EXHIBIT 12.
Computation of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges:
| Year Ended December 31, | ||||||||||||||||||||
| Dollars in Millions | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
| Earnings |
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| Earnings from continuing operations before income taxes |
$ | 2,340 | $ | 6,981 | $ | 6,071 | $ | 5,602 | $ | 4,776 | ||||||||||
| Less: |
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| Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges |
844 | 2,323 | 2,074 | 1,717 | 1,444 | |||||||||||||||
| Equity in net income of affiliates |
183 | 281 | 313 | 550 | 617 | |||||||||||||||
| Capitalized interest |
— | — | 8 | 13 | 21 | |||||||||||||||
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| Income adjusted for equity income |
1,313 | 4,377 | 3,676 | 3,322 | 2,694 | |||||||||||||||
| Add: |
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| Fixed charges |
227 | 190 | 201 | 242 | 387 | |||||||||||||||
| Distributed income of equity investments |
229 | 283 | 313 | 550 | 590 | |||||||||||||||
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| Total Earnings |
$ | 1,769 | $ | 4,850 | $ | 4,190 | $ | 4,114 | $ | 3,671 | ||||||||||
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| Fixed Charges |
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| Interest expense |
$ | 182 | $ | 145 | 145 | $ | 184 | $ | 310 | |||||||||||
| Capitalized interest |
— | — | 8 | 13 | 21 | |||||||||||||||
| One-third of rental expense(1) |
45 | 45 | 48 | 45 | 56 | |||||||||||||||
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| Total Fixed Charges |
$ | 227 | $ | 190 | $ | 201 | $ | 242 | $ | 387 | ||||||||||
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| Ratio of Earnings to Fixed Charges |
7.79 | 25.53 | 20.85 | 17.00 | 9.49 | |||||||||||||||
| (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