EX-7.1 4 a2222979zex-7_1.htm EX-7.1

Exhibit 7.1

 

ABB Ltd

 

Year ended December 31 ($ in millions, except ratio)

 

 

 

2014

 

2013

 

2012

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

 

3,896

 

4,066

 

3,838

 

4,550

 

3,740

 

Fixed charges

 

453

 

500

 

475

 

376

 

269

 

Other income(1)

 

(14

)

(13

)

(1

)

(4

)

(3

)

Income from continuing operations before taxes, as adjusted

 

4,335

 

4,553

 

4,312

 

4,922

 

4,006

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (incl. amortization of premiums and discounts related to indebtedness)

 

261

 

293

 

254

 

171

 

94

 

Other fixed charges(2)

 

192

 

207

 

221

 

205

 

175

 

Fixed charges

 

453

 

500

 

475

 

376

 

269

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

10

 

9

 

9

 

13

 

15

 

 


(1) Other income represents mainly (income) / loss from equity-accounted companies.

(2) Other fixed charges represent mainly the estimated interest component within rental expense.

 

For the purposes of calculating our ratio of earnings to fixed charges, earnings consist of income from continuing operations before taxes, to which we add back fixed charges and exclude income or loss from equity-accounted companies. Fixed charges consist of interest expense, the amortization of premiums, discounts and capitalized expenses related to indebtedness, and the portion of rental expense deemed representative of an interest factor. Interest expense excludes tax-related interest expense.