Lazard Group LLC - FORM 10-K - EX-12.1 - February 25, 2016

Attached files

file filename
EX-32.2 - EX-32.2 - Lazard Group LLCd94944dex322.htm
EX-31.1 - EX-31.1 - Lazard Group LLCd94944dex311.htm
EX-32.1 - EX-32.1 - Lazard Group LLCd94944dex321.htm
10-K - 10-K - Lazard Group LLCd94944d10k.htm
EX-31.2 - EX-31.2 - Lazard Group LLCd94944dex312.htm
EX-21.1 - EX-21.1 - Lazard Group LLCd94944dex211.htm
EX-23.1 - EX-23.1 - Lazard Group LLCd94944dex231.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,  
     2015     2014      2013     2012     2011  
    

(dollars in thousands)

  

Operating income

    $ 530,845      $ 540,975       $ 219,009      $ 121,593      $ 241,791   

Add—Fixed charges

      78,826        91,691         111,317        116,255        114,998   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Operating income (loss) before
fixed charges

    $ 609,671      $ 632,666       $ 330,326      $ 237,848      $ 356,789   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Fixed Charges:

            

Interest (b)

    $ 54,885      $ 68,205       $ 87,039      $ 91,359      $ 94,211   

Other (c)

      23,941        23,486         24,278        24,896        20,787   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 78,826      $ 91,691       $ 111,317      $ 116,255      $ 114,998   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      7.73 (d)      6.90         2.97 (e)      2.05 (f)      3.10   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

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, 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 overlap 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.

 

(e) 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 2015 Notes 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.

 

(f) Operating income for the year ended December 31, 2012 is presented after giving effect to (i) a charge in the first quarter of $24,659 relating to severance costs and benefit payments associated with staff reductions, including the acceleration of unrecognized amortization expense of deferred incentive compensation previously granted to individuals being terminated, (ii) a charge in the fourth quarter of $102,576 associated with the cost saving initiatives announced by the Company in October, 2012. Excluding the impact of such items, the ratio of earnings to fixed charges would have been 3.14.

Lazard Group LLC Reports