EX-12 10 dex12.htm STATEMENT RE: COMPUTATION OF RATIOS Statement Re: Computation of Ratios

Exhibit 12

UNITED TECHNOLOGIES CORPORATION

AND SUBSIDIARIES

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Full year  

(in millions of dollars)

   2008     2007     2006     2005     2004  

Fixed Charges:

          

Interest expense1

    $ 689     $ 666     $ 606     $ 498     $ 363  

Interest capitalized

     19       16       19       16       11  

One-third of rents2

      168       146       96       100       107  
                                        

Total fixed charges

   $ 876     $ 828     $ 721     $ 614     $ 481  
                                        

Earnings:

          

Income before income taxes and minority interests

   $ 6,936     $ 6,384     $ 5,492     $ 4,684     $ 3,938  

Fixed charges per above

     876       828       721       614       481  

Less: capitalized interest

     (19 )     (16 )     (19 )     (16 )     (11 )
                                        
     857       812       702       598       470  
                                        

Amortization of interest capitalized

     9       8       8       10       3  
                                        

Total earnings

   $ 7,802     $ 7,204     $ 6,202     $ 5,292     $ 4,411  
                                        

Ratio of earnings to fixed charges

     8.91       8.70       8.60       8.62       9.17  
                                        

 

1

Effective January 1, 2007, we adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” As disclosed in Note 9 to our Consolidated Financial Statements, interest related to unrecognized tax benefits was $39 million, $56 million, $38 million, and $25 million for the years 2008, 2007, 2006 and 2005, respectively. The ratio of earnings to fixed charges would have been 9.32, 9.33, 9.08, and 8.98 for the years 2008, 2007, 2006 and 2005, respectively, if such interest is excluded from the calculation.

 

2

Reasonable approximation of the interest factor.