EX-12 7 l27490aexv12.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  
    2007     2006     2005     2004     2003  
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
   $ 14,746     $ 12,419     $ 9,954     $ 9,010     $ 7,219  
 
                                        
Fixed charges, excluding capitalized interest
     1,428       1,242       924       719       657  
 
                              
 
                                        
TOTAL EARNINGS, AS DEFINED
   $ 16,174     $ 13,661     $ 10,878     $ 9,729     $ 7,876  
 
                              
 
                                        
FIXED CHARGES, AS DEFINED
                                        
 
                                        
Interest expense (including capitalized interest)
   $ 1,374     $ 1,153     $ 869     $ 629     $ 561  
1/3 of rental expense (1)
     124       122       90       90       96  
 
                              
 
                                        
TOTAL FIXED CHARGES, AS DEFINED
   $ 1,498     $ 1,275     $ 959     $ 719     $ 657  
 
                              
 
                                        
RATIO OF EARNINGS TO FIXED CHARGES
     10.8 x     10.7 x     11.3 x     13.5 x     12.0 x
 
(1)   Considered to be representative of interest factor in rental expense.