EX-12 2 c99650exv12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                   
    Nine months ended
    September 30,
     
    2005   2004
 
    (Dollars are in
    millions)
Net income
   $ 1,379     $ 1,228  
Income tax expense
     695       619  
             
Income before income tax expense
     2,074       1,847  
             
Fixed charges:
                
 
Interest expense
     3,405       2,225  
 
Interest portion of rentals(1)
     45       39  
             
Total fixed charges
     3,450       2,264  
             
Total earnings as defined
   $ 5,524     $ 4,111  
             
Ratio of earnings to fixed charges
     1.60       1.82  
Preferred stock dividends(2)
     93       81  
Ratio of earnings to combined fixed charges and preferred stock dividends
     1.56       1.75  
 
(1)  Represents one-third of rentals, which approximates the portion representing interest.
 
(2)  Preferred stock dividends are grossed up to their pretax equivalents.