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Statement Regarding Computation of Ratios of Earnings to
Fixed Charges and Preferred Stock Dividends
| | Year Ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||
| | (US$ in millions except ratios) | ||||||||||
| Earnings (1) | |||||||||||
| Pretax income before minority interests | 1,201 | 522 | 488 | 891 | 707 | ||||||
| plus: Fixed Charges | 449 | 345 | 293 | 260 | 258 | ||||||
| Amortization of capitalized interest | 11 | 10 | 8 | 7 | 7 | ||||||
| Distributed income of equity investees | 12 | 1 | 2 | — | — | ||||||
| less: Capitalized interest | (15 | ) | (14 | ) | (12 | ) | (6 | ) | (8 | ) | |
| Preferred stock dividends | (40 | ) | (4 | ) | — | (5 | ) | (6 | ) | ||
| Earnings: | 1,618 | 860 | 779 | 1,147 | 958 | ||||||
| Fixed Charges (1) | |||||||||||
| Capitalized interest | 15 | 14 | 12 | 6 | 8 | ||||||
| Expensed interest | 353 | 280 | 231 | 214 | 215 | ||||||
| plus: Amortized premiums, discounts and capitalized debt expenditures | 6 | 6 | 12 | 8 | 8 | ||||||
| Estimate of interest within rental expense | 35 | 41 | 38 | 27 | 21 | ||||||
| Preferred stock dividends | 40 | 4 | — | 5 | 6 | ||||||
| Fixed charges: | 449 | 345 | 293 | 260 | 258 | ||||||
| Ratio of Earnings/Fixed Charges | 3.60 | 2.49 | 2.66 | 4.41 | 3.71 | ||||||
- (1)
- For the purpose of determining the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends, earnings are defined as pretax income before minority interests in consolidated subsidiaries plus fixed charges and amortization of capitalized interest less capitalized interest and preferred stock dividend requirements. Fixed charges consist of interest expense (capitalized and expensed), amortization of deferred debt issuance costs, portion of rental expense that is representative of the interest factor and preferred stock dividend requirements of the registrant and consolidated subsidiaries.
Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends