EX-12 2 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

(Millions of dollars)

 

     2005

   2004

   2003

   2002

    2001

 

EARNINGS:

                                     

Net income (loss)

   $ 2,324    $ 1,861    $ 1,198    ($ 344 )   ($ 201 )

Add: Provision (benefit) for income taxes

     664      560      52      (2 )     (225 )

Amortization of capitalized interest

     9      10      12      15       16  

Fixed charges from below

     37      43      64      83       94  
    

  

  

  


 


Total earnings (loss)

   $ 3,034    $ 2,474    $ 1,326    ($ 248 )     ($316 )
    

  

  

  


 


FIXED CHARGES:

                                     

Total interest on loans (expensed)

   $ 9    $ 21    $ 39    $ 57     $ 61  

Interest attributable to rental and lease expense

     28      22      25      26       33  
    

  

  

  


 


Fixed charges deducted from earnings

     37      43      64      83       94  

Capitalized interest

     5      3      2      3       13  
    

  

  

  


 


Total fixed charges

   $ 42    $ 46    $ 66    $ 86     $ 107  
    

  

  

  


 


Ratio of earnings to fixed charges

     72.2      53.8      20.1        *       *
    

  

  

                

 

* The ratio is not meaningful. The coverage deficiency was $334 million in year 2002 and $423 million in year 2001.