EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges: | Six Months Ended June 30, | Year Ended December 31, | ||||||||||||||||
Dollars in Millions | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||
Earnings | ||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 3,125 | $ | 5,471 | $ | 3,186 | $ | 2,085 | $ | 4,016 | $ | 3,911 | ||||||
Less: | ||||||||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges | 815 | 1,444 | 1,106 | 609 | 812 | 704 | ||||||||||||
Equity in net income of affiliates | 296 | 617 | 524 | 474 | 334 | 273 | ||||||||||||
Capitalized interest | 8 | 23 | 27 | 18 | 9 | 10 | ||||||||||||
Income adjusted for equity income | 2,006 | 3,387 | 1,529 | 984 | 2,861 | 2,924 | ||||||||||||
Add: | ||||||||||||||||||
Fixed charges | 132 | 393 | 504 | 566 | 408 | 369 | ||||||||||||
Distributed income of equity investments | 287 | 590 | 488 | 439 | 383 | 278 | ||||||||||||
Pre-tax losses of equity investees | 5 | 17 | 12 | 10 | 9 | 3 | ||||||||||||
Total Earnings | $ | 2,430 | $ | 4,387 | $ | 2,533 | $ | 1,999 | $ | 3,661 | $ | 3,574 | ||||||
Fixed Charges | ||||||||||||||||||
Interest and debt expense | $ | 94 | $ | 310 | $ | 422 | $ | 498 | $ | 349 | $ | 310 | ||||||
Capitalized interest | 8 | 23 | 27 | 18 | 9 | 10 | ||||||||||||
One-third of rental expense(1) | 30 | 60 | 55 | 50 | 50 | 49 | ||||||||||||
Total Fixed Charges | $ | 132 | $ | 393 | $ | 504 | $ | 566 | $ | 408 | $ | 369 | ||||||
Ratio of Earnings to Fixed Charges | 18.41 | 11.16 | 5.03 | 3.53 | 8.97 | 9.69 |
(1) | Rents included in the computation consist of one-third of rental expense which the Company believes to be a conservative estimate of an interest factor in its leases, which are not material. |