EX-12 3 dex12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement re: computation of ratio of earnings to fixed charges

Exhibit 12

UNITED TECHNOLOGIES CORPORATION

AND SUBSIDIARIES

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Nine Months Ended
September 30,		  

(in millions of dollars)

    2008     2007  

Fixed Charges:

     

Interest expense1

    $ 518     $ 492  

Interest capitalized

      14       12  

One-third of rents2

      102       88  
                

Total fixed charges

    $ 634     $ 592  
                

Earnings:

     

Income before income taxes and minority interests

    $ 5,304     $ 4,765  

Fixed charges per above

      634       592  

Less: interest capitalized

      (14 )     (12 )
                
     620       580  
                

Amortization of interest capitalized

      7       6  
                

Total earnings

    $ 5,931     $ 5,351  
                

Ratio of earnings to fixed charges

      9.35       9.04  
                

 

1

Effective January 1, 2007, we adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Interest related to unrecognized tax benefits was approximately $8 million and $15 million for the nine months ended September 30, 2008 and 2007, respectively. The ratio of earnings to fixed charges would have been 9.47 and 9.27 for the nine months ended September 30, 2008 and 2007, respectively, if such interest were excluded from the calculation.

 

2

Reasonable approximation of the interest factor.