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

Exhibit 12

 

TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions of dollars)

 

                                     For Nine Months
Ended Sept. 30,
     1998
    1999
    2000
    2001
     2002
          2002
   2003

Earnings:

                                                       

Income (loss) from continuing operations before income taxes plus fixed charges and amortization of capitalized interest, less interest capitalized

    $ 815    $ 2,205    $ 4,702    $ (316 )   $ (248 )        $ 295   $ 748
    
  
  
  
 
      
 

Fixed charges:

                                                       

Total interest on loans (expensed and capitalized)

    $ 86    $ 84    $ 98    $ 74     $ 60          $ 45   $ 33

Interest attributable to rental and lease expense

      41      30      32      33       26            20     19
    
  
  
  
 
      
 

Fixed charges

    $ 127    $ 114    $ 130    $ 107     $ 86          $ 65   $ 52
    
  
  
  
 
      
 

Ratio of earnings to fixed charges

      6.4      19.3      36.2      *       *            4.5     14.4
    
  
  
                       
 
* The ratio is not meaningful. The coverage deficiency was $423 million in year 2001 and $334 million in 2002.