EX-12 2 a06-22071_1ex12.htm EX-12

Exhibit 12

OWENS-ILLINOIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)

 

 

Nine months ended September 30,

 

 

 

2006

 

2005

 

Earnings from continuing operations before income taxes, and minority share owners’ interests

 

$

214.1

 

$

389.9

 

Less:

Equity earnings

 

(21.2

)

(17.9

)

Add:

Total fixed charges deducted from earnings

 

379.6

 

358.1

 

 

Proportional share of pre-tax earnings of 50% owned associates

 

8.1

 

7.1

 

 

Dividends received from equity investees

 

39.3

 

6.5

 

 

Earnings available for payment of fixed charges

 

$

619.9

 

$

743.7

 

 

 

 

 

 

 

 

Fixed charges (including the Company’s proportional share of 50% owned associates):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

361.5

 

$

336.2

 

 

Portion of operating lease rental deemed to be interest

 

7.6

 

9.7

 

 

Amortization of deferred financing costs and debt discount expense

 

10.5

 

12.2

 

 

Total fixed charges deducted from earnings and fixed charges

 

379.6

 

358.1

 

 

 

 

 

 

 

 

Preferred stock dividends (increased to assumed pre-tax amount)

 

31.1

 

23.0

 

 

 

 

 

 

 

 

Combined fixed charges and preferred stock dividends

 

$

410.7

 

$

381.1

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

1.6

 

2.1

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

1.5

 

2.0