Exhibit 12
Computation of Earnings to Fixed Charges
| Five-Year Ratio of Earnings to Fixed Charges: | Three Months Ended March 31, 2008 |
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
| Dollars in Millions |
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| Earnings |
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| Earnings from continuing operations before minority interest and income taxes |
$ | 1,290 | $ | 3,534 | $ | 2,400 | $ | 4,304 | $ | 4,210 | $ | 4,529 | ||||||||||||
| Less: |
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| Equity in net income of affiliates, net of losses of equity investees |
164 | 524 | 474 | 334 | 273 | 151 | ||||||||||||||||||
| Income adjusted for equity income |
1,126 | 3,010 | 1,926 | 3,970 | 3,937 | 4,378 | ||||||||||||||||||
| Add: |
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| Fixed charges |
95 | 504 | 566 | 408 | 369 | 361 | ||||||||||||||||||
| Distributed income of equity investments |
113 | 488 | 439 | 383 | 278 | 155 | ||||||||||||||||||
| Less: |
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| Capitalized interest |
(7 | ) | (27 | ) | (18 | ) | (9 | ) | (10 | ) | (35 | ) | ||||||||||||
| Total Earnings |
$ | 1,327 | $ | 3,975 | $ | 2,913 | $ | 4,752 | $ | 4,574 | $ | 4,859 | ||||||||||||
| Fixed Charges |
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| Interest and debt expense |
$ | 73 | $ | 422 | $ | 498 | $ | 349 | $ | 310 | $ | 277 | ||||||||||||
| Capitalized interest |
7 | 27 | 18 | 9 | 10 | 35 | ||||||||||||||||||
| One-third of rental expense (1) |
15 | 55 | 50 | 50 | 49 | 49 | ||||||||||||||||||
| Total Fixed Charges |
$ | 95 | $ | 504 | $ | 566 | $ | 408 | $ | 369 | $ | 361 | ||||||||||||
| Ratio of Earnings to Fixed Charges |
13.97 | 7.89 | 5.15 | 11.65 | 12.40 | 13.46 | ||||||||||||||||||
| (1) |
Rents included in the computation consist of one-third of rental expense which the Company believes to be a conservative estimate of an interest factor in its leases, which are not material. |