General Electric (GE) 10-Q 2018 Q2 Quarterly report

Exhibit 12(b)
General Electric Company
Computation of Ratio of Earnings to Fixed Charges and
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
Six months ended June 30, 2018
(Unaudited)
(Dollars in millions)
General Electric Company and consolidated affiliates
Earnings(a)	$	1,960
Plus:
Interest and other financial charges included in expense(b)	2,615
One-third of rental expense(c)	243
Adjusted "earnings"	$	4,818
Fixed charges:
Interest and other financial charges included in expense(b)	$	2,615
Interest capitalized	27
One-third of rental expense(c)	243
Total fixed charges	$	2,885
Ratio of earnings to fixed charges	1.67
Preferred stock dividend requirements	$	222
Ratio of earnings before provision for
income taxes to earnings from
continuing operations	1.48
Preferred stock dividend factor on pre-tax basis	$	328
Fixed charges	2,885
Total fixed charges and preferred stock
dividend requirements	$	3,213
Ratio of earnings to combined fixed
charges and preferred stock dividends	1.50

(a) Earnings before income taxes, noncontrolling interests, discontinued operations and undistributed earnings of equity investees.

(b) Included interest on tax deficiencies and interest on discontinued operations.

(c) Considered to be representative of interest factor in rental expense.