EXHIBIT 12.1
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
| | Years ended December 31, | |
| | 2008 | | 2007 | | 2006 | |
Earnings from continuing operations before income taxes | | $ | 808.4 | | $ | 621.6 | | $ | 285.1 | |
Less: Equity earnings | | (50.8 | ) | (34.1 | ) | (23.4 | ) |
Add: Total fixed charges deducted from earnings | | 260.5 | | 362.7 | | 361.3 | |
Proportional share of pre-tax earnings of 50% owned associates | | 12.6 | | 7.7 | | 7.9 | |
Dividends received from equity investees | | 24.5 | | 21.7 | | 43.5 | |
Earnings available for payment of fixed charges | | $ | 1,055.2 | | $ | 979.6 | | $ | 674.4 | |
| | | | | | | |
Fixed charges (including the Company’s proportional share of 50% owned associates): | | | | | | | |
Interest expense | | $ | 245.1 | | $ | 340.0 | | $ | 343.3 | |
Portion of operating lease rental deemed to be interest | | 7.5 | | 14.1 | | 12.3 | |
Amortization of deferred financing costs and debt discount expense | | 7.9 | | 8.6 | | 5.7 | |
Total fixed charges deducted from earnings | | $ | 260.5 | | $ | 362.7 | | $ | 361.3 | |
| | | | | | | |
Ratio of earnings to fixed charges | | 4.1 | | 2.7 | | 1.9 | |
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
| | Years ended December 31, | |
| | 2005 | | 2004 | |
Earnings from continuing operations before income taxes | | $ | (72.1 | ) | $ | 395.8 | |
Less: Equity earnings | | (20.5 | ) | (26.1 | ) |
Add: Total fixed charges deducted from earnings | | 336.5 | | 342.0 | |
Proportional share of pre-tax earnings of 50% owned associates | | 8.9 | | 11.0 | |
Dividends received from equity investees | | 11.0 | | 12.8 | |
Earnings available for payment of fixed charges | | $ | 263.8 | | $ | 735.5 | |
| | | | | |
Fixed charges (including the Company’s proportional share of 50% owned associates): | | | | | |
Interest expense | | $ | 318.7 | | $ | 323.0 | |
Portion of operating lease rental deemed to be interest | | 11.1 | | 13.0 | |
Amortization of deferred financing costs and debt discount expense | | 6.7 | | 6.0 | |
Total fixed charges deducted from earnings | | $ | 336.5 | | $ | 342.0 | |
| | | | | |
Deficiency of earnings available to cover fixed charges | | $ | 72.7 | | | |
Ratio of earnings to fixed charges | | | | 2.2 | |
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
| | Three months ended March 31, | |
| | 2009 | | 2008 | |
| | | | | |
Earnings from continuing operations before income taxes | | $ | 90.0 | | $ | 255.1 | |
Less: Equity earnings | | (13.6 | ) | (11.1 | ) |
Add: Total fixed charges deducted from earnings | | 49.6 | | 66.2 | |
Proportional share of pre-tax earnings of 50% owned associates | | 3.4 | | 3.8 | |
Dividends received from equity investees | | 6.9 | | 7.0 | |
Earnings available for payment of fixed charges | | $ | 136.3 | | $ | 321.0 | |
| | | | | |
Fixed charges (including the Company’s proportional share of 50% owned associates): | | | | | |
| | | | | |
Interest expense | | $ | 45.7 | | $ | 62.4 | |
Portion of operating lease rental deemed to be interest | | 1.5 | | 1.9 | |
Amortization of deferred financing costs and debt discount expense | | 2.4 | | 1.9 | |
| | | | | |
Total fixed charges deducted from earnings and fixed charges | | $ | 49.6 | | $ | 66.2 | |
| | | | | |
Ratio of earnings to fixed charges | | 2.7 | | 4.8 | |
