EXHIBIT 12
Alcoa and subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
Six months ended June 30, | 2008 | |||
Earnings: | ||||
Income from continuing operations before taxes on income | $ | 1,422 | ||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | |||
Equity income | (95 | ) | ||
Fixed charges added to earnings | 208 | |||
Distributed income of less than 50 percent-owned persons | 40 | |||
Amortization of capitalized interest: | ||||
Consolidated | 13 | |||
Proportionate share of 50%-owned persons | — | |||
Total earnings | $ | 1,588 | ||
Fixed Charges: | ||||
Interest expense: | ||||
Consolidated | $ | 186 | ||
Proportionate share of 50 percent-owned persons | — | |||
$ | 186 | |||
Amount representative of the interest factor in rents: | ||||
Consolidated | $ | 21 | ||
Proportionate share of 50 percent-owned persons | 1 | |||
$ | 22 | |||
Fixed charges added to earnings | $ | 208 | ||
Interest capitalized: | ||||
Consolidated | $ | 76 | ||
Proportionate share of 50 percent-owned persons | 1 | |||
$ | 77 | |||
Preferred stock dividend requirements of majority-owned subsidiaries | — | |||
Total fixed charges | $ | 285 | ||
Ratio of earnings to fixed charges | 5.6 | |||