EX-12 2 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

(In millions, except ratios)   

Nine Months

Ended

March 31,

     Fiscal Year Ended June 30,  
          2010     2009     2008     2007     2006     2005  

Earnings (1) :

                                                      

Earnings from continuing operations before income taxes

         $     18,989      $   19,821      $   23,814      $   20,101      $   18,262      $   16,628   

Add: Fixed charges

           156        88        151        271        331        247   

Add: Cash distributions from equity method investments

           8        85        10        —        51        11   

Subtract: Income from equity method investments

           10        81        62        62        (161 )      19   
 
 
 
 
 

Total Earnings

         $ 19,143      $ 19,913      $ 23,913      $ 20,310      $ 18,805      $ 16,867   
         
 
 
 
 
 

Fixed Charges (2):

                                                      

Interest expense

         $ 111      $ 38      $ 106      $ 230      $ 295      $ 209   

Capitalized debt related expenses

           3        —        —        —        —        —   

Interest component of rent expense

           42        50        45        41        36        38   
 
 
 
 
 

Total Fixed Charges

         $ 156      $ 88      $ 151      $ 271      $ 331      $ 247   
         
 
 
 
 
 

Ratio of Earnings to Fixed Charges

           123        226        158        75        57        68   
 
 
 
 
 

 

(1)

Earnings represent earnings from continuing operations before income taxes and before income (losses) from equity method investments plus: (a) fixed charges; and (b) cash distributions from equity method investments.

 

(2)

Fixed charges include: (a) interest expense; (b) capitalized debt issuance costs; and (c) the portion of operating rental expense which management believes is representative of the interest component of rent expense.