EX-12 2 lm_exhibit12x6302013.htm EXHIBIT 12 LM_Exhibit 12_6.30.2013


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

 
 
Three months ended June 30,
 
Years ended March 31,
 
 
2013
 
2013
 
2012
 
2011
 
2010
Earnings (loss) from operations before income tax provision (benefit)
 
$
74,887

 
$
(510,607
)
 
$
303,083

 
$
365,197

 
$
329,656

Fixed Charges:
 
 
 
 
 
 
 
 

 
 

Interest Expense
 
12,594

 
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
 
474

 
5,016

 
1,348

 
2,559

 
1,700

Portion of rental expenses representative of interest factor2
 
10,311

 
41,246

 
41,992

 
42,074

 
43,066

Earnings (loss) available for fixed charges
 
$
98,266

 
$
(406,442
)
 
$
432,659

 
$
499,428

 
$
498,995

Fixed Charges:
 
 
 
 
 
 
 
 

 
 

Interest Expense
 
$
13,068

 
$
62,919

 
$
87,584

 
$
92,157

 
$
126,273

Interest expense included in interest expense not related to third party indebtedness1
 
(474
)
 
(5,016
)
 
(1,348
)
 
(2,559
)
 
(1,700
)
Portion of rental expense representative of interest factor2
 
10,311

 
41,246

 
41,992

 
42,074

 
43,066

Total Fixed Charges
 
$
22,905

 
$
99,149

 
$
128,228

 
$
131,672

 
$
167,639

Consolidated ratio of earnings (loss) to fixed charges
 
4.3

 
(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.