EXHIBIT 12
COLGATE-PALMOLIVE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in Millions Except Per Share Amounts)
Years Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes | $ | 2,496.5 | $ | 2,001.8 | $ | 2,079.0 | $ | 2,002.4 | $ | 2,041.9 | ||||||||||
Add: | ||||||||||||||||||||
Interest on indebtedness and amortization of debt expense and discount or premium | 166.6 | 166.6 | 142.5 | 123.7 | 128.1 | |||||||||||||||
Portion of rents representative of interest factor | 52.5 | 47.5 | 43.5 | 41.5 | 37.7 | |||||||||||||||
Loss on equity investments | — | — | — | — | — | |||||||||||||||
Less: | ||||||||||||||||||||
Gain on equity investments | (3.7 | ) | (3.4 | ) | (2.0 | ) | (8.5 | ) | (0.3 | ) | ||||||||||
Income as adjusted | $ | 2,711.9 | $ | 2,212.5 | $ | 2,263.0 | $ | 2,159.1 | $ | 2,207.4 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of debt expense and discount or premium | $ | 166.6 | $ | 166.6 | $ | 142.5 | $ | 123.7 | $ | 128.1 | ||||||||||
Portion of rents representative of interest factor | 52.5 | 47.5 | 43.5 | 41.5 | 37.7 | |||||||||||||||
Capitalized interest | 6.3 | 3.4 | 2.5 | 2.3 | 4.0 | |||||||||||||||
Total fixed charges | $ | 225.4 | $ | 217.5 | $ | 188.5 | $ | 167.5 | $ | 169.8 | ||||||||||
Preferred Dividends: | ||||||||||||||||||||
Dividends declared on $4.25 Preferred Stock, adjusted to pretax amount | $ | — | $ | — | $ | — | $ | — | $ | 0.3 | ||||||||||
Dividends declared on Preference Stock | 34.8 | 35.5 | 35.3 | 32.8 | 32.7 | |||||||||||||||
Total preferred dividends | $ | 34.8 | $ | 35.5 | $ | 35.3 | $ | 32.8 | $ | 33.0 | ||||||||||
Ratio of earnings to fixed charges | 12.0 | 10.2 | 12.0 | 12.9 | 13.0 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 10.4 | 8.7 | 10.1 | 10.8 | 10.9 | |||||||||||||||