EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Years Ended June 30 | Six Months Ended December 31 | ||||||||||||||||||||
| Amounts in millions | 2004 | 2005 | 2006 | 2007 | 2008 | 2007 | 2008 | ||||||||||||||
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 | $ | 8,646 | $ | 9,512 | $ | 12,087 | $ | 14,299 | $ | 15,674 | $ | 8,614 | $ | 8,644 | |||||||
Fixed charges (excluding capitalized interest) | 719 | 924 | 1,242 | 1,428 | 1,604 | 835 | 780 | ||||||||||||||
TOTAL EARNINGS, AS DEFINED | $ | 9,365 | $ | 10,436 | $ | 13,329 | $ | 15,727 | $ | 17,278 | $ | 9,449 | $ | 9,424 | |||||||
FIXED CHARGES, AS DEFINED | |||||||||||||||||||||
Interest expense (including capitalized interest) | $ | 629 | $ | 869 | $ | 1,153 | $ | 1,374 | $ | 1,546 | $ | 788 | $ | 729 | |||||||
1/3 of rental expense | 90 | 90 | 122 | 124 | 137 | 64 | 71 | ||||||||||||||
TOTAL FIXED CHARGES, AS DEFINED | $ | 719 | $ | 959 | $ | 1,275 | $ | 1,498 | $ | 1,683 | $ | 852 | $ | 800 | |||||||
RATIO OF EARNINGS TO FIXED CHARGES | 13.0x | 10.9x | 10.5x | 10.5x | 10.3x | 11.1x | 11.8x | ||||||||||||||