EX-12 4 c71057exv12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PART II - EXHIBIT 12 FORTUNE BRANDS, INC. AND SUBSIDIARIES STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollar amounts in millions)
Six Months Ended Years Ended December 31, June 30, --------------------------------------------------------------- ------------- 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- Earnings Available: Income (loss) from continuing operations before income taxes, minority interest and extraordinary items......... $145.2 $516.4 $(725.2) $44.0 $491.9 $288.6 Less: Excess of earnings over dividends of less than fifty percent owned companies...................... 0.2 0.2 0.2 0.2 -- -- Capitalized interest................. -- -- 4.1 0.6 0.1 0.1 ------ ------ ------- ----- ------ ------ $145.0 $516.2 $(720.9) $43.2 $491.8 $288.5 ====== ====== ======= ===== ====== ====== Fixed Charges: Interest expense (including capitalized interest) and amortization of debt discount and expenses............................. $122.4 $105.4 $113.9 $135.6 $100.5 $ 38.9 Portion of rentals representative of an interest factor.................... 14.7 17.0 19.0 18.0 17.0 6.5 ------ ------ ------- ------ ------ ------ Total Fixed Charges................ 137.1 122.4 132.9 153.6 117.5 45.4 ------ ------ ------- ------ ------ ------ Total Earnings Available........... $282.1 $638.6 $(588.0) $196.8 $609.3 $333.9 ====== ====== ======= ====== ====== ====== Ratio of Earnings to Fixed Charges............ 2.06 5.22 (A) 1.28 5.19 7.35 ====== ====== ======= ====== ====== ======
(A) As a result of the loss reported for the year ended December 31, 1999, the Company was unable to cover the fixed charges as indicated. Included in earnings in 1999 was a second quarter goodwill write-down of $1,126 million. If this write-down was excluded from earnings, the ratio of earnings to fixed charges for the year ended December 31, 1999 would have been 4.05.