Exhibit 12 THE STANLEY WORKS AND SUBSIDIARIES COMPUTATION OF EARNINGS TO FIXED CHARGES (in Millions of Dollars) Fiscal Year Ended -------------------------------------------------------------------------- January 2 January 3 December 28 December 30 December 31 1999 1998 1996 1995 1994 ------------- ------------- ------------- ------------- -------------- Earnings (loss) before income taxes and cumulative adjustment for accounting change $215.4 ($18.6) $174.2 $112.8 $201.8 Add: Portion of rents representative of interest factor $15.0 $11.6 $12.2 $13.4 $12.7 Interest expense 30.5 24.2 27.6 35.2 33.1 Amortization of expense on long-term debt 0.3 0.2 0.2 0.3 0.2 Amortization of capitalized interest 0.2 0.3 0.3 0.3 0.4 ------------- ------------- ------------- ------------- -------------- Income as adjusted $261.4 $17.7 $214.5 $162.0 $248.2 ============= ============= ============= ============= ============== Fixed charges: Interest expense $30.5 $24.2 $27.6 $35.2 $33.1 Amortization of expense on long-term debt 0.3 0.2 0.2 0.3 0.2 Capitalized interest - - 0.2 0.1 - Portion of rents representative of interest factor 15.0 11.6 12.2 13.4 12.7 ------------- ------------- ------------- ------------- -------------- Fixed charges $45.8 $36.0 $40.2 $49.0 $46.0 ============= ============= ============= ============= ============== Ratio of earnings to fixed charges 5.71 0.49 5.34 3.31 5.40 ============= ============= ============= ============= ==============