Exhibit 12 W. R. GRACE & CO. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (in millions except ratios) (Unaudited) Six Months Ended Years Ended December 31, (b) June 30, ---------------------------------------------- ----------------- 1993(c) 1992(d) 1991 1990 1989 1994(e) 1993(b) ------- ------- ------ ------ ------ ------- ------- Net income/(loss) from continuing operations . . . . . $134.4 $ 57.7 $201.7 $174.6 $145.9 $(96.1) $ 85.6 Add (deduct): Provision/(benefit) for income taxes. . . . . . . . 86.8 134.8 132.5 97.5 61.3 (61.6) 62.2 Income taxes of 50%-owned companies . . . . . . . . .1 2.1 1.5 1.9 1.2 -- -- Minority interest in income of majority-owned subsidiaries . . . . . . . . . . . -- -- -- 1.2 .6 -- -- Equity in unremitted earnings of less than 50%-owned companies . . . . . . . . . . (1.3) (1.8) (2.5) (2.1) (.3) (1.4) (.3) Interest expense, including amortization of capitalized interest . . . . . . . . . . . . . 119.8 152.9 198.4 235.7 224.8 48.5 59.9 Amortization of debt discount and expense . . . . . 4.3 1.5 2.1 1.9 1.9 .6 1.2 Estimated amount of rental expense deemed to represent the interest factor . . . . . 21.3 26.6 21.7 21.0 19.1 15.0 15.2 ------ ------ ------ ------ ------ ------ ------ Income/(loss) as adjusted. . . . . . . . . . . . . . . $365.4 $373.8 $555.4 $531.7 $454.5 $(95.0) $223.8 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Combined fixed charges and preferred stock dividends: Interest expense, including capitalized interest. . . . . . . . . . . . . . . . . . . . . $119.9 $166.5 $213.3 $244.7 $229.3 $ 49.7 $ 60.3 Amortization of debt discount and expense . . . . . 4.3 1.5 2.1 1.9 1.9 .6 1.2 Estimated amount of rental expense deemed to represent the interest factor . . . . . 21.3 26.6 21.7 21.0 19.1 15.0 15.2 ------ ------ ------ ------ ------ ------ ------ Fixed charges. . . . . . . . . . . . . . . . . . . . . 145.5 194.6 237.1 267.6 250.3 65.3 76.7 Preferred stock dividend requirements(a) . . . . . . . .9 .9 .9 .8 .7 .4 .5 ------ ------ ------ ------ ------ ------ ------ Combined fixed charges and preferred stock dividends. . . . . . . . . . . . . . . . . . . $146.4 $195.5 $238.0 $268.4 $251.0 $ 65.7 $ 77.2 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Ratio of earnings to fixed charges . . . . . . . . . . 2.51 1.92 2.34 1.99 1.82 (f) 2.92 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Ratio of earnings to combined fixed charges and preferred stock dividends. . . . . . . . . . . . . . 2.50 1.91 2.33 1.98 1.81 (f) 2.90 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ <FN> (a) Preferred stock dividend requirements, increased to an amount representing the pretax earnings that would be required to cover such dividend requirements based on the effective tax rates for the periods presented. (b) Restated to conform to the 1994 presentation. (c) Includes a provision of $159.0 relating to asbestos-related insurance coverage. (d) Includes a provision of $140.0 relating to a fumed silica plant in Belgium. (e) Includes a provision of $316.0 relating to asbestos-related insurance coverage. (f) As a result of the loss incurred for the six-month period ended June 30, 1994, Grace was unable to fully cover the indicated fixed charges.