Exhibit 12.1
ÁñÁ«ÊÓƵ
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
Unaudited
| Year Ended December 31, | |||||||||||||||||
| (Dollars in Millions) |
2005 | 2004* | 2003* | 2002* | 2001* | ||||||||||||
| Portion of rentals representing interest |
$ | 45 | $ | 51 | $ | 46 | $ | 34 | $ | 45 | |||||||
| Capitalized interest |
12 | 8 | 8 | 6 | 1 | ||||||||||||
| Other interest and fixed charges |
87 | 131 | 156 | 136 | 153 | ||||||||||||
| Pretax earnings which would be required to cover preferred stock dividend requirements |
25 | 23 | 35 | — | 12 | ||||||||||||
| Combined fixed charges and preferred stock dividends (A) |
$ | 169 | $ | 213 | $ | 245 | $ | 176 | $ | 211 | |||||||
| Earnings-pretax income with applicable adjustments (B) |
$ | 1,467 | $ | 1,687 | $ | (559 | ) | $ | 202 | $ | (382 | ) | |||||
| Ratio of (B) to (A) |
8.68 | 7.92 | (a | ) | 1.15 | (b | ) | ||||||||||
| * | During the fourth quarter of 2005, U.S. Steel changed its method of determining the cost of U. S. Steel Kosice’s inventories from the last-in, first-out method to the first-in, first-out method. Prior year results have been adjusted to apply this change retrospectively. |
| (a) | Earnings did not cover fixed charges and preferred stock dividends by $804 million. |
| (b) | Earnings did not cover fixed charges and preferred stock dividends by $593 million. |