EX-12.1 4 v27844exv12w1.htm EXHIBIT 12.1 Exhibit 12.1
 

EXHIBIT 12.1
JEFFERIES GROUP, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except for per share amounts)
                                         
    Year Ended December 31,  
    2006     2005     2004     2003     2002  
Fixed Charges:
                                        
Interest expense on long-term indebtedness
   $ 84,044     $ 47,669     $ 40,256     $ 23,987     $ 23,419  
Interest portion of rent expense
     14,469       11,653       9,437       7,636       6,037  
 
                              
Total fixed charges
   $ 98,513     $ 59,322     $ 49,693     $ 31,623     $ 29,456  
 
                              
 
                                        
Earnings:
                                        
Earnings before income taxes, minority interest, and cumulative effect of change in accounting principle
   $ 348,654     $ 268,407     $ 226,989     $ 144,533     $ 103,692  
Total fixed charges
     98,513       59,322       49,693       31,623       29,456  
 
                              
Total earnings
   $ 447,167     $ 327,729     $ 276,682     $ 176,156     $ 133,148  
 
                              
Ratio of Earnings to Fixed Charges (1)
     4.5       5.5       5.6       5.6       4.5  
(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).

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