1.0.0.3 false Varialbe Interest Entities 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 Variable Interest Entities 1 us-gaap_ScheduleOfVariableInterestEntitiesTextBlock 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> 11.  Variable Interest Entities 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 Masons 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. 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. 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 Masons 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.   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 Masons carrying value, the related VIEs assets and liabilities and maximum risk of loss were as follows: <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>  </TD> <TD vAlign=bottom width=438 colSpan=4> As of June 30, 2009</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=195>  </TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> VIE Assets That the Company Does Not Consolidate</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> VIE Liabilities That the Company Does Not Consolidate</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> Equity Interests on the Consolidated Balance Sheet</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=98> Maximum Risk of Loss*</TD></TR> <TR> <TD vAlign=top width=195> Liquidity funds subject to capital support</TD> <TD vAlign=bottom width=111> $   5,596,875</TD> <TD vAlign=bottom width=111> $      99,611</TD> <TD vAlign=bottom width=117> $        </TD> <TD vAlign=bottom width=98> $ 34,500</TD></TR> <TR> <TD vAlign=top width=195> CDOs/CLOs</TD> <TD vAlign=top width=111> 4,382,842</TD> <TD vAlign=top width=111> 4,074,872</TD> <TD vAlign=top width=117> </TD> <TD vAlign=top width=98> 1,426</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=195> Other sponsored investment funds</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> 11,542,853</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> 4,358</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=117> 26,477</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=98> 45,811</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=195> Total</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> $ 21,522,570</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> $ 4,178,841</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=117> $ 26,477</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=98> $ 81,737</TD></TR></TBODY></TABLE>   <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>  </TD> <TD vAlign=bottom width=438 colSpan=4> As of March 31, 2009</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=195>  </TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> VIE Assets That the Company Does Not Consolidate</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=111> VIE Liabilities That the Company Does Not Consolidate</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=117> Equity Interests on the Consolidated Balance Sheet</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=bottom width=98> Maximum Risk of Loss*</TD></TR> <TR> <TD vAlign=top width=195> Liquidity funds subject to capital support</TD> <TD vAlign=bottom width=111> $   7,548,539</TD> <TD vAlign=bottom width=111> $    121,338</TD> <TD vAlign=bottom width=117> $        </TD> <TD vAlign=bottom width=98> $ 41,500</TD></TR> <TR> <TD vAlign=top width=195> CDOs/CLOs</TD> <TD vAlign=top width=111> 5,116,004</TD> <TD vAlign=top width=111> 4,786,604</TD> <TD vAlign=top width=117> </TD> <TD vAlign=top width=98> 1,566</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=195> Other sponsored investment funds</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> 18,241,540</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=111> 3,381</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=117> 34,458</TD> <TD style="BORDER-BOTTOM: #000000 0.5pt solid" vAlign=top width=98> 52,019</TD></TR> <TR> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=195> Total</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> $ 30,906,083</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=111> $ 4,911,323</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=117> $ 34,458</TD> <TD style="BORDER-BOTTOM: #000000 1.5pt solid" vAlign=top width=98> $ 95,085</TD></TR></TBODY></TABLE> * Includes capital support to liquidity funds, equity interests the Company has made or is required to make and any earned but uncollected management fees.   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.</BODY></HTML> 11.  Variable Interest Entities In the normal course of its business, Legg Mason sponsors and is the manager of various types of investment vehicles false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true