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): April 29, 1998
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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
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Filed herewith is the Preliminary Unaudited Consolidated Balance Sheet as of
March 27, 1998 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.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
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(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 March 27, 1998
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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/ E. Stanley O'Neal
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E. Stanley O'Neal
Executive Vice President and
Chief Financial Officer
Date: April 29, 1998
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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 March 27, 1998
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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
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MARCH 27, MARCH 28,
1998 1997
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Pretax earnings from
continuing operations $ 874 $ 766
Add: Fixed charge 4,642 3,672
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Pretax earnings before fixed charges $5,516 $4,438
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Fixed charges:
Interest $4,559 $3,608
Other(A) 83 64
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Total fixed charges 4,642 3,672
Preferred stock dividend
requirements 16 17
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Total combined fixed charges and
preferred stock dividends $4,658 $3,689
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Ratio of earnings to fixed charges 1.19 1.21
Ratio of earnings to combined
fixed charges and preferred
stock dividends 1.18 1.20
(A) Other fixed charges consist of the interest factor in rentals,
amortization of debt expense, and preferred stock dividend requirements of
majority-owned subsidiaries.
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(Dollars in Millions, Except Per Share Amount)
MARCH 27,
ASSETS 1998
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CASH AND CASH EQUIVALENTS.............................. $ 5,400
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CASH AND SECURITIES SEGREGATED FOR REGULATORY PURPOSES
OR DEPOSITED WITH CLEARING ORGANIZATIONS.............. 10,502
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MARKETABLE INVESTMENT SECURITIES....................... 3,131
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TRADING ASSETS, AT FAIR VALUE
Corporate debt and preferred stock..................... 33,732
Equities and convertible debentures.................... 30,691
Contractual agreements................................. 22,527
U.S. Government and agencies........................... 11,295
Non-U.S. governments and agencies...................... 10,608
Mortgages, mortgage-backed, and asset-backed........... 9,463
Other.................................................. 2,990
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121,306
Securities received as collateral, net of securities...
pledged as collateral................................. 12,490
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Total trading assets................................... 133,796
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SECURITIES PLEDGED AS COLLATERAL....................... 16,452
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RECEIVABLES UNDER RESALE AGREEMENTS.................... 73,815
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RECEIVABLES UNDER SECURITIES BORROWED TRANSACTIONS..... 45,070
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OTHER RECEIVABLES
Customers (net of allowance for doubtful accounts
of $49)............................................... 29,140
Brokers and dealers.................................... 5,866
Interest and other..................................... 8,622
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Total.................................................. 43,628
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INVESTMENTS OF INSURANCE SUBSIDIARIES.................. 4,714
LOANS, NOTES, AND MORTGAGES (net of allowance for
loan losses of $132).................................. 5,635
OTHER INVESTMENTS...................................... 2,132
PROPERTY, LEASEHOLD IMPROVEMENTS, AND EQUIPMENT
(net of accumulated depreciation and amortization
of $3,028)............................................ 2,215
GOODWILL (net of accumulated amortization of $180)..... 5,412
OTHER ASSETS........................................... 1,522
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TOTAL ASSETS........................................... $353,424
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EXHIBIT 99(i)
MERRILL LYNCH & CO., INC. AND SUBSIDIARIES
PRELIMINARY UNAUDITED CONSOLIDATED BALANCE SHEET
(Dollars in Millions, Except Per Share Amount)
LIABILITIES, PREFERRED SECURITIES ISSUED BY MARCH 27,
SUBSIDIARIES, AND STOCKHOLDERS' EQUITY 1998
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LIABILITIES
PAYABLES UNDER REPURCHASE AGREEMENTS AND SECURITIES
LOANED TRANSACTIONS................................. $ 95,296
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COMMERCIAL PAPER AND OTHER SHORT-TERM BORROWINGS..... 49,867
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TRADING LIABILITIES, AT FAIR VALUE
Contractual agreements............................... 19,502
U.S. Government and agencies......................... 15,350
Equities and convertible debentures.................. 21,337
Non-U.S. governments and agencies.................... 10,080
Corporate debt, preferred stock, and other........... 5,634
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Total................................................ 71,903
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OBLIGATION TO RETURN SECURITIES RECEIVED AS
COLLATERAL ......................................... 28,942
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OTHER PAYABLES
Customers............................................ 17,390
Brokers and dealers.................................. 8,551
Interest and other................................... 18,971
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Total................................................ 44,912
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LIABILITIES OF INSURANCE SUBSIDIARIES................ 4,594
LONG-TERM BORROWINGS................................. 47,532
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TOTAL LIABILITIES.................................... 343,046
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PREFERRED SECURITIES ISSUED BY SUBSIDIARIES.......... 1,377
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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...................................... 1,360
Accumulated other comprehensive income (net of tax).. (25)
Retained earnings.................................... 9,925
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11,890
Less:
Treasury stock, at cost: 127,929,023 shares........ 2,452
Employee stock transactions........................ 862
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TOTAL COMMON STOCKHOLDERS' EQUITY.................... 8,576
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TOTAL STOCKHOLDERS' EQUITY........................... 9,001
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TOTAL LIABILITIES, PREFERRED SECURITIES ISSUED BY
SUBSIDIARIES, AND STOCKHOLDERS' EQUITY............. $353,424
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