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Income Taxes (Tables)
12 Months Ended
Mar. 31, 2020
Income Tax [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The components of income tax expense (benefit) were as follows:
 
 
2020
 
2019
 
2018
Federal
 
$
65,455

 
$
24,640

 
$
(106,621
)
Foreign
 
19,827

 
(11,343
)
 
(16,015
)
State and local
 
20,766

 
7,264

 
20,126

Total income tax provision (benefit)
 
$
106,048

 
$
20,561

 
$
(102,510
)
 
 
 
 
 
 
 
Current
 
$
8,997

 
$
26,716

 
$
38,983

Deferred
 
97,051

 
(6,155
)
 
(141,493
)
Total income tax provision (benefit)
 
$
106,048

 
$
20,561

 
$
(102,510
)

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The components of income (loss) before income tax provision were as follows:
 
 
2020
 
2019
 
2018
Domestic
 
$
324,254

 
$
60,001

 
$
287,229

Foreign
 
86,280

 
(31,506
)
 
(53,389
)
Total
 
$
410,534

 
$
28,495

 
$
233,840


Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
A reconciliation of the difference between the effective income tax rate and the statutory federal income tax rate is as follows:
 
 
2020
 
2019
 
2018
Tax provision at statutory U.S. federal income tax rate
 
21.0
 %
 
21.0
 %
 
31.5
 %
State income taxes, net of federal income tax benefit(1)
 
8.2

 
8.9

 
7.8

Impact of changes in U.S. federal Tax Law(2)
 

 
8.3

 
(90.1
)
Uncertain tax benefits(3)
 
(3.4
)
 
49.7

 
1.7

Effect of foreign tax rates(4)
 
(1.7
)
 
(37.1
)
 
1.7

Changes in U.K. tax rates on deferred tax assets and liabilities
 

 

 
0.3

Net income attributable to noncontrolling interests
 
(2.3
)
 
(28.1
)
 
(6.8
)
Change in valuation allowances(5)
 
1.7

 
23.0

 
(1.3
)
Federal effect of permanent tax adjustments(6)
 
3.0

 
33.4

 
10.5

Other, net
 
(0.7
)
 
(6.9
)
 
0.9

Effective income tax rate
 
25.8
 %
 
72.2
 %
 
(43.8
)%

(1)
State income taxes include changes in valuation allowances related to change in apportionment and provision to return differences, net of the impact on related deferred tax assets.
(2)
Includes the impact on deferred tax assets and liabilities and the effects on unremitted foreign earnings and other aspects of the Tax Law.
(3)
Reserves for uncertain tax benefits were recorded for positions related to prior years' foreign, federal, state, and local tax return filing as well as for positions reflected in the current year tax expense accrual. In fiscal 2020, a state audit was resolved favorably and the statute of limitations expired on certain tax returns for which uncertain tax benefit reserves had been established.
(4)
The effect of foreign tax rates for fiscal 2019, and 2018 include tax benefits of $8,711, and $33,150, respectively, for non-cash impairment charges related to the intangible assets of the EnTrust Global and legacy Permal businesses, as further discussed in Note 5. Additionally, the effect of foreign tax rates for fiscal 2019 includes a $21,720 tax benefit for non-cash impairment charges related to the intangible assets of the RARE Infrastructure businesses.
(5)
See schedule below for the change in valuation allowances by jurisdiction.
(6)
Fiscal 2018 includes a 9.0% federal impact (9.7% including state impact) of a non-deductible charge for a regulatory matter discussed in Note 9.

On December 22, 2017, the Tax Law was enacted. The Tax Law is complex, materially changed the U.S. corporate income tax rate from 35% to 21% and included various other changes which impact Legg Mason. The reduction in the U.S. corporate tax rate resulted in a one-time, non-cash provisional tax benefit of $220,935 recognized in the quarter ended December 31, 2017, due to the re-measurement of certain existing deferred tax assets and liabilities at the new income tax rate. In addition, a non-cash tax charge of $7,260 was provisionally provided in the year ended March 31, 2018, for the effects on unremitted foreign earnings and other aspects of the Tax Law. Legg Mason’s re-measurement of its deferred tax assets and liabilities has been completed and no further adjustments were necessary. Further, Legg Mason's accounting for the tax on unremitted
foreign earnings has also been completed and an additional expense of $2,164 was recorded in the year ended March 31, 2019.
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following deferred tax assets and valuation allowances relating to carryforwards have been recorded at March 31:
 
 
2020
 
2019
 
Expires Beginning
after Fiscal Year
DEFERRED TAX ASSETS
 
 
 
 
 
 
U.S. federal net operating losses
 
$
36,639

 
$
38,402

 
2033
U.S. federal foreign tax credits
 
266,671

 
266,128

 
2022
U.S. state net operating losses (1,2)
 
260,804

 
263,870

 
2020
U.S. state tax credits
 
528

 
444

 
2022
Foreign net operating losses
 
23,579

 
23,009

 
2028
Total deferred tax assets for carryforwards
 
$
588,221

 
$
591,853

 
 
VALUATION ALLOWANCES
 
 
 
 
 
 
U.S. federal net operating losses
 
$
2,155

 
$
2,027

 
 
U.S. federal foreign tax credits
 
2,400

 
1,800

 
 
U.S. state net operating losses
 
91,653

 
93,185

 
 
Foreign net operating losses
 
10,744

 
11,792

 
 
Valuation allowances for carryforwards
 
106,952

 
108,804

 
 
Foreign other deferred assets
 
30,203

 
25,405

 
 
Total valuation allowances
 
$
137,155

 
$
134,209

 
 

(1)
Substantially all of the U.S. state net operating losses carryforward through fiscal 2035.
(2)
Due to potential for change in the factors relating to apportionment of income to various states, Legg Mason's effective state tax rates are subject to fluctuation which will impact the value of the Company's deferred tax assets, including net operating losses, and could have a material impact on the future effective tax rate of the Company.
Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Balance Sheets. These temporary differences result in taxable or deductible amounts in future years. A summary of Legg Mason's deferred tax assets and liabilities follows:
 
 
2020
 
2019
DEFERRED TAX ASSETS
 
 
 
 
Accrued compensation and benefits
 
$
178,571

 
$
182,734

Accrued expenses
 
33,952

 
30,176

Basis differences, principally for intangible assets and goodwill
 
32,900

 
23,480

Operating loss carryforwards
 
321,022

 
325,282

Foreign tax credit carryforward
 
266,671

 
266,128

Federal benefit of uncertain tax positions
 
2,421

 
6,798

Mutual fund launch costs
 
11,632

 
12,926

Martin Currie defined benefit pension liability
 
5,253

 
8,694

Lease liability (net in 2019)
 
67,648

 
9,785

Other
 
9,294

 
1,954

Deferred tax assets
 
929,364

 
867,957

Valuation allowance
 
(137,155
)
 
(134,209
)
Deferred tax assets after valuation allowance
 
$
792,209

 
$
733,748

DEFERRED TAX LIABILITIES
 
 
 
 
Depreciation and amortization
 
$
714,693

 
$
636,230

Net unrealized gains (losses) from investments
 
(1,042
)
 
2,007

ROU asset adjustment
 
54,618

 

Basis differences in partnerships
 
27,001

 
19,214

Deferred tax liabilities
 
795,270

 
657,451

Net deferred tax assets (liabilities)
 
$
(3,061
)
 
$
76,297


Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
A reconciliation of the beginning and ending amount of unrecognized gross tax benefits for the years ended March 31 is as follows:
 
 
2020
 
2019
 
2018
Balance, beginning of year
 
$
78,776

 
$
62,728

 
$
70,787

Additions based on tax positions related to the current year
 
970

 
4,549

 
7,325

Additions for tax positions of prior years
 
1,719

 
15,070

 
5,011

Reductions for tax positions of prior years
 
(1,149
)
 
(100
)
 
(4,438
)
Decreases related to settlements with taxing authorities
 
(15,530
)
 
(2,874
)
 
(15,957
)
Expiration of statutes of limitations
 
(9,321
)
 
(597
)
 

Balance, end of year
 
$
55,465

 
$
78,776

 
$
62,728