RATIO OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
| (dollars in millions) | |||||||||||||||||||
| Net income before cumulative effect of changes in accounting principles | $ | 2,211 | $ | 2,189 | $ | 2,937 | $ | 4,816 | $ | 10,090 | |||||||||
| Add: Income tax expense (benefit) |
(108 | ) | 367 | 790 | 2,202 | 4,713 | |||||||||||||
| Minority interests in earnings of consolidated subsidiaries | 58 | 96 | 129 | 157 | 184 | ||||||||||||||
| Total interest expense | 37,270 | 29,899 | 26,566 | 26,509 | 26,876 | ||||||||||||||
| Interest factor in rental expenses | 6 | 6 | 6 | 5 | 5 | ||||||||||||||
| Capitalized interest | — | — | 1 | — | 1 | ||||||||||||||
| Earnings, as adjusted | $ | 39,437 | $ | 32,557 | $ | 30,429 | $ | 33,689 | $ | 41,869 | |||||||||
| Fixed charges: Total interest expense |
$ | 37,270 | $ | 29,899 | $ | 26,566 | $ | 26,509 | $ | 26,876 | |||||||||
| Interest factor in rental expenses | 6 | 6 | 6 | 5 | 5 | ||||||||||||||
| Capitalized interest | — | — | 1 | — | 1 | ||||||||||||||
| Total fixed charges | $ | 37,276 | $ | 29,905 | $ | 26,573 | $ | 26,514 | $ | 26,882 | |||||||||
| Ratio of earnings to fixed charges(1) | 1.06 | 1.09 | 1.15 | 1.27 | 1.56 | ||||||||||||||
(1) Ratio of earnings to fixed charges is computed by dividing Earnings, as adjusted by Total fixed charges.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
| Year Ended December 31, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
| (dollars in millions) | |||||||||||||||||||
| Net income before cumulative effect of changes in accounting principles | $ | 2,211 | $ | 2,189 | $ | 2,937 | $ | 4,816 | $ | 10,090 | |||||||||
| Add: Income tax expense (benefit) |
(108 | ) | 367 | 790 | 2,202 | 4,713 | |||||||||||||
| Minority interests in earnings of consolidated subsidiaries | 58 | 96 | 129 | 157 | 184 | ||||||||||||||
| Total interest expense | 37,270 | 29,899 | 26,566 | 26,509 | 26,876 | ||||||||||||||
| Interest factor in rental expenses | 6 | 6 | 6 | 5 | 5 | ||||||||||||||
| Capitalized interest | — | — | 1 | — | 1 | ||||||||||||||
| Earnings, as adjusted | $ | 39,437 | $ | 32,557 | $ | 30,429 | $ | 33,689 | $ | 41,869 | |||||||||
| Fixed charges: Total interest expense |
$ | 37,270 | $ | 29,899 | $ | 26,566 | $ | 26,509 | $ | 26,876 | |||||||||
| Interest factor in rental expenses | 6 | 6 | 6 | 5 | 5 | ||||||||||||||
| Capitalized interest | — | — | 1 | — | 1 | ||||||||||||||
| Preferred stock dividends(1) | 270 | 261 | 266 | 315 | 351 | ||||||||||||||
| Total fixed charges including preferred stock dividends | $ | 37,546 | $ | 30,166 | $ | 26,839 | $ | 26,829 | $ | 27,233 | |||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends(2) | 1.05 | 1.08 | 1.13 | 1.26 | 1.54 | ||||||||||||||
(1) Preferred stock dividends represent pre-tax earnings required to cover any preferred stock dividend requirements using our effective tax rate for the relevant periods.
(2) Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing Earnings, as adjusted by Total fixed charges including preferred stock dividends.