EX-12 5 c27369_ex12.txt Marsh & McLennan Companies, Inc. and Subsidiaries Exhibit 12 Ratio of Earnings to Fixed Charges (In millions, except ratios)
Years Ended December 31, ----------------------------------------------- 2002 2001 2000 1999(1) 1998 ----------------------------------------------- Earnings Income before income taxes and minority interest* $2,133 $1,590 $1,955 $1,255 $1,305 Interest expense 160 196 247 233 140 Portion of rents representative of the interest factor 135 122 121 104 88 Amortization of capitalized interest -- -- -- 1 1 ----------------------------------------------- $2,428 $1,908 $2,323 $1,593 $1,534 =============================================== Fixed Charges Interest expense $ 160 $ 196 $ 247 $ 233 $ 140 Portion of rents representative of the interest factor 135 122 121 104 88 ----------------------------------------------- $ 295 $ 318 $ 368 $ 337 $ 228 =============================================== Ratio of Earnings to Fixed Charges 8.2 6.0 6.3 4.7 6.7
* Minority interest has been reclassified in the prior years (1998-1999) to conform to the current year presentation. (1) For the year ended December 31, 1999, income before income taxes included a $337 million special charge related to the acquisition and integration of Sedgwick. Excluding that charge, the ratio of earnings to fixed charges would have been 5.5.