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PART II - EXHIBIT 12
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FORTUNE BRANDS, INC. AND SUBSIDIARIES
STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in millions)
<TABLE>
<CAPTION>
Nine Months
Ended
Years Ended December 31, September 30,
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1995 1996 1997 1998 1999 2000
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<S> <C> <C> <C> <C> <C> <C>
Earnings Available:
Income (loss) from continuing operations
before income taxes, minority
interest and extraordinary items......... $358.9 $340.1 $145.2 $516.4 $(725.2) $399.6
Less: Excess of earnings over
dividends of less than
fifty percent owned
companies...................... 0.2 0.2 0.2 0.2 0.2 (0.2)
Capitalized interest................. - 0.3 - - 4.1 (0.6)
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358.7 339.6 145.0 516.2 (720.9) 400.4
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Fixed Charges:
Interest expense (including
capitalized interest) and
amortization of debt discount
and expenses............................. 147.1 172.6 122.4 105.4 113.9 101.7
Portion of rentals representative
of an interest factor.................... 13.5 15.1 14.7 17.0 19.0 12.8
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Total Fixed Charges................ 160.6 187.7 137.1 122.4 132.9 114.5
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Total Earnings Available........... $519.3 $527.3 $282.1 $638.6 $(588.0) $514.9
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Ratio of Earnings to Fixed Charges............ 3.23 2.81 2.06 5.22 (A) 4.50
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(A) As a result of the loss reported for the year ended December 31, 1999,
earnings were insufficient to cover fixed charges by $588.0 million.
Included in earnings was a second quarter 1999 goodwill write-down of
$1,126 million as disclosed in Note 2 of the Company's Condensed
Consolidated Financial Statements. If the write-down were excluded from
earnings, the ratio of earnings to fixed charges for the year ended
December 31, 1999 would have been 4.05.
