EX-12 3 dex12.htm STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Statement re computation of ratio of earnings to fixed charges.

EXHIBIT 12

 

FORTUNE BRANDS, INC. AND SUBSIDIARIES

STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollar amounts in millions)

 

     Years Ended December 31,

  

Three Months
Ended

March 31,

2004


     1999

    2000

   2001

   2002

   2003

  

Earnings Available:

                                          

Income (loss) from continuing operations before income taxes, minority interest and extraordinary items

   $ (725.2 )   $ 44.0    $ 491.9    $ 756.2    $ 884.5    $ 227.0

Less: Excess of earnings over dividends of less than fifty percent owned companies

     0.2       0.2      —        —        0.7      —  

Capitalized interest

     4.1       0.6      0.1      0.3      0.1      —  
    


 

  

  

  

  

     $ (720.9 )   $ 43.2    $ 491.8    $ 755.9    $ 883.7    $ 227.0
    


 

  

  

  

  

Fixed Charges:

                                          

Interest expense (including capitalized interest) and amortization of debt discount and expenses

   $ 113.9     $ 135.6    $ 100.5    $ 76.9    $ 73.8    $ 22.3

Portion of rentals representative of an interest factor

     19.0       18.0      17.0      17.5      18.6      4.5
    


 

  

  

  

  

Total Fixed Charges

     132.9       153.6      117.5      94.4      92.4      26.8
    


 

  

  

  

  

Total Earnings Available

   $ (588.0 )   $ 196.8    $ 609.3    $ 850.3    $ 976.1    $ 253.8
    


 

  

  

  

  

Ratio of Earnings to Fixed Charges

     (A )     1.28      5.19      9.01      10.56      9.47
    


 

  

  

  

  


(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.