EXHIBIT 12
WHITMAN CORPORATION
STATEMENT OF CALCULATION
OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios
<TABLE>
<CAPTION>
Nine Months Fiscal Years
2000 1999 1999 1998 1997 1996 1995
--------- --------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings:
Income from continuing
operations before taxes $ 133.3 $ 41.9 $ 71.6 $ 152.2 $ 69.9 $ 127.7 $ 118.2
Fixed charges 69.4 51.6 73.5 51.5 75.6 74.4 76.7
--------- --------- -------- -------- -------- --------- ---------
Earnings as adjusted $ 202.7 $ 93.5 $ 145.1 $ 203.7 $ 145.5 $ 202.1 $ 194.9
========= ========= ======== ======== ======== ========= =========
Fixed charges:
Interest expense $ 64.4 $ 47.6 $ 67.1 $ 46.4 $ 69.0 $ 68.2 $ 70.3
Preferred stock dividend requirements
of majority owned subsidiary -- -- -- -- 1.7 1.5 1.4
Portion of rents representative
of interest factor 5.0 4.0 6.4 5.1 4.9 4.7 5.0
--------- --------- -------- -------- -------- --------- ---------
Fixed charges $ 69.4 $ 51.6 $ 73.5 $ 51.5 $ 75.6 $ 74.4 $ 76.7
========= ========= ======== ======== ======== ========= =========
Ratio of earnings to
fixed charges* 2.9x 1.8x 2.0x 4.0x 1.9x 2.7x 2.5x
========= ========= ======== ======== ======== ========= =========
</TABLE>
* Whitman Corporation recorded special charges of $27.9 million in the
second and third quarters of 1999, as well as a $56.3 million pretax
charge in the second quarter of 1999 to reduce the book value of impaired
non-operating real estate. In addition, Whitman Corporation recorded an
$11.4 million pretax gain in the first quarter of 1999 on the sale of
operations in Marion, Virginia; Princeton, West Virginia and the St.
Petersburg area of Russia. The gain was subsequently increased by $1.9
million in the fourth quarter of 1999 due to adjustments arising from the
final working capital settlements. Excluding these full year charges and
credits, the ratio of earnings to fixed charges for fiscal year 1999 would
have been 2.9x. Excluding the charges and credits in the first nine months
of 1999, the ratio of earnings to fixed charges for the first nine months
of 1999 would have been 3.2x.
Intercompany interest income from Hussmann and Midas was $1.6 million,
$23.1 million, $23.7 million and $21.8 million in 1998, 1997, 1996 and
1995, respectively. If the fixed charges had been reduced by this
intercompany interest income, the ratio of earnings to fixed charges for
1998, 1997, 1996 and 1995 would have been 4.1x, 2.3x, 3.5x and 3.2x,
respectively.
Whitman Corporation recorded special charges of $49.3 million during 1997.
Excluding these special charges, the 1997 ratio of earnings to fixed
charges would have been 2.6x. Additionally, if the fixed charges for 1997
were adjusted for the intercompany interest income noted above, the ratio
of earnings to fixed charges would have been 3.3x.
