EX-12 3 kex12.txt EXHIBIT 12 INGERSOLL-RAND COMPANY COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollar Amounts in Millions) Six Months Ended June 30 Years Ended December 31, Fixed charges: 2001 2000 1999 1998 1997 1996 Interest expense........................... $ 141.6 $ 286.6 $ 204.5 $ 225.9 $ 137.5 $ 120.9 Amortization of debt discount and expense.. 3.2 6.1 6.7 7.0 2.0 1.5 Rentals (one-third of rentals)............. 16.7 28.2 23.9 23.8 23.3 20.3 Capitalized interest....................... 2.2 4.4 4.0 4.0 3.2 4.6 Equity-linked security charges............. 8.6 25.6 25.6 19.7 0.0 0.0 Total fixed charges.......................... $ 172.3 $ 350.9 $ 264.7 $ 280.4 $ 166.0 $ 147.3 Net earnings from continuing operations $ 112.2 $ 546.2 $ 563.1 $ 481.6 $ 367.6 $ 342.3 Add: Minority income of majority- owned subsidiaries.................... 14.1 39.3 29.1 23.5 3.6 1.5 Taxes on income from continuing operations............................ 54.4 284.4 307.1 257.6 220.2 196.2 Fixed charges........................... 172.3 350.9 264.7 280.4 166.0 147.3 Less: Capitalized interest................... 2.2 4.4 4.0 4.0 3.2 4.6 Undistributed earnings (losses) from less than 50% owned affiliates....... 1.0 9.2 27.1 33.8 16.6 (23.6) Earnings available for fixed charges......... $ 349.8 $1,207.2 $1,132.9 $1,005.3 $ 737.6 $ 706.3 Ratio of earnings to fixed charges........... 2.03 3.44 4.28 3.59 4.44 4.79 Undistributed earnings (losses) from less than 50% owned affiliates: Equity in earnings (losses)................ $ 1.9 $ 11.7 $ 29.3 $ 37.0 $ 18.7 $ 35.2 Less: Amounts distributed............... 0.9 2.5 2.2 3.2 2.1 58.8 Undistributed earnings (losses) from less-than 50% owned affiliates........... $ 1.0 $ 9.2 $ 27.1 $ 33.8 $ 16.6 $ (23.6) Amounts have been restated to reflect the reclassification within the financial statements for the accounting for the Company's investment in Dresser-Rand Company.