EX-12 2 d438142dex12.htm COMPUTATION OF RATION OF EARNINGS Computation of Ration of Earnings

Exhibit 12

JEFFERIES GROUP, INC.

Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

(Dollar amounts in thousands)

 

     Twelve Months ended
November 30,		     Eleven months
ended
November  30,		     Twelve months ended
December 31,		  
     2012     2011     2010     2009     2008  

Fixed charges:

           

Interest expense on long-term indebtedness

    $ 292,987      $ 280,046      $ 194,851      $ 142,846      $ 117,227   

Interest portion of rent expense

      16,137        14,774        12,061        14,193        14,595   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed charges

    $ 309,124      $ 294,820      $ 206,912      $ 157,039      $ 131,822   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Convertible Preferred Stock Dividends

    $ 3,047      $ 4,063      $ 3,724      $ 4,063      $ 4,063   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings:

           

Earnings before income taxes

    $ 491,795      $ 419,334      $ 396,671      $ 507,747      $ (888,160 ) 

Total fixed charges

      309,124        294,820        206,912        157,039        131,822   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings before income taxes and fixed charges

    $ 800,919      $ 714,154      $ 603,583      $ 664,786      $ (756,338 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges(1)

      2.6 x      2.4 x      2.9 x      4.2 x      —   (2) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Combined Fixed

           

Charges and Convertible Preferred Stock

           

Dividends(3)

      2.6 x      2.4 x      2.9 x      4.1 x      —   (2) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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).
(2) Earnings for the year ended December 31, 2008 were insufficient to cover fixed charges by approximately $756.3 million.
(3) The ratio of earnings to combined fixed charges and preferred dividends is computed by dividing (a) income from continuing operations before income taxes plus fixed charges by the sum of (b) fixed charges and (c) convertible preferred stock dividends . 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 .)