EX-12 5 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.  Computation of Ratio of Earnings to Fixed Charges

 

 

 

Dollars in millions    Years ended December 31, 2010      2009      2008        2007      2006  
Earnings available for fixed charges                                     

Income from continuing operations before provision for income taxes and cumulative effect of accounting changes

      $7,000.3       $ 6,487.0       $ 6,158.0         $ 3,572.1 (1)     $ 4,154.4   

Noncontrolling interest expense in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates

      10.4         7.5         10.7           7.2         5.5   

Income tax provision (benefit) of 50%-owned affiliates included in income from continuing operations before provision for income taxes

      28.7         47.7         30.0           22.4         5.9   

Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors*

      315.4         302.8         321.3           312.8         304.0   

Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest*

      479.1         504.5         556.8           442.7         437.4   
       $7,833.9       $ 7,349.5       $ 7,076.8         $ 4,357.2       $ 4,907.2   

Fixed charges

                 

Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors*

      $315.4       $ 302.8       $ 321.3         $ 312.8       $ 304.0   

Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock*

      461.5         486.9         539.7           425.9         418.4   

Capitalized interest*

      12.0         11.9         12.5           7.0         5.5   
       $788.9       $ 801.6       $ 873.5         $ 745.7       $ 727.9   

Ratio of earnings to fixed charges

      9.93         9.17         8.10           5.84         6.74   

 

* Includes amounts of the Company and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges.

 

(1) Includes pretax charges of $1.7 billion primarily related to impairment in connection with the Company’s Latin America developmental license transaction.

 

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