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

 

      Six Months Ended June 30,  

(in millions)

   2010     2009  

Fixed Charges:

    

Interest expense1 

    $ 378     $ 352  

Interest capitalized

     9       10  

One-third of rents2 

      72       69  
                

Total fixed charges

   $ 459     $ 431  
                

Earnings:

    

Income before income taxes

   $ 3,085     $ 2,535  
                

Fixed charges per above

     459       431  

Less: capitalized interest

     (9 )      (10 ) 
                
     450       421  
                

Amortization of interest capitalized

     8       5  
                

Total earnings

   $ 3,543     $ 2,961  
                

Ratio of earnings to fixed charges

     7.72       6.87  
                

 

1

Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $15 million and $11 million for the six months ended June 30, 2010 and 2009, respectively. The ratio of earnings to fixed charges would have been 7.98 and 7.05 for the six months ended June 30, 2010 and 2009, respectively, if such interest were excluded from the calculation.

2

Reasonable approximation of the interest factor.