EX-99.2 4 a2088257zex-99_2.txt EXHIBIT 99.2 EXHIBIT 99.2 COMPUTATION OF RATIO OF INCOME FROM CONTINUING OPERATIONS TO FIXED CHARGES AND INCOME FROM CONTINUING OPERATIONS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Unaudited) (Dollars in millions)
Year Ended December 31: ---------------------------------------------------------- 2001 2000 1999 1998 1997 -------- -------- -------- --------- ------- Income from continuing operations before income taxes (1) $11,488 $11,378 $11,653 $8,068 $8,397 Add: Fixed charges, excluding capitalized interest 1,639 1,872 1,911 2,031 1,998 -------- ------- ------- ------- ------- Income as adjusted before income taxes $13,127 $13,250 $13,564 $10,099 $10,395 ======== ======= ======= ======= ======= Fixed charges: Interest expense $1,198 $1,427 $1,455 $1,558 $1,571 Capitalized interest 33 20 23 28 32 Portion of rental expense representative of interest 441 445 456 473 427 -------- ------- ------- ------- ------- Total fixed charges $1,672 $1,892 $1,934 $2,059 $2,030 ======== ======= ======= ======= ======= Preferred stock dividends(2) 14 29 32 30 30 -------- ------- ------- ------- ------- Combined fixed charges and preferred stock dividends $1,686 $1,921 $1,966 $2,089 $2,060 ======== ======= ======= ======= ======= Ratio of income from continuing operations to fixed charges 7.9 7.0 7.0 4.9 5.1 Ratio of income from continuing operations to combined fixed charges and preferred stock dividends 7.8 6.9 6.9 4.8 5.0
-------------------- (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. (2) Included in the ratio calculation are preferred stock dividends of $10 million for 2001 and $20 million for 2000, 1999, 1998 and 1997, respectively, or $14 million in 2001, $29 million in 2000, $32 million in 1999 and $30 million in 1998 and 1997 representing the pre-tax income that would be required to cover such dividend requirements based on the company's effective tax rate for 2001, 2000, 1999, 1998 and 1997, respectively.