EXHIBIT 12
Alcoa and subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
Six months ended June 30, | 2007 | |||
Earnings: | ||||
Income from continuing operations before taxes on income | $ | 2,303 | ||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | |||
Equity income | (51 | ) | ||
Fixed charges | 199 | |||
Distributed income of less than 50%-owned persons | 12 | |||
Amortization of capitalized interest | 11 | |||
Total earnings | $ | 2,474 | ||
Fixed Charges: | ||||
Interest expense: | ||||
Consolidated | $ | 169 | ||
Proportionate share of 50%-owned persons | 2 | |||
$ | 171 | |||
Amount representative of the interest factor in rents: | ||||
Consolidated | $ | 27 | ||
Proportionate share of 50%-owned persons | 1 | |||
$ | 28 | |||
Fixed charges added to earnings | $ | 199 | ||
Interest capitalized: | ||||
Consolidated | $ | 99 | ||
Proportionate share of 50%-owned persons | 2 | |||
$ | 101 | |||
Preferred stock dividend requirements of majority-owned subsidiaries | — | |||
Total fixed charges | $ | 300 | ||
Ratio of earnings to fixed charges | 8.2 | |||