EX-12 6 lm_exhibit12x3312015.htm EXHIBIT 12 LM_EXHIBIT 12_3.31.2015


Exhibit 12


LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Years ended March 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings (loss) from operations before income tax provision (benefit)
 
$
367,993

 
$
419,641

 
$
(510,607
)
 
$
303,083

 
$
365,197

Fixed Charges:
 
 
 
 
 
 
 
 
 
 

Interest Expense
 
56,782

 
53,492

 
57,903

 
86,236

 
89,598

Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision (benefit)1
 
1,492

 
(581
)
 
5,016

 
1,348

 
2,559

Portion of rental expenses representative of interest factor2
 
38,914

 
38,197

 
41,246

 
41,992

 
42,074

Earnings (loss) available for fixed charges
 
$
465,181

 
$
510,749

 
$
(406,442
)
 
$
432,659

 
$
499,428

Fixed Charges:
 
 
 
 
 
 
 
 
 
 

Interest Expense
 
$
58,274

 
$
52,911

 
$
62,919

 
$
87,584

 
$
92,157

Interest included in interest expense not related to third party indebtedness1
 
(1,492
)
 
581

 
(5,016
)
 
(1,348
)
 
(2,559
)
Portion of rental expense representative of interest factor2
 
38,914

 
38,197

 
41,246

 
41,992

 
42,074

Total Fixed Charges
 
$
95,696

 
$
91,689

 
$
99,149

 
$
128,228

 
$
131,672

Consolidated ratio of earnings (loss) to fixed charges
 
4.9

 
5.6

 
(4.1
)
 
3.4

 
3.8


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.