EX-12 3 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

 

     Six Months Ended
June 30,		  
(in millions of dollars)    2008     2007  

Fixed Charges:

     

Interest expense1

    $ 341     $ 313  

Interest capitalized

      10       8  

One-third of rents2

      67       54  
                

Total fixed charges

    $ 418     $ 375  
                

Earnings:

     

Income before income taxes and minority interests

    $ 3,432     $ 3,056  

Fixed charges per above

      418       375  

Less: interest capitalized

      (10 )     (8 )
                
     408       367  
                

Amortization of interest capitalized

      5       4  
                

Total earnings

    $ 3,845     $ 3,427  
                

Ratio of earnings to fixed charges

      9.20       9.14  
                

 

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 $11 million for the six months ended June 30, 2008 and 2007, respectively. The ratio of earnings to fixed charges would have been 9.45 and 9.41 for the six months ended June 30, 2008 and 2007, respectively, if such interest were excluded from the calculation.

2

Reasonable approximation of the interest factor.