EX-12 5 l86837aex12.txt EXHIBIT 12 1 EXHIBIT 12 THE LUBRIZOL CORPORATION AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (all amounts except ratios are shown in thousands)
2000 1999 1998 1997 1996 --------- --------- --------- --------- --------- Pretax income $ 170,348 $ 195,350 $ 118,814 $ 231,147 $ 250,608 Add (deduct) earnings of less than 50% owned affiliates (net of distributed earnings) included in pretax income 1,135 (3,195) (1,470) (3,018) (48) Add losses of less than 50% owned affiliates included in pretax income 1,818 18 888 66 56 Add fixed charges net of capitalized interest 26,869 29,696 18,976 10,803 10,955 Add previously capitalized interest amortized during period 1,255 1,446 1,191 1,118 968 --------- --------- --------- --------- --------- "Earnings" $ 201,425 $ 223,315 $ 138,399 $ 240,116 $ 262,539 ========= ========= ========= ========= ========= Gross interest expense including capitalized interest ("Fixed Charges") $ 26,282 $ 28,953 $ 20,743 $ 13,194 $ 14,010 Ratio of earnings to fixed charges 7.66 7.71 6.67 18.2 18.7 SPECIAL ADJUSTMENTS: "Earnings" $ 201,425 $ 223,315 $ 138,399 $ 240,116 $ 262,539 Plus (less) special charges/credits (4,484) 19,569 36,892 Less gains on investments and litigation settlements (19,395) (17,626) (16,201) (53,280) --------- --------- --------- --------- --------- Adjusted "Earnings" $ 177,546 $ 225,258 $ 159,090 $ 240,116 $ 209,259 ========= ========= ========= ========= ========= Ratio of adjusted earnings to fixed charges 6.76 7.78 7.67 18.2 14.9