1 Exhibit 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions, except ratio of earnings to fixed charges) Three Months Ended Years Ended August 31, ------------------ -------------------------------------------- November 30, 1998 1998 1997 1996 1995 1994 EARNINGS AS DEFINED: Earnings (loss) before income taxes after eliminating undistributed earnings of 50% or less owned affiliates .................................. (114.0) $403.9 $369.9 $350.0 $288.7 $346.8 Fixed charges as below ......................... 6.2 18.0 13.1 15.9 17.1 14.3 ------ ------ ------ ------ ------ ------ Earnings (loss) as defined ..................... (107.8) $421.9 $383.0 $365.9 $305.8 $361.1 ====== ====== ====== ====== ====== ====== FIXED CHARGES AS DEFINED: Interest expense, including amortization of debt issue costs .......................... 5.0 $ 13.0 $ 8.0 $ 11.0 $ 13.0 $ 11.0 Interest capitalized ........................... -- -- -- -- -- -- Portion of rental expense representative of the interest factor (estimated at 33% of rent expense) ......................... 1.2 5.0 5.1 4.9 4.1 3.3 Preferred stock dividends of majority- owned subsidiary company ..................... -- -- -- -- -- -- Share of interest expense related to guaranteed debt of 50% owned affiliated company ...................................... -- -- -- -- -- -- ------ ------ ------ ------ ------ Fixed charges as defined ....................... $ 6.2 $ 18.0 $ 13.1 $ 15.9 $ 17.1 $ 14.3 ====== ====== ====== ====== ====== ====== RATIO OF EARNINGS TO FIXED CHARGES ...................................... -- 23.4 29.2 23.0 17.9 25.3 (1) For the three months ended November 30, 1998 earnings were insufficient to cover fixed charges. The deficiency for such period was $114 million.