OWENS-ILLINOIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
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| Nine months ended September 30, |
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| 2006 |
| 2005 |
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Earnings from continuing operations before income taxes, and minority share owners’ interests |
| $ | 214.1 |
| $ | 389.9 |
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Less: | Equity earnings |
| (21.2 | ) | (17.9 | ) | ||
Add: | Total fixed charges deducted from earnings |
| 379.6 |
| 358.1 |
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| Proportional share of pre-tax earnings of 50% owned associates |
| 8.1 |
| 7.1 |
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| Dividends received from equity investees |
| 39.3 |
| 6.5 |
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| Earnings available for payment of fixed charges |
| $ | 619.9 |
| $ | 743.7 |
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Fixed charges (including the Company’s proportional share of 50% owned associates): |
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| Interest expense |
| $ | 361.5 |
| $ | 336.2 |
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| Portion of operating lease rental deemed to be interest |
| 7.6 |
| 9.7 |
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| Amortization of deferred financing costs and debt discount expense |
| 10.5 |
| 12.2 |
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| Total fixed charges deducted from earnings and fixed charges |
| 379.6 |
| 358.1 |
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Preferred stock dividends (increased to assumed pre-tax amount) |
| 31.1 |
| 23.0 |
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Combined fixed charges and preferred stock dividends |
| $ | 410.7 |
| $ | 381.1 |
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Ratio of earnings to fixed charges |
| 1.6 |
| 2.1 |
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Ratio of earnings to combined fixed charges and preferred stock dividends |
| 1.5 |
| 2.0 |
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