Franklin Resources (BEN) 10-K 2010 FY Annual report

EXHIBIT 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(dollars in thousands) for the fiscal years ended September 30,	2010			2009			2008			2007		2006
Income before taxes excluding equity in income of investees, redeemable noncontrolling interests of consolidated subsidiaries and capitalized interest	$	2,050,216		$	1,270,789		$	2,219,602		$	2,406,424	$	1,824,729
Additions:
Dividends received from equity method investees		18,106			7,187			10,863			19,537		22,486
Interest on uncertain tax positions included in income before taxes		5,064			3,507			4,252			0		0
Fixed charges
Interest expense-excluding interest on deposits		18,401			6,396			29,991			23,595		30,155
Interest expense-deposits		4,723			6,153			8,893			14,344		14,391
Interest on uncertain tax positions not related to third party		(5,064	)		(3,507	)		(4,252	)		0		0
Interest factor on rent1		22,197			19,577			19,271			17,318		16,736
Total fixed charges		40,257			28,619			53,903			55,257		61,282
Adjusted earnings	$	2,113,643		$	1,310,102		$	2,288,620		$	2,481,218	$	1,908,497
Ratio of adjusted earnings to fixed charges including interest on deposits		52.5			45.8			42.5			44.9		31.1
Ratio of adjusted earnings to fixed charges excluding interest on deposits		59.3			58.0			50.6			60.3		40.4

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