EXHIBIT 12
CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES AND CALCULATION
OF EARNINGS TO TOTAL FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
(In millions)
YEAR ENDED DECEMBER 31 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations | $ | 650.7 | $ | 775.2 | $ | 633.0 | $ | 499.7 | $ | 528.8 | ||||||||||||||
Add: | ||||||||||||||||||||||||
Adjustment for distributions in excess of undistributed equity earnings and losses (a) | 0.7 | 1.2 | 2.1 | 1.0 | 0.8 | |||||||||||||||||||
Income tax expense | 174.5 | 312.3 | 265.5 | 227.6 | 144.7 | |||||||||||||||||||
825.9 | 1,088.7 | 900.6 | 728.3 | 674.3 | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest and other financial charges | 99.5 | 140.8 | 114.9 | 86.2 | 75.0 | |||||||||||||||||||
Interest factor attributable to rentals (b) | 47.1 | 44.4 | 33.1 | 28.3 | 28.9 | |||||||||||||||||||
146.6 | 185.2 | 148.0 | 114.5 | 103.9 | ||||||||||||||||||||
Earnings, as adjusted, from continuing operations | $ | 679.3 | $ | 903.5 | $ | 752.6 | $ | 613.8 | $ | 570.4 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Fixed charges above | $ | 146.6 | $ | 185.2 | $ | 148.0 | $ | 114.5 | $ | 103.9 | ||||||||||||||
Interest capitalized | — | — | — | — | — | |||||||||||||||||||
Total fixed charges | 146.6 | 185.2 | 148.0 | 114.5 | 103.9 | |||||||||||||||||||
Dividends on preferred stock (pre-income tax basis) | — | — | — | — | — | |||||||||||||||||||
Total fixed charges and preferred dividend requirements | $ | 146.6 | $ | 185.2 | $ | 148.0 | $ | 114.5 | $ | 103.9 | ||||||||||||||
Ratios: | ||||||||||||||||||||||||
Earnings, as adjusted, from continuing operations to total fixed charges | 4.63 | 4.88 | 5.09 | 5.36 | 5.49 | |||||||||||||||||||
Earnings, as adjusted, from continuing operations to total fixed charges and preferred dividend requirements | 4.63 | 4.88 | 5.09 | 5.36 | 5.49 | |||||||||||||||||||
Notes:
(a) The adjustment for distributions in excess of undistributed equity earnings and losses represents the adjustment to income for companies in which less than 50% equity is owned.
(b) One-third of rental expense is deemed to be representative of the interest factor in rental expense.