EX-12 3 ibm14q2_ex12.htm EX-12  

                                                                                                                                                                                                          EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR SIX MONTHS ENDED JUNE 30,

(UNAUDITED)

 

 

(Dollars in millions)

 

2014

 

2013

Income before income taxes (1)

 

$

8,159

 

$

7,759

 

 

 

 

 

 

 

Add: fixed charges, excluding capitalized interest

 

 

768

 

 

735

 

 

 

    

 

 

 

Income as adjusted before income taxes

 

$

8,927

 

$

8,494

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

     Interest expense

 

$

519

 

$

491

     Capitalized interest

 

 

3

 

 

17

     Portion of rental expense representative of interest

 

 

249

 

 

244

 

 

 

 

 

 

 

Total fixed charges

 

$

771

 

$

752

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

11.58

 

 

11.30

 

 

 

 

 

 

 

(1) Income before income taxes excludes (a) amortization of capitalized interest, and (b) the company's share in the income

      and losses of less-than-fifty percent-owned affiliates.

 

90