EX-12 10 c12486exv12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

EXHIBIT 12
 
TENNECO INC. AND CONSOLIDATED SUBSIDIARIES
 
COMBINED WITH 50% OWNED UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
                                         
    Years Ended December 31,  
    2006     2005     2004     2003     2002  
    (Dollars in Millions)  
 
Income before cumulative effect of change in accounting principle
  $ 51     $ 58     $ 15     $ 26     $ 31  
Add:
                                       
Interest expense
    136       130       179       149       141  
Portion of rentals representative of the interest factor
    12       12       11       11       11  
Income tax expense (benefit) and other taxes on income
    3       25       (24 )     (7 )     (7 )
Minority interest
    6       2       4       6       4  
Amortization of interest capitalized
    3       2       1       1       1  
Undistributed (earnings) losses of affiliated companies in which in less than a 50% voting interest is owned
    (3 )     (1 )     —       2       2  
                                         
Earnings as defined
  $ 208     $ 228     $ 186     $ 188     $ 183  
                                         
Interest expense
  $ 136     $ 130     $ 179     $ 149     $ 141  
Interest capitalized
    6       3       2       4       4  
Portion of rentals representative of the interest factor
    12       12       11       11       11  
                                         
Fixed charges as defined
  $ 154     $ 145     $ 192     $ 164     $ 156  
                                         
Ratio of earnings to fixed charges
    1.35       1.57       0.97       1.15       1.17  
                                         
 
 
NOTE:  Earnings were inadequate to cover fixed charges by $6 million for the year ended December 31, 2004.