Exhibit 12
2002 | 2003 | 2004 | 9/30/04 | 9/30/05 | |||||||||||||||
Computation of Earnings: | |||||||||||||||||||
Income/(loss) from continuing operations before income taxes and cumulative effect of a change in accounting | ($ | 207 | ) | $ | 53 | $ | 104 | $ | 100 | $ | 112 | ||||||||
Adjustments to income: | |||||||||||||||||||
Add: Distributed income from less than 50% owned companies | 5 | 9 | 11 | 8 | 6 | ||||||||||||||
Add: Fixed charges as presented below | 355 | 398 | 380 | 285 | 298 | ||||||||||||||
Subtract: Interest capitalized | (1 | ) | 0 | 0 | 0 | ||||||||||||||
Add: Amortization of interest previously capitalized | 1 | 1 | 1 | 1 | |||||||||||||||
Earnings | $ | 153 | $ | 460 | $ | 496 | $ | 394 | $ | 417 | |||||||||
Computation of Fixed Charges: | |||||||||||||||||||
Interest incurred | $ | 342 | $ | 356 | $ | 338 | $ | 253 | $ | 270 | |||||||||
Amortization of debt-related costs | 2 | 23 | 23 | 17 | 13 | ||||||||||||||
Portion of rental expense representative of interest (1) | 11 | 18 | 19 | 14 | 15 | ||||||||||||||
Interest capitalized | 1 | 1 | |||||||||||||||||
Total fixed charges | 355 | 398 | 380 | 285 | 298 | ||||||||||||||
Preferred stock dividend requirements | |||||||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 355 | $ | 398 | $ | 380 | $ | 285 | $ | 298 | |||||||||
Ratio of earnings to fixed charges | (2)(3) | * | 1.2 | 1.3 | 1.4 | 1.4 | |||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | (2)(3) | * | 1.2 | 1.3 | 1.4 | 1.4 |
(1) | One-third of net rent expense is the portion deemed representative of the interest factor. |
(2) | Earnings did not cover fixed charges and preferred stock dividends by: ($202) |
(3) | Earnings/(loss) include charges for restructuring of $7 in 2004, $19 in 2003 and 2002; charges for asbestos of $35 in 2004, $44 in 2004, $30 in 2003; charges for asset impairments and loss/gain on sale of assets of $47 in 2004, $73 in 2003, $247 in 2002; loss/(gain) from early extinguishments of debt of $39 in 2004, $12 in 2003, and ($28) in 2002; and foreign exchange (gains)/losses of ($98) in 2004, ($207) in 2003, $27 in 2002. |