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EXHIBIT 12
ITT INDUSTRIES, INC. AND SUBSIDIARIES
CALCULATION OF RATIOS OF EARNINGS TO TOTAL FIXED CHARGES
AND CALCULATION OF EARNINGS TO TOTAL FIXED CHARGES AND
PREFERRED DIVIDEND REQUIREMENTS
(IN MILLIONS)
THREE MONTHS ENDED
MARCH 31,
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1996 1995
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Earnings:
Income from continuing operations ......................................... $ 40 $ 45
Add:
Adjustment for distributions in excess of undistributed equity earnings
and losses .......................................................... 1 --
Income taxes ........................................................... 29 34
Amortization of interest capitalized ................................... -- --
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70 79
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Fixed Charges:
Interest and other financial charges ................................... 44 33
Interest factor attributable to rentals ................................ 7 6
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51 39
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Earnings, as adjusted, from continuing operations $121 $118
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Fixed Charges:
Fixed charges above .................................................... $ 51 $ 39
Interest capitalized ................................................... -- 1
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Total fixed charges ................................................. 51 40
Dividends on preferred stock (pre-income tax basis) -- 12
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Total fixed charges and preferred dividend requirements ............. $ 51 $ 52
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Ratios:
Earnings, as adjusted, from continuing operations to total fixed charges 2.37 2.95
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Earnings, as adjusted, from continuing operations to total fixed charges
and preferred dividend requirements ................................. 2.37 2.27
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Notes:
a) The adjustment for distributions in excess of undistributed equity
earnings and losses represents the adjustment to income for
distributions in excess of undistributed earnings and losses 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 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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