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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2001 2002 2003 2004 2005 2005 2006
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Fixed charges:
Total interest expense $ 38.4 $ 35.4 $ 32.6 $ 36.7 $ 43.9 $ 11.6 $ 10.3
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 .7 .7
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Total fixed charges and preferred dividends 153.0 116.4 35.6 39.4 46.7 12.3 11.0
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Adjustments:
Income before income taxes and minority interest 128.2 63.2 82.6 64.8 118.9 30.0 20.5
Amortization of capitalized interest .5 .5 .5 .5 .4 .1 .1
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Total adjustments 128.7 63.7 83.1 65.3 119.3 30.1 20.6
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Total earnings available for fixed charges $ 281.7 $ 180.1 $ 118.7 $ 104.7 $ 166.0 $ 42.4 $ 31.6
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Ratio of earnings to combined fixed charges and
preferred dividends (3) 1.8 1.5 3.3 2.7 3.6 3.4 2.9
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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.