Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31
(in millions, except ratios)
2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before taxes on income and before accounting change | $ | 1,669 | $ | 902 | $ | 1,633 | $ | 2,789 | $ | 1,842 | ||||||||||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | — | — | 1 | — | |||||||||||||||
Less equity earnings | (138 | ) | (72 | ) | (118 | ) | (115 | ) | (55 | ) | ||||||||||
Fixed charges added to earnings | 349 | 382 | 422 | 469 | 232 | |||||||||||||||
Distributed income of less than 50% owned persons | 35 | 21 | 23 | 9 | 9 | |||||||||||||||
Amortization of capitalized interest: | ||||||||||||||||||||
Consolidated | 21 | 14 | 13 | 15 | 15 | |||||||||||||||
Proportionate share of 50% owned persons | — | — | — | — | — | |||||||||||||||
Total earnings | $ | 1,936 | $ | 1,247 | $ | 1,973 | $ | 3,168 | $ | 2,043 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense: | ||||||||||||||||||||
Consolidated | $ | 314 | $ | 350 | $ | 371 | $ | 427 | $ | 195 | ||||||||||
Proportionate share of 50% owned persons | 4 | 4 | 6 | 6 | 4 | |||||||||||||||
318 | 354 | 377 | 433 | 199 | ||||||||||||||||
Amount representative of the interest factor in rents: | ||||||||||||||||||||
Consolidated | 30 | 27 | 43 | 34 | 32 | |||||||||||||||
Proportionate share of 50% owned persons | 1 | 1 | 2 | 2 | 1 | |||||||||||||||
31 | 28 | 45 | 36 | 33 | ||||||||||||||||
Fixed charges added to earnings | 349 | 382 | 422 | 469 | 232 | |||||||||||||||
Interest capitalized: | ||||||||||||||||||||
Consolidated | 21 | 22 | 22 | 20 | 21 | |||||||||||||||
Proportionate share of 50% owned persons | — | — | — | — | — | |||||||||||||||
21 | 22 | 22 | 20 | 21 | ||||||||||||||||
Total fixed charges | $ | 370 | $ | 404 | $ | 444 | $ | 489 | $ | 253 | ||||||||||
Ratio of earnings to fixed charges | 5.2 | 3.1 | 4.4 | 6.5 | 8.1 | |||||||||||||||
The financial information of all prior periods has been reclassified to reflect discontinued operations.