EX-12 2 d321624dex12.htm COMPUTATION OF RATIOS Computation of Ratios

Exhibit 12. Computation of Ratios

 

Ratio of Earnings to Fixed Charges

Dollars in millions

 

 

     Three Months      Years Ended December 31,  
     Ended March 31,     
     2012      2011      2011      2010      2009      2008      2007  

Earnings available for fixed charges

                     

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

    $ 1,847.5       $ 1,698.9       $ 8,012.2       $ 7,000.3       $ 6,487.0       $ 6,158.0       $ 3,572.1 (1) 

- 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

      3.1         3.4         13.3         10.4         7.5         10.7         7.2   

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

      21.1         17.1         65.5         28.7         47.7         30.0         22.4   

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

      88.2         83.0         339.4         315.4         302.8         321.3         312.8   

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

      136.1         127.2         520.5         479.1         504.5         556.8         442.7   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2,096.0       $ 1,929.6       $ 8,950.9       $ 7,833.9       $ 7,349.5       $ 7,076.8       $ 4,357.2   

Fixed charges

                     

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

    $ 88.2       $ 83.0       $ 339.4       $ 315.4       $ 302.8       $ 321.3       $ 312.8   

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

      133.2         122.8         503.0         461.5         486.9         539.7         425.9   

- Capitalized interest*

      3.4         2.8         14.0         12.0         11.9         12.5         7.0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   $ 224.8       $ 208.6       $ 856.4       $ 788.9       $ 801.6       $ 873.5       $ 745.7   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      9.32         9.25         10.45         9.93         9.17         8.10         5.84   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

* 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.