Exhibit 12
Alcoa and subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
Nine months ended September 30, | 2008 | |||
Earnings: | ||||
Income from continuing operations before taxes on income | $ | 1,892 | ||
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | |||
Equity income | (127 | ) | ||
Fixed charges added to earnings | 321 | |||
Distributed income of less than 50 percent-owned persons | 60 | |||
Amortization of capitalized interest: | ||||
Consolidated | 20 | |||
Proportionate share of 50%-owned persons | — | |||
Total earnings | $ | 2,166 | ||
Fixed Charges: | ||||
Interest expense: | ||||
Consolidated | $ | 283 | ||
Proportionate share of 50 percent-owned persons | 1 | |||
$ | 284 | |||
Amount representative of the interest factor in rents: | ||||
Consolidated | $ | 36 | ||
Proportionate share of 50 percent-owned persons | 1 | |||
$ | 37 | |||
Fixed charges added to earnings | $ | 321 | ||
Interest capitalized: | ||||
Consolidated | $ | 120 | ||
Proportionate share of 50 percent-owned persons | 1 | |||
$ | 121 | |||
Preferred stock dividend requirements of majority-owned subsidiaries | — | |||
Total fixed charges | $ | 442 | ||
Ratio of earnings to fixed charges | 4.9 | |||