EX-12 2 etn03312018ex12.htm EXHIBIT 12
Eaton Corporation plc
First Quarter 2018 Report on Form 10-Q
Item 6
Exhibit 12
Ratio of Earnings to Fixed Charges

|  | Three months ended March 31 |  | Year ended December 31
(Millions of dollars) |  | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Income from continuing operations before income taxes and noncontrolling interests in consolidated subsidiaries |  | $ | 565 |  |  | $ | 3,368 |  |  | $ | 2,118 |  |  | $ | 2,133 |  |  | $ | 1,762 |  |  | $ | 1,870 |
Adjustments |  |  |  |  |  |  |  |  |  |  |  |
(Income) loss of equity investees |  | 7 |  |  | (1 | ) |  | (14 | ) |  | (11 | ) |  | (6 | ) |  | 2 |
Distributed income of equity investees |  | — |  |  | 7 |  |  | 9 |  |  | 9 |  |  | 4 |  |  | 77 |
Interest expensed |  | 80 |  |  | 273 |  |  | 240 |  |  | 237 |  |  | 250 |  |  | 290 |
Amortization of debt issue costs |  | 2 |  |  | 7 |  |  | 7 |  |  | 8 |  |  | 9 |  |  | 10 |
Estimated portion of rent expense representing interest |  | 20 |  |  | 74 |  |  | 73 |  |  | 75 |  |  | 81 |  |  | 80 |
Amortization of capitalized interest |  | 3 |  |  | 11 |  |  | 12 |  |  | 10 |  |  | 14 |  |  | 13 |
Adjusted income from continuing operations before income taxes |  | $ | 677 |  |  | $ | 3,739 |  |  | $ | 2,445 |  |  | $ | 2,461 |  |  | $ | 2,114 |  |  | $ | 2,342 |
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |
Interest expensed |  | $ | 80 |  |  | $ | 273 |  |  | $ | 240 |  |  | $ | 237 |  |  | $ | 250 |  |  | $ | 290 |
Interest capitalized |  | 4 |  |  | 11 |  |  | 12 |  |  | 13 |  |  | 13 |  |  | 11 |
Amortization of debt issue costs |  | 2 |  |  | 7 |  |  | 7 |  |  | 8 |  |  | 9 |  |  | 10 |
Estimated portion of rent expense representing interest |  | 20 |  |  | 74 |  |  | 73 |  |  | 75 |  |  | 81 |  |  | 80 |
Total fixed charges |  | $ | 106 |  |  | $ | 365 |  |  | $ | 332 |  |  | $ | 333 |  |  | $ | 353 |  |  | $ | 391 |
Ratio of earnings to fixed charges |  | 6.39 |  |  | 10.24 |  |  | 7.36 |  |  | 7.39 |  |  | 5.99 |  |  | 5.99 |