EX-12 15 dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

     2008     2007     2006     2005     2004  
     (in millions)  

Earnings

           

Income (loss) from continuing operations before income taxes

    ($ 4,060 )   ($ 29,775 )   $ 1,483     $ 1,291     ($ 3,244 )

Capitalized interest

      (123 )     (127 )     (113 )     (53 )     (56 )

Amortization of capitalized interest and losses (earnings) in equity method investees, net

      144       75       113       (9 )     127  
                                        

Subtotal

      (4,039 )     (29,827 )     1,483       1,229       (3,173 )
                                        

Fixed charges

           

Interest charges

      1,485       1,560       1,646       1,347       1,274  

Interest factor of operating rents

      609       653       596       395       347  
          
                                        

Total fixed charges

      2,094       2,213       2,242       1,742       1,621  
                                        
          
                                        

Earnings (loss), as adjusted

    ($ 1,945 )   ($ 27,614 )   $ 3,725     $ 2,971     ($ 1,552 )
                                        

Preferred stock dividends paid

    $ —       $ —       $ 3     $ 11     $ 11  

Total fixed charges

      2,094       2,213       2,242       1,742       1,621  
                                        

Total fixed charges and preferred stock dividends

    $ 2,094     $ 2,213     $ 2,245     $ 1,753     $ 1,632  
                                        

Ratio of combined earnings to fixed charges and preferred stock dividends

      —   (1)     —   (2)     1.66       1.69       —   (3)
                                        

 

(1) Earnings, as adjusted were inadequate to cover fixed charges by $4.0 billion in 2008.
(2) Earnings, as adjusted were inadequate to cover fixed charges by $29.8 billion in 2007.
(3) Earnings, as adjusted were inadequate to cover fixed charges and preferred stock dividends by $3.2 billion in 2004.

Note: The ratios of earnings to combined fixed charges and preferred stock dividends were computed by dividing fixed charges and pre-tax earnings required to cover preferred stock dividends into the sum of earnings (after certain adjustments) and fixed charges. Fixed charges include interest on all debt of continuing operations, including amortization of debt issuance costs, and the interest component of operating rents. Pre-tax earnings required to cover preferred stock dividends are calculated by dividing one less our effective income tax rate into preferred stock dividends, as adjusted for the tax benefits related to unallocated shares. Earnings include income from continuing operations before income taxes, plus net (losses) earnings in equity method investees, less capitalized interest.