Eaton Corporation plc
2014 Annual Report on Form 10-K
Item 15(b)
Exhibit 12
Ratio of Earnings to Fixed Charges
Year ended December 31 | ||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Income from continuing operations before income taxes and noncontrolling interests in consolidated subsidiaries | $ | 1,761 | $ | 1,884 | $ | 1,251 | $ | 1,553 | $ | 1,036 | ||||||||||
Adjustments | ||||||||||||||||||||
(Income) loss of equity investees | (6 | ) | 2 | (2 | ) | (2 | ) | (14 | ) | |||||||||||
Distributed income of equity investees | 4 | 77 | 19 | 3 | 15 | |||||||||||||||
Interest expensed | 250 | 290 | 165 | 154 | 162 | |||||||||||||||
Amortization of debt issue costs | 9 | 10 | 74 | 4 | 4 | |||||||||||||||
Estimated portion of rent expense representing interest | 81 | 80 | 66 | 65 | 57 | |||||||||||||||
Amortization of capitalized interest | 14 | 13 | 12 | 10 | 10 | |||||||||||||||
Adjusted income from continuing operations before income taxes | $ | 2,113 | $ | 2,356 | $ | 1,585 | $ | 1,787 | $ | 1,270 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest expensed | $ | 250 | $ | 290 | $ | 165 | $ | 154 | $ | 162 | ||||||||||
Interest capitalized | 13 | 11 | 23 | 18 | 8 | |||||||||||||||
Amortization of debt issue costs | 9 | 10 | 74 | 4 | 4 | |||||||||||||||
Estimated portion of rent expense representing interest | 81 | 80 | 66 | 65 | 57 | |||||||||||||||
Total fixed charges | $ | 353 | $ | 391 | $ | 328 | $ | 241 | $ | 231 | ||||||||||
Ratio of earnings to fixed charges | 5.99 | 6.03 | 4.83 | 7.41 | 5.50 |