EXHIBIT 12
Ratio of Earnings to Fixed Charges
and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(Dollars in millions)
Nine Months Ended
August 31, August 31,
1997 1996
Ratio of Earnings to Fixed
Charges
Earnings:
Income before income taxes $ 2,917 $ 2,386
Add: Fixed charges, net 8,027 6,998
Income before income taxes and ------- -------
fixed charges, net $10,944 $ 9,384
Fixed charges:
Total interest expense $ 7,952 $ 6,927
Interest factor in rents 74 70
------- -------
Total fixed charges $ 8,026 $ 6,997
Ratio of earnings to fixed 1.4 1.3
charges
Ratio of Earnings to Fixed
Charges and Preferred Stock
Dividends
Earnings:
Income before income taxes $ 2,917 $ 2,386
Add: Fixed charges, net 8,027 6,998
------ ------
Income before income taxes
and fixed charges, net $10,944 $ 9,384
Fixed charges:
Total interest expense $ 7,952 $ 6,927
Interest factor in rents 74 70
Preferred stock dividends 85 74
------- -------
Total fixed charges and
preferred stock dividends $ 8,111 $ 7,071
Ratio of earnings to fixed 1.3 1.3
charges and preferred stock
dividends
Fiscal Year
1996 1995 1994 1993 1992
Ratio of Earnings to Fixed
Charges
Earnings:
Income before income taxes $ 3,117 $ 2,292 $ 1,962 $ 2,175 $ 1,546
Add: Fixed charges, net 9,026 8,285 6,787 5,705 5,394
------- ------- ------- ------- -------
Income before income taxes and $12,143 $10,577 $ 8,749 $ 7,880 $ 6,940
fixed charges, net ------- ------- ------- ------- -------
Fixed charges:
Total interest expense $ 8,934 $ 8,190 $ 6,697 $ 5,620 $ 5,346
Interest factor in rents 92 95 90 85 80
------- ------- ------- ------- -------
Total fixed charges $ 9,026 $ 8,285 $ 6,787 $ 5,705 $ 5,426
Ratio of earnings to fixed 1.3 1.3 1.3 1.4 1.3
charges
Ratio of Earnings to Fixed
Charges and Preferred Stock
Dividends
Earnings:
Income before income taxes $ 3,117 $ 2,292 $ 1,962 $ 2,175 $ 1,546
Add: Fixed charges, net 9,026 8,285 6,787 5,705 5,394
------- ------- ------- ------- -------
Income before income taxes and
fixed charges, net $12,143 $10,577 $ 8,749 $ 7,880 $ 6,940
------- ------- ------- ------- -------
Fixed charges:
Total interest expense $ 8,934 $ 8,190 $ 6,697 $ 5,620 $ 5,346
Interest factor in rents 92 95 90 85 80
Preferred stock dividends 101 95 94 83 81
Total fixed charges and ------- ------- ------- ------- -------
preferred stock dividends $ 9,127 $ 8,380 $ 6,881 $ 5,788 $ 5,507
Ratio of earnings to fixed 1.3 1.3 1.3 1.4 1.3
charges and preferred stock
dividends
- -------------------
(1) For purposes of calculating the ratio of earnings to fixed charges and the
ratio of earnings to fixed charges and preferred stock dividends, earnings
consist of income before income taxes and fixed charges (exclusive of
preferred stock dividends). Additionally, "earnings" in 1992 excludes a
nonrecurring gain of $32.1 million from the initial public offering of
25.7% of SPS Transaction Services, Inc. For purposes of calculating both
ratios, fixed charges include interest expenses, capitalized interest and
that portion of rentals representative of an interest factor.