| Three Months | ||||||||||||||||||||||||
| Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||
Profit (Loss) Before Income Taxes | $ | 9,829 | $ | 70,766 | $ | 34,813 | ($36,043 | ) | $ | 127,394 | $ | 80,450 | ||||||||||||
Add Fixed Charges: | ||||||||||||||||||||||||
Interest Expense(1) | 7,774 | 25,914 | 21,050 | 38,998 | 56,643 | 62,867 | ||||||||||||||||||
Amortization of Debt Issuance Costs | 92 | 643 | 1,164 | 1,227 | 1,218 | 352 | ||||||||||||||||||
Appropriate Portion of Rentals Representative of the Interest Factor(2) | 3,971 | 16,793 | 16,853 | 15,687 | 11,036 | 11,090 | ||||||||||||||||||
Total Fixed Charges | 11,837 | 43,450 | 39,067 | 55,912 | 68,897 | 74,309 | ||||||||||||||||||
Earnings | 21,666 | 114,116 | 73,880 | 19,869 | 196,291 | 154,759 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges(3) | 1.8 | 2.6 | 1.9 | — | 2.8 | 2.1 | ||||||||||||||||||
| (1) | Includes interest expenses on short-term borrowings including bank call loans, securities lending, and repurchase agreements which generally have a corresponding asset that generates interest income that substantially offsets or exceeds the aforementioned interest expense. | |
| (2) | The percent of rent included in the computation is a reasonable approximation of the interest factor. | |
| (3) | Due to the Company’s pre-tax loss in the year ended December 31, 2008 the ratio coverage was less than 1:1 in this period. The Company would have needed to generate additional earnings of $36 million to achieve a coverage of 1:1. |
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