EX-12 2 r8k-0805ex12.htm EXHIBIT 12

Exhibit 12

LEGG MASON, INC. AND SUBSIDIARIES

Computation of Consolidated Ratios of Earnings to Fixed Charges

(Dollars in thousands)

 

 

 

 

 

 

 

 

Years Ended March 31,

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

Earnings from continuing operations before income tax provision

$  (3,188,197)

$

437,327

$

1,043,854

$

715,462

$

470,758

Fixed Charges:

 

 

 

 

 

Interest Expense

182,805

89,225

71,474

52,648

44,765

Interest on uncertain tax positions included in earnings operations before income tax provision(1)

5,217

1,232

(649)

780

520

Portion of rental expenses representative of interest factor(2)

37,487

39,080

32,383

15,969

9,237

 

 

 

 

 

 

Earnings available for fixed charges

$  (2,962,688)

$

566,864

$

1,147,062

$

784,859

$

525,280

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

Interest Expense

$      182,805

$

89,225

$

71,474

$

52,648

$

44,765

Interest expense included in interest expense not related to third party indebtedness(1)

(5,217)

(1,232)

649

(780)

(520)

Portion of rental expense representative of interest factor(2)

37,487

39,080

32,383

15,969

9,237

 

 

 

 

 

 

Total Fixed Charges

$      215,075

$

127,073

$

104,506

$

67,837

$

53,482

 

 

 

 

 

 

Consolidated ratio of earnings to fixed charges

(13.8)

4.5

11.0

11.6

9.8

 

 

 

 

 

 

 

(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, Marketing Data Services, Maintenance, DP Service Bureau and Equipment Rental expenses.