Exhibit 12
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (dollars in millions) |
| | | | | | | | | | | | | | | | | | |
| Successor Company | Predecessor Company |
| Three Months Ended | Nine Months Ended | Year Ended | Year Ended | Year Ended | Year Ended |
| September 30, 2012 (unaudited) | September 30, 2012 (unaudited) | December 31, 2011 | December 31, 2010 | December 31, 2009 | December 26, 2008 |
| | | | | | |
Pre-tax (loss) earnings (a) | $ | (1,018 | ) | $ | (2,867 | ) | $ | (5,446 | ) | $ | 2,708 |
| $ | 6,455 |
| $ | (45,438 | ) |
| | | | | | |
Add: Fixed charges (excluding capitalized interest and preferred security dividend requirements of subsidiaries) | 1,801 |
| 5,709 |
| 9,098 |
| 9,935 |
| 12,341 |
| 29,641 |
|
Pre-tax earnings (loss) before fixed charges | $ | 783 |
| $ | 2,842 |
| $ | 3,652 |
| $ | 12,643 |
| $ | 18,796 |
| $ | (15,797 | ) |
| | | | | | |
Fixed charges: | | | | | | |
Interest | $ | 1,732 |
| $ | 5,494 |
| $ | 8,785 |
| $ | 9,621 |
| $ | 12,041 |
| $ | 29,349 |
|
Other (b) | 69 |
| 215 |
| 313 |
| 314 |
| 300 |
| 292 |
|
Total fixed charges | $ | 1,801 |
| $ | 5,709 |
| $ | 9,098 |
| $ | 9,935 |
| $ | 12,341 |
| $ | 29,641 |
|
| | | | | | |
Preferred stock dividend requirements | — |
| — |
| — |
| 140 |
| 141 |
| 4,356 |
|
Total combined fixed charges and preferred stock dividends | $ | 1,801 |
| $ | 5,709 |
| $ | 9,098 |
| $ | 10,075 |
| $ | 12,482 |
| $ | 33,997 |
|
| | | | | | |
Ratio of earnings to fixed charges | * |
| * |
| * |
| 1.27 |
| 1.52 |
| * |
| | | | | | |
Ratio of earnings to combined fixed charges and preferred stock dividends | * |
| * |
| * |
| 1.25 |
| 1.51 |
| * |
On January 1, 2009, Merrill Lynch (the "Predecessor Company") was acquired by Bank of America through the merger of a wholly-owned subsidiary of Bank of America with and into ML & Co. with ML & Co. (the "Successor Company") continuing as the surviving corporation and a wholly-owned subsidiary of Bank of America. The Predecessor Company and Successor Company periods have been separated by a vertical line above to highlight the fact that the financial information for such periods has been prepared under two different cost bases of accounting.
(a) Excludes undistributed earnings (loss) from equity investments and earnings from discontinued operations.
(b) Other fixed charges consist of the interest factor in rentals, amortization of debt issuance costs and preferred
security dividend requirements of subsidiaries.
*The earnings for the three and nine months ended September 30, 2012 and for the years 2011 and 2008 were inadequate to cover total fixed charges and total fixed charges and preferred stock dividends.
The coverage deficiencies for total fixed charges for the three and nine months ended September 30, 2012 and for the years 2011 and 2008 were $1,018 million, $2,867 million, $5,446 million and $45,438 million, respectively.
The coverage deficiencies for total fixed charges and preferred stock dividends for the three and nine months ended September 30, 2012 and for the years 2011 and 2008 were $1,018 million, $2,867 million, $5,446 million and $49,794 million, respectively.