. . . EXHIBIT 12 -- COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (COMBINED WITH 50%-OWNED UNCONSOLIDATED SUBSIDIARIES) <Table> <Caption> FOR THE YEARS ENDED DECEMBER 31 2002 2001 2000 1999 1998 (In millions) ----- ----- ----- ----- ----- Income (loss) from continuing operations........... $ 220 $ 165 $ 113 $(112) $ 82 Add Interest......................................... 96 107 134 146 133 Portion of rentals representative of interest factor........................................ 14 14 15 18 12 Preferred stock dividend requirements of majority-owned subsidiaries................... -- -- -- -- 1 Income expense (benefit) and other taxes on income........................................ 146 118 91 (47) 67 Amortization of interest capitalized............. 1 1 -- -- -- ----- ----- ----- ----- ----- Earnings as defined................................ $ 477 $ 405 $ 353 $ 5 $ 295 ===== ===== ===== ===== ===== Interest........................................... $ 96 $ 107 $ 134 $ 146 $ 133 Interest capitalized............................... 5 4 5 -- 1 Portion of rentals representative of interest factor........................................... 14 14 15 18 12 Preferred stock dividend requirements of majority-owned subsidiaries on a pretax basis.... -- -- -- -- 2 ----- ----- ----- ----- ----- Fixed charges as defined........................... $ 115 $ 125 $ 154 $ 164 $ 148 ===== ===== ===== ===== ===== Ratio of earnings to fixed charges................. 4.15 3.24 2.29 (a) 1.99 ===== ===== ===== ===== ===== </Table> - --------------- (a) In 1999, earnings were inadequate to cover fixed charges by $159 million.