EX-12 19 dex12.htm 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)

|  | 2009 |  |  | 2008 |  |  | 2007 |  |  | 2006 |  |  | 2005 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Loss) income from continuing operations before income taxes |  | $ | (1,498 | ) |  | $ | 792 |  |  | $ | 4,802 |  |  | $ | 3,515 |  |  | $ | 2,008 |
Noncontrolling interests’ share of earnings of majority-owned subsidiaries without fixed charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Equity income |  |  | (17 | ) |  |  | (130 | ) |  |  | (168 | ) |  |  | (127 | ) |  |  | (66 | )
Fixed charges added to earnings |  |  | 508 |  |  |  | 452 |  |  |  | 454 |  |  |  | 436 |  |  |  | 378 |
Distributed income of less than 50 percent-owned persons |  |  | 56 |  |  |  | 81 |  |  |  | 51 |  |  |  | 37 |  |  |  | 40 |
Amortization of capitalized interest: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 30 |  |  |  | 26 |  |  |  | 21 |  |  |  | 21 |  |  |  | 25 |
Proportionate share of 50 percent-owned persons |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total earnings |  | $ | (921 | ) |  | $ | 1,221 |  |  | $ | 5,160 |  |  | $ | 3,882 |  |  | $ | 2,385 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  | $ | 470 |  |  | $ | 407 |  |  | $ | 401 |  |  | $ | 384 |  |  | $ | 334 |
Proportionate share of 50 percent-owned persons |  |  | — |  |  |  | 1 |  |  |  | 3 |  |  |  | 5 |  |  |  | 3 |
|  |  | 470 |  |  |  | 408 |  |  |  | 404 |  |  |  | 389 |  |  |  | 337 |
Amount representative of the interest factor in rents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 38 |  |  |  | 43 |  |  |  | 48 |  |  |  | 45 |  |  |  | 39 |
Proportionate share of 50 percent-owned persons |  |  | — |  |  |  | 1 |  |  |  | 2 |  |  |  | 2 |  |  |  | 2 |
|  |  | 38 |  |  |  | 44 |  |  |  | 50 |  |  |  | 47 |  |  |  | 41 |
Fixed charges added to earnings |  |  | 508 |  |  |  | 452 |  |  |  | 454 |  |  |  | 436 |  |  |  | 378 |
Interest capitalized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated |  |  | 165 |  |  |  | 167 |  |  |  | 199 |  |  |  | 128 |  |  |  | 58 |
Proportionate share of 50 percent-owned persons |  |  | — |  |  |  | 2 |  |  |  | 4 |  |  |  | 2 |  |  |  |  |
|  |  | 165 |  |  |  | 169 |  |  |  | 203 |  |  |  | 130 |  |  |  | 58 |
Preferred stock dividend requirements of majority-owned subsidiaries |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total fixed charges |  | $ | 673 |  |  | $ | 621 |  |  | $ | 657 |  |  | $ | 566 |  |  | $ | 436 |
Ratio of earnings to fixed charges |  |  | (A | ) |  |  | 2.0 |  |  |  | 7.9 |  |  |  | 6.9 |  |  |  | 5.5 |

(A) For the year ended December 31, 2009, there was a deficiency of earnings to cover the fixed charges of $1,594.