Exhibit 12.1
BORDEN CHEMICAL, INC.
Statement regarding Computation of Ratios
(Amounts in thousands of dollars)
Year ended December 31, | Nine months ended September 30, | |||||||||||||||||||
1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2004 | ||||||||||||||
Pre-tax income (loss) from continuing operations | 58,665 | (84,660 | ) | (167,437 | ) | (9,020 | ) | 18,317 | 26,527 | (35,116 | ) | |||||||||
Add back (deduct): | ||||||||||||||||||||
Minority interest expense (income) | (272 | ) | (418 | ) | (184 | ) | 900 | 163 | (85 | ) | 742 | |||||||||
Loss (gain) from equity investees | (3,160 | ) | 1,536 | 1,452 | — | — | — | — | ||||||||||||
Fixed charges | 93,367 | 91,264 | 72,664 | 53,972 | 51,561 | 38,219 | 45,547 | |||||||||||||
Earnings | 148,600 | 7,722 | (93,505 | ) | 45,852 | 70,041 | 64,661 | 11,173 | ||||||||||||
Fixed charges are composed of: | ||||||||||||||||||||
Interest expense | 63,059 | 62,654 | 51,613 | 47,315 | 46,138 | 34,114 | 42,563 | |||||||||||||
Affiliated interest expense | 23,130 | 20,963 | 14,529 | 1,857 | 558 | 456 | 138 | |||||||||||||
Interest element of lease costs (a) | 7,178 | 7,647 | 6,522 | 4,800 | 4,865 | 3,649 | 2,846 | |||||||||||||
Total fixed charges | 93,367 | 91,264 | 72,664 | 53,972 | 51,561 | 38,219 | 45,547 | |||||||||||||
Ratio of earnings to fixed charges | 1.6 | (b) | (b) | (b) | 1.4 | 1.7 | (b) | |||||||||||||
(a) | The interest element of lease costs has been calculated as 1/3 of the rental expense relating to operating leases as management believes this represents the interest portion hereof. |
(b) | For the years ended December 31, 2000, 2001 and 2002, fixed charges exceeded earnings by $83,542, $166,169 and $8,120, respectively. For the nine months ended September 30, 2004, fixed charges exceeded earnings by $34,374. |