EX-12 2 d489655dex12.htm EX-12 EX-12

Exhibit 12

JEFFERIES GROUP, INC.

Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

(Dollar amounts in thousands)

 

   

Three months ended

February 28,

           Twelve Months ended
November 30, 		         

Eleven months ended

November 30,

           Twelve months ended
December 31,		  
    2013           2012           2011           2010           2009           2008  

Fixed charges:

                      

Interest expense on long-term indebtedness

   $ 79,918        $ 292,987        $ 280,046        $ 194,851        $ 142,846        $ 117,227   

Interest portion of rent expense

     4,024          16,137          14,774          12,061          14,193          14,595   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Fixed charges

   $ 83,942        $ 309,124        $ 294,820        $ 206,912        $ 157,039        $ 131,822   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Convertible Preferred Stock Dividends

   $ 1,016        $ 4,063        $ 4,063        $ 3,724        $ 4,063        $ 4,063   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Earnings:

                      

Earnings before income taxes

   $ 130,987        $ 491,795        $ 419,334        $ 396,671        $ 507,747        $ (888,160 ) 

Total fixed charges

     83,942          309,124          294,820          206,912          157,039          131,822   
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total earnings before income taxes and fixed charges

   $ 214,929        $ 800,919        $ 714,154        $ 603,583        $ 664,786        $ (756,338 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratio of Earnings to Fixed Charges (1)

     2.6        x        2.6        x        2.4        x        2.9        x        4.2        x        —   (2) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratio of Earnings to Combined Fixed Charges and Convertible Preferred Stock Dividends (3)

     2.5        x        2.6        x        2.4        x        2.9        x        4.1        x        —   (2) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(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) Earnings for the year ended December 31, 2008 were insufficient to cover fixed charges by approximately $756.3 million.
(3) 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.)