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Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS, EXCEPT RATIOS)
YEARS ENDED DECEMBER 31
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2002 2001 2000 1999 1998
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EARNINGS:
Net earnings $ 366.7 $ 273.6 $ 285.4 $ 318.5 $ 243.0
Provision for income taxes 128.9 44.2 111.0 140.4 122.4
Amortization of capitalized interest 0.5 0.6 0.5 0.3 0.2
Fixed charges excluding interest capitalized 22.5 26.3 24.2 21.3 19.3
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Total $ 518.6 $ 344.7 $ 421.1 $480.5 $ 384.9
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FIXED CHARGES:
Interest expense (gross of interest income) $ 12.6 $ 16.5 $ 15.0 $ 13.0 $ 12.6
Amortization of deferred financing expense 0.7 0.3 0.3 0.3 0.5
Interest capitalized 0.6 0.3 0.8 1.0 0.6
Interest component of rental expense 9.2 9.5 8.9 8.0 6.2
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Total $ 23.1 $ 26.6 $ 25.0 $ 22.3 $ 19.9
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RATIO OF EARNINGS TO FIXED CHARGES 22.5(a) 13.0(b) 16.8(c) 21.5 19.3
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(a) Excluding a ($5.9) million (($4.4 million, net of tax)) reversal of
restructuring charges in 2002, the company's ratio of earnings to fixed
charges would have been 22.2 times.
(b) Excluding a $87.7 million ($64.5 million, net of tax) restructuring and
related inventory charge in 2001, the company's ratio of earnings to fixed
charges would have been 16.2 times.
(c) Excluding a $41.3 million ($29.7 million, net of tax) restructuring charge
in 2000, the company's ratio of earnings to fixed charges would have been
18.5 times.
In the computation of the company's ratio of earnings to fixed charges, earnings
consist of earnings before income taxes, plus fixed charges, less capitalized
interest, plus amortization of capitalized interest. Fixed charges consist of
interest expense excluding the benefit of capitalized interest and including a
reasonable approximation of the interest component included in rental expense.