EX-12 2 c33028exv12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
EXHIBIT 12
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
                 
Six months ended June 30,   2008     2007  
   
    (dollars are in millions)  
 
(Loss) income from continuing operations
  $ (1,175 )   $ 795  
Income tax expense
    (593 )     411  
                 
Income from continuing operations before income tax expense
    (1,768 )     1,206  
                 
Fixed charges:
               
Interest expense
    3,450       3,977  
Interest portion of rentals(1)
    22       29  
                 
Total fixed charges
    3,472       4,006  
                 
Total earnings from continuing operations as defined
  $ 1,704     $ 5,212  
                 
Ratio of earnings to fixed charges
    .49       1.30  
Preferred stock dividends(2)
    29       29  
Ratio of earnings to combined fixed charges and preferred stock dividends
    .49       1.29  
 
 
(1)  Represents one-third of rentals, which approximates the portion representing interest.
 
(2)  Preferred stock dividends are grossed up to their pretax equivalents.