Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31
(in millions, except ratios)
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before taxes on income and before accounting change | $ | 2,204 | $ | 1,710 | $ | 1,007 | $ | 1,623 | $ | 2,697 | ||||||||||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | — | — | — | 1 | |||||||||||||||
Less equity earnings | (145 | ) | (138 | ) | (72 | ) | (118 | ) | (115 | ) | ||||||||||
Fixed charges added to earnings | 314 | 347 | 380 | 420 | 469 | |||||||||||||||
Distributed income of less than 50% owned persons | 59 | 35 | 21 | 23 | 9 | |||||||||||||||
Amortization of capitalized interest: | ||||||||||||||||||||
Consolidated | 25 | 21 | 14 | 13 | 15 | |||||||||||||||
Proportionate share of 50% owned persons | — | — | — | — | — | |||||||||||||||
Total earnings | $ | 2,457 | $ | 1,975 | $ | 1,350 | $ | 1,961 | $ | 3,076 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense: | ||||||||||||||||||||
Consolidated | $ | 271 | $ | 314 | $ | 350 | $ | 371 | $ | 427 | ||||||||||
Proportionate share of 50% owned persons | 3 | 4 | 4 | 6 | 6 | |||||||||||||||
274 | 318 | 354 | 377 | 433 | ||||||||||||||||
Amount representative of the interest factor in rents: | ||||||||||||||||||||
Consolidated | 38 | 28 | 25 | 41 | 34 | |||||||||||||||
Proportionate share of 50% owned persons | 2 | 1 | 1 | 2 | 2 | |||||||||||||||
40 | 29 | 26 | 43 | 36 | ||||||||||||||||
Fixed charges added to earnings | 314 | 347 | 380 | 420 | 469 | |||||||||||||||
Interest capitalized: | ||||||||||||||||||||
Consolidated | 27 | 21 | 22 | 22 | 20 | |||||||||||||||
Proportionate share of 50% owned persons | — | — | — | — | — | |||||||||||||||
27 | 21 | 22 | 22 | 20 | ||||||||||||||||
Total fixed charges | $ | 341 | $ | 368 | $ | 402 | $ | 442 | $ | 489 | ||||||||||
Ratio of earnings to fixed charges | 7.2 | 5.4 | 3.4 | 4.4 | 6.3 | |||||||||||||||
The | financial information of all prior periods has been reclassified to reflect discontinued operations. |
40