EXHIBIT 12
KRAFT FOODS INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
----------
Six Months Ended Three Months Ended
June 30, 2002 June 30, 2002
---------------- ------------------
Earnings before income taxes and minority interest $2,472 $1,398
Add (Deduct):
Equity in net earnings of less than 50% owned affiliates (19) (11)
Dividends from less than 50% owned affiliates 26 4
Fixed charges 511 246
Interest capitalized, net of amortization (1) (1)
------ ------
Earnings available for fixed charges $2,989 $1,636
====== ======
Fixed charges:
Interest incurred:
Interest expense $ 447 $ 214
Capitalized interest 2 1
------ ------
449 215
Portion of rent expense deemed to represent
interest factor 62 31
------ ------
Fixed charges $ 511 $ 246
====== ======
Ratio of earnings to fixed charges 5.8 6.7
====== ======
EXHIBIT 12
KRAFT FOODS INC. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
(in millions of dollars)
----------
Years Ended December 31,
------------------------------------------
2001 2000 1999 1998 1997
------ ------ ------ ------ ------
Earnings before income taxes $3,447 $3,415 $3,040 $2,999 $3,083
Add (Deduct):
Equity in net earnings
of less than 50%
owned affiliates (41) (50) (51) (28) (28)
Dividends from less
than 50% owned
affiliates 21 12 10 9 10
Fixed charges 1,581 710 646 638 593
Interest capitalized,
net of amortization (3) - (2) (1) (3)
------ ------ ------ ------ ------
Earnings available for
fixed charges $5,005 $4,087 $3,643 $3,617 $3,655
====== ====== ====== ====== ======
Fixed charges:
Interest incurred:
Interest expense $1,452 $ 615 $ 547 $ 549 $ 500
Capitalized interest 5 3 4 3 5
------ ------ ------ ------ ------
1,457 618 551 552 505
Portion of rent expense
deemed to represent
interest factor 124 92 95 86 88
------ ------ ------ ------ ------
Fixed charges $1,581 $ 710 $ 646 $ 638 $ 593
====== ====== ====== ====== ======
Ratio of earnings to
fixed charges 3.2 5.8 5.6 5.7 6.2
====== ====== ====== ====== ======