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, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes | $ | 2,925.1 | $ | 2,496.5 | $ | 2,001.8 | $ | 2,079.0 | $ | 2,002.4 | ||||||||||
Add: | ||||||||||||||||||||
Interest on indebtedness and amortization of debt expense and discount or premium | 105.6 | 166.6 | 166.6 | 142.5 | 123.7 | |||||||||||||||
Portion of rents representative of interest factor | 61.1 | 52.5 | 47.5 | 43.5 | 41.5 | |||||||||||||||
Loss on equity investments | — | — | — | — | — | |||||||||||||||
Less: | ||||||||||||||||||||
Gain on equity investments | (3.8 | ) | (3.7 | ) | (3.4 | ) | (2.0 | ) | (8.5 | ) | ||||||||||
Income as adjusted | $ | 3,088.0 | $ | 2,711.9 | $ | 2,212.5 | $ | 2,263.0 | $ | 2,159.1 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of debt expense and discount or premium | $ | 105.6 | $ | 166.6 | $ | 166.6 | $ | 142.5 | $ | 123.7 | ||||||||||
Portion of rents representative of interest factor | 61.1 | 52.5 | 47.5 | 43.5 | 41.5 | |||||||||||||||
Capitalized interest | 9.0 | 6.3 | 3.4 | 2.5 | 2.3 | |||||||||||||||
Total fixed charges | $ | 175.7 | $ | 225.4 | $ | 217.5 | $ | 188.5 | $ | 167.5 | ||||||||||
Preferred Dividends: | ||||||||||||||||||||
Dividends declared on Preference stock | 35.3 | 34.8 | 35.5 | 35.3 | 32.8 | |||||||||||||||
Total preferred dividends | $ | 35.3 | $ | 34.8 | $ | 35.5 | $ | 35.3 | $ | 32.8 | ||||||||||
Ratio of earnings to fixed charges | 17.6 | 12.0 | 10.2 | 12.0 | 12.9 | |||||||||||||||
Ratio of earnings to fixed charges and preferred dividends | 14.6 | 10.4 | 8.7 | 10.1 | 10.8 | |||||||||||||||