Exhibit 12
COLGATE-PALMOLIVE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Dollars in Millions (Unaudited)
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Six Months Ended
June 30, 1998
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Income before income taxes $603.0
Add:
Interest on indebtedness and amortization of debt
expense and discount or premium 101.3
Portion of rents representative of interest
factor 15.8
Interest on ESOP debt, net of dividends 1.7
Less:
Income of less than fifty-percent-owned
subsidiaries (2.6)
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Income as adjusted $719.2
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Fixed Charges:
Interest on indebtedness and amortization of debt
expense and discount or premium
$101.3
Portion of rents representative of interest
factor 15.8
Interest on ESOP debt, net of dividends 1.7
Capitalized interest 4.1
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Total fixed charges $122.9
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Ratio of earnings to fixed charges 5.9
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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 incurred on
the ESOP's notes during the first half of 1998 was $16.5. This interest is
funded through preferred and common stock dividends. 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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