EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges:
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| Dollars in Millions | ||||||||||||||||||||
| Earnings |
||||||||||||||||||||
| Earnings from continuing operations before income taxes |
$ | 6,071 | $ | 5,602 | $ | 4,776 | $ | 2,523 | $ | 1,450 | ||||||||||
| Less: |
||||||||||||||||||||
| Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges |
2,074 | 1,717 | 1,444 | 1,106 | 609 | |||||||||||||||
| Equity in net income of affiliates |
313 | 550 | 617 | 524 | 474 | |||||||||||||||
| Capitalized interest |
8 | 13 | 21 | 24 | 16 | |||||||||||||||
| Adjusted income |
3,676 | 3,322 | 2,694 | 869 | 351 | |||||||||||||||
| Add: |
||||||||||||||||||||
| Fixed charges |
201 | 242 | 387 | 497 | 560 | |||||||||||||||
| Distributed income of equity investments |
313 | 550 | 590 | 488 | 439 | |||||||||||||||
| Total Earnings |
$ | 4,190 | $ | 4,114 | $ | 3,671 | $ | 1,854 | $ | 1,350 | ||||||||||
| Fixed Charges |
||||||||||||||||||||
| Interest expense |
$ | 145 | $ | 184 | $ | 310 | $ | 422 | $ | 498 | ||||||||||
| Capitalized interest |
8 | 13 | 21 | 24 | 16 | |||||||||||||||
| One-third of rental expense(1) |
48 | 45 | 56 | 51 | 46 | |||||||||||||||
| Total Fixed Charges |
$ | 201 | $ | 242 | $ | 387 | $ | 497 | $ | 560 | ||||||||||
| Ratio of Earnings to Fixed Charges |
20.85 | 17.00 | 9.49 | 3.73 | 2.41 | |||||||||||||||
| (1) | Rents included in the computation consist of one-third of rental expense which the Company believes to be a reasonable estimate of an interest factor in its leases. |
E-12-1