Exhibit 12
LEGG MASON, INC. AND SUBSIDIARIES | ||||||||||||||||||||
Computation of Consolidated Ratios of Earnings to Fixed Charges | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Years ended March 31, | ||||||||||||||||||||
2017 | 2016(3) | 2015 | 2014 | 2013(3) | ||||||||||||||||
Earnings (loss) from operations before income tax provision (benefit) | $ | 370,878 | $ | (25,218 | ) | $ | 367,993 | $ | 419,641 | $ | (510,607 | ) | ||||||||
Fixed Charges: | ||||||||||||||||||||
Interest Expense | 112,993 | 53,288 | 56,782 | 53,492 | 57,903 | |||||||||||||||
Interest on uncertain tax positions included in earnings (loss) from operations before income tax provision (benefit)(1) | 180 | (4,825 | ) | 1,492 | (581 | ) | 5,016 | |||||||||||||
Portion of rental expenses representative of interest factor(2) | 39,590 | 38,232 | 38,914 | 38,197 | 41,246 | |||||||||||||||
Earnings (loss) available for fixed charges | $ | 523,641 | $ | 61,477 | $ | 465,181 | $ | 510,749 | $ | (406,442 | ) | |||||||||
Fixed Charges: | ||||||||||||||||||||
Interest Expense | $ | 113,173 | $ | 48,463 | $ | 58,274 | $ | 52,911 | $ | 62,919 | ||||||||||
Interest included in interest expense not related to third party indebtedness(1) | (180 | ) | 4,825 | (1,492 | ) | 581 | (5,016 | ) | ||||||||||||
Portion of rental expense representative of interest factor(2) | 39,590 | 38,232 | 38,914 | 38,197 | 41,246 | |||||||||||||||
Total Fixed Charges | $ | 152,583 | $ | 91,520 | $ | 95,696 | $ | 91,689 | $ | 99,149 | ||||||||||
Consolidated ratio of earnings (loss) to fixed charges | 3.4 | 0.7 | 4.9 | 5.6 | (4.1 | ) |
(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 years ended March 31, 2016 and 2013 by $30,043 and $505,591, respectively. |