EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges: | Nine Months Ended September 30, 2011 | Year Ended December 31, | ||||||||||||||||||
2010 | 2009 | 2008 | 2007 | |||||||||||||||||
Dollars in Millions | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 5,387 | $ | 6,071 | $ | 5,602 | $ | 4,776 | $ | 2,523 | ||||||||||
Less: | ||||||||||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries | ||||||||||||||||||||
that have not incurred fixed charges | 1,764 | 2,074 | 1,717 | 1,444 | 1,106 | |||||||||||||||
Equity in net income of affiliates | 215 | 313 | 550 | 617 | 524 | |||||||||||||||
Capitalized interest | — | 8 | 13 | 21 | 24 | |||||||||||||||
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Adjusted income | 3,408 | 3,676 | 3,322 | 2,694 | 869 | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 133 | 201 | 242 | 387 | 497 | |||||||||||||||
Distributed income of equity investments | 224 | 313 | 550 | 590 | 488 | |||||||||||||||
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Total Earnings | $ | 3,765 | $ | 4,190 | $ | 4,114 | $ | 3,671 | $ | 1,854 | ||||||||||
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Fixed Charges | ||||||||||||||||||||
Interest expense | $ | 103 | $ | 145 | $ | 184 | $ | 310 | $ | 422 | ||||||||||
Capitalized interest | — | 8 | 13 | 21 | 24 | |||||||||||||||
One-third of rental expense(1) | 30 | 48 | 45 | 56 | 51 | |||||||||||||||
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Total Fixed Charges | $ | 133 | $ | 201 | $ | 242 | $ | 387 | $ | 497 | ||||||||||
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Ratio of Earnings to Fixed Charges | 28.31 | 20.85 | 17.00 | 9.49 | 3.73 |
(1) | Rents included in the computation consist of one-third of rental expense which the Company believes to be a reasonable estimate of an interest factor in its leases. |
E-12-1