Exhibit 12.1
UNITED STATES STEEL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Unaudited)
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(Dollars in millions)
Nine Months
Ended Year Ended December 31
September 30 ---------------------------------
2002 2001 2001 2000 1999 1998 1997
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Portion of rentals
representing interest $ 22 $ 31 $ 45 $ 48 $ 46 $ 52 $ 47
Capitalized interest 4 1 1 3 6 6 7
Other interest and fixed
charges 101 88 153 115 75 47 91
Pretax earnings which would
be required to cover
preferred stock dividend
requirements of parent (a) - 10 12 12 14 15 20
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Combined fixed charges
and preferred stock
dividends $127 $ 130 $ 211 $ 178 $ 141 $ 120 $ 165
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Earnings-pretax income
with applicable
adjustments $172 $(147) $(387) $ 187 $ 295 $ 618 $ 781
==== ==== ==== ==== ==== ==== ====
Ratio of earnings to
combined
fixed charges and preferred
stock dividends 1.35 (b) (c) 1.05 2.10 5.15 4.72
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(a) Reflects pretax earnings required to cover dividends associated with
the 6.50% Cumulative Convertible Preferred Stock attributed to
U. S. Steel by Marathon prior to the Separation. This preferred
stock was retained by Marathon in connection with the Separation and
subsequently repaid by Marathon.
(b) Earnings did not cover combined fixed charges and preferred stock
dividends by $277 million.
(c) Earnings did not cover combined fixed charges and preferred stock
dividends by $598 million.