EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges: | Three Months Ended March 31, 2012 | Year Ended December 31, | ||||||||||||||||||
2011 | 2010 | 2009 | 2008 | |||||||||||||||||
Dollars in Millions | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 2,027 | $ | 6,981 | $ | 6,071 | $ | 5,602 | $ | 4,776 | ||||||||||
Less: | ||||||||||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries | 605 | 2,323 | 2,074 | 1,717 | 1,444 | |||||||||||||||
Equity in net income of affiliates | 57 | 281 | 313 | 550 | 617 | |||||||||||||||
Capitalized interest | — | — | 8 | 13 | 21 | |||||||||||||||
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Adjusted income | 1,365 | 4,377 | 3,676 | 3,322 | 2,694 | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 53 | 190 | 201 | 242 | 387 | |||||||||||||||
Distributed income of equity investments | 67 | 283 | 313 | 550 | 590 | |||||||||||||||
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Total Earnings | $ | 1,485 | $ | 4,850 | $ | 4,190 | $ | 4,114 | $ | 3,671 | ||||||||||
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Fixed Charges | ||||||||||||||||||||
Interest expense | $ | 42 | $ | 145 | $ | 145 | $ | 184 | $ | 310 | ||||||||||
Capitalized interest | — | — | 8 | 13 | 21 | |||||||||||||||
One-third of rental expense(1) | 11 | 45 | 48 | 45 | 56 | |||||||||||||||
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Total Fixed Charges | $ | 53 | $ | 190 | $ | 201 | $ | 242 | $ | 387 | ||||||||||
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Ratio of Earnings to Fixed Charges | 28.02 | 25.53 | 20.85 | 17.00 | 9.49 |
(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