Exhibit 12
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
|
| Six months ended June 30, |
| |||||||
|
| 2008 |
| 2007 |
| |||||
|
|
|
|
|
| |||||
Earnings from continuing operations before income taxes, and minority share owners’ interests |
| $ | 575.7 |
| $ | 312.0 |
| |||
Less: | Equity earnings |
| (23.8 | ) | (13.9 | ) | ||||
Add: | Total fixed charges deducted from earnings |
| 137.2 |
| 166.5 |
| ||||
| Proportional share of pre-tax earnings of 50% owned associates |
| 7.4 |
| 1.6 |
| ||||
| Dividends received from equity investees |
| 12.5 |
| 7.2 |
| ||||
| Earnings available for payment of fixed charges |
| $ | 709.0 |
| $ | 473.4 |
| ||
|
|
|
|
|
| |||||
Fixed charges (including the Company’s proportional share of 50% owned associates): |
|
|
|
|
| |||||
|
|
|
|
|
| |||||
| Interest expense |
| $ | 129.5 |
| $ | 160.7 |
| ||
| Portion of operating lease rental deemed to be interest |
| 3.7 |
| 3.3 |
| ||||
| Amortization of deferred financing costs and debt discount expense |
| 4.0 |
| 2.5 |
| ||||
| Total fixed charges deducted from earnings and fixed charges |
| $ | 137.2 |
| $ | 166.5 |
| ||
|
|
|
|
|
| |||||
Ratio of earnings to fixed charges |
| 5.2 |
| 2.8 |
| |||||