EX-12 2 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement re: computation of ratio of earnings to fixed charges

Exhibit 12

UNITED TECHNOLOGIES CORPORATION

AND SUBSIDIARIES

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

(in millions of dollars)    Three Months Ended
March 31,		  
   2008     2007  

Fixed Charges:

     

Interest expense1

    $ 165     $ 150  

Interest capitalized

      5       4  

One-third of rents2

      33       26  
                

Total fixed charges

    $ 203     $ 180  
                

Earnings:

     

Income before income taxes and minority interests

    $ 1,509     $ 1,354  

Fixed charges per above

      203       180  

Less: interest capitalized

      (5 )     (4 )
                
     198       176  
                

Amortization of interest capitalized

      2       2  
                

Total earnings

    $ 1,709     $ 1,532  
                

Ratio of earnings to fixed charges

      8.42       8.51  
                

 

1

Effective January 1, 2007, we adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Interest related to unrecognized tax benefits was approximately $12 million and $20 million for the three months ended March 31, 2008 and 2007, respectively. The ratio of earnings to fixed charges would have been 8.95 and 9.58 for the three months ended March 31, 2008 and 2007, respectively, if such interest were excluded from the calculation.

2

Reasonable approximation of the interest factor.