Exhibit 12
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MELVILLE CORPORATION AND SUBSIDIARY COMPANIES
Computation of Ratio of Earnings to Fixed Charges
($ in thousands)
1993 1992 1991 1990 1989
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Fixed Charges: (1)
Interest Expense $ 25,846 $ 26,519 $ 30,489 $ 23,822 $ 9,088
Interest Capitalized 583 124 748 1,930 1,854
Interest Portion of Operating
Leases 166,000 160,000 149,000 124,000 96,000
Interest Portion of Capital
Leases 3,390 4,030 4,507 4,983 5,452
Amortization of Debt Expense 127 127 127 127 63
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Total Fixed Charges $ 195,946 $ 190,800 $ 184,871 $ 154,862 $112,457
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Adjusted Fixed Charges:
Total Fixed Charges $ 195,946 $ 190,800 $ 184,871 $ 154,862 $112,457
Interest Capitalized 583 124 748 1,930 1,854
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Adjusted Fixed Charges $ 195,363 $ 190,676 $ 184,123 $ 152,932 $110,603
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Earnings:
Earnings before Income Taxes,
Minority Interests and Cumulative
Effect of Change in Accounting
Principle (2) $ 599,527 $ 335,496 $ 640,098 $ 687,338 $704,305
Adjusted Fixed Charges 195,363 190,676 184,123 152,932 110,603
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$ 794,890 $ 526,172 $ 824,221 $ 840,270 $814,908
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Ratio of Earnings to Fixed Charges 4.06 2.76 4.46 5.43 7.25
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<FN>
(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 $25.2 million in 1993, $25.7 million in 1992,
$26.0 million in 1991, $26.1 million in 1990, and $24.3 million in 1989.
These amounts are not reflected in the calculation above.
(2) 1992 reflects the impact of the strategic realignment charge of $346,979.
</FN>