EX-12 2 gecc2q01ex12.txt GECC RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES Computation of Ratio of Earnings to Fixed Charges and Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends Six Months Ended June 30, 2001 (Unaudited)
Ratio of Earnings to Combined Fixed Charges and Ratio of Preferred Earnings to Stock Fixed Charges Dividends -------------- -------------- (Dollar amounts in millions) Net earnings ..................................................................... $2,608 $2,608 Provision for income taxes ....................................................... 743 743 Minority interest in net earnings of consolidated affiliates ..................... 47 47 -------------- -------------- Earnings before provision for income taxes and minority interest ................. 3,398 3,398 -------------- -------------- Fixed charges: Interest ...................................................................... 5,384 5,384 One-third of rentals .......................................................... 152 152 -------------- -------------- Total fixed charges .............................................................. 5,536 5,536 -------------- -------------- Less interest capitalized, net of amortization ................................... (56) (56) -------------- -------------- Earnings before provision for income taxes and minority interest, plus fixed charges .................................................................. $8,878 $8,878 ============== ============== Ratio of earnings to fixed charges ............................................... 1.60 ============== Preferred stock dividend requirements ............................................ 53 Ratio of earnings before provision for income taxes to net earnings .............. 1.28 Preferred stock dividend factor on pre-tax basis ................................. 68 Fixed charges .................................................................... 5,536 -------------- Total fixed charges and preferred stock dividend requirements .................... $5,604 ============== Ratio of earnings to combined fixed charges and preferred stock dividends ........ 1.58 ==============
For purposes of computing the ratios, fixed charges consist of interest on all indebtedness and one-third of rentals, which management believes is a reasonable approximation of the interest factor of such rentals.