EX-12 8 dex12.txt STMT. RE: COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 Morgan Stanley Dean Witter & Co. Ratio of Earnings to Fixed Charges and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends (dollars in millions)
Fiscal Year ------------------------------------------------------ 2000 1999 1998 1997 1996 ------- ------- ------- ------- ------- Ratio of Earnings to Fixed Charges Earnings: Income before income taxes(l) .......................................... $ 8,526 $ 7,728 $ 5,385 $ 4,274 $ 3,117 Add: Fixed charges, net ................................................ 18,334 12,626 13,564 10,898 9,026 ------- ------- ------- ------- ------- Income before income taxes and fixed charges, net ................ $26,860 $20,354 $18,949 $15,172 $12,143 ======= ======= ======= ======= ======= Fixed charges: Total interest expense ................................................. $18,183 $12,515 $13,464 $10,806 $ 8,934 Interest factor in rents ............................................... 156 111 100 92 92 ------- ------- ------- ------- ------- Total fixed charges .............................................. $18,339 $12,626 $13,564 $10,898 $ 9,026 ======= ======= ======= ======= ======= Ratio of earnings to fixed charges ....................................... 1.5 1.6 1.4 1.4 1.3 Ratio of Earnings to Fixed Charges and Preferred Stock Dividends Earnings: Income before income taxes(l) .......................................... $ 8,526 $ 7,728 $ 5,385 $ 4,274 $ 3,117 Add: Fixed charges, net ................................................ 18,334 12,626 13,564 10,898 9,026 ------- ------- ------- ------- ------- Income before income taxes and fixed charges, net ................ $26,860 $20,354 $18,949 $15,172 $12,143 ======= ======= ======= ======= ======= Fixed charges: Total interest expense ................................................. $18,183 $12,515 $13,464 $10,806 $ 8,934 Interest factor in rents ............................................... 156 111 100 92 92 Preferred stock dividends .............................................. 56 72 87 110 101 ------- ------- ------- ------- ------- Total fixed charges and preferred stock dividends ................ $18,395 $12,698 $13,651 $11,008 $ 9,127 ======= ======= ======= ======= ======= Ratio of earnings to fixed charges and preferred stock dividends ......... 1.5 1.6 1.4 1.4 1.3
----------- (1) 1998 Income before income taxes does not include a cumulative effect of accounting change. "Earnings" consist of income before income taxes and fixed charges. "Fixed charges" consist of interest costs, including interest on deposits, and that portion of rent expense estimated to be representative of the interest factor. The preferred stock dividend amounts represent pre-tax earnings required to cover dividends on preferred stock.