EXHIBIT 12
CROWN HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(in millions)
Twelve months | Twelve months | |||||
ended | ended | |||||
12/31/2004 | 12/31/2003 | |||||
Computation of Earnings: | ||||||
Income before income taxes and cumulative effect of a change in accounting | $161 | $119 | ||||
Adjustments to income | ||||||
Add: Distributed income from less than 50% owned companies | 11 | 9 | ||||
Add: Fixed charges, as presented below | 380 | 398 | ||||
Subtract: Interest capitalized | 0 | (1 | ) | |||
Add: Amortization of interest capitalized | 1 | 1 | ||||
Earnings | $553 | $526 | ||||
Computation of Fixed Charges: | ||||||
Interest excluding amortization of debt related costs | $338 | $356 | ||||
Interest capitalized | 0 | 1 | ||||
Amortization of debt related costs | 23 | 23 | ||||
Portion of rental expense representative of interest (1) | 19 | 18 | ||||
Total fixed charges | $380 | $398 | ||||
Ratio of earnings to fixed charges (2) | 1.5 | 1.3 | ||||
(1) | One-third of net rent expense is the portion deemed representative of the interest factor. |
(2) | After pre-tax charges for 2004 and 2003, respectively, for (i) restructuring of $7 and $19, (ii) asbestos of $35 and $44, (iii) asset impairments and loss/(gain) on sale of assets of $47 and $73, (iv) loss from early extinguishments of debt of $39 and $12, and (v) gains from foreign exchange adjustments of ($98) and ($207). |