EX-12 2 ex12.htm EXHIBIT 12 Exhibit 12


 
  
First
Quarter
  
For the Years Ended December 31,
  
 
  
Restated
2006
  
Restated
2005
  
Restated
2004
  
Restated
2003
  
Restated
2002
  
Restated
2001
  
   
(in millions)
  
Earnings
                          
Income from continuing operations before income taxes
 
$
382
  
$
2,923
  
$
3,710
  
$
2,010
  
$
4,854
  
$
2,543
  
Less: Equity in net income/(loss) of affiliated companies
   
6
    
11
    
(2
)
  
12
    
13
    
5
  
Fixed charges
   
1,800
    
6,642
    
6,764
    
7,395
    
8,246
    
9,610
  
Earnings before fixed charges
 
$
2,176
  
$
9,554
  
$
10,476
  
$
9,393
  
$
13,087
  
$
12,148
  
                                       
Fixed charges
                                      
Interest expense
 
$
1,793
  
$
6,616
  
$
6,733
  
$
7,361
  
$
8,210
  
$
9,574
  
Rents
   
7
    
26
    
31
    
34
    
36
    
36
  
Total fixed charges
 
$
1,800
  
$
6,642
  
$
6,764
  
$
7,395
  
$
8,246
  
$
9,610
  
                                       
Ratio of earnings to fixed charges
   
1.21
    
1.44
    
1.55
    
1.27
    
1.59
    
1.26
  


For purposes of our ratio, earnings consist of the sum of pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries, less equity in net income or loss of affiliated companies, plus fixed charges. Fixed charges consist of interest on borrowed funds, amortization of debt discount, premium, and issuance expense, and one-third of all rental expense (the proportion deemed representative of the interest factor). For additional information, see Note 12 of our Notes to the Financial Statements.