EX-12 2 exhibit12.htm EX-12 Exhibit 12


Exhibit 12
JEFFERIES GROUP LLC
Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(Dollar amounts in thousands)
 
 
Successor
 
 
Predecessor
 
 
Nine months
ended
August 31,
 
Nine months
ended
November 30,
 
 
Three months
ended
February 28,
 
Twelve Months
ended November 30,
 
Eleven months
ended
November 30,
 
Twelve Months
ended
November 30,
 
 
2014
 
2013
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense on long-term indebtedness
$
186,862

  
$
184,954

  
 
$
79,918

  
$
292,987

  
$
280,046

  
$
194,851

  
$
142,846

  
Interest portion of rent expense
14,301

  
14,400

  
 
4,024

  
16,137

  
14,774

  
12,061

  
14,193

  
Total Fixed charges
$
201,163

  
$
199,354

  
 
$
83,942

  
$
309,124

  
$
294,820

  
$
206,912

  
$
157,039

  
Convertible Preferred Stock Dividends
$
—

  
$
—

  
 
$
1,016

  
$
4,063

  
$
4,063

  
$
3,724

  
$
4,063

  
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before income taxes
$
417,041

  
$
264,295

  
 
$
139,487

(3)
$
491,795

  
$
419,334

  
$
396,671

  
$
507,747

  
Total fixed charges
201,163

  
199,354

  
 
83,942

  
309,124

  
294,820

  
206,912

  
157,039

  
Total earnings before income taxes and fixed charges
$
618,204

  
$
463,649

  
 
$
223,429

  
$
800,919

  
$
714,154

  
$
603,583

  
$
664,786

  
Ratio of Earnings to Fixed Charges (1)
3.1

x 
2.3

x 
 
2.7

x 
2.6

x 
2.4

x 
2.9

x 
4.2

x 
Ratio of Earnings to Combined Fixed Charges and Convertible Preferred Stock Dividends (2)
3.1

x 
2.3

x 
 
2.6

x 
2.6

x 
2.4

x 
2.9

x 
4.1

x 
 
(1)
The ratio of earnings to fixed charges is computed by dividing (a) income from continuing operations before income taxes plus fixed charges by (b) fixed charges. Fixed charges consist of interest expense on all long-term indebtedness and the portion of operating lease rental expense that is representative of the interest factor (deemed to be one-third of operating lease rentals).
(2)
The ratio of earnings to combined fixed charges and preferred dividends is computed by dividing (a) income from continuing operations before income taxes plus fixed charges by the sum of (b) fixed charges and (c) convertible preferred stock dividends. Fixed charges consist of interest expense on all long-term indebtedness and the portion of operating lease rental expense that is representative of the interest factor (deemed to be one-third of operating lease rentals.)
(3)
Our net earnings before income taxes for the three months ended February 28, 2013 reflects an adjustment to what was reported in our previously issued Form 10-Q for the three months ended February 28, 2013 of $8.5 million to correct for the effect of an overstatement of professional service fees of $8.5 million relating to the Leucadia Transaction. Professional service fees related to the Leucadia Transaction were incorrectly accrued in the quarter ended February 28, 2013, and not on March 1, 2013 when the transaction was completed. This had the effect of understating net earnings before income taxes by approximately $8.5 million for the three month period ended February 28, 2013 and, accordingly, we have increased first quarter net earnings before income taxes to $139.5 million as presented in this table. We do not believe these adjustments are material to our financial statements for any previously reported period.