EX-12 9 dex12.htm STATEMENT OF RATIOS OF EARNINGS TO FIXED CHARGES Statement of Ratios of Earnings to Fixed Charges

EXHIBIT 12

STATE STREET CORPORATION

Ratios of Earnings to Combined Fixed Charges and Preferred Dividends

 

        Years Ended December 31,
(Dollars in millions)       2009   2008   2007   2006   2005

EXCLUDING INTEREST ON DEPOSITS:

            

Pre-tax income from continuing operations, as reported

     $ 2,525   $ 2,842   $ 1,903   $ 1,771   $ 1,432

Share of pre-tax income of unconsolidated subsidiaries

       43     34     65     43     16

Fixed charges

       612     983     1,248     1,384     948
                               

Adjusted earnings

   (A)   $ 3,180   $ 3,859   $ 3,216   $ 3,198   $ 2,396
                               

Interest on other short-term borrowings

     $ 223   $ 674   $ 959   $ 1,145   $ 753

Interest on long-term debt, including amortization of debt issuance costs

       251     187     189     140     100

Portion of long-term leases representative of the interest factor(1)

       138     122     100     99     95

Preferred stock dividends and related adjustments(2)

       226     34     —       —       —  
                               

Fixed charges and preferred stock dividends

   (B)   $ 838   $ 1,017   $ 1,248   $ 1,384   $ 948
                               

Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, excluding interest on deposits

   (A)/(B)     3.79 x     3.79 x     2.58 x     2.31 x     2.53 x
                               

INCLUDING INTEREST ON DEPOSITS:

            

Pre-tax income from continuing operations, as reported

     $ 2,525   $ 2,842   $ 1,903   $ 1,771   $ 1,432

Share of pre-tax income of unconsolidated subsidiaries

       43     34     65     43     16

Fixed charges

       807     2,309     3,546     3,275     2,080
                               

Adjusted earnings

   (C)   $ 3,375   $ 5,185   $ 5,514   $ 5,089   $ 3,528
                               

Interest on other short-term borrowings and deposits

     $ 418   $ 2,000   $ 3,257   $ 3,036   $ 1,885

Interest on long-term debt, including amortization of debt issuance costs

       251     187     189     140     100

Portion of long-term leases representative of the interest factor(1)

       138     122     100     99     95

Preferred stock dividends and related adjustments

       226     34     —       —       —  
                               

Fixed charges and preferred stock dividends

   (D)   $ 1,033   $ 2,343   $ 3,546   $ 3,275   $ 2,080
                               

Consolidated ratios of adjusted earnings to combined fixed charges and preferred stock dividends, including interest on deposits

   (C)/(D)     3.27 x     2.21 x     1.55 x     1.55 x     1.70 x
                               

 

(1)

The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in the consolidated statement of income.

 

(2)

Preferred dividends, including accretion, were adjusted to represent pre-tax earnings that would be required to cover dividend and accretion requirements.

Ratios of Earnings to Fixed Charges

 

        Years Ended December 31,
(Dollars in millions)       2009   2008   2007   2006   2005

EXCLUDING INTEREST ON DEPOSITS:

            

Pre-tax income from continuing operations, as reported

     $ 2,525   $ 2,842   $ 1,903   $ 1,771   $ 1,432

Share of pre-tax income of unconsolidated subsidiaries

       43     34     65     43     16

Fixed charges

       612     983     1,248     1,384     948
                               

Adjusted earnings

   (A)   $ 3,180   $ 3,859   $ 3,216   $ 3,198   $ 2,396
                               

Interest on other short-term borrowings

     $ 223   $ 674   $ 959   $ 1,145   $ 753

Interest on long-term debt, including amortization of debt issuance costs

       251     187     189     140     100

Portion of long-term leases representative of the interest factor(1)

       138     122     100     99     95
                               

Fixed charges

   (B)   $ 612   $ 983   $ 1,248   $ 1,384   $ 948
                               

Consolidated ratios of adjusted earnings to fixed charges, excluding interest on deposits

   (A)/(B)     5.20 x     3.93 x     2.58 x     2.31 x     2.53 x
                               

INCLUDING INTEREST ON DEPOSITS:

            

Pre-tax income from continuing operations, as reported

     $ 2,525   $ 2,842   $ 1,903   $ 1,771   $ 1,432

Share of pre-tax income of unconsolidated subsidiaries

       43     34     65     43     16

Fixed charges

       807     2,309     3,546     3,275     2,080
                               

Adjusted earnings

   (C)   $ 3,375   $ 5,185   $ 5,514   $ 5,089   $ 3,528
                               

Interest on other short-term borrowings and deposits

     $ 418   $ 2,000   $ 3,257   $ 3,036   $ 1,885

Interest on long-term debt, including amortization of debt issuance costs

       251     187     189     140     100

Portion of long-term leases representative of the interest factor(1)

       138     122     100     99     95
                               

Fixed charges

   (D)   $ 807   $ 2,309   $ 3,546   $ 3,275   $ 2,080
                               

Consolidated ratios of adjusted earnings to fixed charges, including interest on deposits

   (C)/(D)     4.18 x     2.25 x     1.55 x     1.55 x     1.70 x
                               

 

(1)

The interest factor on long-term operating leases represented a reasonable approximation of the appropriate portion of operating lease expense considered to be representative of interest. The interest factor on long-term capital leases represented the amount recorded as interest expense in the consolidated statement of income.