EXHIBIT 12
COLGATE-PALMOLIVE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Dollars in Millions Except Per Share Amounts
Year Ended
December 31, 2001
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Income before income taxes....................................................... $1,668.7
Add:
Interest on indebtedness and amortization of debt expense and discount or premium 178.0
Portion of rents representative of interest factor............................... 32.3
Interest on ESOP debt, net of dividends.......................................... 1.0
Less:
Income of less than fifty-percent-owned subsidiaries............................. (0.2)
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Income as adjusted............................................................... $1,879.8
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Fixed Charges:
Interest on indebtedness and amortization of debt expense and discount or premium 178.0
Portion of rents representative of interest factor............................... 32.3
Interest on ESOP debt, net of dividends.......................................... 1.0
Capitalized interest............................................................. 14.4
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Total fixed charges.............................................................. $ 225.7
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Ratio of earnings to fixed charges............................................... 8.3
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In June 1989, the Company's leveraged employee stock ownership plan (ESOP)
issued $410.0 long-term notes due through 2009 bearing an average interest rate
of 8.7%. These notes are guaranteed by the Company. Interest incurred on the
ESOP's notes was $30.4 in 2001. This interest is funded through preferred and
common stock dividends. The fixed charges presented above include interest on
ESOP indebtedness to the extent it is not funded through preferred and common
stock dividends.
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