EX-12 3 ibm13q3_ex12.htm EX-12  

                                                                                                                                                                                                          EXHIBIT 12

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR NINE MONTHS ENDED SEPTEMBER 30,

(UNAUDITED)

 

 

 

(Dollars in millions)

 

2013

 

2012

Income before income taxes (1)

 

$

12,574

 

$

14,093

 

 

 

 

 

 

 

Add: fixed charges, excluding capitalized interest

 

 

1,100

 

 

1,150

 

 

 

    

 

 

 

Income as adjusted before income taxes

 

$

13,674

 

$

15,243

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

     Interest expense

 

$

733

 

$

760

     Capitalized interest

 

 

19

 

 

16

     Portion of rental expense representative of interest

 

 

367

 

 

390

 

 

 

 

 

 

 

Total fixed charges

 

$

1,119

 

$

1,166

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

12.22

 

 

13.07

 

 

 

 

 

 

 

(1) Income before income taxes excludes (a) amortization of capitalized interest, and (b) the company's share in the income

      and losses of less-than-fifty percent-owned affiliates.

 

87