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)
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED ENDED
----------------------------- -----------------------------
SEPTEMBER 24, SEPTEMBER 25, SEPTEMBER 24, SEPTEMBER 25,
1999 1998 1999 1998
------------- ------------- ------------- -------------
Pre-tax earnings (loss)from continuing operations $ 891 $ (205) $ 2,918 $ 1,577
Add: Fixed charges (excluding
capitalized interest and preferred security
dividend requirements of subsidiaries) 3,197 4,553 9,792 13,411
------- ------- ------- -------
Pre-tax earnings before fixed charges 4,088 4,348 12,710 14,988
======= ======= ======= =======
Fixed charges:
Interest 3,138 4,493 9,612 13,247
Other (a) 110 94 332 249
------- ------- ------- -------
Total fixed charges 3,248 4,587 9,944 13,496
======= ======= ======= =======
Preferred stock dividend requirements 14 15 41 46
------- ------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 3,262 $ 4,602 $ 9,985 $13,542
======= ======= ======= =======
Ratio of earnings to fixed charges (b) 1.26 0.95 1.28 1.11
Ratio of earnings to combined fixed charges
and preferred stock dividends (b) 1.25 0.94 1.27 1.11
(a) Other fixed charges consist of the interest factor in rentals, amortization
of debt issuance costs, preferred security dividend requirements of
subsidiaries, and capitalized interest.
(b) The ratio calculations indicate a less than one-to-one coverage for the
three months ended September 25, 1998. Pre-tax loss from continuing
operations for the three months ended September 25, 1998 is inadequate to
cover the fixed charges. The deficient amounts for the respective ratios
are $239 and $254.
Note: Certain prior period amounts have been restated to conform to the current
period presentation.
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(dollars in millions)
SEPTEMBER 24,
ASSETS 1999
- ----------------------------------------------------------------------------- -------------
CASH AND CASH EQUIVALENTS.................................................... $ 12,014
---------
CASH AND SECURITIES SEGREGATED FOR REGULATORY PURPOSES
OR DEPOSITED WITH CLEARING ORGANIZATIONS.................................... 5,034
---------
RECEIVABLES UNDER RESALE AGREEMENTS AND SECURITIES BORROWED TRANSACTIONS..... 95,703
---------
MARKETABLE INVESTMENT SECURITIES............................................. 6,436
---------
TRADING ASSETS, AT FAIR VALUE
Equities and convertible debentures.......................................... 20,859
Contractual agreements....................................................... 21,260
Corporate debt and preferred stock........................................... 22,429
U.S. Government and agencies................................................. 10,624
Non-U.S. governments and agencies............................................ 6,505
Mortgages, mortgage-backed, and asset-backed................................. 6,980
Other........................................................................ 3,171
---------
91,828
Securities received as collateral, net of securities pledged as collateral... 9,581
---------
Total........................................................................ 101,409
---------
SECURITIES PLEDGED AS COLLATERAL............................................. 13,652
---------
OTHER RECEIVABLES
Customers (net of allowance for doubtful accounts of $49).................... 34,276
Brokers and dealers.......................................................... 10,181
Interest and other........................................................... 8,078
---------
Total........................................................................ 52,535
---------
INVESTMENTS OF INSURANCE SUBSIDIARIES........................................ 4,255
LOANS, NOTES, AND MORTGAGES (net of allowance for loan losses of $144)....... 9,018
OTHER INVESTMENTS............................................................ 2,966
EQUIPMENT AND FACILITIES (net of accumulated depreciation and
amortization of $3,909)..................................................... 3,007
GOODWILL (net of accumulated amortization of $494)........................... 5,081
OTHER ASSETS................................................................. 1,826
---------
TOTAL ASSETS................................................................. $ 312,936
=========
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(dollars in millions, except per share amount)
SEPTEMBER 24,
LIABILITIES 1999
- ----------------------------------------------------------------------------- -------------
PAYABLES UNDER REPURCHASE AGREEMENTS AND SECURITIES
LOANED TRANSACTIONS......................................................... $ 69,724
---------
COMMERCIAL PAPER AND OTHER SHORT-TERM BORROWINGS............................. 13,680
---------
DEMAND AND TIME DEPOSITS..................................................... 16,852
---------
TRADING LIABILITIES, AT FAIR VALUE
Contractual agreements....................................................... 26,284
Equities and convertible debentures.......................................... 14,585
U.S. Government and agencies................................................. 14,377
Non-U.S. governments and agencies............................................ 6,419
Corporate debt and preferred stock........................................... 5,207
Other........................................................................ 250
---------
Total ..................................................................... 67,122
---------
OBLIGATION TO RETURN SECURITIES RECEIVED AS COLLATERAL....................... 23,233
---------
OTHER PAYABLES
Customers.................................................................... 19,080
Brokers and dealers.......................................................... 10,632
Interest and other........................................................... 18,230
---------
Total...................................................................... 47,942
---------
LIABILITIES OF INSURANCE SUBSIDIARIES........................................ 4,160
LONG-TERM BORROWINGS......................................................... 55,400
---------
TOTAL LIABILITIES............................................................ 298,113
---------
PREFERRED SECURITIES ISSUED BY SUBSIDIARIES.................................. 2,723
---------
STOCKHOLDERS' EQUITY
PREFERRED STOCKHOLDERS' EQUITY............................................... 425
---------
COMMON STOCKHOLDERS' EQUITY
Shares exchangeable into common stock........................................ 59
Common stock, par value $1.33 1/3 per share;
authorized: 1,000,000,000 shares;
issued: 472,661,774 shares.................................................. 630
Paid-in capital.............................................................. 1,763
Accumulated other comprehensive loss (net of tax)............................ (303)
Retained earnings............................................................ 12,010
---------
14,159
Less: Treasury stock, at cost: 106,662,270 shares............................ 1,856
Employee stock transactions............................................ 628
---------
TOTAL COMMON STOCKHOLDERS' EQUITY............................................ 11,675
---------
TOTAL STOCKHOLDERS' EQUITY................................................... 12,100
---------
TOTAL LIABILITIES, PREFERRED SECURITIES ISSUED BY
SUBSIDIARIES, AND STOCKHOLDERS' EQUITY...................................... $ 312,936
=========
7