EX-12 6 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT (12)

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Years Ended June 30    Six Months Ended
December 31
Amounts in millions    2004    2005    2006    2007    2008    2007    2008

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

    $ 8,646    $ 9,512    $ 12,087    $ 14,299    $ 15,674    $ 8,614    $ 8,644

Fixed charges (excluding capitalized interest)

      719      924      1,242      1,428      1,604      835      780
                                                

TOTAL EARNINGS, AS DEFINED

    $ 9,365    $ 10,436    $ 13,329    $ 15,727    $ 17,278    $ 9,449    $ 9,424
                                                

FIXED CHARGES, AS DEFINED

                     

Interest expense (including capitalized interest)

    $ 629    $ 869    $ 1,153    $ 1,374    $ 1,546    $ 788    $ 729

 1/3 of rental expense

     90      90      122      124      137      64      71
                                                

TOTAL FIXED CHARGES, AS DEFINED

    $ 719    $ 959    $ 1,275    $ 1,498    $ 1,683    $ 852    $ 800
                                                

RATIO OF EARNINGS TO FIXED CHARGES

      13.0x      10.9x      10.5x      10.5x      10.3x      11.1x      11.8x