		)	1,751		(3,391		)
Total return swaps	Other non-operating income (expense)	267		—			—		—
Total return swap	Other non-operating income (expense)	—		(107		)	—		—
Total gain (loss) from derivatives not designated as hedging instruments		6,238		(9,228		)	13,615		(12,230		)
Derivative designated as a cash flow hedge (See Note 7)
Interest rate swap	Interest expense	—		—			—		(527		)
Total		$	6,238	$	(9,228	)	$	13,615	$	(12,757	)

13. Variable Interest Entities and Consolidated Investment Vehicles

In accordance with financial accounting standards, Legg Mason consolidates certain sponsored investment products, some of which are designated as CIVs. As further discussed in Note 2, Legg Mason concluded it was the primary beneficiary of three foreign mutual fund VIEs as of each June 30, 2017 and March 31, 2017, and of nine foreign mutual fund VIEs as of June 30, 2016, which were consolidated and designated as CIVs, because it held significant financial interests in these funds. Legg Mason also concluded it was the primary beneficiary of two sponsored investment fund VIEs, and one employee-owned fund that it sponsors, as of each June 30, 2017, March 31, 2017, and June 30, 2016, which were also consolidated and designated as CIVs. In addition, Legg Mason determined it was the primary beneficiary of a sponsored ETF as a result of total return swap arrangements it executed on June 6, 2017 with four separate financial intermediaries. As such, the underlying sponsored investment fund was consolidated and designated a CIV during the three months ended June 30, 2017.

As of June 30, 2017 and March 31, 2017, Legg Mason's investment in CIVs was $36,026 and $28,300, respectively, which represent its maximum risk of investment loss, excluding uncollected advisory fees. In addition, as of June 30, 2017, under the above referenced total return swap arrangements, Legg Mason receives the related investment gains and losses on notional amounts totaling $20,253. The assets of these CIVs are primarily comprised of investment securities. Investors and creditors of these CIVs have no recourse to the general credit or assets of Legg Mason beyond its investment in these funds.

See Notes 2 and 4 for additional information regarding VIEs, VREs, and the consolidation of investment products.

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The following tables reflect the impact of CIVs in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, respectively, and the Consolidated Statements of Income for the three months ended June 30, 2017 and 2016, respectively:

Consolidating Balance Sheets

	June 30, 2017									March 31, 2017
	Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals		Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals
Current Assets	$	1,541,578	$	97,091	$	(33,068	)	$	1,605,601	$	1,749,959	$	77,406	$	(25,618	)	$	1,801,747
Non-current assets	6,441,831		9,968		(2,971		)	6,448,828		6,481,376		9,987		(2,695		)	6,488,668
Total Assets	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415
Current Liabilities	$	584,635	$	1,762	$	(13	)	$	586,384	$	808,664	$	736	$	(13	)	$	809,387
Non-current liabilities	2,789,069		—		—			2,789,069		2,792,084		—		—			2,792,084
Total Liabilities	3,373,704		1,762		(13		)	3,375,453		3,600,748		736		(13		)	3,601,471
Redeemable Non-controlling interests	614,819		12,691		56,693			684,203		619,302		26,853		31,617			677,772
Total Stockholders’ Equity	3,994,886		92,606		(92,719		)	3,994,773		4,011,285		59,804		(59,917		)	4,011,172
Total Liabilities and Equity	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415

(1) Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

Consolidating Statements of Income

	Three Months Ended
	June 30, 2017												June 30, 2016
	Balance Before Consolidation of CIVs and Other(1)			CIVs and Other(1)			Eliminations			Consolidated Totals			Balance Before Consolidation of CIVs and Other			CIVs and Other(1)			Eliminations			Consolidated Totals
Total Operating Revenues	$	793,886		$	—		$	(44	)	$	793,842		$	700,177		$	(12	)	$	—		$	700,165
Total Operating Expenses	686,614			68			(45		)	686,637			626,511			99			—			626,610
Operating Income (Loss)	107,272			(68		)	1			107,205			73,666			(111		)	—			73,555
Total Non-Operating Income (Expense)	(16,127		)	1,239			(525		)	(15,413		)	(15,495		)	2,548			43			(12,904		)
Income Before Income Tax Provision	91,145			1,171			(524		)	91,792			58,171			2,437			43			60,651
Income tax provision	28,255			—			—			28,255			15,311			—			—			15,311
Net Income	62,890			1,171			(524		)	63,537			42,860			2,437			43			45,340
Less:  Net income attributable to noncontrolling interests	11,970			243			404			12,617			9,408			2			2,478			11,888
Net Income Attributable to Legg Mason, Inc.	$	50,920		$	928		$	(928	)	$	50,920		$	33,452		$	2,435		$	(2,435	)	$	33,452

(1) Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

Non-Operating Income (Expense) includes interest income, interest expense, and net gains (losses) on investments.

42

The consolidation of CIVs has no impact on Net Income Attributable to Legg Mason, Inc.

As of June 30, 2017 and March 31, 2017, financial assets of CIVs carried at fair value totaling $67,241 and $33,991, respectively, were valued using Level 1 inputs and totaling $23,054 and $24,734, respectively, were valued using NAV as a practical expedient. Legg Mason had no financial liabilities of CIVs carried at fair value as of June 30, 2017 or March 31, 2017.

There were no transfers between Level 1 and Level 2 during either of the three months ended June 30, 2017 and 2016.

The NAVs used as a practical expedient by CIVs have been provided by the investees and have been derived from the fair values of the underlying investments as of the respective reporting dates. The following table summarizes, as of June 30, 2017 and March 31, 2017, the nature of these investments and any related liquidation restrictions or other factors, which may impact the ultimate value realized:

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments	Remaining Term
Hedge funds	Global macro, fixed income, long/short equity, systematic, emerging market, U.S. and European hedge	$	23,054	(1)	$	24,734	n/a	n/a

n/a - not applicable

(1) Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

As of June 30, 2017 and March 31, 2017, for VIEs in which Legg Mason holds a variable interest, but for which it was not the primary beneficiary, Legg Mason's carrying value and maximum risk of loss were as follows:

	As of June 30, 2017				As of March 31, 2017
	Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)		Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)
Real Estate Investment Trusts	$	12,257	$	14,760	$	11,660	$	15,763
Other investment funds	47,149		63,648		47,063		73,710
Total	$	59,406	$	78,408	$	58,723	$	89,473

(1) Amounts are related to investments in proprietary and other fund products.

(2) Includes equity investments the Company has made or is required to make and any earned but uncollected management fees.

The Company's total AUM of unconsolidated VIEs was $27,013,127 and $26,735,285 as of June 30, 2017 and March 31, 2017, respectively.

The assets of these VIEs are primarily comprised of cash and cash equivalents and investment securities, and the liabilities are primarily comprised of various expense accruals. These VIEs were not consolidated because Legg Mason does not have both the power to direct significant economic activities of the entity and rights/obligations associated with benefits/losses that could be significant to the entity.

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Item 2.        Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements

We have made in this report, and from time to time may otherwise make in our public filings, press releases and statements by our management, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including information relating to anticipated growth in revenues or earnings per share, anticipated changes in our business or in the amount of our client assets under management ("AUM") or assets under advisement ("AUA"), anticipated future performance of our business, including expected earnings per share in future periods, anticipated future investment performance of our affiliates, our expected future net client cash flows, anticipated expense levels, changes in expenses, the expected effects of acquisitions and expectations regarding financial market conditions. The words or phrases “can be,” “may be,” “expects,” “may affect,” “may depend,” “believes,” “estimate,” “project,” “anticipate” and similar words and phrases are intended to identify such forward-looking statements. Such forward-looking statements are subject to various known and unknown risks and uncertainties and we caution readers that any forward-looking information provided by or on behalf of Legg Mason is not a guarantee of future performance.

Actual results may differ materially from those in forward-looking information as a result of various factors, some of which are beyond our control, including but not limited to those discussed under the heading "Risk Factors" and elsewhere herein, under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended March 31, 2017, and our other public filings, press releases and statements by our management. Due to such risks, uncertainties and other factors, we caution each person receiving such forward-looking information not to place undue reliance on such statements. Further, such forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligations to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

Executive Overview

Legg Mason, Inc., a holding company, with its subsidiaries (collectively, "Legg Mason") is a global asset management firm. Acting through our subsidiaries, we provide investment management and related services to institutional and individual clients, company-sponsored mutual funds and other investment products. We offer these products and services directly and through various financial intermediaries. We have operations principally in the U.S. and the U.K. and also have offices in Australia, Bahamas, Brazil, Canada, Chile, China, Dubai, France, Germany, Italy, Japan, Singapore, Spain, Switzerland and Taiwan. Terms such as "we," "us," "our," and "Company" refer to Legg Mason.

The financial services business in which we are engaged is extremely competitive. Our competition includes numerous global, national, regional and local asset management firms, commercial banks, insurance companies, and other financial services companies. The industry continues to experience disruption and challenges, including a shift to lower-fee passively managed products, increasing fee pressure (including pressure arising from the shift to lower fee passive products), the increased role of technology in asset management services, the constant introduction of new products and services, and the consolidation of financial services firms through mergers and acquisitions. The asset management industry is also subject to extensive and evolving regulation under federal, state, and foreign laws. Like most firms, we have been and will continue to be impacted by regulatory and legislative changes. Responding to these changes and keeping abreast of regulatory developments, has required, and will continue to require, us to incur costs that impact our profitability.

Our financial position and results of operations are materially affected by the overall trends and conditions of global financial markets. Results of any individual period should not be considered representative of future results. Our profitability is sensitive to a variety of factors, including the amount and composition of our AUM, and the volatility and general level of securities prices, interest rates, and changes in currency exchange rates, among other things. Periods of unfavorable market conditions are likely to have an adverse effect on our profitability. In addition, the diversification of services and products offered, investment performance, access to distribution channels, reputation in the market, attraction and retention of key employees and client relations are significant factors in determining whether we are successful in the attraction and retention of clients. In the last few years, the industry has seen flows into products for which we do not currently garner significant market share, including, in particular, passive products, and corresponding flows out of products in which we do have market share. For a further discussion of factors that may affect our results of operations, refer to Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017.

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Our strategy is to expand client choice. We focus our strategic priorities on the four primary areas listed below.  Management keeps these strategic priorities in mind when it evaluates our operating performance and financial condition.  Consistent with this approach, we have also presented in the table below the most important initiatives on which management currently focuses in evaluating our performance and financial condition.

	Strategic Priorities		Initiatives
-	Products	-	Create an innovative portfolio of investment products and promote revenue growth by developing new products and product vehicles and leveraging the capabilities of our affiliates
		-	Identify and execute strategic acquisitions to strengthen our affiliates and increase product offerings
-	Performance	-	Deliver compelling and consistent performance against both relevant benchmarks and the products and services of our competitors
-	Distribution	-	Continue to maintain and enhance our top tier distribution function with the capability to offer solutions to relevant investment challenges and grow market share worldwide
		-	Develop alternative and innovative distribution approaches for expanded client access
-	Productivity	-	Operate with a high level of effectiveness and improve ongoing efficiency
		-	Align economic relationships with affiliate management teams, including retained affiliate management equity and the implementation of affiliate management equity plan agreements

The strategic priorities discussed above are designed to drive improvements in our net flows, earnings, cash flows, AUM and other key metrics, including operating margin.  Certain of these key metrics are discussed in our quarterly results discussion below.

In connection with these strategic priorities, on May 4, 2017, we launched the ClearBridge All Cap Growth Exchange Traded Fund ("ETF"). This product is an actively managed strategy that seeks to achieve long-term capital appreciation through investment in large-, mid-, and small capitalization stocks that have the potential for above average long-term earnings and/or cash flow growth. We expect ETFs to be a growth opportunity, as investor interest has trended away from traditional mutual funds, and intend to continue to focus on increasing our ETF product offerings during fiscal 2018.

Net Income Attributable to Legg Mason, Inc. for the three months ended June 30, 2017, was $50.9 million, or $0.52 per diluted share, as compared to $33.5 million, or $0.31 per diluted share for the three months ended June 30, 2016. The three months ended June 30, 2017, included pre-tax impairment charges totaling $34.0 million, or $0.24 per diluted share, related to the RARE Infrastructure Limited ("RARE Infrastructure") amortizable intangible and trade name assets, which were offset in part by credits totaling $16.6 million, or $0.12 per diluted share, related to fair value adjustments to decrease the contingent consideration liabilities related to the acquisitions of RARE Infrastructure and QS Investors Holdings, LLC ("QS Investors"). The three months ended June 30, 2016, included acquisition and transition-related costs of $56.8 million, or $0.37 per diluted share, related to the acquisitions of EnTrust Capital ("EnTrust") and Clarion Partners, and the combination of The Permal Group, Limited ("Permal") with EnTrust, which were offset in part by a credit of $18.0 million, or $0.11 per diluted share, related to a fair value adjustment to decrease the contingent consideration liabilities related to the acquisition of Martin Currie (Holdings) Limited ("Martin Currie").

Average AUM and total operating revenues both increased for the three months ended June 30, 2017, as compared to the three months ended June 30, 2016, as further discussed below.

During the 12-month period ended June 30, 2017, total AUM remained relatively flat, as net client outflows in liquidity AUM were substantially offset by the positive impact of market performance and other, which includes the reclassification, effective April 1, 2017, of certain assets which were previously classified as AUA to AUM due to a change in our policy on classification of AUA and AUM, as further discussed below.

The following discussion and analysis provides additional information regarding our financial condition and results of operations.

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Business Environment

Equity markets continued to increase during the three months ended June 30, 2017, largely due to continued global expansion supported by technology gains across sectors in the U.S. as well as widespread market gains helping to improve international earnings. International equity markets also improved, due to signs of economic growth and central bank stimulus efforts.

Our industry continues to be impacted by the generally low growth and low return environment, with continued migration from active to passive strategies, which, together with regulatory reform, continues to put pressure on fees, contributing to the consolidation of products and managers on distribution platforms. These factors continue to create significant flow challenges for active managers like ourselves.

During the three months ended June 30, 2017, major U.S. equity market indices and bond market indices increased. During the three months ended June 30, 2016, major U.S. equity market indices were mixed, while bond market indices increased.

	% Change for the three months ended June 30:
Indices(1)	2017		2016
Dow Jones Industrial Average(2)	3.3	%	1.4	%
S&P 500(2)	2.6	%	1.9	%
Nasdaq Composite Index(2)	3.9	%	(0.6	)%
Barclays Capital U.S. Aggregate Bond Index	1.5	%	2.2	%
Barclays Capital Global Aggregate Bond Index	2.6	%	2.9	%

(1) Indices are trademarks of Dow Jones & Company, McGraw-Hill Companies, Inc., Nasdaq Stock Market, Inc., and Barclays Capital, respectively, which are not affiliated with Legg Mason.

(2) Excludes the impact of the reinvestment of dividends and stock splits.

In June 2017, the Federal Reserve Board increased the target federal funds rate from 1.00% to 1.25%, representing the third consecutive quarter with an increase. While the economic outlook for the U.S. has remained positive in recent years, it has been impacted by increased uncertainty. The financial environment in which we operate continues to reflect a heightened level of sensitivity and continued pressure on our fees, as previously discussed.

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Quarter Ended June 30, 2017, Compared to Quarter Ended June 30, 2016

Assets Under Management and Assets Under Advisement

Assets Under Management

Our AUM is primarily managed across the following asset classes:

Equity		Fixed Income		Alternative		Liquidity
-	Large Cap Growth	-	U.S. Intermediate Investment Grade	-	Real Estate	-	U.S. Managed Cash
-	Large Cap Value	-	U.S. Credit Aggregate	-	Hedge Funds	-	U.S. Municipal Cash
-	Equity Income	-	Global Opportunistic Fixed Income	-	Listed Infrastructure
-	International Equity	-	Global Government
-	Small Cap Core	-	U.S. Municipal
-	Large Cap Core	-	Global Fixed Income
-	Sector Equity	-	U.S. Long Duration
-	Small Cap Value	-	High Yield
-	Mid Cap Core	-	U.S. Limited Duration
-	Emerging Markets Equity	-	Emerging Markets Debt
-	Small Cap Growth
-	Global Equity

The components of the changes in our AUM (in billions) for the three months ended June 30, 2017 and 2016, were as follows:

	2017			2016
Beginning of period	$	728.4		$	669.6
Net client cash flows:
Investment funds, excluding liquidity products(1):
Subscriptions	15.8			12.6
Redemptions	(13.0		)	(14.7		)
Long-term separate account flows, net(2)	(2.3		)	1.0
Total long-term flows	0.5			(1.1		)
Liquidity fund flows, net	(11.6		)	7.9
Liquidity separate account flows, net	0.1			0.1
Total liquidity flows	(11.5		)	8.0
Total net client cash flows	(11.0		)	6.9
Realizations(3)	(1.3		)	—
Market performance and other(2)	24.7			12.3
Impact of foreign exchange	0.7			2.0
Acquisitions (disposition)(4)	(0.3		)	51.1
End of period	$	741.2		$	741.9

(1) Subscriptions and redemptions reflect the gross activity in the funds and include assets transferred between funds and between share classes.

(2) As further discussed below, for the three months ended June 30, 2017, Other includes the reclassification, effective April 1, 2017, of $16.0 billion of certain assets which were previously included in AUA to AUM due to a change in our policy on classification of AUA and AUM. Comparable AUA as of June 30, 2016 was $11.3 billion. Long-term separate account flows, net, for the three months ended June 30, 2017, includes $1.3 billion of net inflows related to this AUM. Net inflows related to the comparable AUA were $0.7 billion for the three months ended June 30, 2016, and are excluded from the table above. Other also includes the reinvestment of dividends and, for the three months ended June 30, 2017, a $(3.7) billion reconciliation to previously reported amounts.

(3) Realizations represent investment manager-driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. client requested redemptions, liquidations or asset transfers).

(4) Includes $41.5 billion and $9.6 billion related to the acquisitions of Clarion Partners and EnTrust, respectively, during the three months ended June 30, 2016.

AUM at June 30, 2017 was $741.2 billion, an increase of $12.8 billion, or 2%, from March 31, 2017. Total net client outflows were $11.0 billion, consisting of $11.5 billion of net client outflows from the liquidity asset class, which were offset in part by $0.5 billion of net client inflows into long-term asset classes. Long-term asset net inflows were comprised of equity net

47

inflows of $1.0 billion and fixed income net inflows of $0.3 billion, offset in part by alternative net outflows of $0.8 billion. Equity net inflows were primarily in products managed by ClearBridge Investments, LLC (“ClearBridge”) and Martin Currie, offset in part by equity net outflows at QS Investors, Royce and Associates ("Royce"), and Brandywine Global Investment Management, LLC ("Brandywine"). Fixed income net inflows were primarily in products managed by Western Asset Management Company ("Western Asset"). Alternative net outflows were primarily in products managed by RARE Infrastructure and EnTrustPermal Group Holdings, LLC ("EnTrustPermal"), offset in part by net inflows into products managed by Clarion Partners. We generally earn higher fees and profits on alternative and equity AUM and thus net flows in those asset classes more heavily impact our revenues and Net Income Attributable to Legg Mason, Inc. than do net flows in the fixed income and liquidity asset classes. Market performance and other was $24.7 billion, $16.0 billion of which relates to the reclassification of certain assets effective April 1, 2017, from AUA to AUM due to a change in our policy on classification of AUA and AUM, specifically for retail separately managed account programs that operate and have fees comparable to programs managed on a fully discretionary basis. Comparable AUA as of June 30, 2016, was $11.3 billion. Other also included a $(3.7) billion reconciliation to previously reported amounts. The positive impact of foreign currency exchange rate fluctuations was $0.7 billion and dispositions resulted in a decrease of $0.3 billion.

In the quarter ended June 30, 2017, we began to separately report realizations. Realizations are investment manager driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. requested redemptions, liquidations, or asset transfers). Realizations for the quarter ended June 30, 3017 were $1.3 billion. Realizations of $0.3 billion were included in net client cash flows for the three months ended June 30, 2016.

Our net client cash flows reflect the significant industry-wide flow pressure for active managers of equity and fixed income assets discussed above under the heading "Business Environment".

AUM by Asset Class

AUM by asset class (in billions) as of June 30, 2017 and 2016, was as follows:

	2017		% of Total		2016		% of Total		% Change
Equity	$	196.2	27	%	$	161.1	22	%	22	%
Fixed income	403.6		54		387.2		52		4
Alternative	66.5		9		72.6		10		(8	)
Total long-term assets	666.3		90		620.9		84		7
Liquidity	74.9		10		121.0		16		(38	)
Total	$	741.2	100	%	$	741.9	100	%	—

Average AUM by asset class (in billions) for the three months ended June 30, 2017 and 2016, was as follows:

	2017		% of Total		2016		% of Total		% Change
Equity	$	190.6	26	%	$	162.3	23	%	17	%
Fixed income	400.7		54		377.6		53		6
Alternative	67.4		9		57.8		8		17
Total long-term assets	658.7		89		597.7		84		10
Liquidity	81.6		11		111.4		16		(27	)
Total	$	740.3	100	%	$	709.1	100	%	4

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The component changes in our AUM by asset class (in billions) for the three months ended June 30, 2017 and 2016, were as follows:

	Equity			Fixed Income			Alternative			Total Long-Term			Liquidity			Total
March 31, 2017	$	179.8		$	394.3		$	67.9		$	642.0		$	86.4		$	728.4
Investment funds, excluding liquidity funds(1):
Subscriptions	7.3			7.0			1.5			15.8			—			15.8
Redemptions	(5.6		)	(6.0		)	(1.4		)	(13.0		)	—			(13.0		)
Separate account flows, net(2)	(0.7		)	(0.7		)	(0.9		)	(2.3		)	0.1			(2.2		)
Liquidity fund flows, net	—			—			—			—			(11.6		)	(11.6		)
Net client cash flows	1.0			0.3			(0.8		)	0.5			(11.5		)	(11.0		)
Realizations(3)	—			—			(1.3		)	(1.3		)	—			(1.3		)
Market performance and other(2)	15.6			8.3			0.6			24.5			0.2			24.7
Impact of foreign exchange	0.1			0.7			0.1			0.9			(0.2		)	0.7
Disposition	(0.3		)	—			—			(0.3		)	—			(0.3		)
June 30, 2017	$	196.2		$	403.6		$	66.5		$	666.3		$	74.9		$	741.2

(1) Subscriptions and redemptions reflect the gross activity in the funds and include assets transferred between funds and between share classes.

(2) Other includes the reclassification, effective April 1, 2017, of $12.1 billion and $3.9 billion of certain equity and fixed income assets, respectively, which were previously included in AUA to AUM due to a change in our policy on classification of AUA and AUM. Equity and fixed income separate account flows, net, include $0.7 billion and $0.6 billion, respectively, of net inflows related to this AUM. Other also includes the reinvestment of dividends and a $(3.7) billion reconciliation to previously reported amounts.

(3) Realizations represent investment manager-driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. client requested redemptions, liquidations or asset transfers).

	Equity			Fixed Income			Alternative			Total Long-Term			Liquidity		Total
March 31, 2016	$	162.3		$	372.3		$	22.7		$	557.3		$	112.3	$	669.6
Investment funds, excluding liquidity funds(1):
Subscriptions	5.3			5.9			1.4			12.6			—		12.6
Redemptions	(6.7		)	(5.1		)	(2.9		)	(14.7		)	—		(14.7		)
Separate account flows, net	(1.6		)	3.1			(0.5		)	1.0			0.1		1.1
Liquidity fund flows, net	—			—			—			—			7.9		7.9
Net client cash flows	(3.0		)	3.9			(2.0		)	(1.1		)	8.0		6.9
Market performance and other(2)	1.9			9.1			1.0			12.0			0.3		12.3
Impact of foreign exchange	(0.1		)	1.9			(0.2		)	1.6			0.4		2.0
Acquisitions(3)	—			—			51.1			51.1			—		51.1
June 30, 2016	$	161.1		$	387.2		$	72.6		$	620.9		$	121.0	$	741.9

(1) Subscriptions and redemptions reflect the gross activity in the funds and include assets transferred between funds and between share classes.

(2) Other is primarily the reinvestment of dividends.

(3) Includes $41.5 billion and $9.6 billion related to the acquisitions of Clarion Partners and EnTrust, respectively.

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The component changes in our AUM by asset class (in billions) for the trailing 12 months ended June 30, 2017 and 2016, were as follows:

	Equity			Fixed Income			Alternative			Total Long-Term			Liquidity			Total
June 30, 2016	$	161.1		$	387.2		$	72.6		$	620.9		$	121.0		$	741.9
Investment funds, excluding liquidity funds(1):
Subscriptions	29.1			31.7			6.4			67.2			—			67.2
Redemptions	(25.8		)	(29.4		)	(8.4		)	(63.6		)	—			(63.6		)
Separate account flows, net(2)	(4.5		)	4.9			(4.0		)	(3.6		)	0.5			(3.1		)
Liquidity fund flows, net	—			—			—			—			(47.4		)	(47.4		)
Net client cash flows	(1.2		)	7.2			(6.0		)	—			(46.9		)	(46.9		)
Realizations(3)	—			—			(1.3		)	(1.3		)	—			(1.3		)
Market performance and other(2)	39.1			11.7			3.5			54.3			1.0			55.3
Impact of foreign exchange	(0.5		)	(2.1		)	—			(2.6		)	(0.1		)	(2.7		)
Dispositions(4)	(2.3		)	(0.4		)	(2.3		)	(5.0		)	(0.1		)	(5.1		)
June 30, 2017	$	196.2		$	403.6		$	66.5		$	666.3		$	74.9		$	741.2

(1) Subscriptions and redemptions reflect the gross activity in the funds and include assets transferred between funds and between share classes.

(2) Other includes the reclassification, effective April 1, 2017, of $12.1 billion and $3.9 billion of certain equity and fixed income assets, respectively, which were previously included in AUA to AUM due to a change in our policy on classification of AUA and AUM. Equity and fixed income separate account flows include $0.7 billion and $0.6 billion, respectively, of net inflows related to this AUM. Other also includes the reinvestment of dividends and a $(3.7) billion reconciliation to previously reported amounts.

(3) Realizations represent investment manager-driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. client requested redemptions, liquidations or asset transfers).

(4) Related to the disposition of two small investment managers and our share of a joint venture.

	Equity			Fixed Income			Alternative			Total Long-Term			Liquidity			Total
June 30, 2015	$	183.8		$	366.5		$	19.2		$	569.5		$	129.7		$	699.2
Investment funds, excluding liquidity      funds (1):
Subscriptions	20.9			25.4			2.2			48.5			—			48.5
Redemptions	(32.7		)	(24.4		)	(5.1		)	(62.2		)	—			(62.2		)
Separate account flows, net	0.3			0.6			(0.8		)	0.1			—			0.1
Liquidity fund flows, net	—			—			—			—			(9.2		)	(9.2		)
Net client cash flows	(11.5		)	1.6			(3.7		)	(13.6		)	(9.2		)	(22.8		)
Market performance and other(2)	(10.8		)	17.2			(0.9		)	5.5			0.5			6.0
Impact of foreign exchange	(0.5		)	1.9			0.1			1.5			—			1.5
Acquisitions(3)	0.1			—			57.9			58.0			—			58.0
June 30, 2016	$	161.1		$	387.2		$	72.6		$	620.9		$	121.0		$	741.9

(1) Subscriptions and redemptions reflect the gross activity in the funds and include assets transferred between funds and between share classes.

(2) Other is primarily the reinvestment of dividends.

(3) Includes $41.5 billion related to the acquisition of Clarion Partners in April 2016, $9.6 billion related to the acquisition of EnTrust in May 2016, $6.8 billion related to the acquisition of RARE Infrastructure in October 2015, and $0.1 billion related to the acquisition of PK Investments, LLP ("PK Investments") by Martin Currie in December 2015.

AUM at June 30, 2017, remained relatively flat as compared to June 30, 2016. Total net client outflows were $46.9 billion, all of which were from the liquidity asset class. Long-term net client cash flows were flat as fixed income net inflows of $7.2 billion, were completely offset by alternative net outflows of $6.0 billion and equity net outflows of $1.2 billion. Fixed income net inflows were primarily in products managed by Western Asset, offset in part by net outflows from products managed by Brandywine. Alternative net outflows were primarily in products managed by EnTrustPermal and RARE Infrastructure, while equity net outflows were primarily in products managed by QS Investors, Royce and Brandywine, offset in part by net inflows into products managed by Martin Currie and ClearBridge. Realizations in the quarter ended June 30, 2017, were in products managed by Clarion Partners. Market performance and other was $55.3 billion, $16.0 billion of which relates to the reclassification, effective April 1, 2017, of certain assets which were previously classified as

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AUA to AUM due to a change in our policy on classification of AUA and AUM. The negative impact of foreign currency exchange rate fluctuations totaled $2.7 billion. Dispositions totaled $5.1 billion, related to the disposition of two small investment managers and our portion of a joint venture.

In the quarter ended June 30, 2017, we began to separately report realizations. Realizations are investment manager driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. requested redemptions, liquidations, or asset transfers). Realizations for the quarter ended June 30, 3017, were $1.3 billion. Realizations of $0.2 billion, $0.4 billion, $0.4 billion, and $0.3 billion, were included in net client cash flows for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.

AUM by Distribution Channel

Broadly, we have two principal distribution channels, Global Distribution and Affiliate/Other, through which we sell a variety of investment products and services. Global Distribution, which consists of our centralized global distribution operations, principally sells U.S. and international mutual funds and other commingled vehicles, retail separately managed account programs, and sub-advisory accounts for insurance companies and similar clients. Affiliate/Other consists of the distribution operations within our asset managers, which principally sell institutional separate account management, liquidity (money market) funds, real estate and other privately placed investment funds, and funds-of-hedge funds.

The component changes in our AUM by distribution channel (in billions) for the three months ended June 30, 2017 and 2016, were as follows:

	Global Distribution				Affiliate/Other			Total
March 31, 2017	$	285.6			$	442.8		$	728.4
Net client cash flows, excluding liquidity funds	5.7				(5.1		)	0.6
Liquidity fund flows, net	—				(11.6		)	(11.6		)
Net client cash flows	5.7		(1	)	(16.7		)	(11.0		)
Realizations(2)	—				(1.3		)	(1.3		)
Market performance and other	20.0		(1	)	4.7			24.7
Impact of foreign exchange	0.3				0.4			0.7
Disposition	—				(0.3		)	(0.3		)
June 30, 2017	$	311.6			$	429.6		$	741.2

(1) Other includes the reclassification, effective April 1, 2017, of $16.0 billion of certain assets which were previously included in AUA to AUM due to a change in our policy on classification of AUA and AUM. Net client cash flows include $1.3 billion of net inflows related to this AUM. Other also includes the reinvestment of dividends and a $(3.7) billion reconciliation to previously reported amounts.

(2) Realizations represent investment manager-driven distributions primarily related to the sale of assets. Realizations are specific to our alternative managers and do not include client-driven distributions (e.g. client requested redemptions, liquidations or asset transfers).

	Global Distribution(1)		Affiliate/Other			Total
March 31, 2016	$	254.6	$	415.0		$	669.6
Net client cash flows, excluding liquidity funds	1.7		(2.7		)	(1.0		)
Liquidity fund flows, net	—		7.9			7.9
Net client cash flows	1.7		5.2			6.9
Market performance and other(2)	3.6		8.7			12.3
Impact of foreign exchange	1.0		1.0			2.0
Acquisition(3)	—		51.1			51.1
June 30, 2016	$	260.9	$	481.0		$	741.9

(1) Excludes $11.2 billion and $10.3 billion of AUA as of June 30, 2016 and March 31, 2016, respectively. Net client cash flows for the three months ended June 30, 2016, excludes $0.7 billion of AUA net inflows. Effective April 1, 2017, the significant portion of these assets were reclassified from AUA to AUM due to a change in our policy on classification of AUA and AUM.

(2) Other is primarily the reinvestment of dividends.

(3) Includes $41.5 billion and $9.6 billion related to the acquisitions of Clarion Partners and EnTrust, respectively.

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Operating Revenue Yield

We calculate operating revenue yields as the ratio of the sum of annualized investment advisory fees, distribution and service fees, and other revenues, less performance fees, to average AUM. For the three months ended June 30, 2017 and 2016, our overall operating revenue yield, less performance fees, across all asset classes and distribution channels was 39 basis points and 38 basis points, respectively. Fees for managing alternative and equity assets are generally higher, with alternative assets averaging 67 basis points and 75 basis points for the three months ended June 30, 2017 and 2016, respectively, and fees for managing equity assets averaging 64 basis points and 67 basis points for the three months ended June 30, 2017 and 2016, respectively. The average fee rate for managing alternative assets declined over the last year due to a shift in the mix of assets from higher fee to lower fee products, while the average fee rate for managing equity assets declined due to the previously discussed reclassification of certain assets from AUA to AUM, as this increased the AUM denominator without a corresponding increase in operating revenue. This compares to fees for managing fixed income assets, which averaged 27 basis points and 28 basis points for the three months ended June 30, 2017 and 2016, respectively, and liquidity assets, which averaged 13 basis points and 12 basis points for the three months ended June 30, 2017 and 2016, respectively. Equity assets are primarily managed by ClearBridge, Royce, Brandywine, QS Investors and Martin Currie; alternative assets are managed by Clarion Partners, EnTrustPermal and RARE Infrastructure; fixed income assets are primarily managed by Western Asset and Brandywine; and liquidity assets are managed by Western Asset. Fee rates for assets distributed through Legg Mason Global Distribution, which are predominately retail in nature, averaged approximately 45 basis points each of the quarters ended June 30, 2017 and 2016, while fee rates for assets distributed through the Affiliate/Other channel averaged approximately 35 basis points for each of the quarters ended June 30, 2017 and 2016.

Investment Performance

Overall investment performance of our AUM for the three months ended June 30, 2017 and 2016, was mixed compared to relevant benchmarks.

For the three months ended June 30, 2017, U.S. equity indices produced positive returns. The best performing index was the Dow Jones Industrial Average, which returned 4.0% for the three months ended June 30, 2017. The lowest performing index was the S&P 400, which returned 2.0% for the three months ended June 30, 2017. These positive returns reflect the growth of corporate earnings and an expanding economy.

In the U.S. fixed income markets, interest rates decreased slightly over the quarter as fiscal stimulus and growth expectations moderated. Generally, there was strong demand for risky assets over the quarter and spreads in most risk sectors tightened. The best performing fixed income sector for the quarter was U.S. Credit as measured by the Barclays U.S. Credit Index which returned 2.4% for the three months ended June 30, 2017. The lowest performing fixed income sector for the three months ended June 30, 2017, was U.S. TIPS, as measured by the Barclays U.S. TIPS Index which declined 0.4%. 

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The following table presents a summary of the percentages of our AUM by strategy⁽¹⁾ that outpaced their respective benchmarks as of June 30, 2017 and 2016, for the trailing 1-year, 3-year, 5-year, and 10-year periods:

	As of June 30, 2017								As of June 30, 2016
	1-year		3-year		5-year		10-year		1-year		3-year		5-year		10-year
Total (includes liquidity)	75	%	73	%	81	%	84	%	60	%	68	%	80	%	82	%
Equity:
Large cap	41	%	32	%	64	%	79	%	35	%	12	%	50	%	70	%
Small cap	45	%	18	%	25	%	49	%	66	%	17	%	31	%	52	%
Total equity (includes other equity)	45	%	37	%	63	%	75	%	42	%	20	%	50	%	68	%
Fixed income:
U.S. taxable	93	%	88	%	88	%	86	%	71	%	86	%	87	%	84	%
U.S. tax-exempt	0	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Global taxable	81	%	75	%	75	%	83	%	15	%	57	%	83	%	84	%
Total fixed income	84	%	85	%	85	%	86	%	55	%	78	%	86	%	85	%
Alternative	75	%	85	%	89	%	63	%	53	%	76	%	72	%	30	%

The following table presents a summary of the percentages of our U.S. mutual fund assets⁽²⁾ that outpaced their Lipper category averages as of June 30, 2017 and 2016, for the trailing 1-year, 3-year, 5-year, and 10-year periods:

	As of June 30, 2017								As of June 30, 2016
	1-year		3-year		5-year		10-year		1-year		3-year		5-year		10-year
Total (excludes liquidity)	60	%	63	%	69	%	75	%	49	%	50	%	72	%	71	%
Equity:
Large cap	31	%	62	%	74	%	67	%	48	%	50	%	90	%	62	%
Small cap	73	%	26	%	32	%	55	%	31	%	10	%	21	%	61	%
Total equity (includes other equity)	44	%	53	%	62	%	65	%	40	%	38	%	67	%	61	%
Fixed income:
U.S. taxable	91	%	87	%	85	%	89	%	78	%	83	%	85	%	86	%
U.S. tax-exempt	49	%	37	%	59	%	86	%	7	%	43	%	58	%	88	%
Global taxable	70	%	78	%	80	%	91	%	80	%	37	%	86	%	42	%
Total fixed income	78	%	74	%	78	%	88	%	60	%	66	%	78	%	84	%
Alternative (performance relates to only three funds)	100	%	100	%	100	%	n/a		90	%	100	%	100	%	n/a

n/a - not applicable

(1) For purposes of investment performance comparisons, strategies are an aggregation of portfolios (separate accounts, investment funds, and other products) into a single group that represents a particular investment objective. In the case of separate accounts, the investment performance of the account is based upon the performance of the strategy to which the account has been assigned. Each of our asset managers has its own specific guidelines for including portfolios in their strategies. For those managers which manage both separate accounts and investment funds in the same strategy, the performance comparison for all of the assets is based upon the performance of the separate account.

As of June 30, 2017 and 2016, approximately 87% and 88%, respectively, of total AUM is included in strategy AUM, although not all strategies have 3-, 5-, and 10-year histories.  Total strategy AUM includes liquidity assets. Certain assets are not included in reported performance comparisons. These include: accounts that are not managed in accordance with the guidelines outlined above; accounts in strategies not marketed to potential clients; accounts that have not yet been assigned to a strategy; and certain smaller products at some of our affiliates.

Past performance is not indicative of future results. For AUM included in institutional and retail separate accounts and investment funds managed in the same strategy as separate accounts, performance comparisons are based on gross-of-fee performance. For investment funds which are not managed in a separate account format, performance comparisons are based on net-of-fee performance. Funds-of-hedge funds generally do not have specified benchmarks. For purposes of this comparison, performance of those products is net of fees, and is compared to the relevant HFRX Index. These performance comparisons do not reflect the actual performance of any specific separate account or investment fund; individual separate account and investment fund performance may differ.

(2) Source: Lipper Inc. includes open-end, closed-end, and variable annuity funds. As of June 30, 2017 and 2016, the U.S. long-term mutual fund assets represented in the data accounted for 18% and 17% of our total AUM, respectively. The performance of our U.S. long-term mutual fund assets is included in the strategies.

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The following table presents a summary of the absolute and relative performance compared to the applicable benchmark for a representative sample of funds within our AUM, net of management and other fees as of the end of the period presented, for the 1-year, 3-year, 5-year, and 10-year periods, and from each fund's inception. The table includes a representative sample of funds from each significant subclass of our investment strategies (i.e., large cap equity, small cap equity, etc.). The funds within this group are representative of the performance of significant investment strategies we offer, that as of June 30, 2017, constituted an aggregate of approximately $423 billion, or approximately 57% of our total AUM. The most meaningful exclusion of funds are our alternative fund strategies, which primarily involve privately placed hedge funds and privately placed real estate funds, and represent only 5% of our total AUM as of June 30, 2017, for which investment performance is not made publicly available. Providing investment returns of funds provides a relevant representation of our performance while avoiding the many complexities relating to factors such as multiple fee structures, bundled pricing, and asset level break points that would arise in reporting performance for strategies or other product aggregations.

			Annualized Absolute/Relative Total Return (%) vs. Benchmark
Fund Name/Index(1)	Inception Date	Performance Type(2)	1-year	3-year	5-year	10-year	Inception
Equity
Large Cap
ClearBridge Aggressive Growth Fund	10/24/1983	Absolute	17.35%	3.67%	13.99%	7.14%	11.92%
Russell 3000 Growth		Relative	(3.37)%	(7.16)%	(1.21)%	(1.68)%	1.79%
ClearBridge Large Cap Growth Fund	8/29/1997	Absolute	18.27%	11.75%	17.10%	8.79%	8.40%
Russell 1000 Growth		Relative	(2.15)%	0.64%	1.80%	(0.12)%	1.85%
ClearBridge Appreciation Fund	3/10/1970	Absolute	13.40%	8.09%	12.51%	7.19%	10.32%
S&P 500		Relative	(4.50)%	(1.52)%	(2.12)%	0.01%	(0.18)%
ClearBridge Dividend Strategy	11/6/1992	Absolute	14.53%	7.86%	12.05%	6.29%	8.68%
S&P 500		Relative	(3.37)%	(1.75)%	(2.58)%	(0.89)%	(0.76)%
ClearBridge Value Trust	4/16/1982	Absolute	18.99%	6.20%	13.82%	1.57%	11.65%
S&P 500		Relative	1.09%	(3.41)%	(0.81)%	(5.61)%	(0.17)%
ClearBridge All Cap Value	11/12/1981	Absolute	24.17%	6.85%	12.68%	4.73%	10.17%
Russell 3000 Value		Relative	7.96%	(0.47)%	(1.21)%	(0.86)%	(1.64)%
ClearBridge Large Cap Value Fund	12/31/1988	Absolute	17.11%	7.12%	13.07%	6.14%	9.61%
Russell 1000 Value		Relative	1.58%	(0.24)%	(0.87)%	0.57%	(0.71)%
Legg Mason Brandywine Diversified Large Cap Value Fund	9/7/2010	Absolute	19.46%	7.34%	12.77%	n/a	13.54%
Russell 1000 Value		Relative	3.93%	(0.02)%	(1.17)%	n/a	0.29%
Small Cap
ClearBridge Small Cap Growth	7/1/1998	Absolute	24.43%	5.67%	12.10%	7.89%	10.11%
Russell 2000 Growth		Relative	0.03%	(1.97)%	(1.88)%	0.07%	3.39%
Royce Total Return Fund	12/15/1993	Absolute	19.10%	5.80%	12.15%	6.25%	10.82%
Russell 2000		Relative	(5.50)%	(1.56)%	(1.55)%	(0.67)%	1.85%
Royce Pennsylvania Mutual	6/30/1967	Absolute	23.20%	4.55%	11.68%	5.94%	11.66%
Russell 2000		Relative	(1.40)%	(2.81)%	(2.02)%	(0.98)%	0.03%
Royce Premier Fund	12/31/1991	Absolute	27.22%	4.09%	10.91%	7.34%	11.67%
Russell 2000		Relative	2.62%	(3.27)%	(2.79)%	0.42%	1.97%
Royce Special Equity	5/1/1998	Absolute	21.63%	5.23%	10.44%	7.31%	9.25%
Russell 2000		Relative	(2.97)%	(2.13)%	(3.26)%	0.39%	1.72%

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			Annualized Absolute/Relative Total Return (%) vs. Benchmark
Fund Name/Index (continued)(1)	Inception Date	Performance Type(2)	1-year	3-year	5-year	10-year	Inception
Fixed Income
U.S. Taxable
Western Asset Core Plus Fund	7/8/1998	Absolute	3.84%	4.20%	4.18%	5.97%	6.24%
Barclays US Aggregate		Relative	4.15%	1.72%	1.97%	1.49%	1.26%
Western Asset Core Bond Fund	9/4/1990	Absolute	1.37%	3.42%	3.38%	5.14%	6.86%
Barclays US Aggregate		Relative	1.68%	0.94%	1.17%	0.66%	0.73%
Western Asset Total Return Unconstrained	7/6/2006	Absolute	8.67%	3.27%	3.59%	4.73%	4.85%
Barclays US Aggregate		Relative	8.98%	0.79%	1.38%	0.25%	0.32%
Western Asset Intermediate Bond Fund	7/1/1994	Absolute	1.50%	2.66%	2.71%	4.68%	5.72%
Barclays Intermediate Gov't/Credit		Relative	1.71%	0.74%	0.94%	0.81%	0.65%
Western Asset Short Term Bond Fund	11/11/1991	Absolute	1.68%	1.12%	1.31%	1.62%	3.53%
Citi Treasury Gov't/Credit 1-3 YR		Relative	1.32%	0.19%	0.37%	(0.67)%	(0.58)%
Western Asset Corporate Bond Fund	11/6/1992	Absolute	5.26%	4.19%	5.24%	5.39%	6.52%
Barclays US Credit		Relative	3.42%	0.79%	1.56%	(0.22)%	0.16%
Western Asset Inflation Index Plus Bond Fund	3/1/2001	Absolute	(1.69)%	(0.54)%	(0.57)%	3.57%	4.71%
Barclays US TIPS		Relative	(1.06)%	(1.17)%	(0.84)%	(0.70)%	(0.41)%
Western Asset Mortgage Defined Opportunity Fund Inc.	2/24/2010	Absolute	16.86%	8.93%	15.19%	n/a	14.71%
BOFAML Floating Rate Home Loan Index		Relative	11.00%	6.36%	10.03%	n/a	9.47%
Western Asset High Yield Fund	9/28/2001	Absolute	11.74%	2.11%	5.74%	6.09%	7.25%
Barclays US Corp High Yield		Relative	(0.96)%	(2.37)%	(1.15)%	(1.58)%	(1.41)%
Western Asset Adjustable Rate Income	6/22/1992	Absolute	3.65%	1.67%	1.93%	1.38%	2.76%
Citi T-Bill 6-Month		Relative	3.11%	1.38%	1.72%	0.72%	0.05%
U.S. Tax-Exempt
Western Asset Managed Municipals Fund	3/4/1981	Absolute	(0.87)%	3.11%	3.25%	4.92%	7.61%
Barclays Municipal Bond		Relative	(0.38)%	(0.22)%	(0.01)%	0.32%	0.45%
Global Taxable
Legg Mason Western Asset Macro Opportunities Bond	11/30/2013	Absolute	12.03%	5.73%	n/a	n/a	7.07%
3-Month LIBOR		Relative	11.04%	5.15%	n/a	n/a	6.55%
Legg Mason Brandywine Global Opportunities Bond	11/1/2006	Absolute	4.47%	1.14%	3.07%	5.92%	5.71%
Citi World Gov't Bond		Relative	8.61%	2.14%	3.27%	2.43%	2.64%
Legg Mason Brandywine Absolute Return Opportunities Fund	2/28/2011	Absolute	7.52%	2.33%	3.36%	n/a	3.61%
Citi 3-Month T-Bill		Relative	7.06%	2.13%	3.21%	n/a	3.48%
Legg Mason Brandywine Global Fixed Income	10/31/2003	Absolute	2.45%	(0.63)%	1.06%	4.17%	4.25%
Citi World Gov't Bond		Relative	6.59%	0.37%	1.26%	0.68%	0.66%
Legg Mason Western Asset Global Multi Strategy Fund	8/31/2002	Absolute	8.33%	2.65%	3.06%	4.50%	6.39%
50% Bar. Global Agg./ 25% Bar. HY 2%/25% JPM EMBI +		Relative	(14.85)%	(1.89)%	(8.62)%	4.50%	6.39%
Legg Mason Western Asset Australian Bond Trust	6/30/1983	Absolute	0.75%	4.40%	5.06%	6.73%	6.18%
UBS Australian Composite Bond Index		Relative	0.50%	0.14%	0.74%	0.50%	0.37%
Western Asset Global High Yield Bond Fund	2/22/1995	Absolute	11.82%	1.67%	5.42%	5.39%	7.12%
Barclays Global High Yield		Relative	(0.07)%	(2.06)%	(1.71)%	(2.36)%	(1.98)%
Legg Mason Western Asset Global Core Plus Bond Fund	12/31/2010	Absolute	1.52%	3.34%	4.17%	n/a	4.44%
Barclays Global Aggregate Index		Relative	1.94%	0.08%	0.85%	n/a	0.63%
Western Asset Emerging Markets Debt	10/17/1996	Absolute	6.66%	2.34%	3.18%	6.03%	9.38%
JPM EMBI Global		Relative	1.14%	(2.30)%	(2.02)%	(1.27)%	0.35%

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			Annualized Absolute/Relative Total Return (%) vs. Benchmark
Fund Name/Index (continued)(1)	Inception Date	Performance Type(2)	1-year	3-year	5-year	10-year	Inception
Liquidity
Western Asset Institutional Liquid Reserves Ltd.	12/31/1989	Absolute	0.78%	0.39%	0.28%	0.83%	3.18%
Citi 3-Month T-Bill		Relative	0.32%	0.19%	0.13%	0.32%	0.29%

n/a not applicable

(1) Listed in order of size based on AUM of fund within each subcategory.

(2) Absolute performance is the actual performance (i.e., rate of return) of the fund. Relative performance is the difference (or variance) between the performance of the fund and its stated benchmark.    

Assets Under Advisement

As of June 30, 2017, AUA was $28 billion, comprised of approximately $18 billion related to QS Investors, approximately $6 billion related to Western Asset, approximately $3 billion related to EnTrustPermal and approximately $1 billion related to Brandywine. AUA fee rates vary with the level of non-discretionary service provided and other factors, and our average annualized fee rate related to AUA was approximately four basis points for the three months ended June 30, 2017. Effective April 1, 2017, certain assets totaling $16.0 billion were reclassified from AUA to AUM due to a change in our policy on classification of AUA and AUM, specifically for retail separately managed account programs that operate and have fees comparable to programs managed on a fully discretionary basis. Comparable AUA as of June 30, 2016, was $11.3 billion.

Results of Operations

In accordance with financial accounting standards on consolidation, we consolidate and separately identify certain sponsored investment products. The consolidation of these investment products has no impact on Net Income Attributable to Legg Mason, Inc. and does not have a material impact on our consolidated operating results. We also hold investments in other consolidated sponsored investment funds and the change in the value of these investments, which is recorded in Non-operating income (expense), is reflected in our Net Income Attributable to Legg Mason, Inc. See Notes 2, 4, and 13 of Notes to Consolidated Financial Statements for additional information regarding the consolidation of investment products.

Operating Revenues

The components of Total Operating Revenues (in millions), and the dollar and percentage changes between periods were as follows:

	Three Months Ended June 30,
	2017		2016		$  Change			%  Change
Investment advisory fees:
Separate accounts	$	250.1	$	226.9	$	23.2		10	%
Funds	382.2		363.5		18.7			5
Performance fees	81.5		17.4		64.1			n/m
Distribution and service fees	78.9		91.4		(12.5		)	(14	)
Other	1.1		1.0		0.1			10
Total Operating Revenues	$	793.8	$	700.2	$	93.6		13	%

n/m - not meaningful

Total operating revenues for the three months ended June 30, 2017, were $793.8 million, an increase of 13% from $700.2 million for the three months ended June 30, 2016, primarily due to a $50.8 million increase in performance fees earned by Clarion Partners that are fully passed through as compensation expense, per the terms of the related agreements, as further discussed below, and the inclusion of a full quarter of revenues in the current year period related to Clarion Partners and EnTrust, which were acquired in April 2016 and May 2016, respectively. The impact of an increase in average long-term AUM at legacy affiliates and an increase in our operating revenue yield, excluding performance fees, from 38 basis points as of June 30, 2016, to 39 basis points as of June 30, 2017, as a result of a more favorable product mix, with higher yielding products comprising a higher percentage of our long-term average AUM, also contributed to the increase.

Investment advisory fees from separate accounts increased $23.2 million, or 10%, to $250.1 million, as compared to $226.9 million for the three months ended June 30, 2016. Of this increase, $12.4 million was related to the inclusion of revenues

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associated with certain assets that were reclassified from AUA to AUM effective April 1, 2017 due to a change in our policy on classification of AUA and AUM, as previously discussed. Prior to this reclassification, revenues related to these assets were included in Distribution and service fees. Increases of $6.6 million due to higher average equity assets managed by ClearBridge, $3.5 million due to higher revenues at EnTrust, which was acquired in May 2016, due in part to the inclusion of a full quarter of revenues in the current year period, and $3.1 million due to higher average fixed income assets managed by Western Asset, also contributed to the increase. These increases were offset in part by decreases of $2.1 million due to lower average alternative assets managed by legacy Permal and RARE Infrastructure and $1.6 million due to lower average equity assets managed by QS Investors.

Investment advisory fees from funds increased $18.7 million, or 5%, to $382.2 million, as compared to $363.5 million for the three months ended June 30, 2016. Of this increase, $20.4 million was due to higher average equity assets managed at ClearBridge and Martin Currie and $9.9 million was due to higher revenues earned by Clarion and EnTrust, which were acquired in April 2016 and May 2016, respectively, due in part to the inclusion of a full quarter of revenues in the current year period. These increases were offset in part by a decrease of $13.0 million due to lower average alternative assets managed by legacy Permal.

Of our total AUM, approximately 11% was in accounts that were eligible to earn performance fees as of both June 30, 2017 and 2016. Investment advisory performance fees increased $64.1 million, to $81.5 million, as compared to $17.4 million for the three months ended June 30, 2016, primarily due to a $50.8 million increase in performance fees earned by Clarion Partners on assets invested with them prior to the closing of the acquisition in April 2016. Performance fees earned on pre-close AUM at Clarion Partners (which accounts for approximately 35% of our performance fee eligible AUM as of June 30, 2017) are fully passed through to the Clarion Partners management team, per the terms of the acquisition agreement, and recorded as compensation expense, and therefore have no impact on Net Income Attributable to Legg Mason, Inc. The full pass through of Clarion Partners performance fees only applies to historic AUM in place as of the closing of the acquisition. We expect the full pass through to phase out approximately five years post-closing. An increase in performance fees earned on assets managed by RARE Infrastructure, Brandywine, Western Asset, and Martin Currie also contributed to the increase.

Distribution and service fees decreased $12.5 million, or 14%, to $78.9 million, as compared to $91.4 million for the three months ended June 30, 2016. Of this decrease, $8.4 million was primarily related to the previously discussed reclassification of certain assets from AUA to AUM, effective April 1, 2017, due to a change in our policy on classification of AUA and AUM, as revenue related to these assets is included in Investment advisory fees from separate accounts for the three months ended June 30, 2017. A reduction in average mutual fund AUM subject to distribution and service fees also contributed to the decrease.

Operating Expenses

The components of Total Operating Expenses (in millions), and the dollar and percentage changes between periods were as follows:

	Three Months Ended June 30,
	2017			2016			$  Change			%  Change
Compensation and benefits	$	413.3		$	358.6		$	54.7		15	%
Distribution and servicing	122.4			124.7			(2.3		)	(2	)
Communications and technology	50.3			52.7			(2.4		)	(5	)
Occupancy	24.4			33.1			(8.7		)	(26	)
Amortization of intangible assets	6.3			5.7			0.6			11
Impairment charges	34.0			—			34.0			n/m
Contingent consideration fair value adjustments	(16.6		)	(18.0		)	1.4			(8	)
Other	52.5			69.8			(17.3		)	(25	)
Total Operating Expenses	$	686.6		$	626.6		$	60.0		10	%

Operating expenses for the three months ended June 30, 2017 and 2016, incurred at the investment management affiliate level represented approximately 70% of total operating expenses in each period, excluding impairment charges. The

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remaining operating expenses (other than impairment charges) are comprised of corporate costs, including costs of our global distribution operations.

The components of Compensation and benefits (in millions) for the three months ended June 30 were as follows:

	Three Months Ended June 30,
	2017		2016		$  Change			%  Change
Salaries and incentives	$	250.0	$	230.3	$	19.7		9	%
Benefits and payroll taxes (including deferred compensation)	88.0		77.3		10.7			14
Transition and severance costs	4.5		19.1		(14.6		)	(76	)
Management equity plan charges	—		15.2		(15.2		)	n/m
Performance fee pass through	65.4		14.6		50.8			n/m
Gains (losses) on deferred compensation and seed capital investments	5.4		2.1		3.3			n/m
Compensation and benefits	$	413.3	$	358.6	$	54.7		15	%

n/m - not meaningful

Compensation and benefits increased 15% to $413.3 million for the three months ended June 30, 2017, as compared to $358.6 million for the three months ended June 30, 2016, as a result of the following:

• Salaries and incentives increased $19.7 million, to $250.0 million, as compared to $230.3 million for the three months ended June 30, 2016, primarily due to a net increase of $17.9 million in net compensation at investment affiliates, which was primarily driven by the impact of increased revenues at certain revenue-share based affiliates, which creates a corresponding increase in compensation per the applicable revenue share agreements.

• Benefits and payroll taxes increased $10.7 million, to $88.0 million, as compared to $77.3 million for the three months ended June 30, 2016, primarily due to an increase in costs associated with certain long-term incentive plans.

• Transition costs and severance decreased $14.6 million, to $4.5 million, as compared to $19.1 million for the three months ended June 30, 2016, with $2.4 million and $15.0 million for the three months ended June 30, 2017 and 2016, respectively, associated with the restructuring of Permal for the combination with EnTrust, which is now substantially complete. The remaining amounts in each period were primarily comprised of severance costs related to corporate and distribution personnel.

• Management equity plan charges for the three months ended June 30, 2016, represent the charge associated with the implementation of an affiliate management equity plan for the management team of Clarion Partners. See Note 11 of Notes to Consolidated Financial Statements for additional information regarding management equity plans.

• Performance fee pass through represents Clarion Partners performance fees that are fully passed through to Clarion Partners employees as compensation expense, as discussed above.

Compensation as a percentage of operating revenues increased to 52.1% from 51.2%, primarily due to the increase in performance fees earned by Clarion Partners that are passed through fully as compensation expense, offset in part by the reduction in transition and severance costs incurred in connection with the restructuring of Permal for the combination with EnTrust, and the impact of the charge recognized in the prior year quarter in connection with the implementation of the Clarion Partners management equity plan.

Distribution and servicing expense decreased 2% to $122.4 million, as compared to $124.7 million for the three months ended June 30, 2016, primarily due to the impact of the sale of Legg Mason Poland in December 2016.

Communications and technology expense decreased 5% to $50.3 million, as compared to $52.7 million for the three months ended June 30, 2016, primarily due to a decrease in technology consulting costs.

Occupancy expense decreased 26% to $24.4 million, as compared to $33.1 million for the three months ended June 30, 2016, primarily due to real estate related charges of $9.1 million recognized in the prior year period in connection with the restructuring of Permal for the combination with EnTrust.

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Amortization of intangible assets increased $0.6 million, to $6.3 million, as compared to $5.7 million for the three months ended June 30, 2016, primarily due to a full quarter of amortization expense recognized in the current year period related to the acquisitions of Clarion Partners in April 2016 and EnTrust in May 2016, offset in part by a reduction in amortization expense as a result of impairments of the RARE Infrastructure amortizable management contracts asset recognized in the quarters ended June 30, 2017 and March 31, 2017.

Impairment charges were $34.0 million for the three months ended June 30, 2017. The impairment charges recognized during the three months ended June 30, 2017, were comprised of $32.0 million related to the RARE Infrastructure amortizable management contracts asset and $2.0 million related to the RARE Infrastructure trade name asset. These impairments resulted from losses of separate account AUM and other factors at RARE Infrastructure, and the related decline in projected revenues. A revised estimate of the remaining useful life of the RARE Infrastructure separate account contracts intangible asset also contributed to the impairment of that asset. See Note 6 of Notes to Consolidated Financial Statements for further discussion of these impairment charges, including the significant assumptions used to determine the fair value of the assets.

Contingent consideration fair value adjustments for the three months ended June 30, 2017, included credits of $16.6 million which reduced the contingent consideration liabilities related to the acquisitions of RARE Infrastructure and QS Investors, and for the three months ended June 30, 2016, included a credit of $18.0 million, which reduced the contingent consideration liability related to the acquisition of Martin Currie.

Other expense decreased $17.3 million, or 25%, to $52.5 million, as compared to $69.8 million for the three months ended June 30, 2016, primarily due to a $9.9 million reduction in professional fees and a $3.6 million reduction in insurance expense, both driven by costs incurred in the prior year period in connection with the acquisitions of Clarion Partners and EnTrust.

Non-Operating Income (Expense)

The components of Total Non-Operating Income (Expense) (in millions), and the dollar and percentage changes between periods were as follows:

	Three Months Ended June 30,
	2017			2016			$  Change			%  Change
Interest income	$	1.5		$	1.8		$	(0.3	)	(17	)%
Interest expense	(29.3		)	(24.5		)	(4.8		)	20
Other income, net	11.4			6.6			4.8			73
Non-operating income of consolidated investment vehicles, net	1.0			3.2			(2.2		)	(69	)
Total Non-Operating Income (Expense)	$	(15.4	)	$	(12.9	)	$	(2.5	)	19	%

n/m - not meaningful

Interest expense increased $4.8 million, to $29.3 million, as compared to $24.5 million for the three months ended June 30, 2016, primarily due to the net impact of the issuance of $500 million of 5.45% Junior Subordinated Notes due 2056 in August 2016, the proceeds of which were used to repay $500 million of then outstanding borrowings under our revolving credit facility.

Other income, net, increased $4.8 million, to $11.4 million, as compared to $6.6 million for the three months ended June 30, 2016, due to a $3.3 million increase in net market gains on seed capital investments and assets invested for deferred compensation plans, which are offset by a corresponding increase in compensation expense, and a $1.5 million increase in net market gains on corporate investments, which are not offset by a corresponding increase in compensation expense.

Non-operating income of consolidated investment vehicles, net, totaled income of $1.0 million for the three months ended June 30, 2017, as compared to income of $3.2 million for the three months ended June 30, 2016. The change was primarily due to activity of the consolidated investment vehicles ("CIVs") during the respective periods. See Notes 2 and 13 of Notes to Consolidated Financial Statements for additional information regarding the adoption of the updated guidance and net market gains on investments of certain CIVs.

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Income Tax Provision

The income tax provision was $28.3 million for the three months ended June 30, 2017, as compared to $15.3 million for the three months ended June 30, 2016. The effective tax rate was 30.8% for the three months ended June 30, 2017, as compared to 25.2% for the three months ended June 30, 2016. For the three months ended June 30, 2017 a $0.9 million discrete tax expense was recognized for vested stock awards with a grant date exercise price higher than the vesting date stock prices, which increased the effective tax rate by 1.0 percentage point. Noncontrolling interests in EnTrustPermal, Clarion Partners and Royce are structured as partnerships that pass related tax attributes to the related noncontrolling interest holders. As such, the consolidated financial statements do not generally include any tax provision/benefit associated with the net income allocated to these noncontrolling interests, which caused the effective tax rate to be reduced by 3.5 percentage points and 4.8 percentage points for the quarters ended June 30, 2017 and 2016, respectively.

CIVs and other consolidated sponsored investment products reduced the effective tax rate by 0.2 percentage points for the three months ended June 30, 2017, and reduced the effective tax rate by 1.1 percentage points for the three months ended June 30, 2016.

Net Income Attributable to Legg Mason, Inc. and Operating Margin

Net Income Attributable to Legg Mason, Inc. for the three months ended June 30, 2017, totaled $50.9 million, or $0.52 per diluted share, as compared to $33.5 million, or $0.31 per diluted share, for the three months ended June 30, 2016. The increase was largely the result of lower acquisition and transition-related costs recognized in the current year period, with $2.6 million, or $0.02 per diluted share, of such costs recognized during the three months ended June 30, 2017, as compared to $56.8 million, or $0.37 per diluted share, recognized during the three months ended June 30, 2016, as well as the net impact of increased operating revenues. These increases were offset in part by the impairment charges of $34.0 million, or $0.24 per diluted share, recognized in the three months ended June 30, 2017. In addition, Net Income Attributable to Legg Mason, Inc. per diluted share for the three months ended June 30, 2017, also benefited from a reduction in weighted-average shares outstanding as a result of share repurchases. Operating margin was 13.5% for the three months ended June 30, 2017, as compared to 10.5% for the three months ended June 30, 2016.

Quarter Ended June 30, 2017, Compared to Quarter Ended March 31, 2017

Net Income Attributable to Legg Mason, Inc. for the three months ended June 30, 2017, was $50.9 million, or $0.52 per diluted share, as compared to $75.9 million, or $0.76 per diluted share, for the three months ended March 31, 2017. As previously discussed, Net Income Attributable to Legg Mason, Inc. for the three months ended June 30, 2017, included non-cash impairment charges of $34.0 million, or $0.24 per diluted share, which were offset in part by credits totaling $16.6 million, or $0.12 per diluted share, related to the previously mentioned fair value adjustments to decrease the contingent consideration liabilities related to the acquisitions of RARE Infrastructure and QS Investors. Net Income Attributable to Legg Mason, Inc. for the three months ended March 31, 2017, included discrete tax credits of $15.4 million, or $0.15 per diluted share and gains totaling $4.7 million, or $0.03 per diluted share, associated with the disposition of a small investment manager and our share of a joint venture, which were offset in part by a non-cash charge of $4.6 million, or $0.03 per diluted share, associated with an additional grant of management equity plan units under the Royce management equity plan.

Operating revenues increased to $793.8 million in the three months ended June 30, 2017, as compared to $723.1 million in the three months ended March 31, 2017. The increase in operating revenues was primarily due to an increase of $57.3 million in pass through performance fees of Clarion Partners. A 4% increase in average long-term AUM and one additional day in the quarter ended June 30, 2017 also contributed to the increase.

Operating expenses increased $73.4 million, to $686.6 million for the three months ended June 30, 2017, as compared to $613.2 million for the three months ended March 31, 2017, primarily due to an increase of $57.3 million in compensation expense related to the pass through of performance fees to Clarion Partners and the $34.0 million of non-cash impairment charges, as previously discussed, as well as an increase in benefit costs due to seasonal factors, including accelerated deferred compensation related to retirement-eligible employees. These increases were offset in part by the $16.6 million of credits related to fair value adjustments to decrease certain contingent consideration liabilities and the $4.6 million charge associated with the Royce management equity plan recognized in the March 2017 quarter, as previously discussed.

Non-operating expense, net, increased $8.4 million, to $15.4 million for the three months ended June 30, 2017, as compared to $7.1 million for the three months ended March 31, 2017, primarily due to the previously discussed $4.7 million gain associated with the disposition of a small investment manager and our share of a joint venture recognized in the March 2017 quarter and a $2.4 million decrease in Non-operating income of CIVs.

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Operating margin was 13.5% for the three months ended June 30, 2017, as compared to 15.2% for the three months ended March 31, 2017.

Supplemental Non-GAAP Financial Information

As supplemental information, we are providing a performance measure for "Operating Margin, as Adjusted" and a liquidity measure for "Adjusted EBITDA", each of which are based on methodologies other than generally accepted accounting principles (“non-GAAP”). Our management uses these measures as benchmarks in evaluating and comparing our period-to-period operating performance and liquidity.

Operating Margin, as Adjusted

We calculate "Operating Margin, as Adjusted," by dividing (i) Operating Income, adjusted to exclude the impact on compensation expense of gains or losses on investments made to fund deferred compensation plans, the impact on compensation expense of gains or losses on seed capital investments by our affiliates under revenue sharing arrangements, amortization related to intangible assets, income (loss) of CIVs, the impact of fair value adjustments of contingent consideration liabilities, if any, and impairment charges by (ii) our operating revenues, adjusted to add back net investment advisory fees eliminated upon consolidation of investment vehicles, less distribution and servicing expenses which we use as an approximate measure of revenues that are passed through to third parties, and less performance fees that are passed through as compensation expense or net income (loss) attributable to noncontrolling interests, which we refer to as "Operating Revenues, as Adjusted." The deferred compensation items are removed from Operating Income in the calculation because they are offset by an equal amount in Non-operating income (expense), net, and thus have no impact on Net Income Attributable to Legg Mason, Inc. We adjust for the impact of the amortization of management contract assets and the impact of fair value adjustments of contingent consideration liabilities, if any, which arise from acquisitions to reflect the fact that these items distort comparison of our operating results with the results of other asset management firms that have not engaged in significant acquisitions. Impairment charges and income (loss) of CIVs are removed from Operating Income in the calculation because these items are not reflective of our core asset management operations. We use Operating Revenues, as Adjusted, in the calculation to show the operating margin without distribution and servicing expenses, which we use to approximate our distribution revenues that are passed through to third parties as a direct cost of selling our products, although distribution and servicing expenses may include commissions paid in connection with the launching of closed-end funds for which there is no corresponding revenue in the period. We also use Operating Revenues, as Adjusted, in the calculation to show the operating margin without performances fees which are passed through as compensation expense or net income attributable to noncontrolling interests per the terms of certain more recent acquisitions. Operating Revenues, as Adjusted, also include our advisory revenues we receive from consolidated investment vehicles that are eliminated in consolidation under GAAP.

We believe that Operating Margin, as Adjusted, is a useful measure of our performance because it provides a measure of our core business activities. It excludes items that have no impact on Net Income Attributable to Legg Mason, Inc. and indicates what our operating margin would have been without distribution revenues that are passed through to third parties as a direct cost of selling our products, performance fees that are passed through as compensation expense or net income (loss) attributable to noncontrolling interests per the terms of certain more recent acquisitions, amortization related to intangible assets, changes in the fair value of contingent consideration liabilities, if any, impairment charges, and the impact of the consolidation of certain investment vehicles described above. The consolidation of these investment vehicles does not have an impact on Net Income Attributable to Legg Mason, Inc. This measure is provided in addition to our operating margin calculated under GAAP, but is not a substitute for calculations of margins under GAAP and may not be comparable to non-GAAP performance measures, including measures of adjusted margins of other companies.

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The calculation of Operating Margin and Operating Margin, as Adjusted, is as follows (dollars in thousands):

	Three Months Ended
	June 30, 2017			March 31, 2017			June 30, 2016
Operating Revenues, GAAP basis	$	793,842		$	723,126		$	700,165
Plus (less):
Pass-through performance fees	(65,431		)	(8,075		)	(14,600		)
Operating revenues eliminated upon consolidation of investment vehicles	44			143			12
Distribution and servicing expense, excluding consolidated investment vehicles	(122,349		)	(122,404		)	(124,590		)
Operating Revenues, as Adjusted	$	606,106		$	592,790		$	560,987
Operating Income, GAAP basis	$	107,205		$	109,889		$	73,555
Plus (less):
Gains on deferred compensation and seed investments, net	5,428			5,355			2,166
Impairment of intangible assets	34,000			—			—
Amortization of intangible assets	6,339			6,939			5,703
Contingent consideration fair value adjustments	(16,550		)	—			(18,000		)
Operating income of consolidated investment vehicles, net	67			210			111
Operating Income, as Adjusted	$	136,489		$	122,393		$	63,535
Operating Margin, GAAP basis	13.5		%	15.2		%	10.5		%
Operating Margin, as Adjusted	22.5			20.6			11.3

Operating Margin, as Adjusted, for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, was 22.5%, 20.6%, and 11.3%, respectively. Operating Margin, as Adjusted, for the three months ended June 30, 2017, was reduced by 0.4 percentage points due to transition-related costs incurred in connection with the restructuring of Permal for the combination with EnTrust. Operating Margin, as Adjusted, for the three months ended March 31, 2017, was reduced by 0.8 percentage points due to the charge associated with the additional grant of units under the Royce management equity plan and 0.4 percentage points due to transition-related costs incurred in connection with the restructuring of Permal for the combination with EnTrust. Operating Margin, as Adjusted, for the three months ended June 30, 2016, was reduced by 4.3 percentage points due to transition-related costs incurred in connection with the restructuring of Permal for the combination with EnTrust, 3.1 percentage points due to acquisition-related costs incurred in connection with the Clarion and EnTrust acquisitions, and 2.7 percentage points due to the charge associated with the implementation of the Clarion Partners management equity plan.

Adjusted EBITDA

We define Adjusted EBITDA as cash provided by (used in) operating activities plus (minus) interest expense, net of accretion and amortization of debt discounts and premiums, current income tax expense (benefit), the net change in assets and liabilities, net (income) loss attributable to noncontrolling interests, net gains (losses) and earnings on investments, net gains (losses) on consolidated investment vehicles, and other. The net change in assets and liabilities adjustment aligns with the Consolidated Statements of Cash Flows. Adjusted EBITDA is not reduced by equity-based compensation expense, including management equity plan non-cash issuance-related charges. Most management equity plan units may be put to or called by us for cash payment, although their terms do not require this to occur.

We believe that this measure is useful to investors and us as it provides additional information with regard to our ability to meet working capital requirements, service our debt, and return capital to our shareholders. This measure is provided in addition to Cash provided by operating activities and may not be comparable to non-GAAP performance measures or liquidity measures of other companies, including their measures of EBITDA or Adjusted EBITDA. Further, this measure is not to

62

be confused with Net Income, Cash provided by operating activities, or other measures of earnings or cash flows under GAAP, and are provided as a supplement to, and not in replacement of, GAAP measures.

We previously disclosed Adjusted EBITDA that conformed to calculations required by our debt covenants, which adjusted for certain items that required cash settlement that are not part of the current definition.

The calculation of Adjusted EBITDA, is as follows (dollars in thousands):

	Three Months Ended
	June 30, 2017			March 31, 2017			June 30, 2016
Cash provided by (used in) operating activities, GAAP basis	$	(113,580	)	$	192,811		$	(165,970	)
Plus (less):
Interest expense, net of accretion and amortization of debt discounts and premiums	28,330			28,556			23,906
Current tax expense (benefit)	6,072			14,446			(783		)
Net change in assets and liabilities	213,323			(55,246		)	222,425
Net change in assets and liabilities of consolidated investment vehicles	31,789			(26,324		)	38,571
Net income attributable to noncontrolling interests	(12,617		)	(14,380		)	(11,888		)
Net gains and earnings on investments	5,546			3,614			2,568
Net gains on consolidated investment vehicles	997			3,437			3,228
Other	77			(583		)	(1,447		)
Adjusted EBITDA	$	159,937		$	146,331		$	110,610

Adjusted EBITDA for the three months ended June 30, 2017, March 31, 2017, and June 30, 2016, was $159.9 million, $146.3 million, and $110.6 million, respectively. The $13.6 million increase for the three months ended June 30, 2017, as compared to the three months ended March 31, 2017, was primarily due to an increase in net income, adjusted for non-cash items. The $49.3 million increase for the three months ended June 30, 2017, as compared to the three months ended June 30, 2016, was primarily due to a reduction in acquisition and transition-related costs associated with the acquisitions of Clarion Partners and EnTrust and the integration of Permal with EnTrust.

Liquidity and Capital Resources

The primary objective of our capital structure is to appropriately support our business strategies and to provide needed liquidity at all times, including maintaining required capital in certain subsidiaries. Liquidity and the access to liquidity are important to the success of our ongoing operations. Our overall funding needs and capital base are continually reviewed to determine if the capital base meets the expected needs of our businesses. We intend to continue to explore potential acquisition opportunities as a means of diversifying and strengthening our asset management business. These opportunities may from time to time involve acquisitions that are material in size and may require, among other things, and subject to existing covenants, the raising of additional equity capital and/or the issuance of additional debt.

The consolidation of variable interest entities discussed above does not impact our liquidity and capital resources. However, we have executed total return swap arrangements with investors in one CIV, such that we receive the related investment gains and losses. At June 30, 2017, the total return swap notional values aggregate $20.3 million. Otherwise, we have no rights to the benefits from, nor do we bear the risks associated with, the assets and liabilities of the CIVs and other consolidated sponsored investment products beyond our investments in and investment advisory fees generated from these products, which are eliminated in consolidation. Additionally, creditors of the CIVs and other consolidated sponsored investment products have no recourse to our general credit beyond the level of our investment, if any, so we do not consider these liabilities to be our obligations.

Our assets consist primarily of intangible assets, goodwill, cash and cash equivalents, investment securities, and investment advisory and related fee receivables. Our assets have been principally funded by equity capital, long-term debt and the results of our operations. At June 30, 2017, cash and cash equivalents, total assets, long-term debt, net, and stockholders' equity were $0.5 billion, $8.1 billion, $2.2 billion and $4.0 billion, respectively. Total assets include amounts related to CIVs and other sponsored investment products of $0.1 billion.

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Cash and cash equivalents are primarily invested in liquid domestic and non-domestic money market funds that hold principally domestic and non-domestic government and agency securities, bank deposits and corporate commercial paper. We have not recognized any losses on these investments. Our monitoring of cash and cash equivalents partially mitigates the potential that material risks may be associated with these balances.

The following table summarizes our Consolidated Statements of Cash Flows for the three months ended June 30 (in millions):

	2017			2016
Cash flows used in operating activities	$	(113.6	)	$	(166.0	)
Cash flows used in investing activities	(4.5		)	(1,007.8		)
Cash flows provided by (used in) financing activities	(123.5		)	335.0
Effect of exchange rate changes	(0.8		)	0.4
Net change in cash and cash equivalents	(242.4		)	(838.4		)
Cash and cash equivalents, beginning of period	733.7			1,329.1
Cash and cash equivalents, end of period	$	491.3		$	490.7

Cash outflows used in operating activities during the three months ended June 30, 2017, were $113.6 million, primarily related to annual payments for accrued and deferred compensation, offset in part by Net Income, adjusted for non-cash items. Cash outflows used in operating activities during the three months ended June 30, 2016, were $166.0 million, primarily related to annual payments for accrued and deferred compensation and net activity related to CIVs, offset in part by Net Income, adjusted for non-cash items.

Cash outflows used in investing activities during the three months ended June 30, 2017, were $4.5 million, primarily related to payments made for fixed assets, offset in part by a contingent payment received in connection with the prior sale of a business. Cash outflows used in investing activities during the three months ended June 30, 2016, were $1.0 billion, primarily related to payments associated with the acquisitions of Clarion Partners and EnTrust of $997.9 million (net of acquired cash).

Cash outflows used in financing activities during the three months ended June 30, 2017, were $123.5 million, primarily related to the repurchase of 2.4 million shares of our common stock for $89.6 million and dividends paid of $21.2 million. Cash inflows provided by financing activities during the three months ended June 30, 2016, were $335.0 million, primarily related to borrowings of $460.0 million under our revolving credit facility, offset in part by the repurchase of 3.5 million shares of our common stock for $111.7 million and dividends paid of $21.9 million.

On June 6, 2017, we entered into four total return swap arrangements with financial intermediaries with respect to the previously discussed ClearBridge All Cap Growth ETF, which resulted in an investment in the ETF by each of those financial intermediaries in the aggregate amount of $20.3 million. These total return swap arrangements are intended to enable us to expedite third-party distribution platform access for the product. We intend to continue to grow our ETF business over the next 12 months, and may enter into similar arrangements in connection with gaining distribution platform access for additional products.

We expect that over the next 12 months cash generated from our operating activities and available cash on hand, together with potential additional transactions similar to the total return swaps described above, will be adequate to support our operating cash needs, and planned share repurchases. We currently intend to utilize our available resources for any number of potential activities, including, but not limited to, acquisitions, repurchase of shares of our common stock, seed capital investments in new and existing products, repayment of outstanding debt, or payment of increased dividends. In addition to our ordinary operating cash needs, we anticipate other cash needs during the next 12 months, as discussed below.

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Acquisitions

As of June 30, 2017, we had various commitments to pay contingent consideration relating to business acquisitions. The following table presents a summary of the maximum remaining aggregate contingent consideration and the Contingent consideration liability (in millions) for each of our acquisitions. Additional details regarding contingent consideration for each significant recent acquisition are discussed below.

	RARE Infrastructure		Martin Currie		QS Investors		Other(2)		Total
Maximum Remaining Contingent Consideration(1)	$	81.4	$	423.1	$	23.4	$	5.5	$	533.4
Contingent consideration liability
Current Contingent consideration	$	—	$	12.5	$	—	$	2.5	$	15.0
Non-current Contingent consideration	2.1		—		3.6		—		5.7
Balance as of June 30, 2017	$	2.1	$	12.5	$	3.6	$	2.5	$	20.7

(1) Using the applicable exchange rate as of June 30, 2017 for amounts denominated in currencies other than the U.S. dollar.

(2) Includes amounts related to the acquisitions of Financial Guard and PK Investments.

As further described below, we may be obligated to settle noncontrolling interests related to certain affiliates. The following table presents a summary of our affiliate noncontrolling interests (in millions), excluding amounts related to management equity plans, as of June 30, 2017. The ultimate timing of noncontrolling interest settlements are too uncertain to project with any accuracy.

	EnTrustPermal		Clarion Partners		RARE Infrastructure		Other		Total
Affiliate noncontrolling interests as of June 30, 2017	$	403.6	$	109.2	$	68.8	$	4.4	$	586.0

On August 17, 2016, we acquired a majority interest in Financial Guard. Contingent consideration of up to $3 million may be due one year after the closing date; however, as of June 30, 2017, no contingent consideration is expected to be paid. The amount of any ultimate contingent payment will be based on certain metrics. We also committed to contribute up to $5 million of additional working capital to Financial Guard, to be paid over the two-year period following the acquisition, of which $2.5 million has been paid as of June 30, 2017.

On May 2, 2016, we closed the transaction to combine Permal and EnTrust, to create EnTrustPermal, of which we own 65%. Noncontrolling interests of 35% of the outstanding equity are subject to put and call provisions that may result in future cash outlays.

On April 13, 2016, we acquired a majority interest in Clarion Partners. We also implemented an affiliate management equity plan for the management team of Clarion Partners, as further discussed below. In conjunction with the acquisition, we committed to provide $100 million of seed capital to Clarion Partners products, after the second anniversary of the transaction closing. Noncontrolling interests of 18% of the outstanding equity are subject to put and call provisions that may result in future cash outlays.

On December 31, 2015, Martin Currie acquired certain assets of PK Investments. A contingent payment, estimated at $3 million as of June 30, 2017, may be due on December 31, 2017. The amount of any ultimate contingent payment will be based on certain financial metrics.

On October 21, 2015, we acquired a majority interest in RARE Infrastructure. Contingent consideration may be due March 31, 2018, aggregating up to approximately $81 million (using the foreign exchange rate as of June 30, 2017 for the maximum 106 million Australia dollar amount per the contract), dependent on the achievement of certain net revenue targets, and subject to potential catch-up adjustments extending through March 31, 2019. Noncontrolling interests of 25% of the outstanding equity are subject to put and call provisions that may result in future cash outlays.

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On October 1, 2014, we acquired all outstanding equity interests of Martin Currie. Contingent consideration payments may be due on the March 31 following the third anniversary of closing, aggregating up to approximately $423 million (using the foreign exchange rate as of June 30, 2017 for the maximum £325 million contract amount), inclusive of the payment of certain potential pension and other obligations, and dependent on the achievement of certain financial metrics at March 31, 2018, as specified in the share purchase agreement. Actual payments to be made may also include amounts for certain potential pension and other obligations that are accounted for separately. In addition, in connection with a review by the Pensions Regulator in the U.K. ("the Regulator") of the pension plan's current structure and funding status, Martin Currie and the trustees of the pension have agreed with the Regulator to a revised plan structure, which will result in certain changes to the plan structure, including the redomiciliation of the plan in the U.K., additional guarantees, and following the application of any contingent consideration payments toward the pension deficit, provisions for accelerated funding of a portion of any remaining benefit obligation in certain circumstances.

Effective May 31, 2014, we completed the acquisition of QS Investors. Contingent consideration of up to $20 million for the fourth anniversary payment, and up to $3 million for a potential catch-up adjustment for the second anniversary payment shortfall, may be due in July 2018, dependent on the achievement of certain net revenue targets.

See Notes 3 and 9 of Notes to Consolidated Financial Statements for additional information regarding these acquisitions.

Affiliate Management Equity Plans

In conjunction with the acquisition of Clarion Partners in April 2016, we implemented an affiliate management equity plan that entitles certain key employees of Clarion Partners to participate in 15% of the future growth, if any, of the enterprise value (subject to appropriate discounts) subsequent to the date of the grant. In March 2016, we implemented an affiliate management equity plan with Royce. Under this management equity plan, as of June 30, 2017, noncontrolling interests equivalent to 19.0% in the Royce entity have been issued to its management team. In addition, we implemented an affiliate management equity plan in March 2014, that entitles certain key employees of ClearBridge to participate in 15% of the future growth, if any, of the enterprise value (subject to appropriate discounts). As of June 30, 2017, the estimated redemption value for units under management equity plans aggregated $72.7 million. Repurchases of units granted under the plans may impact future liquidity requirements, however, the amounts and timing of repurchases are too uncertain to project with any accuracy. See Note 8 of Notes to Consolidated Financial Statements for additional information regarding affiliate management equity plans.

Future Outlook

As of June 30, 2017, we had approximately $215 million in cash and cash equivalents in excess of our working capital and regulatory requirements. We continue to plan to return capital to shareholders totaling approximately $450 million in fiscal 2018 through a combination of share repurchases and the payment of dividends, subject to market conditions and other cash needs. During the three months ended June 30, 2017, we retired $102 million of shares, including $12 million of shares retired under net share settlements for annual deferred compensation award vesting, and made dividend payments totaling $21 million. As of June 30, 2017, we have $500 million of available borrowing capacity under our revolving credit facility, which expires in December 2020, and can be increased by another $500 million with the approval of the lenders. While we do not currently expect to raise incremental debt or equity financing over the next 12 months, we intend to grow our ETF business and are exploring various options to facilitate the launch of and provide capital to these new products. Going forward, there can be no assurances of these expectations as our projections could prove to be incorrect, events may occur that require additional liquidity in excess of amounts under our revolving credit facility, such as an opportunity to refinance indebtedness, or market conditions might significantly worsen, affecting our results of operations and generation of available cash. If these events result in our operations and available cash being insufficient to fund liquidity needs, we may seek to manage our available resources by taking actions such as reducing future share repurchases, reducing operating expenses, reducing our expected expenditures on investments, selling assets (such as investment securities), repatriating earnings from foreign subsidiaries, reducing our dividend, or modifying arrangements with our affiliates and/or employees. Should these types of actions prove insufficient, or should an acquisition or refinancing opportunity arise, we would likely utilize borrowing capacity under our revolving credit facility or seek to raise additional equity or debt.

On June 2, 2017, our Credit Agreement was amended to permit Legg Mason, Inc. to incur liens to secure obligations, including those related to cash collateral provisions for hedging agreements, in an aggregate amount not to exceed $200 million at any one time. Prior to this amendment, cash collateral provided in connection with certain of our hedging agreements was considered a lien on assets for purposes of the lien covenant, and, as a result, we were not in compliance with the terms of

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the Credit Agreement at all times. The amendment provides for a waiver of any defaults under the unsecured credit agreement that may have arisen prior to the date of the amendment resulting from the provision of such cash collateral.

Our liquid assets include cash, cash equivalents, and certain current investment securities. At June 30, 2017, our total liquid assets of approximately $700 million, included $256 million of cash, cash equivalents, and investments held by foreign subsidiaries. Other net working capital amounts of foreign subsidiaries are not significant. In order to increase our cash available in the U.S. for general corporate purposes, we plan to utilize up to approximately $233 million of foreign cash over the next several years, of which $4.3 million is accumulated foreign earnings with the remainder provided from forecasted future earnings. Any additional tax provision associated with these repatriations was previously recognized. No further repatriation of accumulated prior period foreign earnings is currently planned.  However, if circumstances change, we will provide for and pay any applicable additional U.S. taxes in connection with repatriation of offshore earnings. It is not practical at this time to determine the income tax liability that would result from any further repatriation of accumulated foreign earnings.

Other

As of June 30, 2017, less than 1% of total assets (5% of financial assets at fair value) and less than 1% of total liabilities (99% of financial liabilities measured at fair value) meet the definition of Level 3.

On July 25, 2017, the Board of Directors approved a regular quarterly cash dividend in the amount of $0.28 per share, payable on October 23, 2017.

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Contractual and Contingent Obligations

We have contractual obligations to make future payments, principally in connection with our long-term debt, non-cancelable lease agreements, acquisition agreements and service agreements. See Notes 7 and 9 of Notes to Consolidated Financial Statements for additional disclosures related to our commitments.

The following table sets forth these contractual obligations (in millions) by fiscal year, and excludes contractual obligations of CIVs and other consolidated sponsored investment products, as we are not responsible or liable for these obligations:

	Remaining 2018		2019		2020		2021		2022		Thereafter		Total
Contractual Obligations
Long-term borrowings by contract maturity	$	—	$	—	$	250.0	$	—	$	—	$	2,000.0	$	2,250.0
Interest on long-term borrowings and credit facility commitment fees	102.0		113.0		109.7		106.1		105.4		2,272.8		2,809.0
Minimum rental and service commitments	96.1		112.4		99.3		90.0		88.2		187.8		673.8
Total Contractual Obligations	198.1		225.4		459.0		196.1		193.6		4,460.6		5,732.8
Contingent Obligations
Payments related to business acquisitions:(1)
Martin Currie	423.1		—		—		—		—		—		423.1
RARE Infrastructure	81.4		—		—		—		—		—		81.4
Other	5.5		23.4		—		—		—		—		28.9
Total payments related to business acquisitions	510.0		23.4		—		—		—		—		533.4
Total Obligations(2)(3)(4)(5)(6)	$	708.1	$	248.8	$	459.0	$	196.1	$	193.6	$	4,460.6	$	6,266.2

(1) The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of the business purchase agreements, using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar. The related contingent consideration liabilitieshad an aggregate fair value of $20.7 million as of June 30, 2017, net of certain potential pension and other obligations related to Martin Currie. See Notes 3 and 9 of Notes to Consolidated Financial Statements.

(2) The table above does not include approximately $35.9 million in capital commitments to investment partnerships in which we are a limited partner, which will be outstanding, or funded as required, through the end of the commitment periods running through fiscal 2029; $100 million of co-investment commitment associated with the Clarion Partners acquisition, which will be funded after the second anniversary of the transaction closing; or up to approximately $2.5 million of remaining additional working capital commitment associated with the Financial Guard acquisition, which will be funded over the period ending in August 2018.

(3) The table above does not include amounts for uncertain tax positions of $51.4 million (net of the federal benefit for state tax liabilities), because the timing of any related cash outflows cannot be reliably estimated.

(4) The table above does not include redeemable noncontrolling interests, primarily related to minority equity interests in our affiliates, of $614.8 million as of June 30, 2017, because the timing and amount of any related cash outflows cannot be reliably estimated, and noncontrolling interests of CIVs of $69.4 million as of June 30, 2017, because we have no obligations in relation to these amounts.

(5) The table above excludes potential obligations arising from the ultimate settlement of awards under the affiliate management equity plans with key employees of Clarion Partners, ClearBridge and Royce due to the uncertainty of the timing and amounts ultimately payable. See Note 8 of Notes to Consolidated Financial Statements for additional information regarding affiliate management equity plans.

(6) The table above excludes net pension benefit obligations of $36.9 million due to the uncertainty of the timing and amounts ultimately payable.

Recent Accounting Developments

See discussion of Recent Accounting Developments in Note 2 of Notes to Consolidated Financial Statements.

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Item 3.        Quantitative and Qualitative Disclosures About Market Risk

During the three months ended June 30, 2017, there were no material changes to the information contained in Part II, Item 7A of Legg Mason’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017.

Item 4.        Controls and Procedures

As of June 30, 2017, Legg Mason's management, including the Chief Executive Officer and the Chief Financial Officer, evaluated the effectiveness of the design and operation of Legg Mason's disclosure controls and procedures. In evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  Based on that evaluation, Legg Mason's management, including its Chief Executive Officer and its Chief Financial Officer, concluded that Legg Mason's disclosure controls and procedures were effective on a reasonable assurances basis.  There have been no changes in Legg Mason's internal controls over financial reporting that occurred during the quarter ended June 30, 2017, that have materially affected, or are reasonably likely to materially affect, Legg Mason's internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1A.    Risk Factors

During the three months ended June 30, 2017 there were no material changes to the information contained in Part I, Item 1A of Legg Mason's Annual Report on Form 10-K for the fiscal year ended March 31, 2017.

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets out information regarding our purchases of Legg Mason common stock in each month during the quarter ended June 30, 2017:

Period	Total number of shares purchased (1)	Average price paid per share (1)(2)		Total number of shares purchased as part of publicly announced plans or programs(3)	Approximate dollar value that may yet be purchased under the plans or programs(3)
April 1, 2017 through     April 30, 2017	548,410	$	36.90	545,802	$	402,396,911
May 1, 2017 through May 31, 2017	1,338,406	37.60		1,003,665	364,791,418
June 1, 2017 through June 30, 2017	819,501	38.88		819,474	332,933,406
Total	2,706,317	$	37.84	2,368,941

(1) Includes shares of vesting restricted stock, and shares received on vesting of restricted stock units, surrendered to Legg Mason to satisfy related income tax withholding obligations of employees via net share transactions.

(2) Amounts exclude fees.

(3) On January 30, 2015, we announced that our Board of Directors approved a share repurchase authorization for up to $1 billion for additional repurchases of common stock. There is no expiration attached to this share repurchase authorization.

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Item 6.        Exhibits

3.1	Articles of Incorporation of Legg Mason, as amended (incorporated by reference to Legg Mason's Current Report on Form 8-K for the event on July 26, 2011)
3.2	By-laws of Legg Mason, as amended and restated July 26, 2011 (incorporated by reference to Legg Mason's Current Report on Form 8-K for the event on July 26, 2011)
10.1	Form of Restricted Stock Unit Agreement under the Legg Mason, Inc. 1996 Equity Incentive Plan, filed herewith *
10.2	Form of Restricted Stock Unit Agreement for Non-U.S. Resident Executive under the Legg Mason, Inc. 1996 Equity Incentive Plan, filed herewith *
10.3	Form of Performance Share Unit Award Agreement, filed herewith *
10.4	Legg Mason, Inc. 2017 Equity Incentive Plan  (incorporated by reference to Appendix A to the definitive proxy statement for Legg Mason's Annual Meeting of Stockholders, filed with the SEC on June 14, 2017)*
10.5	Fourth  Amendment and Waiver, dated as of June 2, 2017, to the Credit Agreement, dated as of December 29, 2015 (as amended by the First Amendment to the Credit Agreement, dated as of March 31, 2016, the Second Amendment to the Credit Agreement, dated as of September 7, 2016, and the Third Amendment, dated as of March 31, 2017), by and among Legg Mason, Inc., as borrower, Citibank, N.A., as administrative agent, and each of the lenders from time to time party thereto (incorporated by reference to Legg Mason’s Current Report on Form 8-K for the event on June 2, 2017, filed with the SEC on June 2, 2017)
12	Computation of consolidated ratios of earnings to fixed charges
31.1	Certification of Chief Executive Officer
31.2	Certification of Principal Financial Officer
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the quarterly report on Form 10-Q of Legg Mason, Inc. for the quarter ended June 30, 2017, filed on August 4, 2017, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements tagged in detail

* These exhibits are management contracts or compensatory plans or arrangements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LEGG MASON, INC.

DATE:	August 4, 2017	/s/ Joseph A. Sullivan
		Joseph A. Sullivan
		President, Chief Executive Officer, and
		Chairman of the Board
DATE:	August 4, 2017	/s/ Peter H. Nachtwey
		Peter H. Nachtwey
		Senior Executive Vice President
		and Chief Financial Officer

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INDEX TO EXHIBITS

3.1	Articles of Incorporation of Legg Mason, as amended (incorporated by reference to Legg Mason's Current Report on Form 8-K for the event on July 26, 2011)
3.2	By-laws of Legg Mason, as amended and restated July 26, 2011 (incorporated by reference to Legg Mason's Current Report on Form 8-K for the event on July 26, 2011)
12	Computation of consolidated ratios of earnings to fixed charges
10.1	Form of Restricted Stock Unit Agreement under the Legg Mason, Inc. 1996 Equity Incentive Plan, filed herewith *
10.2	Form of Restricted Stock Unit Agreement for Non-U.S. Resident Executive under the Legg Mason, Inc. 1996 Equity Incentive Plan, filed herewith *
10.3	Form of Performance Share Unit Award Agreement, filed herewith *
10.4	Legg Mason, Inc. 2017 Equity Incentive Plan  (incorporated by reference to Appendix A to the definitive proxy statement for Legg Mason's Annual Meeting of Stockholders, filed with the SEC on June 14, 2017)*
10.5	Fourth  Amendment and Waiver, dated as of June 2, 2017, to the Credit Agreement, dated as of December 29, 2015 (as amended by the First Amendment to the Credit Agreement, dated as of March 31, 2016, the Second Amendment to the Credit Agreement, dated as of September 7, 2016, and the Third Amendment, dated as of March 31, 2017), by and among Legg Mason, Inc., as borrower, Citibank, N.A., as administrative agent, and each of the lenders from time to time party thereto (incorporated by reference to Legg Mason’s Current Report on Form 8-K for the event on June 2, 2017, filed with the SEC on June 2, 2017)
31.1	Certification of Chief Executive Officer
31.2	Certification of Principal Financial Officer
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Financial statements from the quarterly report on Form 10-Q of Legg Mason, Inc. for the quarter ended June 30, 2017, filed on August 4, 2017, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements tagged in detail

* These exhibits are management contracts or compensatory plans or arrangements.

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EX-10.1

Exhibit 10.1

LEGG MASON, INC. 1996 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

Legg Mason, Inc. (the “Company”) hereby grants to you (the “Participant”), pursuant to the Legg Mason, Inc. 1996 Equity Incentive Plan, as amended (the “Plan”), an award (the “Award”) of restricted share units (“RSUs”), upon and subject to the restrictions, terms and conditions set forth below. Each RSU will constitute a right to receive, upon and subject to vesting of such RSU (and, if applicable, after reaching a Designated Deferral Date, as defined below), one share of Common Stock (the shares of Common Stock distributable upon the vesting of RSUs (or, if applicable, after reaching a Designated Deferral Date) hereunder are referred to herein as “Shares”). This document constitutes Participant’s “Award Notification”. By electronically accepting the Award, you are acknowledging your acceptance of the Award subject to the restrictions and upon the terms and conditions set forth in this Agreement and the Plan. The number of RSUs included in the Award shall be as set forth on the third party website pursuant to which this Award Notification is electronically delivered to Participant and in the books and records of the Company, which shall control, absent manifest error, in the event of a discrepancy. The Grant Date for this Award shall for all purposes be May 15, 2017.

This Award is subject in all respects to the applicable provisions of the Plan. Such provisions are incorporated herein by reference and made a part hereof. Capitalized terms that are not defined in Section 6.8 below are defined in the Plan and shall have the meanings specified in the Plan.

In addition to the terms, conditions and restrictions set forth in the Plan, all terms, conditions and restrictions set forth in this Agreement are applicable to the Award granted hereby.

1.RIGHTS AS A STOCKHOLDER.

Until the RSUs subject to this Award have vested under Section 3 and the underlying Shares have been distributed under Section 2, Participant shall have no ordinary rights as a stockholder with respect to the RSUs or such Shares other than the right to receive dividend or distribution equivalents on the RSUs as set out below. Therefore, until the RSUs subject to this Award have vested and underlying Shares have been distributed, Participant shall have no rights to receive, vote, take possession of or transfer the Shares.

Commencing on the Grant Date, Participant shall have the right to receive cash dividends and other distribution equivalents with respect to the Shares underlying unvested RSUs that are the subject of this Award unless and until such RSUs are forfeited pursuant to Section 3 hereof. Payment of such dividend or other distribution equivalents shall be made during the first or second payroll period following the dividend payment date.

To the extent that there is a dividend or other distribution equivalent (including, without limitation, a stock dividend or stock split) on shares of Common Stock that is not a cash dividend or distribution, the dividend or distribution equivalent shall be subject to the same vesting

schedule and other restrictions as the RSUs with respect to which such dividend or other distribution equivalent relates, shall be delivered to the Company, and shall be held by the Company in accordance with Section 2 below.

If the Participant has elected to defer receipt of an RSU beyond the date on which such RSU vests, the Participant shall have the right to receive any cash dividend and other distribution equivalents with respect to the Shares underlying vested, but deferred RSUs that are the subject of this Award prior to any Designated Deferral Date; provided, however, that vested, but deferred RSUs are not subject to forfeiture pursuant to Section 3. Payment of such dividend other distribution equivalents that are in cash shall be made during the first or second payroll period following the dividend payment date.

To the extent that there is a dividend or other distribution (including, without limitation, a stock dividend or stock split) on shares of Common Stock that is not a cash dividend or distribution, the dividend or distribution equivalent with respect to the Shares underlying vested, but deferred RSUs shares shall be delivered to the Company, and shall be held by the Company in accordance with Section 2 below, until the Designated Deferral Date with respect to such Shares.

In connection with the payment of dividend or other distributions equivalents under this Section 1, the Company may deduct any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for the account of Participant or may include such dividend or distribution equivalent in the payroll of Participant’s employer so that such dividend or distribution equivalent is included within the compensation of Participant for withholding and other taxation purposes. Participant shall be entitled to retain cash dividend and distribution equivalents received regardless of whether the RSUs with respect to which such dividend or distribution equivalents were made are subsequently forfeited pursuant to Section 3 hereof. Notwithstanding anything to the contrary, RSUs shall at all times be subject to the restrictions on transferability contained in Section 5.1 hereof.

2.CUSTODY AND DELIVERY OF RSUS AND UNDERLYING SHARES.

RSUs subject to this Award shall be held solely on the books and records of the Company and shall remain as such until the RSUs have vested under Section 3 hereof, or for RSUs with respect to which a Deferral Election (as defined below) has been made pursuant to Section 4, the Designated Deferral Date has been reached. Participant may not receive or take possession of any Shares underlying unvested or vested but deferred RSUs subject to this Award, either through physical share certificates or through book-entry accounts held by, or in the name of, Participant. The Company shall not allow any transfers of RSUs subject to this Award. Upon the vesting of any RSUs subject to this Award pursuant to Section 3, or, for RSUs with respect to which a Deferral Election has been made pursuant to Section 4, upon vesting and reaching any Designated Deferral Date, the Company will issue to Participant one share of Common Stock for each vested RSU within thirty (30) days following such event (but subject to the provisions of Treasury Regulation Section 1.409A-3(d)) at which point each such vested RSU will terminate. The Company shall deliver Shares underlying RSUs subject to this Award at the applicable time to the Participant through book entry transfer to an account in Participant’s name at a financial institution that is selected by the Company. Share certificates representing distributed Shares shall not be

issued by the Company until such Shares have been delivered to Participant’s account as specified above. Participant hereby authorizes the Company, and any financial institution at which the Company or Participant establishes an account to which the Shares underlying RSUs subject to this Award will be distributed, to transfer any Shares underlying vested RSUs to Participant’s account as discussed above. The Company shall pay all original issue or transfer taxes and all fees and expenses incident to the delivery of any Shares hereunder; provided that the Company shall not pay the expenses related to any sale of Shares received upon vesting (or, if applicable, after reaching any Designated Deferral Date) of RSUs subject to this Award, regardless of whether such sale is made to satisfy expenses or withholding or other taxes.

3.VESTING AND FORFEITURE.

(a)    Except as otherwise provided in the Plan or in Section 3(b) of this Agreement (and, with respect to distribution, subject to any Deferral Election that was previously made by the Participant and described in Section 4), twenty-five percent (25%) of the RSUs subject to Participant’s Award shall vest and be distributed in shares of Common Stock pursuant to Section 2 (to “vest”) on each of April 30, 2018, April 30, 2019, April 30, 2020 and April 30, 2021 (each, a “Vesting Date”).

(b)    Participant’s right to vest in this Award is conditioned upon Participant’s continuous employment with the Firm, except to the limited extent to which vesting may continue following a termination of Participant’s employment as provided below. If Participant’s continuous employment with the Firm terminates or is interrupted for any reason stated below, Participant’s rights with respect to the Award shall be affected as follows:

(1) Resignation. Except as otherwise provided below, if Participant resigns or otherwise terminates his or her employment with the Firm for any reason, Participant’s unvested Award shall be forfeited and Participant’s vested but undistributed Award (if any) shall be distributed to Participant in accordance with Section 2 hereof.

(2) Disability. Upon a Separation from Service by reason of his or her Disability, on the date of such Separation from Service, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(3) Death. Upon termination of Participant’s employment with the Firm due to death, on the date of such termination, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant’s beneficiaries under 5.2 hereof in accordance with Section 2 hereof.

(4) Termination for Cause. Upon termination of Participant’s employment by the Firm for Cause, Participant’s unvested Award shall be immediately forfeited and, subject to Section 5.10, Shares

underlying Participant’s vested but undistributed Award (if any) shall be distributed to Participant in accordance with Section 2 hereof.

(5) Change of Control. In the event that a Change of Control occurs and within 12 months of such Change of Control (i) the Participant’s employment with the Firm is terminated by the Firm without Cause or (ii) the Participant terminates his or her employment with the Firm for Good Reason, then, as of the date of such termination, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(6) Termination without Cause. Except as otherwise specified in this Section 3(b), upon a termination of Participant’s employment by the Firm without Cause, Participant’s unvested Award shall be immediately forfeited and Shares underlying Participant’s vested but undistributed Award (if any) shall be distributed to Participant in accordance with Section 2 hereof.

(7) Termination of Employment Due to Retirement. If Participant’s employment with the Firm terminates before the date on which all RSUs subject to Participant’s Award have vested and (i) the reason for such termination is Participant’s retirement pursuant to Section 7.1 (or any successor retirement provision) of the Legg Mason Profit Sharing Plan and (ii) such termination of employment is without Cause, then the unvested portion of Participant’s Award shall continue to vest in accordance with Section 3(a) as long as Participant does not engage in Competitive Activity. If Participant engages in Competitive Activity, then the portion of Participant’s Award that is unvested at the time Participant engages in such activity shall be immediately forfeited. In the event of Participant’s death during the period in which unvested Awards are continuing to vest under this clause (7), then, as of the date the Company becomes aware of such death, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(8) Reduction in Workforce. If Participant’s employment with the Firm terminates before the date on which all RSUs subject to Participant’s Award have vested and (i) such termination is due to the elimination of Participant’s employment in connection with a reduction in workforce by the Firm and (ii) such termination of employment is without Cause, , Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof; provided, however, that in the event that Participant fails to sign a general release of

claims provided by the Company, or Participant signs and revokes such release within the time permitted by law to revoke such release, then any Shares received in connection with the RSUs that became vested on such termination shall be cancelled and Participant shall return such Shares to the Company. Participant agrees that the Company may enforce the cancellation by all legal means available, including, without limitation, by withholding the value of the canceled Shares from other sums owed to Participant by the Company.

To the extent that Section 409A of the Code applies to the vesting or distribution of any RSUs or underlying Shares hereunder, and Participant is a Specified Employee, then any vesting or distribution made in connection with or following the Participant's Separation from Service shall not be made earlier than the first business day of the seventh month following the Participant's Separation from Service, or if earlier the date of death of the Participant. Any vesting or distribution that is delayed in accordance with the foregoing sentence shall be made on the first business dayfollowing the expiration of such six (6) month period.

4.DEFERRAL ELECTIONS

Participant had the right to defer distribution of all or a portion (in increments equal to the number of RSUs that vest on each Vesting Date) of an Award of RSUs beyond the vesting schedule set forth in Section 3, a “Deferral Election.” Any RSUs that Participant elected to defer pursuant to such Deferral Election and this Section 4 shall cease to be subject to forfeiture after they have vested under Section 3. For purposes of this Award, in order to be effective, a Deferral Election must have been irrevocably made in writing by Participant no later than September 30, 2016; provided, however, in no event may a Deferral Election be made outside the timeframe permitted under Section 409A of the Code (i.e., after the amount payable with respect to the Incentive Plan for a fiscal year has become readily ascertainable for purposes of Section 409A). A Deferral Election is irrevocable when made and, except as noted in this Section, may not be changed for any reason. To the extent that a Deferral Election has been made by Participant, the Company (and the Committee) may not take any action under the Incentive Plan that would have the effect of accelerating a payment with respect to Participant in violation of Section 409A of the Code.

A Deferral Election may have been made with respect to each or any portion of the Award that vests on a Vesting Date; provided, however, that any deferral had to have been made in five (5) year increments from the applicable Vesting Date (the date on which each such deferral ends, as designated by Participant in the Deferral Election, a “Designated Deferral Date”) and only one Designated Deferral Date may have been elected for each Award of RSUs. In the event Participant made a Deferral Election with respect to any portion of this Award, the deferred RSUs will not be distributed to Participant until the Designated Deferral Date is reached; provided, however, that a Designated Deferral Date will cease to be effective and any deferred RSUs shall be distributed in accordance with Section 2 of this Agreement (and subject to the limitation with respect to Specified Employees contained in Section 3) upon (i) Participant’s Separation from Service, including a Separation from Service due to Death or Disability, or (ii) a Change of

Control, in which case, the date of such event shall be considered the Designated Deferral Date for purposes of the remainder of this Agreement. Participant’s Deferral Election, if any, is reflected on the third party website to which this Award Notification is electronically delivered to Participant.

A Participant who has made a valid, irrevocable Deferral Election may make a subsequent election to change the Designated Deferral Date under such Deferral Election. Any election to change such Designated Deferral Date (i) cannot take effect until at least twelve (12) months after the date of the Deferral Election, (ii) must defer payment for five (5) years, or a greater number of years that is a multiple of five (5) from the Designated Deferral Date on which payment would otherwise be made pursuant to the earlier Deferral Election, and (iii) must be made no less than twelve (12) months before the originally scheduled Designated Deferral Date. The newly elected Designated Deferral Date shall be the fixed Designated Deferral Date, but such newly elected Designated Deferral Date shall be subject to a further, subsequent change in the Designated Deferral Date under this paragraph (subject to the same limitations and conditions that are contained in the preceding sentence, with such limitations and conditions applied as if the newly elected Designated Deferral Date was the original Designated Deferral Date and the date of the Deferral Election). Timely and validly making any subsequent change in the Designated Deferral Date is the sole responsibility of Participant, regardless of whether the Company provides any information as to the deadlines for a subsequent change in the Designated Deferral Date.

5.ADDITIONAL TERMS AND CONDITIONS OF THE AWARD.

5.1.NONTRANSFERABILITY OF RSUs.

RSUs may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Any such attempted sale, transfer, assignment, pledge, hypothecation or encumbrance, or other disposition of any such RSUs shall be null and void.

5.2.BENEFICIARIES.

Participant may designate in writing, on a form to be prescribed by and filed with the Committee, a beneficiary to receive all or part of the Shares to be distributed under the Plan in the event of Participant’s death. A designation of a beneficiary may be replaced by a new designation or may be revoked by Participant at any time and in accordance with such rules and procedures established by the Committee on a form prescribed by and filed with the Committee. In the event of Participant’s death, Shares due under the Plan in respect of RSUs with respect to which a designation of a beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be distributed in accordance with the Plan to the designated beneficiary. Distributions due under the Plan and not subject to a beneficiary designation shall be distributed to Participant’s estate. If there is any question as to the legal right of any beneficiary to receive any distribution under the Plan, the distribution in question may be made in the sole discretion of the Committee to the estate of Participant, in which event the Firm shall have no further liability to anyone with respect to such distribution. Distribution to the executors or administrators of the

estate of Participant may be conditioned on the delivery to the Committee of such tax waivers, letters testamentary and other documents as the Committee may reasonably request.

5.3.RIGHT OF SET OFF.

Notwithstanding any provisions of this Agreement to the contrary, the Committee, the Firm and the Company may offset any amounts that Participant may owe to the Firm against the Shares or other amounts subject to a Participant’s Award at the date such Shares or amounts would otherwise been paid or distributed to Participant under the Plan. Any offset may be made only on the date the payment or distribution is otherwise scheduled to be made and may not operate to accelerate any payment or distribution in violation of Treasury Regulation Section 1.409A-3(j)(4)(xiii).

5.4.CONSENT TO ELECTRONIC DELIVERY.

In lieu of receiving documents in paper format, Participant hereby agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Firm elects to or is required to deliver (including, but not limited to, the Prospectus related to Participant’s Award, any supplements to that Prospectus, award notifications and agreements, account statements, monthly or annual reports, and all other forms or communications) in connection with Participant’s Award. Electronic delivery of a document to Participant may be via a Firm e-mail system or by reference to a location on a Firm intranet site or a third party’s Internet site to which Participant has access.

5.5.SECURITIES LAWS.

Participant hereby represents and covenants that if in the future Participant decides to offer or dispose of any Shares distributed with respect to vested RSUs subject to this Award or interest therein, Participant shall do so only in compliance with this Agreement, the Securities Act of 1933, as amended, and all applicable state and local national securities laws as appropriate. As a condition precedent to the delivery to Participant of any Shares underlying vested RSUs subject to this Award, Participant shall comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance of the Shares and, in connection therewith, shall execute any documents and make any representation and warranty to the Company which the Committee shall in its sole discretion deem necessary or advisable.

5.6.ADJUSTMENT.

In the event that there occurs (a) any change in the number of outstanding shares of Common Stock through the declaration of dividends, stock splits or the like or through any change in the capital account of the Company or any other transaction referred to in Section 424(a) of the Code or (b) any other change in the capital structure of the Company or in the Common Stock, then, if applicable, the number of RSUs subject to this Award, and, if applicable, number and class of underlying Shares, shall be adjusted as provided in the Plan. Any decision of the Committee regarding the amount and timing of any adjustment shall be final and conclusive.

5.7.COMPLIANCE WITH APPLICABLE LAW.

This Award is subject to the condition that if the listing, registration or qualification of the Shares distributed with respect to RSUs subject to this Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the vesting of RSUs or delivery of underlying Shares hereunder, the RSUs or underlying Shares may not be delivered, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained. The Company agrees to make every reasonable effort to effect or obtain any such listing, registration, qualification, consent or approval.

By signing the Award Notification, however, the Participant acknowledges and agrees that he or she is and remains responsible for any local compliance requirements or regulations in relation to the receipt, ownership and possible subsequent sale of the Company’s Common Stock. The Participant also agrees that he or she is responsible for any local compliance requirements or regulations in relation to the opening and use of a U.S. brokerage account.

5.8.WITHHOLDING; TAX MATTERS

(a)    The Company may, and Participant hereby authorizes the Company to, deduct an amount determined by the Company up to the maximum respective statutory rates to satisfy all federal, state and local withholding tax requirements arising in connection with this Award, from payments of any kind by the Company or its subsidiaries to which the Participant would otherwise be entitled, including without limitation, salary, bonus and other compensation. Alternatively, with respect to RSUs that have vested and, if applicable, any Designated Deferral Date has been reached, Participant may elect (i) to remit to the Company by check an amount sufficient to satisfy any federal, state or local withholding tax requirements, prior to the delivery of Shares pursuant to Section 2 hereof, or (ii) to surrender to the Company (via an instruction, given to the Company prior to the delivery of Shares pursuant to Section 2, to deduct from delivery of Shares underlying vested RSUs) a number of Shares underlying the vested RSUs with a market value, as determined by the Company, equal to the amount of the federal, state or local withholding tax requirement (which may be up to the maximum respective statutory rates); provided that the Committee, in its sole discretion, may at any time prohibit the Participant from utilizing the method to provide for withholding taxes specified in this clause (ii). However, if Participant fails to either provide the check or, if applicable, share deduction instruction described in the prior sentence, in each case by the date any withholding tax with respect to any RSUs or underlying Shares is due,

the Company shall, and Participant hereby authorizes the Company to, withhold delivery of underlying Shares or deduct amounts determined by the Company to be withheld up to the maximum statutory rates from payments of any kind by the Company or its subsidiaries to which Participant would otherwise be entitled, including without limitation salary, bonus and other compensation. Participant acknowledges that in the event the preceding sentence applies, the Company shall act in its sole discretion without any liability to the Participant resulting from the action or the timing under which the Company carries out the action. Notwithstanding the above, FICA and Medicare tax withholding due upon vesting of RSUs which occurs prior to a distribution event under Article 3 or a Designated Deferral Date shall be effected by deducting from such RSUs a number of Shares underlying the vested portion of such RSUs with a market value, as determined by the Company, equal to the amount of the FICA and Medicare tax withholding liability due or, alternatively in the sole discretion of the Company which shall be applied on a uniform basis to all such RSUs vesting on the same date, by requiring that either Participant remit to the Company by check an amount sufficient to satisfy any such FICA and Medicare tax withholding or that such tax withholding liability will be satisfied from other payments to which the Participant is entitled.

(b)    The Company reserves the right to make whatever further arrangements it deems appropriate for the withholding of taxes in connection with any transaction contemplated by this Agreement or the Plan, including, without limitation, providing for payments of withholding taxes by deducting amounts required to be withheld, plus interest thereon, from payments of any kind by the Company or any of its subsidiaries to which Participant would otherwise be entitled.

5.9.AWARD CONFERS NO RIGHTS TO CONTINUED EMPLOYMENT OR FUTURE AWARDS.

Nothing in the Plan or in this Agreement shall confer upon Participant any right to continue in the employ of the Company or any subsidiary of the Company for a specified period of time or interfere with the right of the Company and its subsidiaries to terminate such employment at any time. In addition, neither the Plan nor this Agreement confers any right upon the Participant to receive future awards under the Plan. All future awards, if any, are completely at the discretion of the Company. Moreover, any awards granted under the Plan are not part of the Participant’s ordinary compensation, employment agreement, if any, or working relationship with the Company or any of its affiliates and will therefore not be considered as part of such compensation, agreement or relationship in the event of severance, redundancy or resignation, unless otherwise required by applicable law.

5.10.CLAWBACK PROVISIONS

Notwithstanding anything to the contrary in this Agreement, this Award is expressly made subject to the terms of the Legg Mason, Inc. Clawback Policy as adopted by the Committee. As a result, Participant may be required to return to the Company the RSUs received in this Award, and the underlying Shares (or the value thereof), in the situations described below. Participant agrees that the Company may enforce the forfeiture by all legal means available, including, without limitation, by withholding the forfeited amount from other sums owed to Participant by the Firm. To the extent that Section 409A of the Code applies to any Award, the Company shall not exercise its rights under this Section 5.10 in a manner that would operate to accelerate any payment or distribution in violation of Section 409A of the Code.

In the event of a restatement of the Company’s financial results within three years of original reporting to correct a material error, then, if the Legg Mason, Inc. Board of Directors determines that Participant’s acts or omissions were a significant contributing factor to the need to issue such restatement and that all or any portion of Participant’s RSUs, if the Award was made prior to the restatement, would not have been awarded based upon the restated financial results, then Participant agrees to forfeit and return to the Company, to the extent permitted by applicable law, the portion (which may be all) of the RSUs or the underlying Shares or value thereof (regardless of whether vesting has occurred and underlying Shares distributed to Participant) that the Board of Directors, in its discretion, determines to be appropriate.

In the event that Participant’s employment is terminated by the Firm for a Clawback Event or (ii) following the termination of Participant’s employment, the Company is or becomes aware that Participant committed an act that would have given rise to a termination for a Clawback Event, then, in either event, Participant agrees to forfeit to the Company, to the extent permitted by applicable law, the portion (which may be all) of the RSUs or the underlying Shares or value thereof (regardless of whether vesting has occurred and underlying Shares distributed to Participant), that Participant was awarded after the conduct or omission that gave rise to the Clawback Event and that the Board of Directors, in its discretion, determines to be appropriate.

6.MISCELLANEOUS PROVISIONS.

6.1.SUCCESSORS; ASSIGNMENTS AND TRANSFERS.

This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of Participant, acquire any rights hereunder. The rights and interests of Participant under this Agreement may not be sold, assigned, encumbered or otherwise transferred except in the event of death of Participant, by will or by the laws of descent and distribution. This Agreement may be assigned by the Company without Participant’s consent.

6.2 NOTICES.

All notices, requests or other communications provided for in this Agreement shall be made in writing either (a) by actual delivery to the party entitled thereto, or (b) by mailing in the mails of the United States or, for Participants who reside in another country, of the other country to the address of the party entitled thereto as set forth below, via certified or registered mail, return receipt requested. The notice shall be deemed to be received in case of delivery, on the date of its actual receipt by the party entitled thereto, and in case of mailing, five days following the date of such mailing. Any notice mailed to the Company shall be addressed to the Restricted Stock Administrator of the Company at 100 International Drive, Baltimore, Maryland 21202. Any notice mailed to Participant shall be addressed to Participant at Participant’s address as reflected in the personnel records of the Company. Either party hereto may designate a different address for notices than the one provided herein by notice to the other.

6.3.CONSENT AND DISCLOSURE REGARDING USE OF PERSONAL INFORMATION.

In connection with the grant of the Award, and any other award under the Plan, and the implementation and administration of the Plan, including, without limitation, Participant’s actual participation, or consideration by the Committee for potential future participation in the Plan at any time, it is or may become necessary for the Firm to collect, transfer, use, and hold certain personal information regarding Participant in and/or outside of Participant’s home country. By accepting the Award, Participant explicitly consents (i) to the use of such information for the purpose of being considered for participation in future awards under the Plan (to the extent he/she is eligible under the Plan, and without any guarantee that any award shall be made); and (ii) to the use, transfer, processing and storage, electronically or otherwise, of his/her personal information, as such use has occurred to date, and as such use may occur in the future, in connection with this Award or any other award under the Plan, as further described below.

Use, transfer, storage and processing of personal information, electronically or otherwise, may be in connection with the Company’s internal administration of the Plan, or in connection with tax or other governmental and regulatory compliance activities directly or indirectly related to the Award or any other award under the Plan. For such purposes only, personal information may be used by third parties retained by the Company to assist with the administration and compliance activities of the Plan, and may be transferred by the company that employs (or any company that has employed) Participant from Participant’s home country to other members of the Company and third parties located in the United States and in other countries. Specifically, those parties that may have access to Participant’s information for the purposes described herein include, but are not limited to, (i) human resources personnel responsible for administering the Plan; (ii) Participant’s U.S., regional and local employing entity and business unit management, including Participant’s supervisor and his/her superiors; (iii) the Committee or its designee, which is responsible for administering the Plan; (iv) the Company’s technology systems support team (but only to the extent necessary to maintain the proper operation of electronic information systems that support the Plan); and (v) internal and external legal, tax and accounting advisors (but only to

the extent necessary for them to advise the Company on compliance and other issues affecting the awards under the Plan in their respective fields of expertise).

At all times, Company personnel and third parties shall be obligated to maintain the confidentiality of Participant’s personal information except to the extent the Company is required to provide such information to governmental agencies or other parties. Such action shall always be undertaken only in accordance with applicable law. The personal information that the Company may collect, process, store and transfer for the purposes outlined above may include Participant’s name, nationality, citizenship, work authorization, date of birth, age, government/tax identification number, passport number, brokerage account information, or other internal identifying information, home address, work address, job and location history, compensation, business unit, employing entity, and Participant’s beneficiaries and contact information. Participant may obtain more details regarding the access and use of his/her personal information, and may correct or update such information, by contacting his/her human resources representative.

6.4 MARKET FLUCTUATIONS.

The Company is not responsible or liable for any decrease in the value of the Company’s Common Stock at any time, all of which shall be solely the risk and responsibility of the Participant.

6.5.OBLIGATION UNFUNDED

The obligation of the Company with respect to RSUs granted hereunder shall be interpreted solely as an unfunded contractual obligation to make payments of Shares in the manner and under the conditions prescribed under this Agreement. Any Common Stock or other assets set aside with respect to amounts payable under this Agreement shall be subject to the claims of the Company’s general creditors, and no person other than the Company shall, by virtue of the provisions of the Plan or this Agreement, have any interest in such assets. In no event shall any assets set aside (directly or indirectly) with respect to amounts payable under this Agreement be located or transferred outside the United States. Neither the Participant nor any other person shall have any interest in any particular assets of the Company by reason of the right to receive a benefit under this Agreement, and the Participant or any such other person shall have only the rights of a general unsecured creditor of the Company with respect to any rights under the Plan or this Agreement.

6.6CONFLICT; GOVERNING LAW.

In the event of a conflict between this Agreement and the Plan, the Plan shall control. This Agreement shall be governed by, and interpreted in accordance with, the internal laws of the State of New York(without regard to conflicts of laws rules thereof). It is the intent of this Agreement to comply with the requirements of Section 409A of the Code, and any ambiguities herein will be interpreted, and this Agreement will be administered, to so comply. If any payments or distributions hereunder constitute “nonqualified deferred compensation” subject to Section 409A of the Code, the term “termination of employment” and words of similar import shall have the same meaning as a Separation from Service. Each payment or distribution of such

“nonqualified deferred compensation” shall be considered a separate payment for purposes of Section 409A.

6.7COUNTERPARTS.

This Agreement may be executed in two or more counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

6.8DEFINITIONS.

Unless otherwise defined herein, the following terms have the meanings set forth below.

“Cause” means any one or more of the following types of behavior by Participant which the Firm in its sole discretion finds to be sufficient reason to terminate the Participant’s employment with the Firm: (i) any conduct (a) that constitutes Competitive Activity, (b) that breaches any obligation to the Firm or Participant’s duty of loyalty to the Firm, or (c) that is materially injurious to the Firm, monetarily or otherwise; (ii) material violation of, or an act taken by the failure to act which causes the Firm to be in violation of any government statue or regulation, or of the constitution, by-laws, rules or regulations of any securities or commodities exchange or a self-regulatory organization, or of the policies of the Firm; (iii) the entering of an order or decree or the taking of any similar action with respect to Participant which substantially impairs such Participant from performing his or her duties or makes him or her ineligible from being associated with the Company pursuant to Section 9 of the Investment Company Act of 1940, as amended, or Section 203(f) of the Investment Advisors Act of 1940, as amended; (iv) malfeasance, disloyalty or dishonesty in any material respect; (v) any conviction for a felony: (vi) any failure to devote all professional time to assigned duties and to the business of the Firm; (vii) failure to satisfactorily perform duties, as determined by the Firm’s management in its sole discretion, or gross misconduct or gross negligence in the performance of duties; or (viii) failure to remain licensed to perform duties or other act, conduct or circumstance which renders the Participant ineligible for employment with the Firm.

“Change of Control” means any of the following events: (i) any person, including a “person” as such term is used in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended, acquires, directly or indirectly, beneficial ownership of securities representing 50.1% or more of the combined voting power of the outstanding equity securities of the Company; (ii) the closing of any merger, consolidation or other reorganization involving the Company with respect to which the stockholders of the Company immediately prior to such reorganization do not hold, directly or indirectly, more than 50% of the combined voting power of the outstanding equity securities of such successor entity immediately following such transaction; (iii) the closing of any transaction involving a sale of assets of the Company that have a total gross fair market value equal to or more than 90% of the total gross fair market value of all of the assets of the Company; (iv) the adoption of any plan or proposal for the liquidation or dissolution of the Company; or (v) within any 12-month period, individuals who, as of May 15, 2017, constitute the board of directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of

such board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Company’s board of directors shall be considered as though such individual were a member of the Incumbent Board.

Notwithstanding anything to the contrary, to the extent that Section 409A applies to an Award, the definition of “Change in Control” shall control for purposes of vesting an Award, but shall not trigger a distribution unless the event also constitutes a change in control within the meaning of Section 409A(a)(2)(A)(v) of the Code

“Clawback Event” means (i) Participant’s gross negligence, willful misconduct or willful malfeasance in connection with the performance of his or her job that has materially and adversely affected the Company’s reputation or business, (ii) Participant’s willful commission or participation in any violation of any law, rule or regulation applicable to the Company (unless Participant had a reasonable good faith belief that the act, omission or failure to act in question was not a violation of such law, rule or regulation) and such violation has materially and adversely affected the Company’s reputation or business or Participant’s ability to be associated with an investment company or an investment advisor, (iii) Participant’s theft, embezzlement or fraud in connection with the performance of his or her duties for the Firm, and (iv) Participant is convicted of, or plead guilty or nolo contendere to, a crime committed during the course of Participant’s employment with, and performance of duties on behalf of, the Firm that the Committee, acting in good faith, reasonably determines is likely to have a material and adverse effect on the reputation or business of the Company.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Compensation Committee of the Company’s Board of Directors or such committee or persons designated by that Compensation Committee to act on its behalf.

“Common Stock” means Legg Mason, Inc. common stock, par value $.10 per share.

“Competitive Activity” means Participant’s engagement in any activity that competes with any of the Firm’s business operations, as determined by the Committee, in its sole discretion, and shall include, without limitation, representing in any capacity, other than as an outside director, a company that competes with the Company and its subsidiaries.

“Disability” means a medically determinable physical or mental impairment which qualifies the Participant for total disability benefits under the Social Security Act; or which, in the opinion of the Committee (based upon such evidence as it deems satisfactory): (i) can be expected to result in death or to last at least 12 months and (ii) will prevent the Participant from performing his usual duties or any other similar duties available in the Firm’s employ.

“Firm” means, except as otherwise provided under Section 409A of the Code and the regulations promulgated thereunder, the employing entity of any individual determined by the Committee to be a participant in the Plan and, if the employing entity of any Participant should change to another affiliate of the Company, such other affiliate. In the event the employing entity ceases to be an affiliate of the Company, the employing entity shall no

longer be considered to be a Firm, and, for purposes of this agreement, the Participant shall be deemed to have terminated employment with the Firm as of such date.

“Good Reason” means (i) a material adverse change in the responsibilities of the Participant from those in effect prior to the Change of Control and (ii) the Participant's principal place of employment is moved more than 50 miles from the location immediately prior to the Change of Control, (iii) the Participant’s base salary is significantly reduced or (iv) Participant’s incentive compensation for a fiscal year is materially reduced from his or her incentive compensation for the prior fiscal year, and such reduction is not related to a reduction in the responsibilities of the Participant or either individual or corporate performance.

“Grant Date” means the “Grant Date” set forth in the Participant’s Award Notification.

“Legg Mason Profit Sharing Plan” means the Legg Mason & Co., LLC Profit Sharing and

401(k) Plan and Trust, as such plan may be amended from time to time.

“Separation from Service” means a separation from service within the meaning of Section 409A(a)(2)(A)(i) of the Code and the regulations issued thereunder.

“Specified Employee” means a specified employee within the meaning of Section 409A (a)(2)(B)(i) of the Code.

LEGG MASON, INC.

By: ______________________

Thomas C. Merchant

Secretary

Title: Secretary

EX-10.2

Exhibit 10.2

LEGG MASON, INC. 1996 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

Legg Mason, Inc. (the “Company”) hereby grants to you (the “Participant”), pursuant to the Legg Mason, Inc. 1996 Equity Incentive Plan, as amended (the “Plan”), an award (the “Award”) of restricted share units (“RSUs”), upon and subject to the restrictions, terms and conditions set forth below. Each RSU will constitute a right to receive, upon and subject to vesting of such RSU, one share of Common Stock (the shares of Common Stock distributable upon the vesting of RSUs hereunder are referred to herein as “Shares”). This document constitutes Participant’s “Award Notification”. By electronically accepting the Award, you are acknowledging your acceptance of the Award subject to the restrictions and upon the terms and conditions set forth in this Agreement and the Plan. The number of RSUs included in the Award shall be as set forth on the third party website pursuant to which this Award Notification is electronically delivered to Participant and in the books and records of the Company, which shall control, absent manifest error, in the event of a discrepancy. The Grant Date for this Award shall for all purposes be May 15, 2017.

This Award is subject in all respects to the applicable provisions of the Plan. Such provisions are incorporated herein by reference and made a part hereof. Capitalized terms that are not defined in Section 5.7 below are defined in the Plan and shall have the meanings specified in the Plan.

In addition to the terms, conditions and restrictions set forth in the Plan, all terms, conditions and restrictions set forth in this Agreement are applicable to the Award granted hereby.

1.RIGHTS AS A STOCKHOLDER.

Until the RSUs subject to this Award have vested under Section 3 and the underlying Shares have been distributed under Section 2, Participant shall have no ordinary rights as a stockholder with respect to the RSUs or such Shares other than the right to receive dividend or distribution equivalents on the RSUs as set out below. Therefore, until the RSUs subject to this Award have vested and underlying Shares have been distributed, Participant shall have no rights to receive, vote, take possession of or transfer the Shares. Commencing on the Grant Date, Participant shall have the right to receive dividend and other distribution equivalents with respect to the Shares underlying unvested RSUs that are the subject of this Award unless and until such RSUs are forfeited pursuant to Section 3 hereof; provided, however, that for any dividend or other distribution (including, without limitation, a stock dividend or stock split) on shares of Common Stock that is not a cash dividend or distribution, the dividend or distribution equivalent shall be delivered to the Company, shall be held by the Company in accordance with Section 2 below and shall be subject to the same vesting schedule and other restrictions as the RSUs with respect to which such dividend or other distribution equivalent relates. In connection with the payment of such dividend or other distributions equivalents the Company may deduct any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for the account of Participant or may include such dividend or distribution equivalent in the payroll of Participant’s employer so that such dividend or distribution equivalent is included within the

compensation of Participant for withholding and other taxation purposes. Participant shall be entitled to retain cash dividend and distribution equivalents received regardless of whether the RSUs with respect to which such dividend or distribution equivalents were made are subsequently forfeited pursuant to Section 3 hereof. Notwithstanding anything to the contrary, RSUs shall at all times be subject to the restrictions on transferability contained in Section 4.1 hereof.

2.CUSTODY AND DELIVERY OF RSUS AND UNDERLYING SHARES.

RSUs subject to this Award shall be held solely on the books and records of the Company and shall remain as such until the RSUs have vested under Section 3 hereof. Participant may not receive or take possession of any Shares underlying unvested RSUs subject to this Award, either through physical share certificates or through book-entry accounts held by, or in the name of, Participant. The Company shall not allow any transfers of RSUs subject to this Award. Upon the vesting of any RSUs subject to this Award pursuant to Section 3, the Company will issue to Participant one share of Common Stock for each vested RSU, at which point each such vested RSU will terminate. The Company shall deliver Shares underlying RSUs subject to this Award that have vested pursuant to Section 3 below to Participant through book entry transfer to an account in Participant’s name at a financial institution that is selected by the Company. Share certificates representing distributed Shares shall not be issued by the Company until such Shares have been delivered to Participant’s account as specified above. Participant hereby authorizes the Company, and any financial institution at which the Company or Participant establishes an account to which the Shares underlying RSUs subject to this Award will be distributed, to transfer any Shares underlying vested RSUs to Participant’s account as discussed above. The Company shall pay all original issue or transfer taxes and all fees and expenses incident to the delivery of any Shares hereunder; provided that the Company shall not pay the expenses related to any sale of Shares received upon vesting of RSUs subject to this Award, regardless of whether such sale is made to satisfy expenses or withholding or other taxes

3.VESTING AND FORFEITURE.

(a)    Except as otherwise provided in the Plan or in Section 3(b) of this Agreement, twenty-five percent (25%) of the RSUs subject to Participant’s Award shall vest and be distributed in shares of Common Stock pursuant to Section 2 (to “vest”) on each of April 30, 2018, April 30, 2019, April 30, 2020 and April 30, 2021 (each, a “Vesting Date”).

(b)    Participant’s right to vest in this Award is conditioned upon Participant’s continuous employment with the Firm, except to the limited extent to which vesting may continue following a termination of Participant’s employment as provided below. If Participant’s continuous employment with the Firm terminates or is interrupted for any reason stated below, Participant’s rights with respect to the Award shall be affected as follows:

(1) Resignation. Except as otherwise provided below, or otherwise agreed by the Committee, if Participant resigns or otherwise terminates his or her employment with the Firm for any reason, Participant’s unvested Award shall be forfeited and Participant’s vested but undistributed Award (if any) shall be distributed to Participant in accordance with Section 2 hereof.

(2) Disability. Upon termination of Participant’s employment with the Firm by reason of his or her Disability, on the date of such termination, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(3) Death. Upon termination of Participant’s employment with the Firm due to death, on the date of such termination, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant’s beneficiaries under Section 4.2 hereof in accordance with Section 2 hereof.

(4) Termination for Cause. Upon termination of Participant’s employment by the Firm for Cause, Participant’s unvested Award shall be immediately forfeited.

(5) Change of Control. In the event that a Change of Control occurs and within 12 months of such Change of Control (i) the Participant’s employment with the Firm is terminated by the Firm without Cause or (ii) the Participant terminates his or her employment with the Firm for Good Reason, then, as of the date of such termination, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(6) Termination without Cause. Except as otherwise specified in this Section 3(b), upon a termination of Participant’s employment by the Firm without Cause, Participant’s unvested Award shall be immediately forfeited.

(7) Termination of Employment Due to Retirement. If Participant’s employment with the Firm terminates before the date on which all RSUs subject to Participant’s Award have vested and (i) the reason for such termination is Participant’s retirement pursuant to Section 7.1 (or any successor retirement provision) of the Legg Mason Profit Sharing Plan and (ii) such termination of employment is without Cause, then the unvested portion of Participant’s Award shall continue to vest in accordance with Section 3(a) as long as Participant does not engage in Competitive Activity. If Participant engages in Competitive Activity, then the portion of Participant’s Award that is unvested at the time Participant engages in such activity shall be immediately forfeited. In the event of Participant’s death during the period in which unvested Awards are continuing to vest under this clause (7), then, as of the date the Company becomes aware of such death, Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof.

(8) Reduction in Workforce. If Participant’s employment with the Firm terminates before the date on which all RSUs subject to Participant’s Award have vested and (i) such termination is due to the elimination of Participant’s employment in connection with a reduction in workforce by the Firm and (ii) such termination of employment is without Cause, , Participant’s unvested Award shall be 100% vested and Shares underlying such vested RSUs shall be distributed to Participant in accordance with Section 2 hereof; provided, however, that in the event that Participant fails to sign a general release of claims provided by the Company, or Participant signs and revokes such release within the time permitted by law to revoke such release, then any Shares received in connection with the RSUs that became vested on such termination shall be cancelled and Participant shall return such Shares to the Company. Participant agrees that the Company may enforce the cancellation by all legal means available, including, without limitation, by withholding the value of the canceled Shares from other sums owed to Participant by the Company.

To the extent that Section 409A of the Code applies to the vesting or distribution of any RSUS or underlying Shares hereunder, then any vesting or distribution made in connection with or following the Participant's separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code and the regulations issued thereunder) shall not be made earlier than the first business day of the seventh month following the Participant's separation from service, or if earlier the date of death of the Participant. Any vesting or distribution that is delayed in accordance with the foregoing sentence shall be made on the first business dayfollowing the expiration of such six (6) month period.

4.ADDITIONAL TERMS AND CONDITIONS OF THE AWARD.

4.1.NONTRANSFERABILITY OF RSUS.

RSUs may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Any such attempted sale, transfer, assignment, pledge, hypothecation or encumbrance, or other disposition of any such RSUs shall be null and void.

4.2.BENEFICIARIES.

Participant may designate in writing, on a form to be prescribed by and filed with the Committee, a beneficiary to receive all or part of the Shares to be distributed under the Plan in the event of Participant’s death. A designation of a beneficiary may be replaced by a new designation or may be revoked by Participant at any time and in accordance with such rules and procedures established by the Committee on a form prescribed by and filed with the Committee. In the event of Participant’s death, Shares due under the Plan in respect of RSUs with respect to which a designation of a beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be distributed in accordance with the Plan to the designated beneficiary. Distributions due under the Plan and not subject to a beneficiary designation shall be distributed

to Participant’s estate. If there is any question as to the legal right of any beneficiary to receive any distribution under the Plan, the distribution in question may be made in the sole discretion of the Committee to the estate of Participant, in which event the Firm shall have no further liability to anyone with respect to such distribution. Distribution to the executors or administrators of the estate of Participant may be conditioned on the delivery to the Committee of such tax waivers, letters testamentary and other documents as the Committee may reasonably request.

4.3.RIGHT OF SET OFF.

Notwithstanding any provisions of this Agreement to the contrary, the Committee, the Firm and the Company may offset any amounts that Participant may owe to the Firm against the shares subject to a Participant’s Award and any distributions that would have otherwise been made to Participant under the Plan.

4.4.CONSENT TO ELECTRONIC DELIVERY.

In lieu of receiving documents in paper format, Participant hereby agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Firm elects to or is required to deliver (including, but not limited to, the Prospectus related to Participant’s Award, any supplements to that Prospectus, award notifications and agreements, account statements, monthly or annual reports, and all other forms or communications) in connection with Participant’s Award. Electronic delivery of a document to Participant may be via a Firm e-mail system or by reference to a location on a Firm intranet site or a third-party’s Internet site to which Participant has access.

4.5.SECURITIES LAWS.

Participant hereby represents and covenants that if in the future Participant decides to offer or dispose of any Shares distributed with respect to vested RSUs subject to this Award or interest therein, Participant shall do so only in compliance with this Agreement, the Securities Act of 1933, as amended, and all applicable state and local national securities laws as appropriate. As a condition precedent to the delivery to Participant of any Shares underlying vested RSUs subject to this Award, Participant shall comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance of the Shares and, in connection therewith, shall execute any documents and make any representation and warranty to the Company which the Committee shall in its sole discretion deem necessary or advisable.

4.6.ADJUSTMENT.

In the event that there occurs (a) any change in the number of outstanding shares of Common Stock through the declaration of dividends, stock splits or the like or through any change in the capital account of the Company or any other transaction referred to in Section 424(a) of the Code or (b) any other change in the capital structure of the Company or in the Common Stock, then, if applicable, the number of RSUs subject to this award, and, if applicable, number and class of underlying Shares, shall be adjusted as provided in the Plan. Any decision of the Committee regarding the amount and timing of any adjustment shall be final and conclusive.

4.7.COMPLIANCE WITH APPLICABLE LAW.

This Award is subject to the condition that if the listing, registration or qualification of the Shares distributed with respect to RSUs subject to this Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the vesting of RSUs or delivery of underlying Shares hereunder, the RSUs or underlying Shares may not be delivered, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained. The Company agrees to make every reasonable effort to effect or obtain any such listing, registration, qualification, consent or approval.

By signing the Award Notification, however, the Participant acknowledges and agrees that he or she is and remains responsible for any local compliance requirements or regulations in relation to the receipt, ownership and possible subsequent sale of the Company’s Common Stock. The Participant also agrees that he or she is responsible for any local compliance requirements or regulations in relation to the opening and use of a U.S. brokerage account.

4.8.WITHHOLDING; TAX MATTERS

(a)    The Company may, and the Participant hereby authorizes the Company to, deduct an amount determined by the Company up to the maximum respective statutory rates to satisfy all federal, state and local withholding tax requirements arising in connection with this Award, from payments of any kind by the Company or its subsidiaries to which the Participant would otherwise be entitled, including without limitation, salary, bonus and other compensation. Alternatively, with respect to RSUs that have vested, the Participant may elect (i) to remit to the Company by check an amount sufficient to satisfy any federal, state or local withholding tax requirements, prior to the delivery of Shares pursuant to Section 2 hereof, or (ii) to surrender to the Company (via an instruction, given to the Company prior to the delivery of Shares pursuant to Section 2, to deduct from delivery of Shares underlying vested RSUs) a number of Shares underlying the vested RSUs with a market value, as determined by the Company, equal to the amount of the applicable withholding tax requirements (which may be up to the maximum respective statutory rates); provided that the Committee, in its sole discretion, may at any time prohibit the Participant from utilizing the method to provide for withholding taxes specified in this clause (ii). However, if Participant fails to either provide the check or, if applicable, provide the share deduction instruction described in the prior sentence, in each case by the date any withholding tax with respect to any RSUs or underlying Shares is due, the Company shall, and Participant hereby authorizes the Company to, withhold delivery of underlying Shares or deduct amounts determined by the Company to be withheld up to the maximum statutory rates from payments of any kind by the company or its subsidiaries to which Participant would otherwise be entitled, including without limitation, salary, bonus and other compensation. Participant acknowledges that in the event the preceding sentence applies, the Company shall act in its sole discretion without any liability to the Participant resulting from the action or the timing under which the Company carries out the action.

(b)    The Company reserves the right to make whatever further arrangements it deems appropriate for the withholding of taxes in connection with any transaction contemplated by this Agreement or the Plan, including, without limitation, providing for payments of withholding taxes by deducting amounts required to be withheld, plus interest thereon, from

payments of any kind by the Company or any of its subsidiaries to which Participant would otherwise be entitled.

4.9.AWARD CONFERS NO RIGHTS TO CONTINUED EMPLOYMENT OR FUTURE AWARDS.

Nothing in the Plan or in this Agreement shall confer upon Participant any right to continue in the employ of the Company or any subsidiary of the Company for a specified period of time or interfere with the right of the Company and its subsidiaries to terminate such employment at any time. In addition, neither the Plan nor this Agreement confers any right upon the Participant to receive future awards under the Plan. All future awards, if any, are completely at the discretion of the Company. Moreover, any awards granted under the Plan are not part of the Participant’s ordinary compensation, employment agreement, if any, or working relationship with the Company or any of its affiliates and will therefore not be considered as part of such compensation, agreement or relationship in the event of severance, redundancy or resignation, unless otherwise required by applicable law.

4.10.CLAWBACK PROVISIONS

Notwithstanding anything to the contrary in this Agreement, this Award is expressly made subject to the terms of the Legg Mason, Inc. Clawback Policy as adopted by the Committee. As a result, Participant may be required to return to the Company the RSUs received in this Award, and the underlying Shares (or the value thereof), in the situations described below. Participant agrees that the Company may enforce the forfeiture by all legal means available, including, without limitation, by withholding the forfeited amount from other sums owed to Participant by the Firm.

In the event of a restatement of the Company’s financial results within three years of original reporting to correct a material error, then, if the Legg Mason, Inc. Board of Directors determines that Participant’s acts or omissions were a significant contributing factor to the need to issue such restatement and that all or any portion of Participant’s RSUs, if the Award was made prior to the restatement, would not have been awarded based upon the restated financial results, then Participant agrees to forfeit and return to the Company, to the extent permitted by applicable law, the portion (which may be all) of the RSUs or the underlying Shares or value thereof (regardless of whether vesting has occurred and underlying Shares distributed to Participant) that the Board of Directors, in its discretion, determines to be appropriate.

In the event that Participant’s employment is terminated by the Firm for a Clawback Event or (ii) following the termination of Participant’s employment, the Company is or becomes aware that Participant committed an act that would have given rise to a termination for a Clawback Event, then, in either event, Participant agrees to forfeit to the Company, to the extent permitted by applicable law, the portion (which may be all) of the RSUs or the underlying Shares or value thereof (regardless of whether vesting has occurred and underlying Shares distributed to Participant), that Participant was awarded after the conduct or omission that gave rise to the Clawback Event and that the Board of Directors, in its discretion, determines to be appropriate.

5.MISCELLANEOUS PROVISIONS.

5.1.SUCCESSORS; ASSIGNMENTS AND TRANSFERS.

This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of Participant, acquire any rights hereunder. The rights and interests of Participant under this Agreement may not be sold, assigned, encumbered or otherwise transferred except in the event of death of Participant, by will or by the laws of descent and distribution. This Agreement may be assigned by the Company without Participant’s consent.

5.2.    NOTICES.

All notices, requests or other communications provided for in this Agreement shall be made in writing either (a) by actual delivery to the party entitled thereto, or (b) by mailing in the mails of the United States or, for Participants who reside in another country, of the other country to the address of the party entitled thereto as set forth below, via certified or registered mail, return receipt requested. The notice shall be deemed to be received in case of delivery, on the date of its actual receipt by the party entitled thereto, and in case of mailing, five days following the date of such mailing. Any notice mailed to the Company shall be addressed to the Restricted Stock Administrator of the Company at 100 International Drive, Baltimore, Maryland 21202. Any notice mailed to Participant shall be addressed to Participant at Participant’s address as reflected in the personnel records of the Company. Either party hereto may designate a different address for notices than the one provided herein by notice to the other.

5.3.CONSENT AND DISCLOSURE REGARDING USE OF PERSONAL INFORMATION.

In connection with the grant of the Award, and any other award under the Plan, and the implementation and administration of the Plan, including, without limitation, Participant’s actual participation, or consideration by the Committee for potential future participation in the Plan at any time, it is or may become necessary for the Firm to collect, transfer, use, and hold certain personal information regarding Participant in and/or outside of Participant’s home country. By accepting the Award, Participant explicitly consents (i) to the use of such information for the purpose of being considered for participation in future awards under the Plan (to the extent he/she is eligible under the Plan, and without any guarantee that any award shall be made); and (ii) to the use, transfer, processing and storage, electronically or otherwise, of his/her personal information, as such use has occurred to date, and as such use may occur in the future, in connection with this Award or any other award under the Plan, as further described below.

Use, transfer, storage and processing of personal information, electronically or otherwise, may be in connection with the Company’s internal administration of the Plan, or in connection with tax or other governmental and regulatory compliance activities directly or indirectly related to the Award or any other award under the Plan. For such purposes only, personal information may be used by third parties retained by the Company to assist with the administration and compliance activities of the Plan, and may be transferred by the company that employs (or any company that has employed) Participant from Participant’s home country to other members of the Company and third parties located in the United States and in other countries. Specifically, those parties that may have access to Participant’s information for the purposes described herein include, but are not limited to, (i) human resources personnel responsible for administering the Plan; (ii)

Participant’s U.S., regional and local employing entity and business unit management, including Participant’s supervisor and his/her superiors; (iii) the Committee or its designee, which is responsible for administering the Plan; (iv) the Company’s technology systems support team (but only to the extent necessary to maintain the proper operation of electronic information systems that support the Plan); and (v) internal and external legal, tax and accounting advisors (but only to the extent necessary for them to advise the Company on compliance and other issues affecting the awards under the Plan in their respective fields of expertise).

At all times, Company personnel and third parties shall be obligated to maintain the confidentiality of Participant’s personal information except to the extent the Company is required to provide such information to governmental agencies or other parties. Such action shall always be undertaken only in accordance with applicable law. The personal information that the Company may collect, process, store and transfer for the purposes outlined above may include Participant’s name, nationality, citizenship, work authorization, date of birth, age, government/tax identification number, passport number, brokerage account information, or other internal identifying information, home address, work address, job and location history, compensation, business unit, employing entity, and Participant’s beneficiaries and contact information. Participant may obtain more details regarding the access and use of his/her personal information, and may correct or update such information, by contacting his/her human resources representative.

5.4 MARKET FLUCTUATIONS.

The Company is not responsible for any foreign exchange fluctuations between the Participant’s local currency, if the Participant is not located in the U.S., and the U.S. dollar nor is the Company responsible or liable for any decrease in the value of the Company’s Common Stock at any time, all of which shall be solely the risk and responsibility of the Participant.

5.5.CONFLICT; GOVERNING LAW.

In the event of a conflict between this Agreement and the Plan, the Plan shall control. This Agreement shall be governed by, and interpreted in accordance with, the internal laws of the State of New York(without regard to conflicts of laws rules thereof).

5.6COUNTERPARTS.

This Agreement may be executed in two or more counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

5.7DEFINITIONS.

Unless otherwise defined herein, the following terms have the meanings set forth below.

“Cause” means any one or more of the following types of behavior by Participant which the Firm in its sole discretion finds to be sufficient reason to terminate the Participant’s employment with the Firm: (i) any conduct (a) that constitutes Competitive Activity, (b) that breaches any obligation to the Firm or Participant’s duty of loyalty to the Firm, or (c) that is materially injurious to the Firm, monetarily or otherwise; (ii) material violation of, or an act taken by the failure to act which causes the Firm to be in violation of any government statue or regulation, or of the constitution, by-laws, rules or regulations of any securities or commodities exchange or a self-regulatory organization, or of the policies of the Firm; (iii) the entering of an order or decree or the taking of any similar action with respect to Participant which substantially impairs such Participant from performing his or her duties or makes him or her ineligible from being associated with the Company pursuant to Section 9 of the Investment Company Act of 1940, as amended, or Section 203(f) of the Investment Advisors Act of 1940, as amended; (iv) malfeasance, disloyalty or dishonesty in any material respect; (v) any conviction for a felony: (vi) any failure to devote all professional time to assigned duties and to the business of the Firm; (vii) failure to satisfactorily perform duties, as determined by the Firm’s management in its sole discretion, or gross misconduct or gross negligence in the performance of duties; or (viii) failure to remain licensed to perform duties or other act, conduct or circumstance which renders the Participant ineligible for employment with the Firm.

“Change of Control” means any of the following events: (i) any person, including a “person” as such term is used in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended, acquires, directly or indirectly, beneficial ownership of securities representing 50.1% or more of the combined voting power of the outstanding equity securities of the Company; (ii) the closing of any merger, consolidation or other reorganization involving the Company with respect to which the stockholders of the Company immediately prior to such reorganization do not hold, directly or indirectly, more than 50% of the combined voting power of the outstanding equity securities of such successor entity immediately following such transaction; (iii) the closing of any transaction involving a sale of assets of the Company that have a total gross fair market value equal to or more than 90% of the total gross fair market value of all of the assets of the Company; (iv) the adoption of any plan or proposal for the liquidation or dissolution of the Company; or (v) within any 12-month period, individuals who, as of May 15, 2017, constitute the board of directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of such board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Company’s board of directors shall be considered as though such individual were a member of the Incumbent Board.

“Clawback Event” means (i) Participant’s gross negligence, willful misconduct or willful malfeasance in connection with the performance of his or her job that has materially and adversely affected the Company’s reputation or business, (ii) Participant’s willful commission or participation in any violation of any law, rule or regulation applicable to the Company (unless Participant had a reasonable good faith belief that the act, omission or failure to act in question was not a violation of such law, rule or regulation) and such violation has materially and adversely affected the Company’s reputation or business or Participant’s ability to be associated with an investment company or an investment advisor, (iii) Participant’s theft, embezzlement or fraud in connection with the performance of his or her duties for the Firm, and (iv) Participant is convicted of, or plead guilty or nolo contendere to, a crime committed during the course of Participant’s employment with, and performance of duties on behalf of, the Firm that the Committee, acting in good faith, reasonably determines is likely to have a material and adverse effect on the reputation or business of the Company.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Compensation Committee of the Company’s Board of Directors or such committee or persons designated by that Compensation Committee to act on its behalf.

“Common Stock” means Legg Mason, Inc. common stock, par value $.10 per share.

“Competitive Activity” means Participant’s engagement in any activity that competes with any of the Firm’s business operations, as determined by the Committee, in its sole discretion, and shall include, without limitation, representing in any capacity, other than as an outside director, a company that competes with the Company and its subsidiaries.

“Disability” means a medically determinable physical or mental impairment which qualifies the Participant for total disability benefits under the Social Security Act; or which, in the opinion of the Committee (based upon such evidence as it deems satisfactory): (i) can be expected to result in death or to last at least 12 months and (ii) will prevent the Participant from performing his usual duties or any other similar duties available in the Firm’s employ.

“Firm” means, except as otherwise provided under Section 409A of the Code and the regulations promulgated thereunder, the employing entity of any individual determined by the Committee to be a participant in the Plan and, if the employing entity of any Participant should change to another affiliate of the Company, such other affiliate. In the event the employing entity ceases to be an affiliate of the Company, the employing entity shall no longer be considered to be a Firm, and, for purposes of this agreement, the Participant shall be deemed to have terminated employment with the Firm as of such date.

“Good Reason” means (i) a material adverse change in the responsibilities of the Participant from those in effect prior to the Change of Control and (ii) the Participant's principal place of employment is moved more than 50 miles from the location immediately prior to the Change of Control, (iii) the Participant’s base salary is significantly reduced or (iv) Participant’s incentive compensation for a fiscal year is materially reduced from his or

her incentive compensation for the prior fiscal year, and such reduction is not related to a reduction in the responsibilities of the Participant or either individual or corporate performance.

“Grant Date” means the “Grant Date” set forth in the Participant’s Award Notification.

“Legg Mason Profit Sharing Plan” means the Legg Mason & Co., LLC Profit Sharing and 401(k) Plan and Trust, as such plan may be amended from time to time.

LEGG MASON, INC.

By: ______________________

Name: Thomas C. Merchant

Title: Secretary

United Kingdom Supplemental Disclosure

This offer is being made to selected employees as part of an employee incentive programme in order to provide an additional incentive and to encourage employee share ownership and to increase your interest in the success of Legg Mason, Inc. The company offering these rights is Legg Mason, Inc. The shares which are the subject of these rights are new shares in Legg Mason, Inc. More information in relation to Legg Mason, Inc. including the share price can be found at the following web address: www.leggmason.com.

The obligation to publish a prospectus does not apply because of Article 4(1)(e) of the EU Prospectus The obligation to publish a prospectus does not apply because of Article 4(1)(e) of the EU Prospectus Directive, in particular, the number of local addressees of the offer is below 150. The total maximum number of shares which are the subject of the offer under the Plan is 41,500,000 Shares of common stock of Legg Mason, Inc., $.10 Par Value

EX-10.3

Exhibit 10.3

LEGG MASON, INC. 1996 EQUITY INCENTIVE PLAN

PERFORMANCE SHARE UNIT AWARD AGREEMENT

Legg Mason, Inc. (the “Company”) hereby grants to you (the “Participant”), pursuant to the Legg Mason, Inc. 1996 Equity Incentive Plan, as amended (the “Plan”), an award (the “Award”) of performance share units (“Performance Share Units”), upon and subject to the restrictions, terms and conditions set forth below. Each Performance Share Unit will constitute a right to receive, upon and subject to earning and vesting of such Performance Share Unit, the number of shares of Common Stock determined and distributable as provided in Sections 2 and 3 below (the shares of Common Stock distributable upon the earning and vesting of Performance Share Units hereunder are referred to herein as “Shares”). This document constitutes Participant’s “Award Notification”. By electronically accepting the Award, you are acknowledging your acceptance of the Award subject to the restrictions and upon the terms and conditions set forth in this Agreement and the Plan. The number of Performance Share Units included in the Award shall be as set forth on the third party website pursuant to which this Award Notification is electronically delivered to Participant and in the books and records of the Company, which shall control, absent manifest error, in the event of a discrepancy. The Grant Date for this Award shall for all purposes be May15, 2017.

This Award is subject in all respects to the applicable provisions of the Plan. Such provisions are incorporated herein by reference and made a part hereof. Capitalized terms that are not defined in Section 5(k) below are defined in the Plan and shall have the meanings specified in the Plan.

In addition to the terms, conditions and restrictions set forth in the Plan, all terms, conditions and restrictions set forth in this Agreement are applicable to the Award granted hereby.

1.AWARD OF PERFORMANCE SHARE UNITS.

(a)Pursuant to and subject to the terms of the Plan, the Company hereby awards to Participant the number of Performance Share Units reflected on the Award Notification as the Award. The Performance Share Units issued in the Award shall be paid out in shares of Common Stock in an amount determined under Section 2.

(b) Following the date that Performance Share Units are earned and vested pursuant to Section 2, each Performance Share Unit shall be distributed as shares of Common Stock, in the amount determined under Section 2. The number of Performance Share Units reflected in the Award Notification shall be credited to Participant’s Account as of the Grant Date. Participant’s Account shall be the record of Performance Share Units granted to Participant hereunder and is solely for accounting purposes and shall not require a segregation of any assets of the Company.

(c)Participant shall not have the rights of a stockholder, including any rights to receive dividends with respect to any Performance Share Units credited to Participant’s Account or any shares of Common Stock that may be distributed in respect of such Performance Share Units, until shares of Common Stock have been distributed to Participant pursuant to Section 3.

2.PERFORMANCE VESTING AND FORFEITURE.

(a)Satisfaction of Percentile Ranking Thresholds. Performance Share Units shall become earned and vested in accordance with this Section 2, and shares of Common Stock shall be distributed in accordance with Section 3, only upon, and to the extent of, the attainment of the TSR Ranking specified in subsection (c) below as of the end of the Performance Period. To the extent that the TSR Ranking specified below is achieved for the Performance Period, and Participant remains in full time employment with the Company (or a subsidiary or affiliate of the Company) through the end of the Performance Period, then Performance Share Units shall vest, and shares of Common Stock will be distributed to Participant under Section 3, in accordance with the schedule specified in subsection (c) (but subject to modification in accordance with subsection (g) below).

(b)TSR Ranking.

The TSR Ranking of the Company is calculated by comparing the aggregate TSR for the Company with the aggregate TSR for each company in the Benchmark Group over the entire Performance Period, and then ranking the Company and each company in the Benchmark group in order based on their aggregate TSR. Such determination shall be made after making the following adjustments to the Benchmark Group:

(i) If a member of the Benchmark Group becomes insolvent during the Performance Period (or its stock ceases to trade for more than twenty (20) consecutive days due to bankruptcy or other similar insolvency law or process), it shall remain in the Benchmark Group, but be placed at the bottom for purposes of determining the Company’s TSR Ranking.

(ii) If a member of the Benchmark Group is acquired, it will be removed from the Benchmark Group.

(iii) If a member of the Benchmark Group consolidates with (or becomes part of) another member of the Benchmark Group, the performance of the surviving entity will be used to determine TSR and the member or members that consolidate or become a part of another shall be removed from the Benchmark Group.

(iv) If a member of the Benchmark Group consolidates (or becomes part of) an entity outside of the Benchmark Group, it will be removed from the Benchmark Group.

(v) If the stock of a member of the Benchmark Group ceases to trade for more than twenty (20) consecutive days due to a going private transaction, it will be removed from the Benchmark Group.

(c)TSR Ranking Thresholds.     The Company’s TSR performance will be ranked against the Benchmark Group and the percentage of the Target Payout Amount earned will be based on the Company’s ranking compared to the other firms in the Benchmark Group as follows:

Rank Against Members of the Benchmark Group 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Percent of Target Payout Amount Earned 150% 142% 135% 127% 119% 112% 104% 92% 75% 58% 42% 25% 0% 0% 0% 0%

Notwithstanding the foregoing, in no event shall the adjustment in the number of Shares pursuant to this Section 2(c) cause the number of Shares earned and distributed in respect of the Performance Share Units at the end of the Performance Period to be greater than one and one-half (1.5) times the Target Payout Amount. In addition, the number of Shares earned and distributed in respect of the Performance Share Units at the end of the Performance Period shall not exceed 100% of the Target Payout Amount if the Company’s TSR is negative over the Performance Period.

(d)Participant’s right to vest in this Award is conditioned upon Participant’s continuous full-time employment with the Firm throughout the Performance Period, except to the limited extent to which vesting may continue following a termination of Participant’s employment as provided below. If Participant’s continuous full-time employment with the Firm terminates or is interrupted during the Performance Period for any reason stated below, Participant’s rights with respect to the Award shall be affected as follows:

(1)Resignation. Except as otherwise provided below, if Participant resigns or otherwise terminates his or her employment with the Firm for any reason other than as specified in clause (2) or (4) below, or clause (e) or (f) below, prior to the end of the Performance Period, Participant’s Award shall be forfeited in its entirety.

(2)Death or Disability. If Participant terminates his or her employment with the Firm before the end of a Performance Period as a result of death or Separation from Service due to Disability, a Pro Rata Portion of the Award will vest and be earned. The remaining Performance Share Units will be forfeited, and the number of Shares issuable in

respect of the vested Pro Rata Portion of the Award (based on the vested Pro Rata Portion of the Target Payout Amount) shall be distributed in accordance with Section 3.

(3)Termination with or without Cause. Upon termination of Participant’s employment by the Firm with or without Cause, Participant’s Award shall be forfeited in its entirety.

(4)Termination of Employment Due to Retirement. If Participant’s employment with the Firm terminates before the end of the Performance Period by reason of Participant’s Retirement, then the Award will vest and be earned (subject to the terms set forth in clauses (a) through (c) above and clause (g) below) as of the end of the Performance Period, as long as Participant does not engage in Competitive Activity. If Participant engages in Competitive Activity, then the Award shall be forfeited at the time Participant engages in such Competitive Activity. If Participant does not engage in Competitive Activity, the number of Shares issuable in respect of the vested Award shall be determined in accordance with subsection (c) (and subject to any adjustment under clause (g) below) and shall be paid at the end of the Performance Period in accordance with Section 3. The remaining Performance Share Units will be forfeited.

(e)Effect of Change in Control During Performance Period.     In the event that a Change of Control occurs after the Grant Date and prior to the end of the Performance Period, a Pro Rata Portion of the Award will vest and be earned. The remaining Performance Share Units will be forfeited, and the number of Shares issuable in respect of the vested Pro Rata Portion of the Award (based on the vested Pro Rata Portion of the Target Payment Amount) shall be distributed in accordance with Section 3.

(f)Reduction in Workforce. If Participant’s employment with the Firm terminates before the date on which all Performance Share Units subject to Participant’s Award have vested and (i) such termination is due to the elimination of Participant’s employment in connection with a reduction in workforce by the Firm and (ii) such termination of employment is without Cause, and (iii) Participant has signed (and not revoked) a general release of claims provided by the Company then, a Pro Rata Portion of Participant’s Award shall vest and be earned. The remaining Performance Share Units will be forfeited, and the number of Shares issuable in respect of the vested Pro Rata Portion of the Performance Share Units shall be the lesser of the amount determined under subsection (c) (and subject to any adjustment under clause (g)) or the vested Pro Rata Portion of the Target Payout Amount, and shall be paid at the end of the Performance Period in accordance with Section 3. Failure to satisfy the condition set forth in the (iii) above by the date on which distribution is to be made in accordance with Section 3 will result in the forfeiture of all Performance Share Units.

(g)Committee Determination and Discretion to Reduce Payout Amount. The Committee shall determine and certify the extent to which the requisite TSR level has been met following the end of the Performance Period, whether the Performance Share Units have been earned and vested hereunder and the number of Shares to be distributed in respect of vested Performance Share Units, if any. Prior to the date on which Shares are distributed in respect of vested Performance Share Units, the Committee may use negative discretion to reduce the number of Shares issued for each vested Performance Share Unit from the amount calculated under the any of the previous provisions of this Section 2. The Committee’s determinations shall be binding

and conclusive on all parties. Performance Share Units shall not be deemed to have been earned and vested, and shares of Common Stock to be distributed will not be earned or distributed, until the Committee determination and certification as to the attainment of the achievement levels. The Committee may not exercise discretion to increase the amount earned or vested and/or the number of Shares otherwise due based on the extent to which the achievement levels for the Performance Period are met.

3.DISTRIBUTION OF PERFORMANCE SHARE UNITS

(a)Subject to the dollar limitation on payments that is contained in Section 13 of the Plan (applicable to Section 162(m) Participants), payment shall be made with respect to each vested and earned Performance Share Unit in the form of shares of Common Stock on or before the Distribution Date, with the number of Shares determined under Section 2. Notwithstanding anything to the contrary herein, in accordance with Section 5 of the Plan, the number of Shares issued to Participant shall not exceed the value of the maximum number of shares of Common Stock (determined as of the first day of the Performance Period) that may be granted under Section 5 of the Plan to any one individual during any calendar year less the number of any shares of Common Stock previously granted to the Participant under the Plan for the calendar year containing the first day of the Performance Period. Subject to the provisions of Section 3(d), such distribution will be made on the applicable date set forth below:

(1)The date on which the Performance Share Units have been earned and vested under Section 2(a) through (c) following the end of a Performance Period, based on the determination of the Committee;

(2)The date of the Participant’s death or Separation from Service due to Disability under Section 2(d)(2);

(3)The later of the end of a Performance Period or the date on which the Committee determines that Performance Share Units have been earned and vested under Section 2(d)(4) or (f) following the end of a Performance Period;

(4)The date of a Change in Control which meets the requirements of Section 409A(a)(2)(A)(v) of the Code; or

(5)The end of the Performance Period in the case of a Change in Control that does not meet the requirements of Section 409A(a)(2)(A)(v) of the Code;

But not later than the 15^th day of the third calendar month following the end of the Performance Period, or in the case of a Change in Control that meets the requirements of Section 409A(a)(2)(A)(v) of the Code, the 15th day of the third calendar month following the Fiscal Year in which such Change in Control occurred.

Notwithstanding the foregoing provisions of this clause (a), the following provisions shall apply:

(1)In the event a Change in Control occurs after the occurrence of a (a) Retirement, the distribution of the Shares shall be determined under Section 2(e) and shall be made in accordance with Section 3(a)(4), or (b) reduction in workforce under Section 2(f), the distribution of the Shares determined under Section 2(f) shall be based upon the vested Pro Rata Portion of the Target Payout Amount and shall be made in accordance with Section 3(a)(4); and

(2)To the extent required in order to comply with Section 409A of the Code, any distribution or payment to a Specified Employee that is made in connection with or following Separation from Service shall not be made earlier than the first business day of the seventh month following Participant’s Separation from Service, or if earlier the date of death of Participant. Any distribution or payment that is delayed in accordance with the foregoing sentence shall be made on the first business day following the expiration of such six (6) month period.

(b)The Company shall issue the Shares (except for any shares of Common Stock which are withheld to satisfy tax withholding) to an account of Participant opened by the Company at a financial institution selected by the Company. Cash shall be paid in lieu of issuing partial shares. Payment of cash or issuance and crediting shares of Common Stock to such account, in the amount determined under Section 2, constitute full payment and satisfaction of such Performance Share Units and this Award.

(c)To the extent that any cash or shares of Common Stock cannot be distributed to a Participant in respect of any Performance Share Units (or any other payment cannot be made) because of the payment limitations contained in Section 13 of the Plan, then payment of such amount shall be delayed until the earliest date on which such distribution or payment can be made consistent with Section 409A of the Code and the payment limitations contained in Section 13 of the Plan. If any distribution is deferred under this Section, such Performance Share Units shall nevertheless become fully vested and earned by Participant as of the date of the Committee determination and certification as to the attainment of the performance achievement levels, and the determination to distribute such Performance Share Units under Sections 3(a) and 3(b) above shall be made on the Distribution Date (as determined as if the deferral had not occurred). To the extent required in order to comply with Section 409A of the Code, any distribution or payment that is delayed in accordance with the provisions of this Section 3(c) and which is made in connection with or following Separation from Service shall not be made earlier than the first business day of the seventh month following Separation from Service, or if earlier the date of death of Participant. Any distribution or payment that is delayed in accordance with the foregoing sentence shall be made on the first business dayfollowing the expiration of such six (6) month period.

(d)     Notwithstanding the prior provisions of this Section 3, to the extent that the Committee reasonably determines that payment of any cash or shares of Common Stock in respect of any Performance Share Units, would cause the expense resulting from such Performance Share Units to be nondeductible under Section 162(m) of the Code, then payment of such amount shall

be deferred until either (i) the first calendar year in which the Committee reasonably anticipates (or should reasonably anticipate) that if payment is made during such calendar year, the deduction of such payment would not be barred by Section 162(m) of the Code; (ii) or by the 15^th day of the third month following the Participant’s Separation from Service (subject to the last two sentences of this Section). To the extent that a portion of such cash or Common Stock cannot be fully paid in the first such calendar year (prior to a Separation from Service), the portion that cannot be paid without creating a nondeductible expense under Section 162(m) of the Code will be distributed during each subsequent calendar year (subject to the limitations of Section 162(m) of the Code and the requirements of Section 409A of the Code) until the entire amount has been distributed. If any distribution is deferred under this Section, the Performance Share Units shall become fully vested and earned by Participant as of the date of the Committee determination and certification as to the attainment of the performance achievement levels, and the determination to distribute such Performance Share Units under Sections 3(a) and 3(b) above shall be made on the Distribution Date (as determined as if the deferral had not occurred). To the extent required in order to comply with Section 409A of the Code, all distributions or payments for the year in which the Participant Separates from Service that could be delayed in accordance with the provisions of this Section 3(d) shall not be made earlier than the first business day of the seventh month following Separation from Service, or if earlier the date of death of Participant. Any distribution or payment that is delayed in accordance with the foregoing sentence shall be made on the first business dayfollowing the expiration of such six (6) month period.

4.ADDITIONAL TERMS AND CONDITIONS OF THE AWARD.

(a)Obligation Unfunded. The obligation of the Company with respect to Performance Share Units granted hereunder shall be interpreted solely as an unfunded contractual obligation to distribute shares of Common Stock in the manner and under the conditions prescribed under this Agreement. Any shares or other assets set aside with respect to amounts payable under this Agreement shall be subject to the claims of the Company’s general creditors, and no person other than the Company shall, by virtue of the provisions of the Plan or this Agreement, have any interest in such assets. In no event shall any assets set aside (directly or indirectly) with respect to amounts payable under this Agreement be located or transferred outside the United States. Neither Participant nor any other person shall have any interest in any particular assets of the Company by reason of the right to receive a benefit under this Agreement, and Participant or any such other person shall have only the rights of a general unsecured creditor of the Company with respect to any rights under the Plan or this Agreement.

(b)Beneficiaries. Participant may designate in writing, on a form to be prescribed by and filed with the Committee, a beneficiary to receive all or part of the Performance Share Units to be distributed under the Plan in the event of Participant’s death. A designation of a beneficiary may be replaced by a new designation or may be revoked by Participant at any time and in accordance with such rules and procedures established by the Committee on a form prescribed by and filed with the Committee. In the event of Participant’s death, amounts due under the Plan with respect to which a designation of a beneficiary has been made (to the extent it is valid and enforceable under applicable law) shall be distributed in accordance with the Plan to the designated beneficiary. Distributions due under the Plan and not subject to a beneficiary designation shall be distributed to Participant’s estate. If there is any question as to the legal right of any beneficiary to receive any distribution under the Plan, the distribution in question may be made in the sole discretion of the Committee to the estate of Participant, in which event the Firm

shall have no further liability to anyone with respect to such distribution. Distribution to the executors or administrators of the estate of Participant may be conditioned on the delivery to the Committee of such tax waivers, letters testamentary and other documents as the Committee may reasonably request.

(c)Right Of Set Off. Notwithstanding any provisions of this Agreement to the contrary, the Committee, the Firm and the Company may offset any amounts that Participant may owe to the Firm against the Performance Share Units subject to a Participant’s Award and any distributions that would have otherwise been made to Participant under the Plan. Any offset made pursuant to the preceding sentence may be made only on the date the payment is otherwise scheduled to be made under the terms of the Plan and this Agreement and may not operate to accelerate any payment in violation of Treasury Regulation Section 1.409A-3(j)(4)(xiii).

(d)Consent To Electronic Delivery. In lieu of receiving documents in paper format, Participant hereby agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Firm elects to or is required to deliver (including, but not limited to, the Prospectus related to Participant’s Award, any supplements to that Prospectus, and agreements, account statements, monthly or annual reports, and all other forms or communications) in connection with Participant’s Award. Electronic delivery of a document to Participant may be via a Firm e-mail system or by reference to a location on a Firm intranet site or a third-party’s Internet site to which Participant has access.

(e)Securities Laws. Participant hereby represents and covenants that if in the future Participant decides to offer or dispose of any Common Stock received subject to this Award or interest therein, Participant shall do so only in compliance with this Agreement, the Securities Act of 1933, as amended and all applicable state and local national securities laws as appropriate. As a condition precedent to the delivery to Participant of any shares of Common Stock subject to this Award, Participant shall comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance of the Common Stock and, in connection therewith, shall execute any documents and make any representation and warranty to the Company which the Committee shall in its sole discretion deem necessary or advisable.

(f)Adjustment. In the event that there occurs (a) any change in the number of outstanding shares of Common Stock through the declaration of dividends, stock splits or the like or through any change in the capital account of the Company or any other transaction referred to in Section 424(a) of the Code or (b) any other change in the capital structure of the Company or in the Common Stock, then, if applicable, the number of Performance Share Units subject to the Award and, if applicable the number and class of underlying shares of stock, shall be adjusted to reflect such change. Any decision of the Committee regarding the amount and timing of any adjustment shall be final and conclusive.

(g)Compliance With Applicable Law. This Award is subject to the condition that if the listing, registration or qualification of any Common Stock to be issued in settlement of this Award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the vesting or delivery of shares of Common Stock hereunder, shares of Common Stock issued in settlement of this Award may not be delivered, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained.

The Company agrees to make every reasonable effort to effect or obtain any such listing, registration, qualification, consent or approval. By signing the Award Notification, however, Participant acknowledges and agrees that he or she is and remains responsible for any local compliance requirements or regulations in relation to the receipt, ownership and possible subsequent sale of the Company’s Common Stock. Participant also agrees that he or she is responsible for any local compliance requirements or regulations in relation to the opening and use of a U.S. brokerage account.

(h)Transfer Restrictions.Performance Share Units may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Any such attempted sale, transfer, assignment, pledge, hypothecation or encumbrance, or other disposition of any such Performance Share Units shall be null and void. Transfer of any shares of Common Stock received in respect of this Award shall be subject to the Company’s trading policies and any applicable securities laws or regulations governing transferability of shares of the Company.

(i)Withholding; Tax Matters.

(1)The Company may, and Participant hereby authorizes the Company to, charge Participant’s Account (or, to the extent permitted by law, to deduct from payments of any kind by the Company or its subsidiaries or affiliates to which Participant would otherwise be entitled, including without limitation, salary, bonus and other compensation) any federal, state or local taxes (including, without limitation, income taxes and Participant’s portion of any employment taxes) or other amounts determined by the Company up to the maximum respective statutory rates. In addition, the Company may retain a sufficient amount of cash or number of shares of Common Stock to be distributed to Participant determined by the Company to cover all such withholding. Notwithstanding the forgoing, in lieu of having such withholding deducted from other amounts due, Participant may direct the Company to reduce the number of earned Performance Share Units allocated to Participant’s Account or otherwise retain a sufficient amount of cash or numberof shares of Common Stock to be distributed to Participant to cover any or all such withholding. Alternatively, Participant may elect to remit to the Company by check an amount sufficient to satisfy the federal, state or local withholding tax requirements, prior to the delivery of cash or Common Stock pursuant to Section 3 hereof. Participant acknowledges that if Participant fails to provide the direction or the check described in the prior two sentences, the Company shall elect the manner in which any withholding shall be made in its sole discretion without any liability to Participant resulting from the option the Company selects or the timing under which the Company makes and carries out the election.

(2)To the extent the Participant is subject to liability under section 16(b) of the Securities and Exchange Act of 1934 on the date such Common Stock is issued to Participant if Participant were to sell such shares on that day and makes an election in a timely manner under Section 83(b) of the Code to recognize income for tax purposes, Participant shall notify the Compensation department within the Company’s Finance Department within thirty (30) days of making such election. Participant acknowledges that if Participant elects to make a Section 83(b) election, Participant shall be responsible for satisfying applicable IRS filing requirements with respect to such election.

(3)Participant understands and agrees that the Company makes no representations as to the tax consequences of the grant of Performance Share Units hereunder or the payment of cash or Common Stock with respect thereto (including, without limitation, under Section 409A of the Code, if applicable). Participant is solely responsible for any and all income, excise or other taxes imposed on Participant with respect to the Award.

(j)Award Confers No Rights To Continued Employment Or Future Awards.Nothing in the Plan or in this Agreement shall confer upon Participant any right to continue in the employ of the Company or any subsidiary or affiliate of the Company for a specified period of time or interfere with the right of the Company and its subsidiaries or affiliates to terminate such employment at any time. In addition, neither the Plan nor this Agreement confers any right upon Participant to receive future awards under the Plan. All future awards, if any, are completely at the discretion of the Company.

(k)Rights Nontransferable. Participant’s rights with respect to the Award are not transferable by Participant by means of sale, assignment, exchange, pledge, hypothecation, or otherwise.

(l)Clawback Provisions.

(1)Notwithstanding anything to the contrary in this Agreement, this Award is expressly made subject to the terms of the Legg Mason, Inc. Clawback Policy as adopted by the Committee. As a result, Participant may be required to forfeit his or her Award and return to the Company amounts or shares of Common Stock distributed with respect to his or her Award (or the value thereof), in the situations described below. Participant agrees that the Company may enforce the forfeiture by all legal means available, including, without limitation, by withholding the forfeited amount from other sums owed to Participant by the Firm. To the extent that Section 409A of the Code applies to any Award, the Company shall no exercise its rights under this Section in a manner that would operate to accelerate any payment or distribution in violation of Section 409A of the Code.

(2)In the event of a restatement of the Company’s financial results within three years of original reporting to correct a material error, then, if the Company’s Board of Directors determines that Participant’s acts or omissions were a significant contributing factor to the need to issue such restatement and that all or any portion of Participant’s Award, if the award was made prior to the restatement, would not have been awarded based upon the restated financial results, then Participant agrees to forfeit and return to the Company, to the extent permitted by applicable law, the portion (which may be all) of this Award or of the cash or shares of Common Stock distributed in respect of vested Performance Share Units or value thereof (regardless of whether vesting has occurred and cash or Common Stock distributed) that the Board of Directors, in its discretion, determines to be appropriate.

(3)In the event that, Participant’s employment is terminated by the Firm for a Clawback Event or (ii) following the termination of Participant’s employment,

the Company is or becomes aware that Participant committed an act that would have given rise to a termination for a Clawback Event, then, in either event, Participant agrees to forfeit to the Company, to the extent permitted by applicable law, the portion (which may be all) of this Award or of the cash or shares of Common Stock distributed in respect of vested Performance Share Units or value thereof (regardless of whether vesting has occurred and cash or Common Stock distributed), that Participant was awarded after the conduct or omission that gave rise to the Clawback Event and that the Board of Directors, in its discretion, determines to be appropriate.

(4)The Award (including cash or shares of Common Stock distributed in respect of vested Performance Share Units or value thereof) shall also be subject to forfeiture to the extent required by applicable law.

(m)Impact On Other Benefits.The value of (and any amount payable with respect to) the Performance Share Units shall not be includable as compensation or earnings for purposes of any other benefit plan offered by the Company. Moreover, any awards granted under the Plan are not part of Participant’s ordinary compensation, employment agreement, if any, or working relationship with the Company or any of its subsidiaries or affiliates and will therefore not be considered as part of such compensation, agreement or relationship in the event of severance, redundancy or resignation, unless otherwise required by applicable law.

5.MISCELLANEOUS PROVISIONS.

(a)Successors, Assignments and Transfers. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of Participant, acquire any rights hereunder. The rights and interests of Participant under this Agreement may not be sold, assigned, encumbered or otherwise transferred except in the event of death of Participant, by will or by the laws of descent and distribution. This Agreement may be assigned by the Company without Participant’s consent.

(b)Notices. All notices, requests or other communications provided for in this Agreement shall be made in writing either (i) by actual delivery to the party entitled thereto, or (ii) by mailing in the mails of the United States or, for Participants who reside in another country, of the other country to the address of the party entitled thereto as set forth below, via certified or registered mail, return receipt requested. The notice shall be deemed to be received in case of delivery, on the date of its actual receipt by the party entitled thereto, and in case of mailing, five days following the date of such mailing. Any notice mailed to the Company shall be addressed to the Deferred Compensation Administrator of the Company at 100 International Drive, Baltimore, Maryland 21202. Any notice mailed to Participant shall be addressed to Participant at Participant’s address as reflected in the personnel records of the Company. Either party hereto may designate a different address for notices than the one provided herein by notice to the other.

(c)Consent And Disclosure Regarding Use Of Personal Information.

(1)In connection with the grant of the Award, and any other award under the Plan, and the implementation and administration of the Plan, including, without limitation, Participant’s actual participation, or consideration by the Committee for potential future participation in the Plan at any time, it is or may become necessary for the

Firm to collect, transfer, use, and hold certain personal information regarding Participant in and/or outside of Participant’s home country. By accepting the Award, Participant explicitly consents (i) to the use of such information for the purpose of being considered for participation in future awards under the Plan (to the extent he/she is eligible under the Plan, and without any guarantee that any award shall be made); and (ii) to the use, transfer, processing and storage, electronically or otherwise, of his/her personal information, as such use has occurred to date, and as such use may occur in the future, in connection with this Award or any other award under the Plan, as further described below.

(2)Use, transfer, storage and processing of personal information, electronically or otherwise, may be in connection with the Company’s internal administration of the Plan, or in connection with tax or other governmental and regulatory compliance activities directly or indirectly related to the Award or any other award under the Plan. For such purposes only, personal information may be used by third parties retained by the Company to assist with the administration and compliance activities of the Plan, and may be transferred by the company that employs (or any company that has employed) Participant from Participant’s home country to other members of the Company and third parties located in the United States and in other countries. Specifically, those parties that may have access to Participant’s information for the purposes described herein include, but are not limited to, (i) human resources personnel responsible for administering the Plan; (ii) Participant’s U.S., regional and local employing entity and business unit management, including Participant’s supervisor and his/her superiors; (iii) the Committee or its designee, which is responsible for administering the Plan; (iv) the Company’s technology systems support team (but only to the extent necessary to maintain the proper operation of electronic information systems that support the Plan); and (v) internal and external legal, tax and accounting advisors (but only to the extent necessary for them to advise the Company on compliance and other issues affecting the awards under the Plan in their respective fields of expertise).

(3)At all times, Company personnel and third parties shall be obligated to maintain the confidentiality of Participant’s personal information except to the extent the Company is required to provide such information to governmental agencies or other parties. Such action shall always be undertaken only in accordance with applicable law. The personal information that the Company may collect, process, store and transfer for the purposes outlined above may include Participant’s name, nationality, citizenship, work authorization, date of birth, age, government/tax identification number, passport number, brokerage account information, or other internal identifying information, home address, work address, job and location history, compensation, business unit, employing entity, and Participant’s beneficiaries and contact information. Participant may obtain more details regarding the access and use of his/her personal information, and may correct or update such information, by contacting his/her human resources representative.

(d)Market Fluctuations. The Company is not responsible for any foreign exchange fluctuations between Participant’s local currency, if Participant is not located in the U.S., and the U.S. dollar nor is the Company responsible or liable for any decrease in the value of the Company’s Common Stock at any time, all of which shall be solely the risk and responsibility of Participant.

(e)Entire Agreement; Modification.The Agreement contains the entire agreement between the parties with respect to the subject matter contained herein and may not be modified, except as provided in the Plan or in a written document signed by each of the parties hereto.

(f)Code Section 162(m). This Agreement shall be subject to the restrictions set forth in Section 13 of the Plan.

(g)Conformity with Plan. This Agreement is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan, which is incorporated herein by reference. Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any ambiguity in the Agreement or any matters as to which the Agreement is silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to (i) interpret the Plan and Awards, (ii) prescribe, amend and rescind rules and regulations relating to the Plan, and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan. Participant acknowledges by electronically accepting the Award that he or she has reviewed a copy of the Plan.

(h)Conflict; Governing Law. In the event of a conflict between this Agreement and the Plan, the Plan shall control. This Agreement shall be governed by, and interpreted in accordance with, the internal laws of the State of New York(without regard to conflicts of laws rules thereof). It is the intent of this Agreement to comply with the requirements of Section 409A of the Code, and any ambiguities herein will be interpreted, and this Agreement will be administered, to so comply. If any payments or distributions hereunder constitute “nonqualified deferred compensation” subject to Section 409A of the Code, the term “termination of employment” and words of similar import shall have the same meaning as a Separation from Service. Each payment or distribution of such “nonqualified deferred compensation” shall be considered a separate payment for purposes of Section 409A.

(i)Counterparts. This Agreement may be executed in two or more counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

(j)Headings.Headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this agreement.

(k)Definitions. Unless otherwise defined herein, the following terms have the meanings set forth below.

“Account” means the bookkeeping account maintained for Participant pursuant to Section 1(b).

“Benchmark Group” means the following companies: Affiliated Managers Group; AllianceBernstein Holding L.P., Ameriprise Financial, Bank of New York Mellon Corporation, BlackRock, Inc., Eaton Vance Corporation, Federated Investors, Inc., Franklin Resources Inc., GAMCO Investors Inc., Invesco Ltd, Janus Capital Group, Inc., Northern Trust Corporation, State Street Corporation, T. Rowe Price Group, Inc., Waddell & Reed Financial Inc.; as such list of companies is modified pursuant to Section 2 of this Agreement.

“Cause” means any one or more of the following types of behavior by Participant which the Firm in its sole discretion finds to be sufficient reason to terminate Participant’s employment with the Firm: (i) any conduct (a) that constitutes Competitive Activity, (b) that breaches any obligation to the Firm or Participant’s duty of loyalty to the Firm, or (c) that is materially injurious to the Firm, monetarily or otherwise; (ii) material violation of, or an act taken by the failure to act which causes the Firm to be in violation of any government statue or regulation, or of the constitution, by-laws, rules or regulations of any securities or commodities exchange or a self-regulatory organization, or of the policies of the Firm; (iii) the entering of an order or decree or the taking of any similar action with respect to Participant which substantially impairs such Participant from performing his or her duties or makes him or her ineligible from being associated with the Company pursuant to Section 9 of the Investment Company Act of 1940, as amended, or Section 203(f) of the Investment Advisors Act of 1940, as amended; (iv) malfeasance, disloyalty or dishonesty in any material respect; (v) any conviction for a felony: (vi) any failure to devote all professional time to assigned duties and to the business of the Firm; (vii) failure to satisfactorily perform duties, as determined by the Firm’s management in its sole discretion, or gross misconduct or gross negligence in the performance of duties; or (viii) failure to remain licensed to perform duties or other act, conduct or circumstance which renders Participant ineligible for employment with the Firm.

“Change of Control” means any of the following events: (i) any person, including a “person” as such term is used in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended, acquires, directly or indirectly, beneficial ownership of securities representing 50.1% or more of the combined voting power of the outstanding equity securities of the Company; (ii) the closing of any merger, consolidation or other reorganization involving the Company with respect to which the stockholders of the Company immediately prior to such reorganization do not hold, directly or indirectly, more than 50% of the combined voting power of the outstanding equity securities of such successor entity immediately following such transaction; (iii) the closing of any transaction involving a sale of assets of the Company that have a total gross fair market value equal to or more than 90% of the total gross fair market value of all of the assets of the Company; (iv) the adoption of any plan or proposal for the liquidation or dissolution of the Company; or (v) within any 12-month period, individuals who, as of May 15, 2017, constitute the board of directors of the

Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of such board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Company’s board of directors shall be considered as though such individual were a member of the Incumbent Board.

An event described above shall constitute a Change in Control for purposes of the vesting provisions of Section 2(e), but shall not constitute a Change in Control for purposes of a distribution under Section 2(e) or 3, unless the event constitutes a change in control within the meaning of Section 409A(a)(2)(A)(v) of the Code or this Agreement is determined not to be subject to Code Section 409A. If an event described above does not constitute a change in control for purposes of Section 409A(a)(2)(A)(v) of the Code and this Agreement is determined to be subject to Code Section 409A, the distribution shall be made without regard to the Change in Control in accordance with the provisions of Section 3.

“Clawback Event” means (i) Participant’s gross negligence, willful misconduct or willful malfeasance in connection with the performance of his or her job that has materially and adversely affected the Firm’s reputation or business, (ii) Participant’s willful commission or participation in any violation of any law, rule or regulation applicable to the Firm (unless Participant had a reasonable good faith belief that the act, omission or failure to act in question was not a violation of such law, rule or regulation) and such violation has materially and adversely affected the Firm’s reputation or business or Participant’s ability to be associated with an investment company or an investment advisor, (iii) Participant’s theft, embezzlement or fraud in connection with the performance of his or her duties for the Firm, and (iv) Participant is convicted of, or plead guilty or nolo contendere to, a crime committed during the course of Participant’s employment with, and performance of duties on behalf of, the Firm that the Committee, acting in good faith, reasonably determines is likely to have a material and adverse effect on the reputation or business of Participant’s employer or the Company.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Compensation Committee of the Company’s Board of Directors or such committee or persons designated by that Compensation Committee to act on its behalf.

“Common Stock” means Legg Mason, Inc. common stock, par value $.10 per share.

“Competitive Activity” means Participant’s engagement in any activity that competes with any of the Firm’s business operations, as determined by the Committee, in its sole discretion, and shall include, without limitation, representing in any capacity, other than as an outside director, a company that competes with the Company and its subsidiaries or affiliates.

“Disability” means a medically determinable physical or mental impairment which qualifies Participant for total disability benefits under the Social Security Act; or which, in the opinion of the Committee (based upon such evidence as it deems satisfactory): (i) can

be expected to result in death or to last at least 12 months and (ii) will prevent Participant from performing his usual duties or any other similar duties available in the Firm’s employ.

“Distribution Date” means the applicable date under Section 3(a) on which distribution is to be made to a Participant (as determined without regard to any delay in the date of distribution required under Section 3(c) or 3(d)).

“Firm” means, except as otherwise provided under Section 409A of the Code and the regulations promulgated thereunder, the employing entity of any individual determined by the Committee to be a participant in the Plan and, if the employing entity of any Participant should change to another affiliate of the Company, such other affiliate. In the event the employing entity ceases to be an affiliate of the Company, the employing entity shall no longer be considered to be a Firm, and, for purposes of this agreement, the Participant shall be deemed to have terminated employment with the Firm as of such date.

“Fiscal Year” means the fiscal year of the Company, which is currently April 1 through March 31.

“Grant Date” means the “Grant Date” set forth in the Award Notification.

“Legg Mason Profit Sharing Plan” means the Legg Mason & Co., LLC Profit Sharing and 401(k) Plan and Trust, as such plan may be amended from time to time, or any successor to such plan.

“Performance Period” means a period of three consecutive Fiscal Years commencing on the first day of the Fiscal Year during which the Grant Date occurs; which period constitutes the performance period over which the Award is to be valued.

“Performance Share Unit”means a bookkeeping entry that represents the right to receive an amount of cash or Common Stock under the Plan pursuant to the terms and conditions of this Agreement, without transferring to Participant any of the attributes of ownership of Common Stock prior to the issuance of any Common Stock.

“Pro Rata Portion” means the amount determined by multiplying the number of Performance Share Units in the Award by a fraction, the numerator of which is the number of full, completed months in the Performance Period at the time of Participant’s Separation from Service due to death or Disability, or reduction in workforce under section 2(f), or Change of Control and the denominator of which is the total number of months in the Performance Period (36). The provisions of Section 2 apply to determine the payout amount in respect of each Performance Share Unit included in a Pro Rata Portion.

“Retirement” means termination of Participant's employment with the Firm after the Grant Date, with the approval of the Committee, pursuant to Section 7.1 (or any successor retirement provision) of the Legg Mason Profit Sharing Plan, provided that such termination of employment is without Cause.

“Separation from Service” means a separation from service within the meaning of Section 409A(a)(2)(A)(i) of the Code and the regulations issued thereunder.

“Specified Employee” means a specified employee within the meaning of Section 409A (a)(2)(B)(i) of the Code.

“Target Payout Amount” means the number of Shares equal to 100% of the number of Performance Share Units based on the Company achieving the TSR Ranking at the end of the Performance Period set forth in Section 2 required for payment of Shares equal to 100% of the Award.

“TSR” or “Total Shareholder Return” means, with respect to a company, (i) the change in the price of one share of common stock (or other comparable equity unit) of such company during the Performance Period plus dividends paid on such share of stock during the Performance Period divided by (ii) the price of such share of stock at the beginning of the Performance Period. For this purpose, the change in the price of a share of stock shall be equal to the price of such share of such stock on the last day of a Performance Period (or the previous trading day if the last day is not a trading day) minus the price of such share of stock on the trading day occurring immediately

prior the first day of a Performance Period. The price of a share of stock shall be based on the average of the closing prices for such stock on each of the immediately preceding twenty (20) trading days as reported by the primary exchange on which the stock is listed or quoted. Dividends shall mean the aggregate dollar value of all dividends paid on one share of stock during the Performance Period. In addition, dividends shall be treated as though they were reinvested to purchase additional shares of such stock. In the event of a stock split, stock dividend or similar transaction, TSR shall be appropriately adjusted.

“TSR Ranking” means the TSR ranking of the Firm relative to the Benchmark Group, and is calculated as set forth in Section 2(b) of this Agreement.

IN WITNESS WHEREOF, the Company and Participant have caused this Agreement to be executed on the date noted below.

LEGG MASON, INC.

By: ______________________

Name: Thomas C. Merchant

Title: Secretary

United Kingdom Supplemental Disclosure

This offer is being made to selected employees as part of an employee incentive programme in order to provide an additional incentive and to encourage employee share ownership and to increase your interest in the success of Legg Mason, Inc. The company offering these rights is Legg Mason, Inc. The shares which are the subject of these rights are new shares in Legg Mason, Inc. More information in relation to Legg Mason, Inc. including the share price can be found at the following web address: www.leggmason.com.

The obligation to publish a prospectus does not apply because of Article 4(1)(e) of the EU Prospectus The obligation to publish a prospectus does not apply because of Article 4(1)(e) of the EU Prospectus Directive, in particular, the number of local addressees of the offer is below 150. The total maximum number of shares which are the subject of the offer under the Plan is 41,500,000 shares of common stock of Legg Mason, Inc., $.10 Par Value

EX-12

Exhibit 12

LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
	Three months ended		Years ended March 31,
	June 30, 2017		2017			2016(3)			2015			2014			2013(3)
Earnings (loss) from operations before income tax provision (benefit)	$	91,792	$	370,878		$	(25,218	)	$	367,993		$	419,641		$	(510,607	)
Fixed Charges:
Interest Expense	29,266		112,993			53,288			56,782			53,492			57,903
Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision (benefit)(1)	—		180			(4,825		)	1,492			(581		)	5,016
Portion of rental expenses representative of interest factor(2)	9,898		39,590			38,232			38,914			38,197			41,246
Earnings (loss) available for fixed charges	$	130,956	$	523,641		$	61,477		$	465,181		$	510,749		$	(406,442	)
Fixed Charges:
Interest Expense	$	29,266	$	113,173		$	48,463		$	58,274		$	52,911		$	62,919
Interest included in interest expense not related to third party indebtedness(1)	—		(180		)	4,825			(1,492		)	581			(5,016		)
Portion of rental expense representative of interest factor(2)	9,898		39,590			38,232			38,914			38,197			41,246
Total Fixed Charges	$	39,164	$	152,583		$	91,520		$	95,696		$	91,689		$	99,149
Consolidated ratio of earnings (loss) to fixed charges	3.3		3.4			0.7			4.9			5.6			(4.1		)

(1) The portion of interest related to uncertain tax positions is excluded from the calculation.

(2) The portion of rental expense representative of interest factor is calculated as one third of the total of Rent, Market Data Services, Maintenance, DP Service Bureau and Equipment Rental expenses.

(3) Earnings were inadequate to cover fixed charges for the years ended March 31, 2016 and 2013 by $30,043 and $505,591, respectively.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Joseph A. Sullivan, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2017 of Legg Mason, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2017	/s/ Joseph A. Sullivan
		Joseph A. Sullivan Chairman, President, and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Peter H. Nachtwey, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2017 of Legg Mason, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2017	/s/ Peter H. Nachtwey
		Peter H. Nachtwey Senior Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Legg Mason, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission (the “Report”), I, Joseph A. Sullivan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Joseph A. Sullivan

Joseph A. Sullivan

Chairman, President, and Chief Executive Officer

August 4, 2017

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Legg Mason, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2017 as filed with the Securities and Exchange Commission (the “Report”), I, Peter H. Nachtwey, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Peter H. Nachtwey

Peter H. Nachtwey

Senior Executive Vice President

and Chief Financial Officer

August 4, 2017

XML

Cover Page Statement - shares	3 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document Information [Abstract]
Entity Registrant Name	LEGG MASON, INC.
Entity Central Index Key	0000704051
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		93,599,404
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	LM
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2017	Mar. 31, 2017
Common Stock, Par or Stated Value Per Share		$ 0.10	$ 0.10
Receivables:
Fixed assets, net		$ 156,008	$ 159,662
Current Liabilities
REDEEMABLE NONCONTROLLING INTERESTS		$ 684,203	$ 677,772
STOCKHOLDERS' EQUITY
Common Stock, Shares Authorized		500,000,000	500,000,000
Common Stock, Shares, Issued		94,119,547	107,011,664
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Current Assets
Cash and Cash Equivalents		$ 491,301	$ 733,709
Receivables:
Investment securities	[1]	394,960	423,619
Other current assets		74,942	74,102
Current Liabilities
Other current liabilities		89,573	117,863
Consolidated Investment Vehicles [Member]
Current Assets
Cash and Cash Equivalents		679	651
Receivables:
Investment securities		81,401	49,901
Other current assets		2,266	0
Other non-current assets		9,968	9,987
Current Liabilities
Other current liabilities		1,750	736
Consolidated Legg Mason, Inc.
Current Assets
Restricted cash		15,152	16,046
Receivables:
Investment advisory and related fees		480,269	433,192
Other receivables		64,631	70,527
Total Current Assets		1,605,601	1,801,747
Fixed assets, net		156,008	159,662
Intangible assets, net		3,999,526	4,034,380
Goodwill		1,924,211	1,924,889
Deferred income taxes		202,823	202,843
Other non-current assets		156,292	156,907
TOTAL ASSETS		8,054,429	8,290,415
Current Liabilities
Accrued compensation		285,320	486,679
Accounts Payable and Accrued Liabilities, Current		194,755	181,793
Business Combination, Contingent Consideration, Liability, Current		14,986	22,316
Total Current Liabilities		586,384	809,387
Deferred compensation		103,624	87,757
Deferred income taxes		320,113	329,229
Business Combination, Contingent Consideration, Liability, Noncurrent		5,711	14,494
Other non-current liabilities		137,768	138,737
Long-term Debt		2,221,853	2,221,867
TOTAL LIABILITIES		3,375,453	3,601,471
REDEEMABLE NONCONTROLLING INTERESTS		684,203	677,772
STOCKHOLDERS' EQUITY
Common stock, par value $.10; authorized 500,000,000 shares; issued 107,700,310 shares in December 2015 and 111,469,142 shares in March 2015		9,412	9,573
Additional paid-in capital		2,311,752	2,385,726
Employee stock trust		(24,122)	(24,057)
Deferred compensation employee stock trust		24,122	24,057
Retained earnings		1,741,362	1,694,859
AOCI Including Portion Attributable to Noncontrolling Interest, before Tax		(95,994)	(106,784)
TOTAL STOCKHOLDERS' EQUITY		3,994,773	4,011,172
Stockholders' Equity Attributable to Parent		3,966,532	3,983,374
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		8,054,429	8,290,415
Management Equity Plan [Member] | Royce [Member]
STOCKHOLDERS' EQUITY
Stockholders' Equity Attributable to Noncontrolling Interest	[2]	$ 28,241	$ 27,798

[1] Excludes $36,026 and $28,300 of seed capital as of June 30, 2017, and March 31, 2017, respectively, which is related to Legg Mason's investments in CIVs. See Note 13.

[2] (2) Related to Royce management equity plan.

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OTHER NON-OPERATING INCOME (EXPENSE)
Net Income (Loss) Attributable to Noncontrolling Interest	$ 12,617	$ 11,888
Consolidated Legg Mason, Inc.
OPERATING REVENUES
Distribution and service fees	78,906	91,382
Other	1,125	1,008
Revenues	793,842	700,165
OPERATING EXPENSES
Compensation and benefits	413,307	358,625
Distribution and servicing	122,349	124,663
Communications and technology	50,303	52,732
Occupancy	24,408	33,142
Amortization of intangible assets	6,339	5,703
Impairment of Intangible Assets	34,000	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	34,000	0
Contingent consideration fair value adjustments	(16,550)	(18,000)
Other	52,481	69,745
Total Operating Expenses	686,637	626,610
OPERATING INCOME	107,205	73,555
OTHER NON-OPERATING INCOME (EXPENSE)
Interest income	1,468	1,848
Interest expense	(29,266)	(24,565)
Other income (expense), net	11,388	6,585
Total Other Non-Operating Income (Expense)	(15,413)	(12,904)
INCOME BEFORE INCOME TAX PROVISION	91,792	60,651
Income tax provision	28,255	15,311
NET INCOME	63,537	45,340
Net Income (Loss) Attributable to Noncontrolling Interest	12,617	11,888
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$ 50,920	$ 33,452
NET INCOME PER SHARE ATTRIBUTABLE TO LEGG MASON, INC. COMMON SHAREHOLDERS
Basic (in dollars per share)	$ 0.52	$ 0.31
Diluted (in dollars per share)	0.52	0.31
Common Stock, Dividends, Per Share, Declared	$ 0.28	$ 0.22
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
OTHER NON-OPERATING INCOME (EXPENSE)
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$ 50,920	$ 33,452
Consolidated Investment Vehicles [Member]
OTHER NON-OPERATING INCOME (EXPENSE)
Other income (expense), net	997	3,228
Separate Accounts [Member] | Consolidated Legg Mason, Inc.
OPERATING REVENUES
Investment Advisory Fees	250,046	226,853
Mutual Funds [Member] | Consolidated Legg Mason, Inc.
OPERATING REVENUES
Investment Advisory Fees	382,228	363,463
Performance Fees [Member] | Consolidated Legg Mason, Inc.
OPERATING REVENUES
Investment Advisory Fees	$ 81,537	$ 17,459

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016
Other comprehensive income (loss):
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	$ 119
Consolidated Legg Mason, Inc.
NET INCOME	63,537	$ 45,340
Other comprehensive income (loss):
Foreign currency translation adjustment	10,671	(16,183)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	0	(3,007)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	1,708	0	$ 0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0	324
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	1,708	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	0	(2,683)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	0	0	3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	0	(3)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax	0	(6,112)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	119	0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax	119	(6,112)
Total other comprehensive income (loss)	10,790	(24,978)
COMPREHENSIVE INCOME	74,327	20,362
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest	12,284	13,886
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Other comprehensive income (loss):
COMPREHENSIVE INCOME ATTRIBUTABLE TO LEGG MASON, INC.	62,043	6,476
AOCI Attributable to Parent [Member] | Consolidated Legg Mason, Inc.
Other comprehensive income (loss):
Foreign currency translation adjustment	10,671
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax	119	$ (6,112)
Treasury Lock [Member] | Consolidated Legg Mason, Inc.
Other comprehensive income (loss):
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	0		(233)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	$ 0		$ (233)

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total	Consolidated Legg Mason, Inc.	Consolidated Legg Mason, Inc. COMMON STOCK	Consolidated Legg Mason, Inc. ADDITIONAL PAID-IN CAPITAL	Consolidated Legg Mason, Inc. EMPLOYEE STOCK TRUST	Consolidated Legg Mason, Inc. DEFERRED COMPENSATION EMPLOYEE STOCK TRUST	Consolidated Legg Mason, Inc. RETAINED EARNINGS	Consolidated Legg Mason, Inc. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET	Royce [Member]	Clarion Partners [Member]	Clarion Partners [Member] Consolidated Legg Mason, Inc. ADDITIONAL PAID-IN CAPITAL	EnTrust Capital [Member] Consolidated Legg Mason, Inc. RETAINED EARNINGS	Management Equity Plan [Member] Consolidated Legg Mason, Inc. RETAINED EARNINGS	Management Equity Plan [Member] Royce [Member]
Stockholders' Equity Attributable to Parent				$ 10,701	$ 2,693,113	$ (26,263)	$ 26,263	$ 1,576,242	$ (66,493)
Stockholders' Equity Attributable to Noncontrolling Interest	[1]														$ 22,202
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest										$ 1,851					1,851
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		$ (1,504)	$ 2,306												(802)	[1]
Stock options exercised				7	1,803
Deferred compensation employee stock trust				1	122
Stock-based compensation				34	25,860						$ 11,121	$ 11,121
Employee tax withholdings by settlement of net share transactions		(11,661)		(36)	(11,625)
Shares repurchased and retired		(111,673)		(347)	(111,326)
APIC reclassified for MEP vesting					(3,632)
Shares Issued to plans						(123)	123
Distributions and forfeitures						760	(760)
Net Income Attributable to Legg Mason, Inc.			33,452					33,452
Dividends declared								(23,581)
RE Reclassified for MEP Amortization		4,251						(619)
Excess Tax Benefit from Share-based Compensation, Financing Activities								0
Reclassification from Retained Earnings to Noncontrolling Interests													$ (15,500)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax			(6,112)						(6,112)
Foreign currency translation adjustment			(16,183)
Ending Balance at Jun. 30, 2016			4,117,570
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)									(2,683)
Stockholders' Equity Attributable to Parent			4,094,319	10,360	2,605,436	(25,626)	25,626	1,569,994	(91,471)
Stockholders' Equity Attributable to Noncontrolling Interest	[1]														23,251
Stockholders' Equity Attributable to Parent			3,983,374	9,573	2,385,726	(24,057)	24,057	1,694,859	(106,784)
Stockholders' Equity Attributable to Noncontrolling Interest	[1]														27,798
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest										$ 2,261					2,261
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(15,913)	17,731												(1,818)	[1]
Beginning Balance at Mar. 31, 2017			4,011,172
Stock options exercised				26	7,380
Deferred compensation employee stock trust				1	125
Stock-based compensation				83	20,710							$ 0
Employee tax withholdings by settlement of net share transactions		(12,811)		(34)	(12,777)
Shares repurchased and retired		(89,649)		(237)	(89,412)
APIC reclassified for MEP vesting					0
Shares Issued to plans						(126)	126
Distributions and forfeitures						61	(61)
Net Income Attributable to Legg Mason, Inc.			50,920					50,920
Dividends declared								(27,352)
RE Reclassified for MEP Amortization		$ 1,389
Excess Tax Benefit from Share-based Compensation, Financing Activities								24,327
Reclassification from Retained Earnings to Noncontrolling Interests													$ 0	$ (1,392)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax			0						119
Foreign currency translation adjustment			10,671						10,671
Ending Balance at Jun. 30, 2017			3,994,773
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)									0
Stockholders' Equity Attributable to Parent			$ 3,966,532	$ 9,412	$ 2,311,752	$ (24,122)	$ 24,122	$ 1,741,362	$ (95,994)
Stockholders' Equity Attributable to Noncontrolling Interest	[1]														$ 28,241

[1] (2) Related to Royce management equity plan.

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM FINANCING ACTIVITIES
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		$ (15,913)	$ (1,504)
Proceeds from (Payments to) Noncontrolling Interests		10,266	21,371
Consolidated Legg Mason, Inc.
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		63,537	45,340
Adjustments to reconcile Net Income to net cash used in operations:
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		34,000	0
Depreciation and amortization		18,473	20,918
Accretion and amortization of securities discounts and premiums, net		936	659
Stock-based compensation		21,068	37,471
Deferred income taxes		22,183	16,093
Contingent consideration fair value adjustments		(16,550)	(18,000)
Other		(76)	1,419
Decrease (increase) in assets:
Investment advisory and related fees receivable		(46,340)	4,564
Net (purchases) sales of trading and other current investments		41,370	16,392
Other receivables		(9,778)	(8,930)
Increase (decrease) in liabilities:
Accrued compensation		(201,486)	(236,848)
Deferred compensation		15,718	20,076
Accounts payable and accrued expenses		12,378	17,145
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(113,580)	(165,970)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for fixed assets		(8,371)	(11,971)
Business acquisitions, net of cash acquired of $29,830		0	(997,933)
Proceeds from Sales of Assets, Investing Activities		2,561	0
Change in restricted cash		1,117	1,088
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(4,493)	(1,007,816)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for stock-based compensation		7,532	1,933
Employee Tax Withholdings by settlement of net share transaction		(12,811)	(11,661)
Repurchase of common stock		(89,649)	(111,673)
Dividends paid		(21,153)	(21,878)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		17,731	2,306
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(123,546)	334,980
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Income Taxes Paid, Net		8,132	5,483
Adjustments to reconcile Net Income to net cash used in operations:
Unrealized Gain (Loss) on Investments		(5,496)	(3,107)
Net (gains) losses on investments		(5,546)	(2,568)
Decrease (increase) in assets:
Other assets		(1,330)	3,685
Increase (decrease) in liabilities:
Other liabilities		(23,855)	(38,509)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash Acquired		33,543
Proceeds from sales and maturities of investment securities		200	1,000
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Lines of Credit		0	460,000
Debt issuance costs		0	(806)
EFFECT OF EXCHANGE RATES ON CASH		(789)	368
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(242,408)	(838,438)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		733,709	1,329,126
CASH AND CASH EQUIVALENTS AT END OF YEAR		491,301	490,688
Interest Paid		11,094	5,842
Proceeds from Income Tax Refunds		(1,903)	0
Consolidated Investment Vehicles [Member]
Adjustments to reconcile Net Income to net cash used in operations:
Net (gains) losses on investments		(997)	(3,199)
Decrease (increase) in assets:
Other assets		(32,803)	(40,705)
Increase (decrease) in liabilities:
Other liabilities		1,014	2,134
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (Payments to) Noncontrolling Interests		10,266	21,371
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		651
CASH AND CASH EQUIVALENTS AT END OF YEAR		679
Change in Input Assumptions [Member] | Consolidated Legg Mason, Inc.
Adjustments to reconcile Net Income to net cash used in operations:
Contingent consideration fair value adjustments		(16,550)	(18,000)
Consolidated Investment Vehicles [Member]
CASH FLOWS FROM FINANCING ACTIVITIES
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		0	0
Proceeds from (Payments to) Noncontrolling Interests	[1],[2]	$ 10,266	18,767
Management Equity Plan [Member] | Clarion Partners [Member]
Adjustments to reconcile Net Income to net cash used in operations:
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense			$ 15,200

[1] (1) Principally related to VIE and seeded investment products.

[2] (3) Includes the impact related to the adoption of updated consolidation accounting guidance.

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Interim Basis of Reporting (Notes)

3 Months Ended

Jun. 30, 2017

Quarterly Financial Information Disclosure [Abstract]

Business Description and Basis of Presentation [Text Block]

1. Interim Basis of Reporting

The accompanying unaudited interim consolidated financial statements of Legg Mason, Inc. and its subsidiaries (collectively “Legg Mason”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"). The interim consolidated financial statements have been prepared using the interim basis of reporting and, as such, reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. The preparation of interim consolidated financial statements requires management to make assumptions and estimates that affect the amounts reported in the interim consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates and the differences could have a material impact on the interim consolidated financial statements. Terms such as “we,” “us,” “our,” and “Company” refer to Legg Mason.

The nature of Legg Mason's business is such that the results of any interim period are not necessarily indicative of the results of a full year. Certain disclosures included in the Company's annual report are not required to be included on an interim basis in the Company's quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation, including amounts for cash flows, comprehensive income, and changes in equity.

The information contained in the interim consolidated financial statements should be read in conjunction with Legg Mason's latest Annual Report on Form 10-K filed with the SEC.

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Significant Accounting Policies

3 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Consolidation

In the normal course of its business, Legg Mason sponsors and manages various types of investment products. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinated management fees or other incentive fees. Legg Mason's exposure to risk in these entities is generally limited to any equity investment it has made or is required to make, and any earned but uncollected management fees. Legg Mason did not sell or transfer investment assets to any of these investment products. In accordance with financial accounting standards, Legg Mason consolidates certain sponsored investment products, some of which are designated and reported as consolidated investment vehicles (“CIVs”). The consolidation of sponsored investment products, including those designated as CIVs, has no impact on Net Income Attributable to Legg Mason, Inc. and does not have a material impact on Legg Mason's consolidated operating results. The change in the value of all consolidated sponsored investment products is recorded in Non-Operating Income (Expense) and reflected in Net income attributable to noncontrolling interests.

Certain of the investment products Legg Mason sponsors and manages are considered to be variable interest entities ("VIEs") (as further described below) while others are considered to be voting rights entities (“VREs”) subject to traditional consolidation concepts based on ownership rights. Legg Mason may fund the initial cash investment in certain VRE investment products to generate an investment performance track record in order to attract third-party investors in the product. Legg Mason's initial investment in a new product typically represents 100% of the ownership in that product. As further discussed below, the products with “seed capital investments” are consolidated as long as Legg Mason maintains a controlling financial interest in the product, but they are not designated as CIVs by Legg Mason unless the investment is longer-term. As of June 30, 2017, March 31, 2017, and June 30, 2016, no consolidated VREs were designated as CIVs.

A VIE is an entity which does not have adequate equity to finance its activities without additional subordinated financial support; or the equity investors, as a group, do not have the normal characteristics of equity investors for a potential controlling financial interest. Legg Mason must consolidate any VIE for which it is deemed to be the primary beneficiary.

Under consolidation accounting guidance, if limited partners or similar equity holders in a sponsored investment vehicle structured as a limited partnership or a similar entity do not have either substantive kick-out or substantive participation rights over the general partner, the entities are VIEs. As a sponsor and manager of an investment vehicle, Legg Mason may be deemed a decision maker under the accounting guidance. If the fees paid to a decision maker are market-based, such fees are not considered variable interests in a VIE. Market-based fees are those fees which are both customary and commensurate with the level of effort required for the services provided. Additionally, if employee interests in a sponsored investment vehicle are not made to circumvent the consolidation guidance and are not financed by the sponsor, they are not included in the variable interests assessment, and are not included in the primary beneficiary determination.

A decision maker is deemed to be a primary beneficiary of a VIE if it has the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or receive benefits from variable interests that could be significant to the VIE. In determining whether it is the primary beneficiary of a VIE, Legg Mason considers both qualitative and quantitative factors such as the voting rights of the equity holders, guarantees, and implied relationships. If a fee paid to a decision maker is not market-based, it will be considered in the primary beneficiary determination.

Legg Mason concluded it was the primary beneficiary of three foreign mutual fund VIEs as of each June 30, 2017 and March 31, 2017, and of nine foreign mutual fund VIEs as of June 30, 2016, which were consolidated and designated as CIVs, because it held significant financial interests in these funds. Legg Mason also concluded it was the primary beneficiary of two sponsored investment fund VIEs, and one employee-owned fund that it sponsors, as of each June 30, 2017, March 31, 2017, and June 30, 2016, which were also consolidated and designated as CIVs.

On June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one sponsored exchange traded fund ("ETF") which resulted in investments in the ETF by those intermediaries in the amount of $20,253, as further described in Note 12. Under the terms of the total return swaps, Legg Mason absorbs all gains and losses on the underlying ETF investments of these financial intermediaries, and therefore has variable interests in the fund, and is deemed to be the primary beneficiary. As such, the underlying sponsored investment fund was consolidated and designated a CIV during the three months ended June 30, 2017.

See Notes 4 and 13 for additional information related to VIEs and CIVs.

Contingent Consideration Liabilities

In connection with business acquisitions, Legg Mason may be required to pay additional future consideration based on the achievement of certain designated financial metrics. Legg Mason estimates the fair value of these potential future obligations at the time a business combination is consummated and records a Contingent consideration liability in the Consolidated Balance Sheet.

Legg Mason accretes contingent consideration liabilities to the expected payment amounts over the related earn-out terms until the obligations are ultimately paid, resulting in Interest expense in the Consolidated Statements of Income. If the expected payment amounts subsequently change, the contingent consideration liabilities are (reduced) or increased in the current period, resulting in a (gain) or loss, which is reflected within Contingent consideration fair value adjustments in the Consolidated Statements of Income. See Notes 3 and 9 for additional information regarding contingent consideration liabilities.

Noncontrolling Interests

Noncontrolling interests include affiliate minority interests, third-party investor equity in consolidated sponsored investment products, and vested affiliate management equity plan interests. For CIVs and other consolidated sponsored investment products with third-party investors, the related noncontrolling interests are classified as redeemable noncontrolling interests if investors in these funds may request withdrawals at any time. Also included in redeemable noncontrolling interests are vested affiliate management equity plan and affiliate minority interests for which the holder may, at some point, request settlement of their interests. Redeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their estimated settlement values. Changes in the expected settlement values are recognized over the settlement period as adjustments to retained earnings. Nonredeemable noncontrolling interests include vested affiliate management equity plan interests that do not permit the holder to request settlement of their interests. Nonredeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their issuance value, together with undistributed net income allocated to noncontrolling interests.

Legg Mason estimates the settlement value of noncontrolling interests as their fair value. For consolidated sponsored investment products, where the investor may request withdrawal at any time, fair value is based on market quotes of the underlying securities held by the investment products. For affiliate minority interests and management equity plan interests, fair value reflects the related total business enterprise value, after appropriate discounts for lack of marketability and control.

There may also be features of these equity interests, such as dividend subordination, that are contemplated in their valuations. The fair value of option-like management equity plan interests also relies on Black-Scholes option pricing model calculations.

Net income attributable to noncontrolling interests in the Consolidated Statements of Income includes the share of net income of the respective subsidiary allocated to the minority interest holders.

See Note 11 for additional information regarding noncontrolling interests.

Derivative Instruments

As noted above, on June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one Legg Mason sponsored ETF for a total notional amount of $20,253 which resulted in investments in the ETF by these intermediaries. The total return swap arrangements qualify as derivative instruments and are not designated for hedge accounting. In connection with the arrangements, Legg Mason also executed a futures contract to partially hedge the market risk related to the total return swap arrangements. See Notes 4, 12, and 13 for additional information.

Stock-Based Compensation

Effective April 1, 2017, Legg Mason adopted updated accounting guidance on stock-based compensation accounting. The updated guidance simplifies several aspects of accounting for stock-based compensation including the income tax consequences, and clarifies classification criteria for awards as either equity or liabilities, and the classification of related amounts in statements of cash flows. The updated guidance requires all excess tax benefits and deficiencies associated with stock-based compensation to be recognized as discrete items in the Income tax provision in the Consolidated Statements of Income in the reporting period in which they occur, thereby increasing the volatility of the Income tax provision as a result of fluctuations in Legg Mason's stock price. Legg Mason adopted this amendment on a modified retrospective basis, and recorded a cumulative-effect adjustment of $24,327 as an increase to both deferred tax assets and Retained earnings on the Consolidated Balance Sheet as of April 1, 2017. These tax benefits were not previously recognized due to Legg Mason's cumulative tax loss position. In addition, Legg Mason recorded a related discrete Income tax expense of $906 during the three months ended June 30, 2017, for vested stock awards with a grant date exercise price higher than the related vesting date stock price, as this aspect of the guidance was adopted on a prospective basis. Upon adoption of the updated guidance, Legg Mason elected to prospectively account for forfeitures as they occur, which did not have a material impact on the Consolidated Financial Statements. Also, cash flows related to income tax deductions in excess of or less than the related stock-based compensation expense will be classified as Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows.

Accumulated Other Comprehensive Loss, Net

There were no significant amounts reclassified from Accumulated other comprehensive loss, net, to the Consolidated Statements of Income, except as follows. During the three months ended June 30, 2017, $119 of previously unrecognized losses on a defined benefit pension plan were reclassified and expensed as further described in Note 3, and during the three months ended June 30, 2016, $527 realized on the settlement of an interest rate swap was reclassified and expensed, as further described in Note 7.

Income Taxes

Noncontrolling interests in EnTrustPermal Group Holdings, LLC ("EnTrustPermal"), Clarion Partners, LLC ("Clarion Partners") and Royce & Associates ("Royce") are structured as partnerships that pass related tax attributes to the related noncontrolling interest holders. As such, the consolidated financial statements do not generally include any tax provision/benefit associated with the net income allocated to these noncontrolling interests, which caused the effective tax rate to be reduced by 3.5 percentage points and 4.8 percentage points for the three months ended June 30, 2017 and 2016, respectively.

In connection with the adoption of updated accounting guidance on stock-based compensation accounting discussed above, Legg Mason recorded a discrete income tax expense of approximately $906 during the three months ended June 30, 2017, which increased the effective tax rate by 1.0 percentage point.

Recent Accounting Developments

In February 2016, the Financial Accounting Standards Board ("FASB") updated the guidance on accounting for leases. The updated guidance requires that a lessee shall recognize the assets and liabilities that arise from lease transactions. A lessee will recognize a right-of-use asset to use the underlying asset and a liability representing the lease payments. The updated guidance also requires an evaluation at the inception of a service or other contract, to determine whether the contract is or contains a lease. The guidance will be effective for Legg Mason in fiscal 2020. Legg Mason expects to recognize right of use assets and liabilities upon its adoption of the new standard and is continuing to evaluate the full impact of its adoption.

In May 2014, the FASB updated the guidance on revenue recognition. The updated guidance provides a single, comprehensive revenue recognition model for all contracts with customers, improves comparability and removes inconsistencies in revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance also requires comprehensive disclosures about the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments made in applying the guidance. In March 2016, the FASB further updated the revenue guidance on determining whether to report revenue on a gross versus net basis. The updated guidance clarifies how entities evaluate principal versus agent aspects of the revenue recognition guidance issued in May 2014. The evaluation will require entities to identify all goods or services to be provided to the customer, and determine whether they obtain control of the good or service before it is transferred to the customer, where control would suggest a principal relationship, which would be accounted for on a gross basis. Legg Mason is currently reviewing its revenue contracts, and monitoring relevant implementation guidance. Legg Mason does not anticipate any significant changes to current revenue recognition practices, except as discussed below. Legg Mason may be required to recognize longer-term performance and incentive fees subject to clawback when clawback is not reasonably possible, which is earlier than under its current revenue recognition process, which defers recognition until all contingencies are resolved. Additionally, Legg Mason is evaluating whether certain separate account commissions currently expensed when paid meet the criteria for capitalization and amortization. Legg Mason is also evaluating whether revenue-related costs currently presented on a gross basis will be recorded net, or vice versa. The evaluation of the effect of this guidance is ongoing, and Legg Mason has not determined the ultimate impact of the adoption or the transition method to be used upon adoption, which is effective for Legg Mason on April 1, 2018.

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Acquisitions

3 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

3. Acquisitions

Acquisitions

The following table presents a summary of the acquisition-date fair values of the assets acquired and liabilities assumed for each of Legg Mason's significant recent acquisitions:

	EnTrust Capital				Clarion Partners			RARE Infrastructure Limited			Martin Currie (Holdings) Limited			QS Investors Holdings, LLC
Acquisition Date	May 2, 2016				April 13, 2016			October 21, 2015			October 1, 2014			May 31,  2014
Purchase price
Cash	$	400,000			$	631,476		$	213,739		$	202,577		$	11,000
Estimated contingent consideration	—				—			25,000			75,211			13,370
Performance-based Legg Mason restricted share units	—				11,121			—			—			—
Minority equity interest transferred	140,000			(1)	—			—			—			—
Total consideration	540,000				642,597			238,739			277,788			24,370
Fair value of noncontrolling interests	247,700			(1)	105,300			62,722			—			—
Total	787,700				747,897			301,461			277,788			24,370
Identifiable assets and liabilities
Cash	8,236				25,307			9,667			29,389			441
Investments	16,220				22,285			—			—			3,281
Receivables	20,820				53,657			6,612			—			2,699
Indefinite-life intangible fund management contracts	262,300				505,200			122,755			135,321			—
Indefinite-life trade name	7,400				23,100			4,766			7,130			—
Amortizable intangible asset management contracts	65,500				102,800			67,877			15,234			7,060
Fixed assets	4,479				8,255			673			784			599
Other current assets (liabilities), net	1,030				(25,585		)	(10,605		)	—			—
Liabilities, net	(8,823		)		(10,579		)	(3,948		)	(4,388		)	(6,620		)
Pension liability	—				—			—			(32,433		)	—
Deferred tax liabilities	—				(36,788		)	(58,619		)	(31,537		)	—
Total identifiable assets and liabilities	377,162				667,652			139,178			119,500			7,460
Goodwill	$	410,538			$	80,245		$	162,283		$	158,288		$	16,910

(1) Post combination EnTrustPermal noncontrolling interest of $403,200 also includes a fair value reclassification of $15,500 from retained earnings.

EnTrust Capital

On May 2, 2016, Legg Mason acquired EnTrust Capital ("EnTrust") and combined it with The Permal Group, Ltd. ("Permal"), Legg Mason's existing hedge fund platform, to form EnTrustPermal. EnTrust, an alternative asset management firm headquartered in New York, had $9,600,000 in assets under management ("AUM") and approximately $2,000,000 in assets under advisement and committed capital at closing, and largely complementary investment strategies, investor base, and business mix to Permal. The transaction included a cash payment of $400,000, which was funded with borrowings under Legg Mason's revolving credit facility, as well as a portion of the proceeds from the issuance of $450,000 of 4.75% Senior Notes due 2026 (the "2026 Notes") and $250,000 of 6.375% Junior Subordinated Notes due 2056 (the "6.375% 2056 Notes") in March 2016. As a result of the combination, Legg Mason owns 65% of the new entity, EnTrustPermal, with the remaining 35% owned by EnTrust's co-founder and managing partner. The noncontrolling interests can be put by the holder or called by Legg Mason for settlement at fair value subject to various conditions, including the passage of time. The fair value of the noncontrolling interests in the Consolidated Balance Sheet reflects the total business enterprise value of the combined entity, after appropriate discounts for lack of marketability and control.

The fair value of the acquired amortizable intangible asset management contracts had a useful life of approximately eight years at acquisition. Purchase price allocated to intangible assets and goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with EnTrust.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	(1)% to 5% (weighted-average: 4%)	14.5%
Indefinite-life trade name	6% to 14% (weighted-average: 6%)	14.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	10% / (13)%	13.5%

Costs incurred in connection with the acquisition of EnTrust were $6,732 during the three months ended June 30, 2016.

The financial results of EnTrust included in Legg Mason's consolidated financial results for the three months ended June 30, 2016, include revenues of $18,726 and did not have a material impact on Net Income Attributable to Legg Mason, Inc.

In connection with the combination of EnTrust and Permal, Legg Mason incurred total charges for restructuring and transition costs of $87,643 through June 30, 2017, which includes $2,562 recognized during the quarter ended June 30, 2017. These costs were primarily comprised of charges for employee termination benefits, including severance and retention incentives, which were recorded as Compensation and benefits, in the Consolidated Statements of Income, and real estate related charges, which were recorded as Occupancy, in the Consolidated Statements of Income. While the combination is substantially complete, Legg Mason expects to incur additional costs totaling $3,000 to $4,000 during the remainder of fiscal 2018 and fiscal 2019.

The table below presents a summary of changes in the restructuring and transition-related liability from December 31, 2015 through June 30, 2017, and cumulative charges incurred to date:

	Compensation			Other				Total
Balance as of December 31, 2015	$	—		$	—			$	—
Accrued charges	31,581			9,981			(1)	41,562
Payments	(21,938		)	(2,097		)		(24,035		)
Balance as of March 31, 2016	9,643			7,884				17,527
Accrued charges	22,891			11,075			(1)	33,966
Payments	(29,211		)	(12,408		)		(41,619		)
Balance as of March 31, 2017	3,323			6,551				9,874
Accrued charges	923			194				1,117
Payments	(4,118		)	(1,041		)		(5,159		)
Balance as of June 30, 2017	$	128		$	5,704			$	5,832
Non-cash charges(2)
Year ended March 31, 2016	$	591		$	1,143			$	1,734
Year ended March 31, 2017	4,423			3,396				7,819
Three months ended June 30, 2017	1,441			4				1,445
Total	$	6,455		$	4,543			$	10,998
Cumulative charges incurred through June 30, 2017	$	61,850		$	25,793			$	87,643

(1) Includes lease loss reserve for space permanently abandoned of $9,069 for the year ended March 31, 2017, and $7,212 for the year ended March 31, 2016.

(2) Includes stock-based compensation expense and accelerated fixed asset depreciation.

Clarion Partners

On April 13, 2016, Legg Mason acquired a majority equity interest in Clarion Partners, a diversified real estate asset management firm headquartered in New York. Clarion Partners managed approximately $41,500,000 in AUM on the date of acquisition. Legg Mason acquired an 82% ownership interest in Clarion Partners for a cash payment of $631,476 (including a payment for cash delivered of $36,772 and co-investments of $16,210), which was funded with a portion of the proceeds from the issuance of the 2026 Notes and the 6.375% 2056 Notes in March 2016. The Clarion Partners management team retained 18% of the outstanding equity in Clarion Partners. The Clarion Partners management team also retained rights to the full amount of performance fee revenues earned on historic AUM in place as of the closing of the acquisition. Performance fees earned on this historic AUM are fully passed through to employees as compensation, per the terms of the acquisition agreement, and recorded as compensation expense. Legg Mason expects the full pass through of performance fees to phase out approximately five years post-closing. The firm's previous majority owner sold its entire ownership interest in the transaction. The noncontrolling interests held by the management team can be put by the holders or called by Legg Mason for settlement at fair value subject to various conditions, including the passage of time. The fair value of the noncontrolling interests reflects the total business enterprise value, after appropriate discounts for lack of marketability and control.

Upon the acquisition, Legg Mason also granted certain key employees of Clarion Partners a total of 716 performance-based Legg Mason restricted share units with an aggregate fair value of $11,121, which vest upon Clarion Partners achieving a certain level of EBITDA, as defined in the award agreements, within a designated period after the closing of the acquisition. The aggregate value of the award was included in the purchase price and was determined as of the grant date using a Monte Carlo pricing model with the following assumptions:

Long-term EBITDA growth rate	6.0	%
Risk-free interest rate	2.3	%
Expected volatility:
Legg Mason	38.0	%
Clarion Partners	30.0	%

In connection with the transaction, Legg Mason also implemented an affiliate management equity plan for the management team of Clarion Partners, which resulted in a non-cash charge of $15,200 in the three months ended June 30, 2016. See Note 8 for additional information related to the Clarion Partners management equity plan.

The fair value of the acquired amortizable intangible asset management contracts had an average useful life of approximately 10 years at acquisition. Approximately 82% of the purchase price allocated to intangible assets and goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with Clarion Partners.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	6% to 20% (weighted-average: 6%)	13.5%
Indefinite-life trade name	5% to 17% (weighted-average: 6%)	13.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts:	7% / (10)%	13.4%

In addition to the previously discussed charge of $15,200 incurred in connection with the implementation of the Clarion Partners management equity plan, during the three months ended June 30, 2016, there were $10,383, of costs incurred in connection with the acquisition of Clarion Partners.

The financial results of Clarion Partners included in Legg Mason's consolidated financial results for the three months ended June 30, 2016, include revenues of $56,691 and did not have a material impact to Net Income Attributable to Legg Mason, Inc.

Pro Forma Financial Information

The following unaudited pro forma financial information presents the combined financial results of Legg Mason, Clarion Partners, and EnTrust, for the initial period of the acquisitions as if each acquisition had occurred on April 1, 2015. The unaudited pro forma financial information reflects certain adjustments for amortization expense related to the fair value of acquired intangible assets, acquisition- and transition-related costs, interest expense related to debt incurred to finance the acquisitions, and the income tax impact of the pro forma adjustments. The unaudited pro forma financial information is for informational purposes only, excludes projected cost savings, and is not necessarily indicative of the financial results that would have been achieved had the acquisitions actually occurred at the beginning of the first period presented.

	Three Months Ended June 30, 2016
Revenues	$	717,516
Net Income Attributable to Legg Mason, Inc.	68,281
Net Income Per Share Attributable to Legg Mason, Inc. Shareholders:
Basic	$	0.63
Diluted	$	0.63

RARE Infrastructure Limited

On October 21, 2015, Legg Mason acquired a majority equity interest in RARE Infrastructure Limited ("RARE Infrastructure"). RARE Infrastructure specializes in global listed infrastructure security investing, is headquartered in Sydney, Australia, and had approximately $6,800,000 in AUM at the closing of the transaction. Under the terms of the related transaction agreements, Legg Mason acquired a 75% ownership interest in the firm, the firm's management team retained a 15% equity interest and a continuing corporate minority owner, retained 10%. The acquisition required an initial cash payment of $213,739 (using the foreign exchange rate as of October 21, 2015 for the 296,000 Australian dollar payment), which was funded with approximately $40,000 of net borrowings under the Company's previous revolving credit facility, as well as existing cash resources. In August 2015, Legg Mason executed a currency forward contract to economically hedge the risk of movement in the exchange rate between the U.S. dollar and the Australian dollar in which the initial cash payment was denominated. This currency forward contract was closed in October 2015. See Note 12 for additional information regarding derivatives and hedging. In addition, contingent consideration may be due March 31, 2018, of up to $81,426 (using the foreign exchange rate as of June 30, 2017, for the maximum 106,000 Australian dollar amount per the related agreements), dependent on the achievement of certain net revenue targets, and subject to potential catch-up adjustments extending through March 31, 2019. The transaction also provided for a potential contingent payment as of March 31, 2017, however no such payment was due based on relevant net revenue targets.

The noncontrolling interests can be put by the holders or called by Legg Mason for settlement at fair value, except for the non-management portion of the noncontrolling interests, which are callable at a pre-agreed formula, as specified in the agreements. The fair value of the noncontrolling interests reflects the total business enterprise value of RARE Infrastructure, after appropriate discounts for lack of marketability and control.

The fair value of the acquired amortizable intangible asset management contracts had a useful life of 12 years at acquisition. Purchase price allocated to intangible assets and goodwill is not deductible for Australian tax purposes. Goodwill was principally attributable to synergies expected to arise with RARE Infrastructure.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 10% (weighted-average: 7%)	16.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	7% / (8)%	16.5%

During the three months ended June 30, 2017, the amortizable intangible asset management contracts asset and the trade name indefinite-life intangible asset were impaired by $32,000 and $2,000, respectively. See Note 6 for additional information.

The fair value of the contingent consideration was estimated using Monte Carlo simulation in a risk-neutral framework with various observable inputs, as well as, with various unobservable data inputs which are Level 3 measurements. The simulation considered variables, including AUM growth and performance fee levels. Consistent with risk-neutral framework, projected AUM and performance fees were dampened by a measure of risk referred to as 'market price of risk' to account for its market risk or systematic risk before calculating the earn-out payments. These earn-out payments were then discounted commensurate with their timing. A summary of various assumption values follows:

AUM growth rates	Weighted-average: 7%
Performance fee growth rates	Weighted-average: 3%
Projected AUM and performance fee market price of risk	6.5%
AUM volatility	20.0%
Earn-out payment discount rate	1.9%

Significant increases (decreases) in projected AUM or performance fees would result in a significantly higher (lower) contingent consideration liability fair value.

The contingent consideration liability established at closing had an acquisition date fair value of $25,000 (using the foreign exchange rate as of October 21, 2015). As of June 30, 2017, the fair value of the contingent consideration liability was $2,128, a decrease of $15,316 from March 31, 2017. During the three months ended June 30, 2017, reductions in projected AUM and revenues attributable in part to a large outflow during the quarter resulted in a $15,250 reduction in the estimated contingent consideration liability, recorded as a credit to Contingent consideration fair value adjustments in the Consolidated Statement of Income. The remaining decrease of $66 is attributable to changes in the exchange rate, which is included in Accumulated other comprehensive loss, net, as Foreign currency translation adjustment, and accretion. The total contingent consideration liability was included in non-current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017. As of March 31, 2017, the contingent consideration liability totaled $17,444, of which $7,791 was included in current Contingent consideration in the Consolidated Balance Sheet, with the remaining $9,653 included in non-current Contingent consideration. The contingent consideration liability was recorded at an entity with an Australian dollar functional currency, such that related changes in the exchange rate do not impact net income.

Martin Currie (Holdings) Limited

On October 1, 2014, Legg Mason acquired all outstanding equity interests of Martin Currie (Holdings) Limited ("Martin Currie"), an international equity specialist based in the United Kingdom. The acquisition required an initial payment of $202,577 (using the foreign exchange rate as of October 1, 2014 for the £125,000 contract amount), which was funded from existing cash. In addition, a contingent consideration payment may be due March 31, 2018, following the third anniversary of closing, of up to approximately $423,075 (using the foreign exchange rate as of June 30, 2017 for the maximum £325,000 contract amount), inclusive of the payment of certain potential pension and other obligations, and dependent on the achievement of certain financial metrics at March 31, 2018, as specified in the share purchase agreement. The agreement also provided for potential first and second anniversary contingent payments as of March 31, 2016 and 2017, respectively, however no such payments were due based on relevant financial metrics.

The fair value of the amortizable intangible asset management contracts asset is being amortized over a period of 12 years. Goodwill is principally attributable to synergies expected to arise with Martin Currie. These acquired intangible assets and goodwill are not deductible for U.K. tax purposes.

Management estimated the fair values of the indefinite-life intangible fund management contracts, indefinite-life trade name, and amortizable intangible asset management contracts based upon discounted cash flow analyses, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition, including projected annual cash flows, projected AUM growth rates and discount rates, are summarized as follows:

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 25% (weighted-average: 11%)	15.0%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	6% / (17)%	15.0%

The fair value of the contingent consideration was measured using Monte Carlo simulation with various unobservable market data inputs, which are Level 3 measurements. The simulation considered variables, including AUM growth, performance fee levels and relevant product performance. Projected AUM, performance fees and earn-out payments were discounted as appropriate. A summary of various assumption values follows:

AUM growth rates	Weighted-average: 14%
Performance fee growth rates	Weighted-average: 15%
Discount rates:
Projected AUM	13.0%
Projected performance fees	15.0%
Earn-out payments	1.3%
AUM volatility	18.8%

Significant future increases (decreases) in projected AUM or performance fees would result in a significantly higher (lower) contingent consideration liability fair value.

The contingent consideration liability established at closing had an acquisition date fair value of $75,211 (using the foreign exchange rate as of October 1, 2014). Actual payments to be made may also include amounts for certain potential pension and other obligations that are accounted for separately. As of June 30, 2017, the fair value of the contingent consideration liability was $12,480, an increase of $462 from March 31, 2017, which was attributable to changes in the exchange rate, which is included in Accumulated other comprehensive loss, net, as Foreign currency translation adjustment. The contingent consideration liability was included in current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017, and recorded at an entity with a British pound functional currency, such that related changes in the exchange rate do not impact net income.

Martin Currie Defined Benefit Pension Plan

Martin Currie sponsors a retirement and death benefits plan, a defined benefit pension plan with assets held in a separate trustee-administered fund. Plan assets are measured at fair value and comprised of 65% equities (Level 1), 34% bonds (Level 2) and 1% cash (Level 1) as of June 30, 2017, and 65% equities (Level 1) and 35% bonds (Level 2) as of March 31, 2017. Assumptions used to determine the expected return on plan assets targets a 60% / 40% equity/bond allocation with reference to the 15-year FTSE U.K. Gilt yield for equities and U.K. long-dated bond yields for bonds. Plan liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate on a high-quality bond in the local U.K. market and currency. There were no significant concentrations of risk in plan assets as of June 30, 2017. The most recent actuarial valuation was performed as of May 31, 2013, which was updated through the acquisition and at subsequent balance sheet dates through March 31, 2017. Accrual of service credit under the plan ceased on October 3, 2014. Legg Mason uses the corridor approach to account for this plan. Under the corridor approach, actuarial gains and losses on plan assets and liabilities are deferred and reported as Other comprehensive income (loss). However, if at the beginning of the next fiscal year, the actuarial gains and losses exceed 10% of the greater of the fair value of the plan assets or the plan benefit obligation, the excess will be amortized as Compensation expense over the recovery period of 15 years. During the three months ended June 30, 2017, $119 of previously unrecognized losses were expensed under the corridor approach.

The resulting net benefit obligation, comprised as follows, is included in the June 30, 2017 and March 31, 2017, Consolidated Balance Sheets as Other non-current liabilities:

	June 30, 2017			March 31, 2017
Fair value of plan assets (at 5.4% expected weighted-average long-term return)	$	62,893		$	59,623
Benefit obligation (at 2.7% discount rate)	(99,802		)	(97,137		)
Unfunded status (excess of benefit obligation over plan assets)	$	(36,909	)	$	(37,514	)

For the three months ended June 30, 2017 and 2016, a net periodic benefit cost of $25 and $28, respectively, was included in Compensation and benefits expense in the Consolidated Statements of Income. Net actuarial losses of $17,202 and $16,681 were included in Accumulated other comprehensive loss, net, in the Consolidated Balance Sheets at June 30, 2017 and March 31, 2017, respectively.

The contingent consideration payments may provide some funding of the net plan benefit obligation, through a provision of the share purchase agreement requiring certain amounts to be paid to the plan. Any contingent consideration payments to the plan are based on determination of the plan benefit obligation under local technical provisions utilized by the plan trustees.

In connection with a review by the Pensions Regulator in the U.K. ("the Regulator") of the pension plan's current structure and funding status, Martin Currie and the trustees of the pension have agreed with the Regulator to a revised plan structure which will result in certain changes to the plan structure, including the redomiciliation of the plan in the U.K., additional guarantees and, following the application of any contingent consideration payments toward the pension deficit, provisions for accelerated funding of a portion of any remaining benefit obligation, in certain circumstances. Absent funding from contingent consideration payments, Martin Currie does not expect to contribute any additional amounts in fiscal 2018 to the plan in excess of the $1,919 contributed during the three months ended June 30, 2017.

The contingent consideration provisions of the share purchase agreement also require a designated percentage of the earn-out payments, net of any pension contribution, to be allocated to fund an incentive plan for Martin Currie's management. No payments to employees under the arrangement will be made until the end of the earn-out period. The estimated payment (adjusted quarterly) is being amortized over the earn-out term.

Other

In December 2015, Martin Currie acquired certain assets of PK Investment Management, LLP ("PK Investments"), a London based equity manager, for an initial cash payment of $4,981 and an estimated contingent payment of $2,506 due on December 31, 2017. The amount of any ultimate contingent payment will be based on certain financial metrics. The initial cash payment was funded with existing cash resources. In connection with the acquisition, Legg Mason recognized indefinite-life intangible fund management contracts and goodwill of $6,619 and $827, respectively.

QS Investors Holdings, LLC

Effective May 31, 2014, Legg Mason acquired all of the outstanding equity interests of QS Investors, a customized solutions and global quantitative equities provider. The initial purchase price was a cash payment of $11,000, funded from existing cash. Additional contingent consideration of up to $20,000 for the fourth anniversary payment, and up to $3,400 for a potential catch-up adjustment for the second anniversary payment shortfall, may be due in July 2018, dependent on the achievement of certain net revenue targets.

The fair value of the amortizable intangible asset management contracts had a useful life of 10 years at acquisition. Purchase price allocated to goodwill is expected to be deductible for U.S. tax purposes over a period of 15 years. Goodwill is principally attributable to synergies expected to arise with QS Investors.

Management estimated the fair values of the amortizable intangible asset management contracts based upon a discounted cash flow analysis, and the contingent consideration expected to be paid and discounted, based upon probability-weighted revenue projections, using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in these analyses at acquisition including projected annual cash flows, revenues and discount rates, are summarized as follows:

	Projected Cash Flow Attrition, Net	Discount Rate
Amortizable intangible asset management contracts	(10.0)%	15.0%
	Projected Revenue Growth Rates	Discount Rates
Contingent consideration	0% to 10% (weighted-average: 6%)	1.2% / 2.1%

As of June 30, 2017, the fair value of the contingent consideration liability was $3,583, a decrease of $1,258 from March 31, 2017. During the three months ended June 30, 2017, a reduction in projected net revenue resulted in a $1,300 reduction in the estimated contingent consideration liability, recorded as a credit to Contingent consideration fair value adjustments in the Consolidated Statement of Income. The reduction was offset in part by an increase of $42 attributable to accretion. The contingent consideration liability was included in non-current Contingent consideration in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017.

Financial Guard, LLC

On August 17, 2016, Legg Mason acquired 82% of the equity interests in Financial Guard, LLC ("Financial Guard"), an online registered investment advisor and technology-enabled wealth management and investment advice platform. The acquisition required an initial cash payment, which was funded with existing cash resources, and a contingent payment of up to $3,000 based on certain metrics within the first year after the acquisition. In connection with the acquisition, Legg Mason recognized certain business assets and goodwill of $11,995. Legg Mason also committed to contribute up to $5,000 of additional working capital to Financial Guard, to be paid over the two-year period following the acquisition, of which $2,500 has been paid as of June 30, 2017. As of June 30, 2017 and March 31, 2017, no contingent consideration liability was recorded in the Consolidated Balance Sheet.

Precidian Investments, LLC

On January 22, 2016, Legg Mason acquired a minority equity position in Precidian Investments, LLC ("Precidian"), a firm specializing in creating innovative products and solutions and solving market structure issues, particularly with regard to the ETF marketplace.

The transaction required a cash payment, which was funded from existing cash resources. Under the terms of the transaction, Legg Mason acquired series B preferred units of Precidian that entitle Legg Mason to approximately 20% of the voting and economic interests of Precidian, along with customary preferred equity protections. At its sole option during the 48 months following the initial investment or, if earlier, within nine months of the SEC's approval of Precidian's application to operate its active shares product. Legg Mason may, subject to satisfaction of certain closing conditions and upon payment of further consideration, convert its preferred units to 75% of the common equity of Precidian on a fully diluted basis.

Legg Mason accounts for its investment in Precidian, which is included in Other assets in the Consolidated Balance Sheet as of June 30, 2017 and March 31, 2017, under the equity method of accounting.

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Fair Values of Assets and Liabilities

3 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

4. Investments and Fair Values of Assets and Liabilities

The disclosures below include details of Legg Mason's financial assets and financial liabilities that are measured at fair value, excluding the financial assets and financial liabilities of CIVs. See Note 13, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the assets and liabilities of CIVs that are measured at fair value.

The fair values of financial assets and (liabilities) of the Company were determined using the following categories of inputs:

	As of June 30, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	225,358		$	—	$	—		$	—	$	225,358
Time deposits and other	—			16,586		—			—		16,586
Total cash equivalents	225,358			16,586		—			—		241,944
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	119,998			64,161		—			3,389		187,548
Other(3)	21,542			2,474		—			11		24,027
Trading investments relating to long-term incentive compensation plans(4)	175,036			—		—			105		175,141
Equity method investments relating to long-term incentive compensation plans(5)	—			—		1,349			6,895		8,244
Total current investments(6)	316,576			66,635		1,349			10,400		394,960
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		813			22,658		23,471
Seed capital investments in real estate funds	—			—		27,182			—		27,182
Other proprietary fund products	—			—		1,646			13,969		15,615
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,277		3,277
Investments related to long-term incentive compensation plans	—			—		9,367			—		9,367
Other proprietary fund products	—			99		1,818			—		1,917
Derivative assets(7)(8)	3,083			—		—			—		3,083
Other investments(7)	—			—		112			—		112
Total	$	545,017		$	83,320	$	42,287		$	50,304	$	720,928
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(20,697	)	$	—	$	(20,697	)
Derivative liabilities(8)	(274		)	—		—			—		(274		)
Total	$	(274	)	$	—	$	(20,697	)	$	—	$	(20,971	)

	As of March 31, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	403,585		$	—	$	—		$	—	$	403,585
Time deposits and other	—			35,835		—			—		35,835
Total cash equivalents	403,585			35,835		—			—		439,420
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	141,025			75,275		—			4,373		220,673
Other(3)	39,177			2,724		—			11		41,912
Trading investments relating to long-term incentive compensation plans(4)	150,576			—		—			327		150,903
Equity method investments relating to proprietary fund products and long-term incentive compensation plans:(5)
Seed capital investments	—			2,502		—			—		2,502
Investments related to long-term incentive compensation plans	—			—		1,337			6,292		7,629
Total current investments(6)	330,778			80,501		1,337			11,003		423,619
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		752			22,712		23,464
Seed capital investments in real estate funds	—			—		26,909			—		26,909
Other proprietary fund products	—			—		1,646			15,617		17,263
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,440		3,440
Investments related to long-term incentive compensation plans	—			—		9,315			—		9,315
Other proprietary fund products	—			99		1,825			—		1,924
Derivative assets(7)(8)	2,718			—		—			—		2,718
Other investments(7)	—			—		113			—		113
Total	$	737,081		$	116,435	$	41,897		$	52,772	$	948,185
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(36,810	)	$	—	$	(36,810	)
Derivative liabilities(8)	(4,522		)	—		—			—		(4,522		)
Total	$	(4,522	)	$	—	$	(36,810	)	$	—	$	(41,332	)

(1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds 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 purchase of the instrument and its expected realization, and are classified as Level 2.

(2) Trading investments of proprietary fund products and other trading investments consist of approximately 75% and 25% equity and debt securities, respectively, as of June 30, 2017, and approximately 79% and 21% equity and debt securities, respectively, as of March 31, 2017.

(3) Includes $12,691 and $26,854 in noncontrolling interests associated with consolidated seed investment products as of June 30, 2017 and March 31, 2017, respectively.

(4) 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.

(5) Certain of Legg Mason's equity method investments are investment companies that record underlying investments at fair value. Therefore, the fair value of these investments 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. Other equity method investments not measured at fair value on a recurring basis are excluded from the tables above.

(6) Excludes $36,026 and $28,300 of seed capital as of June 30, 2017, and March 31, 2017, respectively, which is related to Legg Mason's investments in CIVs. See Note 13.

(7) Amounts are included in Other non-current assets in the Consolidated Balance Sheets for each of the periods presented.

(8) See Note 12.

(9) See Note 3 and Note 9.

Proprietary fund products include seed capital investments made by Legg Mason to fund new investment strategies and products. Legg Mason had seed capital investments in proprietary fund products, which totaled $277,504 and $305,288, as of June 30, 2017 and March 31, 2017, respectively, which are substantially comprised of investments in 55 funds and 57 funds, respectively, that are individually greater than $1,000, and together comprise over 90% of the total seed capital investments at each period end.

As further discussed in Notes 2, 12, and 13, on June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one Legg Mason sponsored ETF for an aggregate notional amount of $20,253 which resulted in the investment in the ETF by each of the financial intermediaries. Under the terms of the total return swap arrangements, Legg Mason receives all the investment gains and losses on the underlying investments and therefore is required to consolidate the sponsored investment fund, which was designated as a CIV.

See Notes 2 for information regarding the determination of whether investments in proprietary fund products represent VIEs and consolidation.

The net realized and unrealized gain for investment securities classified as trading was $10,169, and $9,587 for the three months ended June 30, 2017 and 2016, respectively.

The net unrealized gains relating to trading investments still held as of the reporting dates were $2,068 and $4,139 for the three months ended June 30, 2017 and 2016, respectively.

The changes in financial assets and (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three months ended June 30, 2017 and 2016, are presented in the tables below:

	Balance as of March 31, 2017			Purchases		Sales		Redemptions/ Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net			Balance as of June 30,  2017
Assets:
Equity method investments relating to long-term incentive compensation plans	$	1,337		$	11	$	—	$	(11	)	$	—	$	12		$	1,349
Equity method investments in partnerships and LLCs:
Seed capital investments	752			—		—		—			—		61			813
Seed capital investments in real estate funds	26,909			439		—		(619		)	—		453			27,182
Other proprietary fund products	1,646			—		—		—			—		—			1,646
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	9,315			52		—		—			—		—			9,367
Other proprietary fund products	1,825			—		—		(7		)	—		—			1,818
Other investments	113			—		—		—			—		(1		)	112
	$	41,897		$	502	$	—	$	(637	)	$	—	$	525		$	42,287
Liabilities:
Contingent consideration liabilities	$	(36,810	)	$	—	n/a		$	—		n/a		$	16,113		$	(20,697	)

n/a - not applicable

	Balance as of March 31, 2016			Purchases		Sales		Redemptions/Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net		Balance as of June 30,  2016
Assets:
Trading investments of seed capital investments in proprietary fund products	$	3		$	—	$	—	$	(3	)	$	—	$	—	$	—
Equity method investments relating to long-term incentive compensation plans	—			2,553		—		(22		)	—		56		2,587
Equity method investments in partnerships and LLCs:
Seed capital investments in real estate funds	—			24,263		—		(132		)	—		382		24,513
Seed capital investments	627			—		—		—			—		17		644
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	7,501			—		—		—			—		—		7,501
Other proprietary fund products	4,807			—		—		(1,000		)	—		3		3,810
Other investments	83			—		—		—			—		7		90
	$	13,021		$	26,816	$	—	$	(1,157	)	$	—	$	465	$	39,145
Liabilities:
Contingent consideration liabilities	$	(84,585	)	$	—	n/a		$	—		n/a		$	21,662	$	(62,923	)

n/a - not applicable

Realized and unrealized gains and losses recorded for Level 3 investments are primarily included in Other non-operating income (expense), net, in the Consolidated Statements of Income. The change in unrealized gains for Level 3 investments and liabilities still held at the reporting date was $16,638, and $22,126 for the three months ended June 30, 2017, and 2016, respectively.

There were no significant transfers between Level 1 and Level 2 during the three months ended June 30, 2017 and 2016.

As a practical expedient, Legg Mason relies on the NAV of certain investments as their fair value.  The NAVs that have been provided by the investees have been derived from the fair values of the underlying investments as of the respective reporting dates.  The following table summarizes, as of June 30, 2017 and March 31, 2017, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized:

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments		Remaining Term
Funds-of-hedge funds	Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge	$	17,962	(1)	$	18,537	n/a		n/a
Hedge funds	Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge	9,367			10,107		$	20,000	n/a
Private equity funds	Long/short equity	15,907		(2)	17,612		7,071		Up to 12 years
Equity method	Long/short fixed income	6,895			6,292		n/a		n/a
Other	Various	173			224		n/a		Various (3)
Total		$	50,304		$	52,772	$	27,071

n/a - not applicable

(1) Liquidation restrictions: 1% daily redemption, 12% monthly redemption, 10% quarterly redemption, and 77% are not subject to redemption or are not currently redeemable.

(2) Liquidations are expected over the remaining term.

(3) Of this balance, 34% has a remaining term of less than one year and 66% has a remaining term of 15 years.

There are no current plans to sell any of these investments held as of June 30, 2017.

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Fixed Assets

3 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Fixed Assets

5. Fixed Assets

Fixed assets primarily consist of equipment, software and leasehold improvements. Equipment consists primarily of communications and technology hardware and furniture and fixtures. Capitalized software includes both purchased software and internally developed software. Fixed assets are reported at cost, net of accumulated depreciation and amortization. The following table reflects the components of fixed assets as of:

	June 30, 2017			March 31, 2017
Equipment	$	162,315		$	159,102
Software	309,590			304,943
Leasehold improvements	205,068			204,551
Total cost	676,973			668,596
Less: accumulated depreciation and amortization	(520,965		)	(508,934		)
Fixed assets, net	$	156,008		$	159,662

Depreciation and amortization expense related to fixed assets was $12,134 and $15,215 for the three months ended June 30, 2017, and 2016, respectively. The expense includes accelerated depreciation and amortization of $1,705 for the three months ended June 30, 2016, primarily related to space vacated in connection with the restructuring of Permal for the combination with EnTrust.

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Intangible Assets and Goodwill

3 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

6. Intangible Assets and Goodwill

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

	June 30, 2017			March 31, 2017
Amortizable intangible asset management contracts and other
Cost	$	374,938		$	408,025
Accumulated amortization	(199,315		)	(194,371		)
Net	175,623			213,654
Indefinite–life intangible assets
U.S. domestic mutual fund management contracts	2,106,351			2,106,351
Clarion Partners fund management contracts	505,200			505,200
EnTrustPermal fund management contracts	596,404			596,404
Other fund management contracts	547,917			542,908
Trade names	68,031			69,863
	3,823,903			3,820,726
Intangible assets, net	$	3,999,526		$	4,034,380

Certain of Legg Mason's intangible assets are denominated in currencies other than the U.S. dollar and balances related to these assets will fluctuate with changes in the related foreign currency exchange rates.

During the three months ended June 30, 2017, projected revenues related to the RARE Infrastructure separate account contacts amortizable asset declined due to losses of separate account AUM and other factors, including the withdrawal of approximately $1,500,000 by an institutional client in June 2017. Based on revised attrition estimates, the remaining useful life of the acquired contracts was decreased from eight years to five years at June 30, 2017. As a result of the decline in projected revenues and the revised estimate of the remaining useful life, the amortized carrying value was determined to exceed its fair value and an impairment charge of $32,000 was recorded during the three months ended June 30, 2017. Management estimated the fair value of this asset based upon a discounted cash flow analysis using unobservable market inputs, which are Level 3 measurements. The significant assumptions used in the cash flow analysis included projected AUM growth rates of 7%, attrition rates of 20%, and a discount rate of 16.5%.

In addition, as a result of the AUM losses and other factors, Legg Mason tested the RARE Infrastructure indefinite-life fund management contracts intangible asset and trade name indefinite-life intangible asset for impairment during the three months ended June 30, 2017. The assessed fair value of the RARE Infrastructure indefinite-life fund management contracts intangible asset exceeded the carrying value by 7% and therefore was not impaired. The carrying value of the trade name exceeded its fair value, which resulted in an impairment charge of $2,000. Management estimated the fair value of the RARE Infrastructure trade name based upon a relief from royalty approach and a discounted cash flow method using unobservable market data inputs, which are Level 3 measurements. The significant assumptions used in the cash flow analysis included projected annual revenue growth rates of 5% to 18% (average: 8%), a royalty rate of 1.0%, and a discount rate of 16.5%.

Projected revenue, AUM growth rates and client attrition are most dependent on client AUM flows, changes in market conditions, and product investment performance. Discount rates are also influenced by changes in market conditions, as well as interest rates and other factors. Decreases in projected revenue or AUM growth rates and/or increases in the discount rates could result in lower fair value measurements and potential additional impairments in these intangible assets.

Based on qualitative assessments, Legg Mason determined as of June 30, 2017, that no further quantitative impairment testing was required. Also, there were no impairments to amortizable management contract intangible assets as of June 30, 2017.

In Legg Mason's annual impairment test as of December 31, 2016, the assessed fair value of the Permal trade name indefinite-life asset declined below its carrying value, and accordingly was impaired during the year ended March 31, 2017. Should market performance, flows, and related AUM levels decrease in the near term such that cash flow projections deviate from current projections, it is reasonably possible that this asset could be deemed to be impaired by a material amount.

The assessed fair value of the indefinite-life domestic mutual funds contracts asset related to the Citigroup Asset Management acquisition exceeds the carrying value by a material amount.

As of June 30, 2017, amortizable intangible asset management contracts and other are being amortized over a weighted-average remaining life of 7.6 years.

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

Remaining fiscal 2018	$	18,196
2019	24,678
2020	24,213
2021	23,797
2022	23,559
Thereafter	61,180
Total	$	175,623

The change in the carrying value of goodwill is summarized below:

	Gross Book Value			Accumulated Impairment			Net Book Value
Balance as of March 31, 2017	3,086,789			(1,161,900		)	1,924,889
Impact of excess tax basis amortization	(5,204		)	—			(5,204		)
Changes in foreign exchange rates and other	4,526			—			4,526
Balance as of June 30, 2017	$	3,086,111		$	(1,161,900	)	$	1,924,211

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Long-Term Debt

3 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Long-Term Debt

7. Short-Term Borrowings and Long-Term Debt

Short-term borrowings

On December 29, 2015, Legg Mason entered into an unsecured credit agreement (as amended from time to time, the "Credit Agreement") which provided for a $1,000,000 revolving credit facility. The Credit Agreement was amended on March 31, 2017 to reduce the amount available for borrowing under the revolving credit facility to $500,000. On June 2, 2017, the Credit Agreement was further amended to include Legg Mason, Inc. (the parent entity) among the entities permitted to incur liens to secure obligations, including those related to cash collateral provisions for hedging agreements, in an aggregate amount not to exceed $200,000 at any one time. Prior to this amendment, only certain subsidiaries of Legg Mason were permitted to incur such liens and the cash collateral provided by Legg Mason, Inc. (the parent entity) in connection with certain of its hedging agreements was considered a lien on assets for purposes of the lien covenant. As a result, Legg Mason was not in compliance with the terms of the Credit Agreement at all times. The amendment provides for a waiver of any defaults under the unsecured credit agreement that may have arisen prior to the date of the amendment resulting from the provision of such cash collateral.

Legg Mason had no outstanding borrowings under the revolving credit facility as of June 30, 2017 or March 31, 2017.

Interest Rate Swap - Revolving Credit Facility

On April 29, 2016, Legg Mason entered into a forward starting, amortizing interest rate swap agreement with a financial intermediary, which was designated as a cash flow hedge. The interest rate swap was used to convert then outstanding borrowings under the revolving credit facility from floating rate to fixed rate debt. Under the terms of the interest rate swap agreement, Legg Mason paid a fixed interest rate of 2.3% on a notional amount of $500,000. The swap had a 4.67-year term, with scheduled reductions in notional amount and was to expire on December 29, 2020. The fair value of the contract at June 30, 2016, was a liability of $4,369, with a corresponding loss of $2,683 (net of deferred taxes of $1,686) recorded in Accumulated other comprehensive loss, net, in the Consolidated Balance Sheet. Prior to its termination in August 2016 in connection with the repayment of the outstanding borrowings under the revolving credit facility, the swap settled monthly and during the three months ended June 30, 2016, $527 was reclassified from Accumulated other comprehensive loss, net, to Interest expense upon settlement of the swap. There was no material ineffectiveness related to this cash flow hedge at June 30, 2016.

Long-term debt

Long-term debt, net, consists of the following:

	June 30, 2017												March 31, 2017
	Carrying Value		Fair Value Hedge Adjustment			Unamortized Discount (Premium)			Unamortized Debt Issuance Costs		Maturity Amount		Carrying Value
2.7% Senior Notes due July 2019	$	252,645	$	(3,609	)	$	223		$	741	$	250,000	$	252,980
3.95% Senior Notes due July 2024	248,325		—			320			1,355		250,000		248,265
4.75% Senior Notes due March 2026	446,901		—			—			3,099		450,000		446,812
5.625% Senior Notes due January 2044	547,880		—			(3,243		)	5,363		550,000		547,861
6.375% Junior Notes due March 2056	242,105		—			—			7,895		250,000		242,054
5.45% Junior Notes due September 2056	483,997		—			—			16,003		500,000		483,895
Total	$	2,221,853	$	(3,609	)	$	(2,700	)	$	34,456	$	2,250,000	$	2,221,867

Interest Rate Swap - 2.7% Senior Notes due July 2019

On June 23, 2014, Legg Mason entered into an interest rate swap contract with a financial intermediary with a notional amount of $250,000, which was designated as a fair value hedge. The interest rate swap was used to effectively convert the 2.7% Senior Notes due July 2019 from fixed rate debt to floating rate debt and had identical terms as the underlying debt being hedged. The related hedging gains and losses offset one another and resulted in no net income or loss impact. The swap had a five-year term, and was scheduled to mature on July 15, 2019. On April 21, 2016, the fair value hedge swap was terminated for a cash receipt of $6,500, and the related fair value hedge adjustment is being amortized as Interest expense over the remaining life of the debt. During each of the three months ended June 30, 2017 and 2016, $451 was amortized and recorded as Interest expense in the Consolidated Statements of Income. Until the swap was terminated on April 21, 2016, the original terms and conditions of the hedged instruments were unchanged and the swap was an effective fair value hedge.

As of June 30, 2017, $250,000 of Legg Mason's long-term debt matures in fiscal 2020, and $2,000,000 matures after fiscal 2022.

At June 30, 2017, the estimated fair value of Long-term debt was approximately $2,333,658. The fair value of debt was estimated using publicly quoted market prices and was classified as Level 2 in the fair value hierarchy.

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Stock-Based Compensation

3 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8.  Stock-Based Compensation

See Note 1 regarding updated stock-based compensation accounting guidance effective April 1, 2017.

Legg Mason's stock-based compensation includes stock options, an employee stock purchase plan, market-based performance shares payable in common stock, restricted stock awards and units, affiliate management equity plans and deferred compensation payable in stock. Shares available for issuance under the equity incentive stock plan as of June 30, 2017, were 1,762. Legg Mason's stockholders have approved, effective August 1, 2017, a new equity incentive plan, under which a total of 6,500 shares, plus any shares remaining under the prior plan, are available for issuance. Options under Legg Mason’s employee stock plans have been granted at prices not less than 100% of the fair market value. Options are generally exercisable in equal increments over four or five years and expire within eight to 10 years from the date of grant.

As further discussed below, the components of Legg Mason's total stock-based compensation expense for the three months ended June 30, 2017 and 2016, were as follows:

	Three Months Ended June 30,
	2017		2016
Stock options	$	2,225	$	2,242
Restricted stock and restricted stock units	16,579		14,573
Employee stock purchase plan	297		301
Affiliate management equity plans	776		19,499
Performance share units	1,185		850
Employee stock trust	6		6
Total stock-based compensation expense	$	21,068	$	37,471

Stock Options

Stock option transactions under Legg Mason's equity incentive plans during the three months ended June 30, 2017 and 2016, are summarized below:

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Exercise Price Per Share		Number of Shares		Weighted-Average Exercise Price Per Share
Options outstanding at March 31	4,593		38.15		4,506		$	38.48
Granted	421		37.64		753		31.31
Exercised	(256	)	28.99		(56	)	29.04
Canceled/forfeited	(44	)	43.73		(42	)	43.93
Options outstanding at June 30	4,714		$	38.55	5,161		$	37.49

At June 30, 2017, options were exercisable for 3,141 shares with a weighted-average exercise price of $37.32 and a weighted average remaining contractual life of 4.2 years. Unamortized compensation cost related to unvested options for 1,573 shares at June 30, 2017, was $12,722, which is expected to be recognized over a weighted-average period of 1.6 years.

The weighted-average fair value of service-based stock options granted during the three months ended June 30, 2017 and 2016, using the Black-Scholes option pricing model was $8.33 and $7.78, per share, respectively.

The following weighted-average assumptions were used in the model for grants in the three months ended June 30, 2017 and 2016:

	Three Months Ended June 30,
	2017		2016
Expected dividend yield	1.70	%	1.45	%
Risk-free interest rate	1.89	%	1.25	%
Expected volatility	26.79	%	30.95	%
Expected life (in years)	5.09		5.02

Legg Mason uses an equally weighted combination of both implied and historical volatility to measure expected volatility for calculating Black-Scholes option values.

Restricted Stock

Restricted stock and restricted stock unit transactions during the three months ended June 30, 2017 and 2016, are summarized below:

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Grant Date Value		Number of Shares		Weighted-Average Grant Date Value
Unvested shares at March 31	3,321		38.92		3,058		$	43.34
Granted	1,441		37.64		1,642		31.24
Vested	(1,281	)	39.41		(1,164	)	38.88
Canceled/forfeited	(32	)	38.89		(63	)	42.11
Unvested shares at June 30	3,449		$	38.20	3,473		$	39.11

Unamortized compensation cost related to unvested restricted stock and restricted stock unit awards at June 30, 2017, of $111,146 is expected to be recognized over a weighted-average period of 1.9 years.

Affiliate Management Equity Plans

In connection with the acquisition of Clarion Partners in April 2016, as further discussed in Note 2, Legg Mason implemented a management equity plan for the management team of Clarion Partners that entitles certain of its key employees to participate in 15% of the future growth, if any, of the Clarion Partners enterprise value (subject to appropriate discounts) subsequent to the date of the grant. The initial grant under the plan vested immediately and the related grant-date fair value of $15,200, determined by independent valuation, was recognized as Compensation and benefits expense in the Consolidated Statement of Income (Loss) and reflected in the Consolidated Balance Sheet as Redeemable noncontrolling interest during the three months ended June 30, 2016. As of June 30, 2017, the estimated aggregate redemption amount of units under the plan, as if they were currently redeemable, was $18,700.

Effective March 1, 2016, Legg Mason executed agreements with the management of its existing wholly-owned subsidiary, Royce, regarding employment arrangements with Royce management, revised revenue sharing, and the implementation of a management equity plan for Royce's key employees. Under the management equity plan, minority equity interests equivalent to 19% in the Royce entity have been issued to its management team. These interests allow the holders to receive quarterly distributions of a portion of Royce's pre-tax income in amounts equal to the percentage of ownership represented by the equity they hold, subject to payment of Legg Mason's revenue share and reasonable expenses. As of June 30, 2017, the estimated aggregate redemption amount of units under the plan, as if they were currently redeemable, was $28,241.

On March 31, 2014, Legg Mason implemented a management equity plan and granted units to key employees of its subsidiary ClearBridge Investments, LLC ("ClearBridge") that entitle them to participate in 15% of the future growth, if any, of the ClearBridge enterprise value (subject to appropriate discounts) subsequent to the grant date. Independent valuation determined the aggregate cost of the award to be approximately $16,000, which will be recognized as Compensation and benefits expense in the Consolidated Statements of Income over the related vesting periods through March 2019. Total compensation expense related to the ClearBridge affiliate management equity plan was $776 and $818 for the three months ended June 30, 2017 and 2016, respectively. This arrangement provides that one-half of the cost will be absorbed by the ClearBridge incentive pool. As of June 30, 2017, the estimated aggregate redemption amount of vested units under the ClearBridge plan, as if they were currently redeemable, was approximately $25,800.

On June 28, 2013, Legg Mason implemented a management equity plan with key employees of Permal. Independent valuation determined the aggregate cost of the awards to be approximately $9,000, which was being recognized as Compensation and benefits expense in the Consolidated Statements of Income over the related vesting period through December 2017. In April 2016, in conjunction with the Permal restructuring in preparation for the combination with EnTrust, the Permal management equity plan was liquidated with a payment of $7,150 to its participants, and the remaining $3,481 unamortized cost was expensed during the three months ended June 30, 2016.

Other

As of June 30, 2017 and 2016, non-employee directors held 67 and 54 restricted stock units, respectively, which vest on the grant date and are, therefore, not included in the unvested shares of restricted stock and restricted stock units in the table above.

As discussed in Note 3, upon the acquisition of Clarion Partners in April 2016, Legg Mason granted certain key employees of Clarion Partners a total of 716 performance-based Legg Mason restricted share units, which are not included in the unvested shares of restricted stock and restricted stock units in the table above, with an aggregate fair value of $11,121, which was included in the purchase price, that vest upon Clarion Partners achieving a certain level of EBITDA, as defined in the purchase agreement, within a designated period after the closing of the acquisition.

In May 2017 and 2016, Legg Mason granted certain executive officers a total of 111 and 182 performance share units, respectively, as part of their fiscal 2017 and 2016 incentive award with an aggregate value of $3,503 and $3,528, respectively. The vesting of performance share units granted in May 2017 and 2016, and the number of shares payable at vesting are determined based on Legg Mason’s relative total stockholder return over a three-year period ending March 31, 2020 and 2019, respectively. The grant date fair value per unit for the May 2017 and 2016 performance share units of $31.42 and $19.36, respectively, was estimated as of the grant date using a Monte Carlo pricing model with the following assumptions:

	2017		2016
Expected dividend yield	2.96	%	2.87	%
Risk-free interest rate	1.47	%	0.89	%
Expected volatility	27.73	%	26.01	%

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Commitments and Contingencies

3 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Legg Mason leases office facilities and equipment under non-cancelable operating leases, and also has multi-year agreements for certain services. These leases and service agreements expire on varying dates through fiscal 2028. Certain leases provide for renewal options and contain escalation clauses providing for increased rentals based upon maintenance, utility and tax increases.

As of June 30, 2017, the minimum annual aggregate rentals under operating leases and service agreements are as follows:

Remaining fiscal 2018	$	96,134
2019	112,339
2020	99,336
2021	90,007
2022	88,201
Thereafter	187,773
Total(1)	$	673,790

(1) Includes $611,637 in real estate and equipment leases and $62,153 in service and maintenance agreements.

The minimum rental commitments shown above have not been reduced by $125,444 for minimum sublease rentals to be received in the future under non-cancelable subleases, of which approximately 35% is due from one counterparty.  The lease reserve liability, which is included in the table below, for space subleased as of June 30, 2017 and March 31, 2017, was $31,605 and $28,821, respectively. If a sub-tenant defaults on a sublease, Legg Mason may incur operating charges to adjust the existing lease reserve liability to reflect expected future sublease rentals at reduced amounts, dependent on the commercial real estate market at such time.

The minimum rental commitments shown above also include $8,015 for commitments related to space that has been vacated, but for which subleases are being pursued. The related lease reserve liability, also included in the table below, was $5,126 and $10,867 as of June 30, 2017 and March 31, 2017, respectively, and remains subject to adjustment based on circumstances in the real estate markets that may require a change in assumptions or the actual terms of a sublease that is ultimately secured. The lease reserve liability takes into consideration various assumptions, including the expected amount of time it will take to secure a sublease agreement and prevailing rental rates in the applicable real estate markets.

During fiscal 2016 and fiscal 2017, certain office space was permanently vacated in connection with the combination of EnTrust and Permal. During fiscal 2017, the lease related to a portion of this space was terminated, resulting in reductions in the lease reserve liability totaling $4,495. Also during fiscal 2017, a sublease was executed for headquarters space that had been vacated during fiscal 2016, resulting in a $2,700 reduction in the lease reserve liability for terms more favorable than estimated. This activity is reflected in the lease reserve liability in the table below.

The lease reserve liability for subleased space and vacated space for which subleases are being pursued is included in Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheets. The table below presents a summary of the changes in the lease reserve liability:

Balance as of March 31, 2016	$	52,240
Accrued charges for vacated and subleased space (1) (2)	9,454
Payments, net	(16,531		)
Adjustments and other	(5,475		)
Balance as of March 31, 2017	39,688
Payments, net	(3,273		)
Adjustments and other	316
Balance as of June 30, 2017	$	36,731

(1) Included in Occupancy expense in the Consolidated Statements of Income

(2) Includes $9,069 related to the restructuring of Permal for the combination with EnTrust

As of June 30, 2017, Legg Mason had commitments to invest $35,863 in limited partnerships that make private investments. These commitments are expected to be outstanding, or funded as required, through the end of their respective investment periods ranging through fiscal 2029. Also, in connection with the acquisition of Clarion Partners, Legg Mason committed to provide $100,000 of seed capital to Clarion Partners products after the second anniversary of the transaction closing. Legg Mason also committed to contribute up to $5,000 of additional working capital to Financial Guard, to be paid over the two-year period following the acquisition, of which $2,500 has been paid as of June 30, 2017.

As of June 30, 2017, Legg Mason had various commitments to pay contingent consideration relating to business acquisitions. The following table presents a summary of the maximum remaining contingent consideration and changes in the contingent consideration liability for each of Legg Mason's recent acquisitions. See Note 3 for additional details regarding each significant acquisition.

	RARE Infrastructure			Martin Currie			QS Investors			Other(2)			Total
Acquisition Date	October 21, 2015			October 1, 2014			May 30, 2014			Various
Maximum Remaining Contingent Consideration(1)	$	81,426		$	423,075		$	23,400		$	5,506		$	533,407
Contingent Consideration Liability
Balance as of March 31, 2016	$	27,145		$	41,222		$	13,749		$	2,469		$	84,585
Initial purchase accounting accrual	—			—			—			2,000			2,000
Payment	—			—			(6,587		)	—			(6,587		)
Fair value adjustments	(10,000		)	(25,000		)	(2,500		)	(2,000		)	(39,500		)
Foreign exchange and accretion	299			(4,204		)	179			38			(3,688		)
Balance as of March 31, 2017	17,444			12,018			4,841			2,507			36,810
Fair value adjustments	(15,250		)	—			(1,300		)	—			(16,550		)
Foreign exchange and accretion	(66		)	462			42			(1		)	437
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697
Balance Sheet Classification
Current Contingent consideration	$	—		$	12,480		$	—		$	2,506		$	14,986
Non-current Contingent consideration	2,128			—			3,583			—			5,711
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697

(1) Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

(2) Includes amounts related to the acquisition of Financial Guard on August 17, 2016 and PK Investments on December 31, 2015.

In the normal course of business, Legg Mason enters into contracts that contain a variety of representations and warranties and that provide general indemnifications, which are not considered financial guarantees by relevant accounting guidance. Legg Mason’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against Legg Mason that have not yet occurred.

Legg Mason has been the subject of customer complaints and has also been named as a defendant in various legal actions arising primarily from asset management, securities brokerage, and investment banking activities, including certain class actions, which primarily allege violations of securities laws and seek unspecified damages, which could be substantial. In the normal course of its business, Legg Mason has also received subpoenas and is currently involved in governmental and industry self-regulatory agency inquiries, investigations and, from time to time, proceedings involving asset management activities. In accordance with guidance for accounting for contingencies, Legg Mason has established provisions for estimated losses from pending complaints, legal actions, investigations and proceedings when it is probable that a loss has been incurred and a reasonable estimate of loss can be made.

Legg Mason cannot estimate the reasonably possible loss or range of loss associated with matters of litigation and other proceedings, including those described above as customer complaints, legal actions, inquiries, proceedings and investigations. The inability to provide a reasonably possible amount or range of losses is not because there is uncertainty as to the ultimate outcome of a matter, but because liability and damage issues have not developed to the point where Legg Mason can conclude that there is both a reasonable possibility of a loss and a meaningful amount or range of possible losses. There are numerous aspects to customer complaints, legal actions, inquiries, proceedings and investigations that prevent Legg Mason from estimating a related amount or range of reasonably possible losses. These aspects include, among other things, the nature of the matters; that significant relevant facts are not known, are uncertain or are in dispute; and that damages sought are not specified, are uncertain, unsupportable or unexplained. In addition, for legal actions, discovery may not yet have started, may not be complete or may not be conclusive, and meaningful settlement discussions may not have occurred. Further, for regulatory matters, investigations may run their course without any clear indication of wrongdoing or fault until their conclusion.

In management's opinion, an adequate accrual has been made as of June 30, 2017, to provide for any probable losses that may arise from matters for which the Company could reasonably estimate an amount. Legg Mason's financial condition, results of operations and cash flows could be materially affected during a period in which a matter is ultimately resolved. In addition, the ultimate costs of litigation-related charges can vary significantly from period-to-period, depending on factors such as market conditions, the size and volume of customer complaints and claims, including class action suits, and recoveries from indemnification, contribution, insurance reimbursement, or reductions in compensation under revenue share arrangements.

As further described in Note 3, Legg Mason may be obligated to settle noncontrolling interests related to certain affiliates. As of June 30, 2017, affiliate noncontrolling interests, excluding amounts related to management equity plans, aggregated $585,995. In addition, as of June 30, 2017, the estimated redemption value for units under affiliate management equity plans aggregated $72,741. See Notes 8 and 11 for additional information regarding affiliate management equity plans and noncontrolling interests, respectively.

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Earnings Per Share

3 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

10. Earnings Per Share

Basic earnings per share attributable to Legg Mason, Inc. shareholders ("EPS") is calculated by dividing Net Income Attributable to Legg Mason, Inc. (adjusted by removing earnings allocated to participating securities) by the weighted-average number of shares outstanding, which excludes participating securities. Legg Mason issues to employees restricted stock and restricted stock units that are deemed to be participating securities prior to vesting, because the related unvested restricted shares/units entitle their holder to nonforfeitable dividend rights. In this circumstance, accounting guidance requires a “two-class method” for EPS calculations that excludes earnings (potentially both distributed and undistributed) allocated to participating securities and does not allocate losses to participating securities.

Diluted EPS is similar to basic EPS, but the effect of potential common shares is included in the calculation unless the potential common shares are antidilutive.

During the three months ended June 30, 2017 and 2016, Legg Mason purchased and retired 2,369 and 3,475 shares of its common stock, respectively, for $89,649 and $111,673, respectively, through open market purchases, and retired 337 and 357 shares of its common stock, respectively, for $12,811 and $11,661, respectively, under net share settlements of annual deferred compensation award vesting. Total retired shares reduced weighted-average shares outstanding by 1,329 and 2,015 shares for the three months ended June 30, 2017 and 2016, respectively.

The par value of the shares repurchased is charged to common stock, with the excess of the purchase price over par first charged against additional paid-in capital, with the remaining balance, if any, charged against retained earnings.

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

	Three Months Ended June 30,
	2017		2016
Basic weighted-average shares outstanding for EPS	94,869		104,465
Potential common shares:
Dilutive employee stock options	428		212
Diluted weighted-average shares outstanding for EPS	95,297		104,677
Net Income Attributable to Legg Mason, Inc.	$	50,920	$	33,452
Less: Earnings (distributed and undistributed) allocated to participating securities	1,736		1,051
Net Income (Distributed and Undistributed) Allocated to Shareholders (Excluding Participating Securities)	$	49,184	$	32,401
Net Income per share Attributable to Legg Mason, Inc. Shareholders
Basic	$	0.52	$	0.31
Diluted	$	0.52	$	0.31

The weighted-average shares for the three months ended June 30, 2017 and 2016, exclude weighted-average unvested restricted shares deemed to be participating securities of 3,192 and 3,134, respectively.

The diluted EPS calculations for the three months ended June 30, 2017 and 2016, exclude any potential common shares issuable under the 14,205 warrants issued in connection with the repurchase of Convertible Notes in May 2012 because the market price of Legg Mason common stock did not exceed the exercise price, and therefore, the warrants would be antidilutive.

Options to purchase 2,284 and 3,493 shares for the three months ended June 30, 2017 and 2016, respectively, were not included in the computation of diluted EPS because the presumed proceeds from exercising such options, including the related income tax benefits, exceed the average price of the common shares for the period and, therefore, the options are deemed antidilutive.

Further, market- and performance-based awards are excluded from potential dilution until the designated market or performance condition is met. Unvested restricted shares for the three months ended June 30, 2017 and 2016, were antidilutive and, therefore, do not further impact diluted EPS

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Noncontrolling Interests

3 Months Ended

Jun. 30, 2017

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

11. Noncontrolling Interests

Net income attributable to noncontrolling interests for the three months ended June 30, included the following amounts:

	Three Months Ended June 30,
	2017		2016
Net income attributable to redeemable noncontrolling interests	$	10,356	$	10,037
Net income attributable to nonredeemable noncontrolling interests	2,261		1,851
Total	$	12,617	$	11,888

Total redeemable and nonredeemable noncontrolling interests for the three months ended June 30, 2017 and 2016, included the following amounts:

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2017	$	58,470	$	591,254		$	28,048	$	677,772		$	27,798
Net income attributable to noncontrolling interests	648		9,708			—		10,356			2,261
Net subscriptions (redemptions) and other	10,266		—			—		10,266			—
Distributions	—		(15,913		)	—		(15,913		)	(1,818		)
Foreign exchange	—		333			—		333			—
Vesting/change in estimated redemption value	—		613			776		1,389			—
Balance as of June 30, 2017	$	69,384	$	585,995		$	28,824	$	684,203		$	28,241

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2016	$	94,136	$	68,922		$	12,727	$	175,785		$	22,202
Net income attributable to noncontrolling interests	2,480		7,557			—		10,037			1,851
Net subscriptions (redemptions) and other(3)	18,767		2,604			—		21,371			—
Distributions	—		(1,504		)	—		(1,504		)	(802		)
Grants (settlements), net	—		—			6,120		6,120			—
Business acquisition	—		508,500			—		508,500			—
Foreign exchange	—		(1,998		)	—		(1,998		)	—
Vesting/change in estimated redemption value	—		—			4,251		4,251			—
Balance as of June 30, 2016	$	115,383	$	584,081		$	23,098	$	722,562		$	23,251

(1) Principally related to VIE and seeded investment products.

(2) Related to Royce management equity plan.

(3) Includes the impact related to the adoption of updated consolidation accounting guidance.

Redeemable noncontrolling interests by affiliate (exclusive of management equity plans) for the three months ended June 30, 2017 and 2016, included the following amounts:

	Redeemable noncontrolling interests
	EnTrust-Permal			Clarion Partners			RARE Infrastructure			Other			Total
Balance as of March 31, 2017	$	404,852		$	113,173		$	68,747		$	4,482		$	591,254
Net income attributable to noncontrolling interests	4,595			3,233			1,823			57			9,708
Distributions	(5,884		)	(7,806		)	(2,098		)	(125		)	(15,913		)
Foreign exchange	—			—			333			—			333
Change in estimated redemption value	—			613			—			—			613
Balance as of June 30, 2017	$	403,563		$	109,213		$	68,805		$	4,414		$	585,995

	Redeemable noncontrolling interests
	EnTrust-Permal		Clarion Partners		RARE Infrastructure			Other			Total
Balance as of March 31, 2016	$	—	$	—	$	67,155		$	1,767		$	68,922
Net income attributable to noncontrolling interests	4,159		2,244		1,098			56			7,557
Subscriptions	—		—		—			2,604			2,604
Distributions	—		—		(1,317		)	(187		)	(1,504		)
Business acquisitions	403,200		105,300		—			—			508,500
Foreign exchange	—		—		(1,998		)	—			(1,998		)
Balance as of June 30, 2016	$	407,359	$	107,544	$	64,938		$	4,240		$	584,081

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Derivatives and Hedging

3 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

12. Derivatives and Hedging

Legg Mason uses currency forwards to economically hedge the risk of movements in exchange rates, primarily between the U.S. dollar, British pound, Australian dollar, Singapore dollar, Japanese yen, and euro. All derivative transactions for which Legg Mason has certain legally enforceable rights of setoff are governed by International Swaps and Derivative Association ("ISDA") Master Agreements. For these derivative transactions, Legg Mason has one ISDA Master Agreement with each of the significant counterparties, which covers transactions with that counterparty. Each of the respective ISDA agreements provides for settlement netting and close-out netting between Legg Mason and that counterparty, which are legally enforceable rights to setoff. Other assets recorded in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, were $3,083 and $2,718, respectively. Other liabilities recorded in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, were $274 and $4,522, respectively.

Legg Mason also uses market hedges on certain seed capital investments by entering into futures contracts to sell index funds that benchmark the hedged seed capital investments.

On June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to a Legg Mason sponsored ETF, which resulted in an investment by each of the financial intermediaries in the ETF. Under the terms of each of the total return swap arrangements, LeggMason receives the related investment gains and losses on the underlying shares of the ETF, and also pays a floating spread on the value of the underlying shares equal to the three-month LIBOR plus 1.35%. The total return swap arrangements allow either party to terminate all or part of the arrangement, provide for automatic termination upon occurrence of certain events, and expire in June 2018. Each financial intermediary counterparty may hedge its total return swap position through an investment in the ETF and collectively, the four financial intermediaries have purchased interests in the Legg Mason ETF for a total amount of $20,253. In connection with the arrangements, Legg Mason executed a futures contract with a notional amount of $19,931 to partially hedge the gains and losses recognized on the total return swaps.

As further discussed in Note 7, in April 2016, Legg Mason executed a 4.67-year, amortizing interest rate swap, which was terminated in August 2016. Also, in April 2016, Legg Mason terminated another previously existing interest rate swap.

With the exception of the two interest rate swap contracts discussed in Note 7, Legg Mason has not designated any derivatives as hedging instruments for accounting purposes during the periods ended June 30, 2017, March 31, 2017, or June 30, 2016. In addition to the total return swap arrangements and the related futures contract discussed above, as of June 30, 2017, Legg Mason had open currency forward contracts with aggregate notional amounts totaling $219,118, and open futures contracts relating to seed capital investments with aggregate notional values totaling $129,496. With the exception of the total return swap arrangements and related futures contract, these amounts are representative of the level of non-hedge designation derivative activity throughout the three months ended June 30, 2017 and 2016. As of June 30, 2017, the weighted-average remaining contract terms for currency forward contracts and futures contracts relating to seed capital investments were eight and three months, respectively.

The following table presents the derivative assets and related offsets, if any, as of June 30, 2017:

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,757	$	(1,795	)	$	1,962	$	—	$	—	$	1,962
Futures contracts relating to:
Seed capital investments	—		—			—		853		3,834		4,687
Total return swaps	—		—			—		268		574		842
Total futures contracts	—		—			—		1,121		4,408		5,529
Total derivative instruments not designated as hedging instruments	$	3,757	$	(1,795	)	$	1,962	$	1,121	$	4,408	$	7,491

The following table presents the derivative liabilities and related offsets, if any, as of June 30, 2017:

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(187	)	$	20	$	(167	)	$	—		$	—	$	(167	)
Total return swaps	—			—		—			(107		)	1,275		1,168
Total derivative instruments not designated as hedging instruments	$	(187	)	$	20	$	(167	)	$	(107	)	$	1,275	$	1,001

The following table presents the derivative assets and related offsets, if any, as of March 31, 2017:

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,470	$	(928	)	$	2,542	$	—	$	—	$	2,542
Futures contracts relating to seed capital investments	—		—			—		176		2,878		3,054
Total derivative instruments not designated as hedging instruments	$	3,470	$	(928	)	$	2,542	$	176	$	2,878	$	5,596

The following table presents the derivative liabilities and related offsets, if any, as of March 31, 2017:

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(3,641	)	$	751	$	(2,890	)	$	—		$	—	$	(2,890	)
Futures contracts relating to seed capital investments	—			—		—			(1,632		)	4,155		2,523
Total derivative instruments not designated as hedging instruments	$	(3,641	)	$	751	$	(2,890	)	$	(1,632	)	$	4,155	$	(367	)

The following table presents gains (losses) recognized in the Consolidated Statements of Income on derivative instruments. As described above, the currency forward contracts and futures and forward contracts for seed capital investments included below are economic hedges of interest rate and market risk of certain operating and investing activities of Legg Mason, including foreign exchange risk on acquisition contingent consideration. Gains and losses on these derivative instruments substantially offset gains and losses of the economically hedged items.

		Three Months Ended June 30,
		2017					2016
	Income Statement Classification	Gains		Losses			Gains		Losses
Derivatives not designated as hedging instruments
Currency forward contracts relating to:
Operating activities	Other expense	$	4,712	$	(2,572	)	$	10,530	$	(7,983	)
Seed capital investments	Other non-operating income (expense)	411		(1,049		)	1,334		(856		)
Futures contracts relating to:
Seed capital investments	Other non-operating income (expense)	848		(5,500		)	1,751		(3,391		)
Total return swaps	Other non-operating income (expense)	267		—			—		—
Total return swap	Other non-operating income (expense)	—		(107		)	—		—
Total gain (loss) from derivatives not designated as hedging instruments		6,238		(9,228		)	13,615		(12,230		)
Derivative designated as a cash flow hedge (See Note 7)
Interest rate swap	Interest expense	—		—			—		(527		)
Total		$	6,238	$	(9,228	)	$	13,615	$	(12,757	)

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Variable Interest Entities and Consolidation of Investment Vehicles

3 Months Ended

Jun. 30, 2017

Variable Interest Entities and Consolidation of Investment Vehicles [Abstract]

Consolidated Investment Vehicles and Other Variable Interest Entities Disclosure [Text Block]

13. Variable Interest Entities and Consolidated Investment Vehicles

In accordance with financial accounting standards, Legg Mason consolidates certain sponsored investment products, some of which are designated as CIVs. As further discussed in Note 2, Legg Mason concluded it was the primary beneficiary of three foreign mutual fund VIEs as of each June 30, 2017 and March 31, 2017, and of nine foreign mutual fund VIEs as of June 30, 2016, which were consolidated and designated as CIVs, because it held significant financial interests in these funds. Legg Mason also concluded it was the primary beneficiary of two sponsored investment fund VIEs, and one employee-owned fund that it sponsors, as of each June 30, 2017, March 31, 2017, and June 30, 2016, which were also consolidated and designated as CIVs. In addition, Legg Mason determined it was the primary beneficiary of a sponsored ETF as a result of total return swap arrangements it executed on June 6, 2017 with four separate financial intermediaries. As such, the underlying sponsored investment fund was consolidated and designated a CIV during the three months ended June 30, 2017.

As of June 30, 2017 and March 31, 2017, Legg Mason's investment in CIVs was $36,026 and $28,300, respectively, which represent its maximum risk of investment loss, excluding uncollected advisory fees. In addition, as of June 30, 2017, under the above referenced total return swap arrangements, Legg Mason receives the related investment gains and losses on notional amounts totaling $20,253. The assets of these CIVs are primarily comprised of investment securities. Investors and creditors of these CIVs have no recourse to the general credit or assets of Legg Mason beyond its investment in these funds.

See Notes 2 and 4 for additional information regarding VIEs, VREs, and the consolidation of investment products.

The following tables reflect the impact of CIVs in the Consolidated Balance Sheets as of June 30, 2017 and March 31, 2017, respectively, and the Consolidated Statements of Income for the three months ended June 30, 2017 and 2016, respectively:

Consolidating Balance Sheets

	June 30, 2017									March 31, 2017
	Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals		Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals
Current Assets	$	1,541,578	$	97,091	$	(33,068	)	$	1,605,601	$	1,749,959	$	77,406	$	(25,618	)	$	1,801,747
Non-current assets	6,441,831		9,968		(2,971		)	6,448,828		6,481,376		9,987		(2,695		)	6,488,668
Total Assets	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415
Current Liabilities	$	584,635	$	1,762	$	(13	)	$	586,384	$	808,664	$	736	$	(13	)	$	809,387
Non-current liabilities	2,789,069		—		—			2,789,069		2,792,084		—		—			2,792,084
Total Liabilities	3,373,704		1,762		(13		)	3,375,453		3,600,748		736		(13		)	3,601,471
Redeemable Non-controlling interests	614,819		12,691		56,693			684,203		619,302		26,853		31,617			677,772
Total Stockholders’ Equity	3,994,886		92,606		(92,719		)	3,994,773		4,011,285		59,804		(59,917		)	4,011,172
Total Liabilities and Equity	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415

(1) Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

Consolidating Statements of Income

	Three Months Ended
	June 30, 2017												June 30, 2016
	Balance Before Consolidation of CIVs and Other(1)			CIVs and Other(1)			Eliminations			Consolidated Totals			Balance Before Consolidation of CIVs and Other			CIVs and Other(1)			Eliminations			Consolidated Totals
Total Operating Revenues	$	793,886		$	—		$	(44	)	$	793,842		$	700,177		$	(12	)	$	—		$	700,165
Total Operating Expenses	686,614			68			(45		)	686,637			626,511			99			—			626,610
Operating Income (Loss)	107,272			(68		)	1			107,205			73,666			(111		)	—			73,555
Total Non-Operating Income (Expense)	(16,127		)	1,239			(525		)	(15,413		)	(15,495		)	2,548			43			(12,904		)
Income Before Income Tax Provision	91,145			1,171			(524		)	91,792			58,171			2,437			43			60,651
Income tax provision	28,255			—			—			28,255			15,311			—			—			15,311
Net Income	62,890			1,171			(524		)	63,537			42,860			2,437			43			45,340
Less:  Net income attributable to noncontrolling interests	11,970			243			404			12,617			9,408			2			2,478			11,888
Net Income Attributable to Legg Mason, Inc.	$	50,920		$	928		$	(928	)	$	50,920		$	33,452		$	2,435		$	(2,435	)	$	33,452

(1) Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

Non-Operating Income (Expense) includes interest income, interest expense, and net gains (losses) on investments.

The consolidation of CIVs has no impact on Net Income Attributable to Legg Mason, Inc.

As of June 30, 2017 and March 31, 2017, financial assets of CIVs carried at fair value totaling $67,241 and $33,991, respectively, were valued using Level 1 inputs and totaling $23,054 and $24,734, respectively, were valued using NAV as a practical expedient. Legg Mason had no financial liabilities of CIVs carried at fair value as of June 30, 2017 or March 31, 2017.

There were no transfers between Level 1 and Level 2 during either of the three months ended June 30, 2017 and 2016.

The NAVs used as a practical expedient by CIVs have been provided by the investees and have been derived from the fair values of the underlying investments as of the respective reporting dates. The following table summarizes, as of June 30, 2017 and March 31, 2017, the nature of these investments and any related liquidation restrictions or other factors, which may impact the ultimate value realized:

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments	Remaining Term
Hedge funds	Global macro, fixed income, long/short equity, systematic, emerging market, U.S. and European hedge	$	23,054	(1)	$	24,734	n/a	n/a

n/a - not applicable

(1) Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

As of June 30, 2017 and March 31, 2017, for VIEs in which Legg Mason holds a variable interest, but for which it was not the primary beneficiary, Legg Mason's carrying value and maximum risk of loss were as follows:

	As of June 30, 2017				As of March 31, 2017
	Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)		Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)
Real Estate Investment Trusts	$	12,257	$	14,760	$	11,660	$	15,763
Other investment funds	47,149		63,648		47,063		73,710
Total	$	59,406	$	78,408	$	58,723	$	89,473

(1) Amounts are related to investments in proprietary and other fund products.

(2) Includes equity investments the Company has made or is required to make and any earned but uncollected management fees.

The Company's total AUM of unconsolidated VIEs was $27,013,127 and $26,735,285 as of June 30, 2017 and March 31, 2017, respectively.

The assets of these VIEs are primarily comprised of cash and cash equivalents and investment securities, and the liabilities are primarily comprised of various expense accruals. These VIEs were not consolidated because Legg Mason does not have both the power to direct significant economic activities of the entity and rights/obligations associated with benefits/losses that could be significant to the entity.

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Significant Accounting Policies Significant Accounting Policies (Policies)

3 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Consolidation

In the normal course of its business, Legg Mason sponsors and manages various types of investment products. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinated management fees or other incentive fees. Legg Mason's exposure to risk in these entities is generally limited to any equity investment it has made or is required to make, and any earned but uncollected management fees. Legg Mason did not sell or transfer investment assets to any of these investment products. In accordance with financial accounting standards, Legg Mason consolidates certain sponsored investment products, some of which are designated and reported as consolidated investment vehicles (“CIVs”). The consolidation of sponsored investment products, including those designated as CIVs, has no impact on Net Income Attributable to Legg Mason, Inc. and does not have a material impact on Legg Mason's consolidated operating results. The change in the value of all consolidated sponsored investment products is recorded in Non-Operating Income (Expense) and reflected in Net income attributable to noncontrolling interests.

Certain of the investment products Legg Mason sponsors and manages are considered to be variable interest entities ("VIEs") (as further described below) while others are considered to be voting rights entities (“VREs”) subject to traditional consolidation concepts based on ownership rights. Legg Mason may fund the initial cash investment in certain VRE investment products to generate an investment performance track record in order to attract third-party investors in the product. Legg Mason's initial investment in a new product typically represents 100% of the ownership in that product. As further discussed below, the products with “seed capital investments” are consolidated as long as Legg Mason maintains a controlling financial interest in the product, but they are not designated as CIVs by Legg Mason unless the investment is longer-term. As of June 30, 2017, March 31, 2017, and June 30, 2016, no consolidated VREs were designated as CIVs.

A VIE is an entity which does not have adequate equity to finance its activities without additional subordinated financial support; or the equity investors, as a group, do not have the normal characteristics of equity investors for a potential controlling financial interest. Legg Mason must consolidate any VIE for which it is deemed to be the primary beneficiary.

Under consolidation accounting guidance, if limited partners or similar equity holders in a sponsored investment vehicle structured as a limited partnership or a similar entity do not have either substantive kick-out or substantive participation rights over the general partner, the entities are VIEs. As a sponsor and manager of an investment vehicle, Legg Mason may be deemed a decision maker under the accounting guidance. If the fees paid to a decision maker are market-based, such fees are not considered variable interests in a VIE. Market-based fees are those fees which are both customary and commensurate with the level of effort required for the services provided. Additionally, if employee interests in a sponsored investment vehicle are not made to circumvent the consolidation guidance and are not financed by the sponsor, they are not included in the variable interests assessment, and are not included in the primary beneficiary determination.

A decision maker is deemed to be a primary beneficiary of a VIE if it has the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or receive benefits from variable interests that could be significant to the VIE. In determining whether it is the primary beneficiary of a VIE, Legg Mason considers both qualitative and quantitative factors such as the voting rights of the equity holders, guarantees, and implied relationships. If a fee paid to a decision maker is not market-based, it will be considered in the primary beneficiary determination.

Legg Mason concluded it was the primary beneficiary of three foreign mutual fund VIEs as of each June 30, 2017 and March 31, 2017, and of nine foreign mutual fund VIEs as of June 30, 2016, which were consolidated and designated as CIVs, because it held significant financial interests in these funds. Legg Mason also concluded it was the primary beneficiary of two sponsored investment fund VIEs, and one employee-owned fund that it sponsors, as of each June 30, 2017, March 31, 2017, and June 30, 2016, which were also consolidated and designated as CIVs.

On June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one sponsored exchange traded fund ("ETF") which resulted in investments in the ETF by those intermediaries in the amount of $20,253, as further described in Note 12. Under the terms of the total return swaps, Legg Mason absorbs all gains and losses on the underlying ETF investments of these financial intermediaries, and therefore has variable interests in the fund, and is deemed to be the primary beneficiary. As such, the underlying sponsored investment fund was consolidated and designated a CIV during the three months ended June 30, 2017.

See Notes 4 and 13 for additional information related to VIEs and CIVs.

Commitments and Contingencies, Policy [Policy Text Block]

Contingent Consideration Liabilities

In connection with business acquisitions, Legg Mason may be required to pay additional future consideration based on the achievement of certain designated financial metrics. Legg Mason estimates the fair value of these potential future obligations at the time a business combination is consummated and records a Contingent consideration liability in the Consolidated Balance Sheet.

Legg Mason accretes contingent consideration liabilities to the expected payment amounts over the related earn-out terms until the obligations are ultimately paid, resulting in Interest expense in the Consolidated Statements of Income. If the expected payment amounts subsequently change, the contingent consideration liabilities are (reduced) or increased in the current period, resulting in a (gain) or loss, which is reflected within Contingent consideration fair value adjustments in the Consolidated Statements of Income. See Notes 3 and 9 for additional information regarding contingent consideration liabilities.

Noncontrolling Interests Redeemable [Policy Text Block]

Noncontrolling Interests

Noncontrolling interests include affiliate minority interests, third-party investor equity in consolidated sponsored investment products, and vested affiliate management equity plan interests. For CIVs and other consolidated sponsored investment products with third-party investors, the related noncontrolling interests are classified as redeemable noncontrolling interests if investors in these funds may request withdrawals at any time. Also included in redeemable noncontrolling interests are vested affiliate management equity plan and affiliate minority interests for which the holder may, at some point, request settlement of their interests. Redeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their estimated settlement values. Changes in the expected settlement values are recognized over the settlement period as adjustments to retained earnings. Nonredeemable noncontrolling interests include vested affiliate management equity plan interests that do not permit the holder to request settlement of their interests. Nonredeemable noncontrolling interests are reported in the Consolidated Balance Sheets at their issuance value, together with undistributed net income allocated to noncontrolling interests.

Legg Mason estimates the settlement value of noncontrolling interests as their fair value. For consolidated sponsored investment products, where the investor may request withdrawal at any time, fair value is based on market quotes of the underlying securities held by the investment products. For affiliate minority interests and management equity plan interests, fair value reflects the related total business enterprise value, after appropriate discounts for lack of marketability and control.

There may also be features of these equity interests, such as dividend subordination, that are contemplated in their valuations. The fair value of option-like management equity plan interests also relies on Black-Scholes option pricing model calculations.

Net income attributable to noncontrolling interests in the Consolidated Statements of Income includes the share of net income of the respective subsidiary allocated to the minority interest holders.

See Note 11 for additional information regarding noncontrolling interests.

Derivatives, Policy [Policy Text Block]

Derivative Instruments

As noted above, on June 6, 2017, Legg Mason entered into four total return swap arrangements with financial intermediaries with respect to one Legg Mason sponsored ETF for a total notional amount of $20,253 which resulted in investments in the ETF by these intermediaries. The total return swap arrangements qualify as derivative instruments and are not designated for hedge accounting. In connection with the arrangements, Legg Mason also executed a futures contract to partially hedge the market risk related to the total return swap arrangements. See Notes 4, 12, and 13 for additional information.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Effective April 1, 2017, Legg Mason adopted updated accounting guidance on stock-based compensation accounting. The updated guidance simplifies several aspects of accounting for stock-based compensation including the income tax consequences, and clarifies classification criteria for awards as either equity or liabilities, and the classification of related amounts in statements of cash flows. The updated guidance requires all excess tax benefits and deficiencies associated with stock-based compensation to be recognized as discrete items in the Income tax provision in the Consolidated Statements of Income in the reporting period in which they occur, thereby increasing the volatility of the Income tax provision as a result of fluctuations in Legg Mason's stock price. Legg Mason adopted this amendment on a modified retrospective basis, and recorded a cumulative-effect adjustment of $24,327 as an increase to both deferred tax assets and Retained earnings on the Consolidated Balance Sheet as of April 1, 2017. These tax benefits were not previously recognized due to Legg Mason's cumulative tax loss position. In addition, Legg Mason recorded a related discrete Income tax expense of $906 during the three months ended June 30, 2017, for vested stock awards with a grant date exercise price higher than the related vesting date stock price, as this aspect of the guidance was adopted on a prospective basis. Upon adoption of the updated guidance, Legg Mason elected to prospectively account for forfeitures as they occur, which did not have a material impact on the Consolidated Financial Statements. Also, cash flows related to income tax deductions in excess of or less than the related stock-based compensation expense will be classified as Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss, Net

There were no significant amounts reclassified from Accumulated other comprehensive loss, net, to the Consolidated Statements of Income, except as follows. During the three months ended June 30, 2017, $119 of previously unrecognized losses on a defined benefit pension plan were reclassified and expensed as further described in Note 3, and during the three months ended June 30, 2016, $527 realized on the settlement of an interest rate swap was reclassified and expensed, as further described in Note 7.

Income Tax, Policy [Policy Text Block]

Income Taxes

Noncontrolling interests in EnTrustPermal Group Holdings, LLC ("EnTrustPermal"), Clarion Partners, LLC ("Clarion Partners") and Royce & Associates ("Royce") are structured as partnerships that pass related tax attributes to the related noncontrolling interest holders. As such, the consolidated financial statements do not generally include any tax provision/benefit associated with the net income allocated to these noncontrolling interests, which caused the effective tax rate to be reduced by 3.5 percentage points and 4.8 percentage points for the three months ended June 30, 2017 and 2016, respectively.

In connection with the adoption of updated accounting guidance on stock-based compensation accounting discussed above, Legg Mason recorded a discrete income tax expense of approximately $906 during the three months ended June 30, 2017, which increased the effective tax rate by 1.0 percentage point.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Developments

In February 2016, the Financial Accounting Standards Board ("FASB") updated the guidance on accounting for leases. The updated guidance requires that a lessee shall recognize the assets and liabilities that arise from lease transactions. A lessee will recognize a right-of-use asset to use the underlying asset and a liability representing the lease payments. The updated guidance also requires an evaluation at the inception of a service or other contract, to determine whether the contract is or contains a lease. The guidance will be effective for Legg Mason in fiscal 2020. Legg Mason expects to recognize right of use assets and liabilities upon its adoption of the new standard and is continuing to evaluate the full impact of its adoption.

In May 2014, the FASB updated the guidance on revenue recognition. The updated guidance provides a single, comprehensive revenue recognition model for all contracts with customers, improves comparability and removes inconsistencies in revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance also requires comprehensive disclosures about the nature, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments made in applying the guidance. In March 2016, the FASB further updated the revenue guidance on determining whether to report revenue on a gross versus net basis. The updated guidance clarifies how entities evaluate principal versus agent aspects of the revenue recognition guidance issued in May 2014. The evaluation will require entities to identify all goods or services to be provided to the customer, and determine whether they obtain control of the good or service before it is transferred to the customer, where control would suggest a principal relationship, which would be accounted for on a gross basis. Legg Mason is currently reviewing its revenue contracts, and monitoring relevant implementation guidance. Legg Mason does not anticipate any significant changes to current revenue recognition practices, except as discussed below. Legg Mason may be required to recognize longer-term performance and incentive fees subject to clawback when clawback is not reasonably possible, which is earlier than under its current revenue recognition process, which defers recognition until all contingencies are resolved. Additionally, Legg Mason is evaluating whether certain separate account commissions currently expensed when paid meet the criteria for capitalization and amortization. Legg Mason is also evaluating whether revenue-related costs currently presented on a gross basis will be recorded net, or vice versa. The evaluation of the effect of this guidance is ongoing, and Legg Mason has not determined the ultimate impact of the adoption or the transition method to be used upon adoption, which is effective for Legg Mason on April 1, 2018.

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Acquisitions Acquisitions (Tables)

3 Months Ended

Jun. 30, 2017

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	EnTrust Capital				Clarion Partners			RARE Infrastructure Limited			Martin Currie (Holdings) Limited			QS Investors Holdings, LLC
Acquisition Date	May 2, 2016				April 13, 2016			October 21, 2015			October 1, 2014			May 31,  2014
Purchase price
Cash	$	400,000			$	631,476		$	213,739		$	202,577		$	11,000
Estimated contingent consideration	—				—			25,000			75,211			13,370
Performance-based Legg Mason restricted share units	—				11,121			—			—			—
Minority equity interest transferred	140,000			(1)	—			—			—			—
Total consideration	540,000				642,597			238,739			277,788			24,370
Fair value of noncontrolling interests	247,700			(1)	105,300			62,722			—			—
Total	787,700				747,897			301,461			277,788			24,370
Identifiable assets and liabilities
Cash	8,236				25,307			9,667			29,389			441
Investments	16,220				22,285			—			—			3,281
Receivables	20,820				53,657			6,612			—			2,699
Indefinite-life intangible fund management contracts	262,300				505,200			122,755			135,321			—
Indefinite-life trade name	7,400				23,100			4,766			7,130			—
Amortizable intangible asset management contracts	65,500				102,800			67,877			15,234			7,060
Fixed assets	4,479				8,255			673			784			599
Other current assets (liabilities), net	1,030				(25,585		)	(10,605		)	—			—
Liabilities, net	(8,823		)		(10,579		)	(3,948		)	(4,388		)	(6,620		)
Pension liability	—				—			—			(32,433		)	—
Deferred tax liabilities	—				(36,788		)	(58,619		)	(31,537		)	—
Total identifiable assets and liabilities	377,162				667,652			139,178			119,500			7,460
Goodwill	$	410,538			$	80,245		$	162,283		$	158,288		$	16,910

(1) Post combination EnTrustPermal noncontrolling interest of $403,200 also includes a fair value reclassification of $15,500 from retained earnings

EnTrust Capital [Member]

Business Acquisition [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	(1)% to 5% (weighted-average: 4%)	14.5%
Indefinite-life trade name	6% to 14% (weighted-average: 6%)	14.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	10% / (13)%	13.5%

Clarion Partners [Member]

Business Acquisition [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts	6% to 20% (weighted-average: 6%)	13.5%
Indefinite-life trade name	5% to 17% (weighted-average: 6%)	13.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts:	7% / (10)%	13.4%

RARE Infrastructure, Ltd [Member]

Business Acquisition [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 10% (weighted-average: 7%)	16.5%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	7% / (8)%	16.5%

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

AUM growth rates	Weighted-average: 7%
Performance fee growth rates	Weighted-average: 3%
Projected AUM and performance fee market price of risk	6.5%
AUM volatility	20.0%
Earn-out payment discount rate	1.9%

Martin Currie [Member]

Business Acquisition [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Projected Cash Flow Growth	Discount Rate
Indefinite-life intangible fund management contracts and indefinite-life trade name	Up to 25% (weighted-average: 11%)	15.0%
	Projected AUM Growth / (Attrition)	Discount Rate
Amortizable intangible asset management contracts	6% / (17)%	15.0%

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

AUM growth rates	Weighted-average: 14%
Performance fee growth rates	Weighted-average: 15%
Discount rates:
Projected AUM	13.0%
Projected performance fees	15.0%
Earn-out payments	1.3%
AUM volatility	18.8%

QS Investors [Domain]

Business Acquisition [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Projected Cash Flow Attrition, Net	Discount Rate
Amortizable intangible asset management contracts	(10.0)%	15.0%
	Projected Revenue Growth Rates	Discount Rates
Contingent consideration	0% to 10% (weighted-average: 6%)	1.2% / 2.1%

Restricted Stock [Member] | Clarion Partners [Member]

Business Acquisition [Line Items]

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

Long-term EBITDA growth rate	6.0	%
Risk-free interest rate	2.3	%
Expected volatility:
Legg Mason	38.0	%
Clarion Partners	30.0	%

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Acquisitions Pension (Martin Currie) (Tables)

3 Months Ended

Jun. 30, 2017

Martin Currie [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]

	June 30, 2017			March 31, 2017
Fair value of plan assets (at 5.4% expected weighted-average long-term return)	$	62,893		$	59,623
Benefit obligation (at 2.7% discount rate)	(99,802		)	(97,137		)
Unfunded status (excess of benefit obligation over plan assets)	$	(36,909	)	$	(37,514	)

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Acquisitions Schedule of Proforma Information (Tables)

3 Months Ended

Jun. 30, 2017

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block]

	Three Months Ended June 30, 2016
Revenues	$	717,516
Net Income Attributable to Legg Mason, Inc.	68,281
Net Income Per Share Attributable to Legg Mason, Inc. Shareholders:
Basic	$	0.63
Diluted	$	0.63

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Acquisitions EnTrustPermal Restructuring (Tables)

3 Months Ended

Jun. 30, 2017

EnTrustPermal [Member]

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

	Compensation			Other				Total
Balance as of December 31, 2015	$	—		$	—			$	—
Accrued charges	31,581			9,981			(1)	41,562
Payments	(21,938		)	(2,097		)		(24,035		)
Balance as of March 31, 2016	9,643			7,884				17,527
Accrued charges	22,891			11,075			(1)	33,966
Payments	(29,211		)	(12,408		)		(41,619		)
Balance as of March 31, 2017	3,323			6,551				9,874
Accrued charges	923			194				1,117
Payments	(4,118		)	(1,041		)		(5,159		)
Balance as of June 30, 2017	$	128		$	5,704			$	5,832
Non-cash charges(2)
Year ended March 31, 2016	$	591		$	1,143			$	1,734
Year ended March 31, 2017	4,423			3,396				7,819
Three months ended June 30, 2017	1,441			4				1,445
Total	$	6,455		$	4,543			$	10,998
Cumulative charges incurred through June 30, 2017	$	61,850		$	25,793			$	87,643

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Fair Values of Assets and Liabilities (Tables) - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]

3 Months Ended

Jun. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of June 30, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	225,358		$	—	$	—		$	—	$	225,358
Time deposits and other	—			16,586		—			—		16,586
Total cash equivalents	225,358			16,586		—			—		241,944
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	119,998			64,161		—			3,389		187,548
Other(3)	21,542			2,474		—			11		24,027
Trading investments relating to long-term incentive compensation plans(4)	175,036			—		—			105		175,141
Equity method investments relating to long-term incentive compensation plans(5)	—			—		1,349			6,895		8,244
Total current investments(6)	316,576			66,635		1,349			10,400		394,960
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		813			22,658		23,471
Seed capital investments in real estate funds	—			—		27,182			—		27,182
Other proprietary fund products	—			—		1,646			13,969		15,615
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,277		3,277
Investments related to long-term incentive compensation plans	—			—		9,367			—		9,367
Other proprietary fund products	—			99		1,818			—		1,917
Derivative assets(7)(8)	3,083			—		—			—		3,083
Other investments(7)	—			—		112			—		112
Total	$	545,017		$	83,320	$	42,287		$	50,304	$	720,928
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(20,697	)	$	—	$	(20,697	)
Derivative liabilities(8)	(274		)	—		—			—		(274		)
Total	$	(274	)	$	—	$	(20,697	)	$	—	$	(20,971	)

	As of March 31, 2017
	Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Investments measured at NAV		Total
Assets:
Cash equivalents:(1)
Money market funds	$	403,585		$	—	$	—		$	—	$	403,585
Time deposits and other	—			35,835		—			—		35,835
Total cash equivalents	403,585			35,835		—			—		439,420
Trading investments of proprietary fund products and other trading investments:(2)
Seed capital investments	141,025			75,275		—			4,373		220,673
Other(3)	39,177			2,724		—			11		41,912
Trading investments relating to long-term incentive compensation plans(4)	150,576			—		—			327		150,903
Equity method investments relating to proprietary fund products and long-term incentive compensation plans:(5)
Seed capital investments	—			2,502		—			—		2,502
Investments related to long-term incentive compensation plans	—			—		1,337			6,292		7,629
Total current investments(6)	330,778			80,501		1,337			11,003		423,619
Equity method investments in partnerships and LLCs:(5)(7)
Seed capital investments(6)	—			—		752			22,712		23,464
Seed capital investments in real estate funds	—			—		26,909			—		26,909
Other proprietary fund products	—			—		1,646			15,617		17,263
Investments in partnerships and LLCs:(7)
Seed capital investments	—			—		—			3,440		3,440
Investments related to long-term incentive compensation plans	—			—		9,315			—		9,315
Other proprietary fund products	—			99		1,825			—		1,924
Derivative assets(7)(8)	2,718			—		—			—		2,718
Other investments(7)	—			—		113			—		113
Total	$	737,081		$	116,435	$	41,897		$	52,772	$	948,185
Liabilities:
Contingent consideration liabilities(9)	$	—		$	—	$	(36,810	)	$	—	$	(36,810	)
Derivative liabilities(8)	(4,522		)	—		—			—		(4,522		)
Total	$	(4,522	)	$	—	$	(36,810	)	$	—	$	(41,332	)

(1) Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds 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 purchase of the instrument and its expected realization, and are classified as Level 2.

(2) Trading investments of proprietary fund products and other trading investments consist of approximately 75% and 25% equity and debt securities, respectively, as of June 30, 2017, and approximately 79% and 21% equity and debt securities, respectively, as of March 31, 2017.

(3) Includes $12,691 and $26,854 in noncontrolling interests associated with consolidated seed investment products as of June 30, 2017 and March 31, 2017, respectively.

(4) 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.

(5) Certain of Legg Mason's equity method investments are investment companies that record underlying investments at fair value. Therefore, the fair value of these investments 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. Other equity method investments not measured at fair value on a recurring basis are excluded from the tables above.

(6) Excludes $36,026 and $28,300 of seed capital as of June 30, 2017, and March 31, 2017, respectively, which is related to Legg Mason's investments in CIVs. See Note 13.

(7) Amounts are included in Other non-current assets in the Consolidated Balance Sheets for each of the periods presented.

(8) See Note 12.

(9) See Note 3 and Note 9.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Balance as of March 31, 2017			Purchases		Sales		Redemptions/ Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net			Balance as of June 30,  2017
Assets:
Equity method investments relating to long-term incentive compensation plans	$	1,337		$	11	$	—	$	(11	)	$	—	$	12		$	1,349
Equity method investments in partnerships and LLCs:
Seed capital investments	752			—		—		—			—		61			813
Seed capital investments in real estate funds	26,909			439		—		(619		)	—		453			27,182
Other proprietary fund products	1,646			—		—		—			—		—			1,646
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	9,315			52		—		—			—		—			9,367
Other proprietary fund products	1,825			—		—		(7		)	—		—			1,818
Other investments	113			—		—		—			—		(1		)	112
	$	41,897		$	502	$	—	$	(637	)	$	—	$	525		$	42,287
Liabilities:
Contingent consideration liabilities	$	(36,810	)	$	—	n/a		$	—		n/a		$	16,113		$	(20,697	)

n/a - not applicable

	Balance as of March 31, 2016			Purchases		Sales		Redemptions/Settlements/ Other			Transfers		Realized and unrealized gains/(losses), net		Balance as of June 30,  2016
Assets:
Trading investments of seed capital investments in proprietary fund products	$	3		$	—	$	—	$	(3	)	$	—	$	—	$	—
Equity method investments relating to long-term incentive compensation plans	—			2,553		—		(22		)	—		56		2,587
Equity method investments in partnerships and LLCs:
Seed capital investments in real estate funds	—			24,263		—		(132		)	—		382		24,513
Seed capital investments	627			—		—		—			—		17		644
Investments in partnerships and LLCs:
Investments related to long-term incentive compensation plans	7,501			—		—		—			—		—		7,501
Other proprietary fund products	4,807			—		—		(1,000		)	—		3		3,810
Other investments	83			—		—		—			—		7		90
	$	13,021		$	26,816	$	—	$	(1,157	)	$	—	$	465	$	39,145
Liabilities:
Contingent consideration liabilities	$	(84,585	)	$	—	n/a		$	—		n/a		$	21,662	$	(62,923	)

Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block]

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments		Remaining Term
Funds-of-hedge funds	Global macro, fixed income, long/short equity, natural resources, systematic, emerging market, European hedge	$	17,962	(1)	$	18,537	n/a		n/a
Hedge funds	Fixed income - developed market, event driven, fixed income - hedge, relative value arbitrage, European hedge	9,367			10,107		$	20,000	n/a
Private equity funds	Long/short equity	15,907		(2)	17,612		7,071		Up to 12 years
Equity method	Long/short fixed income	6,895			6,292		n/a		n/a
Other	Various	173			224		n/a		Various (3)
Total		$	50,304		$	52,772	$	27,071

n/a - not applicable

(1) Liquidation restrictions: 1% daily redemption, 12% monthly redemption, 10% quarterly redemption, and 77% are not subject to redemption or are not currently redeemable.

(2) Liquidations are expected over the remaining term.

(3) Of this balance, 34% has a remaining term of less than one year and 66% has a remaining term of 15 years.

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Fixed Assets (Tables)

3 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Components of fixed assets

	June 30, 2017			March 31, 2017
Equipment	$	162,315		$	159,102
Software	309,590			304,943
Leasehold improvements	205,068			204,551
Total cost	676,973			668,596
Less: accumulated depreciation and amortization	(520,965		)	(508,934		)
Fixed assets, net	$	156,008		$	159,662

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Components of intangible assets

	June 30, 2017			March 31, 2017
Amortizable intangible asset management contracts and other
Cost	$	374,938		$	408,025
Accumulated amortization	(199,315		)	(194,371		)
Net	175,623			213,654
Indefinite–life intangible assets
U.S. domestic mutual fund management contracts	2,106,351			2,106,351
Clarion Partners fund management contracts	505,200			505,200
EnTrustPermal fund management contracts	596,404			596,404
Other fund management contracts	547,917			542,908
Trade names	68,031			69,863
	3,823,903			3,820,726
Intangible assets, net	$	3,999,526		$	4,034,380

Estimated amortization expense

Remaining fiscal 2018	$	18,196
2019	24,678
2020	24,213
2021	23,797
2022	23,559
Thereafter	61,180
Total	$	175,623

Changes in carrying value of goodwill

	Gross Book Value			Accumulated Impairment			Net Book Value
Balance as of March 31, 2017	3,086,789			(1,161,900		)	1,924,889
Impact of excess tax basis amortization	(5,204		)	—			(5,204		)
Changes in foreign exchange rates and other	4,526			—			4,526
Balance as of June 30, 2017	$	3,086,111		$	(1,161,900	)	$	1,924,211

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Long-Term Debt (Tables)

3 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30, 2017												March 31, 2017
	Carrying Value		Fair Value Hedge Adjustment			Unamortized Discount (Premium)			Unamortized Debt Issuance Costs		Maturity Amount		Carrying Value
2.7% Senior Notes due July 2019	$	252,645	$	(3,609	)	$	223		$	741	$	250,000	$	252,980
3.95% Senior Notes due July 2024	248,325		—			320			1,355		250,000		248,265
4.75% Senior Notes due March 2026	446,901		—			—			3,099		450,000		446,812
5.625% Senior Notes due January 2044	547,880		—			(3,243		)	5,363		550,000		547,861
6.375% Junior Notes due March 2056	242,105		—			—			7,895		250,000		242,054
5.45% Junior Notes due September 2056	483,997		—			—			16,003		500,000		483,895
Total	$	2,221,853	$	(3,609	)	$	(2,700	)	$	34,456	$	2,250,000	$	2,221,867

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Stock-Based Compensation Stock Options (Tables)

3 Months Ended

Jun. 30, 2017

Share-based Compensation Arrangement by Share-based Payment Award

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

	Three Months Ended June 30,
	2017		2016
Stock options	$	2,225	$	2,242
Restricted stock and restricted stock units	16,579		14,573
Employee stock purchase plan	297		301
Affiliate management equity plans	776		19,499
Performance share units	1,185		850
Employee stock trust	6		6
Total stock-based compensation expense	$	21,068	$	37,471

Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Exercise Price Per Share		Number of Shares		Weighted-Average Exercise Price Per Share
Options outstanding at March 31	4,593		38.15		4,506		$	38.48
Granted	421		37.64		753		31.31
Exercised	(256	)	28.99		(56	)	29.04
Canceled/forfeited	(44	)	43.73		(42	)	43.93
Options outstanding at June 30	4,714		$	38.55	5,161		$	37.49

Management [Member]

Share-based Compensation Arrangement by Share-based Payment Award

Assumptions used to determine the weighted-average fair value of option grants

	Three Months Ended June 30,
	2017		2016
Expected dividend yield	1.70	%	1.45	%
Risk-free interest rate	1.89	%	1.25	%
Expected volatility	26.79	%	30.95	%
Expected life (in years)	5.09		5.02

Key Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award

Assumptions used to determine the weighted-average fair value of option grants

	2017		2016
Expected dividend yield	2.96	%	2.87	%
Risk-free interest rate	1.47	%	0.89	%
Expected volatility	27.73	%	26.01	%

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Stock-Based Compensation Restricted Stock (Tables)

3 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted stock and restricted stock unit transactions

	Three Months Ended June 30,
	2017				2016
	Number of Shares		Weighted-Average Grant Date Value		Number of Shares		Weighted-Average Grant Date Value
Unvested shares at March 31	3,321		38.92		3,058		$	43.34
Granted	1,441		37.64		1,642		31.24
Vested	(1,281	)	39.41		(1,164	)	38.88
Canceled/forfeited	(32	)	38.89		(63	)	42.11
Unvested shares at June 30	3,449		$	38.20	3,473		$	39.11

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Commitments and Contingencies (Tables)

3 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Future Minimum Rental Payments For Operating Leases

Remaining fiscal 2018	$	96,134
2019	112,339
2020	99,336
2021	90,007
2022	88,201
Thereafter	187,773
Total(1)	$	673,790

Lease Liability Reserve Roll Forward [Table Text Block]

Balance as of March 31, 2016	$	52,240
Accrued charges for vacated and subleased space (1) (2)	9,454
Payments, net	(16,531		)
Adjustments and other	(5,475		)
Balance as of March 31, 2017	39,688
Payments, net	(3,273		)
Adjustments and other	316
Balance as of June 30, 2017	$	36,731

(1) Included in Occupancy expense in the Consolidated Statements of Income

(2) Includes $9,069 related to the restructuring of Permal for the combination with EnTrust

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

	RARE Infrastructure			Martin Currie			QS Investors			Other(2)			Total
Acquisition Date	October 21, 2015			October 1, 2014			May 30, 2014			Various
Maximum Remaining Contingent Consideration(1)	$	81,426		$	423,075		$	23,400		$	5,506		$	533,407
Contingent Consideration Liability
Balance as of March 31, 2016	$	27,145		$	41,222		$	13,749		$	2,469		$	84,585
Initial purchase accounting accrual	—			—			—			2,000			2,000
Payment	—			—			(6,587		)	—			(6,587		)
Fair value adjustments	(10,000		)	(25,000		)	(2,500		)	(2,000		)	(39,500		)
Foreign exchange and accretion	299			(4,204		)	179			38			(3,688		)
Balance as of March 31, 2017	17,444			12,018			4,841			2,507			36,810
Fair value adjustments	(15,250		)	—			(1,300		)	—			(16,550		)
Foreign exchange and accretion	(66		)	462			42			(1		)	437
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697
Balance Sheet Classification
Current Contingent consideration	$	—		$	12,480		$	—		$	2,506		$	14,986
Non-current Contingent consideration	2,128			—			3,583			—			5,711
Balance as of June 30, 2017	$	2,128		$	12,480		$	3,583		$	2,506		$	20,697

(1) Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

(2) Includes amounts related to the acquisition of Financial Guard on August 17, 2016 and PK Investments on December 31, 2015.

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Earnings Per Share (Tables)

3 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30,
	2017		2016
Basic weighted-average shares outstanding for EPS	94,869		104,465
Potential common shares:
Dilutive employee stock options	428		212
Diluted weighted-average shares outstanding for EPS	95,297		104,677
Net Income Attributable to Legg Mason, Inc.	$	50,920	$	33,452
Less: Earnings (distributed and undistributed) allocated to participating securities	1,736		1,051
Net Income (Distributed and Undistributed) Allocated to Shareholders (Excluding Participating Securities)	$	49,184	$	32,401
Net Income per share Attributable to Legg Mason, Inc. Shareholders
Basic	$	0.52	$	0.31
Diluted	$	0.52	$	0.31

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Noncontrolling Interests Rollforward (Tables)

3 Months Ended

Jun. 30, 2017

Noncontrolling Interest [Line Items]

Net Income (Loss) Attributable to Noncontrolling Interests [Table Text Block]

	Three Months Ended June 30,
	2017		2016
Net income attributable to redeemable noncontrolling interests	$	10,356	$	10,037
Net income attributable to nonredeemable noncontrolling interests	2,261		1,851
Total	$	12,617	$	11,888

Redeemable Noncontrolling Interest [Table Text Block]

	Redeemable noncontrolling interests
	EnTrust-Permal			Clarion Partners			RARE Infrastructure			Other			Total
Balance as of March 31, 2017	$	404,852		$	113,173		$	68,747		$	4,482		$	591,254
Net income attributable to noncontrolling interests	4,595			3,233			1,823			57			9,708
Distributions	(5,884		)	(7,806		)	(2,098		)	(125		)	(15,913		)
Foreign exchange	—			—			333			—			333
Change in estimated redemption value	—			613			—			—			613
Balance as of June 30, 2017	$	403,563		$	109,213		$	68,805		$	4,414		$	585,995

	Redeemable noncontrolling interests
	EnTrust-Permal		Clarion Partners		RARE Infrastructure			Other			Total
Balance as of March 31, 2016	$	—	$	—	$	67,155		$	1,767		$	68,922
Net income attributable to noncontrolling interests	4,159		2,244		1,098			56			7,557
Subscriptions	—		—		—			2,604			2,604
Distributions	—		—		(1,317		)	(187		)	(1,504		)
Business acquisitions	403,200		105,300		—			—			508,500
Foreign exchange	—		—		(1,998		)	—			(1,998		)
Balance as of June 30, 2016	$	407,359	$	107,544	$	64,938		$	4,240		$	584,081

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2017	$	58,470	$	591,254		$	28,048	$	677,772		$	27,798
Net income attributable to noncontrolling interests	648		9,708			—		10,356			2,261
Net subscriptions (redemptions) and other	10,266		—			—		10,266			—
Distributions	—		(15,913		)	—		(15,913		)	(1,818		)
Foreign exchange	—		333			—		333			—
Vesting/change in estimated redemption value	—		613			776		1,389			—
Balance as of June 30, 2017	$	69,384	$	585,995		$	28,824	$	684,203		$	28,241

	Redeemable noncontrolling interests
	Consolidated investment vehicles(1) and other		Affiliate
			Noncontrolling Interests			Management equity plans		Total			Nonredeemable noncontrolling interests(2)
Balance as of March 31, 2016	$	94,136	$	68,922		$	12,727	$	175,785		$	22,202
Net income attributable to noncontrolling interests	2,480		7,557			—		10,037			1,851
Net subscriptions (redemptions) and other(3)	18,767		2,604			—		21,371			—
Distributions	—		(1,504		)	—		(1,504		)	(802		)
Grants (settlements), net	—		—			6,120		6,120			—
Business acquisition	—		508,500			—		508,500			—
Foreign exchange	—		(1,998		)	—		(1,998		)	—
Vesting/change in estimated redemption value	—		—			4,251		4,251			—
Balance as of June 30, 2016	$	115,383	$	584,081		$	23,098	$	722,562		$	23,251

(1) Principally related to VIE and seeded investment products.

(2) Related to Royce management equity plan.

(3) Includes the impact related to the adoption of updated consolidation accounting guidance.

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Derivatives and Hedging (Tables)

3 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value [Table Text Block]

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,757	$	(1,795	)	$	1,962	$	—	$	—	$	1,962
Futures contracts relating to:
Seed capital investments	—		—			—		853		3,834		4,687
Total return swaps	—		—			—		268		574		842
Total futures contracts	—		—			—		1,121		4,408		5,529
Total derivative instruments not designated as hedging instruments	$	3,757	$	(1,795	)	$	1,962	$	1,121	$	4,408	$	7,491

								Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized assets		Gross amounts offset in the Balance Sheet			Net amount of derivative assets presented in the Balance Sheet		Financial instruments		Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	3,470	$	(928	)	$	2,542	$	—	$	—	$	2,542
Futures contracts relating to seed capital investments	—		—			—		176		2,878		3,054
Total derivative instruments not designated as hedging instruments	$	3,470	$	(928	)	$	2,542	$	176	$	2,878	$	5,596

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of June 30, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(187	)	$	20	$	(167	)	$	—		$	—	$	(167	)
Total return swaps	—			—		—			(107		)	1,275		1,168
Total derivative instruments not designated as hedging instruments	$	(187	)	$	20	$	(167	)	$	(107	)	$	1,275	$	1,001

									Gross amounts not offset in the Balance Sheet
	Gross amounts of recognized liabilities			Gross amounts offset in the Balance Sheet		Net amount of derivative liabilities presented in the Balance Sheet			Financial instruments			Cash collateral		Net amount as of March 31, 2017
Derivative instruments not designated as hedging instruments
Currency forward contracts	$	(3,641	)	$	751	$	(2,890	)	$	—		$	—	$	(2,890	)
Futures contracts relating to seed capital investments	—			—		—			(1,632		)	4,155		2,523
Total derivative instruments not designated as hedging instruments	$	(3,641	)	$	751	$	(2,890	)	$	(1,632	)	$	4,155	$	(367	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

		Three Months Ended June 30,
		2017					2016
	Income Statement Classification	Gains		Losses			Gains		Losses
Derivatives not designated as hedging instruments
Currency forward contracts relating to:
Operating activities	Other expense	$	4,712	$	(2,572	)	$	10,530	$	(7,983	)
Seed capital investments	Other non-operating income (expense)	411		(1,049		)	1,334		(856		)
Futures contracts relating to:
Seed capital investments	Other non-operating income (expense)	848		(5,500		)	1,751		(3,391		)
Total return swaps	Other non-operating income (expense)	267		—			—		—
Total return swap	Other non-operating income (expense)	—		(107		)	—		—
Total gain (loss) from derivatives not designated as hedging instruments		6,238		(9,228		)	13,615		(12,230		)
Derivative designated as a cash flow hedge (See Note 7)
Interest rate swap	Interest expense	—		—			—		(527		)
Total		$	6,238	$	(9,228	)	$	13,615	$	(12,757	)

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Variable Interest Entities and Consolidation of Investment Vehicles (Tables)

3 Months Ended

Jun. 30, 2017

Noncontrolling Interest [Line Items]

Condensed Balance Sheet [Table Text Block]

	June 30, 2017									March 31, 2017
	Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals		Balance Before Consolidation of CIVs and Other(1)		CIVs and Other(1)		Eliminations			Consolidated Totals
Current Assets	$	1,541,578	$	97,091	$	(33,068	)	$	1,605,601	$	1,749,959	$	77,406	$	(25,618	)	$	1,801,747
Non-current assets	6,441,831		9,968		(2,971		)	6,448,828		6,481,376		9,987		(2,695		)	6,488,668
Total Assets	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415
Current Liabilities	$	584,635	$	1,762	$	(13	)	$	586,384	$	808,664	$	736	$	(13	)	$	809,387
Non-current liabilities	2,789,069		—		—			2,789,069		2,792,084		—		—			2,792,084
Total Liabilities	3,373,704		1,762		(13		)	3,375,453		3,600,748		736		(13		)	3,601,471
Redeemable Non-controlling interests	614,819		12,691		56,693			684,203		619,302		26,853		31,617			677,772
Total Stockholders’ Equity	3,994,886		92,606		(92,719		)	3,994,773		4,011,285		59,804		(59,917		)	4,011,172
Total Liabilities and Equity	$	7,983,409	$	107,059	$	(36,039	)	$	8,054,429	$	8,231,335	$	87,393	$	(28,313	)	$	8,290,415

(1) Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

Condensed Income Statement [Table Text Block]

Consolidated Investment Vehicles [Member]

Noncontrolling Interest [Line Items]

Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block]

		Fair Value Determined Using NAV					As of June 30, 2017
Category of Investment	Investment Strategy	June 30, 2017			March 31, 2017		Unfunded Commitments	Remaining Term
Hedge funds	Global macro, fixed income, long/short equity, systematic, emerging market, U.S. and European hedge	$	23,054	(1)	$	24,734	n/a	n/a

n/a - not applicable

(1) Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

Legg Mason, Inc

Noncontrolling Interest [Line Items]

Schedule of Variable Interest Entities [Table Text Block]

	As of June 30, 2017				As of March 31, 2017
	Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)		Equity Interests on the Consolidated Balance Sheet (1)		Maximum Risk of Loss (2)
Real Estate Investment Trusts	$	12,257	$	14,760	$	11,660	$	15,763
Other investment funds	47,149		63,648		47,063		73,710
Total	$	59,406	$	78,408	$	58,723	$	89,473

(1) Amounts are related to investments in proprietary and other fund products.

(2) Includes equity investments the Company has made or is required to make and any earned but uncollected management fees.

XML

Significant Accounting Policies Consolidation (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($)	Mar. 31, 2017	Jun. 30, 2016
Variable Interest Entity
Derivative, Notional Amount	$ 20,253
Variable Interest Entity, Primary Beneficiary, Number of Collateralized Securites Vehicles	3	3	9
Number of Sponsored Investment Fund Vie	2	3	3
Employee Owned Funds	1	1	1

XML

Significant Accounting Policies Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Proceeds and Excess Tax Benefit from Share-based Compensation	$ 906
Consolidated Legg Mason, Inc. | Retained Earnings [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 24,327	$ 0

XML

Significant Accounting Policies Accumulated Other Comprehensive Income (Loss), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	$ 119
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax		$ 527

XML

Significant Accounting Policies Income Taxes (Details) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount	$ 0.010
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent	3.50%	4.80%

XML

Significant Accounting Policies Derivative Instruments (Details) $ in Thousands	Jun. 30, 2017 USD ($)
Accounting Policies [Abstract]
Derivative, Notional Amount	$ 20,253

XML

Acquisitions Purchase Price Allocations Summary (Details) £ in Thousands, AUD in Thousands, $ in Thousands		3 Months Ended				12 Months Ended
		Jun. 30, 2017 USD ($)	Jun. 30, 2016 AUD	Jun. 30, 2016 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2016 GBP (£)	Mar. 31, 2016 USD ($)	Mar. 31, 2017 USD ($)	May 02, 2016 USD ($)	Apr. 13, 2016 USD ($)	Oct. 21, 2015 USD ($)	Oct. 01, 2014 USD ($)	May 30, 2014 USD ($)
Business Acquisition [Line Items]
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value				$ 508,500
RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross			AUD 296,000	213,739
Business Combination, Contingent Consideration, Liability		$ 2,128					$ 27,145	$ 17,444			$ 25,000
Business Combination, Consideration Transferred				238,739
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value											62,722
Business Combination, Total Entity Value											301,461
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents											9,667
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities											0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables											6,612
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles											67,877
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											673
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other											(10,605)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other											(3,948)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities											0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent											(58,619)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net											139,178
Goodwill											162,283
Contingent consideration fair value adjustments		(15,316)
Martin Currie [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross						£ 125,000	202,577
Business Combination, Contingent Consideration, Liability		12,480					41,222	12,018				$ 75,211
Business Combination, Consideration Transferred							277,788
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value												0
Business Combination, Total Entity Value												277,788
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents												29,389
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities												0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables												0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles												15,234
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												784
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other												0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other												(4,388)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities												(32,433)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent												(31,537)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net												119,500
Goodwill												158,288
QS Investors [Domain]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross					$ 11,000
Business Combination, Contingent Consideration, Liability		3,583					13,749	4,841					$ 13,370
Business Combination, Consideration Transferred					$ 24,370
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value													0
Business Combination, Total Entity Value													24,370
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents													441
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities													3,281
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables													2,699
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles													7,060
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment													599
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other													0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other													(6,620)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities													0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent													0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net													7,460
Goodwill													16,910
Contingent consideration fair value adjustments		(1,258)
EnTrust Capital [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross				400,000
Business Combination, Contingent Consideration, Liability									$ 0
Business Combination, Consideration Transferred				540,000
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	[1]								247,700
Business Combination, Total Entity Value									787,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents									8,236
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities									16,220
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables									20,820
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles									65,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									4,479
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other									1,030
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other									(8,823)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities									0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent									0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net									377,162
Goodwill									410,538
Clarion Partners [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross				631,476
Business Combination, Contingent Consideration, Liability										$ 0
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures				11,121
Business Combination, Consideration Transferred				642,597
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	[1]									105,300
Business Combination, Total Entity Value										747,897
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	[1]									25,307
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities	[1]									22,285
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	[1]									53,657
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	[1]									102,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	[1]									8,255
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	[1]									(25,585)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	[1]									(10,579)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	[1]									0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent	[1]									(36,788)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	[1]									667,652
Goodwill	[1]									80,245
Permal [Member]
Business Acquisition [Line Items]
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value	[1]								140,000
Trade Names | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets											4,766
Trade Names | Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets												7,130
Trade Names | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets													0
Trade Names | EnTrust Capital [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets									7,400
Trade Names | Clarion Partners [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	[1]									23,100
Other Fund Management Contracts [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets											$ 122,755
Other Fund Management Contracts [Member] | Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets												$ 135,321
Other Fund Management Contracts [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets													$ 0
Other Fund Management Contracts [Member] | EnTrust Capital [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets									262,300
Other Fund Management Contracts [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	[1]									$ 505,200
EnTrustPermal [Member]
Business Acquisition [Line Items]
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value									$ 403,200
Consolidated Legg Mason, Inc.
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability		20,697					$ 84,585	36,810
Goodwill		1,924,211						$ 1,924,889
Contingent consideration fair value adjustments		(16,550)		(18,000)
Consolidated Legg Mason, Inc. | Retained Earnings [Member] | EnTrust Capital [Member]
Business Acquisition [Line Items]
Reclassification from Retained Earnings to Noncontrolling Interests		0		(15,500)
Consolidated Legg Mason, Inc. | Additional Paid-in Capital
Business Acquisition [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		20,710		25,860
Consolidated Legg Mason, Inc. | Additional Paid-in Capital | Clarion Partners [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 0		$ 11,121

[1] (1)Post combination EnTrustPermal noncontrolling interest of $403,200 also includes a fair value reclassification of $15,500 from retained earnings.

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Acquisitions EnTrust Capital Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	May 02, 2016	Mar. 22, 2016	Mar. 14, 2016
Business Acquisition [Line Items]
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	$ 119
EnTrust Capital [Member]
Business Acquisition [Line Items]
Assets Under Management			$ 9,600,000
Assets Under Advisement, Carrying Amount			$ 2,000,000
Payments to Acquire Businesses, Gross		$ 400,000
Noncontrolling Interest, Ownership Percentage by Parent			65.00%
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Business Acquisition [Line Items]
Long-term Debt, Gross	2,250,000
EnTrust Capital [Member]
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs		6,732
Revenues		$ 18,726
Gregg S. Hymowitz [Member]
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			35.00%
6.375% Junior Notes [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					6.375%
6.375% Junior Notes [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Business Acquisition [Line Items]
Long-term Debt, Gross	250,000
4.75% Senior Notes [Member]
Business Acquisition [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				4.75%
4.75% Senior Notes [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Business Acquisition [Line Items]
Long-term Debt, Gross	$ 450,000

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Acquisitions EnTrust Capital Fair Value Inputs (Details)	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016
Fund management contracts [Member] | EnTrust Capital [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			8 years
Fund management contracts [Member] | EnTrust Capital [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Low End of Range		(1.00%)
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		5.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		4.00%
Fair Value Inputs, Discount Rate		14.50%
Trade Names | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average	8.00%
Fair Value Inputs, Discount Rate	16.50%
Trade Names | EnTrust Capital [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Low End of Range		6.00%
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		14.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		9.00%
Fair Value Inputs, Discount Rate		14.50%
Asset Management Contracts | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate	16.50%
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	(20.00%)
Asset Management Contracts | EnTrust Capital [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Discount Rate			13.50%
Fair Value Inputs, Long-term AUM Growth Rate			10.00%
Fair Value Inputs, Attrition Rate			(13.00%)

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Acquisitions EnTrustPermal Restructuring (Details) - EnTrustPermal [Member] - USD ($) $ in Thousands		3 Months Ended			12 Months Ended		18 Months Ended
		Jun. 30, 2017	Mar. 31, 2016		Mar. 31, 2017		Jun. 30, 2017	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Valuation Allowances and Reserves, Balance			$ 7,212		$ 9,069
Payments for Restructuring		$ 5,159	24,035		41,619
Restructuring Reserve		5,832	17,527		9,874		$ 5,832	$ 0
Restructuring Reserve, Accrual Adjustment		1,117	41,562		33,966
Restructuring Reserve, Settled without Cash	[1]	1,445	1,734		7,819		10,998
Restructuring and Related Cost, Cost Incurred to Date		87,643					87,643
Restructuring and Related Cost, Incurred Cost		2,562
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring		4,118	21,938		29,211
Restructuring Reserve		128	9,643		3,323		128	0
Restructuring Reserve, Accrual Adjustment		923	31,581		22,891
Restructuring Reserve, Settled without Cash	[1]	1,441	591		4,423		6,455
Restructuring and Related Cost, Cost Incurred to Date		61,850					61,850
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring		1,041	2,097		12,408
Restructuring Reserve		5,704	7,884		6,551		5,704	$ 0
Restructuring Reserve, Accrual Adjustment		194	9,981	[2]	11,075	[2]
Restructuring Reserve, Settled without Cash	[1]	4	$ 1,143		$ 3,396		4,543
Restructuring and Related Cost, Cost Incurred to Date		25,793					25,793
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost		3,000					3,000
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost		$ 4,000					$ 4,000

[1] (2) Includes stock-based compensation expense and accelerated fixed asset depreciation.

[2] (1) Includes lease loss reserve for space permanently abandoned of $9,069 for the year ended March 31, 2017, and $7,212 for the year ended March 31, 2016.

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Acquisitions Clarion Partners Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Apr. 13, 2016
Clarion Partners [Member]
Business Acquisition [Line Items]
Assets Under Management			$ 41,500,000
Noncontrolling Interest, Ownership Percentage by Parent			82.00%
Payments to Acquire Businesses, Gross	$ 631,476
Business Combination, Consideration Transferred, Other	36,772
Co-Investments	16,210
Clarion Management Team [Member]
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			18.00%
Clarion Partners [Member]
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs	10,383
Revenues	$ 56,691
Fund management contracts [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		10 years

XML

Acquisitions Clarion Partners Fair Value Inputs (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016
Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Inputs, Long-term EBITDA Growth Rate		6.00%
Fair Value Assumptions, Risk Free Interest Rate		2.30%
Legg Mason, Inc | Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Assumptions, Expected Volatility Rate		38.00%
Clarion Partners [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Assumptions, Expected Volatility Rate		30.00%
Restricted Stock [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Deferred Compensation Arrangement with Individual, Shares Issued		716
Stock Issued During Period, Value, Restricted Stock Award, Gross		$ 11,121
Fund management contracts [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			10 years
Fair Value, Inputs, Level 3 [Member] | Fund management contracts [Member] | Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Low End of Range		6.00%
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		20.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		6.00%
Fair Value Inputs, Discount Rate		13.50%
Fair Value, Inputs, Level 3 [Member] | Trade Names
Business Acquisition [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average	8.00%
Fair Value Inputs, Discount Rate	16.50%
Fair Value, Inputs, Level 3 [Member] | Trade Names | Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Low End of Range		5.00%
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		17.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		6.00%
Fair Value Inputs, Discount Rate		13.50%
Fair Value, Inputs, Level 3 [Member] | Asset Management Contracts
Business Acquisition [Line Items]
Fair Value Inputs, Discount Rate	16.50%
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	(20.00%)
Fair Value, Inputs, Level 3 [Member] | Asset Management Contracts | Clarion Partners [Member]
Business Acquisition [Line Items]
Fair Value Inputs, Discount Rate			13.40%
Fair Value Inputs, Long-term AUM Growth Rate			7.00%
Fair Value Inputs, Attrition Rate			(10.00%)

XML

Acquisitions Business Acquisition - Proforma Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2016 USD ($) $ / shares
Business Combinations [Abstract]
Business Acquisition, Pro Forma Revenue | $	$ 717,516
Business Acquisition, Pro Forma Net Income (Loss) | $	$ 68,281
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Basic | $ / shares	$ 0.63
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax, Per Share, Diluted | $ / shares	$ 0.63

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Acquisitions RARE Acquisition (Details) AUD in Thousands, $ in Thousands	3 Months Ended			12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 AUD	Jun. 30, 2016 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2017 AUD	Jun. 30, 2017 USD ($)		Mar. 31, 2016 USD ($)	Oct. 21, 2015 USD ($)
Business Acquisition [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding				$ 40,000
RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability									$ 25,000
Assets Under Management									$ 6,800,000
Noncontrolling Interest, Ownership Percentage by Parent									75.00%
Payments to Acquire Businesses, Gross		AUD 296,000	$ 213,739
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					AUD 106,000	$ 81,426	[1]
Business Combination, Contingent Consideration, Liability				17,444		2,128		$ 27,145	$ 25,000
Contingent consideration fair value adjustments	$ (15,316)
Business Combination, Contingent Consideration, Liability, Current				7,791		0
Business Combination, Contingent Consideration, Liability, Noncurrent				9,653		$ 2,128
RARE Management Team [Member]
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners									15.00%
Outside Investors
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners									10.00%
Change in Input Assumptions [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	(15,250)			(10,000)
Other changes in Fair Value [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	$ (66)			$ 299

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

XML

Acquisitions RARE Acquisition - Fair Value Assumptions (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016
Fund management contracts [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			12 years
Fair Value, Inputs, Level 3 [Member] | Fund management contracts [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		10.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		7.00%
Fair Value Inputs, Discount Rate		16.50%
Fair Value, Inputs, Level 3 [Member] | Trade Names
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average	8.00%
Fair Value Inputs, Discount Rate	16.50%
Fair Value, Inputs, Level 3 [Member] | Trade Names | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		10.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		7.00%
Fair Value Inputs, Discount Rate		16.50%
Fair Value, Inputs, Level 3 [Member] | Asset Management Contracts
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Inputs, Discount Rate	16.50%
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	(20.00%)
Fair Value, Inputs, Level 3 [Member] | Asset Management Contracts | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Inputs, Discount Rate			16.50%
Fair Value Inputs, Long-term AUM Growth Rate			7.00%
Fair Value Inputs, Attrition Rate			(8.00%)
Performance Fees [Member] | Fair Value, Inputs, Level 3 [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average			3.00%
Earn-out Payments [Member] | Fair Value, Inputs, Level 3 [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Inputs, Discount Rate			1.90%
Assets Under Management [Member] | Fair Value, Inputs, Level 3 [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average			7.00%
Fair Value Inputs, Discount Rate			6.50%
Fair Value Assumptions, Weighted Average Volatility Rate			20.00%
Consolidated Legg Mason, Inc.
Business Acquisition, Contingent Consideration [Line Items]
Impairment of Intangible Assets	$ 34,000	$ 0
Trade Names
Business Acquisition, Contingent Consideration [Line Items]
Impairment of Intangible Assets	2,000
Customer Contracts [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Impairment of Intangible Assets	$ 32,000

XML

Acquisitions Martin Currie Acquisition (Details) £ in Thousands, AUD in Thousands, $ in Thousands	3 Months Ended				12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 AUD	Jun. 30, 2016 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2016 GBP (£)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 AUD	Jun. 30, 2017 GBP (£)	Jun. 30, 2017 USD ($)		Oct. 21, 2015 USD ($)	Oct. 01, 2014 USD ($)	May 30, 2014 USD ($)
QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability, Current										$ 0
Business Combination, Contingent Consideration, Liability					$ 4,841		$ 13,749			3,583				$ 13,370
Payments to Acquire Businesses, Gross				$ 11,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High										23,400
Contingent consideration fair value adjustments	$ (1,258)
RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability, Current					7,791					0
Assets Under Management												$ 6,800,000
Business Combination, Contingent Consideration, Liability					17,444		27,145			2,128		$ 25,000
Payments to Acquire Businesses, Gross		AUD 296,000	$ 213,739
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High								AUD 106,000		81,426	[1]
Contingent consideration fair value adjustments	(15,316)
Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability, Current										12,480
Business Combination, Contingent Consideration, Liability					12,018		41,222			12,480			$ 75,211
Payments to Acquire Businesses, Gross						£ 125,000	$ 202,577
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High									£ 325,000	$ 423,075	[1]
Change in Input Assumptions [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	(1,300)				(2,500)
Change in Input Assumptions [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	(15,250)				(10,000)
Change in Input Assumptions [Member] | Martin Currie [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	0				(25,000)
Other changes in Fair Value [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	42				179
Other changes in Fair Value [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	(66)				299
Other changes in Fair Value [Member] | Martin Currie [Member]
Business Acquisition [Line Items]
Contingent consideration fair value adjustments	$ 462				$ (4,204)

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

XML

Acquisitions Martin Currie Acquisition - Fair Value Assumptions (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2016
Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	$ 0
Fund management contracts [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		12 years
Fund management contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		25.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		11.00%
Fair Value Inputs, Discount Rate		15.00%
Asset Management Contracts | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	16.50%
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	(20.00%)
Asset Management Contracts | Fair Value, Inputs, Level 3 [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		15.00%
Fair Value Inputs, Long-term AUM Growth Rate		6.00%
Fair Value Inputs, Attrition Rate		(17.00%)
Assets Under Management [Member] | Fair Value, Inputs, Level 3 [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average		14.00%
Fair Value Inputs, Discount Rate		13.00%
Fair Value Assumptions, Weighted Average Volatility Rate		18.80%
Performance Fees [Member] | Fair Value, Inputs, Level 3 [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average		15.00%
Fair Value Inputs, Discount Rate		15.00%
Earn-out Payments [Member] | Fair Value, Inputs, Level 3 [Member] | Martin Currie [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		1.30%

XML

Acquisitions Martin Currie (Pension Details) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	$ 119
Martin Currie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	5.40%	5.40%
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	$ 25	$ 28
Defined Benefit Plan, Fair Value of Plan Assets	62,893		$ 59,623
Defined Benefit Plan, Benefit Obligation	99,802		97,137
Defined Benefit Plan, Funded (Unfunded) Status of Plan	(36,909)		(37,514)
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax	(17,202)		$ (16,681)
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 1,919
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.70%	2.70%
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	$ 0
Fair Value, Inputs, Level 2 [Member] | Bonds [Member] | Martin Currie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	34.00%		35.00%
Defined Benefit Plan, Target Allocation Percentage	0.4
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | Martin Currie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	1.00%
Fair Value, Inputs, Level 1 [Member] | Equity [Member] | Martin Currie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Actual Plan Asset Allocations	65.00%		65.00%
Defined Benefit Plan, Target Allocation Percentage	0.6

XML

Acquisitions Martin Currie - Other Acquisitions (Details) - PK Investments [Member] - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2016	Jun. 30, 2017	Mar. 31, 2017
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 4,981
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	[1]		$ 2,506
Goodwill				$ 827
Other Fund Management Contracts [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets				$ 6,619

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

XML

Acquisitions QS Investors Acquisition (Details) £ in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2016 GBP (£)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 GBP (£)	Jun. 30, 2017 USD ($)		Aug. 31, 2016 USD ($)	Oct. 01, 2014 USD ($)	May 30, 2014 USD ($)
Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability			$ 12,018		$ 41,222		$ 12,480			$ 75,211
Payments to Acquire Businesses, Gross				£ 125,000	202,577
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High						£ 325,000	423,075	[1]
QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability			4,841		$ 13,749		3,583				$ 13,370
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 1,258
Payments to Acquire Businesses, Gross		$ 11,000
Business Acquisition, Preacquisition Contingency, Amount of Settlement									$ (6,587)
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High							23,400
Contingent payment due on second anniversary of acquisition | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High							3,400
Contingent payment due on fourth anniversary of acquisition [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High							$ 20,000
Other changes in Fair Value [Member] | Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(462)		4,204
Other changes in Fair Value [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(42)		(179)
Change in Input Assumptions [Member] | Martin Currie [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0		25,000
Change in Input Assumptions [Member] | QS Investors [Domain]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 1,300		$ 2,500

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

XML

Acquisitions QS Investors Acquisition - Fair Value Assumptions (Details) - QS Investors [Domain]	12 Months Ended
	Mar. 31, 2016
Fund management contracts [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Fair Value, Inputs, Level 3 [Member] | Fund management contracts [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Attrition Rate	10.00%
Fair Value Inputs, Discount Rate	15.00%
Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	0.00%
Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	10.00%
Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Long-term Revenue Growth Rate	6.00%
Contingent payment due on second anniversary of acquisition | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	1.20%
Contingent payment due on fourth anniversary of acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liability
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	2.10%

XML

Acquisitions Financial Guard Acquisition (Details) - Financial Guard LLC [Member] - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Aug. 17, 2016
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent			82.00%
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	[1]	$ 3,000
Goodwill	[2]		$ 11,995
Other Commitment		5,000
Other Commitment, Amount Paid		$ 2,500

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

[2] (1)Post combination EnTrustPermal noncontrolling interest of $403,200 also includes a fair value reclassification of $15,500 from retained earnings.

XML

Acquisitions Precidian Acquisition (Details) - Precidian Investments [Member]	Jan. 22, 2016
Business Acquisition [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	20.00%
Noncontrolling Interest, Ownership Percentage by Parent	75.00%

XML

Fair Values of Assets and Liabilities by Level (Details 1) - USD ($) $ in Thousands		Jun. 30, 2017		Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Proprietary Fund Products Equity Securities		75.00%		79.00%
Proprietary Fund Products Debt Securities		25.00%		21.00%
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds, at Carrying Value	[1]	$ 225,358		$ 403,585
Time Deposits, at Carrying Value	[1]	16,586		35,835
Cash and Cash Equivalents, Fair Value Disclosure	[1]	241,944		439,420
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2],[3]	3,083		2,718
Other Investments	[2]	112		113
Assets, Fair Value Disclosure		720,928		948,185
Short-term Investments	[4]	394,960		423,619
Business Combination, Contingent Consideration, Liability	[5]	(20,697)		(36,810)
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		(274)	[2]	(4,522)	[3]
Liabilities, Fair Value Disclosure, Recurring		(20,971)		(41,332)
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds, at Carrying Value	[1]	225,358		403,585
Time Deposits, at Carrying Value	[1]	0		0
Cash and Cash Equivalents, Fair Value Disclosure	[1]	225,358		403,585
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2],[3]	3,083		2,718
Other Investments	[2]	0		0
Assets, Fair Value Disclosure		545,017		737,081
Short-term Investments	[4]	316,576		330,778
Business Combination, Contingent Consideration, Liability	[5]	0		0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		(274)	[2]	(4,522)	[3]
Liabilities, Fair Value Disclosure, Recurring		(274)		(4,522)
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds, at Carrying Value	[1]	0		0
Time Deposits, at Carrying Value	[1]	16,586		35,835
Cash and Cash Equivalents, Fair Value Disclosure	[1]	16,586		35,835
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2],[3]	0		0
Other Investments	[2]	0		0
Assets, Fair Value Disclosure		83,320		116,435
Short-term Investments	[4]	66,635		80,501
Business Combination, Contingent Consideration, Liability	[5]	0		0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		0	[2]	0	[3]
Liabilities, Fair Value Disclosure, Recurring		0		0
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds, at Carrying Value	[1]	0		0
Time Deposits, at Carrying Value	[1]	0		0
Cash and Cash Equivalents, Fair Value Disclosure	[1]	0		0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2],[3]	0		0
Other Investments	[2]	112		113
Assets, Fair Value Disclosure		42,287		41,897
Short-term Investments	[4]	1,349		1,337
Business Combination, Contingent Consideration, Liability	[5]	(20,697)		(36,810)
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		0	[2]	0	[3]
Liabilities, Fair Value Disclosure, Recurring		(20,697)		(36,810)
Consolidated Investment Vehicles [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term Investments		81,401		49,901
Consolidated Investment Vehicles [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		67,241		33,991
Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6]	187,548		220,673
Equity Method Investments, Fair Value Disclosure	[7]			2,502
Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6]	119,998		141,025
Equity Method Investments, Fair Value Disclosure	[7]			0
Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6]	64,161		75,275
Equity Method Investments, Fair Value Disclosure	[7]			2,502
Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6]	0		0
Equity Method Investments, Fair Value Disclosure	[7]			0
Proprietary Funds [Member] | Consolidated Investment Vehicles [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		36,026		28,300
Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6],[8]	24,027		41,912
Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6],[8]	21,542		39,177
Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6],[8]	2,474		2,724
Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6],[8]	0		0
Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[9]	175,141		150,903
Equity Method Investments, Fair Value Disclosure	[7]	8,244		7,629
Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[9]	175,036		150,576
Equity Method Investments, Fair Value Disclosure	[7]	0		0
Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[9]	0		0
Equity Method Investments, Fair Value Disclosure	[7]	0		0
Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[9]	0		0
Equity Method Investments, Fair Value Disclosure	[7]	1,349		1,337
Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[4],[7]	15,615
Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[4],[7]	0
Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[4],[7]	0
Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[4],[7]	1,646
Other Noncurrent Assets [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	23,471	[4]	23,464
Cost Method Investments, Fair Value Disclosure	[2]	3,277		3,440
Other Noncurrent Assets [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	0	[4]	0
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	0	[4]	0
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	813	[4]	752
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Real Estate Investment [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	27,182		26,909
Other Noncurrent Assets [Member] | Real Estate Investment [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	0		0
Other Noncurrent Assets [Member] | Real Estate Investment [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	0		0
Other Noncurrent Assets [Member] | Real Estate Investment [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	27,182		26,909
Other Noncurrent Assets [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	1,917		1,924
Other Noncurrent Assets [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	99		99
Other Noncurrent Assets [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	1,818		1,825
Other Noncurrent Assets [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	9,367		9,315
Other Noncurrent Assets [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Other Noncurrent Assets [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	9,367		9,315
Other Noncurrent Assets [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]			17,263
Other Noncurrent Assets [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]			0
Other Noncurrent Assets [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]			0
Other Noncurrent Assets [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]			1,646
Consolidated Investment Vehicles [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities		12,691		26,854
Estimate of Fair Value Measurement [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds, at Carrying Value	[1]	0		0
Time Deposits, at Carrying Value	[1]	0		0
Cash and Cash Equivalents, Fair Value Disclosure	[1]	0		0
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	[2],[3]	0		0
Other Investments	[2]	0		0
Assets, Fair Value Disclosure		50,304		52,772
Short-term Investments	[4]	10,400		11,003
Business Combination, Contingent Consideration, Liability	[5]	0		0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		0	[2]	0	[3]
Liabilities, Fair Value Disclosure, Recurring		0		0
Estimate of Fair Value Measurement [Member] | Consolidated Investment Vehicles [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	[10]	23,054		24,734
Estimate of Fair Value Measurement [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6]	3,389		4,373
Equity Method Investments, Fair Value Disclosure	[7]			0
Estimate of Fair Value Measurement [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[6],[8]	11		11
Estimate of Fair Value Measurement [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading Securities	[9]	105		327
Equity Method Investments, Fair Value Disclosure	[7]	6,895		6,292
Estimate of Fair Value Measurement [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[4],[7]	13,969
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Proprietary Funds [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	22,658	[4]	22,712
Cost Method Investments, Fair Value Disclosure	[2]	3,277		3,440
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Real Estate Investment [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]	0		0
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	0		0
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Long Term Incentive Compensation Plans [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost Method Investments, Fair Value Disclosure	[2]	$ 0		0
Estimate of Fair Value Measurement [Member] | Other Noncurrent Assets [Member] | Other Long-term Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investments, Fair Value Disclosure	[2],[7]			$ 15,617

[1] Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash investments in actively traded money market funds 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 purchase of the instrument and its expected realization, and are classified as Level 2.

[2] Amounts are included in Other non-current assets in the Consolidated Balance Sheets for each of the periods presented.

[3] See Note 12.

[4] Excludes $36,026 and $28,300 of seed capital as of June 30, 2017, and March 31, 2017, respectively, which is related to Legg Mason's investments in CIVs. See Note 13.

[5] See Note 3 and Note 9.

[6] Trading investments of proprietary fund products and other trading investments consist of approximately 75% and 25% equity and debt securities, respectively, as of June 30, 2017, and approximately 79% and 21% equity and debt securities, respectively, as of March 31, 2017.

[7] Certain of Legg Mason's equity method investments are investment companies that record underlying investments at fair value. Therefore, the fair value of these investments 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.

[8] Includes $12,691 and $26,854 in noncontrolling interests associated with consolidated seed investment products as of June 30, 2017 and March 31, 2017, respectively.

[9] 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.

[10] Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

XML

Fair Values of Assets and Liabilities Information Regarding Proprietary Fund Products (Details 2) - Proprietary Funds [Member] $ in Thousands	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Fair Value, Option, Quantitative Disclosures [Line Items]
Investments, Fair Value Disclosure	$ 277,504	$ 305,288
Number of Proprietary Fund Products with Seed Capital Investment in Excess of One Million Dollars	55	57
Minimum value of seed investment included in count of funds with corporate investment	$ 1,000
Percentage of Investments In Proprietary Fund Products In Excess of Threshold	90.00%

XML

Fair Values of Assets and Liabilities Unrealized and Realized Gain (Loss) on Trading Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Net Realized and Unrealized Gain (Loss) on Trading Securities	$ 10,169	$ 9,587
Trading Securities, Unrealized Holding Gain	$ 2,068	$ 4,139

XML

Changes in Level 3 Assets and Liabilities (Details 3) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss)	$ 16,638	$ 22,126
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	42,287	39,145	$ 41,897	$ 13,021
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	502	26,816
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(637)	(1,157)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	525	465
Contingent Consideration Liability | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	(20,697)	(62,923)	(36,810)	(84,585)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease)	16,113	21,662
Other Long-term Investments [Member] | Other Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	112	90	113	83
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	(1)	7
Seed Capital in Proprietary Funds [Member] [Domain] | Trading Revenue [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		0		3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements		(3)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)		0
Seed Capital in Proprietary Funds [Member] [Domain] | Equity method investments in partnerships and Llc [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	813	644	752	627
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	61	17
Long Term Incentive Compensation Plans [Member] | Equity method investments in partnerships and Llc [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,349	2,587	1,337	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	11	2,553
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(11)	(22)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	12	56
Long Term Incentive Compensation Plans [Member] | Cost-method Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	9,367	7,501	9,315	7,501
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	52	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	0	0
Proprietary Funds [Member] | Equity method investments in partnerships and Llc [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,646		1,646
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	0
Proprietary Funds [Member] | Cost-method Investments [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,818	3,810	1,825	4,807
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(7)	(1,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	0	3
Real Estate Investment [Member] | Equity method investments in partnerships and Llc [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	27,182	24,513	$ 26,909	$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases	439	24,263
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(619)	(132)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease)	$ 453	$ 382

XML

Fair Values of Assets and Liabilities Transfers Between Level 1 and Level 2 (Details) - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0	$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0	0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0	0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0	0
Held-to-maturity Securities, Fair Value	$ 0	$ 0

XML

Fair Values of Assets and Liabilities NAV Investments (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017		Mar. 31, 2017
Funds-Of-Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
PercentageDailyRedemption	1.00%
Percentage of Monthly Redemption	12.00%
Percentage of Quarterly Redemption	10.00%
Percentage Not Subject to Redemption	77.00%
Other Investments [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of Redemption, Investment Funds	34.00%
Percentage of Investment of 20 Year Redemption	66.00%
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	$ 50,304		$ 52,772
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments	27,071
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Funds-Of-Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	17,962	[1]	18,537
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Hedge Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	9,367		10,107
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments	20,000
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Private Equity Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	15,907	[2]	17,612
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments	$ 7,071
Investments Remaining Term, High End of Range	12 years
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Real Estate Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	$ 6,895		6,292
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] | Other Investments [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	$ 173	[3]	$ 224
Investments Remaining Term, Category One	1 year
Investments Remaining Term, Category Two	15 years

[1] Liquidation restrictions: 1% daily redemption, 12% monthly redemption, 10% quarterly redemption, and 77% are not subject to redemption or are not currently redeemable.

[2] Liquidations are expected over the remaining term.

[3] Of this balance, 34% has a remaining term of less than one year and 66% has a remaining term of 15 years.

XML

Schedule of Fixed Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Fixed assets:
Total cost	$ 676,973	$ 668,596
Less: accumulated depreciation and amortization	(520,965)	(508,934)
Fixed assets, net	156,008	159,662
Equipment
Fixed assets:
Total cost	162,315	159,102
Software
Fixed assets:
Total cost	309,590	304,943
Leasehold improvements
Fixed assets:
Total cost	$ 205,068	$ 204,551

XML

Fixed Assets Depreciation and Amortization Expense (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment
Depreciation and amortization	$ 12,134	$ 15,215
Accelerated Depreciation, Other		$ 1,705

XML

Components Intangible Assets (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Finite-Lived and Indefinite-lived Intangible Assets
Cost	$ 374,938	$ 408,025
Accumulated amortization	(199,315)	(194,371)
Total	175,623	213,654
Indefinite-life intangible assets	3,823,903	3,820,726
U.S. Domestic Mutual Fund Management Contracts
Finite-Lived and Indefinite-lived Intangible Assets
Indefinite-life intangible assets	2,106,351	2,106,351
Other Fund Management Contracts [Member]
Finite-Lived and Indefinite-lived Intangible Assets
Indefinite-life intangible assets	547,917	542,908
Trade Names
Finite-Lived and Indefinite-lived Intangible Assets
Indefinite-life intangible assets	68,031	69,863
EnTrustPermal [Member] | Other Fund Management Contracts [Member]
Finite-Lived and Indefinite-lived Intangible Assets
Indefinite-life intangible assets	596,404	596,404
Clarion Partners [Member] | Other Fund Management Contracts [Member]
Finite-Lived and Indefinite-lived Intangible Assets
Indefinite-life intangible assets	505,200	505,200
Consolidated Legg Mason, Inc.
Finite-Lived and Indefinite-lived Intangible Assets
Intangible assets, net	$ 3,999,526	$ 4,034,380

XML

Intangible Assets and Goodwill Intangible Fair Value Assumptions (Details 2) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016
Assets Under Management [Member] | RARE Infrastructure, Ltd [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average			7.00%
Fair Value Inputs, Discount Rate			6.50%
Asset Management Contracts | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	20.00%
Fair Value Inputs, Discount Rate	16.50%
Asset Management Contracts | RARE Infrastructure, Ltd [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Long-term AUM Growth Rate			7.00%
Fair Value Inputs, Attrition Rate			8.00%
Fair Value Inputs, Discount Rate			16.50%
Trade Names | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, Average	8.00%
Fair Value Input, Royalty Rate	1.00%
Fair Value Inputs, Discount Rate	16.50%
Trade Names | Maximum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range	18.00%
Trade Names | Minimum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range	5.00%
Trade Names | RARE Infrastructure, Ltd [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Input, Projected Cash Flow Growth Rate, High End of Range		10.00%
Fair Value Input, Projected Cash Flow Growth Rate, Average		7.00%
Fair Value Inputs, Discount Rate		16.50%
Trade Names
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impairment of Intangible Assets	$ 2,000
Consolidated Legg Mason, Inc.
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impairment of Intangible Assets	34,000	$ 0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 34,000	$ 0
RARE Infrastructure, Ltd [Member] | Other Fund Management Contracts [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount	7.00%
Customer Contracts [Member] | RARE Infrastructure, Ltd [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Change in Assets Under Management	$ 1,500,000
Impairment of Intangible Assets	$ 32,000

XML

Schedule of Remaining Intangible Amortization (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017
Finite-Lived Intangible Assets Future Amortization Expense [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 18,196
2018	24,678
2020	24,213
Finite-Lived Intangible Assets, Amortization Expense, Year Four	23,797
2021	23,559
Thereafter	61,180
Total	$ 175,623	$ 213,654
Finite-Lived Intangible Asset, Useful Life	7 years 219 days
Fair Value, Inputs, Level 3 [Member] | Asset Management Contracts
Finite-Lived Intangible Assets Future Amortization Expense [Line Items]
Fair Value Inputs, Long-term AUM Growth Rate	7.00%
Fair Value Inputs, Attrition Rate	20.00%

XML

Schedule of Goodwill Carrying Value Rollfoward (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017
Goodwill Gross Value [Member]
Goodwill
Goodwill, Gross	$ 3,086,111	$ 3,086,789
Impact of excess tax basis amortization	(5,204)
Other, including changes in foreign exchange rates	4,526
Goodwill Accumulated Impairment [Member]
Goodwill
Goodwill, Impaired, Accumulated Impairment Loss	(1,161,900)	(1,161,900)
Impact of excess tax basis amortization	0
Other, including changes in foreign exchange rates	0
Goodwill Net Value [Member]
Goodwill
Goodwill	1,924,211	$ 1,924,889
Impact of excess tax basis amortization	(5,204)
Other, including changes in foreign exchange rates	$ 4,526

XML

Short-Term Borrowings and Long-Term Debt Line of Credit (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 30, 2017
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500,000	$ 1,000,000
Debt Covenant, Cash Collateral Provision	$ 200,000

XML

Short-Term Borrowings and Long-Term Debt Interest Rate Swap - Revolving Credit Facility (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Line of Credit Facility [Line Items]
Derivative, Notional Amount	$ 20,253
Derivative, Term of Contract	4 years 245 days
Interest Rate Swap [Member]
Line of Credit Facility [Line Items]
Derivative, Fixed Interest Rate			1.35%
Derivative, Notional Amount	$ 20,253
Interest Rate Swap [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Derivative, Fixed Interest Rate			2.30%
Derivative, Notional Amount			$ 500,000
Derivative, Term of Contract	4 years 245 days
Derivative Liability, Not Subject to Master Netting Arrangement		$ (4,369)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax		(2,683)
Deferred Tax Assets, Hedging Transactions		1,686
Derivative, Loss on Derivative		$ (527)

XML

Short-Term Borrowings and Long-Term Debt Schedule of Current Value of Long-term Debt (Details) - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 2,250,000
Long-term Debt	2,221,853	$ 2,221,867
Debt Instrument, Fair Value Disclosure	(3,609)
Debt Instrument, Unamortized Discount (Premium), Net	(2,700)
Unamortized Debt Issuance Expense	34,456
2.7% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	250,000
Long-term Debt	252,645	252,980
Debt Instrument, Fair Value Disclosure	(3,609)
Debt Instrument, Unamortized Discount	223
Unamortized Debt Issuance Expense	741
3.95% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	250,000
Long-term Debt	248,325	248,265
Debt Instrument, Fair Value Disclosure	0
Debt Instrument, Unamortized Discount	320
Unamortized Debt Issuance Expense	1,355
4.75% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	450,000
Long-term Debt	446,901	446,812
Debt Instrument, Fair Value Disclosure	0
Debt Instrument, Unamortized Premium	0
Unamortized Debt Issuance Expense	3,099
5.45% Junior Subordinated Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	500,000
Long-term Debt	483,997	483,895
Debt Instrument, Fair Value Disclosure	0
Debt Instrument, Unamortized Premium	0
Unamortized Debt Issuance Expense	16,003
5.625% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	550,000
Long-term Debt	547,880	547,861
Debt Instrument, Fair Value Disclosure	0
Debt Instrument, Unamortized Premium	(3,243)
Unamortized Debt Issuance Expense	5,363
6.375% Junior Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	250,000
Long-term Debt	242,105	$ 242,054
Debt Instrument, Fair Value Disclosure	0
Debt Instrument, Unamortized Premium	0
Unamortized Debt Issuance Expense	$ 7,895

XML

Short-Term Borrowings and Long-Term Debt Interest Rate Swap - 2.7% Senior Notes due July 2019 (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 16, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 23, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		$ 20,253
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Gain on Derivative		6,238	$ 13,615
Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		20,253
Interest Rate Swap [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amortization of Deferred Hedge Gains			$ 451
2.7% Senior Notes [Member] | Interest Rate Swap [Member] | Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount				$ 250,000
Derivative, Gain on Derivative	$ 6,500
Amortization of Deferred Hedge Gains		$ 451

XML

Short-Term Borrowings and Long-Term Debt Long Term Debt Information (Details) $ in Thousands	Jun. 30, 2017 USD ($)
Debt Instrument [Line Items]
Long-term Debt, Fair Value	$ (2,333,658)
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Year Three	250,000
Long-term Debt, Maturities, Repayments of Principal after Year Five	$ 2,000,000

XML

Stock-Based Compensation Compensation Expense (Details 1) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Current Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,762
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award Granted Price as Percentage of Fair Market Value Minimum	100.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	8 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		6,500

XML

Stock Based Compensation Summary (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Allocated Share-based Compensation Expense	$ 21,068	$ 37,471
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Allocated Share-based Compensation Expense	2,225	2,242
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Allocated Share-based Compensation Expense	16,579	14,573
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Employee Stock Ownership Plan (ESOP), Compensation Expense	297	301
Rabbi trust [Domain]
Share-based Compensation Arrangement by Share-based Payment Award
Allocated Share-based Compensation Expense	6	6
Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Deferred Compensation Arrangement with Individual, Compensation Expense	1,185	850
Subsidiaries [Member] | Management Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 776	$ 19,499

XML

Stock-Based Compensation Schedule of Outstanding Stock Options (Details 2) - Employee Stock Option - $ / shares shares in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Stock based compensation disclosure
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,714	5,161	4,593	4,506
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 38.55	$ 37.49	$ 38.15	$ 38.48
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	421	753
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 37.64	$ 31.31
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	256	56
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 28.99	$ 29.04
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	44	42
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 43.73	$ 43.93

XML

Stock-Based Compensation Stock Options Excercisable (Details 3) - Employee Stock Option shares in Thousands	3 Months Ended
	Jun. 30, 2017 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares	3,141
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares	$ 37.32

XML

Stock-Based Compensation Information regarding unvested and exercised stock options (Details) - Employee Stock Option shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | shares	1,573
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 12,722
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 219 days

XML

Stock-Based Compensation Fair Value of Options, Excluding CEO Options (Details) - Employee Stock Option - $ / shares	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 8.33	$ 7.78
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.70%	1.45%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.89%	1.25%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	26.79%	30.95%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 33 days	5 years 7 days

XML

Stock-Based Compensation Restricted Stock and Restricted Stock Unit Transactions (Details 9) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	3,449	3,473	3,321	3,058
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 38.20	$ 39.11	$ 38.92	$ 43.34
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	1,441	1,642
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 37.64	$ 31.24
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	1,281	1,164
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 39.41	$ 38.88
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	32	63
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 38.89	$ 42.11
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 111,146
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 329 days

XML

Stock-Based Compensation Management Equity Plans (Details 10) - Management Equity Plan [Member] - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued		$ 72,741
Clarion Partners [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Profits interests equity plan participation percentage		15.00%
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense			$ 15,200
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued		$ 18,700
Royce [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Profits interests equity plan participation percentage		19.00%
Stockholders' Equity Attributable to Noncontrolling Interest	[1]	$ 28,241	23,251	$ 27,798	$ 22,202
Permal [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Aggregate Cost of Awards		$ 9,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid			7,150
Deferred Compensation Arrangement with Individual, Compensation Expense			3,481
ClearBridge Investments [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Profits interests equity plan participation percentage		15.00%
Aggregate Cost of Awards		$ 16,000
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense		776	$ 818
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued		$ 25,800

[1] (2) Related to Royce management equity plan.

XML

Stock-Based Compensation Non-employee Directors Equity Plan (Details 11) - Restricted Stock [Member] - shares shares in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 329 days
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	67	54

XML

Stock-Based Compensation Performance Shares Granted to Key Employees (Details) - Restricted Stock [Member] - Clarion Partners [Member] shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2016 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award
Deferred Compensation Arrangement with Individual, Shares Issued | shares	716
Stock Issued During Period, Value, Restricted Stock Award, Gross | $	$ 11,121

XML

Stock-Based Compensation Grants to Executive Officers (Details) - Key Employees [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	111	182
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 3,503		$ 3,528
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 31.42	$ 19.36
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.96%	2.87%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.47%	0.89%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	27.73%	26.01%

XML

Commitments and Contingencies Schedule of Future Minimum Rental Payments (Details 1) $ in Thousands	Jun. 30, 2017 USD ($)
Operating leases
2017	$ 96,134
2018	112,339
2019	99,336
2020	90,007
2021	88,201
Thereafter	187,773
Total	673,790	[1]
Real Estate And Equipment [Member]
Operating leases
Total	611,637
Service, Support And Maintenance Agreements [Member]
Operating leases
Total	$ 62,153

[1] (1) Includes $611,637 in real estate and equipment leases and $62,153 in service and maintenance agreements.

XML

Commitments and Contingencies Information Regarding Rental Commitments (Details 2) - USD ($) $ in Thousands		12 Months Ended
		Mar. 31, 2017	Jun. 30, 2017	Mar. 31, 2016
Property Subject to or Available for Operating Lease [Line Items]
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals			$ 125,444
Percentage of Sublease Rentals due from Counterparty			35.00%
Operating Leases, Future Minimum Payments Due	[1]		$ 673,790
Commitments Related to Vacated and Subleased Space [Member]
Property Subject to or Available for Operating Lease [Line Items]
Valuation Allowances and Reserves, Balance		$ 28,821	31,605
Commitments Related to Vacated Space that Remains Vacant [Member]
Property Subject to or Available for Operating Lease [Line Items]
Valuation Allowances and Reserves, Balance		10,867	5,126
Operating Leases, Future Minimum Payments Due			8,015
Vacated Office Space [Member]
Property Subject to or Available for Operating Lease [Line Items]
Valuation Allowances and Reserves, Balance		39,688	$ 36,731	$ 52,240
Valuation Allowances and Reserves, Period Increase (Decrease)		(2,700)
EnTrustPermal [Member]
Property Subject to or Available for Operating Lease [Line Items]
Valuation Allowances and Reserves, Balance		9,069		$ 7,212
Valuation Allowances and Reserves, Period Increase (Decrease)		$ (4,495)

[1] (1) Includes $611,637 in real estate and equipment leases and $62,153 in service and maintenance agreements.

XML

Commitments and Contingencies Lease Reserve Rollforward (Details 3) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Schedule of Lease Reserve Liability Rollforward [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 684,203	$ 722,562	$ 677,772	$ 175,785
Vacated Office Space [Member]
Schedule of Lease Reserve Liability Rollforward [Line Items]
Lease Liability Related To Space Permanentely Abandonded		36,731		39,688	52,240
Valuation Allowances and Reserves, Charged to Cost and Expense	[1],[2]		9,454
Rental Payments, Net of Sublease Income		(3,273)	(16,531)
Valuation Allowances and Reserves, Additions for Adjustments		$ 316	$ (5,475)
Adjustments to Lease Liability Related to Vacant Space				(2,700)
EnTrustPermal [Member]
Schedule of Lease Reserve Liability Rollforward [Line Items]
Lease Liability Related To Space Permanentely Abandonded				9,069	$ 7,212
Adjustments to Lease Liability Related to Vacant Space				$ (4,495)

[1] Included in Occupancy expense in the Consolidated Statements of Income

[2] Includes $9,069 related to the restructuring of Permal for the combination with EnTrust

XML

Commitments and Contingencies Information Regarding Other Commitments (Details 4) $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($)
Investment In Limited Partnerships [Member]
Other Commitments [Line Items]
Other Commitment	$ 35,863
Proprietary Funds [Member]
Other Commitments [Line Items]
Other Commitment	100,000
Financial Guard LLC [Member]
Other Commitments [Line Items]
Other Commitment	5,000
Other Commitment, Amount Paid	$ 2,500

XML

Commitments and Contingencies Commitments and Contingencies related to Acquisitions (Details) £ in Thousands, AUD in Thousands, $ in Thousands		3 Months Ended		12 Months Ended
		Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2017 AUD	Jun. 30, 2017 GBP (£)	Jun. 30, 2017 USD ($)		Aug. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)	Oct. 21, 2015 USD ($)	Oct. 01, 2014 USD ($)	May 30, 2014 USD ($)
RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					AUD 106,000		$ 81,426	[1]
Business Combination, Contingent Consideration, Liability				$ 17,444			2,128			$ 27,145	$ 25,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability											$ 25,000
Contingent consideration fair value adjustments		$ (15,316)
Business Combination, Contingent Consideration, Liability, Current				7,791			0
Business Combination, Contingent Consideration, Liability, Noncurrent				9,653			2,128
Martin Currie [Member]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High						£ 325,000	423,075	[1]
Business Combination, Contingent Consideration, Liability				12,018			12,480			41,222		$ 75,211
Business Combination, Contingent Consideration, Liability, Current							12,480
Business Combination, Contingent Consideration, Liability, Noncurrent							0
PK Investments [Member]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	[1]						2,506
QS Investors [Domain]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High							23,400
Business Combination, Contingent Consideration, Liability				4,841			3,583			13,749			$ 13,370
Business Acquisition, Preacquisition Contingency, Amount of Settlement									$ (6,587)
Contingent consideration fair value adjustments		(1,258)
Business Combination, Contingent Consideration, Liability, Current							0
Business Combination, Contingent Consideration, Liability, Noncurrent							3,583
Other Affiliates [Member]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	[2]						5,506
Business Combination, Contingent Consideration, Liability	[2]			2,507			2,506			2,469
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability				2,000
Business Combination, Contingent Consideration, Liability, Current	[2]						2,506
Business Combination, Contingent Consideration, Liability, Noncurrent	[2]						0
Other changes in Fair Value [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		(66)		299
Other changes in Fair Value [Member] | Martin Currie [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		462		(4,204)
Other changes in Fair Value [Member] | QS Investors [Domain]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		42		179
Other changes in Fair Value [Member] | Other Affiliates [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		(1)		38
Change in Input Assumptions [Member] | RARE Infrastructure, Ltd [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		(15,250)		(10,000)
Change in Input Assumptions [Member] | Martin Currie [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		0		(25,000)
Change in Input Assumptions [Member] | QS Investors [Domain]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		(1,300)		(2,500)
Change in Input Assumptions [Member] | Other Affiliates [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		0		(2,000)
Contingent payment due on fourth anniversary of acquisition [Member] | QS Investors [Domain]
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High							20,000
Consolidated Legg Mason, Inc.
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	[1]						533,407
Business Combination, Contingent Consideration, Liability				36,810			20,697			$ 84,585
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability				2,000
Business Acquisition, Preacquisition Contingency, Amount of Settlement				(6,587)
Contingent consideration fair value adjustments		(16,550)	$ (18,000)
Business Combination, Contingent Consideration, Liability, Current				22,316			14,986
Business Combination, Contingent Consideration, Liability, Noncurrent				14,494			$ 5,711
Consolidated Legg Mason, Inc. | Other changes in Fair Value [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		437		(3,688)
Consolidated Legg Mason, Inc. | Change in Input Assumptions [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration fair value adjustments		$ (16,550)	$ (18,000)	$ (39,500)

[1] Using the applicable exchange rate as of June 30, 2017, for amounts denominated in currencies other than the U.S. dollar.

[2] Includes amounts related to the acquisition of Financial Guard on August 17, 2016 and PK Investments on December 31, 2015.

XML

Commitments and Contingencies Commitments Related to Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016
Other Commitments [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 684,203	$ 677,772	$ 722,562	$ 175,785
Noncontrolling Interest [Member]
Other Commitments [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	585,995	$ 591,254	$ 584,081	$ 68,922
Management Equity Plan [Member]
Other Commitments [Line Items]
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued	$ 72,741

XML

Earnings Per Share Information about Share Repurchase Plan (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Stock Repurchased and Retired During Period, Shares	2,369	3,475
Stock Repurchased and Retired During Period, Value	$ 89,649	$ 111,673
Shares Paid for Tax Withholding for Share Based Compensation	337	357
Adjustments Related to Tax Withholding for Share-based Compensation	$ 12,811	$ 11,661
Weighted Average Number Diluted Shares Outstanding Adjustment	1,329	2,015

XML

Earnings Per Share Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Consolidated Legg Mason, Inc.
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted Average Number of Shares Outstanding, Basic	94,869	104,465
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	428	212
Weighted Average Number of Shares Outstanding, Diluted	95,297	104,677
Net Income Attributable to Legg Mason, Inc.	$ 50,920	$ 33,452
Basic (in dollars per share)	$ 0.52	$ 0.31
Earnings Per Share, Diluted	$ 0.52	$ 0.31
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net Income Attributable to Legg Mason, Inc.	$ 50,920	$ 33,452
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted	1,736	1,051
Net Income (Loss) Available to Common Stockholders, Diluted	$ 49,184	$ 32,401
Restricted Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Incremental Common Shares Attributable to Participating Nonvested Shares with Non-forfeitable Dividend Rights	3,192	3,134

XML

Earnings Per Share Information about Dilutive and Anti-Dilute Shares (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Antidilutive shares due to proceeds from exercising exceeded price of shares [Domain]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,284	3,493
2.5% Convertible Senior Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			14,205
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental Common Shares Attributable to Participating Nonvested Shares with Non-forfeitable Dividend Rights	3,192	3,134

XML

Noncontrolling Interests Income Attributable to NCI Reconciliation Schedule (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	$ 10,356	$ 10,037
Net Income (Loss) Attributable to Noncontrolling Interest	12,617	11,888
Royce [Member]
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest	$ 2,261	$ 1,851

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Noncontrolling Interests Rollforward (Details) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	May 02, 2016	Mar. 31, 2016
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		$ 684,203	$ 722,562	$ 677,772		$ 175,785
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		10,356	10,037
Proceeds from (Payments to) Noncontrolling Interests		10,266	21,371
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(15,913)	(1,504)
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			508,500
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		333	(1,998)
RE Reclassified for MEP Amortization		1,389	4,251
CIVs and Other
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount	[1]	69,384	115,383	58,470		94,136
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	[1]	648	2,480
Proceeds from (Payments to) Noncontrolling Interests	[1],[2]	10,266	18,767
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		0	0
RE Reclassified for MEP Amortization	[1]	0	0
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		585,995	584,081	591,254		68,922
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		9,708	7,557
Proceeds from (Payments to) Noncontrolling Interests		0	2,604
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(15,913)	1,504
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			508,500
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		333	(1,998)
RE Reclassified for MEP Amortization			0
Noncontrolling Interest, Change in Redemption Value		613
Management Equity Plan [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		28,824	23,098	28,048		12,727
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		0	0
Proceeds from (Payments to) Noncontrolling Interests			6,120
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		0	0
RE Reclassified for MEP Amortization		776	4,251
EnTrustPermal [Member]
Noncontrolling Interest [Line Items]
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value					$ 403,200
EnTrustPermal [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		403,563	407,359	404,852		0
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		4,595	4,159
Proceeds from (Payments to) Noncontrolling Interests			0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(5,884)	0
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			403,200
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		0	0
Noncontrolling Interest, Change in Redemption Value		0
Clarion Partners [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		109,213	107,544	113,173		0
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		3,233	2,244
Proceeds from (Payments to) Noncontrolling Interests			0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(7,806)	0
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			105,300
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		0	0
Noncontrolling Interest, Change in Redemption Value		613
RARE Infrastructure, Ltd [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		68,805	64,938	68,747		67,155
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		1,823	1,098
Proceeds from (Payments to) Noncontrolling Interests			0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(2,098)	1,317
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			0
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		333	(1,998)
Noncontrolling Interest, Change in Redemption Value		0
Royce [Member]
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest		2,261	1,851
Management Equity Plan [Member] | Royce [Member]
Noncontrolling Interest [Line Items]
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest		2,261	1,851
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	[3]	(1,818)	(802)
Stockholders' Equity Attributable to Noncontrolling Interest	[3]	28,241	23,251	27,798		22,202
Other Affiliates [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Carrying Amount		4,414	4,240	$ 4,482		$ 1,767
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		57	56
Proceeds from (Payments to) Noncontrolling Interests			2,604
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(125)	187
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			0
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange		0	$ 0
Noncontrolling Interest, Change in Redemption Value		$ 0

[1] (1) Principally related to VIE and seeded investment products.

[2] (3) Includes the impact related to the adoption of updated consolidation accounting guidance.

[3] (2) Related to Royce management equity plan.

XML

Noncontrolling Interests Noncontrolling Interest Rollforward, By Affiliate (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	May 02, 2016	Mar. 31, 2016
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests	$ 10,266	$ 21,371
Redeemable Noncontrolling Interest, Equity, Carrying Amount	684,203	722,562	$ 677,772		$ 175,785
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	10,356	10,037
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(15,913)	(1,504)
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		508,500
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	333	(1,998)
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests	0	2,604
Redeemable Noncontrolling Interest, Equity, Carrying Amount	585,995	584,081	591,254		68,922
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	9,708	7,557
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(15,913)	1,504
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		508,500
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	333	(1,998)
Noncontrolling Interest, Change in Redemption Value	613
EnTrustPermal [Member]
Noncontrolling Interest [Line Items]
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value				$ 403,200
EnTrustPermal [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests		0
Redeemable Noncontrolling Interest, Equity, Carrying Amount	403,563	407,359	404,852		0
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	4,595	4,159
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(5,884)	0
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		403,200
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	0	0
Noncontrolling Interest, Change in Redemption Value	0
Clarion Partners [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests		0
Redeemable Noncontrolling Interest, Equity, Carrying Amount	109,213	107,544	113,173		0
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	3,233	2,244
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(7,806)	0
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		105,300
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	0	0
Noncontrolling Interest, Change in Redemption Value	613
RARE Infrastructure, Ltd [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests		0
Redeemable Noncontrolling Interest, Equity, Carrying Amount	68,805	64,938	68,747		67,155
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	1,823	1,098
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(2,098)	1,317
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		0
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	333	(1,998)
Noncontrolling Interest, Change in Redemption Value	0
Other Affiliates [Member] | Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Proceeds from (Payments to) Noncontrolling Interests		2,604
Redeemable Noncontrolling Interest, Equity, Carrying Amount	4,414	4,240	$ 4,482		$ 1,767
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	57	56
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(125)	187
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value		0
Noncontrolling Interest, Period Increase (Decrease), Foreign Exchange	0	$ 0
Noncontrolling Interest, Change in Redemption Value	$ 0

XML

Derivatives and Hedging Derivative Instruments and Hedging Activities Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016
Derivative
Derivative, Term of Contract	4 years 245 days
Derivative, Notional Amount	$ 20,253
Other Assets [Member]
Derivative
Amount Net for Fair Value of Derivative Assets and (Liabilities)	3,083	$ 2,718
Other Liabilities [Member]
Derivative
Amount Net for Fair Value of Derivative Assets and (Liabilities)	274	$ 4,522
Swap [Member]
Derivative
Derivative, Notional Amount	20,253
Derivative, Fixed Interest Rate			1.35%
Foreign Exchange Forward [Member]
Derivative
Derivative, Notional Amount	$ 219,118
Derivative, Average Remaining Maturity	8 months
Future [Member]
Derivative
Derivative, Notional Amount	$ 129,496
Derivative, Average Remaining Maturity	3 months
Derivative Financial Instruments, Assets [Member] | Future [Member]
Derivative
Derivative, Notional Amount	$ 19,931

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Derivatives and Hedging Fair Value of Derivative Assets (Details 1) - Not Designated as Hedging Instrument [Member] - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Derivative
Derivative Asset, Fair Value, Gross Asset	$ 3,757	$ 3,470
Derivative Asset, Fair Value, Gross Liability	(1,795)	(928)
Derivative Asset	1,962	2,542
Derivative Asset, Not Subject to Master Netting Arrangement	1,121	176
Derivative Asset, Collateral, Obligation to Return Cash, Offset	4,408	2,878
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	7,491	5,596
Foreign Exchange Forward [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	3,757	3,470
Derivative Asset, Fair Value, Gross Liability	(1,795)	(928)
Derivative Asset	1,962	2,542
Derivative Asset, Not Subject to Master Netting Arrangement	0	0
Derivative Asset, Collateral, Obligation to Return Cash, Offset	0	0
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	1,962	2,542
Future [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	0
Derivative Asset, Fair Value, Gross Liability	0
Derivative Asset	0
Derivative Asset, Not Subject to Master Netting Arrangement	1,121
Derivative Asset, Collateral, Obligation to Return Cash, Offset	4,408
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	5,529
Forward Contracts [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset		0
Derivative Asset, Fair Value, Gross Liability		0
Derivative Asset		0
Derivative Asset, Not Subject to Master Netting Arrangement		176
Derivative Asset, Collateral, Obligation to Return Cash, Offset		2,878
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		$ 3,054
Investments [Member] | Future [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	0
Derivative Asset, Fair Value, Gross Liability	0
Derivative Asset	0
Derivative Asset, Not Subject to Master Netting Arrangement	853
Derivative Asset, Collateral, Obligation to Return Cash, Offset	3,834
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	4,687
Derivative Financial Instruments, Assets [Member] | Future [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	0
Derivative Asset, Fair Value, Gross Liability	0
Derivative Asset	0
Derivative Asset, Not Subject to Master Netting Arrangement	268
Derivative Asset, Collateral, Obligation to Return Cash, Offset	574
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	$ 842

XML

Derivatives and Hedging Fair Value of Derivative Liabilities (Details) - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Derivative
Derivative Asset, Fair Value, Gross Asset	$ 3,757	$ 3,470
Derivative Asset, Fair Value, Gross Liability	(1,795)	(928)
Derivative Asset	1,962	2,542
Derivative Asset, Not Subject to Master Netting Arrangement	1,121	176
Derivative Asset, Collateral, Obligation to Return Cash, Offset	4,408	2,878
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	7,491	5,596
Derivative Liability, Fair Value, Gross Liability	(187)	(3,641)
Derivative Liability, Fair Value, Gross Asset	20	751
Derivative Liability	(167)	(2,890)
Derivative Liability, Not Subject to Master Netting Arrangement	(107)	(1,632)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	1,275	4,155
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	1,001	(367)
Interest Rate Swap [Member]
Derivative
Derivative Liability, Fair Value, Gross Liability	0
Derivative Liability, Fair Value, Gross Asset	0
Derivative Liability	0
Derivative Liability, Not Subject to Master Netting Arrangement	(107)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	1,275
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	1,168
Foreign Exchange Forward [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	3,757	3,470
Derivative Asset, Fair Value, Gross Liability	(1,795)	(928)
Derivative Asset	1,962	2,542
Derivative Asset, Not Subject to Master Netting Arrangement	0	0
Derivative Asset, Collateral, Obligation to Return Cash, Offset	0	0
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	1,962	2,542
Derivative Liability, Fair Value, Gross Liability	(187)	(3,641)
Derivative Liability, Fair Value, Gross Asset	20	751
Derivative Liability	(167)	(2,890)
Derivative Liability, Not Subject to Master Netting Arrangement	0	0
Derivative Liability, Collateral, Right to Reclaim Cash, Offset	0	0
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	(167)	(2,890)
Future [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset	0
Derivative Asset, Fair Value, Gross Liability	0
Derivative Asset	0
Derivative Asset, Not Subject to Master Netting Arrangement	1,121
Derivative Asset, Collateral, Obligation to Return Cash, Offset	4,408
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	$ 5,529
Forward Contracts [Member]
Derivative
Derivative Asset, Fair Value, Gross Asset		0
Derivative Asset, Fair Value, Gross Liability		0
Derivative Asset		0
Derivative Asset, Not Subject to Master Netting Arrangement		176
Derivative Asset, Collateral, Obligation to Return Cash, Offset		2,878
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement		3,054
Derivative Liability, Fair Value, Gross Liability		0
Derivative Liability, Fair Value, Gross Asset		0
Derivative Liability		0
Derivative Liability, Not Subject to Master Netting Arrangement		(1,632)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset		4,155
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement		$ 2,523

XML

Derivatives and Hedging Gains and (Losses) of Derivative Instruments (Details) - Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member] - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain on Derivative	$ 6,238	$ 13,615
Derivative, Loss on Derivative	(9,228)	(12,757)
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	6,238	13,615
Derivative Instruments Not Designated as Hedging Instruments, Loss	(9,228)	(12,230)
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	0	0
Derivative Instruments Not Designated as Hedging Instruments, Loss	(107)	0
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | Other Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	4,712	10,530
Derivative Instruments Not Designated as Hedging Instruments, Loss	(2,572)	7,983
Not Designated as Hedging Instrument [Member] | Proprietary Funds [Member] | Forward Contracts [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	411	1,334
Derivative Instruments Not Designated as Hedging Instruments, Loss	(1,049)	856
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain on Derivative	0	0
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Loss on Derivative	0	(527)
Investments [Member] | Not Designated as Hedging Instrument [Member] | Future [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	848	1,751
Derivative Instruments Not Designated as Hedging Instruments, Loss	(5,500)	(3,391)
Derivative Financial Instruments, Assets [Member] | Not Designated as Hedging Instrument [Member] | Future [Member] | Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain	267	0
Derivative Instruments Not Designated as Hedging Instruments, Loss	$ 0	$ 0

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Variable Interest Entities and Consolidation of Investment Vehicles Information about Investments in CIV's (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2016
Variable Interest Entity
Employee Owned Funds	1	1	1
Variable Interest Entity, Primary Beneficiary, Number of Collateralized Securites Vehicles	3	3	9
Number of Sponsored Investment Fund Vie	2	3	3
Derivative, Notional Amount	$ 20,253
Consolidated Investment Vehicles [Member] | Proprietary Funds [Member]
Variable Interest Entity
Assets, Fair Value Disclosure	36,026	$ 28,300
Interest Rate Swap [Member]
Variable Interest Entity
Derivative, Notional Amount	$ 20,253

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VIE Consolidated Balance Sheet Detail (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016
Variable Interest Entity
REDEEMABLE NONCONTROLLING INTERESTS		$ 684,203	$ 677,772	$ 722,562	$ 175,785
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity
Current Assets	[1]	97,091	77,406
Non-current Assets	[1]	9,968	9,987
TOTAL ASSETS	[1]	107,059	87,393
Current Liabilities	[1]	1,762	736
Non-current Liabilities	[1]	0	0
TOTAL LIABILITIES	[1]	1,762	736
REDEEMABLE NONCONTROLLING INTERESTS	[1]	12,691	26,853
Total Stockholders' Equity	[1]	92,606	59,804
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	[1]	107,059	87,393
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Variable Interest Entity
Current Assets	[1]	1,541,578	1,749,959
Non-current Assets	[1]	6,441,831	6,481,376
TOTAL ASSETS	[1]	7,983,409	8,231,335
Current Liabilities	[1]	584,635	808,664
Non-current Liabilities	[1]	2,789,069	2,792,084
TOTAL LIABILITIES	[1]	3,373,704	3,600,748
REDEEMABLE NONCONTROLLING INTERESTS	[1]	614,819	619,302
Total Stockholders' Equity	[1]	3,994,886	4,011,285
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	[1]	7,983,409	8,231,335
Consolidated Legg Mason, Inc.
Variable Interest Entity
Current Assets		1,605,601	1,801,747
Non-current Assets		6,448,828	6,488,668
TOTAL ASSETS		8,054,429	8,290,415
Current Liabilities		586,384	809,387
Non-current Liabilities		2,789,069	2,792,084
TOTAL LIABILITIES		3,375,453	3,601,471
REDEEMABLE NONCONTROLLING INTERESTS		684,203	677,772
Total Stockholders' Equity		3,994,773	4,011,172	$ 4,117,570
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		8,054,429	8,290,415
Consolidation, Eliminations [Member]
Variable Interest Entity
Current Assets		(33,068)	(25,618)
Non-current Assets		(2,971)	(2,695)
TOTAL ASSETS		(36,039)	(28,313)
Current Liabilities		(13)	(13)
Non-current Liabilities		0	0
TOTAL LIABILITIES		(13)	(13)
REDEEMABLE NONCONTROLLING INTERESTS		56,693	31,617
Total Stockholders' Equity		(92,719)	(59,917)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ (36,039)	$ (28,313)

[1] Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

XML

VIE Consolidated Income Statements Details (Details 2) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2017	Jun. 30, 2016
Condensed Income Statements, Captions [Line Items]
Net Income (Loss) Attributable to Noncontrolling Interest		$ 12,617	$ 11,888
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	[1]	793,886	700,177
Total Operating Expenses	[1]	686,614	626,511
OPERATING INCOME	[1]	107,272	73,666
Total Other Non-Operating Income (Expense)	[1]	(16,127)	(15,495)
INCOME BEFORE INCOME TAX PROVISION	[1]	91,145	58,171
Income tax provision	[1]	28,255	15,311
NET INCOME	[1]	62,890	42,860
Net Income (Loss) Attributable to Noncontrolling Interest	[1]	11,970	9,408
Net Income Attributable to Legg Mason, Inc.	[1]	50,920	33,452
Variable Interest Entity, Primary Beneficiary [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	[1]	0	(12)
Total Operating Expenses	[1]	68	99
OPERATING INCOME	[1]	(68)	(111)
Total Other Non-Operating Income (Expense)	[1]	1,239	2,548
INCOME BEFORE INCOME TAX PROVISION	[1]	1,171	2,437
Income tax provision	[1]	0	0
NET INCOME	[1]	1,171	2,437
Net Income (Loss) Attributable to Noncontrolling Interest	[1]	243	2
Net Income Attributable to Legg Mason, Inc.	[1]	928	2,435
Consolidated Legg Mason, Inc.
Condensed Income Statements, Captions [Line Items]
Revenues		793,842	700,165
Total Operating Expenses		686,637	626,610
OPERATING INCOME		107,205	73,555
Total Other Non-Operating Income (Expense)		(15,413)	(12,904)
INCOME BEFORE INCOME TAX PROVISION		91,792	60,651
Income tax provision		28,255	15,311
NET INCOME		63,537	45,340
Net Income (Loss) Attributable to Noncontrolling Interest		12,617	11,888
Net Income Attributable to Legg Mason, Inc.		50,920	33,452
Consolidation, Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Revenues		(44)	0
Total Operating Expenses		(45)	0
OPERATING INCOME		1	0
Total Other Non-Operating Income (Expense)		(525)	43
INCOME BEFORE INCOME TAX PROVISION		(524)	43
Income tax provision		0	0
NET INCOME		(524)	43
Net Income (Loss) Attributable to Noncontrolling Interest		404	2,478
Net Income Attributable to Legg Mason, Inc.		$ (928)	$ (2,435)

[1] Other represents consolidated sponsored investment products (VREs) that are not designated as CIVs.

XML

Fair Value of Assets and Liabilities of CIVs by Level (Details 3) - Consolidated Investment Vehicles [Member] - USD ($) $ in Thousands		Jun. 30, 2017	Mar. 31, 2017
Proprietary Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		$ 36,026	$ 28,300
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		67,241	33,991
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	[1]	$ 23,054	$ 24,734

[1] Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

XML

Variable Interest Entities and Consolidation of Investment Vehicles Transfers Between Levels 1 and 2 (Details) - Consolidated Investment Vehicles [Member] $ in Thousands	Jun. 30, 2017 USD ($)
Variable Interest Entity
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	$ 0

XML

CIV's with Fair Value Determined using NAV (Details 6) $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($)		Mar. 31, 2017 USD ($)
Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment Lock up Period	3
Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investment Lock up Period	5
CIVs | Hedge Funds
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Alternative Investment, Fair Value Disclosure	$ 23,054	[1]	$ 24,734
PercentageDailyRedemption	4.00%
Percentage of Monthly Redemption	7.00%
Percentage of Quarterly Redemption	47.00%
Percentage Subject to Lock in Period	42.00%

[1] Redemption restrictions: 4% daily redemption; 7% monthly redemption; 47% quarterly redemption; and 42% are subject to three to five-year lock-up or side pocket provisions.

XML

Unconsolidated VIE's (Details 9) - USD ($) $ in Thousands		Jun. 30, 2017	Mar. 31, 2017
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	[1]	$ 59,406	$ 58,723
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	[2]	78,408	89,473
Assets Under Management		27,013,127	26,735,285
Real Estate Investment Trusts [Member]
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	[1]	12,257	11,660
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	[2]	14,760	15,763
Other sponsored investments fund [Member]
Variable Interest Entity
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	[1]	47,149	47,063
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	[2]	$ 63,648	$ 73,710

[1] Amounts are related to investments in proprietary and other fund products.

[2] Includes equity investments the Company has made or is required to make and any earned but uncollected management fees.