EX-12 4 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

 

      Nine Months Ended September 30,  

(in millions)

   2010     2009  

Fixed Charges:

    

Interest expense1 

    $ 560     $ 522  

Interest capitalized

     13       14  

One-third of rents2 

      111       111  
                

Total fixed charges

   $ 684     $ 647  
                

Earnings:

    

Income before income taxes

   $ 4,852     $ 4,136  
                

Fixed charges per above

     684       647  

Less: capitalized interest

     (13 )      (14 ) 
                
     671       633  
                

Amortization of interest capitalized

     13       12  
                

Total earnings

   $ 5,536     $ 4,781  
                

Ratio of earnings to fixed charges

     8.09       7.39  
                

 

1

Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $20 million and $15 million for the nine months ended September 30, 2010 and 2009, respectively. The ratio of earnings to fixed charges would have been 8.34 and 7.56 for the nine months ended September 30, 2010 and 2009, respectively, if such interest were excluded from the calculation.

 

2

Reasonable approximation of the interest factor.