Exhibit 12
March 1, 2007
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STATEMENT OF COMPUTATION OF HONEYWELL’S RATIO OF EARNINGS TO FIXED CHARGES |
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(Dollars in millions) |
| YEAR ENDED DECEMBER 31, |
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Determination of Earnings: |
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Income (loss) before taxes |
| $ | 2,798 |
| $ | 2,296 |
| $ | 1,623 |
| $ | 1,583 |
| $ | (1,000 | ) |
Add (Deduct): |
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Amortization of capitalized interest |
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| 22 |
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| 22 |
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| 24 |
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| 24 |
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| 24 |
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Fixed charges |
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| 488 |
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| 465 |
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| 438 |
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| 440 |
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| 435 |
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Equity (income) loss - net of distributions |
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| (7 | ) |
| (30 | ) |
| (75 | ) |
| (38 | ) |
| (42 | ) |
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Total earnings, as defined |
| $ | 3,301 |
| $ | 2,753 |
| $ | 2,010 |
| $ | 2,009 |
| $ | (583 | ) |
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Fixed Charges: |
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Rents (a) |
| $ | 114 |
| $ | 109 |
| $ | 107 |
| $ | 105 |
| $ | 91 |
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Interest and other financial charges |
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| 374 |
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| 356 |
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| 331 |
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| 335 |
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| 344 |
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| 488 |
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| 465 |
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| 438 |
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| 440 |
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| 435 |
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Capitalized interest |
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| 22 |
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| 17 |
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| 18 |
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| 15 |
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| 21 |
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Total Fixed Charges |
| $ | 510 |
| $ | 482 |
| $ | 456 |
| $ | 455 |
| $ | 456 |
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Ratio of Earnings to Fixed Charges |
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| 6.47 |
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| 5.71 |
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| 4.41 |
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| 4.42 |
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| (1.28 | )(b) |
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(a) Denotes the equivalent of an appropriate portion of rentals representative of the interest factor on all rentals other than for capitalized leases.
(b) The ratio of earnings to fixed charges was less than 1:1 for the year ended December 31, 2002. In order to have achieved a ratio of earnings to fixed charges of 1:1, we would have had to have generated an additional $1,039 million of earnings in the year ended December 31, 2002.
