EX-12 5 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  

(Dollars in millions)

   2010     2009     2008     2007     2006  

Fixed Charges:

          

Interest expense1 

    $ 750     $ 705     $ 689     $ 666     $ 606  

Interest capitalized

     17       18       19       16       19  

One-third of rents2 

      148       154       168       146       96  
                                        

Total fixed charges

   $ 915     $ 877     $ 876     $ 828     $ 721  
                                        

Earnings:

          

Income before income taxes

   $ 6,538     $ 5,760     $ 6,936     $ 6,384     $ 5,492  

Fixed charges per above

     915       877       876       828       721  

Less: capitalized interest

     (17 )      (18 )      (19 )      (16 )      (19 ) 
                                        
     898       859       857       812       702  
                                        

Amortization of interest capitalized

     17       17       9       8       8  
                                        

Total earnings

   $ 7,453     $ 6,636     $ 7,802     $ 7,204     $ 6,202  
                                        

Ratio of earnings to fixed charges

     8.15       7.57       8.91       8.70       8.60  
                                        

 

1

Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $27 million, $21 million, $39 million, $56 million and $38 million for the years 2010, 2009, 2008, 2007 and 2006, respectively. The ratio of earnings to fixed charges would have been 8.39, 7.75, 9.32, 9.33 and 9.08 for the years 2010, 2009, 2008, 2007 and 2006, respectively, if such interest were excluded from the calculation.

2

Reasonable approximation of the interest factor.