EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

Amounts in millions    Years Ended June 30    Three Months Ended
September 30
     2009(1)    2008(1)    2007(1)    2006(1)    2005(1)    2009(2)    2008(2)

EARNINGS, AS DEFINED

                     

Earnings from operations before income taxes and before adjustments for minority interests in consolidated subsidiaries and after eliminating undistributed earnings of equity method investees

    $ 15,372    $ 15,674    $ 14,299    $ 12,087    $ 9,512    $ 4,162    $ 4,292

Fixed charges (excluding capitalized interest)

      1,567      1,604      1,428      1,242      924      355      406
                                                

TOTAL EARNINGS, AS DEFINED

    $ 16,939    $ 17,278    $ 15,727    $ 13,329    $ 10,436    $ 4,517    $ 4,698
                                                

FIXED CHARGES, AS DEFINED

                     

Interest expense (including capitalized interest)

    $ 1,431    $ 1,546    $ 1,374    $ 1,153    $ 869    $ 341    $ 398

 1/3 of rental expense

      177      137      124      122      90      44      34
                                                

TOTAL FIXED CHARGES, AS DEFINED

    $ 1,608    $ 1,683    $ 1,498    $ 1,275    $ 959    $ 385    $ 432
                                                

RATIO OF EARNINGS TO FIXED CHARGES

      10.5x      10.3x      10.5x      10.5x      10.9x      11.7x      10.9x

 

(1) Amounts include the results of the Pharmaceuticals business.
(2) Amounts exclude the results of the Pharmaceuticals business, separately presented in the Consolidated Financial Statements as discontinued operations.