LEGG MASON, INC.

CIK:0000704051|SEC Filings

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
OPERATING REVENUES
Total Operating Revenues	$ 666,186	$ 705,360
OTHER NON-OPERATING INCOME (EXPENSE)
INCOME BEFORE INCOME TAX PROVISION
NET INCOME
Net Income (Loss) Attributable to Noncontrolling Interest	5,652	16,219
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.
Consolidated Legg Mason, Inc.
OPERATING REVENUES
Total Operating Revenues	666,186	705,360
OPERATING EXPENSES
Compensation and benefits	353,208	379,828
Distribution and servicing	91,349	103,906
Communications and technology	62,358	55,274
Occupancy	32,007	25,624
Amortization of intangible assets	5,505	5,457
Contingent consideration fair value adjustments	0	(1,165)
Other	54,051	52,501
Total Operating Expenses	598,478	621,425
OPERATING INCOME	67,708	83,935
OTHER NON-OPERATING INCOME (EXPENSE)
Interest income	915	4,005
Interest expense	(28,581)	(28,483)
Total Other Non-Operating Income (Expense)	1,296	(4,318)
INCOME BEFORE INCOME TAX PROVISION	69,004	79,617
Income tax provision	13,930	18,048
NET INCOME	55,074	61,569
Net Income (Loss) Attributable to Noncontrolling Interest	5,652	16,219
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$ 49,422	$ 45,350
NET INCOME PER SHARE ATTRIBUTABLE TO LEGG MASON, INC. COMMON SHAREHOLDERS
Basic (in dollars per share)	$ 0.54	$ 0.51
Diluted (in dollars per share)	$ 0.54	$ 0.51
Consolidated Investment Vehicles [Member]
OTHER NON-OPERATING INCOME (EXPENSE)
Other income (expense), net	$ (2,158)	$ 9,561
Separate Accounts [Member] \| Consolidated Legg Mason, Inc.
OPERATING REVENUES
Revenue from Contract with Customer, Excluding Assessed Tax	245,459	260,441
Mutual Funds [Member] \| Consolidated Legg Mason, Inc.
OPERATING REVENUES
Revenue from Contract with Customer, Excluding Assessed Tax	347,876	366,812
Performance Fees [Member] \| Consolidated Legg Mason, Inc.
OPERATING REVENUES
Revenue from Contract with Customer, Excluding Assessed Tax	11,414	6,861
Distribution and Shareholder Service [Member] \| Consolidated Legg Mason, Inc.
OPERATING REVENUES
Revenue from Contract with Customer, Excluding Assessed Tax	59,859	69,937
Service, Other [Member] \| Consolidated Legg Mason, Inc.
OPERATING REVENUES
Revenue from Contract with Customer, Excluding Assessed Tax	1,578	1,309
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
OPERATING REVENUES
Total Operating Revenues	666,232	705,485
OPERATING EXPENSES
Total Operating Expenses	598,565	621,291
OPERATING INCOME	67,667	84,194
OTHER NON-OPERATING INCOME (EXPENSE)
Other income (expense), net	31,120	10,599
Total Other Non-Operating Income (Expense)	439	(11,054)
INCOME BEFORE INCOME TAX PROVISION	68,106	73,140
Income tax provision	13,930	18,048
NET INCOME	54,176	55,092
Net Income (Loss) Attributable to Noncontrolling Interest	4,754	9,742
NET INCOME ATTRIBUTABLE TO LEGG MASON, INC.	$ 49,422	$ 45,350

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income
CASH FLOWS FROM FINANCING ACTIVITIES
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(12,821)	$ (14,063)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests		(8,789)
Cash Acquired from Acquisition	992
Consolidated Legg Mason, Inc.
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	55,074	61,569
Adjustments to reconcile Net Income to net cash used in operations:
Depreciation and amortization	19,448	16,496
Accretion and amortization of securities discounts and premiums, net	427	108
Stock-based compensation	7,421	23,834
Deferred income taxes	9,026	22,294
Contingent consideration fair value adjustments	0	(1,165)
Other	(21)	345
Decrease (increase) in assets:
Investment advisory and related fees receivable	2,639	235
Net (purchases) sales of trading and other current investments	(42,790)	(4,817)
Other receivables	(1,638)	10,661
Increase (decrease) in liabilities:
Accrued compensation	(314,376)	(300,250)
Deferred compensation	9,061	12,084
Accounts payable and accrued expenses	8,558	(10,298)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(211,492)	(187,577)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for fixed assets	(5,762)	(9,190)
Payments to Acquire Equity Method Investments	(250)
Payments to Acquire Businesses, Net of Cash Acquired	0	(10,247)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(5,947)	(18,949)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Short-term Debt	250,000	0
Dividends paid	(36,266)	(30,131)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(13,676)	(16,230)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	0	(10,548)
Employee Tax Withholdings Related to net share transaction	(37,152)	(12,581)
Issuance of common stock for stock-based compensation	53,437	9,599
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	121,115	(68,123)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(945)	(2,697)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	(97,269)	(277,346)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period	1,049,677	950,795
Cash, Cash Equivalents, and Restricted Cash, End of Period	952,408	673,449
Income Taxes Paid, Net	4,587	4,776
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	10,947	11,081
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	54,176	55,092
Adjustments to reconcile Net Income to net cash used in operations:
Net unrealized losses (gains) on investments	(40,022)	(4,684)
Net losses (gains) on investments	11,830	(6,748)
Decrease (increase) in assets:
Other assets	(15,379)	(5,294)
Increase (decrease) in liabilities:
Other liabilities	(24,260)	(5,398)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale, Maturity and Collection of Investments	65	488
CASH FLOWS FROM FINANCING ACTIVITIES
Cash and Cash Equivalents	931,605	643,574
Restricted Cash and Cash Equivalents, Current	20,496	22,201
Restricted Cash and Cash Equivalents, Noncurrent	72	2,888
Consolidated Investment Vehicles [Member]
Adjustments to reconcile Net Income to net cash used in operations:
Net losses (gains) on investments	2,158	(9,561)
Decrease (increase) in assets:
Other assets	102,120	11,400
Increase (decrease) in liabilities:
Other liabilities	(768)	1,612
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (Payments to) Noncontrolling Interests	(95,228)	(8,232)
Cash and Cash Equivalents	235	4,786
Consolidated Legg Mason, Inc.
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	55,074	61,569
Adjustments to reconcile Net Income to net cash used in operations:
Contingent consideration fair value adjustments	$ 0	$ (1,165)

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020
Receivables:
Fixed assets, net	$ 126,113	$ 134,423
Operating and Finance Lease, Right-of-Use Asset	280,528	291,342
Current Liabilities
Short-term Debt	250,000	0
Operating and FInance Lease, Liability, Current	77,191	77,814
Operating and Finance Lease Liability, Noncurrent	269,041	278,737
Long-term debt, net	1,973,054	1,972,733
REDEEMABLE NONCONTROLLING INTERESTS	$ 613,336	$ 714,414
STOCKHOLDERS' EQUITY
Common Stock, Par or Stated Value Per Share	$ 0.10	$ 0.10
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	90,534,943	87,781,705
Consolidated Entity Excluding Consolidated Investment Vehicles Before Eliminations [Member]
Current Assets
Cash and Cash Equivalents	$ 931,605	$ 1,018,860
Restricted Cash and Cash Equivalents, Current	20,496	28,133
Receivables:
Investment securities	413,310	338,894
Other current assets	89,344	80,030
Other non-current assets	162,534	152,985
Current Liabilities
Other current liabilities	110,404	115,788
Consolidated Investment Vehicles [Member]
Current Assets
Cash and Cash Equivalents	235	620
Receivables:
Investment securities	33,811	117,084
Other current assets	62	476
Other non-current assets	979	22,313
Current Liabilities
Other current liabilities	273	1,044
Consolidated Legg Mason, Inc.
Receivables:
Investment advisory and related fees	406,411	407,893
Other receivables	66,918	47,634
Total Current Assets	1,962,192	2,039,624
Fixed assets, net	126,113	134,423
Intangible assets, net	3,356,470	3,355,690
Goodwill	1,862,673	1,847,766
Deferred Tax Assets, Net of Valuation Allowance	165,948	161,977
TOTAL ASSETS	7,917,437	8,006,120
Current Liabilities
Accrued compensation	261,779	574,430
Accounts Payable and Accrued Liabilities, Current	165,863	156,981
Total Current Liabilities	865,510	926,057
Deferred compensation	104,354	95,293
Deferred Tax Liabilities, Net	167,828	165,038
Other non-current liabilities	28,992	32,167
Long-term debt, net	1,973,054	1,972,733
TOTAL LIABILITIES	3,408,779	3,470,025
REDEEMABLE NONCONTROLLING INTERESTS	613,336	714,414
STOCKHOLDERS' EQUITY
Common stock, par value $.10; authorized 500,000,000 shares; issued 85,533,667 shares for December 31, 2018 and 84,606,408 shares for March 31, 2017	9,053	8,778
Additional paid-in capital	2,187,177	2,158,755
Employee stock trust	(19,126)	(19,778)
Deferred compensation employee stock trust	19,126	19,778
Retained Earnings (Accumulated Deficit)	1,831,364	1,820,412
AOCI Including Portion Attributable to Noncontrolling Interest, before Tax	(161,246)	(195,306)
Stockholders' Equity Attributable to Parent	3,866,348	3,792,639
TOTAL STOCKHOLDERS' EQUITY	3,895,322	3,821,681
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	7,917,437	8,006,120
Management Equity Plan [Member] \| Royce [Member]
STOCKHOLDERS' EQUITY
Stockholders' Equity Attributable to Noncontrolling Interest	$ 28,974	$ 29,042