Exhibit 12.1
ÁñÁ«ÊÓƵ
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
(Unaudited)
| Three Months Ended March 31, |
Year Ended December 31, |
||||||||||||||||||||||
| (Dollars in Millions) | 2006 | 2005* | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
| Portion of rentals representing interest |
$ | 11 | $ | 13 | $ | 45 | $ | 51 | $ | 46 | $ | 34 | $ | 45 | |||||||||
| Capitalized interest |
1 | 3 | 12 | 8 | 8 | 6 | 1 | ||||||||||||||||
| Other interest and fixed charges |
32 | 2 | 87 | 131 | 156 | 136 | 153 | ||||||||||||||||
| Pretax earnings which would be required to cover preferred stock dividend requirements |
6 | 6 | 25 | 23 | 35 | - | 12 | ||||||||||||||||
| Combined fixed charges and preferred stock dividends (A) |
$ | 50 | $ | 24 | $ | 169 | $ | 213 | $ | 245 | $ | 176 | $ | 211 | |||||||||
| Earnings-pretax income with applicable adjustments (B) |
$ | 403 | $ | 649 | $ | 1,467 | $ | 1,687 | $ | (559 | ) | $ | 202 | $ | (382 | ) | |||||||
| Ratio of (B) to (A) |
8.06 | 27.04 | 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 Kocice’s inventories from the last-in, first-out method to the first-in, first-out method. See Note 2 to the financial statements in the ÁñÁ«ÊÓƵ 2005 Annual Report on Form 10-K. Results for the three months ended March 31, 2005 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. |