EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Amounts in millions
| Years Ended June 30 | ||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
| EARNINGS, AS DEFINED | ||||||||||||||||||||
| Earnings from operations before income taxes and before adjustments for minority interests in consolidated subsidiaries and after eliminating undistributed earnings of equity method investees | $ | 14,746 | $ | 12,419 | $ | 9,954 | $ | 9,010 | $ | 7,219 | ||||||||||
| Fixed charges, excluding capitalized interest | 1,428 | 1,242 | 924 | 719 | 657 | |||||||||||||||
| TOTAL EARNINGS, AS DEFINED | $ | 16,174 | $ | 13,661 | $ | 10,878 | $ | 9,729 | $ | 7,876 | ||||||||||
| FIXED CHARGES, AS DEFINED | ||||||||||||||||||||
| Interest expense (including capitalized interest) | $ | 1,374 | $ | 1,153 | $ | 869 | $ | 629 | $ | 561 | ||||||||||
1/3 of rental expense(1) | 124 | 122 | 90 | 90 | 96 | |||||||||||||||
| TOTAL FIXED CHARGES, AS DEFINED | $ | 1,498 | $ | 1,275 | $ | 959 | $ | 719 | $ | 657 | ||||||||||
| RATIO OF EARNINGS TO FIXED CHARGES | 10.8 | x | 10.7 | x | 11.3 | x | 13.5 | x | 12.0 | x | ||||||||||
| (1) | Considered to be representative of interest factor in rental expense. |