Exhibit 12
UNITED TECHNOLOGIES CORPORATION
AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Full year | ||||||||||||||||||||
(in millions of dollars) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense1 | $ | 689 | $ | 666 | $ | 606 | $ | 498 | $ | 363 | ||||||||||
Interest capitalized | 19 | 16 | 19 | 16 | 11 | |||||||||||||||
One-third of rents2 | 168 | 146 | 96 | 100 | 107 | |||||||||||||||
Total fixed charges | $ | 876 | $ | 828 | $ | 721 | $ | 614 | $ | 481 | ||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes and minority interests | $ | 6,936 | $ | 6,384 | $ | 5,492 | $ | 4,684 | $ | 3,938 | ||||||||||
Fixed charges per above | 876 | 828 | 721 | 614 | 481 | |||||||||||||||
Less: capitalized interest | (19 | ) | (16 | ) | (19 | ) | (16 | ) | (11 | ) | ||||||||||
857 | 812 | 702 | 598 | 470 | ||||||||||||||||
Amortization of interest capitalized | 9 | 8 | 8 | 10 | 3 | |||||||||||||||
Total earnings | $ | 7,802 | $ | 7,204 | $ | 6,202 | $ | 5,292 | $ | 4,411 | ||||||||||
Ratio of earnings to fixed charges | 8.91 | 8.70 | 8.60 | 8.62 | 9.17 | |||||||||||||||
1 | Effective January 1, 2007, we adopted the provisions of Financial Accounting Standards Board Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” As disclosed in Note 9 to our Consolidated Financial Statements, interest related to unrecognized tax benefits was $39 million, $56 million, $38 million, and $25 million for the years 2008, 2007, 2006 and 2005, respectively. The ratio of earnings to fixed charges would have been 9.32, 9.33, 9.08, and 8.98 for the years 2008, 2007, 2006 and 2005, respectively, if such interest is excluded from the calculation. |
2 | Reasonable approximation of the interest factor. |