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EXHIBIT 12(A)
ITT CORPORATION AND SUBSIDIARIES
CALCULATION OF RATIOS OF EARNINGS TO TOTAL FIXED CHARGES
AND CALCULATION OF EARNINGS TO TOTAL FIXED CHARGES AND
PREFERRED DIVIDEND REQUIREMENTS OF ITT
(Millions of Dollars)
SIX MONTHS
ENDED JUNE
30, YEARS ENDED DECEMBER 31,
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1995 1994 1994 1993 1992 1991 1990
---- ---- ---- ---- ------ ---- ----
Earnings:
Income from continuing operations......................... $ 91 $ 98 $202 $135 $ 655 $231 $521
Add (deduct):
Adjustment for undistributed equity earnings............ -- -- -- (2) (31) (146) (129)
Income taxes............................................ 62 69 147 65 311 84 296
Minority equity in net income........................... -- -- -- -- -- -- 4
Amortization of interest capitalized.................... -- 1 1 4 3 2 --
---- ---- ---- ---- ------ ---- ----
153 168 350 202 938 171 692
---- ---- ---- ---- ------ ---- ----
Fixed Charges:
Interest and other financial charges.................... 80 63 114 153 180 125 130
Interest factor attributable to rentals................. 11 12 22 24 25 25 23
---- ---- ---- ---- ------ ---- ----
91 75 136 177 205 150 153
---- ---- ---- ---- ------ ---- ----
Earnings, as adjusted, from continuing operations......... $244 $243 $486 $379 $1,143 $321 $845
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Fixed Charges:
Fixed charges above..................................... $ 91 $ 75 $136 $177 $ 205 $150 153
Dividends on preferred stock of subsidiaries included in
minority equity....................................... -- -- -- -- -- -- 4
Interest capitalized.................................... 2 4 7 8 12 11 2
---- ---- ---- ---- ------ ---- ----
Total fixed charges..................................... 93 79 143 185 217 161 159
Dividends on preferred stock of ITT (pre-income tax
basis).................................................. 24 24 48 50 63 78 83
---- ---- ---- ---- ------ ---- ----
Total fixed charges and preferred dividend
requirements.......................................... $117 $103 $191 $235 $ 280 $239 $242
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Ratios:
Earnings, as adjusted, from continuing operations to
total fixed charges................................... 2.62 3.08 3.40 2.05 5.27 1.99 5.31
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Earnings, as adjusted, from continuing operations to
total fixed charges and preferred dividend
requirements of ITT................................... 2.09 2.36 2.54 1.61 4.08 1.34 3.49
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Notes:
(a) The adjustment for undistributed equity earnings represents the adjustment
to income for undistributed earnings of companies in which at least 20% but
less than 50% equity is owned.
(b) The interest factor attributable to rentals was computed by calculating the
estimated present value of all long-term rental commitments and applying
the approximate weighted average interest rate inherent in the lease
obligations and adding thereto the interest element assumed in short-term
cancelable and contingent rentals excluded from the commitment data but
included in rental expense.
(c) The dividend requirements on preferred stock of ITT have been determined by
adding to the total preferred dividends an allowance for income taxes,
calculated on the effective income tax rate.
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