Exhibit 12
Ratio of Earnings to Fixed Charges
Years Ended December 31, | |||||||||||||||||||
(In Millions Except Ratios) | 2012 | 2011(a) | 2010(a) | 2009(a) | 2008(a) | ||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest Expense, Including Amortization of Deferred Finance Fees | $ | 55 | $ | 17 | $ | — | $ | — | $ | 2 | |||||||||
Interest Portion of Rental Expense (b) | 24 | 21 | 18 | 16 | 16 | ||||||||||||||
Total Fixed Charges | 79 | 38 | 18 | 16 | 18 | ||||||||||||||
Earnings Before Income Taxes, Discontinued Operations and Fixed Charges: | |||||||||||||||||||
Pre-tax income (before income or loss from equity investees) | 388 | 379 | 387 | 277 | 313 | ||||||||||||||
Fixed Charges | 79 | 38 | 18 | 16 | 18 | ||||||||||||||
Total Earnings Available For Fixed Charges | $ | 467 | $ | 417 | $ | 405 | $ | 293 | $ | 331 | |||||||||
Ratio of Earnings to Fixed Charges: | 5.9 | 10.9 | 22.7 | 18.9 | 18.9 |
(a) For all comparative periods presented above, these periods are prior to the Spin-off from ITT and the issuance of $1.2 billion aggregate principal amount of senior notes which were issued in September 2011. Interest on the Senior Notes accrues from September 20, 2011.
(b) Calculated as 33% of rent expense, which is a reasonable approximation of the interest factor.