EX-99.2 8 a07-19022_1ex99d2.htm EX-99.2

EXHIBIT 99.2

WASHINGTON MUTUAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

(dollars in millions)

 

Earnings, including interest on deposits(1):

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,240

 

$

1,148

 

$

2,479

 

$

2,682

 

Fixed charges

 

2,756

 

2,922

 

5,726

 

5,509

 

 

 

$

3,996

 

$

4,070

 

$

8,205

 

$

8,191

 

Preferred dividend requirement

 

$

8

 

$

–

 

$

15

 

$

–

 

Ratio of income from continuing operations before income taxes to income from continuing operations

 

1.49

 

1.51

 

1.54

 

1.55

 

Preferred dividends(2)

 

$

12

 

$

–

 

$

23

 

$

–

 

Fixed charges(1)(3):

 

 

 

 

 

 

 

 

 

Interest expense

 

$

2,714

 

$

2,875

 

$

5,641

 

$

5,416

 

Estimated interest component of net rental expense

 

42

 

47

 

85

 

93

 

 

 

2,756

 

2,922

 

5,726

 

5,509

 

Fixed charges and preferred dividends

 

$

2,768

 

$

2,922

 

$

5,749

 

$

5,509

 

Ratio of earnings to fixed charges and preferred dividends

 

1.44

 

1.39

 

1.43

 

1.49

 

Earnings, excluding interest on deposits(1):

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,240

 

$

1,148

 

$

2,479

 

$

2,682

 

Fixed charges

 

1,033

 

1,461

 

2,231

 

2,827

 

 

 

$

2,273

 

$

2,609

 

$

4,710

 

$

5,509

 

Preferred dividends(2)

 

$

12

 

$

–

 

$

23

 

$

–

 

Fixed charges(1)(3):

 

 

 

 

 

 

 

 

 

Interest expense

 

$

2,714

 

$

2,875

 

$

5,641

 

$

5,416

 

Less: interest on deposits

 

(1,723

)

(1,461

)

(3,495

)

(2,682

)

Estimated interest component of net rental expense

 

42

 

47

 

85

 

93

 

 

 

1,033

 

1,461

 

2,231

 

2,827

 

Fixed charges and preferred dividends

 

$

1,045

 

$

1,461

 

$

2,254

 

$

2,827

 

Ratio of earnings to fixed charges and preferred dividends

 

2.18

 

1.79

 

2.09

 

1.95

 

(1)                 As defined in Item 503(d) of Regulation S-K.

(2)                 The preferred dividends were increased to amounts representing the pretax earnings that would be required to cover such dividend requirements.

(3)                 Fixed charges exclude interest expense on uncertain tax positions which is included as a component of income taxes in the Consolidated Statements of Income.