COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In thousands of dollars)
Year Ended October 31 ----------------------------- 1995 1994 ---------- ---------- Earnings:
Income (loss) of consolidated group before income taxes and changes in accounting....... $1,092,751 $ 920,920 Dividends received from less than fifty percent owned affiliates................ 2,023 2,329 Fixed charges net of capitalized interest............ 399,056 310,047 ---------- ---------- Total earnings.................. $1,493,830 $1,233,296 ---------- ---------- ---------- ----------
Fixed charges:
Interest expense of consolidated group (includes capitalized interest)........... $ 392,408 $ 303,080 Portion of rental charges deemed to be interest........... 6,661 7,008 ---------- ---------- Total fixed charges............. 399,069 $ 310,088 ---------- ---------- ---------- ---------- Ratio of earnings to fixed charges**................... 3.74 3.98 ---------- ----------
Year Ended October 31 1993 1992 1991 -------- -------- -------- Earnings:
Income (loss) of consolidated group before income taxes and changes in accounting....... $272,345 $ 43,488 $(26,176) Dividends received from less than fifty percent owned affiliates................ 1,706 2,325 6,229 Fixed charges net of capitalized interest............ 375,238 420,133 454,092 -------- -------- -------- Total earnings.................. $649,289 $465,946 $434,145 -------- -------- -------- -------- -------- -------- Fixed charges:
Interest expense of consolidated group (includes capitalized interest)........... $369,325 $415,205 $451,936 Portion of rental charges deemed to be interest........... 6,127 6,720 4,088 -------- -------- -------- Total fixed charges............. $375,452 $421,925 $456,024 -------- -------- -------- -------- -------- -------- Ratio of earnings to fixed charges**................... 1.73 1.10 * -------- -------- -------- -------- -------- --------
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The computation of the ratio of earnings to fixed charges is based on applicable amounts of the Company and its consolidated subsidiaries plus dividends received from less than fifty percent owned affiliates. "Earnings" consist of income before income taxes, changes in accounting and fixed charges excluding capitalized interest. "Fixed charges" consist of interest on indebtedness, amortization of debt discount and expense, an estimated amount of rental expense which is deemed to be representative of the interest factor, and capitalized interest.
* For the year ended October 31, 1991, earnings available for fixed charges coverage were $22 million less than the amount required for a ratio of earnings to fixed charges of 1.0.
** The Company has not issued preferred stock. Therefore, the ratios of earnings to combined fixed charges and preferred stock dividends are the same as the ratios presented above.