EX-12.(B) 3 dex12b.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES Computation of Ratio of Earnings to Combined Fixed Charges

Exhibit 12(b)

General Electric Company

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

(Dollars in millions)   Six months
ended

June 30,
2010

(Unaudited)

General Electric Company and consolidated affiliates

 

Earnings(a)

  $ 6,760

Plus:

 

Interest and other financial charges included in expense(b)

    8,333

One-third of rental expense(c)

    286
     

Adjusted “earnings”

  $ 15,379
     

Fixed charges:

 

Interest and other financial charges included in expense(b)

  $ 8,333

Interest capitalized

    20

One-third of rental expense(c)

    286
     

Total fixed charges

  $ 8,639
     

Ratio of earnings to fixed charges

    1.78
     

Preferred stock dividend requirements

  $ 150

Ratio of earnings before provision for income taxes to earnings from continuing operations

    1.23

Preferred stock dividend factor on pre-tax basis

  $ 185

Fixed charges

    8,639
     

Total fixed charges and preferred stock dividend requirements

  $ 8,824
     

Ratio of earnings to combined fixed charges and preferred stock dividends

    1.74
     

 

 

 

(a) Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.
(b) Included interest on tax deficiencies.
(c) Considered to be representative of interest factor in rental expense.