EXHIBIT 12
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, |
| |||||||
|
| 2006 |
| 2005 |
| 2004 |
| |||
Earnings (loss) from continuing operations before income taxes and minority share owners’ interests |
| $ | 142.6 |
| $ | (218.6 | ) | $ | 210.3 |
|
Less: Equity earnings |
| (25.7 | ) | (22.6 | ) | (27.8 | ) | |||
Add: Total fixed charges deducted from earnings |
| 498.0 |
| 479.7 |
| 489.1 |
| |||
Proportional share of pre-tax earnings of 50% owned associates |
| 7.9 |
| 8.9 |
| 11.0 |
| |||
Dividends received from equity investees |
| 45.0 |
| 11.0 |
| 12.8 |
| |||
Earnings available for payment of fixed charges |
| $ | 667.8 |
| $ | 258.4 |
| $ | 695.4 |
|
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|
|
|
|
|
|
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Fixed charges (including the Company’s proportional share of 50% owned associates): |
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|
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Interest expense |
| $ | 475.3 |
| $ | 450.7 |
| $ | 460.0 |
|
Portion of operating lease rental deemed to be interest |
| 9.8 |
| 13.0 |
| 14.2 |
| |||
Amortization of deferred financing costs and debt discount expense |
| 12.9 |
| 16.0 |
| 14.9 |
| |||
Total fixed charges deducted from earnings |
| $ | 498.0 |
| $ | 479.7 |
| $ | 489.1 |
|
Preferred stock dividends (increased to assumed pre-tax amount) |
| 36.0 |
| 30.7 |
| 29.4 |
| |||
Combined fixed charges and preferred stock dividends |
| $ | 534.0 |
| $ | 510.4 |
| $ | 518.5 |
|
Ratio of earnings to fixed charges |
| 1.3 |
|
|
| 1.4 |
| |||
Deficiency of earnings available to cover fixed charges |
|
|
| $ | 221.3 |
|
|
| ||
Ratio of earnings to combined fixed charges and preferred stock dividends |
| 1.3 |
|
|
| 1.3 |
| |||
Deficiency of earnings available to cover combined fixed charges and preferred stock dividends |
|
|
| 252.0 |
|
|
| |||
1
|
| Years ended December 31, |
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|
| 2003 |
| 2002 |
| ||
Loss from continuing operations before income taxes, minority share owners’ interests and cumulative effect of accounting change |
| $ | (438.0 | ) | $ | (62.5 | ) |
Less: Equity earnings |
| (27.1 | ) | (27.0 | ) | ||
Add: Total fixed charges deducted from earnings |
| 440.6 |
| 384.9 |
| ||
Proportional share of pre-tax earnings of 50% owned associates |
| 8.1 |
| 13.3 |
| ||
Dividends received from less than 50% owned associates |
| 31.1 |
| 29.2 |
| ||
Earnings available for payment of fixed charges |
| $ | 14.7 |
| $ | 337.9 |
|
Fixed charges (including the Company’s proportional share of 50% owned associates): |
|
|
|
|
| ||
Interest expense |
| $ | 415.4 |
| $ | 356.1 |
|
Portion of operating lease rental deemed to be interest |
| 10.8 |
| 12.7 |
| ||
Amortization of deferred financing costs and debt discount expense |
| 14.4 |
| 16.1 |
| ||
Total fixed charges deducted from earnings |
| $ | 440.6 |
| $ | 384.9 |
|
Preferred stock dividends (increased to assumed pre-tax amount) |
| 30.3 |
| 30.7 |
| ||
Combined fixed charges and preferred stock dividends |
| $ | 470.9 |
| $ | 415.6 |
|
Deficiency of earnings available to cover fixed charges |
| $ | 425.9 |
| $ | 47.0 |
|
Deficiency of earnings available to cover combined fixed charges and preferred stock dividends |
| 456.2 |
| 77.7 |
| ||
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