Exhibit 12 AVERY DENNISON CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in Millions) Three Months Ended Six Months Ended ------------------------------------------------------------------ June 29, 2002 June 30, 2001 June 29, 2002 June 30, 2001 - -------------------------------------------------------------------------------------------------------------------------- Earnings: Income before taxes $ 105.5 $ 89.9 $ 199.4 $ 185.9 Add: Fixed charges* 15.8 19.0 31.1 38.5 Amortization of capitalized interest .5 .5 1.0 .9 Less: Capitalized interest (1.5) (1.4) (2.9) (3.0) - -------------------------------------------------------------------------------------------------------------------------- $ 120.3 $ 108.0 $ 228.6 $ 222.3 ========================================================================================================================== *Fixed charges: Interest expense $ 9.6 $ 13.5 $ 18.9 $ 27.3 Capitalized interest 1.5 1.4 2.9 3.0 Amortization of debt issuance costs .1 .1 .2 .2 Interest portion of leases 4.6 4.0 9.1 8.0 - -------------------------------------------------------------------------------------------------------------------------- $ 15.8 $ 19.0 $ 31.1 $ 38.5 ========================================================================================================================== Ratio of Earnings to Fixed Charges 7.6 5.7 7.4 5.8 ========================================================================================================================== The ratios of earnings to fixed charges were computed by dividing earnings by fixed charges. For this purpose, "earnings" consist of income before taxes plus fixed charges (excluding capitalized interest), and "fixed charges" consist of interest expense, capitalized interest, amortization of debt issuance costs and the portion of rent expense (estimated to be 35%) on operating leases deemed representative of interest.