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OWENS-ILLINOIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of dollars, except ratios)
| | Years ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2001 | |||||||||
| Earnings (loss) before income taxes, minority share owners' interests and cumulative effect of accounting change | $ | (1,090.7 | ) | $ | 1.2 | $ | 660.6 | |||||
| Less: Equity earnings | (27.1 | ) | (27.0 | ) | (19.4 | ) | ||||||
| Add: Total fixed charges deducted from earnings | 501.4 | 449.8 | 454.9 | |||||||||
| Proportional share of pre-tax earnings of 50% owned associates | 8.1 | 13.3 | 10.4 | |||||||||
| Dividends received from less than 50% owned associates | 31.1 | 29.2 | 18.2 | |||||||||
| Earnings available for payment of fixed charges | $ | (577.2 | ) | $ | 466.5 | $ | 1,124.7 | |||||
| Fixed charges (including the Company's proportional share of 50% owned associates): | ||||||||||||
| Interest expense | $ | 467.1 | $ | 414.0 | $ | 420.7 | ||||||
| Portion of operating lease rental deemed to be interest | 10.8 | 12.7 | 14.3 | |||||||||
| Amortization of deferred financing costs and debt discount expense | 23.5 | 23.1 | 19.9 | |||||||||
| Total fixed charges deducted from earnings | $ | 501.4 | $ | 449.8 | $ | 454.9 | ||||||
| Preferred stock dividends (increased to assumed pre-tax amount) | 30.3 | 30.7 | 36.7 | |||||||||
| Combined fixed charges and preferred stock dividends | $ | 531.7 | $ | 480.5 | $ | 491.6 | ||||||
| Ratio of earnings to fixed charges | 1.0 | 2.5 | ||||||||||
| Deficiency of earnings available to cover fixed charges | 1,078.6 | |||||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends | 2.3 | |||||||||||
| Deficiency of earnings available to cover combined fixed charges and preferred stock dividends | 1,108.9 | 14.0 | ||||||||||
EXHIBIT 12—Page 2 of 2
| | Years ended December 31, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| | 2000 | 1999 | ||||||||
| Earnings before income taxes and minority share owners' interests | $ | (391.6 | ) | $ | 496.6 | |||||
| Less: Equity earnings | (19.8 | ) | (22.3 | ) | ||||||
| Add: Total fixed charges deducted from earnings | 499.2 | 453.6 | ||||||||
| Proportional share of pre-tax earnings of 50% owned associates | 11.0 | 10.6 | ||||||||
| Dividends received from less than 50% owned associates | 14.5 | 9.8 | ||||||||
| Earnings available for payment of fixed charges | $ | 113.3 | $ | 948.3 | ||||||
| Fixed charges (including the Company's proportional share of 50% owned associates): | ||||||||||
| Interest expense | $ | 476.6 | $ | 418.2 | ||||||
| Portion of operating lease rental deemed to be interest | 12.5 | 26.5 | ||||||||
| Amortization of deferred financing costs and debt discount expense | 10.1 | 8.9 | ||||||||
| Total fixed charges deducted from earnings | $ | 499.2 | $ | 453.6 | ||||||
| Preferred stock dividends (increased to assumed pre-tax amount) | 21.7 | 35.5 | ||||||||
| Combined fixed charges and preferred stock dividends | $ | 520.9 | $ | 489.1 | ||||||
| Ratio of earnings to fixed charges | 2.1 | |||||||||
| Deficiency of earnings available to cover fixed charges | 385.9 | |||||||||
| Ratio of earnings to combined fixed charges and preferred stock dividends | 1.9 | |||||||||
| Deficiency of earnings available to cover combined fixed charges and preferred stock dividends | 407.6 | |||||||||