EX-12 13 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,
2006		    December 31,
2005		    December 31,
2004		    December 31,
2003		    December 31,
2002
          (As Restated)    (As Restated)    (As Restated)    (As Restated)

Earnings:

               

Earnings from Continuing Operations

    $ 6,984    $ 5,080    $ 3,858    $ 2,671    $ 1,969

Add back:

               

Fixed charges

      533      294      168      137      131
                                  

Total earnings

    $ 7,517    $ 5,374    $ 4,026    $ 2,808    $ 2,100
                                  

Fixed Charges:

               

Interest, capitalized and expensed

    $ 456    $ 241    $ 128    $ 95    $ 90

Interest component of rental payments

      63      46      36      40      39

Amortization of debt discount and debt expense

      14      7      4      2      2
                                  

Total fixed charges

    $ 533    $ 294    $ 168    $ 137    $ 131
                                  

Ratio of Earnings to Fixed Charges

      14.1      18.3      24.0      20.5      16.0
                                  

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

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

Dollars in millions

 

     December 31,
2006		    December 31,
2005		    December 31,
2004		    December 31,
2003		    December 31,
2002
          (As Restated)    (As Restated)    (As Restated)    (As Restated)

Earnings:

               

Earnings from Continuing Operations

    $ 6,984    $ 5,080    $ 3,858    $ 2,671    $ 1,969

Add back:

               

Fixed charges

      533      294      168      137      131
                                  

Total earnings

    $ 7,517    $ 5,374    $ 4,026    $ 2,808    $ 2,100
                                  

Fixed Charges:

               

Interest, capitalized and expensed

    $ 456    $ 241    $ 128    $ 95    $ 90

Interest component of rental payments

      63      46      36      40      39

Amortization of debt discount and debt expense

      14      7      4      2      2

Convertible Preferred Stock Dividends

      —      —      —      —      —
                                  

Total fixed charges

    $ 533    $ 294    $ 168    $ 137    $ 131
                                  

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

      14.1      18.3      24.0      20.5      16.0
                                  

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