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EXHIBIT 12.1
POLYONE CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS)
Three months ended
March 31, Year ended December 31,
2003 (1) 2002 (2) 2002 (3) 2001 (4) 2000 1999 1998
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Earnings:
Income (loss) before income taxes, discontinued
operations and cumulative effect of a change
in accounting (31.6) (6.5) (11.8) (74.2) 24.6 174.0 23.6
(Income) loss from equity affiliates and
minority interest (5.6) 2.2 (20.2) 9.8 (37.7) (9.7) (3.7)
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(37.2) (4.3) (32.0) (64.4) (13.1) 164.3 19.9
Share of distributed earnings of equity affiliates 3.4 0.8 37.4 5.5 33.3 4.6 3.2
Share of pre-tax loss of equity affiliates
with guaranteed debt - (3.5) (5.6) (8.6) - (9.3) (0.1)
Add, fixed charges 15.9 12.2 58.2 59.4 43.3 32.4 33.7
Add, amortization of capitalized interest 0.2 0.2 0.8 0.8 0.8 1.8 1.9
Subtract, interest capitalized - - (0.7) (1.1) - (0.7) -
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(17.7) 5.4 58.1 (8.4) 64.3 193.1 58.6
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Fixed charges:
Interest expense 12.2 8.3 40.6 39.9 35.9 17.3 15.6
Capitalized interest - - 0.7 1.1 - 0.7 -
Net amortization of debt discount and premium
and issuance expenses 0.3 0.2 1.8 0.8 0.4 0.4 0.4
Interest portion of rental expense (5) 1.5 1.7 6.9 8.5 7.0 7.0 10.7
Interest expense relating to guaranteed
debt of equity affiliates 1.9 2.0 8.2 9.1 - 7.0 7.0
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15.9 12.2 58.2 59.4 43.3 32.4 33.7
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Ratio of earnings to fixed charges --- --- --- --- 1.5x 6.0x 1.7x
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(1) Earnings for the three months ended March 31, 2003 were insufficient to
cover fixed charges by $33.6 million. Accordingly, such ratio is not
presented.
(2) Earnings for the three months ended March 31, 2002 were insufficient to
cover fixed charges by $6.8 million. Accordingly, such ratio is not
presented.
(3) Earnings in 2002 were insufficient to cover fixed charges by $0.1 million.
Accordingly, such ratio is not presented.
(4) Earnings in 2001 were insufficient to cover fixed charges by $67.8
million. Accordingly, such ratio is not presented.
(5) The interest factor represents approximately one-third of lease expense,
which management believes is representative of the interest component of
lease expense.