Exhibit 12
Alcoa and subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio)
Nine months ended September 30, | 2010 | |||
Earnings: | ||||
Income from continuing operations before income taxes | $ | 200 | ||
Noncontrolling interests’ share of earnings of majority-owned subsidiaries without fixed charges | — | |||
Equity income | (52 | ) | ||
Fixed charges added to earnings | 404 | |||
Distributed income of less than 50 percent-owned persons | 26 | |||
Amortization of capitalized interest: | ||||
Consolidated | 29 | |||
Proportionate share of 50 percent-owned persons | — | |||
Total earnings | $ | 607 | ||
Fixed Charges: | ||||
Interest expense: | ||||
Consolidated | $ | 376 | ||
Proportionate share of 50 percent-owned persons | — | |||
$ | 376 | |||
Amount representative of the interest factor in rents: | ||||
Consolidated | $ | 28 | ||
Proportionate share of 50 percent-owned persons | — | |||
$ | 28 | |||
Fixed charges added to earnings | $ | 404 | ||
Interest capitalized: | ||||
Consolidated | $ | 70 | ||
Proportionate share of 50 percent-owned persons | — | |||
$ | 70 | |||
Preferred stock dividend requirements of majority-owned subsidiaries | — | |||
Total fixed charges | $ | 474 | ||
Ratio of earnings to fixed charges | 1.3 | |||