EX-12 4 l35588aexv12.txt EX-12 EATON CORPORATION 2008 ANNUAL REPORT ON FORM 10-K ITEM 15(B) EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31 ---------------------------------------- (Millions of dollars) 2008 2007 2006 2005 2004 ------ ------ ------ ------ ---- Income from continuing operations before income taxes $1,128 $1,041 $ 969 $ 964 $749 Adjustments Minority interests in consolidated subsidiaries 12 14 10 5 7 (Income) losses of equity investees (11) (6) 1 1 Interest expensed 192 193 139 109 88 Amortization of debt issue costs 2 1 1 1 1 Estimated portion of rent expense representing interest 58 44 41 38 37 Amortization of capitalized interest 13 12 12 12 17 Distributed income of equity investees 1 1 1 4 3 ------ ------ ------ ------ ---- Adjusted income from continuing operations before income taxes $1,395 $1,300 $1,174 $1,134 $902 ====== ====== ====== ====== ==== Fixed charges Interest expensed $ 192 $ 193 $ 139 $ 109 $ 88 Interest capitalized 13 14 14 13 7 Amortization of debt issue costs 2 1 1 1 1 Estimated portion of rent expense representing interest 58 44 41 38 37 ------ ------ ------ ------ ---- Total fixed charges $ 265 $ 252 $ 195 $ 161 $133 ====== ====== ====== ====== ==== Ratio of earnings to fixed charges 5.26 5.16 6.02 7.04 6.78