Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, | ||||||||
(in millions of dollars) | 2008 | 2007 | ||||||
Fixed Charges: | ||||||||
Interest expense1 | $ | 518 | $ | 492 | ||||
Interest capitalized | 14 | 12 | ||||||
One-third of rents2 | 102 | 88 | ||||||
Total fixed charges | $ | 634 | $ | 592 | ||||
Earnings: | ||||||||
Income before income taxes and minority interests | $ | 5,304 | $ | 4,765 | ||||
Fixed charges per above | 634 | 592 | ||||||
Less: interest capitalized | (14 | ) | (12 | ) | ||||
620 | 580 | |||||||
Amortization of interest capitalized | 7 | 6 | ||||||
Total earnings | $ | 5,931 | $ | 5,351 | ||||
Ratio of earnings to fixed charges | 9.35 | 9.04 | ||||||
1 | Effective January 1, 2007, we adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Interest related to unrecognized tax benefits was approximately $8 million and $15 million for the nine months ended September 30, 2008 and 2007, respectively. The ratio of earnings to fixed charges would have been 9.47 and 9.27 for the nine months ended September 30, 2008 and 2007, respectively, if such interest were excluded from the calculation. |
2 | Reasonable approximation of the interest factor. |