EX-12 7 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES.

Computation of Ratio of Earnings to Fixed Charges.

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR THE YEAR ENDED DECEMBER 31

(in millions, except ratios)

		2004				2003				2002				2001				2000
Earnings:
Income from continuing operations before taxes on income and before accounting change		$	2,204			$	1,710			$	1,007			$	1,623			$	2,697
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges			—				—				—				—				1
Less equity earnings			(145	)			(138	)			(72	)			(118	)			(115	)
Fixed charges added to earnings			314				347				380				420				469
Distributed income of less than 50% owned persons			59				35				21				23				9
Amortization of capitalized interest:
Consolidated			25				21				14				13				15
Proportionate share of 50% owned persons			—				—				—				—				—
Total earnings		$	2,457			$	1,975			$	1,350			$	1,961			$	3,076
Fixed Charges:
Interest expense:
Consolidated		$	271			$	314			$	350			$	371			$	427
Proportionate share of 50% owned persons			3				4				4				6				6
			274				318				354				377				433
Amount representative of the interest factor in rents:
Consolidated			38				28				25				41				34
Proportionate share of 50% owned persons			2				1				1				2				2
			40				29				26				43				36
Fixed charges added to earnings			314				347				380				420				469
Interest capitalized:
Consolidated			27				21				22				22				20
Proportionate share of 50% owned persons			—				—				—				—				—
			27				21				22				22				20
Total fixed charges		$	341			$	368			$	402			$	442			$	489
Ratio of earnings to fixed charges			7.2				5.4				3.4				4.4				6.3

The financial information of all prior periods has been reclassified to reflect discontinued operations.

40