Lazard (LAZ) 10-Q 2012 Q1 Quarterly report

Exhibit 12.1

LAZARD LTD

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)

The following table sets forth the ratio of earnings to fixed charges for Lazard Ltd and its subsidiaries on a consolidated basis.

	Three  Months Ended March 31, 2012		Year Ended December 31,
			2011		2010			2009			2008			2007
			(dollars in thousands)
Operating income (loss)	$	37,823	$	235,499	$	243,650		$	(182,234	)	$	25,140		$	418,295
Add—Fixed charges		25,837		110,919		117,119			127,398			160,154			155,374
Operating income (loss) before fixed charges	$	63,660	$	346,418	$	360,769		$	(54,836	)	$	185,294		$	573,669
Fixed Charges:
Interest (b)	$	20,422	$	90,126	$	97,709		$	107,890		$	139,899		$	137,110
Other (c)		5,415		20,793		19,410			19,508			20,255			18,264
Total fixed charges	$	25,837	$	110,919	$	117,119		$	127,398		$	160,154		$	155,374
Ratio of earnings to fixed charges		2.46		3.12		3.08	(d)		–	(e)		1.16	(f)		3.69
Deficiency in the coverage of operating income (loss) before fixed charges to total fixed charges								$	182,234

Notes (dollars in thousands):

(a) For purposes of computing the ratio of earnings to fixed charges:

• earnings for the periods presented represent income before income taxes and fixed charges, and

• fixed charges represent the interest expense and the portion of rental expense which represents an appropriate interest factor.

(b) The Company’s policy is to include interest expense on unrecognized tax benefits in income tax expense. Accordingly, such interest expense is not included in the computations of the ratio of earnings to fixed charges.

(c) Other fixed charges consist of the interest factor in rentals.

(d) Operating income for the year ended December 31, 2010 is presented after giving effect to (i) a restructuring charge of $87,108, (ii) a charge of $24,860 relating to the amendment of Lazard’s retirement policy with respect to RSU awards and (iii) benefits pursuant to the tax receivable agreement of $8,834 relating to the aforementioned items. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.96.

(e) Operating loss for the year ended December 31, 2009 is presented after giving effect to (i) a restructuring charge of $62,550, (ii) the acceleration of amortization expense of $86,514 relating to the vesting of RSUs held by Lazard’s former Chairman and Chief Executive Officer as the result of his death in October 2009 and (iii) the acceleration of amortization expense of $60,512 relating to the accelerated vesting of the unamortized portion of previously awarded deferred cash incentive awards. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 1.21.

(f) On September 25, 2008, the Company, LAM and LAZ Sub I, LLC, a then newly-formed subsidiary of LFNY, completed the merger of LAZ Sub I, LLC with and into LAM (the “LAM Merger”). Prior to the LAM Merger, the common equity interests of LAM were held by LFNY, and certain other equity interests of LAM, representing contingent payments should certain specified fundamental transactions occur, were held by present and former employees of LAM. Following the LAM Merger, all equity interests of LAM are owned directly or indirectly by LFNY. Operating income for the year ended December 31, 2008 is presented after giving effect to a charge of $199,550 relating to the LAM Merger. Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 2.40.