EX-12 2 a2039641zex-12.txt EXHIBIT 12 EXHIBIT I COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (UNAUDITED)
YEARS ENDED DECEMBER 31: ---------------------------------------------------- 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- Income before income taxes (1)................. $11,501 $11,665 $ 8,997 $ 9,054 $ 8,599 Add: Fixed charges, excluding capitalized interest................................... 1,885 1,921 2,036 2,000 1,942 ------- ------- ------- ------- ------- Income as adjusted before income taxes....... $13,386 $13,586 $11,033 $11,054 $10,541 ======= ======= ======= ======= ======= Fixed charges: Interest expense............................. $ 1,430 $ 1,455 $ 1,559 $ 1,573 $ 1,545 Capitalized interest......................... 20 23 28 32 31 Portion of rental expense representative of interest................................... 455 466 477 427 397 ------- ------- ------- ------- ------- Total fixed charges............................ $ 1,905 $ 1,944 $ 2,064 $ 2,032 $ 1,973 Preferred stock dividend (2)................... 29 30 29 29 32 ------- ------- ------- ------- ------- Combined fixed charges and preferred stock dividends.................................... $ 1,934 $ 1,974 $ 2,093 $ 2,061 $ 2,005 ======= ======= ======= ======= ======= Ratio of net income to fixed charges........... 7.0 7.0 5.3 5.4 5.3 Ratio of net income to combined fixed charges and preferred stock dividend................. 6.9 6.9 5.3 5.4 5.3
------------------------ (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. (2) Included in the ratio calculation are preferred stock dividends of $20 million for 2000, 1999, 1998, 1997 and 1996, respectively, or $29 million in 2000, $30 million in 1999, $29 million in 1998 and 1997, and $32 million in 1996 representing the pre-tax income that would be required to cover such dividend requirements based on the company's effective tax rate for 2000, 1999, 1998, 1997 and 1996, respectively.