EXHIBIT 12
CASE CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDENDS
(DOLLARS IN MILLIONS)
YEARS ENDED
DECEMBER 31,
----------------
1997 1996 1995
---- ---- ----
Net Income................................................... $403 $316 $337
Add:
Interest................................................... 170 160 174
Amortization of capitalized debt expense................... 1 4 6
Portion of rentals representative of interest factor....... 12 12 12
Income tax expense and other taxes on income............... 191 185 81
Fixed charges of unconsolidated subsidiaries............... 3 3 2
Extraordinary items (net of taxes)......................... -- 33 --
Cumulative effect of change in accounting principles (net
of taxes)................................................. -- -- 9
---- ---- ----
Earnings as defined...................................... $780 $713 $621
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Interest..................................................... $170 $160 $174
Interest capitalized......................................... 2 1 2
Amortization of capitalized debt expense..................... 1 4 6
Portion of rentals representative of interest factor......... 12 12 12
Fixed charges of unconsolidated subsidiaries................. 3 3 2
---- ---- ----
Fixed charges as defined................................. $188 $180 $196
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Preferred dividends:
Amount declared............................................ $ 7 $ 7 $ 7
Gross-up to pre-tax based on 32%, 35% and 19% effective
rates, respectively....................................... $ 10 $ 11 $ 9
Ratio of earnings to fixed charges and preferred dividends... 3.94x 3.73x 3.03x
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