EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges: | Six Months Ended June 30, | Years Ended December 31, | ||||||||||||||||
Dollars in Millions | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||
Earnings | ||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 3,044 | $ | 5,602 | $ | 4,776 | $ | 2,523 | $ | 1,450 | $ | 3,398 | ||||||
Less: | ||||||||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges | 1,020 | 1,717 | 1,444 | 1,106 | 609 | 812 | ||||||||||||
Equity in net income of affiliates | 182 | 550 | 617 | 524 | 474 | 334 | ||||||||||||
Capitalized interest | 4 | 13 | 21 | 24 | 16 | 8 | ||||||||||||
Income adjusted for equity income | 1,838 | 3,322 | 2,694 | 869 | 351 | 2,244 | ||||||||||||
Add: | ||||||||||||||||||
Fixed charges | 94 | 242 | 387 | 497 | 560 | 403 | ||||||||||||
Distributed income of equity investments | 88 | 550 | 590 | 488 | 439 | 383 | ||||||||||||
Total Earnings | $ | 2,020 | $ | 4,114 | $ | 3,671 | $ | 1,854 | $ | 1,350 | $ | 3,030 | ||||||
Fixed Charges | ||||||||||||||||||
Interest | $ | 65 | $ | 184 | $ | 310 | $ | 422 | $ | 498 | $ | 349 | ||||||
Capitalized interest | 4 | 13 | 21 | 24 | 16 | 8 | ||||||||||||
One-third of rental expense(1) | 25 | 45 | 56 | 51 | 46 | 46 | ||||||||||||
Total Fixed Charges | $ | 94 | $ | 242 | $ | 387 | $ | 497 | $ | 560 | $ | 403 | ||||||
Ratio of Earnings to Fixed Charges | 21.49 | 17.00 | 9.49 | 3.73 | 2.41 | 7.52 |
(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. |
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