Franklin Resources (BEN) 10-K 2013 FY Annual report

EXHIBIT 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(dollars in millions)	2013			2012			2011			2010			2009
for the fiscal years ended September 30,
Income before taxes excluding equity in income of investees, noncontrolling interests of consolidated subsidiaries and capitalized interest	$	2,952.6		$	2,609.6		$	2,625.3		$	2,050.2		$	1,270.8
Additions:
Dividends received from equity method investees	18.8			7.9			20.0			18.1			7.2
Interest on uncertain tax positions included in income before taxes	1.0			(0.3		)	3.2			5.1			3.5
Fixed charges
Interest expense - excluding interest on deposits	48.9			45.4			53.7			18.4			6.4
Interest expense - deposits	1.2			2.9			4.1			4.7			6.1
Interest on uncertain tax positions not related to third party	(1.0		)	0.3			(3.2		)	(5.1		)	(3.5		)
Interest factor on rent1	19.1			19.5			20.7			22.2			19.6
Total fixed charges	68.2			68.1			75.3			40.2			28.6
Adjusted earnings	$	3,040.6		$	2,685.3		$	2,723.8		$	2,113.6		$	1,310.1
Ratio of adjusted earnings to fixed charges including interest on deposits	44.6			39.4			36.2			52.6			45.8
Ratio of adjusted earnings to fixed charges excluding interest on deposits	45.4			41.1			38.2			59.4			58.0

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¹        Interest factor on rent represents one-third of rental expense (the approximate portion of rental expense representing interest).