Exhibit 12
HALLIBURTON COMPANY
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(Millions of dollars, except ratios)
For the Six | |||||||||||||||||||
Months Ended | Years Ended December 31 | ||||||||||||||||||
June 30, 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||
Earnings available for fixed charges: | |||||||||||||||||||
Income (loss) from continuing | |||||||||||||||||||
operations before income taxes, | |||||||||||||||||||
minority interest, and cumulative | |||||||||||||||||||
effects of accounting changes, net | $ | 1,446 | $ | 2,448 | $ | 634 | $ | 596 | $ | (253 | ) | $ | 940 | ||||||
Add: | |||||||||||||||||||
Distributed earnings from equity | |||||||||||||||||||
in unconsolidated affiliates | 33 | 98 | 61 | 113 | 33 | 38 | |||||||||||||
Fixed charges | 127 | 281 | 295 | 203 | 168 | 209 | |||||||||||||
Subtotal | 1,606 | 2,827 | 990 | 912 | (52 | ) | 1,187 | ||||||||||||
Less: | |||||||||||||||||||
Minority interest in pretax loss of | |||||||||||||||||||
subsidiaries that have not | |||||||||||||||||||
incurred fixed charges | (77 | ) | - | - | - | - | - | ||||||||||||
Undistributed equity in earnings | |||||||||||||||||||
(losses) of unconsolidated | |||||||||||||||||||
affiliates | 12 | (26 | ) | (6 | ) | 18 | 74 | 107 | |||||||||||
Total earnings available for fixed charges | $ | 1,671 | $ | 2,853 | $ | 996 | $ | 894 | $ | (126 | ) | $ | 1,080 | ||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 90 | $ | 207 | $ | 229 | $ | 139 | $ | 113 | $ | 147 | |||||||
Rental expense representative | |||||||||||||||||||
of interest | 37 | 74 | 66 | 64 | 55 | 62 | |||||||||||||
Total fixed charges | $ | 127 | $ | 281 | $ | 295 | $ | 203 | $ | 168 | $ | 209 | |||||||
Ratio of earnings to fixed charges | 13.2 | 10.2 | 3.4 | 4.4 | (a | ) | 5.2 |
(a) For the year ended December 31, 2002, earnings were inadequate to cover fixed charges by $294 million.
All periods presented reflect the reclassification of KBR’s Production Services operations to discontinued operations.
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