EX-12 2 exhibit12ratioofearningsto.htm EXHIBIT 12 Exhibit 12 Ratio of Earnings to Fixed Charges 3-31-2014


EXHIBIT 12.

Computation of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges:
Three Months Ended March 31, 2014
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
Dollars in Millions
 
 
 
 
 
 
 
 
 
Earnings
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
$
985

 
$
2,891

 
$
2,340

 
$
6,981

 
$
6,071

Less:
 
 
 
 
 
 
 
 
 
Noncontrolling interest in pre-tax income of subsidiaries
 
 
 
 
 
 
 
 
 
that have not incurred fixed charges
4

 
36

 
844

 
2,323

 
2,074

Equity in net income of affiliates
36

 
166

 
183

 
281

 
313

Capitalized interest
—

 
—

 
—

 
—

 
8

Adjusted Income
945

 
2,689

 
1,313

 
4,377

 
3,676

Add:
 
 
 
 
 
 
 
 
 
Fixed charges
66

 
255

 
227

 
190

 
201

Distributed income of equity investments
—

 
149

 
229

 
283

 
313

Total Earnings
$
1,011

 
$
3,093

 
$
1,769

 
$
4,850

 
$
4,190

 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense
$
54

 
$
199

 
$
182

 
$
145

 
$
145

Capitalized interest
—

 
—

 
—

 
—

 
8

One-third of rental expense(1)
12

 
56

 
45

 
45

 
48

Total Fixed Charges
$
66

 
$
255

 
$
227

 
$
190

 
$
201

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
15.32

 
12.13

 
7.79

 
25.53

 
20.85


(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.