EX-12 3 y29035exv12.htm EX-12: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EX-12
 

Exhibit 12
AIR PRODUCTS AND CHEMICALS, INC., AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Unaudited)
                                                 
                                            Three Months  
                                            Ended  
    Year Ended 30 September     31 Dec  
    2002     2003     2004     2005     2006     2006  
 
                                                
Earnings:
                                                
Income from continuing operations
   $ 513.0     $ 432.8     $ 608.4     $ 707.5     $ 748.3     $ 230.3  
 
                                                
Add (deduct):
                                                
Provision for income taxes
     247.5       154.0       232.5       269.4       279.0       87.0  
Fixed charges, excluding capitalized interest
     146.1       148.7       146.7       141.6       149.5       46.8  
Capitalized interest amortized during the period
     7.2       6.5       7.3       6.4       6.6       1.7  
Undistributed earnings of less-than-fifty-percent-owned affiliates
     (42.8 )     (2.6 )     (31.1 )     (30.1 )     (30.5 )     (11.7 )
 
                                    
Earnings, as adjusted
   $ 871.0     $ 739.4     $ 963.8     $ 1,094.8     $ 1,152.9     $ 354.1  
 
                                    
 
                                                
Fixed Charges:
                                                
Interest on indebtedness, including capital lease obligations
   $ 126.4     $ 126.9     $ 124.4     $ 113.8     $ 119.1     $ 39.7  
Capitalized interest
     11.7       6.2       7.9       14.9       18.8       4.1  
Amortization of debt discount premium and expense
     —       2.1       1.4       4.1       4.8       1.1  
Portion of rents under operating leases representative of the interest factor
     19.7       19.8       20.9       23.7       24.0       6.0  
 
                                    
Fixed charges
   $ 157.8     $ 155.0     $ 154.6     $ 156.5     $ 166.7     $ 50.9  
 
                                    
Ratio of Earnings to Fixed Charges (1):
     5.5       4.8       6.2       7.0       6.9       7.0  
 
                                    
 
(1)   The ratio of earnings to fixed charges is determined by dividing earnings, which includes income from continuing operations before taxes, undistributed earnings of less than fifty percent owned affiliates, and fixed charges, by fixed charges. Fixed charges consist of interest on all indebtedness plus that portion of operating lease rentals representative of the interest factor (deemed to be 21% of operating lease rentals).