EX-12 4 dex12.htm STATEMENT RE COMPUTATION OF RATIOS Statement re computation of ratios

EXHIBIT 12.

Computation of Earnings to Fixed Charges

Five Year Ratio of Earnings to Fixed Charges:

 

Dollars in Millions    2008     2007     2006     2005     2004  

Earnings

           

Earnings from continuing operations before income taxes and minority interest

    $   5,471     $   3,186     $   2,085     $   4,016     $   3,911  

Less:

           

Equity in net income of affiliates

      617       524       474       334       273  
                                        

Income adjusted for equity income

      4,854       2,662       1,611       3,682       3,638  

Add:

           

Fixed charges

      393       504       566       408       369  

Distributed income of equity investments

      590       488       439       383       278  

Pre-tax losses of equity investees

      17       12       10       9       3  

Less:

           

Capitalized interest

      (23 )     (27 )     (18 )     (9 )     (10 )
                                        

Total Earnings

    $ 5,831     $ 3,639     $ 2,608     $ 4,473     $ 4,278  
                                        

Fixed Charges

           

Interest and debt expense

    $ 310     $ 422     $ 498     $ 349     $ 310  

Capitalized interest

      23       27       18       9       10  

One-third of rental expense (1)

      60       55       50       50       49  
                                        

Total Fixed Charges

    $ 393     $ 504     $ 566     $ 408     $ 369  
                                        

Ratio of Earnings to Fixed Charges

      14.84       7.22       4.61       10.96       11.59  

 

(1)

Rents included in the computation consist of one-third of rental expense which the Company believes to be a conservative estimate of an interest factor in its leases, which are not material.

 

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