EXHIBIT 12
CROWN HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(in millions)
Twelve months | Twelve months | |||||
ended | ended | |||||
12/31/2005 | 12/31/2004 | |||||
Computation of Earnings: | ||||||
Income/(loss) from continuing operatons before income taxes, minority interests and equity earnings | ($314 | ) | $104 | |||
Adjustments to income | ||||||
Add: Distributed income from less than 50% owned companies | 9 | 11 | ||||
Add: Fixed charges, as presented below | 379 | 380 | ||||
Subtract: Interest capitalized | (1 | ) | 0 | |||
Add: Amortization of interest previously capitalized | 0 | 1 | ||||
Earnings | $ 73 | $496 | ||||
Computation of Fixed Charges: | ||||||
Interest incurred | $344 | $338 | ||||
Interest capitalized | 1 | 0 | ||||
Amortization of debt-related costs | 17 | 23 | ||||
Portion of rental expense representative of interest (1) | 17 | 19 | ||||
Total fixed charges | $379 | $380 | ||||
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) | Earnings did not cover fixed charges by $306 in 2005. |
(3) | Income/(loss) from continuing operations before income taxes, minority interests and equity earnings include: charges for asbestos of $10 and $35 in 2005 and 2004, respectively; charges for asset impairments and loss/gain on sale of assets of $10 and $47 in 2005 and 2004, respectively; losses from early extinguishments of debt of $383 and $39 in 2005 and 2004, respectively; and foreign exchange (gains)/losses of $94 and ($98) in 2005 and 2004, respectively. |