Exhibit 12. Computation of Ratios
Ratio of Earnings to Fixed Charges
Dollars in millions
| Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||
| 2012 | 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Earnings available for fixed charges | ||||||||||||||||||||||||||||
- Income from continuing operations before provision for Income taxes and cumulative effect of accounting changes | $ | 3,857.5 | $ | 3,765.3 | $ | 8,012.2 | $ | 7,000.3 | $ | 6,487.0 | $ | 6,158.0 | $ | 3,572.1 | (1) | |||||||||||||
- Noncontrolling interest expense in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates | 5.2 | 5.7 | 13.3 | 10.4 | 7.5 | 10.7 | 7.2 | |||||||||||||||||||||
- Income tax provision (benefit) of 50%- owned affiliates included in income from continuing operations before provision for income taxes | 34.5 | 33.3 | 65.5 | 28.7 | 47.7 | 30.0 | 22.4 | |||||||||||||||||||||
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | 176.1 | 167.6 | 339.4 | 315.4 | 302.8 | 321.3 | 312.8 | |||||||||||||||||||||
- Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* | 274.7 | 256.1 | 520.5 | 479.1 | 504.5 | 556.8 | 442.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| $ | 4,348.0 | $ | 4,228.0 | $ | 8,950.9 | $ | 7,833.9 | $ | 7,349.5 | $ | 7,076.8 | $ | 4,357.2 | |||||||||||||||
Fixed charges | ||||||||||||||||||||||||||||
- Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* | $ | 176.1 | $ | 167.6 | $ | 339.4 | $ | 315.4 | $ | 302.8 | $ | 321.3 | $ | 312.8 | ||||||||||||||
- Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* | 268.8 | 247.4 | 503.0 | 461.5 | 486.9 | 539.7 | 425.9 | |||||||||||||||||||||
- Capitalized interest* | 6.8 | 6.4 | 14.0 | 12.0 | 11.9 | 12.5 | 7.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| $ | 451.7 | $ | 421.4 | $ | 856.4 | $ | 788.9 | $ | 801.6 | $ | 873.5 | $ | 745.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratio of earnings to fixed charges | 9.63 | �� | 10.03 | 10.45 | 9.93 | 9.17 | 8.10 | 5.84 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| * | Includes amounts of the Company and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges. |
| (1) | Includes pretax charges of $1.7 billion primarily related to impairment in connection with the Company’s sale of its Latin American businesses to a developmental licensee. |