EXHIBIT 12
CASE CORPORATION AND CONSOLIDATED SUBSIDIARIES
AND
THE FARM AND CONSTRUCTION EQUIPMENT BUSINESS
OF TENNECO INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
(DOLLARS IN MILLIONS)
YEARS ENDED
DECEMBER 31,
----------------
1996 1995 1994
---- ---- ----
Net Income................................................... $316 $337 $131
Add:
Interest................................................... 160 174 160
Amortization of capitalized debt expense................... 4 6 --
Portion of rentals representative of interest factor....... 12 12 11
Income tax expense and other taxes on income............... 185 81 93
Fixed charges of unconsolidated subsidiaries............... 3 2 2
Extraordinary loss (net of taxes).......................... 33 -- 5
Cumulative effect of change in accounting principles (net
of taxes)................................................. -- 9 29
---- ---- ----
Earnings as defined...................................... $713 $621 $431
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Interest..................................................... $160 $174 $160
Interest capitalized......................................... 1 2 3
Amortization of capitalized debt expense..................... 4 6 --
Portion of rentals representative of interest factor......... 12 12 11
Fixed charges of unconsolidated subsidiaries................. 3 2 2
---- ---- ----
Fixed charges as defined................................. $180 $196 $176
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Preferred dividends:
Amount declared............................................ $ 7 $ 7 $ 3
Gross-up to pre-tax based on 35%, 19% and 36% effective
rates, respectively....................................... $ 11 $ 9 $ 5
Ratio of earnings to fixed charges and preferred dividends... 3.73x 3.03x 2.38x
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