Attached files

file filename
10-K - FORM 10-K - Lazard Group LLCd10k.htm
EX-31.2 - RULE 13A-14(A) CERTIFICATION OF MICHAEL J. CASTELLANO - Lazard Group LLCdex312.htm
EX-21.1 - SUBSIDIARIES OF REGISTRANT - Lazard Group LLCdex211.htm
EX-32.2 - SECTION 1350 CERTIFICATION FOR MICHAEL J. CASTELLANO - Lazard Group LLCdex322.htm
EX-31.1 - RULE 13A-14(A) CERTIFICATION OF KENNETH M. JACOBS - Lazard Group LLCdex311.htm
EX-32.1 - SECTION 1350 CERTIFICATION FOR KENNETH M. JACOBS - Lazard Group LLCdex321.htm
EX-10.48 - AMENDMENT NO. 2 TO THE SENIOR REVOLVING CREDIT AGREEMENT - Lazard Group LLCdex1048.htm
EX-10.47 - AMENDMENT NO. 1 TO THE SENIOR REVOLVING CREDIT AGREEMENT - Lazard Group LLCdex1047.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.

 

     Year Ended December 31,  
     2010     2009     2008     2007     2006  
     (dollars in thousands)  

Operating income (loss)

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

Add—Fixed charges

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

Operating income (loss) before fixed charges

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

Fixed Charges:

          

Interest (b)

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

Other (c)

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

Total fixed charges

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

Ratio of earnings to fixed charges

     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         
                      

 

(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 (see Notes 16 and 18 of Notes to Consolidated Financial Statements). Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.95.

 

(e) Operating income (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 (see Notes 16 and 18 of Notes to Consolidated Financial Statements). 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 (see Note 8 of Notes to Consolidated Financial Statements). Excluding the impact of such charge, the ratio of earnings to fixed charges would have been 2.49.