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WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| | (dollars in millions) | | |||||||||||
Earnings, including interest on deposits(1): | ||||||||||||||
Income from continuing operations before income taxes | $ | 182 | $ | 1,133 | $ | 2,663 | $ | 3,815 | ||||||
Fixed charges | 2,883 | 3,203 | 8,608 | 8,712 | ||||||||||
$ | 3,065 | $ | 4,336 | $ | 11,271 | $ | 12,527 | |||||||
Preferred dividend requirement | $ | 8 | $ | – | $ | 23 | $ | – | ||||||
Ratio of income from continuing operations before income taxes to income from continuing operations | 0.98 | 1.53 | 1.48 | 1.54 | ||||||||||
Preferred dividends(2) | $ | 8 | $ | – | $ | 34 | $ | – | ||||||
Fixed charges(1)(3): | ||||||||||||||
Interest expense | $ | 2,842 | $ | 3,158 | $ | 8,482 | $ | 8,574 | ||||||
Estimated interest component of net rental expense | 41 | 45 | 126 | 138 | ||||||||||
2,883 | 3,203 | 8,608 | 8,712 | |||||||||||
Fixed charges and preferred dividends | $ | 2,891 | $ | 3,203 | $ | 8,642 | $ | 8,712 | ||||||
Ratio of earnings to fixed charges and preferred dividends | 1.06 | 1.35 | 1.30 | 1.44 | ||||||||||
Earnings, excluding interest on deposits(1): | ||||||||||||||
Income from continuing operations before income taxes | $ | 182 | $ | 1,133 | $ | 2,663 | $ | 3,815 | ||||||
Fixed charges | 1,233 | 1,464 | 3,463 | 4,292 | ||||||||||
$ | 1,415 | $ | 2,597 | $ | 6,126 | $ | 8,107 | |||||||
Preferred dividends(2) | $ | 8 | $ | – | $ | 34 | $ | – | ||||||
Fixed charges(1)(3): | ||||||||||||||
Interest expense | $ | 2,842 | $ | 3,158 | $ | 8,482 | $ | 8,574 | ||||||
Less: interest on deposits | (1,650 | ) | (1,739 | ) | (5,145 | ) | (4,420 | ) | ||||||
Estimated interest component of net rental expense | 41 | 45 | 126 | 138 | ||||||||||
1,233 | 1,464 | 3,463 | 4,292 | |||||||||||
Fixed charges and preferred dividends | $ | 1,241 | $ | 1,464 | $ | 3,497 | $ | 4,292 | ||||||
Ratio of earnings to fixed charges and preferred dividends | 1.14 | 1.77 | 1.75 | 1.89 | ||||||||||
- (1)
- As defined in Item 503(d) of Regulation S-K.
- (2)
- The preferred dividends were increased to amounts representing the pretax earnings that would be required to cover such dividend requirements.
- (3)
- Fixed charges exclude interest expense on uncertain tax positions which is included as a component of income taxes in the Consolidated Statements of Income.