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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,
------------------- ---------------------------------------------------------
1997 1996 1996 1995 1994 1993 1992
------- ------- ------- ------- ------- ------- ---------
Earnings:
Income from continuing operations... $ 126.9 $ 107.7 $ 222.6 $ 20.7 $ 201.6 $ 134.8 $ 655.0
Add(deduct):
Adjustment for distributions in
excess of (less than)
undistributed equity earnings
and losses a)................... 1.1 1.0 1.9 .6 -- (2.6) (30.8)
Income taxes...................... 81.1 74.8 148.4 50.2 147.5 65.1 311.3
Amortization of interest
capitalized..................... .4 .4 .9 2.5 .7 3.9 2.7
------ ------ ------ ------ ------ ------ --------
209.5 183.9 373.8 74.0 349.8 201.2 938.2
------ ------ ------ ------ ------ ------ --------
Fixed Charges:
Interest and other financial
charges......................... 64.3 83.2 169.0 175.2 115.2 154.0 180.0
Interest factor attributable to
rentals b)...................... 15.5 15.4 30.9 29.0 22.0 24.2 24.8
------ ------ ------ ------ ------ ------ --------
79.8 98.6 199.9 204.2 137.2 178.2 204.8
------ ------ ------ ------ ------ ------ --------
Earnings, as adjusted, from
continuing operations............. $ 289.3 $ 282.5 $ 573.7 $ 278.2 $ 487.0 $ 379.4 $ 1,143.0
====== ====== ====== ====== ====== ====== ========
Fixed Charges:
Fixed charges above............... $ 79.8 $ 98.6 $ 199.9 $ 204.2 $ 137.2 $ 178.2 $ 204.8
Interest capitalized.............. -- .5 1.1 2.9 6.8 8.0 11.6
------ ------ ------ ------ ------ ------ --------
Total fixed charges......... 79.8 99.1 201.0 207.1 144.0 186.2 216.4
Dividends on preferred stock (pre-
income tax basis)c)............... -- -- -- 23.4 47.5 50.0 63.0
------ ------ ------ ------ ------ ------ --------
Total fixed charges and
preferred dividend
requirements.............. $ 79.8 $ 99.1 $ 201.0 $ 230.5 $ 191.5 $ 236.2 $ 279.4
====== ====== ====== ====== ====== ====== ========
Ratios:
Earnings, as adjusted, from
continuing operations to total
fixed charges................... 3.63 2.85 2.85 1.34 3.38 2.04 5.28
====== ====== ====== ====== ====== ====== ========
Earnings, as adjusted, from
continuing operations to total
fixed charges and preferred
dividend requirements........... 3.63 2.85 2.85 1.21 2.54 1.61 4.09
====== ====== ====== ====== ====== ====== ========
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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) One-third of rental expense is deemed to be representative of interest factor
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 at
the effective income tax rate.
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