EX-12 5 lm_exhibit12x3312016.htm EXHIBIT 12 SEC Exhibit


Exhibit 12

LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Years ended March 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings (loss) from operations before income tax provision (benefit)
 
$
(25,218
)
 
$
367,993

 
$
419,641

 
$
(510,607
)
 
$
303,083

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
53,288

 
56,782

 
53,492

 
57,903

 
86,236

Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision (benefit)1
 
(4,825
)
 
1,492

 
(581
)
 
5,016

 
1,348

Portion of rental expenses representative of interest factor2
 
38,232

 
38,914

 
38,197

 
41,246

 
41,992

Earnings (loss) available for fixed charges
 
$
61,477

 
$
465,181

 
$
510,749

 
$
(406,442
)
 
$
432,659

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
48,463

 
$
58,274

 
$
52,911

 
$
62,919

 
$
87,584

Interest included in interest expense not related to third party indebtedness1
 
4,825

 
(1,492
)
 
581

 
(5,016
)
 
(1,348
)
Portion of rental expense representative of interest factor2
 
38,232

 
38,914

 
38,197

 
41,246

 
41,992

Total Fixed Charges
 
$
91,520

 
$
95,696

 
$
91,689

 
$
99,149

 
$
128,228

Consolidated ratio of earnings (loss) to fixed charges
 
0.7

 
4.9

 
5.6

 
(4.1
)
 
3.4


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.