EX-12 2 d361112dex12.htm EARNING RATIOS Earning Ratios

Exhibit 12

AIR PRODUCTS AND CHEMICALS, INC., and Subsidiaries

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Unaudited)

 

      

Nine

Months
Ended

30 June

2012

   

 

Year Ended 30 September

(Millions of dollars)         2011    2010    2009    2008    2007

Earnings:

                                

Income from continuing operations (1)

        $ 884.5        $ 1,171.6        $ 967.0        $ 565.3        $ 1,022.0        $ 990.2  

Add (deduct):

                                

Provision for income taxes

          283.7          390.8          321.0          159.9          343.4          268.6  

Fixed charges, excluding capitalized interest

          101.9          139.4          146.3          147.8          186.7          189.1  

Capitalized interest amortized during the period

          7.0          9.0          8.7          7.7          6.6          6.4  

Undistributed earnings of less-than-fifty-percent-owned affiliates

          (42.9 )        (38.9 )        (29.2 )        (44.2 )        (72.7 )        (61.2 )

Earnings, as adjusted

        $ 1,234.2        $ 1,671.9        $ 1,413.8        $ 836.5        $ 1,486.0        $ 1,393.1  
Fixed Charges:                                

Interest on indebtedness, including capital lease obligations

        $ 82.0        $ 113.6        $ 121.8        $ 125.1        $ 164.4        $ 163.7  

Capitalized interest

          23.1          23.4          14.5          22.2          27.3          14.6  

Amortization of debt discount premium and expense

          5.1          5.6          5.6          4.7          4.0          4.1  

Portion of rents under operating leases representative of the interest factor

          14.8          20.2          18.9          18.0          18.3          21.3  

Fixed charges

        $ 125.0        $ 162.8        $ 160.8        $ 170.0        $ 214.0        $ 203.7  

Ratio of Earnings to Fixed Charges (2):

          9.9          10.3          8.8          4.9          6.9          6.8  

 

(1)

During the twelve months ended 30 September 2009, income from continuing operations included a charge of $298.2 ($200.3 after-tax) for the global cost reduction plan.

(2)

The ratio of earnings to fixed charges is determined by dividing earnings, as adjusted, 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).