EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
FOR NINE MONTHS ENDED SEPTEMBER 30:
(UNAUDITED)
(Dollars in millions)
1997 1996
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Earnings before income taxes(1) $6,035 $5,706
Add:
Fixed charges, excluding capitalized interest 1,449 1,450
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Earnings as adjusted $7,484 $7,156
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Fixed charges:
Interest expense 1,157 1,153
Capitalized interest 26 24
Portion of rental expense representative of
interest 292 297
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Total fixed charges $1,475 $1,474
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Preferred stock dividends(2) 22 25
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Combined fixed charges and preferred stock
dividends $1,497 $1,499
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Ratio of earnings to fixed charges 5.07 4.85
Ratio of earnings to combined fixed charges and
preferred stock dividends 5.00 4.78
(1) Earnings before income taxes excludes the company's share in the income
and losses of less-than-fifty percent-owned affiliates.
(2) Included in the ratio computation are preferred stock dividends of $15
million for the first nine months of 1997 and 1996, or $22 million and $25
million, respectively, representing the pre-tax earnings which would be
required to cover such dividend requirements based on the company's
effective tax rate for the nine months ended September 30, 1997 and 1996.