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EXHIBIT 12
ITT INDUSTRIES, INC. AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO TOTAL FIXED CHARGES
AND CALCULATION OF EARNINGS TO TOTAL FIXED CHARGES AND
PREFERRED DIVIDEND REQUIREMENTS
(IN MILLIONS)
YEARS ENDED DECEMBER 31,
------------------------------------------------
1998 1997 1996 1995 1994
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Earnings:
Income (loss) from continuing
operations............................. $ (97.6) $ 11.9 $ 66.4 $(130.7) $ 36.9
Add (deduct):
Adjustment for distributions in excess
of (less than) undistributed equity
earnings and losses(a).............. 1.1 2.1 (0.8) (0.7) --
Income taxes (benefits)................ (62.4) 7.6 44.3 (46.6) 39.8
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(158.9) 21.6 109.9 (178.0) 76.7
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Fixed Charges:
Interest and other financial charges... 125.8 133.2 169.0 175.2 115.2
Interest factor attributable to
rentals(b).......................... 15.1 17.7 15.8 16.0 13.4
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140.9 150.9 184.8 191.2 128.6
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Earnings, as adjusted, from continuing
operations............................. $ (18.0) $172.5 $294.7 $ 13.2 $205.3
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Fixed Charges:
Fixed charges above.................... $ 140.9 $150.9 $184.8 $ 191.2 $128.6
Interest capitalized................... -- 1.1 1.1 2.9 6.8
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Total fixed charges................. 140.9 152.0 185.9 194.1 135.4
Dividends on preferred stock
(pre-income tax basis)(c).............. -- -- -- 23.4 47.5
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Total fixed charges and preferred
dividend requirements............. $ 140.9 $152.0 $185.9 $ 217.5 $182.9
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Ratios:
Earnings, as adjusted, from continuing
operations to total fixed
charges(d).......................... -- 1.13 1.59 -- 1.52
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Earnings, as adjusted, from continuing
operations to total fixed charges
and preferred dividend
requirements(d)..................... -- 1.13 1.59 -- 1.12
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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 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 the 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.
d) No ratios are shown for those periods in which earnings were insufficient to
cover fixed charges and combined fixed charges and preferred stock dividends.
As a result of the net loss incurred for the year ended December 31, 1998,
earnings were inadequate to cover fixed charges and preferred stock dividends
by $158.9 million. As a result of the net loss incurred for the year ended
December 31, 1995, earnings were inadequate to cover fixed charges and
combined fixed charges and preferred stock dividends by $180.9 million and
$204.3 million, respectively.