EX-12 19 l30233aexv12.txt EX-12 EATON CORPORATION 2007 ANNUAL REPORT ON FORM 10-K ITEM 15(B) EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31 --------------------------------------- (Millions of dollars) 2007 2006 2005 2004 2003 --------------------- ------ ------ ------ ----- ---- Income from continuing operations before income taxes $1,041 $ 969 $ 964 $ 749 $463 Adjustments Minority interests in consolidated subsidiaries 14 10 5 7 12 (Income) losses of equity investees (6) 1 1 (3) Interest expensed 193 139 109 88 93 Amortization of debt issue costs 1 1 1 1 2 Estimated portion of rent expense representing interest 44 41 38 37 38 Amortization of capitalized interest 12 12 12 17 13 Distributed income of equity investees 1 1 4 3 ------ ------ ------ ----- ---- Adjusted income from continuing operations before income taxes $1,300 $1,174 $1,134 $ 902 $618 ====== ====== ====== ===== ==== Fixed charges Interest expensed $ 193 $ 139 $ 109 $ 88 $ 93 Interest capitalized 14 14 13 7 7 Amortization of debt issue costs 1 1 1 1 2 Estimated portion of rent expense representing interest 44 41 38 37 38 ------ ------ ------ ----- ---- Total fixed charges $ 252 $ 195 $ 161 $ 133 $140 ====== ====== ====== ===== ==== Ratio of earnings to fixed charges 5.16 6.02 7.04 6.78 4.41