Exhibit 12.1
PolyOne Corporation
Ratio of Earnings to Fixed Charges
(Dollars in millions)
Ratio of Earnings to Fixed Charges
(Dollars in millions)
| Adjusted | Six Months Ended | |||||||||||||||||||||||||||
| Year Ended December 31, | June 30, | |||||||||||||||||||||||||||
| Adjusted | ||||||||||||||||||||||||||||
| 2005 | 2006 | 2007 (1) | 2008 (2) | 2009 | 2009 (3) | 2010 | ||||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||||||
| Income (loss)before income taxes and discontinued operations | $ | 79.5 | $ | 106.6 | $ | (22.5 | ) | $ | (175.7 | ) | $ | 36.2 | $ | (22.1 | ) | $ | 75.0 | |||||||||||
| (Income) loss from equity affiliates and minority interest | (79.9 | ) | (112.0 | ) | (27.7 | ) | (31.2 | ) | (35.2 | ) | (23.4 | ) | (9.3 | ) | ||||||||||||||
| (0.4 | ) | (5.4 | ) | (50.2 | ) | (206.9 | ) | 1.0 | (45.5 | ) | 65.7 | |||||||||||||||||
| Share of distributed earnings in equity affiliates | 67.4 | 97.7 | 37.6 | 32.9 | 36.5 | 14.2 | 1.5 | |||||||||||||||||||||
| Add, fixed charges | 76.0 | 78.8 | 71.7 | 48.7 | 46.5 | 22.1 | 19.6 | |||||||||||||||||||||
| Add, amortization of capitalized interest | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | — | — | |||||||||||||||||||||
| Subtract, interest capitalized | — | — | (0.1 | ) | — | — | — | — | ||||||||||||||||||||
| Net earnings (loss) | $ | 143.2 | $ | 171.3 | $ | 59.2 | $ | (125.1 | ) | $ | 84.2 | $ | (9.2 | ) | $ | 86.8 | ||||||||||||
| Fixed Charges: | ||||||||||||||||||||||||||||
| Interest expense | $ | 68.1 | $ | 66.5 | $ | 51.4 | $ | 40.6 | $ | 37.5 | $ | 17.6 | $ | 15.7 | ||||||||||||||
| Capitalized interest | — | — | 0.1 | — | — | — | — | |||||||||||||||||||||
| Premium on indebtedness | — | 4.4 | 12.8 | — | — | — | — | |||||||||||||||||||||
| Interest portion of rentals | 2.2 | 2.6 | 2.6 | 3.7 | 5.0 | 2.5 | 2.1 | |||||||||||||||||||||
| Interest expense relating to guaranteed debt of equity affiliates | 5.7 | 5.3 | 4.8 | 4.4 | 4.0 | 2.0 | 1.8 | |||||||||||||||||||||
| Fixed charges | $ | 76.0 | $ | 78.8 | $ | 71.7 | $ | 48.7 | $ | 46.5 | $ | 22.1 | $ | 19.6 | ||||||||||||||
| Ratio of earnings to fixed charges | 1.9x | 2.2x | — | — | 1.8x | — | 4.4x | |||||||||||||||||||||
| (1) | Earnings for 2007 were insufficient to cover fixed charges by $12.5 million. Accordingly, such ratio is not presented. | |
| (2) | Earnings for 2008 were insufficient to cover fixed charges by $173.8 million. Accordingly, such ratio is not presented. | |
| (3) | Earnings for the six months ended June 30, 2009 were insufficient to cover fixed charges by $31.3 million. Accordingly, such ratio is not presented. |