SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 1997
Merrill Lynch & Co., Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 1-7182 13-2740599
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(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
World Financial Center, North Tower, New York, New York 10281-1332
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 449-1000
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(Former Name or Former Address, if Changed Since Last Report.)
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Item 5. Other Events
Filed herewith is the Preliminary Unaudited Consolidated Balance Sheet as of
September 26, 1997 for Merrill Lynch & Co., Inc. and subsidiaries ("Merrill
Lynch"). Also filed herewith is a statement setting forth the computation of
certain Merrill Lynch financial ratios for the periods presented.
Merrill Lynch repurchased .4 and 13.6 million shares of its common stock for the
1997 three- and nine-month periods, respectively, and 9.1 and 30.3 million
shares for the corresponding 1996 periods.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
(12) Computation of Ratios of Earnings to Fixed Charges and
Combined Fixed Charges and Preferred Stock Dividends
(99) Additional Exhibits
(i) Preliminary Unaudited Consolidated Balance Sheet of
Merrill Lynch as of September 26, 1997
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MERRILL LYNCH & CO., INC.
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(Registrant)
By: /s/ Joseph T. Willett
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Joseph T. Willett
Senior Vice President,
Chief Financial Officer
Date: October 29, 1997
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EXHIBIT INDEX
Exhibit No. Description Page
----------- ----------- ----
(12) Computation of Ratios of Earnings to Fixed Charges and 5
Combined Fixed Charges and Preferred Stock Dividends
(99) Additional Exhibits
(i) Preliminary Unaudited Consolidated Balance Sheet of 6
Merrill Lynch as of September 26, 1997
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EXHIBIT 12
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in Millions)
Three Months Ended Nine Months Ended
-------------------- --------------------
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
1997 1996 1997 1996
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Pretax earnings from
continuing operations $ 771 $ 522 $ 2,322 $ 1,891
Add: Fixed charges (excluding
capitalized interest) 4,209 3,144 11,980 8,786
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Pretax earnings before fixed charges $4,980 $3,666 $14,302 $10,677
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Fixed charges:
Interest $4,147 $3,104 $11,793 $ 8,669
Other(A) 63 40 188 117
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Total fixed charges 4,210 3,144 11,981 8,786
Preferred stock dividend
requirements 14 18 47 56
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Total combined fixed charges and
preferred stock dividends $4,224 $3,162 $12,028 $ 8,842
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Ratio of earnings to fixed charges 1.18 1.17 1.19 1.22
Ratio of earnings to combined
fixed charges and preferred
stock dividends 1.18 1.16 1.19 1.21
(A) Other fixed charges consist of the interest factor in rentals,
amortization of debt expense, preferred stock dividend requirements of
majority-owned subsidiaries, and capitalized interest.
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(Dollars in Millions, Except Per Share Amounts)
Sept. 26,
ASSETS 1997
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Cash and cash equivalents ......................................... $ 4,559
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Cash and securities segregated for regulatory purposes
or deposited with clearing organizations ......................... 10,606
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Marketable investment securities .................................. 2,342
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Trading assets, at fair value
Corporate debt and preferred stock ................................ 35,440
Contractual agreements ............................................ 17,004
Equities and convertible debentures ............................... 24,974
U.S. Government and agencies ...................................... 9,378
Non-U.S. governments and agencies ................................. 12,744
Mortgages, mortgage-backed, and asset-backed ...................... 8,038
Money markets ..................................................... 1,474
Municipals ........................................................ 1,451
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Total ............................................................. 110,503
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Resale agreements ................................................. 68,559
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Securities borrowed ............................................... 36,252
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Receivables
Customers (net of allowance for doubtful accounts of $55) ......... 25,263
Brokers and dealers ............................................... 7,404
Interest and other ................................................ 7,783
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Total ............................................................. 40,450
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Investments of insurance subsidiaries ............................. 4,962
Loans, notes, and mortgages (net of allowance for
loan losses of $124) ............................................. 4,454
Other investments ................................................. 1,600
Property, leasehold improvements, and equipment (net of
accumulated depreciation and amortization of $2,805) ............. 1,939
Other assets ...................................................... 2,204
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Total Assets ...................................................... $288,430
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(Dollars in Millions, Except Per Share Amounts)
LIABILITIES, PREFERRED SECURITIES ISSUED BY Sept. 26,
SUBSIDIARIES, AND STOCKHOLDERS' EQUITY 1997
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LIABILITIES
Repurchase agreements ........................................... $ 74,872
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Commercial paper and other short-term borrowings ................ 58,240
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Trading liabilities, at fair value
U.S. Government and agencies .................................... 15,694
Contractual agreements .......................................... 13,815
Equities and convertible debentures ............................. 17,724
Non-U.S. governments and agencies ............................... 9,362
Corporate debt and preferred stock .............................. 6,675
Municipals ...................................................... 129
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Total ........................................................... 63,399
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Customers ....................................................... 14,818
Insurance ....................................................... 4,807
Brokers and dealers ............................................. 6,375
Other liabilities and accrued interest .......................... 17,497
Long-term borrowings ............................................ 39,998
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Total Liabilities ............................................... 280,006
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PREFERRED SECURITIES ISSUED BY SUBSIDIARIES ..................... 627
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STOCKHOLDERS' EQUITY
Preferred Stockholders' Equity .................................. 425
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Common Stockholders' Equity
Common stock, par value $1.33 1/3 per share;
authorized: 500,000,000 shares; issued: 472,660,324
shares ........................................................ 630
Paid-in capital ................................................. 1,031
Foreign currency translation adjustment ......................... (39)
Net unrealized gains on investment securities
available-for-sale (net of applicable income tax
expense of $19) ............................................... 37
Retained earnings ............................................... 9,095
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Subtotal .................................................... 10,754
Less:
Treasury stock, at cost: 140,308,114 shares ................... 2,932
Employee stock transactions ................................... 450
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Total Common Stockholders' Equity ............................... 7,372
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Total Stockholders' Equity ...................................... 7,797
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Total Liabilities, Preferred Securities Issued by
Subsidiaries, and Stockholders' Equity ........................ $ 288,430
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