EXHIBIT 12
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
|
| Years ended December 31, |
| |||||||
|
| 2008 |
| 2007 |
| 2006 |
| |||
Earnings from continuing operations before income taxes and minority share owners’ interests |
| $ | 808.4 |
| $ | 621.6 |
| $ | 285.1 |
|
Less: Equity earnings |
| (50.8 | ) | (34.1 | ) | (23.4 | ) | |||
Add: Total fixed charges deducted from earnings |
| 260.5 |
| 362.7 |
| 361.3 |
| |||
Proportional share of pre-tax earnings of 50% owned associates |
| 12.6 |
| 7.7 |
| 7.9 |
| |||
Dividends received from equity investees |
| 24.5 |
| 21.7 |
| 43.5 |
| |||
Earnings available for payment of fixed charges |
| $ | 1,055.2 |
| $ | 979.6 |
| $ | 674.4 |
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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 |
| $ | 245.1 |
| $ | 340.0 |
| $ | 343.3 |
|
Portion of operating lease rental deemed to be interest |
| 7.5 |
| 14.1 |
| 12.3 |
| |||
Amortization of deferred financing costs and debt discount expense |
| 7.9 |
| 8.6 |
| 5.7 |
| |||
Total fixed charges deducted from earnings |
| $ | 260.5 |
| $ | 362.7 |
| $ | 361.3 |
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Ratio of earnings to fixed charges |
| 4.1 |
| 2.7 |
| 1.9 |
| |||
1
OWENS-ILLINOIS GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions of dollars, except ratios)
|
| Years ended December 31, |
| ||||
|
| 2005 |
| 2004 |
| ||
Earnings from continuing operations before income taxes and minority share owners’ interests |
| $ | (72.1 | ) | $ | 395.8 |
|
Less: Equity earnings |
| (20.5 | ) | (26.1 | ) | ||
Add: Total fixed charges deducted from earnings |
| 336.5 |
| 342.0 |
| ||
Proportional share of pre-tax earnings of 50% owned associates |
| 8.9 |
| 11.0 |
| ||
Dividends received from equity investees |
| 11.0 |
| 12.8 |
| ||
Earnings available for payment of fixed charges |
| $ | 263.8 |
| $ | 735.5 |
|
Fixed charges (including the Company’s proportional share of 50% owned associates): |
|
|
|
|
| ||
Interest expense |
| $ | 318.7 |
| $ | 323.0 |
|
Portion of operating lease rental deemed to be interest |
| 11.1 |
| 13.0 |
| ||
Amortization of deferred financing costs and debt discount expense |
| 6.7 |
| 6.0 |
| ||
Total fixed charges deducted from earnings |
| $ | 336.5 |
| $ | 342.0 |
|
|
|
|
|
|
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Deficiency of earnings available to cover fixed charges |
| $ | 72.7 |
|
|
| |
Ratio of earnings to fixed charges |
|
|
| 2.2 |
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2