Exhibit No. 12
Armstrong World Industries, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(dollar amounts in millions)
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Determination of Earnings | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 123.9 | $ | 185.2 | $ | 198.7 | $ | 234.6 | $ | 222.9 | ||||||||||
Equity earnings from joint venture | (66.1 | ) | (65.1 | ) | (59.4 | ) | (55.9 | ) | (54.9 | ) | ||||||||||
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Earnings from continuing operations before income taxes and equity earnings | $ | 57.8 | $ | 120.1 | $ | 139.3 | $ | 178.7 | $ | 168.0 | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 54.1 | 55.7 | 78.3 | 63.0 | 55.0 | |||||||||||||||
Distributed income from equity affiliates (1) | — | — | — | — | — | |||||||||||||||
Amortization of capitalized interest | 0.2 | 0.2 | 0.1 | 0.1 | — | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (1.4 | ) | (2.6 | ) | (2.8 | ) | (3.6 | ) | (1.4 | ) | ||||||||||
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Total earnings as defined | $ | 110.7 | $ | 173.4 | $ | 214.9 | $ | 238.2 | $ | 221.6 | ||||||||||
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Fixed charges | ||||||||||||||||||||
Interest expense | $ | 45.3 | $ | 46.0 | $ | 68.7 | $ | 53.6 | $ | 48.4 | ||||||||||
Capitalized interest | 1.4 | 2.6 | 2.8 | 3.6 | 1.4 | |||||||||||||||
Estimate of interest included in rent expense (2) | 7.4 | 7.1 | 6.8 | 5.8 | 5.2 | |||||||||||||||
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Total fixed charges | $ | 54.1 | $ | 55.7 | $ | 78.3 | $ | 63.0 | $ | 55.0 | ||||||||||
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Ratio of Earnings to Fixed Charges | 2.0 | 3.1 | 2.7 | 3.8 | 4.0 | |||||||||||||||
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(1) | – Includes only return on investment, not return of investment |
(2) | – One-third of rental expense is considered to be representative of the interest factor in rental expense. |