EX-12 2 exhibit12ratioofearningsto.htm EXHIBIT 12 Exhibit 12 Ratio of Earnings to Fixed Charges 9-30-2013



EXHIBIT 12.

Computation of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges:
Nine Months Ended September 30, 2013
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
2009
Dollars in Millions
 
 
 
 
 
 
 
 
 
Earnings
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
$
2,022

 
$
2,340

 
$
6,981

 
$
6,071

 
$
5,602

Less:
 
 
 
 
 
 
 
 
 
Noncontrolling interest in pre-tax income of subsidiaries
 
 
 
 
 
 
 
 
 
that have not incurred fixed charges
19

 
844

 
2,323

 
2,074

 
1,717

Equity in net income of affiliates
128

 
183

 
281

 
313

 
550

Capitalized interest
—

 
—

 
—

 
8

 
13

Adjusted Income
1,875

 
1,313

 
4,377

 
3,676

 
3,322

Add:
 
 
 
 
 
 
 
 
 
Fixed charges
188

 
227

 
190

 
201

 
242

Distributed income of equity investments
103

 
229

 
283

 
313

 
550

Total Earnings
$
2,166

 
$
1,769

 
$
4,850

 
$
4,190

 
$
4,114

 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense
$
146

 
$
182

 
$
145

 
$
145

 
$
184

Capitalized interest
—

 
—

 
—

 
8

 
13

One-third of rental expense(1)
42

 
45

 
45

 
48

 
45

Total Fixed Charges
$
188

 
$
227

 
$
190

 
$
201

 
$
242

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
11.52

 
7.79

 
25.53

 
20.85

 
17.00


(1)    Rents included in the computation consist of one-third of rental expense which the Company believes to be a reasonable estimate of an interest factor in its leases.


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