EX-12 3 a11-12772_1ex12.htm EX-12

EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR SIX MONTHS ENDED JUNE 30,

(UNAUDITED)

 

(Dollars in millions)

 

2011

 

2010

 

Income before income taxes (1)

 

$

8,719

 

$

8,103

 

 

 

 

 

 

 

Add: Fixed charges, excluding capitalized interest

 

720

 

712

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

9,439

 

$

8,815

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

469

 

$

461

 

Capitalized interest

 

6

 

4

 

Portion of rental expense representative of interest

 

251

 

251

 

 

 

 

 

 

 

Total fixed charges

 

$

726

 

$

716

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

13.00

 

12.31

 

 

(1)

 

Income from continuing operations 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.

 

79