EX-12 3 exhibit_12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
                                                                        Exhibit 12


HALLIBURTON COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(Millions of dollars, except ratios)

       
   
Years Ended December 31
  
   
2006
  
2005
  
2004
  
2003
  
2002
  
Earnings available for fixed charges:
                                
Income (loss) from continuing
                                
operations before income taxes,
                                
minority interest, and cumulative
                                
effects of accounting changes, net
  
$
3,449
  
$
2,447
  
$
634
  
$
597
  
$
(253
)
Add:
                                
Distributed earnings from equity
                                
in unconsolidated affiliates
    
80
    
98
    
61
    
113
    
33
  
Fixed charges
    
249
    
281
    
295
    
203
    
168
  
Subtotal
    
3,778
    
2,826
    
990
    
913
    
(52
)
Less:
                                
Minority interest in pretax losses
                                
of subsidiaries that have not
                                
incurred fixed charges
    
60
    
-
    
-
    
-
    
-
  
Undistributed equity in earnings
                                
(losses) of unconsolidated
                                
affiliates
    
72
    
(26
)
  
(6
)
  
18
    
74
  
Total earnings available for fixed charges
  
$
3,646
  
$
2,852
  
$
996
  
$
895
  
$
(126
)
                                 
Fixed charges:
                                
Interest expense
  
$
175
  
$
207
  
$
229
  
$
139
  
$
113
  
Rental expense representative
                                
of interest
    
74
    
74
    
66
    
64
    
55
  
Total fixed charges
  
$
249
  
$
281
  
$
295
  
$
203
  
$
168
  
                                 
Ratio of earnings to fixed charges
    
14.6
    
10.1
    
3.4
    
4.4
    
(a
)

(a) For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $294 million.

All periods presented reflect the reclassification of KBR’s Production Services operations to discontinued operations.