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EX-32.2 - EX-32.2 - Lazard Group LLClzd-ex322_9.htm
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EX-31.1 - EX-31.1 - Lazard Group LLClzd-ex311_10.htm
10-Q - 10-Q - Lazard Group LLClzd-10q_20180331.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

 

 

Year Ended December 31,

 

 

March 31, 2018

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

 

 

(dollars in thousands)

 

 

Operating income

 

$

186,952

 

 

$

633,753

 

 

$

521,993

 

 

$

530,845

 

 

$

540,975

 

 

$

219,009

 

 

Add—Fixed charges

 

 

21,098

 

 

 

81,391

 

 

 

77,071

 

 

 

78,826

 

 

 

91,691

 

 

 

111,317

 

 

Operating income before fixed charges

 

$

208,050

 

 

$

715,144

 

 

$

599,064

 

 

$

609,671

 

 

$

632,666

 

 

$

330,326

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (b)

 

$

14,472

 

 

$

57,254

 

 

$

53,730

 

 

$

54,885

 

 

$

68,205

 

 

$

87,039

 

 

Other (c)

 

 

6,626

 

 

 

24,137

 

 

 

23,341

 

 

 

23,941

 

 

 

23,486

 

 

 

24,278

 

 

Total fixed charges

 

$

21,098

 

 

$

81,391

 

 

$

77,071

 

 

$

78,826

 

 

$

91,691

 

 

$

111,317

 

 

Ratio of earnings to fixed charges

 

 

9.86

 

(d)

 

8.79

 

(e)

 

7.77

 

(f)

 

7.73

 

(g)

 

6.90

 

 

 

2.97

 

(h)

Notes (dollars in thousands):

(a)

For purposes of computing the ratio of earnings to fixed charges:

 

earnings for the periods 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 three months ended March 31, 2018 is presented after giving effect to a charge of (i) $5 of acquisition-related costs, (ii) $7,426 of expenses associated with the ERP system implementation and (iii) $1,389 of expenses related to office space reorganization. Excluding the impact of such charges, the ratio of earnings to fixed charges would have been 10.45.

(e)

Operating income for the year ended December 31, 2017 is presented after giving effect to (i) $1,291 of acquisition-related costs, (ii) $25,308 of expenses associated with the ERP system implementation, and (iii) $11,354 of expenses related to office space reorganization.  Excluding the impact of such items, the ratio of earnings to fixed charges would have been 9.24.

(f)

Operating income for the year ended December 31, 2016 is presented after giving effect to a charge of (i) $3,148 associated with the redemption of the remaining portion of the 6.85% senior notes due June 2017 (the “2017 Notes”), (ii) $599 excess interest expense due to the period of time between the issuance of the 2027 Notes and the settlement of the redemption of the 2017 Notes, (iii) $30,991 of acquisition-related costs and (iv) $12,668 gain on the acquisition of MBA Lazard (which resulted from the increase in the fair value of the Company’s investment in MBA Lazard prior to the acquisition). Excluding the impact of such charges, the ratio of earnings to fixed charges would have been 8.11.

(g)

Operating income for the year ended December 31, 2015 is presented after giving effect to a charge of (i) $60,219 associated with the redemption of $450 million of the 2017 Notes, (ii) $2,655 excess interest expense due to the period of time between the issuance of the 2025 Notes and the settlement of the redemption of the 2017 Notes, and (iii) $12,203 relating to a private equity revenue adjustment. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 8.64.

(h)

Operating income for the year ended December 31, 2013 is presented after giving effect to a charge of (i) $64,703 associated with the cost saving initiatives announced by the Company in October 2012, (ii) $54,087 pertaining to the refinancing of the 7.125% senior notes due May 2015 and the issuance of the 2020 Notes and (iii) $12,203 relating to private equity incentive compensation. Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 4.14.