Eaton Corporation
Second Quarter 2005 Report on Form 10-Q
Item 6
Exhibit 12
Ratio of Earnings to Fixed Charges

	Six
	months
	ended
	June 30,			Year ended December 31
	2005			2004		2003			2002			2001		2000
Income from continuing operations before income taxes	$	503		$	781	$	508		$	399		$	278	$	552
Adjustments
Minority interests in consolidated subsidiaries		2			7		12			14			8		8
Income of equity investees		(2	)		—		(3	)		(1	)		—		(1	)
Interest expensed		52			88		93			110			149		182
Amortization of debt issue costs		—			1		2			2			1		1
Estimated portion of rent expense representing interest		19			38		38			34			38		39
Amortization of capitalized interest		6			17		13			13			13		10
Distributed income of equity investees		—			3		—			—			—		1
Adjusted income from continuing operations before income taxes	$	580		$	935	$	663		$	571		$	487	$	792
Fixed charges
Interest expensed	$	52		$	88	$	93		$	110		$	149	$	182
Interest capitalized		5			7		7			8			12		22
Amortization of debt issue costs		—			1		2			2			1		1
Estimated portion of rent expense representing interest		19			38		38			34			38		39
Total fixed charges	$	76		$	134	$	140		$	154		$	200	$	244
Ratio of earnings to fixed charges		7.63			6.98		4.73			3.71			2.44		3.25

Income from continuing operations before income taxes for years before 2002 includes amortization expense related to goodwill and other intangible assets. Upon adoption of Statement of Financial Accounting Standard No. 142 on January 1, 2002, Eaton ceased amortization of goodwill and indefinite life intangible assets.

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