EX-12 6 exhibit12fixedcharges20161.htm EXHIBIT 12 Exhibit


EXHIBIT 12.

Computation of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges:
Year Ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
Dollars in Millions
 
 
 
 
 
 
 
 
 
Earnings
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
$
5,915

 
$
2,077

 
$
2,381

 
$
2,891

 
$
2,340

Less:
 
 
 
 
 
 
 
 
 
Noncontrolling interest in pre-tax income of subsidiaries
 
 
 
 
 
 
 
 
 
that have not incurred fixed charges
16

 
51

 
38

 
36

 
844

Equity in net income of affiliates
77

 
83

 
107

 
166

 
183

Capitalized interest
10

 
2

 
3

 
—

 
—

Adjusted Income
5,812

 
1,941

 
2,233

 
2,689

 
1,313

Add:
 
 
 
 
 
 
 
 
 
Fixed charges
226

 
231

 
254

 
255

 
227

Distributed income of equity investments
99

 
105

 
153

 
149

 
229

Total Earnings
$
6,137

 
$
2,277

 
$
2,640

 
$
3,093

 
$
1,769

 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
Interest expense
$
167

 
$
184

 
$
203

 
$
199

 
$
182

Capitalized interest
10

 
2

 
3

 
—

 
—

One-third of rental expense(1)
49

 
45

 
48

 
56

 
45

Total Fixed Charges
$
226

 
$
231

 
$
254

 
$
255

 
$
227

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
27.15

 
9.86

 
10.39

 
12.13

 
7.79


(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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