Subsequent Event

9 Months Ended

Dec. 31, 2015

Subsequent Event [Line Items]

Subsequent Events [Text Block]

14. Subsequent Event

On October 21, 2015, Legg Mason acquired a majority equity interest in RARE Infrastructure. RARE Infrastructure specializes in global listed infrastructure investing, is headquartered in Sydney, Australia, and had approximately $6,800,000 in AUM at closing. Under the terms of the related transaction agreements, Legg Mason effectively acquired a 75% ownership stake in the firm, the firm's management team retained a 15% equity stake and The Treasury Group, a previous minority owner, retained 10%. The acquisition required an initial cash payment of $213,739 (using the foreign exchange rate as of October 21, 2015 for the 296,000 Australian dollars per the related agreements), which was funded with approximately $40,000 of net borrowings under the Company's previously undrawn revolving credit facility, as well as existing cash resources. In August 2015, Legg Mason also executed a currency forward contract to economically hedge the risk of movement in the exchange rate between the U.S. dollar and the Australian dollar in which the initial cash payment was denominated. See Note 12 for additional information regarding derivatives and hedging. In addition, contingent consideration may be due March 31, 2017 and 2018, aggregating up to approximately $77,253 (using the foreign exchange rate as of September 30, 2015 for the maximum 106,000 Australian dollars per the related agreements), dependent on the achievement of certain net revenue targets, and subject to potential catch-up adjustments extending through March 31, 2019. The noncontrolling interests can be put by the holders or called by Legg Mason for settlement at fair value, except for the non-management portion of the noncontrolling interests, which are callable at a fixed multiple of EBITDA, as specified in the agreements. The acquired assets and liabilities and related results of operations of RARE Infrastructure will be included in Legg Mason's financial statements, along with purchase accounting adjustments and related disclosures, subsequent to the acquisition.