Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
(in millions, except ratios)
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before taxes on income | $ | 4,491 | $ | 3,432 | $ | 1,970 | $ | 2,153 | $ | 1,645 | ||||||||||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | — | — | — | — | |||||||||||||||
Equity income | (71 | ) | (72 | ) | (26 | ) | (145 | ) | (138 | ) | ||||||||||
Fixed charges added to earnings | 458 | 440 | 387 | 313 | 346 | |||||||||||||||
Distributed income of less than 50 percent-owned persons | 51 | 37 | 40 | 59 | 35 | |||||||||||||||
Amortization of capitalized interest: | ||||||||||||||||||||
Consolidated | 21 | 21 | 25 | 25 | 21 | |||||||||||||||
Proportionate share of 50 percent-owned persons | — | — | — | — | — | |||||||||||||||
Total earnings | $ | 4,950 | $ | 3,858 | $ | 2,396 | $ | 2,405 | $ | 1,909 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense: | ||||||||||||||||||||
Consolidated | $ | 401 | $ | 384 | $ | 339 | $ | 271 | $ | 314 | ||||||||||
Proportionate share of 50 percent-owned persons | 3 | 5 | 3 | 3 | 4 | |||||||||||||||
404 | 389 | 342 | 274 | 318 | ||||||||||||||||
Amount representative of the interest factor in rents: | ||||||||||||||||||||
Consolidated | 52 | 49 | 43 | 37 | 27 | |||||||||||||||
Proportionate share of 50 percent-owned persons | 2 | 2 | 2 | 2 | 1 | |||||||||||||||
54 | 51 | 45 | 39 | 28 | ||||||||||||||||
Fixed charges added to earnings | 458 | 440 | 387 | 313 | 346 | |||||||||||||||
Interest capitalized: | ||||||||||||||||||||
Consolidated | 199 | 128 | 58 | 27 | 21 | |||||||||||||||
Proportionate share of 50 percent-owned persons | 4 | 2 | — | — | — | |||||||||||||||
203 | 130 | 58 | 27 | 21 | ||||||||||||||||
Preferred stock dividend requirements of majority-owned subsidiaries | — | — | — | — | — | |||||||||||||||
Total fixed charges | $ | 661 | $ | 570 | $ | 445 | $ | 340 | $ | 367 | ||||||||||
Ratio of earnings to fixed charges | 7.5 | 6.8 | 5.4 | 7.1 | 5.2 | |||||||||||||||