EX-12.01 2 dex1201.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.01

RATIO OF EARNINGS TO FIXED CHARGES

Praxair, Inc. and Subsidiaries

 

 

 

     Quarter Ended
March 31,

2008
    Year Ended December 31,  

(Dollar amounts in millions, except ratios)

     2007     2006     2005     2004     2003  

Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees

   $ 435     $ 1,613     $ 1,364     $ 1,130     $ 948     $ 771  

Capitalized interest

     (11 )     (35 )     (21 )     (11 )     (7 )     (9 )

Depreciation of capitalized interest

     4       15       14       14       13       12  

Dividends from less than 50%-owned companies carried at equity

     1       8       9       17       11       19  
                                                

Adjusted pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees

   $ 429     $ 1,601     $ 1,366     $ 1,150     $ 965     $ 793  
                                                

Fixed charges

            

Interest on long-term and short-term debt

   $ 47     $ 173     $ 155     $ 163     $ 155     $ 151  

Capitalized interest

     11       35       21       11       7       9  

Rental expenses representative of an interest factor

     9       34       32       32       29       31  

Preferred stock dividend requirements of consolidated subsidiaries

     —         —         —         —         1       —    
                                                

Total fixed charges

     67       242       208       206       192       191  

Less: preferred stock dividend requirements of consolidated subsidiaries

     —         —         —         —         (1 )     —    
                                                

Total fixed charges less preferred stock dividends

   $ 67     $ 242     $ 208     $ 206     $ 191     $ 191  
                                                

Adjusted pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus total fixed charges less preferred stock dividends

   $ 496     $ 1,843     $ 1,574     $ 1,356     $ 1,157     $ 984  

Less: preferred stock dividend requirements of consolidated subsidiaries

     —         —         —         —         (1 )     —    
                                                

Total earnings less preferred stock dividends

   $ 496     $ 1,843     $ 1,574     $ 1,356     $ 1,156     $ 984  
                                                

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

     7.4       7.6       7.6       6.6       6.0       5.2  

RATIO OF EARNINGS TO FIXED CHARGES

     7.4       7.6       7.6       6.6       6.1       5.2