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)
Three months ended
Years ended December 31, March 31,
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2000 2001 2002 2003 2004 2004 2005
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Fixed charges:
Total interest expense $ 30.6 $ 38.4 $ 35.4 $ 32.6 $ 36.7 $ 9.0 $ 11.6
Preferred stock dividends and accretion (1) 15.9 112.5 78.6 - - - -
Interest component of rent expense (2) 2.2 2.1 2.4 3.0 2.7 .7 .7
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Total fixed charges and preferred dividends 48.7 153.0 116.4 35.6 39.4 9.7 12.3
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Adjustments:
Income before income taxes and minority interest 123.0 128.2 63.2 82.6 64.8 17.1 30.0
Amortization of capitalized interest .5 .5 .5 .5 .5 .1 .1
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Total adjustments 123.5 128.7 63.7 83.1 65.3 17.2 30.1
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Total earnings available for fixed charges $ 172.2 $ 281.7 $ 180.1 $ 118.7 $ 104.7 $ 26.9 $ 42.4
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Ratio of earnings to combined fixed charges and
preferred dividends (3) 3.5 1.8 1.5 3.3 2.7 2.8 3.4
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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 carryforwards 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.
(3) Computed as (y) total earnings available for fixed charges and preferred
dividends to (z) total fixed charges and preferred dividends.