EX-12 5 etn12312017ex12.htm EXHIBIT 12 Exhibit


Eaton Corporation plc
2017 Annual Report on Form 10-K
Item 15(b)
Exhibit 12
Ratio of Earnings to Fixed Charges

 
 
Year ended December 31
(In millions)
 
2017
 
2016*
 
2015*
 
2014*
 
2013*
Income from continuing operations before income taxes and
  noncontrolling interests in consolidated subsidiaries
 
$
3,368

 
$
2,118

 
$
2,133

 
$
1,762

 
$
1,870


Adjustments
 
 
 
 
 
 
 
 
 
 
(Income) loss of equity investees
 
(1
)
 
(14
)
 
(11
)
 
(6
)
 
2

Distributed income of equity investees
 
7

 
9

 
9

 
4

 
77

Interest expensed
 
273

 
240

 
237

 
250

 
290

Amortization of debt issue costs
 
7

 
7

 
8

 
9

 
10

Estimated portion of rent expense representing interest
 
74

 
73

 
75

 
81

 
80

Amortization of capitalized interest
 
11

 
12

 
10

 
14

 
13

Adjusted income from continuing operations before
  income taxes
 
$
3,739

 
$
2,445

 
$
2,461

 
$
2,114

 
$
2,342


Fixed charges
 
 
 
 
 
 
 
 
 
 
Interest expensed
 
$
273

 
$
240

 
$
237

 
$
250

 
$
290

Interest capitalized
 
11

 
12

 
13

 
13

 
11

Amortization of debt issue costs
 
7

 
7

 
8

 
9

 
10

Estimated portion of rent expense representing interest
 
74

 
73

 
75

 
81

 
80

Total fixed charges
 
$
365

 
$
332

 
$
333

 
$
353

 
$
391

Ratio of earnings to fixed charges
 
10.24

 
7.36

 
7.39

 
5.99

 
5.99

*Certain amounts for the years 2013 through 2016 have been adjusted to reflect the retrospective application of the Company's change in inventory accounting method, as described in Notes 1 and 14 to the consolidated financial statements.