EX-12 3 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12

Computation of Ratio of Earnings to Fixed Charges

Dollars in millions

 

     December 31,
2005		    December 31,
2004		    December 31,
2003		    December 31,
2002		    December 31,
2001

Earnings:

               

Earnings from Continuing Operations

    $ 5,373    $ 4,101    $ 2,935    $ 2,186    $ 1,566

Add back:

               

Fixed charges

      294      173      137      131      135
                                  

Total earnings

    $ 5,667    $ 4,274    $ 3,072    $ 2,317    $ 1,701
                                  

Fixed Charges:

               

Interest, capitalized and expensed

    $ 241    $ 128    $ 95    $ 90    $ 94

Interest component of rental payments

      46      41      40      39      40

Amortization of debt discount and debt expense

      7      4      2      2      1
                                  

Total fixed charges

    $ 294    $ 173    $ 137    $ 131    $ 135
                                  

Ratio of Earnings to Fixed Charges

      19.3      24.7      22.4      17.7      12.6
                                  

For purposes of computing this ratio, earnings represent income from continuing operations. Fixed charges represent interest expense including amounts capitalized, the interest factor in rental expense plus amortization of debt discount and debt expense.

Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

Dollars in millions

 

     December 31,
2005		    December 31,
2004		    December 31,
2003		    December 31,
2002		    December 31,
2001

Earnings:

               

Earnings from Continuing Operations

    $ 5,373    $ 4,101    $ 2,935    $ 2,186    $ 1,566

Add back:

               

Fixed charges

      294      173      137      131      135
                                  

Total earnings

    $ 5,667    $ 4,274    $ 3,072    $ 2,317    $ 1,701
                                  

Fixed Charges:

               

Interest, capitalized and expensed

    $ 241    $ 128    $ 95    $ 90    $ 94

Interest component of rental payments

      46      41      40      39      40

Amortization of debt discount and debt expense

      7      4      2      2      1

Convertible Preferred Stock Dividends

      —        —        —        —        —  
                                  

Total fixed charges

    $ 294    $ 173    $ 137    $ 131    $ 135
                                  

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

      19.3      24.7      22.4      17.7      12.6
                                  

For purposes of computing this ratio, earnings represent income from continuing operations. Fixed charges represent interest expense including amounts capitalized, the interest factor in rental expense plus amortization of debt discount and debt expense and any preferred stock dividend requirements, adjusted to a pretax basis.