EX-12 4 ex12.htm EXHIBIT 12 ex12.htm
EXHIBIT 12

COLGATE-PALMOLIVE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in Millions Except Per Share Amounts)

 
 
   
Years Ended December 31,
  
   
2009
     2008(A)     2007(A)     2006(A)     2005(A)  
Earnings:
                                      
Income before income taxes
   $ 3,538     $ 3,005     $ 2,563     $ 2,059     $ 2,134  
                                         
Add:
                                        
Interest on indebtedness and amortization of debt expense and discount or premium
     88       106       167       167       142  
Portion of rents representative of interest factor
     71       61       52       47       44  
Loss on equity investments
     —       —       —       —       —  
Less:
                                        
Gain on equity investments
     (5 )     (4 )     (3 )     (3 )     (2 )
Income as adjusted
   $ 3,692     $ 3,168     $ 2,779     $ 2,270     $ 2,318  
Fixed Charges:
                                        
Interest on indebtedness and amortization of debt expense and discount or premium
   $ 88     $ 106     $ 167     $ 167     $ 142  
Portion of rents representative of interest factor
     71       61       52       47       44  
Capitalized interest
     14       9       6       4       3  
Total fixed charges
   $ 173     $ 176     $ 225     $ 218     $ 189  
Preferred Dividends:
                                        
Dividends declared on Preference stock
     36       35       35       36       35  
Total preferred dividends
   $ 36     $ 35     $ 35     $ 36     $ 35  
Ratio of earnings to fixed charges
     21.3       18.0       12.4       10.4       12.3  
Ratio of earnings to fixed charges and preferred dividends
     17.7       15.0       10.7       8.9       10.3  
 
(A)
Prior year amounts have been recalculated to conform to the current year presentation required by the Consolidation Topic of the FASB Codification. See Note 2 to the Consolidated Financial Statements for additional information.