EX-12.1 3 a18q3_10qx033118xexhibit121.htm EXHIBIT 12.1

|  | Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratios) | 2014 |  | 2015 |  | 2016 |  | 2017 |  | Nine months ended March 31, 2018
Earnings before income taxes | $ | 1,798 |  |  | $ | 1,967 |  |  | $ | 2,276 |  |  | $ | 1,924 |  |  | $ | 959 |
Plus fixed charges: |  |  |  |  |  |  |  |  |
Interest expense | 129 |  |  | 137 |  |  | 178 |  |  | 187 |  |  | 249 |
Capitalized interest | 1 |  |  | 2 |  |  | 6 |  |  | 9 |  |  | 3 |
Amortization of debt offering costs | 4 |  |  | 8 |  |  | 6 |  |  | 6 |  |  | 8 |
Interest portion of rent expense | 10 |  |  | 10 |  |  | 12 |  |  | 14 |  |  | 12 |
Fixed charges (1) | 144 |  |  | 156 |  |  | 201 |  |  | 217 |  |  | 272 |
Plus: amortization of capitalized interest | 3 |  |  | 2 |  |  | 3 |  |  | 4 |  |  | 3 |
Less: capitalized interest | (1 | ) |  | (2 | ) |  | (6 | ) |  | (9 | ) |  | (3 | )
Earnings (1) | $ | 1,944 |  |  | $ | 2,124 |  |  | $ | 2,473 |  |  | $ | 2,135 |  |  | $ | 1,231 |
Ratio of earnings to fixed charges (1) (2) | 14 |  |  | 14 |  |  | 12 |  |  | 10 |  |  | 5 |

(1) | The sum of the components may not equal the total due to rounding.

(2) | The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings from continuing operations before income taxes plus fixed charges and capitalized interest. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense that is deemed to be representative of the interest factor. Interest expense recorded on tax exposures has been recorded in income tax expense and has therefore been excluded from the calculation.