EX-12 5 l06255aexv12.txt EX-12 RATIO OF EARNINGS Eaton Corporation 2003 Annual Report on Form 10-K Item 15(c) Exhibit 12 Ratio of Earnings to Fixed Charges
Year ended December 31 --------------------------------------------- 2003 2002 2001 2000 1999 ---- ---- ---- ---- ---- Income from continuing operations before income taxes $ 508 $ 399 $278 $ 552 $ 943 Adjustments ----------- Minority interests in consolidated subsidiaries 12 14 8 8 2 Income of equity investees (3) (1) 0 (1) (1) Interest expensed 93 110 149 182 159 Amortization of debt issue costs 2 2 1 1 0 Estimated portion of rent expense representing interest 38 34 38 39 36 Amortization of capitalized interest 13 13 13 10 8 Distributed income of equity investees 0 0 0 1 0 ----- ----- ---- ----- ------ Adjusted income from continuing operations before income taxes $ 663 $ 571 $487 $ 792 $1,147 ===== ===== ==== ===== ====== Fixed charges ------------- Interest expensed $ 93 $ 110 $149 $ 182 $ 159 Interest capitalized 7 8 12 22 21 Amortization of debt issue costs 2 2 1 1 0 Estimated portion of rent representing interest 38 34 38 39 36 ----- ----- ---- ----- ------ Total fixed charges $ 140 $ 154 $ 200 $ 244 $ 216 ===== ===== ==== ===== ====== Ratio of earnings to fixed charges 4.73 3.71 2.44 3.25 5.31
Income from continuing operations before income taxes for years before 2002 includes amortization expense related to goodwill and other intangible assets. Upon adoption of Statement of Financial Accounting Standard No. 142 on January 1, 2002 the Company ceased amortization of goodwill and indefinite life intangible assets.