Notes to Financial Statements (unaudited)
Legg Mason Partners Government Securities Fund (the “Fund”) is a separate diversified investment series of Legg Mason
Partners Income Trust (the “Trust”). The Trust, a Maryland business trust, is registered under the Investment Company Act of
1940, as amended (the “1940 Act”), as an open-end management investment company. Prior to April 16, 2007, the Fund was a
separate diversified series of Legg Mason Partners Investment Funds, Inc. (the “Company”), a Maryland corporation registered
under the 1940 Act.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally
accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and
changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment,
financial markets and any other parameters used in determining these estimates could cause actual results to differ.
(a) Investment Valuation. Securities are valued at the mean between the last quoted bid and asked prices provided by an
independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers,
market transactions in comparable securities and various other relationships between securities. When prices are not readily
available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in
accordance with the procedures approved by the Fund’s Board of Trustees. Short-term obligations with maturities of 60 days or
less are valued at amortized cost, which approximates fair value.
(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third
party custodian take possession of the underlying collateral securities, the market value of which, at all times, at least equals the
principal amount of the repurchase t