EX-12 3 c72914exv12.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)
Nine Months Ended Years Ended December 31, September 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 $542.4 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 0.2 ------ ------ ------- ------ ------ ------ $339.6 $516.2 $(720.9) $43.2 $491.8 $542.2 ====== ====== ======= ====== ====== ====== Fixed Charges: Interest expense (including capitalized interest) and amortization of debt discount and expenses............................. $122.4 $105.4 $113.9 $135.6 $100.5 $58.4 Portion of rentals representative of an interest factor.................... 14.7 17.0 19.0 18.0 17.0 10.8 ------ ------ ------- ------ ------ ------ Total Fixed Charges................ 137.1 122.4 132.9 153.6 117.5 69.2 ------ ------ ------- ------ ------ ------ Total Earnings Available........... $282.1 $638.6 $(588.0) $196.8 $609.3 $611.4 ====== ====== ======= ====== ====== ====== Ratio of Earnings to Fixed Charges............ 2.06 5.22 (A) 1.28 5.19 8.84 ====== ====== ======= ====== ====== ======
(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 non-cash 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.