EX-12.1 2 a2049725zex-12_1.txt EXHIBIT 12.1 Exhibit 12.1 Marsh & McLennan Companies, Inc. and Subsidiaries Ratio of Earnings to Fixed Charges (In millions, except ratios)
Three Months Years Ended Ended December 31, March 31, ---------------------- 2001 2000 1999(1) ---- ---- ------ (Unaudited) Earnings -------- Income before income taxes and minority interest $ 598 $1,955 $1,255 Interest expense 52 247 233 Portion of rents representative of the interest factor 28 120 121 Amortization of capitalized interest -- -- 1 ------ ------ ------ $ 678 $2,322 $1,610 ====== ====== ====== Fixed Charges ------------- Interest expense $ 52 $ 247 $ 233 Portion of rents representative of the interest factor 28 120 121 ------ ------ ------ $ 80 $ 367 $ 354 ====== ====== ====== Ratio of Earnings to Fixed Charges 8.5 6.3 4.5 Years Ended December 31, 1998 1997(2) 1996 --------------------------------- Earnings -------- Income before income taxes and minority interest $1,305 $ 715 $ 668 Interest expense 140 107 61 Portion of rents representative of the interest factor 104 88 72 Amortization of capitalized interest 1 1 1 ------ ------ ------ $1,550 $ 911 $ 802 ====== ====== ====== Fixed Charges ------------- Interest expense $ 140 $ 107 $ 61 Portion of rents representative of the interest factor 104 88 72 ------ ------ ------ $ 244 $ 195 $ 133 ====== ====== ====== Ratio of Earnings to Fixed Charges 6.4 4.7 6.0
(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. (2) For the year ended December 31, 1997, income before income taxes included a $244 million special charge related to the Johnson & Higgins integration, London real estate and the disposal of certain assets. Excluding that charge, the ratio of earnings to fixed charges would have been 5.9. 22