Exhibit 12.1 LEHMAN BROTHERS HOLDINGS INC. and SUBSIDIARIES COMPUTATION of RATIOS of EARNINGS to FIXED CHARGES and to COMBINED FIXED CHARGES and PREFERRED STOCK DIVIDENDS (Dollars in millions) (Unaudited) For the Three Months Ended For the twelve months ended November 30 February ------------------------------------------------------------------- ----------- 1996 1997 1998 1999 2000 2000 ---------- ----------- ---------- ---------- ---------- ---------- Pre-tax earnings from continuing operations $ 637 $ 937 $1,052 $1,631 $2,579 $ 573 Add: Fixed charges (excluding capitalized interest ) 10,852 13,043 15,813 13,681 18,778 4,883 ---------- ----------- ---------- ---------- ---------- ---------- Pre-tax earnings before fixed charges 11,489 13,980 16,865 15,312 21,357 5,456 ========== =========== ========== ========== ========== ========== Fixed charges: Interest 10,816 13,010 15,781 13,649 18,740 4,869 Other (a) 50 41 47 71 57 15 ---------- ----------- ---------- ---------- ---------- ---------- Total fixed charges 10,866 13,051 15,828 13,720 18,797 4,884 ---------- ----------- ---------- ---------- ---------- ---------- Preferred stock dividend requirements 58 109 124 174 195 32 ---------- ----------- ---------- ---------- ---------- ---------- Total combined fixed charges and preferred stock dividends $ 10,924 $ 13,160 $ 15,952 $ 13,894 $ 18,992 $ 4,916 ========== =========== ========== ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 1.06 1.07 1.07 1.12 1.14 1.12 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 1.05 1.06 1.06 1.10 1.12 1.11 (a) Other fixed charges consist of the interest factor in rentals and capitalized interest.