EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Nine months ended September 30, | 2008 | 2007 | ||||||
| (dollars are in millions) | ||||||||
| (Loss) income from continuing operations | $ | (1,446 | ) | $ | (282 | ) | ||
| Income tax expense | (683 | ) | 239 | |||||
| Income from continuing operations before income tax expense | (2,129 | ) | (43 | ) | ||||
| Fixed charges: | ||||||||
| Interest expense | 4,990 | 5,955 | ||||||
Interest portion of rentals(1) | 29 | 39 | ||||||
| Total fixed charges | 5,019 | 5,994 | ||||||
| Total earnings from continuing operations as defined | $ | 2,890 | $ | 5,951 | ||||
| Ratio of earnings to fixed charges | .58 | .99 | ||||||
Preferred stock dividends(2) | 43 | 44 | ||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends | .57 | .99 | ||||||
| (1) | Represents one-third of rentals, which approximates the portion representing interest. |
| (2) | Preferred stock dividends are grossed up to their pretax equivalents. |