EX-12 5 dex12.txt COMPUTATION OF RATIO OF EARNINGS Exhibit 12 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars Except Ratios)
Year Ended December 31, Three Months Ended ----------------------------------------------------- -------------------------------- 2000 1999 1998 1997 1996 April 1, 2001 April 2, 2000 -------- -------- --------- -------- -------- -------------- ------------- EARNINGS: -------- Earnings (loss) from continuing operations before income taxes $ 404.6 $ 441.3 $ (588.3) $ 349.5 $ 202.7 $ 47.3 $ 87.4 Share of equity income of 50% -or- less owned affiliates, net of distributed income - 0.1 (1.2) (5.4) (5.2) (5.3) (5.2) Interest expense 148.3 126.3 145.3 132.7 140.1 34.6 35.1 Dividends on subsidiary preferred shares 0.3 - - 1.4 2.0 2.7 - Portion of rent expense representative of an interest factor 27.6 27.7 26.9 25.2 23.5 6.9 6.9 -------- -------- --------- -------- -------- -------------- ------------- Adjusted earnings (loss) from continuing operations before taxes and fixed charges $ 580.8 $ 595.4 $ (417.3) $ 503.4 $ 363.1 $ 86.2 $ 124.2 ======== ======== ========= ======== ======== ============== ============= FIXED CHARGES: ------------- Interest expense $ 148.3 $ 126.3 $ 145.3 $ 132.7 $ 140.1 $ 34.6 $ 35.1 Dividends on subsidiary preferred shares 0.3 - - 1.4 2.0 2.7 - Portion of rent expense representative of an interest factor 27.6 27.7 26.9 25.2 23.5 6.9 6.9 -------- -------- --------- -------- -------- -------------- ------------- Total fixed charges $ 176.2 $ 154.0 $ 172.2 $ 159.3 $ 165.6 $ 44.2 $ 42.0 ======== ======== ========= ======== ======== ============== ============= RATIO OF EARNINGS TO FIXED CHARGES 3.3 3.9 (a) 3.2 2.2 2.0 3.0 ======== ======== ========= ======== ======== ============== =============
(a) Adjusted earnings (loss) before income taxes for the year ended December 31, 1998, were insufficient to cover fixed charges by the amount of $589.5 million. Included in earnings (loss) before income taxes for the year ended December 31, 1998, were a restructuring charge of $164.7 million, gain on sale of businesses of $114.5 million, and a write-off of goodwill in the amount of $900.0 million as a result of a change in the Corporation's method of evaluating impairment from an undiscounted cash flow basis to a discounted cash flow basis.