Exhibit 12 -- Page 1 of 2
OWENS-ILLINOIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of dollars, except ratios)
Years ended December 31,
-----------------------------------
Pro Forma
As Adjusted For
BTR Packaging
Acquisition
1999 1998 1998
------ ------ ---------------
Earnings before income taxes, minority
share owners' interests, and
extraordinary items . . . . . . . . $497.8 $209.0 $256.2
Less: Equity earnings . . . . . . . . (22.3) (16.0) (16.0)
Add: Total fixed charges deducted
from earnings. . . . . . . . . 452.4 404.8 459.6
Proportional share of pre-tax
earnings of 50% owned
associates . . . . . . . . . . 10.6 7.2 7.2
Dividends received from less
than 50% owned associates. . . 9.8 6.6 6.6
------ ------ ------
Earnings available for
payment of fixed charges . . $948.3 $611.6 $713.6
====== ====== ======
Fixed charges (including the Company's
proportional share of 50% owned
associates):
Interest expense . . . . . . . . . $417.0 $372.6 $422.9
Portion of operating lease rental
deemed to be interest. . . . . . 26.5 24.8 25.9
Amortization of deferred financing
costs and debt discount expense. 8.9 7.4 10.8
------ ------ ------
Total fixed charges
deducted from earnings
and total fixed charges. . . $452.4 $404.8 $459.6
Preferred stock dividends (increased
to assumed pre-tax amount) . . . . . 35.5 21.3 33.6
------ ------ ------
Combined fixed charges and preferred
stock dividends. . . . . . . . . . . $487.9 $426.1 $493.2
====== ====== ======
Ratio of earnings to fixed charges . . 2.1 1.5 1.6
Ratio of earnings to combined fixed
charges and preferred stock
dividends. . . . . . . . . . . . . . 1.9 1.4 1.4
E-1
Exhibit 12 -- Page 2 of 2
OWENS-ILLINOIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of dollars, except ratios)
Years ended December 31,
--------------------------
1997 1996 1995
------ ------ ------
Earnings before income taxes, minority share
owners' interests, and extraordinary items . . $452.3 $324.1 $310.0
Pretax earnings of majority-owned subsidiary not
consolidated . . . . . . . . . . . . . . . . .
Less: Equity earnings . . . . . . . . . . . . . (17.9) (15.2) (14.4)
Add: Total fixed charges deducted from
earnings . . . . . . . . . . . . . . . . 324.1 324.3 321.1
Proportional share of pre-tax earnings of
50% owned associates . . . . . . . . . . 2.8
Dividends received from less than 50%
owned associates . . . . . . . . . . . . 4.8 2.7 3.7
------ ------ ------
Earnings available for payment of
fixed charges. . . . . . . . . . . . . $766.1 $635.9 $620.4
====== ====== ======
Fixed charges (including the Company's
proportional share of 50% owned associates):
Interest expense . . . . . . . . . . . . . . $298.7 $297.6 $294.6
Portion of operating lease rental deemed
to be interest . . . . . . . . . . . . . . 21.3 21.7 21.5
Amortization of deferred financing costs and
debt discount expense. . . . . . . . . . . 4.1 5.0 5.0
------ ------ ------
Total fixed charges deducted from
earnings and total fixed charges . . . $324.1 $324.3 $321.1
Preferred stock dividends (increased to assumed
pre-tax amount). . . . . . . . . . . . . . . . 2.2 2.2 2.6
------ ------ ------
Combined fixed charges and preferred stock
dividends. . . . . . . . . . . . . . . . . . . $326.3 $326.5 $323.7
====== ====== ======
Ratio of earnings to fixed charges . . . . . . 2.4 2.0 1.9
Ratio of earnings to combined fixed charges and
preferred stock dividends. . . . . . . . . 2.3 1.9 1.9
E-2