Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
false--03-31Q1202100007040519745410.850.0890.1180.0940.7680.0830.0880.0600.8290.0930.0650.0430.0550.0430.1480.0140.0530.0600.8290.0930.0650.0530.0670.0560.4670.0200.0660.0600.8290.0930.0659920000.400.400.100.105000000005000000008778170590534943563300000 0000704051 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2020-04-01 2020-06-30 0000704051 2020-07-28 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain 2020-06-30 0000704051 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-06-30 0000704051 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember 2020-03-31 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember 2020-06-30 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:SeparateAccountsMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:PerformanceFeesMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:ServiceOtherMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:PerformanceFeesMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:ServiceOtherMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:MutualFundsMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:DistributionAndShareholderServiceMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:MutualFundsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:SeparateAccountsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:DistributionAndShareholderServiceMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2020-03-31 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:DeferredCompensationEmployeeStockTrustMember 2019-06-30 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000704051 lm:ClarionPartnersMember us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:CommonStockMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2020-06-30 0000704051 lm:RoyceMember lm:ManagementEquityPlanMember 2019-03-31 0000704051 lm:ConsolidatedLeggMasonDomain lm:EmployeeStockTrustMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain us-gaap:RetainedEarningsMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2019-06-30 0000704051 lm:ConsolidatedLeggMasonDomain 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel12And3Member 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel12And3Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel2Member 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel1Member 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel2Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel3Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel2Member lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member us-gaap:OtherInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:ProprietaryFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherAggregatedInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:LongTermIncentiveCompensationPlansMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:HedgeFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:FundsOfHedgeFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:PrivateEquityFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:FundsOfHedgeFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:PrivateEquityFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:HedgeFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherAggregatedInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember 2020-06-30 0000704051 lm:ProprietaryFundsMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-06-30 0000704051 lm:ProprietaryFundsMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember 2020-03-31 0000704051 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:FundsOfHedgeFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member 2019-04-01 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember us-gaap:RealEstateFundsMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member us-gaap:RealEstateFundsMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember us-gaap:RealEstateFundsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2019-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel2Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueInputsLevel12And3Member 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel3Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel12And3Member lm:ProprietaryFundsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueInputsLevel3Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherNoncurrentAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:OtherInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel3Member lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:CurrentInvestmentsMember us-gaap:FairValueInputsLevel1Member lm:LongTermIncentiveCompensationPlansMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquitySecuritiesMember 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2020-04-01 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember 2020-03-31 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember lm:ContingentConsiderationLiabilityFairValueMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:OtherInvestmentsMember us-gaap:EquityMethodInvestmentsMember 2020-03-31 0000704051 srt:MaximumMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquitySecuritiesMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquitySecuritiesMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquitySecuritiesMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquitySecuritiesMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember 2020-04-01 2020-06-30 0000704051 srt:WeightedAverageMember lm:ProprietaryFundsMember us-gaap:EquityMethodInvestmentsMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquitySecuritiesMember lm:MeasurementInputLoantoValueMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:WeightedAverageMember us-gaap:EquityMethodInvestmentsMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EquitySecuritiesMember lm:MeasurementInputExitCapitalizationRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-06-30 0000704051 lm:GramercyMember 2019-04-10 0000704051 lm:GramercyMember 2020-04-01 2020-06-30 0000704051 lm:GramercyMember 2019-04-10 2019-04-10 0000704051 us-gaap:PropertyPlantAndEquipmentMember 2020-04-01 2020-06-30 0000704051 us-gaap:PropertyPlantAndEquipmentMember 2019-04-01 2019-06-30 0000704051 us-gaap:EquipmentMember 2020-06-30 0000704051 us-gaap:LeaseholdsAndLeaseholdImprovementsMember 2020-03-31 0000704051 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-06-30 0000704051 us-gaap:LeaseholdsAndLeaseholdImprovementsMember 2020-06-30 0000704051 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-03-31 0000704051 us-gaap:EquipmentMember 2020-03-31 0000704051 lm:EnTrustGlobalMember lm:FundManagementContractsMember 2020-06-30 0000704051 lm:USDomesticMutualFundManagementContractsMember 2020-06-30 0000704051 us-gaap:TradeNamesMember 2020-03-31 0000704051 lm:OtherFundManagementContractsMember 2020-06-30 0000704051 lm:ClarionPartnersMember lm:FundManagementContractsMember 2020-03-31 0000704051 lm:ClarionPartnersMember lm:FundManagementContractsMember 2020-06-30 0000704051 lm:OtherFundManagementContractsMember 2020-03-31 0000704051 us-gaap:TradeNamesMember 2020-06-30 0000704051 lm:EnTrustGlobalMember lm:FundManagementContractsMember 2020-03-31 0000704051 lm:USDomesticMutualFundManagementContractsMember 2020-03-31 0000704051 lm:GoodwillNetValueMember 2020-06-30 0000704051 lm:GoodwillGrossValueMember 2020-04-01 2020-06-30 0000704051 lm:GoodwillNetValueMember 2020-04-01 2020-06-30 0000704051 lm:GoodwillNetValueMember 2020-03-31 0000704051 lm:GoodwillAccumulatedImpairmentMember 2020-03-31 0000704051 lm:GoodwillGrossValueMember 2020-03-31 0000704051 lm:GoodwillGrossValueMember 2020-06-30 0000704051 lm:GoodwillAccumulatedImpairmentMember 2020-06-30 0000704051 lm:EnTrustGlobalMember lm:FundManagementContractsMember 2019-12-31 0000704051 lm:EnTrustGlobalMember us-gaap:TradeNamesMember 2019-12-31 0000704051 lm:EnTrustGlobalMember us-gaap:TradeNamesMember 2020-03-31 0000704051 lm:EnTrustGlobalMember 2019-12-31 0000704051 us-gaap:RevolvingCreditFacilityMember 2020-06-30 0000704051 lm:FranklinTempletonMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A3.95SeniorNotesMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A3.95SeniorNotesMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A5.45JuniorSubordinatedNotesMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A4.75SeniorNotesMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A4.75SeniorNotesMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:LongTermDebtMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A6.375JuniorNotesMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A5.625SeniorNotesMemberMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A6.375JuniorNotesMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A5.45JuniorSubordinatedNotesMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:A5.625SeniorNotesMemberMember 2020-03-31 0000704051 2019-04-01 2019-06-30 0000704051 us-gaap:LeaseholdImprovementsMember 2019-04-01 2019-06-30 0000704051 us-gaap:LeaseholdImprovementsMember 2020-04-01 2020-06-30 0000704051 lm:RightofUseAssetMember 2020-03-31 0000704051 lm:RightofUseAssetMember 2020-06-30 0000704051 lm:InvestmentInLimitedPartnershipsMember 2020-06-30 0000704051 lm:ClarionPartnersMember 2020-06-30 0000704051 us-gaap:ServiceAgreementsMember 2020-06-30 0000704051 lm:GramercyMember 2020-06-30 0000704051 lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 us-gaap:StockOptionMember 2019-03-31 0000704051 us-gaap:StockOptionMember 2020-03-31 0000704051 us-gaap:StockOptionMember 2020-04-01 2020-06-30 0000704051 2019-03-31 0000704051 us-gaap:StockOptionMember 2019-04-01 2019-06-30 0000704051 us-gaap:StockOptionMember 2019-06-30 0000704051 us-gaap:StockOptionMember 2020-06-30 0000704051 lm:AssetClassMember 2020-04-01 2020-06-30 0000704051 lm:LeggMasonGroupMember 2020-04-01 2020-06-30 0000704051 us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0000704051 srt:DirectorMember us-gaap:RestrictedStockMember 2020-06-30 0000704051 lm:ClarionPartnersMember lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 srt:DirectorMember us-gaap:RestrictedStockMember 2019-06-30 0000704051 us-gaap:RestrictedStockMember 2020-06-30 0000704051 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000704051 lm:ClearBridgeInvestmentsMember lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 lm:ClearBridgeInvestmentsMember lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 lm:ClearBridgeInvestmentsMember lm:ManagementEquityPlanMember 2019-04-01 2019-06-30 0000704051 lm:ClearBridgeInvestmentsMember lm:ManagementEquityPlanMember lm:ClearBridgeManagementEquityPlanMember 2019-04-01 2019-06-30 0000704051 us-gaap:RestrictedStockMember 2020-03-31 0000704051 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0000704051 us-gaap:RestrictedStockMember 2019-03-31 0000704051 us-gaap:RestrictedStockMember 2019-06-30 0000704051 srt:DirectorMember us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0000704051 lm:RabbiTrustDomain 2019-04-01 2019-06-30 0000704051 lm:RabbiTrustDomain 2020-04-01 2020-06-30 0000704051 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000704051 srt:DirectorMember us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0000704051 srt:SubsidiariesMember lm:ManagementEquityPlanMember 2019-04-01 2019-06-30 0000704051 lm:EmployeeStockPurchasePlanMember 2019-04-01 2019-06-30 0000704051 srt:SubsidiariesMember lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 lm:KeyEmployeesMember 2019-04-01 2019-06-30 0000704051 lm:KeyEmployeesMember 2020-04-01 2020-06-30 0000704051 lm:EmployeeStockPurchasePlanMember 2020-04-01 2020-06-30 0000704051 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0000704051 us-gaap:NonUsMember 2020-04-01 2020-06-30 0000704051 country:GB 2020-04-01 2020-06-30 0000704051 country:US 2020-04-01 2020-06-30 0000704051 country:GB 2019-04-01 2019-06-30 0000704051 country:US 2019-04-01 2019-06-30 0000704051 us-gaap:NonUsMember 2019-04-01 2019-06-30 0000704051 lm:EquityAUMMember 2019-04-01 2019-06-30 0000704051 lm:FixedIncomeAUMMember 2020-04-01 2020-06-30 0000704051 lm:AlternativeAUMMember 2020-04-01 2020-06-30 0000704051 lm:FixedIncomeAUMMember 2019-04-01 2019-06-30 0000704051 lm:LiquidityAUMMember 2020-04-01 2020-06-30 0000704051 lm:LiquidityAUMMember 2019-04-01 2019-06-30 0000704051 lm:AlternativeAUMMember 2019-04-01 2019-06-30 0000704051 lm:EquityAUMMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember 2019-04-01 2019-06-30 0000704051 lm:AntidilutiveSharesDueToProceedsFromExercisingExceededPriceOfSharesDomain 2019-04-01 2019-06-30 0000704051 lm:AntidilutiveSharesDueToProceedsFromExercisingExceededPriceOfSharesDomain 2020-04-01 2020-06-30 0000704051 lm:RoyceMember 2019-04-01 2019-06-30 0000704051 lm:RAREManagementTeamMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:ManagementEquityPlanMember 2019-03-31 0000704051 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:ManagementEquityPlanMember 2019-06-30 0000704051 lm:ManagementEquityPlanMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-04-01 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 us-gaap:NoncontrollingInterestMember 2019-03-31 0000704051 lm:EnTrustPermalMember 2020-06-30 0000704051 lm:RAREManagementTeamMember 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember 2019-04-01 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember 2020-04-01 2020-06-30 0000704051 2019-05-10 0000704051 lm:RAREInfrastructureLtdMember lm:RAREInfrastructureLtdMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:ClarionPartnersMember 2020-06-30 0000704051 lm:RAREInfrastructureLtdMember 2019-05-10 2019-05-10 0000704051 lm:RoyceMember 2020-04-01 2020-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember us-gaap:NoncontrollingInterestMember 2019-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2019-06-30 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2019-06-30 0000704051 lm:RAREInfrastructureLtdMember us-gaap:NoncontrollingInterestMember 2019-03-31 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2019-03-31 0000704051 us-gaap:NoncontrollingInterestMember 2019-06-30 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2019-06-30 0000704051 lm:ClarionPartnersMember 2019-04-01 2019-06-30 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2019-03-31 0000704051 lm:EnTrustGlobalMember us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-03-31 0000704051 us-gaap:NoncontrollingInterestMember 2020-03-31 0000704051 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 lm:ManagementEquityPlanMember 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2020-06-30 0000704051 lm:ManagementEquityPlanMember 2020-04-01 2020-06-30 0000704051 lm:ManagementEquityPlanMember 2020-06-30 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2020-03-31 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2020-03-31 0000704051 lm:ClarionPartnersMember us-gaap:NoncontrollingInterestMember 2020-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2020-06-30 0000704051 lm:ClarionPartnersMember 2020-04-01 2020-06-30 0000704051 lm:EnTrustGlobalMember us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0000704051 lm:EnTrustPermalMember us-gaap:NoncontrollingInterestMember 2020-06-30 0000704051 lm:OtherAffiliates.Member us-gaap:NoncontrollingInterestMember 2020-03-31 0000704051 us-gaap:NoncontrollingInterestMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:FuturesRelatedtoTotalReturnSwapMember us-gaap:NondesignatedMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember us-gaap:InvestmentsMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:NondesignatedMember 2020-03-31 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember us-gaap:InvestmentsMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:TotalReturnSwapMember us-gaap:NondesignatedMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:NondesignatedMember 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember us-gaap:InvestmentsMember 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:NondesignatedMember 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:TotalReturnSwapMember us-gaap:NondesignatedMember 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:NondesignatedMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:FuturesRelatedtoTotalReturnSwapMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:OtherExpenseMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:OtherExpenseMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember lm:ProprietaryFundsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:TotalReturnSwapMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:InvestmentsMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:FutureMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:InvestmentsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember lm:FuturesRelatedtoTotalReturnSwapMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:ForwardContractsMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember lm:ProprietaryFundsMember 2019-04-01 2019-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:TotalReturnSwapMember us-gaap:NondesignatedMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedEntityExcludingConsolidatedInvestmentVehiclesBeforeEliminationsMember us-gaap:NondesignatedMember 2020-04-01 2020-06-30 0000704051 us-gaap:OtherAssetsMember 2020-06-30 0000704051 us-gaap:OtherAssetsMember 2020-03-31 0000704051 us-gaap:ForeignExchangeForwardMember 2020-06-30 0000704051 us-gaap:OtherLiabilitiesMember 2020-06-30 0000704051 us-gaap:FutureMember 2020-04-01 2020-06-30 0000704051 us-gaap:TotalReturnSwapMember 2020-06-30 0000704051 us-gaap:ForeignExchangeForwardMember 2020-04-01 2020-06-30 0000704051 us-gaap:FutureMember 2020-06-30 0000704051 us-gaap:OtherLiabilitiesMember 2020-03-31 0000704051 us-gaap:TotalReturnSwapMember 2020-04-01 2020-06-30 0000704051 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-03-31 0000704051 us-gaap:OccupancyMember 2019-03-31 0000704051 us-gaap:OccupancyMember 2019-04-01 2020-03-31 0000704051 us-gaap:OccupancyMember 2020-06-30 0000704051 us-gaap:EmployeeSeveranceMember 2020-04-01 2020-06-30 0000704051 us-gaap:OtherRestructuringMember 2020-06-30 0000704051 us-gaap:OtherRestructuringMember 2019-03-31 0000704051 us-gaap:EmployeeSeveranceMember 2019-04-01 2020-03-31 0000704051 us-gaap:EmployeeSeveranceMember 2020-06-30 0000704051 us-gaap:OccupancyMember 2020-04-01 2020-06-30 0000704051 us-gaap:OtherRestructuringMember 2019-04-01 2020-03-31 0000704051 2019-01-01 2019-03-31 0000704051 us-gaap:OtherRestructuringMember 2020-04-01 2020-06-30 0000704051 2019-01-01 2020-06-30 0000704051 2019-04-01 2020-03-31 0000704051 us-gaap:OccupancyMember 2019-01-01 2019-03-31 0000704051 us-gaap:OtherRestructuringMember 2020-03-31 0000704051 us-gaap:OtherRestructuringMember 2019-01-01 2019-03-31 0000704051 us-gaap:OccupancyMember 2019-01-01 2020-06-30 0000704051 us-gaap:EmployeeSeveranceMember 2019-03-31 0000704051 us-gaap:EmployeeSeveranceMember 2020-03-31 0000704051 us-gaap:OtherRestructuringMember 2019-01-01 2020-06-30 0000704051 us-gaap:OccupancyMember 2020-03-31 0000704051 us-gaap:EmployeeSeveranceMember 2019-01-01 2020-06-30 0000704051 lm:RealEstateInvestmentTrustsMember 2020-06-30 0000704051 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0000704051 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-06-30 0000704051 lm:RealEstateInvestmentTrustsMember 2020-03-31 0000704051 lm:OtherSponsoredInvestmentsFundMember 2020-03-31 0000704051 lm:OtherSponsoredInvestmentsFundMember 2020-06-30 0000704051 srt:ConsolidationEliminationsMember 2020-06-30 0000704051 srt:ConsolidationEliminationsMember 2020-03-31 0000704051 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-06-30 0000704051 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-03-31 0000704051 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-04-01 2020-06-30 0000704051 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidationEliminationsMember 2019-04-01 2019-06-30 0000704051 srt:ConsolidationEliminationsMember 2020-04-01 2020-06-30 0000704051 lm:VotingRightEntitiesMember 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain lm:VotingRightEntitiesMember lm:ProprietaryFundsMember 2019-06-30 0000704051 lm:VotingRightEntitiesMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:HedgeFundsMember 2020-03-31 0000704051 us-gaap:CollateralizedLoanObligationsMember 2020-06-30 0000704051 us-gaap:CollateralizedLoanObligationsMember 2020-04-01 2020-06-30 0000704051 lm:ConsolidatedLeggMasonDomain lm:VotingRightEntitiesMember lm:ProprietaryFundsMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember us-gaap:FairValueInputsLevel1Member 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember us-gaap:FairValueInputsLevel2Member 2020-06-30 0000704051 lm:VotingRightEntitiesMember 2019-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0000704051 lm:ConsolidatedLeggMasonDomain lm:VotingRightEntitiesMember lm:ProprietaryFundsMember 2020-03-31 0000704051 lm:SponsoredETFMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredInvestmentFundMember 2020-03-31 0000704051 lm:SponsoredETFMember 2020-03-31 0000704051 lm:SponsoredInvestmentFundMember 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredETFMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:ForeignMutualFundsMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredInvestmentFundMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:ForeignMutualFundsMember 2020-03-31 0000704051 lm:EmployeeOwnedFundsMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:EmployeeOwnedFundsMember 2019-03-31 0000704051 lm:SponsoredInvestmentFundMember 2019-03-31 0000704051 lm:ForeignMutualFundsMember 2020-06-30 0000704051 lm:ForeignMutualFundsMember 2020-03-31 0000704051 lm:EmployeeOwnedFundsMember 2020-03-31 0000704051 lm:SponsoredETFMember 2020-06-30 0000704051 lm:ForeignMutualFundsMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredETFMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:ForeignMutualFundsMember 2019-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredETFMember 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:EmployeeOwnedFundsMember 2020-03-31 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:EmployeeOwnedFundsMember 2020-06-30 0000704051 lm:EmployeeOwnedFundsMember 2019-03-31 0000704051 lm:SponsoredInvestmentFundMember 2020-06-30 0000704051 lm:ConsolidatedInvestmentVehiclesMember lm:SponsoredInvestmentFundMember 2020-06-30 0000704051 lm:VotingRightEntitiesMember 2019-12-31 0000704051 lm:VotingRightEntitiesMember 2018-12-31 0000704051 lm:VotingRightEntitiesMember 2020-03-31 0000704051 us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2020-07-21 2020-07-21 xbrli:shares iso4217:USD xbrli:shares xbrli:pure iso4217:EUR iso4217:USD
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
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:
001-08529
404818999_imageleggmasona14.jpg
LEGG MASON, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
MD
 
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)
 
Securities registered pursuant to Section 12(b) of the Act:
 
 
 
 
 
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common stock, $0.10 par value
 
LM
 
New York Stock Exchange
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
 
No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). 
Yes
 
No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
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
As of July 28, 2020, there were 90,557,898 shares of the registrant's common stock outstanding.


Table of Contents

TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Table of Contents

PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
 
 
June 30, 2020
 
March 31, 2020
ASSETS
 
 
 
 
Current Assets
 
 
 
 
Cash and cash equivalents
 
$
931,605

 
$
1,018,860

Cash and cash equivalents of consolidated investment vehicles
 
235

 
620

Restricted cash
 
20,496

 
28,133

Receivables:
 
 
 
 
Investment advisory and related fees
 
406,411

 
407,893

Other
 
66,918

 
47,634

Investment securities
 
413,310

 
338,894

Investment securities of consolidated investment vehicles
 
33,811

 
117,084

Other
 
89,344

 
80,030

Other current assets of consolidated investment vehicles
 
62

 
476

Total Current Assets
 
1,962,192

 
2,039,624

Fixed assets, net
 
126,113

 
134,423

Intangible assets, net
 
3,356,470

 
3,355,690

Goodwill
 
1,862,673

 
1,847,766

Deferred income taxes
 
165,948

 
161,977

Right-of-use assets
 
280,528

 
291,342

Other
 
162,534

 
152,985

Other assets of consolidated investment vehicles
 
979

 
22,313

TOTAL ASSETS
 
$
7,917,437

 
$
8,006,120

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
LIABILITIES
 
 

 
 

Current Liabilities
 
 

 
 

Accrued compensation
 
$
261,779

 
$
574,430

Accounts payable and accrued expenses
 
165,863

 
156,981

Short-term borrowings
 
250,000

 

Lease liabilities
 
77,191

 
77,814

Other
 
110,404

 
115,788

Other current liabilities of consolidated investment vehicles
 
273

 
1,044

Total Current Liabilities
 
865,510

 
926,057

Deferred compensation
 
104,354

 
95,293

Lease liabilities
 
269,041

 
278,737

Deferred income taxes
 
167,828

 
165,038

Other
 
28,992

 
32,167

Long-term debt, net
 
1,973,054

 
1,972,733

TOTAL LIABILITIES
 
3,408,779

 
3,470,025

Commitments and Contingencies (Note 9)
 
 
 
 
REDEEMABLE NONCONTROLLING INTERESTS
 
613,336

 
714,414

STOCKHOLDERS' EQUITY
 
 

 
 
Common stock, par value $0.10 per share; authorized 500,000,000 shares; issued 90,534,943 and 87,781,705 shares for June 30, 2020 and March 31, 2020, respectively
 
9,053

 
8,778

Additional paid-in capital
 
2,187,177

 
2,158,755

Employee stock trust
 
(19,126
)
 
(19,778
)
Deferred compensation employee stock trust
 
19,126

 
19,778

Retained earnings
 
1,831,364

 
1,820,412

Accumulated other comprehensive loss, net
 
(161,246
)
 
(195,306
)
Total stockholders' equity attributable to Legg Mason, Inc.
 
3,866,348

 
3,792,639

Nonredeemable noncontrolling interest
 
28,974

 
29,042

TOTAL STOCKHOLDERS' EQUITY
 
3,895,322

 
3,821,681

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
7,917,437

 
$
8,006,120

See Notes to Consolidated Financial Statements

3

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended June 30,
 
 
2020
 
2019
OPERATING REVENUES
 
 
 
 
Investment advisory fees:
 
 
 
 
Separate accounts
 
$
245,459

 
$
260,441

Funds
 
347,876

 
366,812

Performance fees
 
11,414

 
6,861

Distribution and service fees
 
59,859

 
69,937

Other
 
1,578

 
1,309

Total Operating Revenues
 
666,186

 
705,360

OPERATING EXPENSES
 


 


Compensation and benefits
 
353,208

 
379,828

Distribution and servicing
 
91,349

 
103,906

Communications and technology
 
62,358

 
55,274

Occupancy
 
32,007

 
25,624

Amortization of intangible assets
 
5,505

 
5,457

Contingent consideration fair value adjustments
 

 
(1,165
)
Other
 
54,051

 
52,501

Total Operating Expenses
 
598,478

 
621,425

OPERATING INCOME
 
67,708

 
83,935

NON-OPERATING INCOME (EXPENSE)
 
 
 


Interest income
 
915

 
4,005

Interest expense
 
(28,581
)
 
(28,483
)
Other income (expense), net
 
31,120

 
10,599

Non-operating income (expense) of consolidated investment vehicles, net
 
(2,158
)
 
9,561

Total Non-Operating Income (Expense)
 
1,296

 
(4,318
)
INCOME BEFORE INCOME TAX PROVISION
 
69,004

 
79,617

Income tax provision
 
13,930

 
18,048

NET INCOME
 
55,074

 
61,569

Less: Net income attributable to noncontrolling interests
 
5,652

 
16,219

NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.
 
$
49,422

 
$
45,350

NET INCOME PER SHARE ATTRIBUTABLE TO LEGG MASON, INC. STOCKHOLDERS:
 
 
 
 
Basic
 
$
0.54

 
$
0.51

Diluted
 
0.54

 
0.51

See Notes to Consolidated Financial Statements

4

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(Unaudited)

 
 
Three Months Ended June 30,
 
 
2020
 
2019
NET INCOME
 
$
55,074

 
$
61,569

Other comprehensive income (loss):
 
 
 
 
Foreign currency translation adjustment
 
34,171

 
(9,964
)
Changes in defined benefit pension plan
 
(111
)
 
545

Total other comprehensive income (loss)
 
34,060


(9,419
)
COMPREHENSIVE INCOME
 
89,134


52,150

Less: Comprehensive income attributable to noncontrolling interests
 
5,388

 
17,057

COMPREHENSIVE INCOME ATTRIBUTABLE TO LEGG MASON, INC.
 
$
83,746


$
35,093

See Notes to Consolidated Financial Statements

5

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Dollars in thousands)
(Unaudited)
 
 
Three Months Ended June 30,
 
 
2020
 
2019
STOCKHOLDERS' EQUITY ATTRIBUTABLE TO LEGG MASON, INC.
 
 
 
 
COMMON STOCK
 
 
 
 
Beginning balance
 
$
8,778

 
$
8,556

Stock options exercised
 
152

 
30

Stock-based compensation
 
196

 
118

Employee tax withholdings by settlement of net share transactions
 
(73
)
 
(38
)
Ending balance
 
9,053

 
8,666

ADDITIONAL PAID-IN CAPITAL
 
 
 
 
Beginning balance
 
2,158,755

 
2,039,671

Stock options exercised
 
53,105

 
9,406

Deferred compensation employee stock trust
 
180

 
163

Stock-based compensation
 
7,213

 
21,893

Tax benefit on issuance of performance-based restricted share units related to the fiscal 2017 acquisition of Clarion Partners
 
4,980

 

Employee tax withholdings by settlement of net share transactions
 
(37,079
)
 
(12,543
)
Redeemable noncontrolling interest reclassification for affiliate management equity plans and affiliate noncontrolling interest
 
23

 
26,076

Ending balance
 
2,187,177

 
2,084,666

EMPLOYEE STOCK TRUST
 
 
 
 
Beginning balance
 
(19,778
)
 
(21,416
)
Shares issued to plans
 
(180
)
 
(163
)
Distributions
 
832

 
1,340

Ending balance
 
(19,126
)
 
(20,239
)
DEFERRED COMPENSATION EMPLOYEE STOCK TRUST
 
 
 
 
Beginning balance
 
19,778

 
21,416

Shares issued to plans
 
180

 
163

Distributions
 
(832
)
 
(1,340
)
Ending balance
 
19,126

 
20,239

RETAINED EARNINGS
 
 
 
 
Beginning balance
 
1,820,412

 
1,742,764

Net income attributable to Legg Mason, Inc.
 
49,422

 
45,350

Dividends declared ($0.40 per share in each period)
 
(36,628
)
 
(37,627
)
Reclassification to noncontrolling interest for net increase in estimated redemption value of affiliate management equity plan and affiliate noncontrolling interests
 
(1,842
)
 
(2,381
)
Ending balance
 
1,831,364

 
1,748,106

ACCUMULATED OTHER COMPREHENSIVE LOSS, NET
 
 
 
 
Beginning balance
 
(195,306
)
 
(131,236
)
Foreign currency translation adjustment
 
34,171

 
(9,964
)
Changes in defined benefit pension plan
 
(111
)
 
545

Ending balance
 
(161,246
)
 
(140,655
)
TOTAL STOCKHOLDERS’ EQUITY ATTRIBUTABLE TO LEGG MASON, INC.
 
3,866,348

 
3,700,783

NONREDEEMABLE NONCONTROLLING INTEREST
 
 
 
 
Beginning balance
 
29,042

 
29,784

Net income attributable to noncontrolling interests
 
787

 
2,863

Distributions
 
(855
)
 
(2,167
)
Ending balance
 
28,974

 
30,480

TOTAL STOCKHOLDERS’ EQUITY
 
$
3,895,322

 
$
3,731,263

See Notes to Consolidated Financial Statements

6

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
 
 
Three Months Ended June 30,
 
 
2020
 
2019
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Net Income
 
$
55,074

 
$
61,569

Adjustments to reconcile Net Income to net cash provided by operations:
 
 
 
 
Depreciation and amortization
 
19,448

 
16,496

Accretion and amortization of securities discounts and premiums, net
 
427

 
108

Stock-based compensation
 
7,421

 
23,834

Net unrealized (gains) losses on investments
 
(40,022
)
 
(4,684
)
Net (gains) losses and earnings on investments
 
11,830

 
(6,748
)
Net (gains) losses of consolidated investment vehicles
 
2,158

 
(9,561
)
Deferred income taxes
 
9,026

 
22,294

Contingent consideration fair value adjustments
 

 
(1,165
)
Other
 
(21
)
 
345

Decrease (increase) in assets:
 
 
 
 
Investment advisory and related fees receivable
 
2,639

 
235

Net (purchases) sales of trading and other investments
 
(42,790
)
 
(4,817
)
Other receivables
 
(1,638
)
 
10,661

Other assets
 
(15,379
)
 
(5,294
)
Assets of consolidated investment vehicles
 
102,120

 
11,400

Increase (decrease) in liabilities:
 
 
 
 
Accrued compensation
 
(314,376
)
 
(300,250
)
Deferred compensation
 
9,061

 
12,084

Accounts payable and accrued expenses
 
8,558

 
(10,298
)
Other liabilities
 
(24,260
)
 
(5,398
)
Other liabilities of consolidated investment vehicles
 
(768
)
 
1,612

CASH USED IN OPERATING ACTIVITIES
 
$
(211,492
)
 
$
(187,577
)
(Continued)

7

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Dollars in thousands)
(Unaudited)

 
 
Three Months Ended June 30,
 
 
2020
 
2019
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Payments for fixed assets
 
$
(5,762
)
 
$
(9,190
)
Returns of capital and proceeds from sales and maturities of investments
 
65

 
488

Business investment
 
(250
)
 

Business acquisition, net of cash acquired of $992
 

 
(10,247
)
CASH USED IN INVESTING ACTIVITIES
 
(5,947
)
 
(18,949
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Increase in short-term borrowings
 
250,000

 

Dividends paid
 
(36,266
)
 
(30,131
)
Distributions to affiliate noncontrolling interests
 
(13,676
)
 
(16,230
)
Net (redemptions) subscriptions attributable to noncontrolling interests
 
(95,228
)
 
(8,232
)
Purchase of affiliate noncontrolling interests
 

 
(10,548
)
Employee tax withholdings by settlement of net share transactions
 
(37,152
)
 
(12,581
)
Issuances of common stock for stock-based compensation
 
53,437

 
9,599

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
121,115

 
(68,123
)
EFFECT OF EXCHANGE RATES
 
(945
)
 
(2,697
)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
 
(97,269
)
 
(277,346
)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
 
 
 
 
BEGINNING OF PERIOD
 
1,049,677

 
950,795

END OF PERIOD
 
$
952,408

 
$
673,449

Supplemental Disclosures
 
 
 
 
Cash paid for:
 
 
 
 
Income taxes
 
$
4,587

 
$
4,776

Interest
 
10,947

 
11,081

 
 
As of June 30,
Reconciliation of cash, cash equivalents and restricted cash
 
2020
 
2019
Cash and cash equivalents
 
$
931,605

 
$
643,574

Restricted cash:
 
 
 
 
Corporate restricted cash
 
20,496

 
22,201

Cash and cash equivalents of consolidated investment vehicles
 
235

 
4,786

Affiliate employee benefit trust cash included in Other non-current assets
 
72

 
2,888

Total cash, cash equivalents and restricted cash per consolidated statements of cash flows
 
$
952,408

 
$
673,449

See Notes to Consolidated Financial Statements

8

Table of Contents

LEGG MASON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except per share amounts or unless otherwise noted)
June 30, 2020
(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 (“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.

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

2. Significant Accounting Policies

Plan of Merger with Franklin Resources, Inc.
On February 17, 2020, Legg Mason entered into an Agreement and Plan of Merger (the "Merger Agreement") with Franklin Resources, Inc. ("Franklin Templeton") and Alpha Sub, Inc. ("Merger Sub"), a wholly owned subsidiary of Franklin Templeton, pursuant to which the Company will be merged into Merger Sub (the "Merger"), with the Company continuing as the surviving corporation and a wholly owned subsidiary of Franklin Templeton.

Pursuant to the Merger Agreement, each outstanding share of common stock of the Company will be converted into the right to receive from Franklin Templeton $50.00 in cash. All conditions to the closing of the Merger have been satisfied and the closing will take effect at the end of the day on July 31, 2020, the date this Report is being filed.

Risks and Uncertainties
In March 2020, the World Health Organization declared the outbreak of a novel coronavirus ("COVID-19") a global pandemic, and recommended containment and mitigation measures worldwide.  This contagious disease outbreak has adversely affected workforces, customers and economies. During the three months ended June 30, 2020, global financial markets began to improve due to government intervention and the gradual reopening of impacted businesses. Despite the market improvements, uncertainty remains regarding the extent and duration of business disruptions related to COVID-19 as well as its impact on the global economy.  In addition, the United States has seen a resurgence of COVID-19 infections after the initial growth rate was reduced, thus putting into question the ability of impacted businesses to reopen within the United States. Therefore, management is currently unable to determine the extent of the potential impacts to its financial condition or results of operations. 



9

Table of Contents

3. Investments and Fair Value of Assets and Liabilities

The disclosures below include details of Legg Mason's financial assets and financial liabilities that are measured at fair value and net asset value ("NAV"), excluding the financial assets and financial liabilities of consolidated investment vehicles ("CIVs"). See Note 16, Variable Interest Entities and Consolidation of Investment Vehicles, for information related to the assets and liabilities of CIVs that are measured at fair value or NAV.

The fair values of financial assets and (liabilities) of the Company were determined using the following categories of inputs:
 
 
As of June 30, 2020
 
 
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)
 
$
326,224

 
$
259,387

 
$

 
$

 
$
585,611

Equity investments:(2)
 
 
 
 
 
 
 
 
 
 
Seed capital investments
 
64,863

 
27,711

 
41,626

 
1,072

 
135,272

Investments related to long-term incentive plans
 
260,028

 

 

 

 
260,028

Other investments
 
7,936

 
1,518

 

 

 
9,454

Equity method investments:(3)
 
 
 
 
 
 
 
 
 


Seed capital investments(4)
 

 
5,000

 
41,716

 
12,695

 
59,411

Investments related to long-term incentive plans
 

 
2,500

(4 
) 

 
8,556

(2 
) 
11,056

Other investments(4)
 

 
 
 
141

 
8,333

 
8,474

Derivative assets(5)
 
4,173

 

 

 

 
4,173

Total(6)
 
$
663,224

 
$
296,116

 
$
83,483

 
$
30,656

 
$
1,073,479

Liabilities:
 
 
 
 
 
 
 
 
 
 
Contingent consideration liabilities(7)
 
$

 
$

 
$
(3,380
)
 
$

 
$
(3,380
)
Derivative liabilities(5)
 
(1,557
)
 

 

 

 
(1,557
)
Total
 
$
(1,557
)
 
$

 
$
(3,380
)
 
$

 
$
(4,937
)

10

Table of Contents

 
 
As of March 31, 2020
 
 
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)
 
$
594,514

 
$
12,521

 
$

 
$

 
$
607,035

Equity investments:(2)
 
 
 
 
 
 
 
 
 
 
Seed capital investments
 
48,940

 
19,538

 
38,895

 
1,360

 
108,733

Investments related to long-term incentive plans
 
210,891

 

 

 


 
210,891

Other investments
 
12,406

 
1,577

 

 

 
13,983

Equity method investments:(3)
 
 
 
 
 


 


 


Seed capital investments(4)
 

 

 
43,059

 
12,571

 
55,630

Investments related to long-term incentive plans(2)
 

 

 

 
5,287

 
5,287

Other investments(4)
 

 

 
48

 
8,371

 
8,419

Derivative assets(5)
 
4,716

 

 

 

 
4,716

Total(6)
 
$
871,467

 
$
33,636

 
$
82,002

 
$
27,589

 
$
1,014,694

Liabilities: