Exhibit 12
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
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| Years ended December 31, |
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|
| 2005 |
| 2004 |
| 2003 |
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Earnings from continuing operations before income taxes and minority share owners’ interests |
| $ | (83.6 | ) | $ | 362.9 |
| $ | 12.0 |
| |
Less: | Equity earnings |
| (22.6 | ) | (27.8 | ) | (27.1 | ) | |||
Add: | Total fixed charges deducted from earnings |
| 479.7 |
| 489.1 |
| 440.6 |
| |||
| Proportional share of pre-tax earnings of 50% owned associates |
| 8.9 |
| 11.0 |
| 8.1 |
| |||
| Dividends received from equity investees |
| 11.0 |
| 12.8 |
| 31.1 |
| |||
Earnings available for payment of fixed charges |
| $ | 393.4 |
| $ | 848.0 |
| $ | 464.7 |
| |
Fixed charges (including the Company’s proportional share of 50% owned associates): |
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| Interest expense |
| $ | 450.7 |
| $ | 460.0 |
| $ | 415.4 |
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| Portion of operating lease rental deemed to be interest |
| 13.0 |
| 14.2 |
| 10.8 |
| |||
| Amortization of deferred financing costs and debt discount expense |
| 16.0 |
| 14.9 |
| 14.4 |
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Total fixed charges deducted from earnings |
| $ | 479.7 |
| $ | 489.1 |
| $ | 440.6 |
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Deficiency of earnings available to cover fixed charges |
| 86.3 |
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Ratio of earnings to fixed charges |
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|
| 1.7 |
| 1.0 |
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|
| Years ended December 31, |
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|
| 2002 |
| 2001 |
| |||
Earnings from continuing operations before income taxes, minority share owners’ interests and cumulative effect of accounting change |
| $ | 412.5 |
| $ | 650.9 |
| |
Less: | Equity earnings |
| (27.0 | ) | (18.8 | ) | ||
Add: | Total fixed charges deducted from earnings |
| 384.9 |
| 374.6 |
| ||
| Proportional share of pre-tax earnings of 50% owned associates |
| 13.3 |
| 10.4 |
| ||
| Dividends received from equity investees |
| 29.2 |
| 18.2 |
| ||
Earnings available for payment of fixed charges |
| $ | 812.9 |
| $ | 1,035.3 |
| |
Fixed charges (including the Company’s proportional share of 50% owned associates): |
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|
|
|
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| Interest expense |
| $ | 356.1 |
| $ | 345.3 |
|
| Portion of operating lease rental deemed to be interest |
| 12.7 |
| 14.3 |
| ||
| Amortization of deferred financing costs and debt discount expense |
| 16.1 |
| 15.0 |
| ||
Total fixed charges deducted from earnings |
| $ | 384.9 |
| $ | 374.6 |
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Ratio of earnings to fixed charges |
| 2.1 |
| 2.8 |
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