EX-7.1 3 a16-22210_6ex7d1.htm EX-7.1  

 

 

 

 

 

 

 

 

Exhibit 7.1

 

 

 

 

 

 

 

 

 

 

ABB Ltd

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

 

 

 

 

 

 

 

 

 

 

 

2016

 

2015

 

2014

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

2,799

 

2,840

 

3,896

 

4,066

 

3,838

Fixed charges

370

 

405

 

453

 

500

 

475

Other income(1)

(15)

 

(17)

 

(14)

 

(13)

 

(1)

Income from continuing operations before taxes, as adjusted

3,154

 

3,228

 

4,335

 

4,553

 

4,312

 

 

 

 

 

 

 

 

 

 

Interest expense (incl. amortization of premiums and

 

 

 

 

 

 

 

 

 

  discounts related to indebtedness)

213

 

235

 

261

 

293

 

254

Other fixed charges(2)

157

 

170

 

192

 

207

 

221

Fixed charges

370

 

405

 

453

 

500

 

475

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

9

 

8

 

10

 

9

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.