EXHIBIT 12.1
Kronos International, Inc. and Subsidiaries
Statements of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(Unaudited)
(In millions, except ratios)
Years ended December 31,
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2000 2001 2002 2003 2004
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Fixed charges:
Total interest expense $ 30.6 $ 38.4 $ 35.4 $ 32.6 $ 36.7
Preferred stock dividends and accretion (1) 15.9 112.5 78.6 - -
Interest component of rent expense (2) 2.2 2.1 2.1 3.0 2.7
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Total fixed charges 48.7 153.0 116.1 35.6 39.4
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Adjustments:
Income before income taxes and minority interest 123.0 128.2 63.1 82.6 64.8
Amortization of capitalized interest .5 .5 .5 .5 .5
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Total adjustments 123.5 128.7 63.6 83.1 65.3
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Total earnings available for fixed
charges $ 172.2 $ 281.7 $ 179.7 $ 118.7 $ 104.7
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Ratio of earnings to fixed charges 3.5 1.8 1.5 3.3 2.7
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(1) There is no adjustment to the amount shown on the Company's consolidated
statements of income for dividends and accretion on redeemable preferred
stock to obtain an equivalent pre-tax amount. During the periods in which
the redeemable preferred stock was outstanding, Kronos International, Inc.
had a significant amount of net operating loss carryfowards in Germany, the
benefit of which had not been recognized under the "more-likely-than-not"
recognition criteria of accounting principles generally accepted in the
United States of America. Accordingly, the equivalent pre-tax amount for
such dividends and accretion would not differ from the amount of such
dividends and accretion.
(2) The interest expense component of rental expense is calculated as one-third
of the aggregate rent expense for each year, which is a reasonable
approximation of the interest factor.