EX-12 2 y17130exv12.txt EX-12: CALCULATION OF RATIO OF EARNINGS EXHIBIT 12 ITT INDUSTRIES, INC. AND SUBSIDIARIES CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES AND CALCULATION OF EARNINGS TO TOTAL FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
Years Ended December 31, ------------------------------------------------------------------- (In Millions) 2005 2004 2003 2002 2001 ---------------------------------------------------------------------------------------------------------------- Earnings: Income (loss) from continuing operations $ 314.4 $ 420.1 $ 370.3 $ 350.6 $ 184.1 Add (deduct): Adjustment for distributions in excess of (less than) undistributed equity earnings and losses(a) 0.8 (0.4) (0.8) (5.0) (1.6) Income taxes (benefits) 133.7 164.7 130.3 115.1 108.3 ----------- ----------- ----------- ----------- ----------- 448.9 584.4 499.8 460.7 290.8 ----------- ----------- ----------- ----------- ----------- Fixed Charges: Interest and other financial charges 75.0 50.4 43.2 56.5 83.3 Interest factor attributable to rentals(b) 28.9 27.0 21.5 19.1 15.6 ----------- ----------- ----------- ----------- ----------- 103.9 77.4 64.7 75.6 98.9 ----------- ----------- ----------- ----------- ----------- Earnings, as adjusted, from continuing operations $ 552.8 $ 661.8 $ 564.5 $ 536.3 $ 389.7 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Fixed Charges: Fixed charges above $ 103.9 $ 77.4 $ 64.7 $ 75.6 $ 98.9 Interest capitalized -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total fixed charges 103.9 77.4 64.7 75.6 98.9 Dividends on preferred stock (pre-income tax basis) -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total fixed charges and preferred dividend requirements $ 103.9 $ 77.4 $ 64.7 $ 75.6 $ 98.9 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Ratios: Earnings, as adjusted, from continuing operations to total fixed charges 5.32 8.55 8.72 7.09 3.94 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Earnings, as adjusted, from continuing operations to total fixed charges and preferred dividend requirements 5.32 8.55 8.72 7.09 3.94 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Notes: a) The adjustment for distributions in excess of (less than) undistributed equity earnings and losses represents the adjustment to income for companies in which less than 50% equity is owned. b) One-third of rental expense is deemed to be representative of the interest factor in rental expense. c) Prior years amounts have been adjusted to reflect the impact of FHS and NS&S discontinued operations.