Exhibit 12
COLGATE-PALMOLIVE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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DOLLARS IN MILLIONS (UNAUDITED)
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NINE MONTHS ENDED
SEPTEMBER 30, 1995
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Income before income taxes $ 182.7
ADD:
Interest on indebtedness and amortization of debt
expense and discount or premium 172.2
Portion of rents representative of interest
factor 20.9
Interest on ESOP debt, net of dividends 1.5
LESS:
Income of less than fifty-percent-owned
subsidiaries (2.4)
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Income as adjusted $ 374.9
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FIXED CHARGES:
Interest on indebtedness and amortization of
debt expense and discount or premium $ 172.2
Portion of rents representative of interest
factor 20.9
Interest on ESOP debt, net of dividends 1.5
Capitalized interest 9.8
Total fixed charges $ 204.4
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Ratio of earnings to fixed charges 1.8
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In June 1989, the Company's leveraged employee stock ownership plan (ESOP)
issued $410.0 of long-term notes due through 2009 bearing an average
interest rate of 8.6%. These notes are guaranteed by the Company.
Interest expense on the ESOP's notes was $25.4. This interest is funded
through preferred and common stock dividends as well as Company
contributions. 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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