LM » Topics » Contractual Obligations and Contingent Payments

This excerpt taken from the LM 8-K filed Aug 5, 2009.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our long-term debt and non-cancelable lease agreements. In addition, as described in Liquidity and Capital Resources above, we have made or expect to make contingent payments under business purchase agreements. See Notes 6, 7, and 9 of Notes to Consolidated Financial Statements for additional disclosures related to our commitments.

The following table sets forth these contractual and contingent obligations (in millions) by fiscal year:

 

2010

2011

2012

2013

2014

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Short-term borrowings(1)

$250.0

$—

$—

$—

$—

$—

$250.0

Long-term borrowings by contract maturity

8.2

553.8

2.6

1.1

0.9

2,406.8

2,973.4

Interest on short-term and long-term borrowings(2)

135.5

122.1

112.3

112.2

112.2

615.5

1,209.8

Minimum rental and service commitments

161.5

110.8

102.2

94.2

87.6

674.3

1,230.6

Minimum commitments under capital leases(3)

31.3

2.4

1.9

35.6

Total Contractual Obligations

586.5

789.1

219.0

207.5

200.7

3,696.6

5,699.4

Contingent Obligations

 

 

 

 

 

 

 

Contingent payments related to business acquisitions(4)

293.5

60.0

353.5

Capital support(5)

41.5

41.5

Total Contractual and Contingent Obligations(6,7)

$921.5

$789.1

$279.0

$207.5

$200.7

$3,696.6

$6,094.4

(1)

Represents borrowing under our revolving line of credit which does not expire until October 2010. However, we may elect to repay this debt in fiscal 2010 if we have sufficient available cash.

(2)

Interest on floating rate long-term debt is based on rates at March 31, 2009 and includes 1.4% contract adjustment payments on Equity Units.

(3)

The amount of commitments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of the agreements.

(4)

The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(5)

The amount of contingent obligations under capital support agreements represents the maximum amount that could be payable at any time up through the contracts’ termination dates.

(6)

The table above does not include approximately $29.5 million in capital commitments to investment partnerships in which Legg Mason is a general or limited partner. These obligations will be funded, as required, through the end of the commitment periods that range through fiscal 2011.

(7)

The table above does not include amounts for uncertain tax positions of $35.1 million (net of the federal benefit for state tax liabilities) because the timing of any related cash outflows cannot be reliably estimated.


This excerpt taken from the LM 10-Q filed Feb 9, 2009.

Contractual Obligations and Contingent Payments


We have contractual obligations to make future payments in connection with our short and long-term debt, non-cancelable lease agreements and service agreements. In addition, we may be required to make contingent payments under fund support arrangements and business purchase agreements if certain future events occur.




48




The following table sets forth these contractual and contingent obligations (in millions) by fiscal year as of December 31, 2008, unless otherwise noted:

 

 

 

 

 

 

 

 

 

 

Remaining 2009

2010

2011

2012

2013

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Short-term borrowings(1)

$       —

$  500.0

$       —

$       —

$       —

$          —

$    500.0

Long-term borrowings by contract maturity

2.2

8.3

554.0

2.9

1.2

2,407.7

2,976.3

Coupon interest on short-term and long-term borrowings(2)

44.4

142.4

121.9

112.3

112.2

727.7

1,260.9

Minimum rental and service commitments

43.0

161.7

107.0

98.4

92.1

738.9

1,241.1

Minimum commitments under capital leases(3)

29.5

2.4

2.4

0.2

34.5

Total Contractual Obligations

119.1

814.8

785.3

213.8

205.5

3,874.3

6,012.8

Contingent Obligations

 

 

 

 

 

 

 

Contingent payments related to business acquisitions(4)

293.5

60.0

353.5

Letters of credit(5)

150.0

150.0

Capital support(5)

510.0

95.5

605.5

Total return swap(5,6)

367.0

367.0

Total Contractual and Contingent Obligations(7,8)

$ 779.1

$1,570.8

$  785.3

$  273.8

$ 205.5

$  3,874.3

$  7,488.8

(1) Represents borrowing under our revolving line of credit which does not expire until October 2010.  However, we may elect to repay this debt in fiscal 2010 if we have sufficient available cash.

(2) Coupon interest on floating rate long-term debt is based on rates at December 31, 2008 and includes 1.4% contract adjustment payments on Equity Units.

(3) The amount of commitments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of the agreements.

(4)

The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(5) The amount of contingent obligations for liquidity fund support represents the maximum amount that could be payable at any time up through the contracts’ termination dates, of which $816 million of cash has already been restricted.

(6) Includes approximately $12.1 million of estimated financing costs.

(7)

The table above does not include approximately $36.3 million in capital commitments to investment partnerships in which Legg Mason is a general or limited partner. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2009 to 2011.

(8)

The table above does not include amounts for uncertain tax positions of $19.7 million (net of the federal benefit for state tax liabilities) because the timing of any related cash outflows cannot be reliably estimated.


This excerpt taken from the LM 10-K filed May 29, 2008.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our long-term debt and non-cancelable lease agreements. In addition, as described in Liquidity and Capital Resources above, we have made or expect to make contingent payments under business purchase agreements. See Notes 7, 8, and 10 of Notes to Consolidated Financial Statements for additional disclosures related to our commitments.

 

52


Table of Contents

 

The following table sets forth these contractual and contingent obligations (in millions) by fiscal year:

This excerpt taken from the LM 10-Q filed Feb 11, 2008.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our short and long-term debt, non-cancelable lease agreements and service agreements. In addition, we may be required to make contingent payments under business purchase agreements if certain future events occur.


The following table sets forth these contractual and contingent obligations by fiscal year as of December 31, 2007, unless otherwise noted:


(In millions)

Remaining

2008

2009

2010

2011

2012

Thereafter

Total

Contractual Obligations:

 

 

 

 

 

 

 

Short-term borrowings by contract maturity

    $    —

$    500.0

$      —

$      —

 $      —

$      —

$    500.0

Long-term borrowings by contract maturity

1.7

441.3

7.1

555.7

3.9

8.6

1,018.3

Coupon interest on short-term and long-term borrowings(1)

28.6

46.8

23.6

17.7

0.6

1.6

118.9

Minimum rental and service commitments

32.8

124.6

117.6

91.8

87.6

709.8

1,164.2

Minimum commitments under capital leases (2)

29.5

2.3

2.4

2.4

0.2

36.8

Total Contractual Obligations

92.6

1,115.0

150.7

667.6

92.3

720.0

2,838.2

Contingent Obligations:

 

 

 

 

 

 

 

Contingent payments related to business 

    acquisitions(3)

7.5

293.5

60.0

361.0

Total Contractual and Contingent Obligations(4) (5) (6)(7)

$ 92.6

$ 1,122.5

$ 444.2

$ 667.6

$ 152.3

$ 720.0

$ 3,199.2

(1) Coupon interest on floating rate long-term debt is based on rates outstanding at December 31, 2007.

(2) The amount of commitments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of the agreements.

(3) The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(4) The table above does not include approximately $54.9 in capital commitments to invest in investment vehicles. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2008 to 2011.

(5) The table above does not include amounts for uncertain tax positions because the timing of any related cash outflows cannot be reliably estimated.

(6) The table above does not include our obligations under the $335 million in letters of credit or the total return swap of $890 million.  See Note 10 of Notes to Consolidated Financial Statements for additional information regarding these commitments.

(7) The table above does not include our obligations under the economic hedging transactions or the $1.25 billion senior convertible debt, which were entered into after December, 31 2007.  See Note 11 of Notes to Consolidated Financial Statements for additional information regarding these commitments.


This excerpt taken from the LM 10-Q filed Nov 9, 2007.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our short and long-term debt, non-cancelable lease agreements and service agreements. In addition, we may be required to make contingent payments under business purchase agreements if certain future events occur.




21




The following table sets forth these contractual and contingent obligations by fiscal year as of September 30, 2007, unless otherwise noted:


(In millions)

Remaining

2008

2009

2010

2011

2012

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Long-term borrowings by contract maturity

$     3.4

$ 441.8

$     7.0

$ 555.6

$     2.3

$     8.6

$ 1,018.7

Coupon interest on long-term borrowings(1)

29.3

40.3

24.7

18.5

0.6

1.6

115.0

Minimum rental and service commitments(2)

58.5

121.1

114.3

89.5

82.8

687.0

1,153.2

Total Contractual Obligations

91.2

603.2

146.0

663.6

85.7

697.2

2,286.9

Contingent Obligations:

 

 

 

 

 

 

 

Contingent payments related to business 

    acquisitions(3)

252.0

7.5

293.5

60.0

613.0

Total Contractual and Contingent Obligations(4) (5) (6)

$ 343.2

$ 610.7

$ 439.5

$ 663.6

$ 145.7

$ 697.2

$ 2,899.9

(1) Coupon interest on floating rate long-term debt is based on rates outstanding at September 30, 2007.

(2) Subsequent to September 30, 2007, we entered into a purchase agreement, with a seller put option, to acquire land and a building currently leased by Legg Mason.  The agreement is for a fixed price of $28,950, which is not included in the minimum rental commitments shown above.  As a result of the terms of the put/purchase agreement, we will account for the lease as a capital lease beginning in October 2007.

(3) The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(4) The table above does not include approximately $36.3 in capital commitments to invest in investment vehicles. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2008 to 2011.

(5) The table above does not include amounts for uncertain tax positions because the timing of any related cash outflows cannot be reliably estimated.

(6) The table above does not include our obligations, if any, under LOCs.  See Note 10 of Notes to Consolidated Financial Statements for additional information regarding our commitments.


This excerpt taken from the LM 10-Q filed Aug 7, 2007.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our short and long-term debt, non-cancelable lease agreements and service agreements. In addition, we may be required to make contingent payments under business purchase agreements if certain future events occur.


The following table sets forth these contractual and contingent obligations by fiscal year as of June 30, 2007, unless otherwise noted:


(In millions)

Remaining

2008

2009

2010

2011

2012

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Long-term borrowings by contract maturity

$     5.3

$ 439.8

$     6.4

$ 605.0

$     2.3

$     8.6

$ 1,067.4

Coupon interest on long-term borrowings(1)

53.7

45.7

30.8

23.1

0.5

1.6

155.4

Minimum rental and service commitments

78.0

113.3

107.5

83.0

76.3

632.5

1,090.6

Total Contractual Obligations

137.0

598.8

144.7

711.1

79.1

642.7

2,313.4

Contingent Obligations:

 

 

 

 

 

 

 

Contingent payments related to business 

    acquisitions(2)

252.0

7.5

293.5

60.0

613.0

Total Contractual and Contingent Obligations(3)

$ 389.0

$ 606.3

$ 438.2

$ 711.1

$ 139.1

$ 642.7

$ 2,926.4

(1) Coupon interest on floating rate long-term debt is based on rates outstanding at June 30, 2007.

(2) The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(3) The table above does not include approximately $36.2 in capital commitments to invest in investment vehicles. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2008 to 2011.


This excerpt taken from the LM 10-K filed May 30, 2007.

Contractual Obligations and Contingent Payments

Legg Mason has contractual obligations to make future payments in connection with our long-term debt and non-cancelable lease agreements. In addition, as described in Liquidity and Capital Resources above, we have made or expect to make contingent payments under business purchase agreements. See Notes 7, 8, and 10 of Notes to Consolidated Financial Statements for additional disclosures related to our commitments.

 

The following table sets forth these contractual and contingent obligations by fiscal year:

This excerpt taken from the LM 10-Q filed Feb 7, 2007.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our short and long-term debt and non-cancelable lease agreements. In addition, we may be required to make contingent payments under business purchase agreements if certain future events occur.




35




The following table sets forth these contractual and contingent obligations by fiscal year as of December 31, 2006, unless otherwise noted:


(In millions)

Remaining

2007

2008

2009

2010

2011

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Long-term borrowings by contract maturity

$  1.0

$    4.2

$ 438.1

$     4.6

$ 703.1

$   11.9

$1,162.9

Coupon interest on long-term borrowings(1)

23.7

65.6

49.7

34.7

26.0

2.1

201.8

Minimum rental commitments(2)

21.9

95.6

99.5

86.0

68.0

492.1

863.1

Total Contractual Obligations

46.6

165.4

587.3

125.3

797.1

506.1

2,227.8

Contingent Obligations:

 

 

 

 

 

 

 

Contingent payments related to business acquisitions(3)

252.0

7.5

293.5

60.0

613.0

Total Contractual and Contingent Obligations(4)

$ 46.6

$ 417.4

$ 594.8

$ 418.8

$ 797.1

$ 566.1

$2,840.8

(1) Coupon interest on floating rate long-term debt is based on rates outstanding at December 31, 2006.

(2) Rental commitments include approximately $17.5 per year for New York office space commencing in November 2007 pursuant to a lease executed during the September quarter.

(3) The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(4) The table above does not include approximately $42.9 in capital commitments to invest in investment vehicles. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2007 to 2011.


This excerpt taken from the LM 10-Q filed Nov 7, 2006.

Contractual Obligations and Contingent Payments

We have contractual obligations to make future payments in connection with our short and long-term debt and non-cancelable lease agreements. In addition, we may be required to make contingent payments under business purchase agreements if certain future events occur.



34



The following table sets forth these contractual and contingent obligations by fiscal year as of September 30, 2006, unless otherwise noted:


(In millions)

Remaining

2007

2008

2009

2010

2011

Thereafter

Total

Contractual Obligations

 

 

 

 

 

 

 

Short-term borrowings by contract maturity

$   62.0

$      —

$      —

$      —

$      —

$      —

$     62.0

Long-term borrowings by contract maturity

2.0

4.2

441.6

4.6

703.1

10.2

1,165.7

Coupon interest on long-term borrowings(1)

37.7

71.2

55.6

39.0

18.6

2.1

224.2

Minimum rental commitments(2)

44.2

89.3

93.0

80.4

63.1

482.2

852.2

Total Contractual Obligations

145.9

164.7

590.2

124.0

784.8

494.5

2,304.1

Contingent Obligations:

 

 

 

 

 

 

 

Contingent payments related to business acquisitions(3)

12.0

252.0

7.5

293.5

60.0

625.0

Total Contractual and Contingent Obligations(4)

$ 157.9

$ 416.7

$ 597.7

$ 417.5

$ 784.8

$ 554.5

$2,929.1

 (1)

Coupon interest on floating rate long-term debt is based on rates outstanding at September 30, 2006.

(2)

Rental commitments include approximately $17.5 per year for New York office space commencing in November 2007 pursuant to a lease executed during the quarter.

(3)

The amount of contingent payments reflected for any year represents the maximum amount that could be payable at the earliest possible date under the terms of business purchase agreements.

(4)

The table above does not include approximately $39.4 in capital commitments to investment partnerships in which Legg Mason is a limited partner. These obligations will be funded, as required, through the end of the commitment periods that range from fiscal 2007 to 2011.


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