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EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED
CHARGES AND EARNINGS FROM CONTINUING OPERATIONS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
(Unaudited)
| Years Ended December 31: | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in millions) | ||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
Income from continuing operations before income taxes (1) | $ | 11,905 | $ | 10,863 | $ | 7,537 | $ | 11,488 | $ | 11,378 | ||||||
Add: | ||||||||||||||||
Fixed charges, excluding capitalized interest | 1,048 | 1,121 | 1,237 | 1,639 | 1,872 | |||||||||||
Income as adjusted before income taxes | $ | 12,953 | $ | 11,984 | $ | 8,774 | $ | 13,127 | $ | 13,250 | ||||||
Fixed charges: | ||||||||||||||||
Interest expense | $ | 567 | $ | 648 | $ | 778 | $ | 1,198 | $ | 1,427 | ||||||
Capitalized interest | 4 | 15 | 35 | 33 | 20 | |||||||||||
Portion of rental expense representative of interest | 481 | 473 | 459 | 441 | 445 | |||||||||||
Total fixed charges | $ | 1,052 | $ | 1,136 | $ | 1,272 | $ | 1,672 | $ | 1,892 | ||||||
Preferred stock dividends (2) | — | — | — | 14 | 29 | |||||||||||
Combined fixed charges and preferred stock dividends | $ | 1,052 | $ | 1,136 | $ | 1,272 | $ | 1,686 | $ | 1,921 | ||||||
Ratio of income from continuing operations to fixed charges | 12.3 | 10.5 | 6.9 | 7.9 | 7.0 | |||||||||||
Ratio of income from continuing operations to combined fixed charges and preferred stock dividends | 12.3 | 10.5 | 6.9 | 7.8 | 6.9 |
- (1)
- Income from continuing operations before income taxes excludes (a) amortization of capitalized interest and (b) the company's share in the income and losses of less-than-fifty percent owned affiliates.
- (2)
- Included in the ratio calculation are preferred stock dividends of $10 million for 2001 and $20 million for 2000, respectively, or $14 million for 2001 and $29 million in 2000 representing the pre-tax income that would be required to cover such dividend requirements based on the company's effective tax rate for 2001 and 2000, respectively.
COMPUTATION OF RATIO OF EARNINGS FROM CONTINUING OPERATIONS TO FIXED CHARGES AND EARNINGS FROM CONTINUING OPERATIONS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Unaudited)