EX-99.2 7 a07-11013_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
March 31,

 

 

 

2007

 

2006

 

 

 

(dollars in millions)

 

Earnings, including interest on deposits(1):

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,240

 

$

1,535

 

Fixed charges

 

2,970

 

2,586

 

 

 

$

4,210

 

$

4,121

 

Preferred dividend requirement

 

$

7

 

$

–

 

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

 

1.58

 

1.57

 

Preferred dividends(2)

 

$

12

 

$

–

 

Fixed charges(1)(3):

 

 

 

 

 

Interest expense

 

$

2,927

 

$

2,540

 

Estimated interest component of net rental expense

 

43

 

46

 

 

2,970

 

2,586

 

Fixed charges and preferred dividends

 

$

2,982

 

$

2,586

 

Ratio of earnings to fixed charges and preferred dividends

 

1.41

 

1.59

 

Earnings, excluding interest on deposits(1):

 

 

 

 

 

Income from continuing operations before income taxes

 

$

1,240

 

$

1,535

 

Fixed charges

 

1,198

 

1,365

 

 

$

2,438

 

$

2,900

 

Preferred dividends(2)

 

$

12

 

$

–

 

Fixed charges(1)(3):

 

 

 

 

 

Interest expense

 

$

2,927

 

$

2,540

 

Less: interest on deposits

 

(1,772

)

(1,221

)

Estimated interest component of net rental expense

 

43

 

46

 

 

1,198

 

1,365

 

Fixed charges and preferred dividends

 

$

1,210

 

$

1,365

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred dividends

 

2.01

 

2.12

 

 

 

 

 

 

 

(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.