1.0.0.3 false Commitments and Contingencies 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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 Commitments and Contingencies 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock 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> 8. Commitments and Contingencies Legg Mason leases office facilities and equipment under non-cancelable operating leases and also has multi-year agreements for certain services. These leases and service agreements expire on varying dates through fiscal 2025. Certain leases provide for renewal options and contain escalation clauses providing for increased rentals based upon maintenance, utility and tax increases. As of June 30, 2009, the minimum annual aggregate rentals under operating leases and servicing agreements are as follows:   <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> Remaining 2010</TD> <TD vAlign=bottom width=184> $     121,923</TD></TR> <TR> <TD vAlign=top width=174> 2011</TD> <TD vAlign=bottom width=184> 129,113</TD></TR> <TR> <TD vAlign=top width=174> 2012</TD> <TD vAlign=bottom width=184> 118,802</TD></TR> <TR> <TD vAlign=top width=174> 2013</TD> <TD vAlign=bottom width=184> 106,268</TD></TR> <TR> <TD vAlign=top width=174> 2014</TD> <TD vAlign=bottom width=184> 89,233</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=top width=174> Thereafter</TD> <TD style="BORDER-BOTTOM: #000000 0.75pt solid" vAlign=bottom width=184> 686,185</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=top width=174> Total</TD> <TD style="BORDER-BOTTOM: #000000 2pt double" vAlign=bottom width=184> $  1,251,524</TD></TR></TBODY></TABLE> 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.  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. The table above also does not include aggregate obligations of $35,067 for property and equipment under capital leases. 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. See Note 10, Liquidity Fund Support, for additional information related to Legg Mason commitments. 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 Masons maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against Legg Mason that have not yet occurred. Legg Mason has been the subject of customer complaints and has also been named as a defendant in various legal actions arising primarily from 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. In accordance with SFAS No. 5 Accounting for Contingencies, Legg Mason has established provisions for estimated losses from pending complaints, legal actions, investigations and proceedings when it is probable that a loss has been incurred and a reasonable estimate of loss can be made. 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 Masons financial condition. However, the results of operations could be materially affected during any period if liabilities in that period differ from Legg Masons prior estimates, and Legg Masons 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. Legg Mason and a current and former officer, together with an underwriter in a public offering,  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 Citigroups 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 9, 2006 and seeks unspecified damages.  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.</BODY></HTML> 8. Commitments and Contingencies Legg Mason leases office facilities and equipment under non-cancelable operating leases and also has multi-year agreements false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true