Exhibit 12
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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| 2009 |
| 2008 |
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Earnings from continuing operations before income taxes |
| $ | 494.8 |
| $ | 714.5 |
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Less: | Equity earnings |
| (39.6 | ) | (36.7 | ) | ||
Add: | Total fixed charges deducted from earnings |
| 170.1 |
| 205.5 |
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| Proportional share of pre-tax earnings of 50% owned associates |
| 11.8 |
| 10.5 |
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| Dividends received from equity investees |
| 24.1 |
| 21.2 |
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| Earnings available for payment of fixed charges |
| $ | 661.2 |
| $ | 915.0 |
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Fixed charges (including the Company’s proportional share of 50% owned associates): |
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| Interest expense |
| $ | 158.4 |
| $ | 193.8 |
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| Portion of operating lease rental deemed to be interest |
| 4.4 |
| 5.7 |
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| Amortization of deferred financing costs and debt discount expense |
| 7.3 |
| 6.0 |
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| Total fixed charges deducted from earnings and fixed charges |
| 170.1 |
| 205.5 |
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Preferred stock dividends (increased to assumed pre-tax amount) |
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| 7.2 |
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Combined fixed charges and preferred stock dividends |
| $ | 170.1 |
| $ | 212.7 |
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Ratio of earnings to fixed charges |
| 3.9 |
| 4.5 |
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Ratio of earnings to combined fixed charges and preferred stock dividends |
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| 4.3 |
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