Exhibit 12.1
Illinois Tool Works Inc.
Computation of Historical Ratios of Earnings to Fixed Charges
(in thousands, except ratio data)
| Six Months Ended June 30, | Fiscal Year Ended December 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
Income from continuing operations | $ | 998,043 | $ | 2,017,014 | $ | 1,452,438 | $ | 968,638 | $ | 1,623,963 | $ | 1,764,678 | ||||||||||||
Plus: | ||||||||||||||||||||||||
Fixed charges (from below) | 129,651 | 251,613 | 230,220 | 221,443 | 206,729 | 148,909 | ||||||||||||||||||
Dividends of unconsolidated affiliates | 2,884 | 5,699 | 3,370 | 3,448 | 4,315 | 4,537 | ||||||||||||||||||
Income taxes | 407,600 | 575,700 | 636,400 | 245,282 | 635,706 | 726,321 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Income from unconsolidated affiliates, net of taxes | (3,857 | ) | (8,130 | ) | (6,744 | ) | (3,511 | ) | (6,761 | ) | (5,237 | ) | ||||||||||||
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Net Earnings | $ | 1,534,321 | $ | 2,841,896 | $ | 2,315,684 | $ | 1,435,300 | $ | 2,463,952 | $ | 2,639,208 | ||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | 99,911 | $ | 192,133 | $ | 175,163 | $ | 164,589 | $ | 154,368 | $ | 101,886 | |||||||||||||
Estimate of interest within rental expense | 29,740 | 59,480 | 55,057 | 56,854 | 52,361 | 47,023 | ||||||||||||||||||
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Total Fixed Charges | $ | 129,651 | $ | 251,613 | $ | 230,220 | $ | 221,443 | $ | 206,729 | $ | 148,909 | ||||||||||||
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Ratio of Earnings to Fixed Charges(1) | 11.8x | 11.3x | 10.1x | 6.5x | 11.9x | 17.7x | ||||||||||||||||||
| (1) | Certain reclassifications of prior years’ data have been made to conform to current year reporting, including discontinued operations. Fiscal years 2010 and 2009 have been restated for the elimination of the one-month lag for the reporting of our international operations outside of North America. See “Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2011 for more detail regarding discontinued operations and the elimination of the one-month lag. |
