Exhibit 12.1
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Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
(Unaudited)
| Year Ended December 31, | ||||||||||||||||
| (Dollars in Millions) |
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||
| Portion of rentals representing interest |
$ | 44 | $ | 45 | $ | 51 | $ | 46 | $ | 34 | ||||||
| Capitalized interest |
3 | 12 | 8 | 8 | 6 | |||||||||||
| Other interest and fixed charges |
123 | 87 | 131 | 156 | 136 | |||||||||||
| Pretax earnings which would be required to cover preferred stock dividend requirements |
10 | 25 | 23 | 35 | — | |||||||||||
| Combined fixed charges and preferred stock dividends (A) |
$ | 180 | $ | 169 | $ | 213 | $ | 245 | $ | 176 | ||||||
| Earnings-pretax income with applicable adjustments (B) |
$ | 1,884 | $ | 1,467 | $ | 1,687 | $ | (559 | ) | $ | 202 | |||||
| Ratio of (B) to (A) |
10.47 | 8.68 | 7.92 | (a | ) | 1.15 | ||||||||||
| (a) | Earnings did not cover fixed charges and preferred stock dividends by $804 million. |