Exhibit 12
MELVILLE CORPORATION AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in thousands)
1994 1993 1992 1991 1990
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Fixed Charges: (1)
Interest Expense $ 34,113 $ 25,846 $ 26,519 $ 30,489 $ 23,822
Interest Capitalized 305 583 124 748 1,930
Interest Portion of Operating Leases 180,000 166,000 160,000 149,000 124,000
Interest Portion of Capital Leases 2,973 3,390 4,030 4,507 4,983
Amortization of Debt Expense 127 127 127 127 127
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Total Fixed Charges $ 217,518 $ 195,946 $ 190,800 $ 184,871 $ 154,862
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Adjusted Fixed Charges:
Total Fixed Charges $ 217,518 $ 195,946 $ 190,800 $ 184,871 $ 154,862
Interest Capitalized 305 583 124 748 1,930
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Adjusted Fixed Charges $ 217,213 $ 195,363 $ 190,676 $ 184,123 $ 152,932
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Earnings:
Earnings before Income Taxes, Minority Interests
and Cumulative Effect of Change in
Accounting Principle (2) $ 578,106 $ 599,527 $ 335,496 $ 640,098 $ 687,338
Adjusted Fixed Charges 217,213 195,363 190,676 184,123 152,932
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$ 795,319 $ 794,890 $ 526,172 $ 824,221 $ 840,270
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Ratio of Earnings to Fixed Charges 3.66 4.06 2.76 4.46 5.43
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(1) The Company formed an Employee Stock Ownership Plan effective January 1,
1989. On June 23, 1989, the ESOP Trust borrowed $357.5 million
from qualified lenders, the proceeds of which were used to purchase a new
series of preference stock issued by the Company. The loan to the ESOP
Trust has been guaranteed by the Company. Annualized dividends on
preference stock totaled $24.9 million in 1994, $25.3 million in 1993,
$25.8 million in 1992, $26.0 million in 1991 and $26.1 million in 1990.
These amounts are not reflected in the calculation above.
(2) 1992 reflects the impact of the strategic realignment charge of $346,979.