EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
(dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Earnings before income taxes | $ | 8,915 | $ | 8,622 | $ | 7,959 | $ | 7,383 | $ | 5,808 | ||||||||||
Fixed charges | 839 | 732 | 594 | 570 | 642 | |||||||||||||||
Total earnings available for fixed charges | $ | 9,754 | $ | 9,354 | $ | 8,553 | $ | 7,953 | $ | 6,450 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 708 | $ | 632 | $ | 505 | $ | 481 | $ | 551 | ||||||||||
Interest component of rental payments | 131 | 100 | 89 | 89 | 91 | |||||||||||||||
Total fixed charges | $ | 839 | $ | 732 | $ | 594 | $ | 570 | $ | 642 | ||||||||||
Ratio of earnings to fixed charges | 11.6 | 12.8 | 14.4 | 14.0 | 10.0 |
(a) | The Company had no preference equity securities outstanding and did not pay preferred dividends in any of the periods presented. Consequently, the Company's ratio of earnings to combined fixed charges and preferred stock dividends for each of such periods is identical to the Company's ratio of earnings to fixed charges as indicated above. |
The ratio of earnings to fixed charges is computed by dividing total earnings available for fixed charges by the fixed charges. For purposes of computing this ratio, fixed charges consist of interest expense plus the interest factor in rental expense.