EXHIBIT 12
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
|
| Years ended December 31, |
| |||||||
|
| 2006 |
| 2005 |
| 2004 |
| |||
Earnings from continuing operations before income taxes and minority share owners’ interests |
| $ | 262.6 |
| $ | (83.6 | ) | $ | 362.9 |
|
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 |
| $ | 787.8 |
| $ | 393.4 |
| $ | 848.0 |
|
Fixed charges (including the Company’s proportional share of 50% owned associates): |
|
|
|
|
|
|
| |||
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 |
|
|
|
|
|
|
|
|
| |||
Deficiency of earnings available to cover fixed charges |
|
|
| 86.3 |
|
|
| |||
Ratio of earnings to fixed charges |
| 1.6 |
|
|
| 1.7 |
| |||
1
|
| Years ended December 31, |
| ||||
|
| 2003 |
| 2002 |
| ||
Earnings from continuing operations before income taxes, minority share owners’ interests and cumulative effect of accounting change |
| $ | 12.0 |
| $ | 412.5 |
|
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 equity investees |
| 31.1 |
| 29.2 |
| ||
Earnings available for payment of fixed charges |
| $ | 464.7 |
| $ | 812.9 |
|
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 |
|
|
|
|
|
|
| ||
Ratio of earnings to fixed charges |
| 1.0 |
| 2.1 |
| ||
2