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WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| (dollars in millions) | |||||||||||||
Earnings, including interest on deposits(1): | ||||||||||||||
Income (loss) before income taxes | $ | (5,534 | ) | $ | 1,240 | $ | (7,529 | ) | $ | 2,479 | ||||
Fixed charges | 1,945 | 2,756 | 4,401 | 5,726 | ||||||||||
$ | (3,589 | ) | $ | 3,996 | $ | (3,128 | ) | $ | 8,205 | |||||
Fixed charges(1)(2): | ||||||||||||||
Interest expense | $ | 1,906 | $ | 2,714 | $ | 4,321 | $ | 5,641 | ||||||
Estimated interest component of net rental expense | 39 | 42 | 80 | 85 | ||||||||||
$ | 1,945 | $ | 2,756 | $ | 4,401 | $ | 5,726 | |||||||
Ratio of earnings to fixed charges | * | 1.45 | * | 1.43 | ||||||||||
Earnings, excluding interest on deposits(1): | ||||||||||||||
Income (loss) before income taxes | $ | (5,534 | ) | $ | 1,240 | $ | (7,529 | ) | $ | 2,479 | ||||
Fixed charges | 830 | 1,033 | 1,958 | 2,231 | ||||||||||
$ | (4,704 | ) | $ | 2,273 | $ | (5,571 | ) | $ | 4,710 | |||||
Fixed charges(1)(2): | ||||||||||||||
Interest expense | $ | 1,906 | $ | 2,714 | $ | 4,321 | $ | 5,641 | ||||||
Less: Interest on deposits | (1,115 | ) | (1,723 | ) | (2,443 | ) | (3,495 | ) | ||||||
Estimated interest component of net rental expense | 39 | 42 | 80 | 85 | ||||||||||
$ | 830 | $ | 1,033 | $ | 1,958 | $ | 2,231 | |||||||
Ratio of earnings to fixed charges | * | 2.20 | * | 2.11 | ||||||||||
- (1)
- As defined in Item 503(d) of Regulation S-K.
- (2)
- Fixed charges exclude interest expense on uncertain tax positions which is included as a component of income taxes in the Consolidated Statements of Income.
- *
- The earnings for the three and six months ended June 30, 2008 were inadequate to cover total fixed charges. The deficiencies in coverage for the periods were $5.53 billion and $7.53 billion.