EX-12 7 a04-5397_1ex12.htm EX-12

EXHIBIT 12

 

COMPUTATION OF RATIO OF INCOME FROM

CONTINUING OPERATIONS TO FIXED CHARGES

FOR THREE MONTHS ENDED MARCH 31,

(UNAUDITED)

 

(Dollars in millions)

 

2004

 

2003

 

 

 

 

 

 

 

Income from continuing operations before income taxes (1)

 

$

2,290

 

$

1,980

 

 

 

 

 

 

 

Add:  Fixed charges, excluding capitalized interest

 

260

 

283

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

2,550

 

$

2,263

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

143

 

$

168

 

Capitalized interest

 

—

 

4

 

Portion of rental expense representative of interest

 

117

 

115

 

 

 

 

 

 

 

Total fixed charges

 

$

260

 

$

287

 

 

 

 

 

 

 

Ratio of income from continuing operations to fixed charges

 

9.81

 

7.89

 

 

(1) Income from continuing operations 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.

 

1