EX-12 2 exhibit12.txt INGERSOLL-RAND COMPANY EXHIBIT 12 COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollar amounts in millions) Years Ended December 31, Fixed charges: 2000 1999 1998 1997 1996 Interest expense........................... $ 286.6 $ 204.5 $ 225.9 $137.5 $120.9 Amortization of debt discount and expense.. 6.1 6.7 7.0 2.0 1.5 Rentals (one-third of rentals)............. 28.2 23.9 23.8 23.3 20.3 Capitalized interest....................... 4.4 4.0 4.0 3.2 4.6 Equity-linked security charges............ 25.6 25.6 19.7 0.0 0.0 Total fixed charges.......................... $ 350.9 $ 264.7 $ 280.4 $166.0 $147.3 Net earnings from continuing operations $ 546.2 $ 563.1 $ 481.6 $367.6 $342.3 Add: Minority income of majority- owned subsidiaries.................. 39.3 29.1 23.5 3.6 1.5 Taxes on income from continuing operations.......................... 283.1 299.9 250.7 219.8 190.7 Fixed charges......................... 350.9 264.7 280.4 166.0 147.3 Less: Capitalized interest.................. 4.4 4.0 4.0 3.2 4.6 Undistributed earnings (losses) from less than 50% owned affiliates...... 9.1 19.9 26.9 16.2 (29.1) Earnings available for fixed charges ........ $1,206.0 $1,132.9 $1,005.3 $737.6 $706.3 Ratio of earnings to fixed charges .......... 3.44 4.28 3.59 4.44 4.79 Undistributed earnings (losses) from less than 50% owned affiliates: Equity in earnings (losses)............ $ 11.6 $ 22.1 $ 30.1 $ 18.3 $ 29.7 Less: Amounts distributed............... 2.5 2.2 3.2 2.1 $ 58.8 Undistributed earnings (losses) from less-than 50% owned affiliates........... $ 9.1 $ 19.9 $ 26.9 $ 16.2 $(29.1)