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,
-----------------
1998 1997 1996
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Net Income................................................... $ 64 $ 403 $ 316
Add:
Interest................................................... 240 170 160
Amortization of capitalized debt expense................... 3 1 4
Portion of rentals representative of interest factor....... 12 12 12
Income tax expense and other taxes on income............... 42 191 185
Fixed charges of 50% owned, unconsolidated subsidiaries.... 5 3 3
Extraordinary items (net of taxes)......................... -- -- 33
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Earnings as defined...................................... $ 366 $ 780 $ 713
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Interest..................................................... $ 240 $ 170 $ 160
Interest capitalized......................................... 3 2 1
Amortization of capitalized debt expense..................... 3 1 4
Portion of rentals representative of interest factor......... 12 12 12
Fixed charges of 50% owned, unconsolidated subsidiaries...... 5 3 3
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Fixed charges as defined................................. $ 263 $ 188 $ 180
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Preferred dividends:
Amount declared............................................ $ 7 $ 7 $ 7
Gross-up to pre-tax based on 40%, 32% and 35% effective
rates, respectively....................................... $ 12 $ 10 $ 11
Ratio of earnings to fixed charges and preferred dividends... 1.33x 3.94x 3.73x
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