EXHIBIT 12
ARMSTRONG WORLD INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ millions, except ratios)
Year Ended December 31,
1999 1998 1997 1996 1995
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DETERMINATION OF EARNINGS
Income from continuing operations
before income taxes, minority interests
and equity earnings $ 14.4 $(35.3) $326.5 $221.4 $ 8.2
Add:
Fixed charges 117.3 78.8 35.7 39.3 59.0
Distributed income from affiliates 40.8 11.4 6.2 1.4 0.0
Amortization of capitalized interest 0.9 0.8 0.6 0.0 0.0
Less:
Capitalized interest (4.3) (5.8) (1.8) (2.9) 0.0
Preferred dividends 0.0 0.0 0.0 (8.9) (18.8)
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Total earnings as defined $169.1 $ 49.9 $367.2 $250.3 $ 42.8
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FIXED CHARGES
Interest expense 1 $105.9 $ 64.3 $ 28.7 $ 23.1 $ 34.2
Capitalized interest 4.3 5.8 1.8 2.9 0.0
Preferred dividends 0.0 0.0 0.0 8.9 18.8
Estimate of interest included in rent expense 7.1 8.7 5.2 4.4 6.0
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Total fixed charges $117.3 $ 78.8 $ 35.7 $ 39.3 $ 59.0
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RATIO OF EARNINGS TO FIXED CHARGES 1.44 0.63 10.29 6.37 0.73
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1 Includes amortization of capitalized interest and debt premiums and discounts
In 1995, Adjusted Earnings were inadequate to cover Fixed Charges by $16.2
million. In 1998, Adjusted Earnings were inadequate to cover Fixed Charges by
$28.9 million.