EX-12.1 2 y91657a2exv12w1.htm EX-12.1

exv12w1

Exhibit 12.1

Ratio of Earnings to Fixed Charges

We present below our ratio of earnings to fixed charges, which is computed by dividing earnings, which is the sum of profit (loss) before income taxes and fixed charges, by fixed charges. Fixed charges represent interest expense, amortization of debt issuance costs, and an appropriate portion of rentals representative of the interest factor.

		Year Ended December 31,
		2011				2010				2009				2008				2007
		(Dollars in millions)
Profit (Loss) Before Income Taxes		$	17,848			$	67,991			$	37,067				($36,566	)		$	127,394
Add Fixed Charges:
Interest Expense(1)			38,026				25,750				21,429				39,137				56,643
Amortization of Debt Issuance Costs			986				643				1,164				1,227				1,218
Appropriate Portion of Rentals Representative of the Interest Factor(2)			16,994				16,793				16,853				15,687				11,036
Total Fixed Charges			56,006				43,186				39,446				56,051				68,897
Earnings			73,854				111,177				76,513				19,485				196,291
Ratio of Earnings to Fixed Charges(3)			1.3				2.6				1.9				—				2.8

(1)		Includes interest expenses on short-term borrowings including bank call loans, securities lending, and repurchase agreements which generally have a corresponding asset that generates interest income that substantially offsets or exceeds the aforementioned interest expense.
(2)		The percent of rent included in the computation is a reasonable approximation of the interest factor.
(3)		Due to the Company’s pre-tax loss in the year ended December 31, 2008 the ratio coverage was less than 1:1 in this period. The Company would have needed to generate additional earnings of $36 million to achieve a coverage of 1:1.