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EXHIBIT 12
W. R. GRACE & CO. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in millions except ratios)
(Unaudited)
Six Months Ended
Years Ended December 31, June 30,
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1995 (b) 1994 (c) 1993 (d) 1992 (e) 1991 1996 (f) 1995(g)
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Net (loss)/income from continuing operations $(196.6) $(41.4) $ 19.1 $ 1.4 $157.4 $274.7 $ 67.9
Add/(deduct):
(Benefit from)/provision for income taxes (115.8) (46.6) 10.1 79.9 99.1 154.9 28.3
Income taxes of 50%-owned companies . . . . - - .1 2.1 1.5 - -
Equity in unremitted losses/(earnings)
of less than 50%-owned companies . . . . .8 (.6) (.5) (2.0) ( .9) .5 (.9)
Interest expense and related financing
costs, including amortization of
capitalized interest . . . . . . . . . . . 179.8 138.5 122.7 162.7 209.6 93.1 83.7
Estimated amount of rental expense
deemed to represent the interest factor 8.5 10.1 11.3 14.0 12.7 5.6 7.1
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(Loss)/income as adjusted . . . . . . . . . . $(123.3) $ 60.0 $162.8 $258.1 $479.4 $528.8 $186.1
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Combined fixed charges and preferred stock
dividends: Interest expense and related
financing costs, including capitalized
interest. . . . . . . $195.5 $143.2 $122.8 $176.3 $224.5 $104.2 $90.3
Estimated amount of rental expense
deemed to represent the interest factor 8.5 10.1 11.3 14.0 12.7 5.6 7.1
------ ------ ------ ------ ------ ----- -----
Fixed charges . . . . . . . . . . . . . . . . 204.0 153.3 134.1 190.3 237.2 109.8 97.4
Preferred stock dividend requirements (a) . . .5 .5 .8 .8 .9 .4 .4
------ ------ ------ ------ ------ ------ -----
Combined fixed charges and preferred
stock dividends . . . . . . . . . . . . . $204.5 $153.8 $134.9 $191.1 $238.1 $110.2 $97.8
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Ratio of earnings to fixed charges . . . . . (h) (h) 1.21 1.36 2.02 4.82 1.91
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Ratio of earnings to combined fixed charges
and preferred stock dividends . . . . . . (h) (h) 1.21 1.35 2.01 4.80 1.90
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(a) For each period with an income tax provision, the preferred stock
dividend requirements are increased to include the pretax earnings
required to cover such requirements based on Grace's effective tax
rate for that period.
(b) Includes pretax provisions of $275.0 for asbestos-related
liabilities and insurance coverage; $220.0 relating to restructuring
costs, asset impairments and other activities; $77.0 for
environmental liabilities at former manufacturing sites; and $30.0
for corporate governance activities.
(c) Includes a pretax provision of $316.0 relating to asbestos-related
liabilities and insurance coverage.
(d) Includes a pretax provision of $159.0 relating to asbestos-related
liabilities and insurance coverage.
(e) Includes a pretax provision of $140.0 relating to a fumed silica
plant in Belgium.
(f) Includes a pretax gain of $326.4 on the sales of businesses,
principally the water treatment and process chemicals business; and
a pretax provision of $53.7 relating to restructuring costs.
(g) Includes a pretax provision of $20.0 for corporate governance
activities.
(h) As a result of the losses incurred for the years ended December 31,
1995 and 1994, Grace was unable to fully cover the indicated fixed
charges.