Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Dollars in Millions
| Six Months Ended June 30, |
Years Ended December 31, | ||||||||||||||||||||||
| 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||
| Earnings available for fixed charges |
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| - Income from continuing operations before provision for income taxes and cumulative effect of accounting changes |
$ | 3,292.2 | $ | 2,964.4 | $ | 6,487.0 | $ | 6,158.0 | $ | 3,572.1 | (1) | $ | 4,154.4 | $ | 3,660.2 | ||||||||
| - Noncontrolling interest expense in operating results of majority-owned subsidiaries, including fixed charges related to redeemable preferred stock, less equity in undistributed operating results of less than 50%-owned affiliates |
5.0 | 2.3 | 7.5 | 10.7 | 7.2 | 5.5 | 1.2 | ||||||||||||||||
| - Income tax provision (benefit) of 50%-owned affiliates included in income from continuing operations before provision for income taxes |
5.3 | 19.3 | 47.7 | 30.0 | 22.4 | 5.9 | (3.5 | ) | |||||||||||||||
| - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
156.2 | 147.2 | 302.8 | 321.3 | 312.8 | 304.0 | 292.8 | ||||||||||||||||
| - Interest expense, amortization of debt discount and issuance costs, and depreciation of capitalized interest* |
233.3 | 256.6 | 504.5 | 556.8 | 442.7 | 437.4 | 392.2 | ||||||||||||||||
| $ | 3,692.0 | $ | 3,389.8 | $ | 7,349.5 | $ | 7,076.8 | $ | 4,357.2 | $ | 4,907.2 | $ | 4,342.9 | ||||||||||
| Fixed charges |
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| - Portion of rent charges (after reduction for rental income from subleased properties) considered to be representative of interest factors* |
$ | 156.2 | $ | 147.2 | $ | 302.8 | $ | 321.3 | $ | 312.8 | $ | 304.0 | $ | 292.8 | |||||||||
| - Interest expense, amortization of debt discount and issuance costs, and fixed charges related to redeemable preferred stock* |
224.5 | 247.8 | 486.9 | 539.7 | 425.9 | 418.4 | 373.4 | ||||||||||||||||
| - Capitalized interest* |
4.9 | 4.6 | 11.9 | 12.5 | 7.0 | 5.5 | 5.0 | ||||||||||||||||
| $ | 385.6 | $ | 399.6 | $ | 801.6 | $ | 873.5 | $ | 745.7 | $ | 727.9 | $ | 671.2 | ||||||||||
| Ratio of earnings to fixed charges |
9.57 | 8.48 | 9.17 | 8.10 | 5.84 | 6.74 | 6.47 | ||||||||||||||||
| * | Includes amounts of the Registrant and its majority-owned subsidiaries, and one-half of the amounts of 50%-owned affiliates. The Company records interest expense on unrecognized tax benefits in the provision for income taxes. This interest is not included in the computation of fixed charges. |
| (1) | Includes pretax charges of $1.7 billion primarily related to impairment in connection with the Company’s sale of Latam to a developmental licensee. |