Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions of pounds)
| 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | 1,934 | 10,512 | 2,938 | 6,604 | 6,571 | |||||||||||||||
Plus: Fixed charges | 769 | 795 | 775 | 814 | 865 | |||||||||||||||
Plus: Distributed income of income from equity investees | 42 | 5 | 5 | 18 | 46 | |||||||||||||||
Less: Preference security dividend | — | — | — | — | — | |||||||||||||||
Less: Minority interest in pre-tax income (1)(2) | 40 | — | — | 1 | 6 | |||||||||||||||
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Total Earnings | 2,705 | 11,312 | 3,718 | 7,435 | 7,476 | |||||||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense | 736 | 757 | 727 | 767 | 808 | |||||||||||||||
Interest within rental expense (1/3 of rentals) | 33 | 38 | 48 | 47 | 57 | |||||||||||||||
Preference security dividend (2) | — | — | — | — | — | |||||||||||||||
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Total fixed charges | 769 | 795 | 775 | 814 | 865 | |||||||||||||||
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Ratio of Earnings to Fixed Charges | 3.5 | 14.2 | 4.8 | 9.1 | 8.6 | |||||||||||||||
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| (1) | Minority interest, excluding those having fixed charges. |
| (2) | Grossed up at effective tax rate of 45.23% for the year ended 31 December 2016 and by 20.46%, 4.62%, 15.33%, 29.12%, for the years ended 31 December, 2015, 2014, 2013 and 2012, respectively. |
