Exhibit 12
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In millions, except ratios) | ||||||||||||||||||||
Year Ended June 30, | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings (a) | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 22,267 | $ | 28,071 | $ | 25,013 | $ | 19,821 | $ | 23,814 | ||||||||||
Add: Fixed charges | 435 | 349 | 207 | 88 | 151 | |||||||||||||||
Add: Cash distributions from equity method investments | 74 | 14 | 14 | 85 | 10 | |||||||||||||||
Subtract: Income from equity method investments | 27 | 110 | 18 | 81 | 62 | |||||||||||||||
Total Earnings | $ | 22,749 | $ | 28,324 | $ | 25,216 | $ | 19,913 | $ | 23,913 | ||||||||||
Fixed Charges (b) | ||||||||||||||||||||
Interest expense | $ | 345 | $ | 264 | $ | 146 | $ | 38 | $ | 106 | ||||||||||
Capitalized debt related expenses | 35 | 31 | 5 | 0 | 0 | |||||||||||||||
Interest component of rental expense | 55 | 54 | 56 | 50 | 45 | |||||||||||||||
Total Fixed Charges | $ | 435 | $ | 349 | $ | 207 | $ | 88 | $ | 151 | ||||||||||
Ratio of Earnings to Fixed Charges | 52 | 81 | 122 | 226 | 158 |
(a) | Earnings represent earnings from continuing operations before income taxes and before income (losses) from equity method investments plus: (1) fixed charges; and (2) cash distributions from equity method investments. |
(b) | Fixed charges include: (1) interest expense; (2) capitalized debt issuance costs; and (3) the portion of operating rental expense which management believes is representative of the interest component of rental expense. |