Eaton Corporation plc
Second Quarter 2018 Report on Form 10-Q
Item 6
Exhibit 12
Ratio of Earnings to Fixed Charges
| Six months ended June 30 | Year ended December 31 | |||||||||||||||||||||||
| (Millions of dollars) | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||
Income from continuing operations before income taxes and noncontrolling interests in consolidated subsidiaries | $ | 1,259 | $ | 3,368 | $ | 2,118 | $ | 2,133 | $ | 1,762 | $ | 1,870 | ||||||||||||
Adjustments | ||||||||||||||||||||||||
| Loss (income) of equity investees | 12 | (1 | ) | (14 | ) | (11 | ) | (6 | ) | 2 | ||||||||||||||
| Distributed income of equity investees | 2 | 7 | 9 | 9 | 4 | 77 | ||||||||||||||||||
| Interest expensed | 160 | 273 | 240 | 237 | 250 | 290 | ||||||||||||||||||
| Amortization of debt issue costs | 2 | 7 | 7 | 8 | 9 | 10 | ||||||||||||||||||
| Estimated portion of rent expense representing interest | 39 | 74 | 73 | 75 | 81 | 80 | ||||||||||||||||||
| Amortization of capitalized interest | 6 | 11 | 12 | 10 | 14 | 13 | ||||||||||||||||||
Adjusted income from continuing operations before income taxes | $ | 1,480 | $ | 3,739 | $ | 2,445 | $ | 2,461 | $ | 2,114 | $ | 2,342 | ||||||||||||
Fixed charges | ||||||||||||||||||||||||
| Interest expensed | $ | 160 | $ | 273 | $ | 240 | $ | 237 | $ | 250 | $ | 290 | ||||||||||||
| Interest capitalized | 8 | 11 | 12 | 13 | 13 | 11 | ||||||||||||||||||
| Amortization of debt issue costs | 2 | 7 | 7 | 8 | 9 | 10 | ||||||||||||||||||
| Estimated portion of rent expense representing interest | 39 | 74 | 73 | 75 | 81 | 80 | ||||||||||||||||||
| Total fixed charges | $ | 209 | $ | 365 | $ | 332 | $ | 333 | $ | 353 | $ | 391 | ||||||||||||
| Ratio of earnings to fixed charges | 7.08 | 10.24 | 7.36 | 7.39 | 5.99 | 5.99 | ||||||||||||||||||