EX-12 3 d427346dex12.htm COMPUTATION OF EARNINGS TO FIXED CHARGES Computation of Earnings to Fixed Charges

EXHIBIT 12.

Computation of Earnings to Fixed Charges

 

Ratio of Earnings to Fixed Charges:   Nine Months Ended
September 30,
2012		     Year Ended December 31,  
    2011     2010     2009     2008  
Dollars in Millions                              

Earnings

          

Earnings from continuing operations before income taxes

   $ 1,827     $ 6,981     $ 6,071     $ 5,602     $ 4,776  

Less:

          

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

     847       2,323       2,074       1,717       1,444  

Equity in net income of affiliates

     150       281       313       550       617  

Capitalized interest

     —        —        8       13       21  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted income

     830       4,377       3,676       3,322       2,694  

Add:

          

Fixed charges

     165       190       201       242       387  

Distributed income of equity investments

     183       283       313       550       590  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Earnings

   $ 1,178     $         4,850     $         4,190     $         4,114     $         3,671  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

          

Interest expense

   $ 131     $ 145     $ 145     $ 184     $ 310  

Capitalized interest

     —        —        8       13       21  

One-third of rental expense(1)

     34       45       48       45       56  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Charges

   $ 165     $ 190     $ 201     $ 242     $ 387  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges

     7.14       25.53       20.85       17.00       9.49  

 

(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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