EX-12 7 exh12b.txt EXHIBIT 12B AON CORPORATION
EXHIBIT 12(B) AON CORPORATION AND CONSOLIDATED SUBSIDIARIES COMBINED WITH UNCONSOLIDATED SUBSIDIARIES Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends YEARS ENDED DECEMBER 31, --------------------------------------------------------------------- (millions except ratios) 2001 2000 1999 1998 1997 ----------- ---------- ----------- ---------- ----------- Income before provision for income taxes and minority interest (1) $ 399 $ 854 $ 635 $ 931 $ 542 ADD BACK FIXED CHARGES: Interest on indebtedness 127 140 105 87 70 Interest on ESOP - - 1 2 3 Portion of rents representative of interest factor 57 54 49 51 44 ----------- ---------- ----------- ---------- ----------- INCOME AS ADJUSTED $ 583 $ 1,048 $ 790 $ 1,071 $ 659 =========== ========== =========== ========== =========== FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: Interest on indebtedness $ 127 $ 140 $ 105 $ 87 $ 70 Preferred stock dividends 70 70 70 70 82 ----------- ---------- ----------- ---------- ----------- INTEREST AND DIVIDENDS 197 210 175 157 152 Interest on ESOP - - 1 2 3 Portion of rents representative of interest factor 57 54 49 51 44 ----------- ---------- ----------- ---------- ----------- TOTAL FIXED CHARGES AND PREFERRED STOCK DIVIDENDS $ 254 $ 264 $ 225 $ 210 $ 199 =========== ========== =========== ========== =========== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (2) 2.3 4.0 3.5 5.1 3.3 =========== ========== =========== ========== =========== (1) Income before provision for income taxes and minority interest includes unusual charges of $68 million related to the World Trade Center attacks and special charges of $218 million for the year ended December 31, 2001. Income before provision for income taxes and minority interest includes special charges of $82 million, $313 million, and $172 million for the years ended December 31, 2000, 1999, and 1997, respectively. (2) Included in total fixed charges and preferred stock dividends are $66 million for the years ended December 31, 2001, 2000, 1999 and 1998 and $64 million for the year ended December 31, 1997, of pretax distributions on the 8.205% mandatorily redeemable preferred capital securities which are classified as "minority interest" on the consolidated statements of income.