EXHIBIT 12
THE MEAD CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(Mead and consolidated subsidiaries, with Mead's share of investees)
Three
Quarters
Ended Year Ended December 31,
Sept. 29, ------------------------------------------------
1996 1995 1994 1993 1992 1991
------------- --------- -------- ------- ------ ------
(All dollar amounts in millions)
Earnings:
The Mead Corporation earnings
from continuing operations before
income taxes $252.9 $487.7 $52.4 $135.0 $15.8 $64.3
Mead's share of earnings (loss) of investees
before income taxes 1.6 63.4 95.7 30.3 9.4 (31.1)
Interest and debt expense 51.5 86.0 113.4 107.5 116.0 137.4
Amortization of capitalized interest 4.1 5.2 5.9 7.9 6.4 6.5
12.2 16.9 18.0 16.5 17.3 16.4
Portion of rental expense deemed to be interest ------ ------ ------ ------ ------ ------
$322.3 $659.2 $285.4 $297.2 $164.9 $193.5
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Combined fixed charges:
Interest and debt expense:
The Mead Corporation $40.3 $69.4 $101.1 $94.6 $99.5 $112.9
Mead's share of investees 11.2 16.6 12.3 12.9 16.5 24.5
---- ----- ------ ----- ----- -----
51.5 86.0 113.4 107.5 116.0 137.4
---- ---- ------ ------ ----- ------
Capitalized interest: 5.3 2.0 5.7 2.6 2.3 4.5
The Mead Corporation ---- ---- ------ ------ ----- ------
Amortization of capitalized interest:
The Mead Corporation 3.6 4.5 4.6 6.5 4.9 4.9
Mead's share of investees 0.5 0.7 1.3 1.4 1.5 1.6
---- ---- ------ ------ ----- -----
4.1 5.2 5.9 7.9 6.4 6.5
---- ---- ------ ------ ----- -----
Portion of rental expense deemed to be interest:
The Mead Corporation 11.9 16.4 17.6 16.2 17.3 16.3
Mead's share of investees 0.3 0.5 0.4 0.3 0.0 0.1
---- ----- ----- ------ ----- -----
12.2 16.9 18.0 16.5 17.3 16.4
---- ------ ------ ------ ----- -------
69.0 $104.9 $137.1 $126.6 $135.6 $158.3
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Ratio of earnings to fixed charges 4.7 6.3 2.1 2.3 1.2 1.2
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