EXHIBIT 12
KRAFT FOODS INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
| | Nine Months Ended September 30, 2003 | Three Months Ended September 30, 2003 | ||||||
|---|---|---|---|---|---|---|---|---|
| Earnings before income taxes and minority interest | $ | 4,024 | $ | 1,251 | ||||
Add (Deduct): | ||||||||
| Equity in net earnings of less than 50% owned affiliates | (33 | ) | (14 | ) | ||||
| Dividends from less than 50% owned affiliates | 39 | 2 | ||||||
| Fixed charges | 624 | 202 | ||||||
Earnings available for fixed charges | $ | 4,654 | $ | 1,441 | ||||
Fixed charges: | ||||||||
Interest incurred: | ||||||||
| Interest expense | $ | 513 | $ | 165 | ||||
| Capitalized interest | 2 | 1 | ||||||
| 515 | 166 | |||||||
Portion of rent expense deemed to represent interest factor | 109 | 36 | ||||||
Fixed charges | $ | 624 | $ | 202 | ||||
Ratio of earnings to fixed charges | 7.5 | 7.1 | ||||||
EXHIBIT 12
KRAFT FOODS INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
| | Years Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
| Earnings before income taxes and minority interest | $ | 5,267 | $ | 3,447 | $ | 3,415 | $ | 3,040 | $ | 2,999 | |||||||
| Add (Deduct): | |||||||||||||||||
| Equity in net earnings of less than 50% owned affiliates | (51 | ) | (41 | ) | (50 | ) | (51 | ) | (28 | ) | |||||||
| Dividends from less than 50% owned affiliates | 28 | 21 | 12 | 10 | 9 | ||||||||||||
| Fixed charges | 1,003 | 1,581 | 710 | 646 | 638 | ||||||||||||
| Interest capitalized, net of amortization | (1 | ) | (3 | ) | — | (2 | ) | (1 | ) | ||||||||
| Earnings available for fixed charges | $ | 6,246 | $ | 5,005 | $ | 4,087 | $ | 3,643 | $ | 3,617 | |||||||
Fixed charges: | |||||||||||||||||
| Interest incurred: | |||||||||||||||||
| Interest expense | $ | 854 | $ | 1,452 | $ | 615 | $ | 547 | $ | 549 | |||||||
| Capitalized interest | 4 | 5 | 3 | 4 | 3 | ||||||||||||
| 858 | 1,457 | 618 | 551 | 552 | |||||||||||||
Portion of rent expense deemed to represent interest factor | 145 | 124 | 92 | 95 | 86 | ||||||||||||
Fixed charges | $ | 1,003 | $ | 1,581 | $ | 710 | $ | 646 | $ | 638 | |||||||
| Ratio of earnings to fixed charges | 6.2 | 3.2 | 5.8 | 5.6 | 5.7 | ||||||||||||