Exhibit 12
HALLIBURTON COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(Millions of dollars, except ratios)
For the Nine | |||||||||||||||||||
Months Ended | Years Ended December 31 | ||||||||||||||||||
September 30, 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||
Earnings available for fixed charges: | |||||||||||||||||||
Income (loss) from continuing | |||||||||||||||||||
operations before income taxes, | |||||||||||||||||||
minority interest, and cumulative | |||||||||||||||||||
effects of accounting changes, net | $ | 1,751 | $ | 651 | $ | 612 | $ | (228 | ) | $ | 954 | $ | 335 | ||||||
Add: | |||||||||||||||||||
Distributed earnings from equity | |||||||||||||||||||
in unconsolidated affiliates | 91 | 61 | 113 | 33 | 38 | 34 | |||||||||||||
Fixed charges | 204 | 295 | 203 | 168 | 209 | 203 | |||||||||||||
Subtotal | 2,046 | 1,007 | 928 | (27 | ) | 1,201 | 572 | ||||||||||||
Less: | |||||||||||||||||||
Undistributed equity in | |||||||||||||||||||
earnings and losses of | |||||||||||||||||||
unconsolidated affiliates | (19 | ) | 2 | 25 | 74 | 107 | 88 | ||||||||||||
Total earnings available for fixed charges | $ | 2,065 | $ | 1,005 | $ | 903 | $ | (101 | ) | $ | 1,094 | $ | 484 | ||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 154 | $ | 229 | $ | 139 | $ | 113 | $ | 147 | $ | 146 | |||||||
Rental expense representative | |||||||||||||||||||
of interest | 50 | 66 | 64 | 55 | 62 | 57 | |||||||||||||
Total fixed charges | $ | 204 | $ | 295 | $ | 203 | $ | 168 | $ | 209 | $ | 203 | |||||||
Ratio of earnings to fixed charges | 10.1 | 3.4 | 4.4 | (a | ) | 5.2 | 2.4 |
(a) For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $269 million.