THE COCA-COLA COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
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Year Ended December 31, | |||||||||||||||
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20101 | 2009 | 2008 | 2007 | 2006 | |||||||||||
(In millions except ratios) |
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EARNINGS: |
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Income from continuing operations before income taxes and changes in accounting principles |
$ 14,243 | $ 8,946 | $ 7,506 | $ 7,919 | $ 6,628 | |||||||||||
Fixed charges |
792 | 422 | 513 | 524 | 271 | |||||||||||
Less: |
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Capitalized interest, net |
(1 | ) | (4 | ) | (7 | ) | (12 | ) | (10 | ) | ||||||
Equity (income) loss, net of dividends |
(671 | ) | (359 | ) | 1,128 | (452 | ) | 124 | ||||||||
Adjusted earnings |
$ 14,363 | $ 9,005 | $ 9,140 | $ 7,979 | $ 7,013 | |||||||||||
FIXED CHARGES: |
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Gross interest incurred |
$ 734 | $ 359 | $ 445 | $ 468 | $ 230 | |||||||||||
Interest portion of rent expense |
58 | 63 | 68 | 56 | 41 | |||||||||||
Total fixed charges |
$ 792 | $ 422 | $ 513 | $ 524 | $ 271 | |||||||||||
Ratios of earnings to fixed charges |
18.1 | 21.3 | 17.8 | 15.2 | 25.9 | |||||||||||
1 Includes the impact of the Company's acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2 of Notes to Consolidated Financial Statements related to our acquisitions and divestitures. |
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As of December 31, 2010, we were contingently liable for guarantees of indebtedness owed by third parties of approximately $683 million, of which approximately $336 million related to VIEs. Fixed charges for these contingent liabilities have not been included in the computation of the above ratios, as the amounts are immaterial and, in the opinion of management, it is not probable that the Company will be required to satisfy the guarantees. The interest amount, in the above table, does not include interest expense associated with unrecognized tax benefits.