EXHIBIT 12 |
Crown Cork & Seal Company, Inc.
COMPUTATION OF RATIO OF EARNINGS TO
FIXED CHARGES
Twelve months ended 12/31/2001 | Twelve months ended 12/31/2000 | Twelve months ended 12/31/1999 | Twelve months ended 12/31/1998 | Twelve months ended 12/31/1997 | |||||||
Computation of Earnings: | |||||||||||
Income/(loss) before income taxes and cumulative | |||||||||||
effect of a change in accounting | ($444 | ) | ($217 | ) | $309 | $180 | $457 | ||||
Adjustments to income: | |||||||||||
Add: Distributed income from less than | |||||||||||
50% owned companies | 2 | 4 | 4 | 7 | 2 | ||||||
Add: Portion of rent expense representative | |||||||||||
of interest expense (1) | 11 | 12 | 10 | 6 | 7 | ||||||
Add: Interest incurred net of amounts | |||||||||||
capitalized | 455 | 393 | 367 | 408 | 379 | ||||||
Add: Amortization of interest previously | |||||||||||
capitalized | 1 | (1 | ) | (1 | ) | 1 | 3 | ||||
Add: Amortization of debt issue costs | 2 | 3 | 6 | 2 | 2 | ||||||
Earnings | $27 | $194 | $695 | $604 | $850 | ||||||
Computation of Fixed Charges: | |||||||||||
Interest incurred | $456 | $394 | $368 | $414 | $385 | ||||||
Amortization of debt issue costs | 2 | 3 | 6 | 2 | 2 | ||||||
Portion of rental expense representative | |||||||||||
of interest (1) | 11 | 12 | 10 | 6 | 7 | ||||||
Total fixed charges | 469 | 409 | 384 | 422 | 394 | ||||||
Preferred stock dividend requirements | 3 | 23 | 29 | 35 | |||||||
Combined fixed charges and preferred stock dividends | $469 | $412 | $407 | $451 | $429 | ||||||
Ratio of earnings to fixed charges (2) | (3 | ) | (3 | ) | 1.8 X | 1.4 X | 2.2 X | ||||
Ratio of earnings to combined fixed charges | |||||||||||
and preferred stock dividends (2) | (3 | ) | (3 | ) | 1.7 X | 1.3 X | 2.0 X |
(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 $48, $52, $(7), $179 and $67 for 2001, 2000, 1999, 1998 and 1997, respectively, (ii) asbestos of $51, $255, $163 and $125 for 2001, 2000, 1999 and 1998, respectively and (iii) asset impairments of $215 and $26 for 2001 and 2000, respectively. |
(3) | Earnings did not cover fixed charges by $442 in 2001 and $218 for 2000. |