EX-12 6 l24244aexv12.txt EX-12 EATON CORPORATION 2006 ANNUAL REPORT ON FORM 10-K ITEM 15(B) EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31 --------------------------------------- 2006 2005 2004 2003 2002 ------ ------ ---- ----- ------ (Millions of dollars) Income from continuing operations before income taxes $ 989 $ 988 $768 $ 492 $ 384 Adjustments ----------- Minority interests in consolidated subsidiaries 10 5 7 12 14 Loss (income) from equity investees 1 1 (3) (1) Interest expensed 139 109 88 93 110 Amortization of debt issue costs 1 1 1 2 2 Estimated portion of rent expense representing interest 41 38 37 38 34 Amortization of capitalized interest 12 12 17 13 13 Distributed income of equity investees 1 4 3 ------ ------ ---- ----- ----- Adjusted income from continuing operations before income taxes $1,194 $1,158 $921 $ 647 $ 556 ====== ====== ==== ===== ===== Fixed charges Interest expensed $ 139 $ 109 $ 88 $ 93 $ 110 Interest capitalized 14 13 7 7 8 Amortization of debt issue costs 1 1 1 2 2 Estimated portion of rent expense representing interest 41 38 38 38 34 ------ ------ ---- ----- ----- Total fixed charges $ 195 $ 161 $134 $ 140 $ 154 ====== ====== ==== ===== ===== Ratio of earnings to fixed charges 6.12 7.19 6.87 4.62 3.61