EXHIBIT (12) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ------------------------------------------------- COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ------------------------------------------------- Amounts in millions Six Months Ended Years Ended June 30 December 31 ----------------------------------------------------- -------------------- 2001 2002 2003 2004 2005 2004 2005 --------- --------- --------- --------- --------- --------- --------- 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 $ 4,098 $ 5,837 $ 7,219 $ 9,010 $ 9,954 $ 5,679 $ 6,559 Fixed charges (excluding capitalized interest) 872 687 657 719 924 428 584 --------- --------- --------- --------- --------- --------- --------- TOTAL EARNINGS, AS DEFINED $ 4,970 $ 6,524 $ 7,876 $ 9,729 $10,878 $ 6,107 $ 7,143 ========= ========= ========= ========= ========== ========= ========= FIXED CHARGES, AS DEFINED Interest expense (including capitalized interest) $ 794 $ 603 $ 561 $ 629 $ 869 $ 400 $ 534 1/3 of rental expense 78 84 96 90 90 47 66 --------- --------- --------- --------- --------- --------- --------- TOTAL FIXED CHARGES, AS DEFINED $ 872 $ 687 $ 657 $ 719 $ 959 $ 447 $ 600 ========= ========= ========= ========= ========== ========= ========= RATIO OF EARNINGS TO FIXED CHARGES 5.7x 9.5x 12.0x 13.5x 11.3x 13.7x 11.9x