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

 

     Quarter Ended March 31,  

(Dollars in millions)

   2011     2010  

Fixed Charges:

    

Interest expense1 

    $ 166     $ 186  

Interest capitalized

     5       4  

One-third of rents2 

      39       37  
                

Total fixed charges

   $ 210     $ 227  
                

Earnings:

    

Income before income taxes

   $ 1,630     $ 1,352  
                

Fixed charges per above

     210       227  

Less: capitalized interest

      (5 )      (4 ) 
                
     205       223  
                

Amortization of interest capitalized

     4       4  
                

Total earnings

   $ 1,839     $ 1,579  
                

Ratio of earnings to fixed charges

     8.76       6.96  
                

 

1 

Pursuant to the guidance in the Income Taxes Topic of the FASB ASC, interest related to unrecognized tax benefits recorded was approximately $4 million and $10 million for the quarters ended March 31, 2011 and 2010, respectively. The ratio of earnings to fixed charges would have been 8.93 and 7.28 for the quarters ended March 31, 2011 and 2010, respectively, if such interest were excluded from the calculation.

2 

Reasonable approximation of the interest factor.