EX-12 2 dex12.htm STATEMENT RE COMPUTATION OF RATIO OF EARNINGS Statement re Computation of Ratio of Earnings

Exhibit 12

FORTUNE BRANDS, INC. AND SUBSIDIARIES

STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED DIVIDENDS

(Dollar amounts in millions)

 

     Years Ended December 31,     Six Months
Ended
June 30,

2009
 
     2004    2005     2006    2007    2008    

Earnings Available:

               

Income (loss) from continuing operations before income taxes, noncontrolling interests and extraordinary items

   $ 992.5    $ 919.3      $ 1,179.3    $ 1,120.2    $ 188.4      $ 133.4   

Less: Income (loss) of equity investees included above

     0.5      (0.2     —        —        (24.4     (11.6

Capitalized interest

     —        —          —        0.7      —          —     

Preferred dividend requirements

     0.6      0.6        0.6      0.8      0.7        0.3   
                                             
   $ 991.4    $ 918.9      $ 1,178.7    $ 1,118.7    $ 212.1      $ 144.7   

Fixed Charges and Preferred Dividends:

               

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

   $ 90.2    $ 170.8      $ 332.4    $ 318.5    $ 237.2      $ 105.9   

Portion of rentals representative of an interest factor

     17.9      17.7        16.7      17.6      17.0        8.8   

Preferred dividend requirements

     0.6      0.6        0.6      0.8      0.7        0.3   
                                             

Total Fixed Charges

     108.7      189.1        349.7      336.9      254.9        115.0   
                                             

Total Earnings Available

   $ 1,100.1    $ 1,108.0      $ 1,528.4    $ 1,455.6    $ 467.0      $ 259.7   
                                             

Ratio of Combined Earnings to Fixed Charges and Preferred Dividends

     10.12      5.86        4.37      4.32      1.83        2.26