EX-12.(B) 3 dex12b.htm COMPUTATION RATIO EARNINGS TO COMBINED FIXED CHARGES & PREFERRED STOCK DIVIDENDS Computation Ratio Earnings to Combined Fixed Charges & Preferred Stock Dividends

 

Exhibit 12(b)

General Electric Company

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

 

(Dollars in millions)    Nine months
ended
September 30,
2010

(Unaudited)
 

General Electric Company and consolidated affiliates

  

Earnings(a)

   $ 10,529  

Plus:

  

Interest and other financial charges included in expense(b)

     12,371  

One-third of rental expense(c)

     421  
        

Adjusted “earnings”

   $ 23,321  
        

Fixed charges:

  

Interest and other financial charges included in expense(b)

   $ 12,371  

Interest capitalized

     31  

One-third of rental expense(c)

     421  
        

Total fixed charges

   $ 12,823  
        

Ratio of earnings to fixed charges

     1.82  
        

Preferred stock dividend requirements

   $ 225  

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

     1.18  

Preferred stock dividend factor on pre-tax basis

   $ 266  

Fixed charges

     12,823  
        

Total fixed charges and preferred stock dividend requirements

   $ 13,089  
        

Ratio of earnings to combined fixed charges and preferred stock dividends

     1.78  
        
   

 

(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.