Lazard Group LLC - FORM 10-Q - EX-12.1 - COMPUTATION FO RATIO OF EARNINGS TO FIXED CHARGES - April 29, 2011

Attached files

file filename
10-Q - FORM 10-Q - Lazard Group LLCd10q.htm
EX-31.1 - RULE 13A-14(A) CERTIFICATION OF KENNETH M. JACOBS - Lazard Group LLCdex311.htm
EX-31.2 - RULE 13A-14(A) CERTIFICATION OF MATTHIEW BUCAILLE - Lazard Group LLCdex312.htm
EX-32.1 - SECTION 1350 CERTIFICATION OF KENNETH M. JACOBS - Lazard Group LLCdex321.htm
EX-10.54 - FORM OF AGREEMENT EVIDENCING A GRANT OF LAZARD FUND INTERESTS - Lazard Group LLCdex1054.htm
EX-10.31 - FIRST AMENDMENT TO THE AGREEMENT RELATING TO RETENTION - MATTHIEU BUCAILLE - Lazard Group LLCdex1031.htm
EX-10.30 - AGREEMENT RELATING TO RETENTION AND NONCOMPETITION - MATTHIEU BUCAILLE - Lazard Group LLCdex1030.htm
EX-10.15 - AMENDMENT DATED FEBRUARY 16, 2011 TO THE LEASE DATED JANUARY 27, 1994 - Lazard Group LLCdex1015.htm
EX-10.24 - SECOND AMENDMENT TO THE AGREEMENT RELATING TO RETENTION - SCOTT D. HOFFMAN - Lazard Group LLCdex1024.htm
EX-32.2 - SECTION 1350 CERTIFICATION OF MATTHIEW BUCAILLE - Lazard Group LLCdex322.htm

Exhibit 12.1

LAZARD GROUP LLC

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)

 

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

 

     Three  Months
Ended
March 31,
2011		      Year Ended December 31,  
        2010     2009     2008     2007     2006  
    

(dollars in thousands)

  

Operating income (loss)

    $
 73,896
   
    $ 246,809      $ (181,988 )    $ 42,029      $ 436,064      $ 333,676   

Add—Fixed charges

      29,290         121,656        132,785        161,665        154,790        119,698   
                                                 

Operating income (loss) before fixed charges

    $ 103,186       $ 368,465      $ (49,203 )    $ 203,694      $ 590,854      $ 453,374   
                                                 

Fixed Charges:

              

Interest (b)

    $
 24,324
   
    $ 102,249      $ 113,280      $ 141,413      $ 136,529      $ 104,348   

Other (c)

      4,966         19,407        19,505        20,252        18,261        15,350   
                                                 

Total fixed charges

    $
 29,290
   
    $ 121,656      $ 132,785      $ 161,665      $ 154,790      $ 119,698   
                                                 

Ratio of earnings to fixed charges

      3.52         3.03 (d)      —   (e)      1.26 (f)      3.82        3.79   
                                                 

Deficiency in the coverage of operating income (loss) before fixed charges to total fixed charges

         $ 181,988         
                   

 

Notes (dollars in thousands):

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

 

  •  

earnings for the years 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 and (ii) a charge of $24,860 relating to the amendment of Lazard’s retirement policy with respect to RSU awards. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.95.

 

(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) 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 2.49.

Lazard Group LLC Reports