EX-12 5 l21828aexv12.htm EX-12 EX-12
 

EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Amounts in millions
                                                 
    Years Ended June 30  
    2006     2005     2004     2003     2002     2001  
EARNINGS, AS DEFINED
                                                
 
                                                
Earnings from operations before income taxes and before adjustments for minority interests in consolidated subsidiaries and after eliminating undistributed earnings of equity method investees
   $ 12,419     $ 9,954     $ 9,010     $ 7,219     $ 5,837     $ 4,574  
 
                                                
Fixed charges, excluding capitalized interest
     1,242       924       719       657       687       872  
 
                                    
TOTAL EARNINGS, AS DEFINED
   $ 13,661     $ 10,878     $ 9,729     $ 7,876     $ 6,524     $ 4,970  
 
                                    
 
                                                
FIXED CHARGES, AS DEFINED
                                                
 
                                                
Interest expense (including capitalized interest)
   $ 1,153     $ 869     $ 629     $ 561     $ 603     $ 794  
1/3 of rental expense (1)
     122       90       90       96       84       78  
 
                                    
TOTAL FIXED CHARGES, AS DEFINED
   $ 1,275     $ 959     $ 719     $ 657     $ 687     $ 872  
 
                                    
 
                                                
RATIO OF EARNINGS TO FIXED CHARGES
     10.7x       11.3x       13.5x       12.0x       9.5x       5.7x  
(1) Considered to be representative of interest factor in rental expense.