EX-12 4 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

 

     Six Months
Ended June 30,
         Years Ended December 31,  
     2011      2010          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

   $ 3,765.3       $ 3,292.2         $ 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

     5.7         5.0           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

     33.3         5.3           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*

     167.6         156.2           315.4         302.8         321.3         312.8        304.0   

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

     256.1         233.3           479.1         504.5         556.8         442.7        437.4   
   $ 4,228.0       $ 3,692.0         $ 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*

   $ 167.6       $ 156.2         $ 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*

     247.4         224.5           461.5         486.9         539.7         425.9        418.4   

- Capitalized interest*

     6.4         4.9           12.0         11.9         12.5         7.0        5.5   
   $ 421.4       $ 385.6         $ 788.9       $ 801.6       $ 873.5       $ 745.7      $ 727.9   

Ratio of earnings to fixed charges

     10.03         9.57           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 sale of its Latin American businesses to a developmental licensee.