Exhibit 12(b) | ||||||||||||||
General Electric Company | ||||||||||||||
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | ||||||||||||||
Years ended December 31 | ||||||||||||||
(Dollars in millions) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||
General Electric Company and | ||||||||||||||
consolidated affiliates | ||||||||||||||
Earnings(a) | $ | 18,887 | $ | 13,624 | $ | 9,668 | $ | 19,681 | $ | 27,403 | ||||
Plus: | ||||||||||||||
Interest and other financial charges | ||||||||||||||
included in expense(b) | 14,545 | 15,553 | 17,697 | 24,344 | 22,344 | |||||||||
One-third of rental expense(c) | 528 | 570 | 604 | 474 | 645 | |||||||||
Adjusted “earnings” | $ | 33,960 | $ | 29,747 | $ | 27,969 | $ | 44,499 | $ | 50,392 | ||||
Fixed charges: | ||||||||||||||
Interest and other financial charges | ||||||||||||||
included in expense(b) | $ | 14,545 | $ | 15,553 | $ | 17,697 | $ | 24,344 | $ | 22,344 | ||||
Interest capitalized | 25 | 39 | 42 | 73 | 93 | |||||||||
One-third of rental expense(c) | 528 | 570 | 604 | 474 | 645 | |||||||||
Total fixed charges | $ | 15,098 | $ | 16,162 | $ | 18,343 | $ | 24,891 | $ | 23,082 | ||||
Ratio of earnings to fixed charges | 2.25 | 1.84 | 1.52 | 1.79 | 2.18 | |||||||||
Preferred stock dividend requirements | $ | 1,031 | $ | 300 | $ | 300 | $ | 75 | $ | – | ||||
Ratio of earnings before provision for | ||||||||||||||
income taxes to earnings from | ||||||||||||||
continuing operations | 1.40 | 1.08 | 0.90 | 1.07 | 1.18 | |||||||||
Preferred stock dividend factor on | ||||||||||||||
pre-tax basis | $ | 1,442 | $ | 324 | $ | 270 | $ | 80 | $ | – | ||||
Fixed charges | 15,098 | 16,162 | 18,343 | 24,891 | 23,082 | |||||||||
Total fixed charges and preferred stock | ||||||||||||||
dividend requirements | $ | 16,540 | $ | 16,486 | $ | 18,613 | $ | 24,971 | $ | 23,082 | ||||
Ratio of earnings to combined fixed | ||||||||||||||
charges and preferred stock dividends | 2.05 | 1.80 | 1.50 | 1.78 | 2.18 | |||||||||
(a) | Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees. |
(b) | Included interest on tax deficiencies. |
(c) | Considered to be representative of interest factor in rental expense. |