Exhibit 12
HALLIBURTON COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(Millions of dollars, except for ratios)
Six Months Ended | Year Ended December 31 | ||||||||||||||||||
June 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||
Earnings available for fixed charges: | |||||||||||||||||||
Income (loss) from continuing | |||||||||||||||||||
operations before income taxes, | |||||||||||||||||||
minority interests, and | |||||||||||||||||||
cumulative effects of accounting | |||||||||||||||||||
changes, net | $ | 51 | $ | 612 | $ | (228 | ) | $ | 954 | $ | 335 | $ | 307 | ||||||
Add: | |||||||||||||||||||
Distributed earnings from | |||||||||||||||||||
equity in unconsolidated | |||||||||||||||||||
affiliates | 12 | 97 | 19 | 25 | 27 | 57 | |||||||||||||
Fixed charges | 141 | 203 | 168 | 209 | 203 | 194 | |||||||||||||
Subtotal | 204 | 912 | (41 | ) | 1,188 | 565 | 558 | ||||||||||||
Less: | |||||||||||||||||||
Undistributed equity in | |||||||||||||||||||
earnings and losses of | |||||||||||||||||||
unconsolidated affiliates | (15 | ) | 25 | 74 | 107 | 88 | 99 | ||||||||||||
Total | $ | 219 | $ | 887 | $ | (115 | ) | $ | 1,081 | $ | 477 | $ | 459 | ||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 109 | $ | 139 | $ | 113 | $ | 147 | $ | 146 | $ | 141 | |||||||
Rental expense representative | |||||||||||||||||||
of interest | 32 | 64 | 55 | 62 | 57 | 53 | |||||||||||||
Total | $ | 141 | $ | 203 | $ | 168 | $ | 209 | $ | 203 | $ | 194 | |||||||
Ratio of earnings to fixed charges | 1.6 | 4.4 | (a | ) | 5.2 | 2.3 | 2.4 | ||||||||||||
(a) For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $283 million.