EX-12 8 exhibit12.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit 12 AIR PRODUCTS AND CHEMICALS, INC., AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Unaudited)
Year Ended 30 September ------------------------------------------------------------------- 1998 1999 2000 2001(a) 2002 -------- -------- --------- ---------- -------- (Millions of dollars) Earnings: Income from continuing operations $ 546.8 $450.5 $124.2 $465.6 $525.4 Add (deduct): Provision for income taxes 280.9 209.5 (7.5) 196.2 247.5 Fixed charges, excluding capitalized interest 202.8 194.4 232.6 226.5 150.3 Capitalized interest amortized during the period 7.4 6.1 6.6 7.1 7.2 Undistributed earnings of less-than- fifty-percent-owned affiliates (25.3) (44.5) (32.1) (34.3) (42.8) --------- ------ ------ ------ ------ Earnings, as adjusted $1,012.6 $816.0 $323.8 $861.1 $887.6 ========= ======= ======= ======= ======= Fixed Charges: Interest on indebtedness, including capital lease obligations $186.7 $175.4 $210.3 $201.6 $126.4 Capitalized interest 18.4 24.7 19.7 8.8 11.7 Amortization of debt discount premium and expense 1.9 1.3 3.1 5.6 2.2 Portion of rents under operating leases representative of the interest factor 14.2 17.7 19.3 19.3 21.7 ------- ------- ------- ------- ------- Fixed charges $221.2 $219.1 $252.4 $235.3 $162.0 ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges: 4.6 3.7 1.3 3.7 5.5 ======= ======= ======= ======= =======
(a) The company adopted Statement of Financial Accounting Standards No. 145 as of 1 July 2002. The Statement requires gains and losses from debt extinguishments that are used as part of the company's risk management strategy to be classified as income from operations rather than as extraordinary items, net of tax. The impact on the company was to reclassify the extraordinary item recorded in the fourth quarter of 2001 to income from continuing operations.