EX-12 2 a08-25802_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 Sept. 30,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

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

 

$

714.5

 

$

452.4

 

Less:

Equity earnings

 

(36.7

)

(22.3

)

Add:

Total fixed charges deducted from earnings

 

205.5

 

265.5

 

 

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

 

10.5

 

4.2

 

 

Dividends received from equity investees

 

21.2

 

13.9

 

 

 

 

 

 

 

 

 

Earnings available for payment of fixed charges

 

$

915.0

 

$

713.7

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

193.8

 

$

253.6

 

 

Portion of operating lease rental deemed to be interest

 

5.7

 

5.3

 

 

Amortization of deferred financing costs and debt discount expense

 

6.0

 

6.6

 

 

 

 

 

 

 

 

 

Total fixed charges deducted from earnings and fixed charges

 

205.5

 

265.5

 

 

 

 

 

 

 

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

 

7.2

 

22.2

 

 

 

 

 

 

 

Combined fixed charges and preferred stock dividends

 

$

212.7

 

$

287.7

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

4.5

 

2.7

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

4.3

 

2.5