Exhibit 12
Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions of pounds)
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | 3,512 | 1,934 | 10,512 | 2,938 | 6,604 | |||||||||||||||
Plus: Fixed charges | 773 | 769 | 795 | 775 | 814 | |||||||||||||||
Plus: Distributed income of income from equity investees | 6 | 42 | 5 | 5 | 18 | |||||||||||||||
Less: Preference security dividend | — | — | — | — | — | |||||||||||||||
Less: Minority interest inpre-tax income (1)(2) | 41 | 40 | — | — | 1 | |||||||||||||||
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Total Earnings | 4,250 | 2,705 | 11,312 | 3,718 | 7,435 | |||||||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense | 734 | 736 | 757 | 727 | 767 | |||||||||||||||
Interest within rental expense (1/3 of rentals) | 39 | 33 | 38 | 48 | 47 | |||||||||||||||
Preference security dividend (2) | — | — | — | — | — | |||||||||||||||
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Total fixed charges | 773 | 769 | 795 | 775 | 814 | |||||||||||||||
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Ratio of Earnings to Fixed Charges | 5.5 | 3.5 | 14.2 | 4.8 | 9.1 | |||||||||||||||
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| (1) | Minority interest, excluding those having fixed charges. |
| (2) | Grossed up at effective tax rate of 38.47% for the year ended 31 December 2017 and by 45.23%, 20.46%, 4.62% and 15.33% for the years ended 31 December, 2016, 2015, 2014 and 2013, respectively. |
