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name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>8. Commitments and Contingencies</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>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 2025. Certain leases provide for renewal options and contain escalation clauses providing for increased rentals based upon maintenance, utility and tax increases. </P> <P style="MARGIN-TOP: 9pt; MARGIN-BOTTOM: 0pt" align=justify>As of June 30, 2009, the minimum annual aggregate rentals under operating leases and servicing agreements are as follows: </P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt" align=justify>&nbsp;</P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=131></TD> <TD width=138></TD></TR> <TR> <TD vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>Remaining 2010</P></TD> <TD vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;121,923</P></TD></TR> <TR> <TD vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>2011</P></TD> <TD vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>129,113</P></TD></TR> <TR> <TD vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>2012</P></TD> <TD vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>118,802</P></TD></TR> <TR> <TD vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>2013</P></TD> <TD vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>106,268</P></TD></TR> <TR> <TD vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>2014</P></TD> <TD vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>89,233</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>Thereafter</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>686,185</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=174> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt" align=justify>Total</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=184> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0.75pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;1,251,524</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The minimum rental commitments shown above have not been reduced by $103,704 for minimum sublease rentals to be received in the future under non-cancelable subleases, of which approximately 90% is due from one counterparty. &nbsp;If a sub-tenant defaults on a sublease, Legg Mason may incur operating expense charges to reflect expected future sublease rentals at reduced amounts, as a result of the current commercial real estate market.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The table above also does not include aggregate obligations of $35,067 for property and equipment under capital leases.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As of June 30, 2009, Legg Mason had commitments to invest approximately $25,372 in investment vehicles. These commitments will be funded as required through the end of the respective investment periods through fiscal 2011. </P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>See Note 10, Liquidity Fund Support, for additional information related to Legg Mason commitments.</P> <P style="MARGIN-TOP: 9pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>In the normal course of business, Legg Mason enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. Legg Mason&#146;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. </P> <P style="MARGIN-TOP: 9pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>Legg Mason has been the subject of customer complaints and has also been named as a defendant in various legal actions arising primarily from securities brokerage, asset management and investment banking activities, including certain class actions, which primarily allege violations of securities laws and seek unspecified damages, which could be substantial. Legg Mason is also involved in governmental and self-regulatory agency inquiries, investigations and proceedings. </P> <P style="MARGIN-TOP: 9pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>In accordance with SFAS No.&nbsp;5 &#147;Accounting for Contingencies,&#148; 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. While the ultimate resolution of these matters cannot be currently determined, in the opinion of management, after consultation with legal counsel, Legg Mason does not believe that the resolution of these actions will have a material adverse effect on Legg Mason&#146;s financial condition. However, the results of operations could be materially affected during any period if liabilities in that period differ from Legg Mason&#146;s prior estimates, and Legg Mason&#146;s cash flows could be materially affected during any period in which these matters are 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 or insurance reimbursement. </P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Legg Mason and a current and former officer, together with an underwriter in a public offering, &nbsp;are named as defendants in a consolidated legal action. The action alleges that the defendants violated the Securities Act of 1933 by omitting certain material facts with respect to the acquisition of Citigroup&#146;s worldwide asset management business in a prospectus used in a secondary stock offering in order to artificially inflate the price of Legg Mason common stock. The action sought certification of a class of shareholders who purchased Legg Mason common stock in a secondary public offering on or about March&nbsp;9, 2006 and seeks unspecified damages. &nbsp;Legg Mason intends to defend the action vigorously. On March 17, 2008, the action was dismissed with prejudice. However, the plaintiffs have appealed the dismissal. Legg Mason cannot predict the eventual outcome of the appeal at this point, or whether the action will have a material adverse effect on Legg Mason.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>9. Earnings Per Share</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Basic earnings per share attributable to Legg Mason, Inc. common shareholders (&#147;EPS&#148;) is calculated by dividing net income or loss attributable to Legg Mason, Inc. by the weighted average number of shares outstanding. The calculation of weighted average shares includes common shares and shares exchangeable into common stock. &nbsp;Diluted EPS is similar to basic EPS, but adjusts for the effect of potentially issuable common shares, except when inclusion is antidilutive. &nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>For periods where a net loss attributable to Legg Mason, Inc. is reported, the inclusion of potentially issuable common shares will decrease the net loss per share. &nbsp;Since this would be antidilutive, such shares are excluded from the calculation. &nbsp;Basic and diluted earnings per share for the three months ended June 30, 2009 and 2008 include all vested shares of restricted stock related to Legg Mason&#146;s deferred compensation plans. &nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The following table presents the computations of basic and diluted EPS:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=234></TD> <TD width=70></TD> <TD width=64></TD> <TD width=72></TD> <TD width=69></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=368 colSpan=4> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: normal" align=center>Three Months Ended June 30,</P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=180 colSpan=2> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=188 colSpan=2> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>2008</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=313> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=93> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>Basic</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=86> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>Diluted</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>Basic</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=92> <P style="FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=center>Diluted <SUP>(1)</SUP></P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=93> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=86> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=96> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=92> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">Weighted average shares outstanding</P></TD> <TD vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>142,006</P></TD> <TD vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>142,006</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>140,505</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>140,505</P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">Potential common shares:</P></TD> <TD vAlign=bottom width=93> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=86> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=96> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=92> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="PADDING-LEFT: 25.25pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt">Employee stock options</P></TD> <TD vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>17</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD></TR> <TR> <TD vAlign=bottom width=313> <P style="PADDING-LEFT: 34.1pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -8.85pt; LINE-HEIGHT: 13pt">Unvested shares related to deferred compensation</P></TD> <TD vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>121</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=313> <P style="PADDING-LEFT: 32.4pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 13pt">Shares issuable upon payment of contingent consideration</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>982</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>-</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=313> <P style="PADDING-RIGHT: 18pt; PADDING-LEFT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: 0.05pt; LINE-HEIGHT: 13pt">Total weighted average diluted shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>142,006</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>143,126</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>140,505</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>140,505</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=313> <P style="PADDING-RIGHT: 18pt; PADDING-LEFT: 25.1pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 13pt">Net income (loss) attributable to</P> <P style="PADDING-RIGHT: 18pt; PADDING-LEFT: 25.1pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 13pt">&nbsp;Legg Mason, Inc.</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;50,054</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;50,054</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$(36,127)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$(36,127)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=313> <P style="PADDING-LEFT: 25.1pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -17.9pt; LINE-HEIGHT: 13pt">Net income (loss) per share attributable to</P> <P style="PADDING-LEFT: 25.1pt; FONT-SIZE: 11pt; MARGIN: 0pt; TEXT-INDENT: -17.9pt; LINE-HEIGHT: 13pt">&nbsp;Legg Mason, Inc. common shareholders</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=93> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.35</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=86> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;0.35</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.26)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 11pt; MARGIN: 0pt; LINE-HEIGHT: 13pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.26)</P></TD></TR> <TR> <TD vAlign=bottom width=681 colSpan=5> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt"><SUP>(1) </SUP>&nbsp;&nbsp;Diluted shares are the same as basic shares for periods with a loss.</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify><BR>The diluted EPS calculation for the three months ended June 30, 2008 excludes 4,953 potential common shares that are antidilutive due to the net loss for the period. &nbsp;Also, the diluted EPS calculations for the three months ended June 30, 2009 and 2008 exclude any potential common shares issuable under the convertible 2.5% senior notes or the convertible Equity Units because the market price of Legg Mason common stock has not exceeded the price at which conversion under either instrument would be dilutive using the treasury stock method. &nbsp;&nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Options to purchase 5,490 shares for the three months ended June 30, 2009 were not included in the computation of diluted earnings per share because the presumed proceeds from exercising such options, including related unamortized cost and income tax benefits, if any, exceed the average price of the common shares for the period and therefore the options are deemed antidilutive. &nbsp;Diluted EPS for the June 30, 2009 period also includes unvested shares of restricted stock related to those plans, except for 1,376 shares, which were deemed antidilutive. </P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>10. Liquidity Fund Support</B></P> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The par value, support amounts, collateral and income statement impact for the quarters ended June 30, 2009 and 2008, for all support provided to certain liquidity funds that remained outstanding as of the end of each period were as follows:<B> </B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=167></TD> <TD width=63></TD> <TD width=80></TD> <TD width=81></TD> <TD width=72></TD> <TD width=67></TD></TR> <TR> <TD vAlign=bottom width=222> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=486 colSpan=5> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; PADDING-BOTTOM: 3pt; LINE-HEIGHT: 14pt; BORDER-BOTTOM: ridge" align=center>As of June&nbsp;30, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=222> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt">Description</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Par<BR>Value</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=107> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Support<BR>Amount</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Cash<BR>Collateral<SUP>(1)</SUP></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Pre Tax<BR>Gain<SUP>(2)</SUP></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=90> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>After Tax<BR>Gain<SUP>(3)</SUP></P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=222> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Capital Support Agreements&nbsp;&#150;<BR>Non-asset Backed Securities</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>n/m</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=107> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;34,500</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;34,500</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ (17,558)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=90> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ (12,524)</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=163></TD> <TD width=72></TD> <TD width=81></TD> <TD width=72></TD> <TD width=53></TD> <TD width=18></TD> <TD width=64></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=217> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=481 colSpan=6> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>As of June 30, 2008</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Description</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=96> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Par</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Support Amount</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Cash Collateral<SUP>(1)</SUP></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=96 colSpan=2> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Pre Tax Charge<SUP>(2)</SUP></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=85> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>After Tax Charge<SUP>(3)</SUP></P></TD></TR> <TR> <TD vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Letters of Credit</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;979,900</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;450,000</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;251,250</P></TD> <TD vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;46,335</P></TD> <TD vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;25,030</P></TD></TR> <TR> <TD vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Capital Support Agreements &#150;Asset Backed Securities</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,704,400</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>655,000</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>655,000</P></TD> <TD vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>210,799</P></TD> <TD vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>125,116</P></TD></TR> <TR> <TD vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total Return Swap</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>890,000</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>890,000</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>195,780</P></TD> <TD vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,085</P></TD> <TD vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,747</P></TD></TR> <TR> <TD vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Purchase of Non-bank Sponsored SIVs<SUP>(4)</SUP></P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>57,000</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>57,000</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>4,265</P></TD> <TD vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,342</P></TD></TR> <TR> <TD vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Purchase of Canadian Conduit Securities</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>95,000</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>95,000</P></TD> <TD vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>390</P></TD> <TD vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>211</P></TD></TR> <TR> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=217> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$4,726,300</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,147,000</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=96> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$1,102,030</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=96 colSpan=2> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 266,874</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid; BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=85> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$155,446</P></TD></TR> <TR> <TD vAlign=bottom width=699 colSpan=7> <P style="PADDING-LEFT: 7.2pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: normal"><SUP>1</SUP> &nbsp;Included in restricted cash on the Consolidated Balance Sheet.</P> <P style="PADDING-LEFT: 15.1pt; MARGIN: 0pt; TEXT-INDENT: -15.1pt; LINE-HEIGHT: normal"><SUP>2 &nbsp;&nbsp;</SUP>Pre tax (gains) charges include (increases) reductions in the value of underlying securities, in addition to gains (losses) on foreign exchange forward contracts of $1,371 and $(946) as of June 30, 2009 and 2008, respectively, and an interest payment of $1,056 received during the June 2009 quarter related to SIV securities that were sold in the fourth quarter of fiscal 2009. &nbsp;These items are included in Other non-operating income (expense) on the Consolidated Statements of Operations.</P> <P style="MARGIN: 0pt; LINE-HEIGHT: normal" align=justify><SUP>3 &nbsp;&nbsp;</SUP>After tax and after giving effect to related operating expense adjustments, if applicable.</P> <P style="MARGIN: 0pt; LINE-HEIGHT: normal" align=justify><SUP>4</SUP> &nbsp;Securities issued by structured investment vehicles (&#147;SIVs&#148;).</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>In April 2009, due to the stabilization of the net asset value of one of the supported liquidity funds, Legg Mason terminated one capital support agreement (&#147;CSA&#148;) to provide up to $7 million in contributions to the fund.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify>In July 2009, Legg Mason terminated another CSA to provide up to $7 million in contributions to one fund, thereby reducing the outstanding liquidity fund support amount to $27.5 million.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>11. &nbsp;Variable Interest Entities</B></P> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>In the normal course of its business, Legg Mason sponsors and is the manager of various types of investment vehicles that are considered VIEs. For its services, Legg Mason is entitled to receive management fees and may be eligible, under certain circumstances, to receive additional subordinate management fees or other incentive fees. Legg Mason did not sell or transfer assets to any of the VIEs except for cash payments under fund support agreements. Legg Mason&#146;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. Uncollected management fees from these VIEs were not material at June 30, 2009 and March 31, 2009. Legg Mason has not issued any investment performance guarantees to these VIEs or their investors.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>During fiscal 2010 and 2009, Legg Mason had variable interests in certain liquidity funds to which it has provided various forms of credit and capital support. After evaluating both the contractual and implied variable interests in these funds, as of June 30, 2009 and March 31, 2009, it has been determined that Legg Mason is not the primary beneficiary of these funds.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As of June 30, 2009 and March 31, 2009, Legg Mason was the primary beneficiary of one sponsored investment fund VIE, due to the level of corporate ownership, which resulted in consolidation. This VIE had total assets and total equity of $59.2 million and $48.2 million as of June 30, 2009 and March 31, 2009, respectively. Legg Mason&#146;s investment in this VIE was $31.0 million and $26.3 million as of June 30, 2009 and March 31, 2009, respectively, which represents the maximum risk of loss. The assets of this VIE are primarily comprised of investment securities.</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>&nbsp;</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As of June 30, 2009 and March 31, 2009, for VIEs in which Legg Mason holds a significant variable interest or is the sponsor and holds a variable interest, but for which it was not the primary beneficiary, Legg Mason&#146;s carrying value, the related VIEs assets and liabilities and maximum risk of loss were as follows:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=146></TD> <TD width=83></TD> <TD width=83></TD> <TD width=88></TD> <TD width=73></TD></TR> <TR> <TD vAlign=bottom width=195> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=438 colSpan=4> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt; PADDING-BOTTOM: 3pt; BORDER-BOTTOM: ridge" align=center>As of June 30, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=195> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>VIE Assets That<BR>the Company<BR>Does Not<BR>Consolidate</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>VIE Liabilities<BR>That the<BR>Company Does<BR>Not Consolidate</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>Equity Interests<BR>on the<BR>Consolidated<BR>Balance Sheet</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=98> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>Maximum<BR>Risk of Loss*</P></TD></TR> <TR> <TD vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Liquidity funds subject to capital support</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;5,596,875</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,611</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 34,500</P></TD></TR> <TR> <TD vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">CDOs/CLOs</P></TD> <TD vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>4,382,842</P></TD> <TD vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>4,074,872</P></TD> <TD vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>&#151;</P></TD> <TD vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>1,426</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Other sponsored investment funds</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>11,542,853</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>4,358</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>26,477</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>45,811</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Total</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 21,522,570</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 4,178,841</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 26,477</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 81,737</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify>&nbsp;</P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=146></TD> <TD width=83></TD> <TD width=83></TD> <TD width=88></TD> <TD width=73></TD></TR> <TR> <TD vAlign=bottom width=195> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=438 colSpan=4> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt; PADDING-BOTTOM: 3pt; BORDER-BOTTOM: ridge" align=center>As of March 31, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=195> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>VIE Assets That<BR>the Company<BR>Does Not<BR>Consolidate</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>VIE Liabilities<BR>That the<BR>Company Does<BR>Not Consolidate</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>Equity Interests<BR>on the<BR>Consolidated<BR>Balance Sheet</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=98> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.85pt" align=center>Maximum<BR>Risk of Loss*</P></TD></TR> <TR> <TD vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Liquidity funds subject to capital support</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;7,548,539</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;&nbsp;121,338</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 41,500</P></TD></TR> <TR> <TD vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">CDOs/CLOs</P></TD> <TD vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>5,116,004</P></TD> <TD vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>4,786,604</P></TD> <TD vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>&#151;</P></TD> <TD vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>1,566</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Other sponsored investment funds</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>18,241,540</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>3,381</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>34,458</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>52,019</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=195> <P style="PADDING-LEFT: 10pt; MARGIN: 0pt; TEXT-INDENT: -10pt">Total</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 30,906,083</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 4,911,323</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=117> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 34,458</P></TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=98> <P style="PADDING-RIGHT: 3.6pt; MARGIN: 0pt" align=right>$ 95,085</P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0pt; PADDING-LEFT: 36pt; MARGIN-BOTTOM: -12pt; TEXT-INDENT: -36pt" align=justify>*</P> <P style="PADDING-LEFT: 36pt; MARGIN: 0pt" align=justify>Includes capital support to liquidity funds, equity interests the Company has made or is required to make and any earned but uncollected management fees.</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>&nbsp;</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The assets of these VIEs are primarily comprised of cash and cash equivalents and investment securities, and the liabilities are primarily comprised of debt and various expense accruals.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>12. &nbsp;Derivatives and Hedging</B></P> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>During the three months ended June 30, 2009, Legg Mason did not hold any derivatives designated in a formal hedge relationship under SFAS No. 133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148;.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Legg Mason continues to use currency forwards to economically hedge the risk of movements in exchange rates, primarily between the U.S. dollar, euro, Great Britain pounds, Canadian dollars, and Australian dollars. &nbsp;As of June 30, 2009, Legg Mason had open currency forward contracts with aggregate gross fair values of $3,632 and $2,393, classified as Other assets and Other liabilities, respectively. &nbsp;In the Consolidated Balance Sheets, Legg Mason nets the fair value of certain foreign currency forwards executed with the same counterparty where Legg Mason has both the legal right and intent to settle the contracts on a net basis. &nbsp;For the quarter ended June 30, 2009, $(3,558) was recognized in Other income (expense) relating to currency forward contracts intended to offset actual movements in currency exchange rates.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As more fully described in Note 10, Legg Mason has engaged in various forms of liquidity fund support transactions that constitute derivatives.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>13. Subsequent Event</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>On July 15, 2009 Legg Mason commenced an offer to exchange up to 95% of its Equity Units in the form of Corporate Units (the &#147;Units&#148;) in order to increase its equity capital levels and reduce the amount of its outstanding debt and related interest expense. &nbsp;The Company is offering to exchange up to 21,850,000 of its outstanding Units for 0.8881 of a share of Legg Mason common stock and $6.25 in cash per Unit. &nbsp;The exchange offer for the Units will expire on August 12, 2009, unless extended by the Company. &nbsp;</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>1. Interim Basis of Reporting</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The accompanying unaudited interim consolidated financial statements of Legg Mason, Inc. and its subsidiaries (collectively &#147;Legg Mason&#148;) have been prepared in accordance with accounting principles generally accepted in the United States of America (&#147;U.S. GAAP&#148;) for interim financial information. &nbsp;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. &nbsp;Legg Mason has evaluated all subsequent events through the time that we filed these financial statements in our quarterly report on Form 10-Q Report with the Securities and Exchange Commission on August 5, 2009.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The nature of our business is such that the results of any interim period are not necessarily indicative of the results of a full year. The fiscal year-end condensed balance sheet was derived from audited financial statements and, in accordance with interim financial information standards, does not include all disclosures required by U.S. GAAP for annual financial statements. &nbsp;Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation, including fund support previously reported as Other non-operating expense and Net purchases of trading investments. </P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The information contained in the interim consolidated financial statements should be read in conjunction with our latest Annual Report on Form 10-K filed with <A name=OLE_LINK2></A>the Securities and Exchange Commission. </P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Unless otherwise noted, all per share amounts include both common shares of Legg Mason and shares issued in connection with the acquisition of Legg Mason Canada Inc., which are exchangeable into common shares of Legg Mason on a one-for-one basis at any time. &nbsp;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.</P> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Terms such as &#147;we,&#148; &#147;us,&#148; &#147;our,&#148; and &#147;company&#148; refer to Legg Mason.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>2. Significant Accounting Policies </B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><I>Retroactive Accounting Policies Adopted</I></P> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 11pt; LINE-HEIGHT: 14pt" align=justify>Certain prior year amounts have been retroactively revised as a result of the adoption of Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 160, &#147;Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No. 51&#148; and Financial Accounting Standards Board (&#147;FASB&#148;) Staff Position (&#147;FSP&#148;) APB 14-1, &#147;Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).&#148; &nbsp;</P> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 7pt; LINE-HEIGHT: 14pt" align=justify>SFAS 160 has both retroactive and prospective provisions that change the accounting and reporting for minority interests. &nbsp;Under its retroactive provisions, minority interests have been recharacterized as noncontrolling interests and classified as a component of equity, if permanent. &nbsp;Also, net income (loss) is no longer affected by minority interests, but under SFAS 160, both net income (loss) and comprehensive income (loss) are attributed to noncontrolling and parent interests. &nbsp;Further, EITF Topic No. D-98, &#147;Classification and Measurement of Redeemable Securities&#148;, requires temporary equity classification for instruments that are currently redeemable or convertible for cash or other assets at the option of the holder. &nbsp;For Legg Mason, minority interests of $31,020 related to consolidated sponsored investment funds that are redeemable for cash or other assets have been recharacterized and classified as Redeemable noncontrolling interests on the Consolidated Balance Sheets as of March 31, 2009. &nbsp;During the quarter ended June 30, 2009, net income attributable to noncontrolling interests was $2,270 and net subscriptions received were $3,336 resulting in a balance as of June 30, 2009 of $36,626. &nbsp;Redeemable noncontrolling interests and related activity for the quarter ended June 30, 2008 were not material. &nbsp;The prospective provisions of SFAS 160 do not have a material impact on Legg Mason&#146;s consolidated financial statements.</P> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 7pt; LINE-HEIGHT: 14pt" align=justify>FSP APB&nbsp;14-1 requires that issuers of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) should separately account for the liability and equity (conversion feature) components of the instruments. As a result, interest expense should be imputed and recognized based upon the entity&#146;s nonconvertible debt borrowing rate at the date of issuance, which results in lower net income. The 2.5% convertible senior notes issued by Legg Mason in January 2008 are subject to FSP APB&nbsp;14-1. Prior to FSP APB&nbsp;14-1, Accounting Principles Board Opinion No.&nbsp;14, &#147;Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants&#148; (&#147;APB&nbsp;14&#148;), provided that no portion of the proceeds from the issuance of the instrument should be attributable to the conversion feature. &nbsp;Upon retroactive application of FSP APB 14-1, the effects on Net loss and Net loss per share for the quarter ended June 30, 2008, and on Long-term debt, Retained earnings, Additional paid-in capital and Deferred income tax assets as of March 31, 2009 were as follows:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=285></TD> <TD width=123></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Three Months Ended</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 18pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>June 30, 2008</P></TD></TR> <TR> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Net loss, as previously reported</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$(31,273)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">&nbsp;Additional interest expense pursuant to </P> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: 0.55pt; LINE-HEIGHT: 14pt">FSP APB 14-1, net of income taxes</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(4,854)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 11pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -11pt; LINE-HEIGHT: 14pt">Net loss attributable to Legg Mason, Inc., as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$(36,127)</P></TD></TR> <TR> <TD vAlign=top width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=544 colSpan=2> <P style="PADDING-LEFT: 11pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -11pt; LINE-HEIGHT: 14pt">Net loss per share attributable to Legg Mason, Inc. common shareholders:</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Basic, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.22)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 29.55pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 14pt">Additional interest expense pursuant to </P> <P style="PADDING-LEFT: 29.55pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">FSP APB &nbsp;14-1, net of income taxes</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(0.04)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Basic, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.26)</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Diluted, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.22)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 29.55pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 14pt">Additional interest expense pursuant to </P> <P style="PADDING-LEFT: 29.55pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">FSP APB 14-1, net of income taxes</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(0.04)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Diluted, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(0.26)</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&nbsp;March 31, 2009</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Long-term debt, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,965,204</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 14pt">Impact of FSP APB 14-1</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 18pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(233,202)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Long-term debt, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,732,002</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Retained earnings, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 1,155,660</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: 11pt; LINE-HEIGHT: 14pt">Impact of FSP APB 14-1</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 18pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(24,035)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Retained earnings, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 1,131,625</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Additional paid-in capital, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 3,284,347</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Impact of FSP APB 14-1</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>168,183</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Additional paid-in capital, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 3,452,530</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=164> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Deferred income tax assets, as previously reported</P></TD> <TD vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;848,488</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Impact of FSP APB 14-1</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 18pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(89,055)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=380> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -20pt; LINE-HEIGHT: 14pt">Deferred income tax assets, as currently reported</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=164> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;759,433</P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 4.5pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 11pt" align=justify>Additional disclosures required under FSP APB 14-1 are addressed in Note 6.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><I>Fair Value Measurements</I></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>FASB Statement No. 157, &#147;Fair Value Measurements&#148; (&#147;SFAS&nbsp;157&#148;), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Under SFAS&nbsp;157, a fair value measurement should reflect all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance. &nbsp;</P> <P style="MARGIN: 0pt" align=justify>&nbsp;</P> <P style="MARGIN: 0pt" align=justify>SFAS&nbsp;157 establishes a hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. &nbsp;The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Legg Mason&#146;s financial instruments measured and reported at fair value are classified and disclosed in one of the following categories:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="PADDING-LEFT: 18pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Level 1 - Financial instruments for which prices are quoted in active markets, which for Legg Mason, include investments in publicly traded mutual funds with quoted market prices and equities listed in active markets.</P> <P style="MARGIN-TOP: 4.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>Level 2 &#150; Financial instruments for which: prices are quoted for similar assets and liabilities in active markets; prices are quoted for identical or similar assets in inactive markets; or prices are based on observable inputs, other than quoted prices, such as models or other valuation methodologies. For Legg Mason, this category may include repurchase agreements, fixed income securities, and certain proprietary fund products.</P> <P style="MARGIN-TOP: 5.5pt; PADDING-LEFT: 18pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>Level 3 &#150; Financial instruments for which values are based on unobservable inputs, including those for which there is little or no market activity. &nbsp;This category includes derivative assets and liabilities related to fund support arrangements on non-structured investment vehicle (&#147;SIV&#148;) related securities, investments in partnerships, limited liability companies, and private equity funds. &nbsp;Previously, this category included derivative assets related to fund support agreements and certain owned securities issued by SIVs. &nbsp;This category may also include certain proprietary fund products with redemption restrictions.</P> <P style="MARGIN-TOP: 5.5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify>The valuation of an asset or liability may involve inputs from more than one level of the hierarchy. &nbsp;The level in the fair value hierarchy within which a fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.</P> <P style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=justify>Any transfers between categories are measured at the beginning of the period.</P> <P style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=justify>See Note&nbsp;3 for additional information regarding fair value measurements.</P> <P style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 14pt" align=justify><I>Recent Accounting Developments</I></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The following relevant accounting pronouncement was recently issued.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>In June 2009, the FASB issued Statement No. 167, &#147;Amendments to FASB Interpretation No. 46(R)&#148; (&#147;SFAS 167&#148;), which will be effective for Legg Mason for fiscal 2011. &nbsp;SFAS 167 amendments include a new approach for determining who should consolidate a variable interest entity (&#147;VIE&#148;), changes to when it is necessary to reassess who should consolidate a VIE and changes in the assessment of which entities are VIEs. &nbsp;The new approach for determining who should consolidate a VIE requires an analysis of whether a variable interest gives an enterprise a controlling financial interest in a VIE through both the power to direct the activities that most significantly impact the VIE&#146;s economic performance and the obligation to absorb losses or the right to benefits that could potentially be significant to the VIE. &nbsp;SFAS 167 eliminates the quantitative approach previously required to determine whether a VIE should be consolidated. &nbsp;It also requires that for kick-out rights to be effective, they must be vested with one investor, rather than a simple majority of investors, as under prior guidance. &nbsp;Legg Mason is continuing to evaluate the impact of SFAS 167 and currently expects that it will require the consolidation of certain sponsored funds that will be material to its balance sheet, revenues and expenses, but have no impact on net income attributable to Legg Mason, Inc. &nbsp;&nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>3. &nbsp;Fair Values of Assets and Liabilities</B></P> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The fair values of financial assets and (liabilities) of the Company were determined using the following categories of inputs:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=176></TD> <TD width=83></TD> <TD width=81></TD> <TD width=81></TD> <TD width=79></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=432 colSpan=4> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of June 30, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Quoted prices in active markets (Level 1)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Significant other observable inputs</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>(Level 2)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Significant unobservable inputs</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>(Level 3)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Total</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>ASSETS:</B></P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Investments relating to long-term incentive compensation plans<SUP>(1)</SUP></P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;145,399</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;145,399</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Proprietary fund products and other investments<SUP>(2)</SUP></P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>91,468</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>67,142</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>51,999</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>210,609</P></TD></TR> <TR> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 36.25pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 14pt">Total trading investment securities</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>236,867</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>67,142</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>51,999</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>356,008</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Available-for-sale investment securities</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,521</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,917</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>12</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>6,450</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 21.6pt; PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Investment in partnerships and LLCs</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>928</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>70,967</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>71,895</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Derivative assets:</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Currency hedge derivatives</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,283</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,283</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Equity Securities</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,142</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,142</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;243,599</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;71,059</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;125,120</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;439,778</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>LIABILITIES:</B></P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Derivative Liabilities:</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Fund support</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,500)</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(5,500)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Currency hedge derivatives</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(2,044)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(2,044)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;(2,044)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,500)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(7,544)</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt"><BR></P> <P style="MARGIN: 0pt"><BR>&nbsp;</P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=176></TD> <TD width=83></TD> <TD width=81></TD> <TD width=81></TD> <TD width=79></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=432 colSpan=4> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of March 31, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Quoted prices in active markets (Level 1)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Significant other observable inputs</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>(Level 2)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Significant unobservable inputs</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>(Level 3)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Total</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>ASSETS:</B></P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Investments relating to long-term incentive compensation plans<SUP>(1)</SUP></P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;128,785</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;128,785</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Proprietary fund products and other investments<SUP>(2)</SUP></P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>115,117</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>51,471</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>40,719</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>207,307</P></TD></TR> <TR> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 36.25pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 14pt">Total trading investment securities</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>243,902</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>51,471</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>40,719</P></TD> <TD style="BORDER-TOP: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>336,092</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Available-for-sale investment securities</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,105</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,701</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>12</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>6,818</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 21.6pt; PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Investment in partnerships and LLCs</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>796</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>58,719</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>59,515</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -14.4pt; LINE-HEIGHT: 14pt">Derivative assets:</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-RIGHT: 7.2pt; PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Currency hedge derivatives</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>8,976</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>8,976</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Equity Securities</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,340</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,340</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;256,779</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;55,172</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;101,790</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;413,741</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>LIABILITIES:</B></P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 20.15pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -12.95pt; LINE-HEIGHT: 14pt">Derivative Liabilities:</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=108> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=105> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Fund support</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=108> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(20,631)</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;(20,631)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Currency hedge derivatives</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(773)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(773)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=234> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(773)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=108> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=108> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(20,631)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=105> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;(21,404)</P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 0pt; PADDING-LEFT: 20pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: -11pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(1)</P> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">Primarily mutual funds where there is minimal market risk to the Company as any change in value is offset by an adjustment to compensation expense and related deferred compensation liability.</P> <P style="MARGIN-TOP: 0pt; PADDING-LEFT: 20pt; FONT-SIZE: 9pt; MARGIN-BOTTOM: -11pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 11pt">(2)</P> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">Primarily mutual funds that are invested approximately 60% and 40% in equity and debt securities, respectively. &nbsp;Includes approximately $27.2 million and $16.6 million related to noncontrolling interests of consolidated investment funds as of June 30, 2009 and March 31, 2009, respectively.</P> <P style="MARGIN: 0pt"><BR>The tables below present a summary of changes in financial assets and (liabilities) measured at fair value using significant unobservable inputs (Level&nbsp;3)&nbsp;for the periods from April 1, 2009 to June 30, 2009 and April 1, 2008 to June 30, 2008:</P> <P style="MARGIN: 0pt"><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=119></TD> <TD width=76></TD> <TD width=88></TD> <TD width=87></TD> <TD width=84></TD> <TD width=82></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of April 1, 2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Purchases, sales, issuances and settlements, net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Net transfer in (out) of Level 3</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Realized and unrealized gains/(losses), net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of June 30, 2009</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>ASSETS:</B></P></TD> <TD vAlign=top width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Proprietary fund products and other investments</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;40,719</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;448</P></TD><A name=OLE_LINK19></A><A name=OLE_LINK20></A><A name=OLE_LINK21></A> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 5,777</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,055</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;51,999</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Investment in partnerships and LLCs</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>58,719</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>12,275</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(27)</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>70,967</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Other investments</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,352</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(24)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(174)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,154</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 101,790</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 12,699</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 5,777</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,854</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 125,120</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>LIABILITIES:</B></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="PADDING-LEFT: 17.3pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10.1pt; LINE-HEIGHT: 14pt">Fund support</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;(20,631)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;15,131</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(5,500)</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=494 colSpan=4> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total realized and unrealized gains, net</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=112> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;19,985</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=717 colSpan=6> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&nbsp;</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=119></TD> <TD width=76></TD> <TD width=88></TD> <TD width=87></TD> <TD width=84></TD> <TD width=82></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of April 1, 2008</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Purchases, sales, issuances and settlements, net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Net transfer in (out) of Level 3</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Realized and unrealized gains/(losses), net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Value as of June 30, 2008</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>ASSETS:</B></P></TD> <TD vAlign=top width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Securities issued by SIVs</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 141,509</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;(23,307)</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18,575)</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;99,627</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Proprietary fund products and other investments</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>23,781</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(13,781)</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(149)</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>9,851</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Investment in partnerships and LLCs</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>67,022</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(7,908)</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(102)</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>59,012</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total return swap</P></TD> <TD vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>45,706</P></TD> <TD vAlign=bottom width=117> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,230</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(5,085)</P></TD> <TD vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>45,851</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Other investments</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,903</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(650)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,253</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;279,921</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;(39,766)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24,561)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>215,594</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=158> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>LIABILITIES:</B></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=158> <P style="PADDING-LEFT: 17.3pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10.1pt; LINE-HEIGHT: 14pt">Fund support</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=102> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;(551,654)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(242,434)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=110> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ (794,088)</P></TD></TR> <TR> <TD vAlign=top width=158> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=102> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=117> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=112> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=494 colSpan=4> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total realized and unrealized (losses), net</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=112> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;(266,995)</P></TD> <TD vAlign=bottom width=110> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=717 colSpan=6> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 9pt; MARGIN: 0pt; LINE-HEIGHT: 11pt">&nbsp;</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Realized and unrealized gains and losses recorded for Level 3 investments are included in Other non-operating income (expense) on the Consolidated Statements of Operations. &nbsp;The total net realized and unrealized gains (losses) of $20.0 million and $(267.0) million for the quarters ended June 30, 2009 and 2008, respectively, are attributable to the change in unrealized gains (losses) relating to the assets and liabilities still held at the reporting date.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt"><B>4. &nbsp;Fixed Assets</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Fixed assets consist of equipment, software and leasehold improvements and capital lease assets. &nbsp;Equipment consists primarily of communications and technology hardware and furniture and fixtures. &nbsp;Software includes purchased software and internally developed software. Fixed assets are reported at cost, net of accumulated depreciation and amortization. &nbsp;The following table reflects the components of fixed assets as of:</P> <P style="MARGIN: 0pt"><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=264></TD> <TD width=110></TD> <TD width=101></TD></TR> <TR> <TD width=352> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD width=147> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD width=135> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=352> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=147> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>June 30, 2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=135> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>March 31, 2009 </P></TD></TR> <TR> <TD vAlign=top width=352> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Equipment</P></TD> <TD vAlign=bottom width=147> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;188,899</P></TD> <TD vAlign=bottom width=135> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;180,668</P></TD></TR> <TR> <TD vAlign=top width=352> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Software</P></TD> <TD vAlign=bottom width=147> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>199,990</P></TD> <TD vAlign=bottom width=135> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>193,109</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=352> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Leasehold improvements and capital lease assets</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=147> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>332,477</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=135> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>314,963</P></TD></TR> <TR> <TD vAlign=top width=352> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total cost</P></TD> <TD vAlign=bottom width=147> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>721,366</P></TD> <TD vAlign=bottom width=135> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>688,740</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=352> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Less: accumulated depreciation and amortization</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=147> <P style="PADDING-RIGHT: 10.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(340,958)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=135> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(321,697)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=352> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Fixed assets, net</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=147> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;380,408</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=135> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;367,043</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt"><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Depreciation and amortization expense included in operating income was $22,016 and $22,826 for the quarters ended June 30, 2009 and 2008, respectively.</P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="MARGIN-TOP: 9pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=justify><B>5. Intangible Assets and Goodwill </B></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The following tables reflect the components of intangible assets as of: </P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=214></TD> <TD width=103></TD> <TD width=100></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>June 30, 2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>March 31, 2009</P></TD></TR> <TR> <TD vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt"><B>Amortizable asset management contracts</B></P></TD> <TD vAlign=bottom width=137> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 2pt" align=right>&nbsp;</P></TD> <TD vAlign=bottom width=133> <P style="PADDING-RIGHT: 23.05pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 2pt" align=right>&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=286> <P style="PADDING-RIGHT: 23.05pt; MARGIN-TOP: 5pt; PADDING-LEFT: 24pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Cost</P></TD> <TD vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;210,851</P></TD> <TD vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;208,416</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 24pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Accumulated amortization</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="PADDING-RIGHT: 25.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>(115,475)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>(108,376)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 36pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>95,376</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>100,040</P></TD></TR> <TR> <TD vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt"><B>Indefinite&#150;life intangible assets</B></P></TD> <TD vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 2pt" align=right>&nbsp;</P></TD> <TD vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 2pt" align=right>&nbsp;</P></TD></TR> <TR> <TD vAlign=bottom width=286> <P style="PADDING-RIGHT: 23.05pt; MARGIN-TOP: 5pt; PADDING-LEFT: 24pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Fund management contracts</P></TD> <TD vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>3,753,817</P></TD> <TD vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>3,752,961</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 24pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Trade names</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>69,800</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>69,800</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>3,823,617</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>3,822,761</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=286> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Intangible assets, net</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=137> <P style="PADDING-RIGHT: 28.8pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ 3,918,993</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=133> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ 3,922,801</P></TD></TR></TBODY></TABLE> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>&nbsp;</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As of June 30, 2009, management contracts are being amortized over a weighted-average life of 4.9 years. Estimated amortization expense for each of the next five fiscal years is as follows: </P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt">&nbsp;</P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=175></TD> <TD width=69></TD></TR> <TR> <TD vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Remaining 2010</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;17,041</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">2011</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>22,646</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">2012</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>19,661</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">2013</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>14,660</P></TD></TR> <TR> <TD vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">2014</P></TD> <TD vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>12,455</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Thereafter</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>8,913</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=234> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Total</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=92> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;95,376</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt"><BR></P> <P style="MARGIN: 0pt"><BR>The increase in the carrying value of goodwill for the three months ended June 30, 2009 is summarized below: </P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt">&nbsp;</P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=275></TD> <TD width=107></TD></TR> <TR> <TD vAlign=bottom width=367> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Balance, beginning of period</P></TD> <TD vAlign=bottom width=143> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;1,186,747</P></TD></TR> <TR> <TD vAlign=bottom width=367> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Impact of excess tax basis amortization</P></TD> <TD vAlign=bottom width=143> <P style="PADDING-RIGHT: 3.6pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>(5,456)</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=367> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Other, including changes in foreign exchange rates</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=143> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>26,288</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=367> <P style="MARGIN-TOP: 5pt; PADDING-LEFT: 12pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; TEXT-INDENT: -12pt; LINE-HEIGHT: 14pt">Balance, end of period</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=143> <P style="PADDING-RIGHT: 7.2pt; MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;1,207,579</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>6. Long-Term Debt and Equity Units</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The accreted value of long-term debt consists of the following:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=192></TD> <TD width=87></TD> <TD width=74></TD> <TD width=68></TD> <TD width=8></TD> <TD width=87></TD></TR> <TR> <TD vAlign=bottom width=256> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" width=306 colSpan=3> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>June 30, 2009</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>&nbsp;March 31, 2009</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=256> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Current Accreted Value</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=99> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Unamortized Discount</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=91> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Maturity Amount</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 1pt; LINE-HEIGHT: 14pt" align=center>Current Accreted Value</P></TD></TR> <TR> <TD vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">5-year term loan</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;550,000</P></TD> <TD vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</P></TD> <TD vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;550,000</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;550,000</P></TD></TR> <TR> <TD vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">2.5% convertible senior notes</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,025,162</P></TD> <TD vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>224,838</P></TD> <TD vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,250,000</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,016,798</P></TD></TR> <TR> <TD vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">5.6% senior notes from Equity Units</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,150,000</P></TD> <TD vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,150,000</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,150,000</P></TD></TR> <TR> <TD vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Third-party distribution financing</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,288</P></TD> <TD vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>3,288</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>4,067</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Other term loans</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>18,038</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>18,038</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>19,325</P></TD></TR> <TR> <TD vAlign=top width=256> <P style="PADDING-LEFT: 20pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Subtotal</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,746,488</P></TD> <TD vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>224,838</P></TD> <TD vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,971,326</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,740,190</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Less: current portion</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>7,964</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>&#151;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>7,964</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>8,188</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=256> <P style="PADDING-LEFT: 10pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -10pt; LINE-HEIGHT: 14pt">Total</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,738,524</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=99> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 224,838</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width=91> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,963,362</P></TD> <TD vAlign=top width=10> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,732,002</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>As of June 30, 2009, the aggregate maturities by fiscal year of long-term debt based on the contractual terms are as follows:</P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=159></TD> <TD width=135></TD></TR> <TR> <TD vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Remaining 2010</P></TD> <TD vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,992</P></TD></TR> <TR> <TD width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">2011</P></TD> <TD vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>554,348</P></TD></TR> <TR> <TD vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">2012</P></TD> <TD vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,373</P></TD></TR> <TR> <TD vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">2013</P></TD> <TD vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>887</P></TD></TR> <TR> <TD vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">2014</P></TD> <TD vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>894</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Thereafter</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>2,406,832</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=213> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Total</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=180> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 2,971,326</P></TD></TR></TBODY></TABLE> <P style="MARGIN-TOP: 9pt; MARGIN-BOTTOM: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>At June 30, 2009, the estimated fair value of long-term debt was approximately $2,473,445. &nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>In accordance with FSP APB 14-1, Legg Mason is accreting the carrying value of the 2.5% convertible senior notes to the principal amount at maturity using an interest rate of 6.5% (the effective borrowing rate for non-convertible debt at the time of issuance) over its expected life of seven years, resulting in additional interest expense for the quarter ended June 30, 2009 of approximately $8.4 million. The amount by which the notes&#146; accreted value exceeds the if-converted value using a current interest rate of 8.13% as of June 30, 2009 (representing a potential gain) is approximately $104 million.</P> <P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt" align=justify><BR></P> <P style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; LINE-HEIGHT: 14pt" align=justify>On July 15, 2009, Legg Mason commenced an offer to exchange its Equity Units in the form of Corporate Units in order to increase its equity capital levels and reduce the amount of its outstanding debt and related interest expense. See footnote 13 - Subsequent Event for more information regarding this transaction. </P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3492" name=GENERATOR></HEAD> <BODY> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify><B>7. Stock-Based Compensation</B></P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Compensation expense relating to stock options, the stock purchase plan and deferred compensation for the three months ended June 30, 2009 and 2008 was $5,703 and $6,948, respectively. &nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Stock option transactions during the three months ended June 30, 2009 and 2008, respectively, are summarized below: </P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=114></TD> <TD width=87></TD> <TD width=83></TD> <TD width=10></TD> <TD width=49></TD> <TD width=78></TD></TR> <TR> <TD vAlign=bottom width=152> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=413 colSpan=5> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Three months ended June 30,</P></TD></TR> <TR> <TD vAlign=bottom width=152> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=227 colSpan=2> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=185 colSpan=3> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2008</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=152> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=116> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number<BR>of&nbsp;shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=111> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average<BR>exercise price</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>per share</P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=66> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number<BR>of&nbsp;shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=105> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average<BR>exercise price</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>per share</P></TD></TR> <TR> <TD vAlign=bottom width=152> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Options outstanding at March 31</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,200</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 65.19</P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=66> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,464</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;67.20</P></TD></TR> <TR> <TD vAlign=bottom width=152> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Granted</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>115</P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>19.42</P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=66> <P style="PADDING-RIGHT: 7.2pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD></TR> <TR> <TD vAlign=bottom width=152> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Exercised</P></TD> <TD vAlign=bottom width=116> <P style="PADDING-RIGHT: 28.8pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=111> <P style="PADDING-RIGHT: 28.8pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=66> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(434)</P></TD> <TD vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>31.79</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=152> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Canceled/</P> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">&nbsp;&nbsp;&nbsp;forfeited</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=116> <P style="PADDING-RIGHT: 25.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(227)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=111> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>66.42</P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=66> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(27)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>101.72</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=152> <P style="PADDING-LEFT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Options outstanding at June 30</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=116> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,088</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=111> <P style="PADDING-RIGHT: 28.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 64.10</P></TD> <TD vAlign=top width=14> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=66> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5,003</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=105> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.5pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;70.09</P></TD></TR></TBODY></TABLE> <P style="FONT-SIZE: 12pt; MARGIN: 0pt" align=justify>&nbsp;</P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>At June 30, 2009, options were exercisable for 2,281 shares with a weighted-average exercise price of $67.11 and a weighted-average remaining contractual life of 2.8 years. &nbsp;Unamortized compensation cost related to unvested options (2,807 shares) at June 30, 2009 of $40,399 is expected to be recognized over a weighted-average period of 2.0 years. &nbsp;</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>The weighted average fair value of option grants of $11.29 for the three months ended June 30, 2009, is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: expected dividend yield, 1.19%; risk-free interest rate, 2.79%; expected volatility, 65.92%; and expected lives (in years), 6.8. &nbsp;There were no option grants for the three months ended June 30, 2008.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Compensation expense relating to restricted stock for the three months ended June 30, 2009 and 2008 was $7,169 and $8,575, respectively. </P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="MARGIN: 0pt" align=justify>Restricted stock transactions during the three months ended June 30, 2009 and 2008, respectively, are summarized below: </P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=99></TD> <TD width=63></TD> <TD width=108></TD> <TD width=11></TD> <TD width=60></TD> <TD width=116></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=480 colSpan=5> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Three months ended June 30,</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=244 colSpan=3> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=235 colSpan=2> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2008</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number of shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=144> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average grant date value</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=80> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number of shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=155> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average grant date value</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Unvested shares &nbsp;at March 31</P></TD> <TD vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,328</P></TD> <TD vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 51.41</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=80> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>642</P></TD> <TD vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;98.30</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Granted</P></TD> <TD vAlign=top width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>448</P></TD> <TD vAlign=top width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>19.42</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=80> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>313</P></TD> <TD vAlign=top width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>61.85</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Vested</P></TD> <TD vAlign=top width=84> <P style="PADDING-RIGHT: 10.8pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(258)</P></TD> <TD vAlign=top width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>60.25</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=80> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(96)</P></TD> <TD vAlign=top width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>105.55</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Canceled/ forfeited</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(34)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>57.44</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=80> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(8)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>87.71</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Unvested shares at June 30</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>1,484</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ 40.14</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=80> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>851</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;84.20</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Unamortized compensation cost related to unvested restricted stock awards at June 30, 2009 of $47,994 is expected to be recognized over a weighted-average period of 2.5 years.</P> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Restricted stock unit transactions during the three months ended June 30, 2009 and 2008, respectively, are summarized below: </P> <P style="MARGIN: 0pt" align=justify><BR></P> <TABLE style="FONT-SIZE: 10pt" cellSpacing=0 align=center> <TBODY> <TR> <TD width=99></TD> <TD width=63></TD> <TD width=108></TD> <TD width=11></TD> <TD width=60></TD> <TD width=116></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=480 colSpan=5> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Three months ended June 30,</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=244 colSpan=3> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2009</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=235 colSpan=2> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>2008</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=133> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number of shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=144> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average grant date value</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=80> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Number of shares</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=155> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=center>Weighted-average grant date value</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Unvested shares &nbsp;at March 31</P></TD> <TD vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>13</P></TD> <TD vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;36.03</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=80> <P style="PADDING-RIGHT: 7.2pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;&nbsp;&nbsp;<B>&nbsp;&nbsp;&nbsp;&#151;</B></P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Granted</P></TD> <TD vAlign=top width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>57</P></TD> <TD vAlign=top width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>19.82</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=top width=80> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>6</P></TD> <TD vAlign=top width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>61.85</P></TD></TR> <TR> <TD vAlign=top width=133> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt">Vested</P></TD> <TD vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD vAlign=bottom width=80> <P style="PADDING-RIGHT: 7.2pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Canceled/ forfeited</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; MARGIN: 0pt" align=right><B>&#151;</B></P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=80> <P style="PADDING-RIGHT: 3.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>(1)</P></TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>61.85</P></TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=133> <P style="PADDING-LEFT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; TEXT-INDENT: -7.2pt; LINE-HEIGHT: 14pt">Unvested shares at June 30</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=84> <P style="PADDING-RIGHT: 14.4pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>70</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=144> <P style="PADDING-RIGHT: 21.6pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;22.89</P></TD> <TD vAlign=top width=15> <P style="FONT-SIZE: 2pt">&nbsp;</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=80> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>5</P></TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=155> <P style="PADDING-RIGHT: 7.2pt; FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$ &nbsp;61.85</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0pt" align=justify><BR></P> <P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=justify>Unamortized compensation cost related to unvested restricted stock units at June 30, 2009 of $1,579 is expected to be recognized over a weighted-average period of 2.4 years.</P></BODY></HTML>