EX-12.1 3 a18q3_10qx033118xexhibit121.htm EXHIBIT 12.1 Exhibit
 
 
Exhibit 12.1


Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios) 
2014
 
2015
 
2016
 
2017
 
Nine months ended March 31, 2018
Earnings before income taxes
$
1,798

 
$
1,967

 
$
2,276

 
$
1,924

 
$
959

 
 
 
 
 
 
 
 
 
 
Plus fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
129

 
137

 
178

 
187

 
249

Capitalized interest
1

 
2

 
6

 
9

 
3

Amortization of debt offering costs
4

 
8

 
6

 
6

 
8

Interest portion of rent expense
10

 
10

 
12

 
14

 
12

Fixed charges (1)
144

 
156

 
201

 
217

 
272

Plus: amortization of capitalized interest
3

 
2

 
3

 
4

 
3

Less: capitalized interest
(1
)
 
(2
)
 
(6
)
 
(9
)
 
(3
)
Earnings (1)
$
1,944

 
$
2,124

 
$
2,473

 
$
2,135

 
$
1,231

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1) (2)
14

 
14

 
12

 
10

 
5

(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.