THE STANLEY WORKS AND SUBSIDIARIES COMPUTATION OF EARNINGS TO FIXED CHARGES (in Millions of Dollars) THIRD QUARTER NINE MONTHS 1996 1995 1996 1995 Earnings before income taxes $59.0 $6.9 $163.5 $104.0 Add: Portion of rents representative of interest factor 3.3 3.2 10.0 9.8 Interest expense 6.3 8.5 20.6 26.5 Amortization on expense on long-term debt 0.1 0.1 0.2 0.2 Amortization of capitalized interest 0.2 0.2 ----- ----- ----- ----- Income as adjusted $68.7 $18.7 $194.5 $140.7 ===== ===== ===== ===== Fixed charges: Interest expense $6.3 $8.5 $20.6 $26.5 Amortization on expense on long-term debt 0.1 0.1 0.2 0.2 Capitalized Interest 0.1 0.2 Portion of rents representative of interest factor 3.3 3.2 10.0 9.8 ----- ----- ----- ----- Fixed charges $9.8 $11.8 $31.0 $36.5 ===== ===== ===== ===== Ratio of earnings to fixed charges 7.01 1.58 6.27 3.85 ===== ===== ===== =====