1.0.0.3
false
Long-Term Debt and Equity Units
false
1
$
false
false
Shares
Standard
http://www.xbrl.org/2003/instance
shares
xbrli
0
USD
Standard
http://www.xbrl.org/2003/iso4217
USD
iso4217
0
USDPerShare
Divide
http://www.xbrl.org/2003/iso4217
USD
iso4217
http://www.xbrl.org/2003/instance
shares
xbrli
0
2
0
lm_NotesToConsolidatedFinancialStatementsAbstract
lm
false
na
duration
string
No definition available.
false
false
false
false
false
true
false
false
false
|
1
false
false
0
0
false
false
|
No definition available.
false
3
1
us-gaap_LongTermDebtTextBlock
us-gaap
true
na
duration
string
No definition available.
false
false
false
false
false
false
false
false
false
|
1
false
false
0
0
<!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"> </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"> </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> March 31, 2009</P></TD></TR>
<TR>
<TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=bottom width=256>
<P style="FONT-SIZE: 2pt"> </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"> </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>$
550,000</P></TD>
<TD vAlign=top width=99>
<P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$
—</P></TD>
<TD vAlign=top width=91>
<P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$
550,000</P></TD>
<TD vAlign=top width=10>
<P style="FONT-SIZE: 2pt"> </P></TD>
<TD vAlign=bottom width=116>
<P style="FONT-SIZE: 12pt; MARGIN: 0pt; LINE-HEIGHT: 14pt" align=right>$
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"> </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>—</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"> </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>—</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"> </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>—</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"> </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"> </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>—</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"> </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"> </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>$ 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. </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’ 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>
6.
Long-Term Debt and Equity Units
The
accreted value of long-term debt consists of the following:
false
false
|
No definition available.
No authoritative reference available.
false
false
1
2
false
UnKnown
UnKnown
UnKnown
false
true