EX-12 3 lm_exhibit12x3312012.htm LM_Exhibit 12_3.31.2012


Exhibit 12
 
LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
 

 
 
Years Ended March 31,
 
 
2012
 
2011
 
2010
 
2009
 
2008
Earnings (loss) from operations before income tax provision
 
$
303,083

 
$
365,197

 
$
329,656

 
$
(3,188,197
)
 
$
437,327

Fixed Charges:
 


 
 

 
 

 
 

 
 

Interest Expense
 
86,236

 
89,598

 
124,573

 
177,588

 
87,993

Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision1
 
1,348

 
2,559

 
1,700

 
5,217

 
1,232

Portion of rental expenses representative of interest factor2
 
41,992

 
42,074

 
43,066

 
37,487

 
39,080

Earnings (loss) available for fixed charges
 
$
432,659

 
$
499,428

 
$
498,995

 
$
(2,967,905
)
 
$
565,632

Fixed Charges:
 
 
 
 

 
 

 
 

 
 

Interest Expense
 
$
87,584

 
$
92,157

 
$
126,273

 
$
182,805

 
$
89,225

Interest expense included in interest expense not related to third party indebtedness1
 
(1,348
)
 
(2,559
)
 
(1,700
)
 
(5,217
)
 
(1,232
)
Portion of rental expense representative of interest factor2
 
41,992

 
42,074

 
43,066

 
37,487

 
39,080

Total Fixed Charges
 
$
128,228

 
$
131,672

 
$
167,639

 
$
215,075

 
$
127,073

Consolidated ratio of earnings (loss) to fixed charges
 
3.4

 
3.8

 
3.0

 
(13.8
)
 
4.5



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.