EX-12 2 c94956exv12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS exv12
 

EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                   
    Three months ended
    March 31,
     
    2005   2004
 
    (dollars are in
    millions)
Net income
   $ 626     $ 470  
Income tax expense
     341       235  
             
Income before income tax expense
     967       705  
             
Fixed charges:
                
 
Interest expense
     1,062       708  
 
Interest portion of rentals(1)
     15       14  
             
Total fixed charges
     1,077       722  
             
Total earnings as defined
   $ 2,044     $ 1,427  
             
Ratio of earnings to fixed charges
     1.90       1.98  
Preferred stock dividends(2)
     28       27  
Ratio of earnings to combined fixed charges and preferred stock dividends
     1.85       1.91  
 
(1)  Represents one-third of rentals, which approximates the portion representing interest.
 
(2)  Preferred stock dividends are grossed up to their pretax equivalents.