EX-12 2 lm_exhibit12x6302018.htm EXHIBIT 12 Exhibit


Exhibit 12

LEGG MASON, INC. AND SUBSIDIARIES
Computation of Consolidated Ratios of Earnings to Fixed Charges
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
 
Years ended March 31,
 
 
 
2018
 
2017
 
2016(3)
 
2015
 
2014
Earnings (loss) from operations before income tax provision (benefit)
 
$
109,040

 
$
233,840

 
$
370,878

 
$
(25,218
)
 
$
367,993

 
$
419,641

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
29,917

 
117,869

 
112,993

 
53,288

 
56,782

 
53,492

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

 
3

 
180

 
(4,825
)
 
1,492

 
(581
)
Portion of rental expenses representative of interest factor(2)
 
9,745

 
38,980

 
39,590

 
38,232

 
38,914

 
38,197

Earnings (loss) available for fixed charges
 
$
148,702

 
$
390,692

 
$
523,641

 
$
61,477

 
$
465,181

 
$
510,749

Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
$
29,917

 
$
117,872

 
$
113,173

 
$
48,463

 
$
58,274

 
$
52,911

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

 
(3
)
 
(180
)
 
4,825

 
(1,492
)
 
581

Portion of rental expense representative of interest factor(2)
 
9,745

 
38,980

 
39,590

 
38,232

 
38,914

 
38,197

Total Fixed Charges
 
$
39,662

 
$
156,849

 
$
152,583

 
$
91,520

 
$
95,696

 
$
91,689

Consolidated ratio of earnings (loss) to fixed charges
 
3.7

 
2.5

 
3.4

 
0.7

 
4.9

 
5.6


(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.
(3)
Earnings were inadequate to cover fixed charges for the year ended March 31, 2016 by $30,043.