EXHIBIT 12
CROWN HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
Twelve months | Twelve months | |||||
ended | ended | |||||
12/31/2003 | 12/31/2002 | |||||
Computation of Earnings: | ||||||
Income/(loss) before income taxes and cumulative effect of a change in accounting | $119 | ($145 | ) | |||
Adjustments to income | ||||||
Add: Distributed income from less than 50% owned companies | 9 | 5 | ||||
Add: Fixed charges as presented below | 398 | 355 | ||||
Subtract: Interest capitalized | (1 | ) | ||||
Add: Amortization of interest capitalized | 1 | |||||
Earnings | $526 | $215 | ||||
Computation of Fixed Charges: | ||||||
Interest excluding amortization of debt related costs | $356 | $342 | ||||
Interest capitalized | 1 | |||||
Amortization of debt related costs | 23 | 2 | ||||
Portion of rental expense representative of interest (1) | 18 | 11 | ||||
Total fixed charges | $398 | $355 | ||||
Ratio of earnings to fixed charges (2) (3) | 1.3 | * | ||||
(1) | One-third of net rent expense is the portion deemed representative of the interest factor. |
(2) | After charges (in millions) for (i) restructuring of $19 for 2003 and 2002 (ii) asbestos of $44 and $30, for 2003 and 2002, respectively, (iii) asset impairments and loss/(gain) on sale of assets of $73 and $247, for 2003 and 2002, respectively, (iv) (gain)/loss from early extinguishments of debt of $12 and ($28) in 2003 and 2002, respectively, and (v) a foreign exchange gain of $201 in 2003. |
(3) | Earnings did not cover fixed charges by $140 in 2002. |