Exhibit 12.1
THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of Dollars Except Ratios)
| Nine Months ended October 1, 2006 | Year Ended December 31, | |||||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
EARNINGS: | ||||||||||||||||||||
Earnings from continuing operations before income taxes (a) | $533.3 | $ | 801.1 | $ | 588.3 | $ | 365.3 | $ | 277.0 | $ | 121.0 | |||||||||
Share of equity income of 50%-or-less owned affiliates, net of distributed income | (12.9 | ) | 3.2 | (6.5 | ) | 12.5 | 0.7 | (10.9 | ) | |||||||||||
Interest expense | 76.2 | 81.9 | 57.9 | 60.7 | 84.3 | 119.0 | ||||||||||||||
Dividends on subsidiary preferred shares | — | — | — | 5.4 | 10.7 | 10.7 | ||||||||||||||
Portion of rent expense representative of an interest factor | 25.9 | 33.2 | 30.9 | 28.5 | 27.5 | 28.0 | ||||||||||||||
Adjusted earnings from continuing operations before income taxes and fixed charges | $622.5 | $ | 919.4 | $ | 670.6 | $ | 472.4 | $ | 400.2 | $ | 267.8 | |||||||||
FIXED CHARGES: | ||||||||||||||||||||
Interest expense | $ 76.2 | $ | 81.9 | $ | 57.9 | $ | 60.7 | $ | 84.3 | $ | 119.0 | |||||||||
Dividends on subsidiary preferred shares | — | — | — | 5.4 | 10.7 | 10.7 | ||||||||||||||
Portion of rent expense representative of an interest factor | 25.9 | 33.2 | 30.9 | 28.5 | 27.5 | 28.0 | ||||||||||||||
Total fixed charges | $102.1 | $ | 115.1 | $ | 88.8 | $ | 94.6 | $ | 122.5 | $ | 157.7 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 6.1 | 8.0 | 7.6 | 5.0 | 3.3 | 1.7 | ||||||||||||||
| (a) | Our earnings from continuing operations before income taxes for the year ended December 31, 2005 benefited from a $55.0 million favorable settlement of environmental and product liability coverage litigation with an insurer. |
