EXHIBIT 12
WHITMAN CORPORATION
STATEMENT OF CALCULATION
OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratios)
<TABLE>
<CAPTION>
First Half Fiscal Years
---------------------- --------------------------------------------------------------
2000 1999 1999 1998 1997 1996 1995
--------- --------- -------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
Income from continuing
operations before taxes $ 78.1 $ (5.3) $ 71.6 $ 152.2 $ 69.9 $ 127.7 $ 118.2
Fixed charges 45.7 30.3 73.5 51.5 75.6 74.4 76.7
--------- --------- -------- -------- -------- --------- ---------
Earnings as adjusted $ 123.8 $ 25.0 $ 145.1 $ 203.7 $ 145.5 $ 202.1 $ 194.9
========= ========= ======== ======== ======== ========= =========
Fixed charges:
Interest expense $ 42.4 $ 27.6 $ 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 3.3 2.7 6.4 5.1 4.9 4.7 5.0
--------- --------- -------- -------- -------- --------- ---------
Fixed charges $ 45.7 $ 30.3 $ 73.5 $ 51.5 $ 75.6 $ 74.4 $ 76.7
========= ========= ======== ======== ======== ========= =========
Ratio of earnings to
fixed charges* 2.7x 0.8x 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 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, as
well as a $1.9 million increase to this gain in the fourth quarter of 1999.
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 first
half 1999 charges and credits, the ratio of earnings to fixed charges for
the first half of 1999 would have been 3.1x.
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.
