EX-7.1 3 a17-27629_5ex7d1.htm EX-7.1  

 

 

 

 

 

 

 

 

Exhibit 7.1

 

 

 

 

 

 

 

 

 

 

ABB Ltd

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

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

3,231

 

2,799

 

2,840

 

3,896

 

4,066

Fixed charges

351

 

370

 

405

 

453

 

500

Other income(1)

(16)

 

(15)

 

(17)

 

(14)

 

(13)

Income from continuing operations before taxes, as adjusted

3,566

 

3,154

 

3,228

 

4,335

 

4,553

 

 

 

 

 

 

 

 

 

 

Interest expense (incl. amortization of premiums and

 

 

 

 

 

 

 

 

 

  discounts related to indebtedness)

196

 

213

 

235

 

261

 

293

Other fixed charges(2)

155

 

157

 

170

 

192

 

207

Fixed charges

351

 

370

 

405

 

453

 

500

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

10

 

9

 

8

 

10

 

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.