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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
(DOLLARS IN MILLIONS)
SIX MONTHS ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
--------------- ----------------------------------
1996 1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ------ ----
Earnings:
Income from continuing operations.... $108 $ 91 $ 21 $202 $135 $ 655 $ 231
Add (deduct):
Adjustment for distributions in
excess of (less than)
undistributed equity earnings
and losses a).................... 1 -- 1 -- (2) (31) (146)
Income taxes....................... 75 62 50 147 65 311 84
Amortization of interest capitalized -- -- 2 1 4 3 2
---- ---- ---- ---- ---- ------ ----
184 153 74 350 202 938 171
---- ---- ---- ---- ---- ------ ----
Fixed Charges:
Interest and other financial
charges.......................... 83 80 175 114 153 180 125
Interest factor attributable to
rentals b)....................... 15 11 29 22 24 25 25
---- ---- ---- ---- ---- ------ ----
98 91 204 136 177 205 150
---- ---- ---- ---- ---- ------ ----
Earnings, as adjusted, from
continuing operations.............. $282 $244 $278 $486 $379 $1,143 $ 321
==== ==== ==== ==== ==== ====== ====
Fixed Charges:
Fixed charges above................ 98 $ 91 $204 $136 $177 $ 205 $ 150
Interest capitalized............... -- 2 3 7 8 12 11
---- ---- ---- ---- ---- ------ ----
Total fixed charges.............. 98 93 207 143 185 217 161
Dividends on preferred stock
(pre-income tax basis) c).......... -- 24 24 48 50 63 78
---- ---- ---- ---- ---- ------ ----
Total fixed charges and preferred
dividend requirements.......... $ 98 $117 $231 $191 $235 $ 280 $ 239
==== ==== ==== ==== ==== ====== ====
Ratios:
Earnings, as adjusted, from
continuing operations to total
fixed charges.................... 2.88 2.62 1.34 3.40 2.05 5.27 1.99
==== ==== ==== ==== ==== ====== ====
Earnings, as adjusted, from
continuing operations to total
fixed charges and preferred
dividend requirements............ 2.88 2.09 1.20 2.54 1.61 4.08 1.34
==== ==== ==== ==== ==== ====== ====
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Notes:
a) The adjustment for distributions in excess of (less than) undistributed
equity earnings and losses represents the adjustment to income for
distributions in excess of (less than) 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 dividends 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.