Alcoa 2009 Annual Report Download - page 167

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Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
(in millions, except ratios)
2009 2008 2007 2006 2005
Earnings:
(Loss) income from continuing operations before income taxes $(1,498) $ 792 $4,802 $3,515 $2,008
Noncontrolling interests’ share of earnings of majority-owned
subsidiaries without fixed charges —————
Equity income (17) (130) (168) (127) (66)
Fixed charges added to earnings 508 452 454 436 378
Distributed income of less than 50 percent-owned persons 56 81 51 37 40
Amortization of capitalized interest:
Consolidated 30 26 21 21 25
Proportionate share of 50 percent-owned persons —————
Total earnings $ (921) $1,221 $5,160 $3,882 $2,385
Fixed Charges:
Interest expense:
Consolidated $ 470 $ 407 $ 401 $ 384 $ 334
Proportionate share of 50 percent-owned persons — 1353
470 408 404 389 337
Amount representative of the interest factor in rents:
Consolidated 38 43 48 45 39
Proportionate share of 50 percent-owned persons — 1222
38 44 50 47 41
Fixed charges added to earnings 508 452 454 436 378
Interest capitalized:
Consolidated 165 167 199 128 58
Proportionate share of 50 percent-owned persons — 2 4 2
165 169 203 130 58
Preferred stock dividend requirements of majority-owned
subsidiaries —————
Total fixed charges $ 673 $ 621 $ 657 $ 566 $ 436
Ratio of earnings to fixed charges (A) 2.0 7.9 6.9 5.5
(A) For the year ended December 31, 2009, there was a deficiency of earnings to cover the fixed charges of $1,594.
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