EXHIBIT 12.1
Kronos International, Inc. and Subsidiaries
Statements of Computation of Ratio of Earnings to Combined Fixed Charges
(Unaudited)
(In millions, except ratios)
Years ended December 31,
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2001 2002 2003 2004 2005
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Fixed charges:
Total interest expense $ 38.4 $ 35.4 $ 32.6 $ 36.7 $ 43.9
Preferred stock dividends and
accretion(1) 112.5 78.6 - - -
Interest component of rent expense(2) 2.1 2.4 3.0 2.7 2.8
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Total fixed charges 153.0 116.4 35.6 39.4 46.7
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Adjustments:
Income before income taxes and minority
interest 128.2 63.2 82.6 64.8 118.9
Amortization of capitalized interest .5 .5 .5 .5 .4
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Total adjustments 128.7 63.7 83.1 65.3 119.3
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Total earnings available for fixed
charges $ 281.7 $ 180.1 $ 118.7 $ 104.7 $ 166.0
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Ratio of earnings to combined fixed charges 1.8 1.5 3.3 2.7 3.6
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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.