Lazard Group LLC - FORM 10-Q - EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - May 2, 2012

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EXCEL - IDEA: XBRL DOCUMENT - Lazard Group LLCFinancial_Report.xls
EX-31.2 - RULE 13A-14(A) CERTIFICATION OF MATTHIEU BUCAILLE - Lazard Group LLCd338086dex312.htm
EX-32.2 - SECTION 1350 CERTIFICATION FOR MATTHIEU BUCAILLE - Lazard Group LLCd338086dex322.htm
EX-32.1 - SECTION 1350 CERTIFICATION FOR KENNETH M. JACOBS - Lazard Group LLCd338086dex321.htm
EX-10.49 - AMENDMENT NO. 3 TO THE SENIOR REVOLVING CREDIT AGREEMENT - Lazard Group LLCd338086dex1049.htm
EX-10.52 - FORM OF AGREEMENT EVIDENCING A GRANT OF RESTRICTED STOCK UNITS - Lazard Group LLCd338086dex1052.htm
EX-10.45 - AMENDMENT, DATED AS OF FEBRUARY 27, 2012 TO LETTER AGREEMENT - Lazard Group LLCd338086dex1045.htm
10-Q - FORM 10-Q - Lazard Group LLCd338086d10q.htm
EX-31.1 - RULE 13A-14(A) CERTIFICATION OF KENNETH M. JACOBS - Lazard Group LLCd338086dex311.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 and its subsidiaries on a consolidated basis.

 

     Three  Months
Ended
March 31,
2012		      Year Ended December 31,  
        2011      2010     2009     2008     2007  
           

(dollars in thousands)

  

Operating income (loss)

    $ 32,578       $ 241,791       $ 246,809      $ (181,988 )    $ 42,029      $ 436,064   

Add—Fixed charges

      28,033         114,998         121,656        132,785        161,665        154,790   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss) before
fixed charges

    $ 60,611       $ 356,789       $ 368,465      $ (49,203 )    $ 203,694      $ 590,854   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

               

Interest (b)

    $ 22,620       $ 94,211       $ 102,249      $ 113,280      $ 141,413      $ 136,529   

Other (c)

      5,413         20,787         19,407        19,505        20,252        18,261   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 28,033       $ 114,998       $ 121,656      $ 132,785      $ 161,665      $ 154,790   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      2.16         3.10         3.03 (d)      – (e)      1.26 (f)      3.82   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

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 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 year ended December 31, 2010 is presented after giving effect to (i) a restructuring charge of $87,108, (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) On September 25, 2008, the Company, LAM and LAZ Sub I, LLC, a then newly-formed subsidiary of LFNY, completed the merger of LAZ Sub I, LLC with and into LAM (the “LAM Merger”). Prior to the LAM Merger, the common equity interests of LAM were held by LFNY, and certain other equity interests of LAM, representing contingent payments should certain specified fundamental transactions occur, were held by present and former employees of LAM. Following the LAM Merger, all equity interests of LAM are owned directly or indirectly by LFNY. 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