EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Amounts in millions
| Years Ended June 30 | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
EARNINGS, AS DEFINED |
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Earnings from operations before income taxes and
before adjustments for minority interests in
consolidated subsidiaries and after eliminating
undistributed earnings of equity method
investees |
$ | 16,120 | $ | 14,746 | $ | 12,419 | $ | 9,954 | $ | 9,010 | ||||||||||
Fixed charges, excluding capitalized interest |
1,604 | 1,428 | 1,242 | 924 | 719 | |||||||||||||||
TOTAL EARNINGS, AS DEFINED |
$ | 17,724 | $ | 16,174 | $ | 13,661 | $ | 10,878 | $ | 9,729 | ||||||||||
FIXED CHARGES, AS DEFINED |
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Interest expense (including capitalized interest) |
$ | 1,546 | $ | 1,374 | $ | 1,153 | $ | 869 | $ | 629 | ||||||||||
1/3 of rental expense (1) |
137 | 124 | 122 | 90 | 90 | |||||||||||||||
TOTAL FIXED CHARGES, AS DEFINED |
$ | 1,683 | $ | 1,498 | $ | 1,275 | $ | 959 | $ | 719 | ||||||||||
RATIO OF EARNINGS TO FIXED CHARGES |
10.5 | x | 10.8 | x | 10.7 | x | 11.3 | x | 13.5 | x | ||||||||||
| (1) | Considered to be representative of interest factor in rental expense. |