EXHIBIT 12
Ratio of Earnings to Fixed Charges
Years Ended December 31, | |||||||||||||||||||
(In Millions Except Ratios) | 2013 | 2012 | 2011(a) | 2010(a) | 2009(a) | ||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest Expense, Including Amortization of Deferred Finance Fees | $ | 55 | $ | 55 | $ | 17 | $ | — | $ | — | |||||||||
Interest Portion of Rental Expense (b) | 25 | 24 | 21 | 18 | 16 | ||||||||||||||
Total Fixed Charges | 80 | 79 | 38 | 18 | 16 | ||||||||||||||
Earnings Before Income Taxes, Discontinued Operations and Fixed Charges: | |||||||||||||||||||
Pre-tax income (before income or loss from equity investees) | 298 | 388 | 379 | 387 | 277 | ||||||||||||||
Fixed Charges | 80 | 79 | 38 | 18 | 16 | ||||||||||||||
Total Earnings Available For Fixed Charges | $ | 378 | $ | 467 | $ | 417 | $ | 405 | $ | 293 | |||||||||
Ratio of Earnings to Fixed Charges: | 4.7 | 5.9 | 10.9 | 22.7 | 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. |