EX-12 2 exhibit_12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
                                                                            Exhibit 12


HALLIBURTON COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(Millions of dollars, except ratios)

   
For the Six
      
   
Months Ended
  
Years Ended December 31
  
   
June 30, 2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
Earnings available for fixed charges:
                                      
Income (loss) from continuing
                                      
operations before income taxes,
                                      
minority interest, and cumulative
                                      
effects of accounting changes, net
  
$
1,446
  
$
2,448
  
$
634
  
$
596
  
$
(253
)
$
940
  
Add:
                                      
Distributed earnings from equity
                                      
in unconsolidated affiliates
    
33
    
98
    
61
    
113
    
33
    
38
  
Fixed charges
    
127
    
281
    
295
    
203
    
168
    
209
  
Subtotal
    
1,606
    
2,827
    
990
    
912
    
(52
)
  
1,187
  
Less:
                                      
Minority interest in pretax loss of
                                      
subsidiaries that have not
                                      
incurred fixed charges
    
(77
)
  
-
    
-
    
-
    
-
    
-
  
Undistributed equity in earnings
                                      
(losses) of unconsolidated
                                      
affiliates
    
12
    
(26
)
  
(6
)
  
18
    
74
    
107
  
Total earnings available for fixed charges
  
$
1,671
  
$
2,853
  
$
996
  
$
894
  
$
(126
)
$
1,080
  
                                       
Fixed charges:
                                      
Interest expense
  
$
90
  
$
207
  
$
229
  
$
139
  
$
113
  
$
147
  
Rental expense representative
                                      
of interest
    
37
    
74
    
66
    
64
    
55
    
62
  
Total fixed charges
  
$
127
  
$
281
  
$
295
  
$
203
  
$
168
  
$
209
  
                                       
Ratio of earnings to fixed charges
    
13.2
    
10.2
    
3.4
    
4.4
    
(a
)
  
5.2
  

 
(a)  For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $294 million.
 
All periods presented reflect the reclassification of KBR’s Production Services operations to discontinued operations.

1