Exhibit 12
LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
Years ended March 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Earnings (loss) from operations before income tax provision (benefit) | $ | 419,641 | $ | (510,607 | ) | $ | 303,083 | $ | 365,197 | $ | 329,656 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest Expense | 53,492 | 57,903 | 86,236 | 89,598 | 124,573 | |||||||||||||||
Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision (benefit)1 | (581 | ) | 5,016 | 1,348 | 2,559 | 1,700 | ||||||||||||||
Portion of rental expenses representative of interest factor2 | 38,197 | 41,246 | 41,992 | 42,074 | 43,066 | |||||||||||||||
Earnings (loss) available for fixed charges | $ | 510,749 | $ | (406,442 | ) | $ | 432,659 | $ | 499,428 | $ | 498,995 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest Expense | $ | 52,911 | $ | 62,919 | $ | 87,584 | $ | 92,157 | $ | 126,273 | ||||||||||
Interest included in interest expense not related to third party indebtedness1 | 581 | (5,016 | ) | (1,348 | ) | (2,559 | ) | (1,700 | ) | |||||||||||
Portion of rental expense representative of interest factor2 | 38,197 | 41,246 | 41,992 | 42,074 | 43,066 | |||||||||||||||
Total Fixed Charges | $ | 91,689 | $ | 99,149 | $ | 128,228 | $ | 131,672 | $ | 167,639 | ||||||||||
Consolidated ratio of earnings (loss) to fixed charges | 5.6 | (4.1 | ) | 3.4 | 3.8 | 3.0 |
1) | The portion of interest related to uncertain tax positions is excluded from the calculation. |
2) | The portion of rental expense representative of interest factor is calculated as one third of the total of Rent, Market Data Services, Maintenance, DP Service Bureau and Equipment Rental expenses. |