Honeywell 2006 Annual Report Download - page 201

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EXHIBIT 12
HONEYWELL INTERNATIONAL INC.
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
2006 2005 2004 2003 2002
(In millions)
Determination of Earnings:
Income (loss) from continuing operations before taxes $ 2,798 $ 2,296 $ 1,623 $ 1,583 $ (1,000)
Add (Deduct):
Amortization of capitalized interest 22 22 24 24 24
Fixed charges 488 465 438 440 435
Equity income, net of distributions (7) (30) (75) (38) (42)
Total earnings, as defined $ 3,301 $ 2,753 $ 2,010 $ 2,009 $ (583)
Fixed Charges:
Rents(a) $ 114 $ 109 $ 107 $ 105 $ 91
Interest and other financial charges 374 356 331 335 344
488 465 438 440 435
Capitalized interest 22 17 18 15 21
Total fixed charges $ 510 $ 482 $ 456 $ 455 $ 456
Ratio of earnings to fixed charges 6.47 5.71 4.41 4.42 (1.28)(b)
(a) Denotes the equivalent of an appropriate portion of rentals representative of the interest factor on all rentals other than for
capitalized leases.
(b) The ratio of earnings to fixed charges was less than 1:1 for the year ended December 31, 2002. In order to have achieved a ratio of
earnings to fixed charges of 1:1, we would have had to have generated an additional $1,039 million of earnings in the year ended
December 31, 2002.