EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

Alcoa and subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratio)

 

Six months ended June 30,

    2008  

Earnings:

   

Income from continuing operations before taxes on income

    $ 1,422  

Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges

      —    

Equity income

      (95 )

Fixed charges added to earnings

      208  

Distributed income of less than 50 percent-owned persons

      40  

Amortization of capitalized interest:

   

Consolidated

      13  

Proportionate share of 50%-owned persons

      —    
        

Total earnings

    $ 1,588  
        

Fixed Charges:

   

Interest expense:

   

Consolidated

    $ 186  

Proportionate share of 50 percent-owned persons

      —    
        
   $ 186  
        

Amount representative of the interest factor in rents:

   

Consolidated

    $ 21  

Proportionate share of 50 percent-owned persons

      1  
        
   $ 22  
        

Fixed charges added to earnings

    $ 208  
        

Interest capitalized:

   

Consolidated

    $ 76  

Proportionate share of 50 percent-owned persons

      1  
        
   $ 77  
        

Preferred stock dividend requirements of majority-owned subsidiaries

      —    
        

Total fixed charges

    $ 285  
        

Ratio of earnings to fixed charges

      5.6