EX-12 2 c47060exv12.htm EXHIBIT 12 exv12
EXHIBIT 12
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Nine months ended September 30,   2008     2007  
   
    (dollars are in millions)  
 
(Loss) income from continuing operations
  $ (1,446 )   $ (282 )
Income tax expense
    (683 )     239  
                 
Income from continuing operations before income tax expense
    (2,129 )     (43 )
                 
Fixed charges:
               
Interest expense
    4,990       5,955  
Interest portion of rentals(1)
    29       39  
                 
Total fixed charges
    5,019       5,994  
                 
Total earnings from continuing operations as defined
  $ 2,890     $ 5,951  
                 
Ratio of earnings to fixed charges
    .58       .99  
Preferred stock dividends(2)
    43       44  
Ratio of earnings to combined fixed charges and preferred stock dividends
    .57       .99  
 
 
(1)  Represents one-third of rentals, which approximates the portion representing interest.
 
(2)  Preferred stock dividends are grossed up to their pretax equivalents.