EX-12 5 a2074786zex-12.txt EXHIBIT 12 EXHIBIT 12--PAGE 1 OF 2 OWENS-ILLINOIS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (MILLIONS OF DOLLARS, EXCEPT RATIOS)
YEARS ENDED DECEMBER 31, ------------------------------ 2001 2000 1999 -------- -------- -------- Earnings (loss) before income taxes, minority share owners' interests, and extraordinary items........................ $ 667.2 $(391.6) $ 497.8 Less: Equity earnings....................................... (19.4) (19.8) (22.3) Add: Total fixed charges deducted from earnings............. 448.4 499.2 452.4 Proportional share of pre-tax earnings of 50% owned associates............................................ 10.4 11.0 10.6 Dividends received from less than 50% owned associates............................................ 9.9 14.5 9.8 -------- ------- ------- Earnings available for payment of fixed charges....... $1,116.5 $ 113.3 $ 948.3 ======== ======= ======= Fixed charges (including the Company's proportional share of 50% owned associates): Interest expense.......................................... $ 414.2 $ 476.6 $ 417.0 Portion of operating lease rental deemed to be interest... 14.3 12.5 26.5 Amortization of deferred financing costs and debt discount expense................................................... 19.9 10.1 8.9 -------- ------- ------- Total fixed charges deducted from earnings and total fixed charges........................................... 448.4 499.2 452.4 Preferred stock dividends (increased to assumed pre-tax amount)................................................... 36.7 21.7 35.5 -------- ------- ------- Combined fixed charges and preferred stock dividends........ $ 485.1 $ 520.9 $ 487.9 ======== ======= ======= Ratio of earnings to fixed charges.......................... 2.5 2.1 Deficiency of earnings available to cover fixed charges..... $ 385.9 Ratio of earnings to combined fixed charges and preferred stock dividends........................................... 2.3 1.9 Deficiency of earnings available to cover combined fixed charges and preferred stock dividends..................... $ 407.6
E-1 EXHIBIT 12--PAGE 2 OF 2 OWENS-ILLINOIS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (MILLIONS OF DOLLARS, EXCEPT RATIOS)
YEARS ENDED DECEMBER 31, --------------------------------- PRO FORMA AS ADJUSTED FOR BTR PACKAGING ACQUISITION 1998 1998 1997 -------- ----------- -------- Earnings before income taxes, minority share owners' interests, and extraordinary items........................ $ 209.0 $ 256.2 $ 452.3 Less: Equity earnings....................................... (16.0) (16.0) (17.9) Add: Total fixed charges deducted from earnings............. 404.8 459.6 324.1 Proportional share of pre-tax earnings of 50% owned associates................................................ 7.2 7.2 2.8 Dividends received from less than 50% owned associates.... 6.6 6.6 4.8 ------- ------- ------- Earnings available for payment of fixed charges......... $ 611.6 $ 713.6 $ 766.1 ======= ======= ======= Fixed charges (including the Company's proportional share of 50% owned associates): Interest expense.......................................... $ 372.6 $ 422.9 $ 298.7 Portion of operating lease rental deemed to be interest... 24.8 25.9 21.3 Amortization of deferred financing costs and debt discount expense................................................... 7.4 10.8 4.1 ------- ------- ------- Total fixed charges deducted from earnings and total fixed charges........................................... 404.8 459.6 324.1 Preferred stock dividends (increased to assumed pre-tax amount)................................................... 21.3 33.6 2.2 ------- ------- ------- Combined fixed charges and preferred stock dividends........ $ 426.1 $ 493.2 $ 326.3 ======= ======= ======= Ratio of earnings to fixed charges.......................... 1.5 1.6 2.4 Ratio of earnings to combined fixed charges and preferred stock dividends........................................... 1.4 1.4 2.3
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