AVERY DENNISON CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
Three Months Ended Nine Months Ended
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September 27, September 28, September 27, September 28,
1997 1996 1997 1996
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Earnings:
Income before taxes $78.2 $71.4 $228.6 $198.0
Add: Fixed charges* 12.3 14.9 38.7 42.3
Amortization of capitalized interest 0.4 0.3 1.0 1.0
Less: Capitalized interest (0.5) (1.0) (1.8) (2.6)
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$90.4 $85.6 $266.5 $238.7
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*Fixed charges:
Interest expense $ 8.0 $10.1 $ 25.3 $ 28.4
Capitalized interest 0.5 1.0 1.8 2.6
Amortization of debt issuance costs 0.1 0.1 0.4 0.4
Interest portion of leases 3.7 3.7 11.2 10.9
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$12.3 $14.9 $ 38.7 $ 42.3
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Ratio of Earnings to Fixed Charges 7.3 5.7 6.9 5.6
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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.
Exhibit 12