EX-12.1 7 a17q4_10kx063017xexhibit121.htm EXHIBIT 12.1 Exhibit
 
 
Exhibit 12.1


Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios) 
2013
 
2014
 
2015
 
2016
 
2017
Earnings from continuing operations before income taxes
$
888

 
$
1,798

 
$
1,967

 
$
2,276

 
$
1,924

 
 
 
 
 
 
 
 
 
 
Plus fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
119

 
129

 
137

 
178

 
187

Capitalized interest
2

 
1

 
2

 
6

 
9

Amortization of debt offering costs
4

 
4

 
8

 
6

 
6

Interest portion of rent expense
8

 
10

 
10

 
12

 
14

Fixed charges (1)
133

 
144

 
156

 
201

 
217

Plus: amortization of capitalized interest
3

 
3

 
2

 
3

 
4

Less: capitalized interest
(2
)
 
(1
)
 
(2
)
 
(6
)
 
(9
)
Earnings (1)
$
1,023

 
$
1,944

 
$
2,124

 
$
2,473

 
$
2,135

 
 

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1) (2)
8

 
14

 
14

 
12

 
10

(1)
The sum of the components may not equal the total due to rounding.    
(2)
The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings from continuing operations before income taxes plus fixed charges and capitalized interest. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense that is deemed to be representative of the interest factor. Interest expense recorded on tax exposures has been recorded in income tax expense and has therefore been excluded from the calculation.