EXHIBIT 12 INGERSOLL-RAND COMPANY COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollar Amounts in Millions) (2) Years Ended December 31, Fixed charges: 1995 1994 1993 1992 1991 Interest expense........................... $ 90.0 $ 46.9 $ 60.2 $ 64.7 $ 64.5 Amortization of debt discount and expense.. .8 .4 .7 .3 .3 Rentals (one-third of rentals)............. 21.6 18.8 19.4 20.8 21.2 Capitalized interest....................... 3.6 3.2 3.1 3.5 4.6 Total fixed charges.......................... $116.0 $ 69.3 $ 83.4 $ 89.3 $ 90.6 Net earnings (loss).......................... 270.3 $211.1 $142.5 $(234.4) $150.6 Add: Minority income (loss) of majority- owned subsidiaries.................. 14.5 15.1 13.6 (33.2) 1.9 Taxes on income....................... 158.9 118.8 90.0 67.4 84.6 Fixed charges......................... 116.0 69.3 83.4 89.3 90.6 Effect of accounting changes.......... -- -- 21.0 350.0 -- Less: Capitalized interest.................. 3.6 3.2 3.0 3.4 4.6 Undistributed earnings (losses) from less than 50% owned affiliates...... 33.3 33.3 40.0 16.6 13.5 Earnings available for fixed charges ........ $522.8 $377.8 $307.5 $ 219.1 $309.6 Ratio of earnings to fixed charges .......... 4.51 5.46 3.69(1) 2.45(3) 3.42(4) Undistributed earnings (losses) from less than 50% owned affiliates: Equity in earnings (losses)................ $ 36.6 $ 36.6 $ 42.1 $ 17.9 $ 14.7 Less: Dividends paid ................... 3.3 3.3 2.1 1.3 1.2 Undistributed earnings (losses) from less-than 50% owned affiliates........... $ 33.3 $ 33.3 $ 40.0 $ 16.6 $ 13.5 (1) The 1993 calculation includes the effect of the $5 million pretax charge relating to the restructure of the company's underground mining machinery business. Excluding this amount, the ratio would have been 3.75. (2) The company's portion of the earnings and fixed charges of the Dresser-Rand Company are included through September 30, 1992. Effective October 1, 1992, the company's ownership interest in the Dresser-Rand Company was reduced from 50% to 49%. (3) The 1992 calculation includes (i) the effect of the $10 million pretax charge relating to the restructure of the company's aerospace bearings business and (ii) the full effect of the $70 million pretax restructure of operations charge relating to the Ingersoll-Dresser Pump Company. Excluding the 1992 restructure charges the ratio would have been 3.35. (4) The 1991 ratio includes the $7.1 million net pretax benefit from a restructure of operations. Excluding this amount the ratio would have been 3.34. 115