EX-12.1 7 d224427dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

OWENS CORNING AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth our ratio of earnings to fixed charges for the periods indicated

 

     Six Months Ended
June 30, 2016
     Twelve Months Ended
December 31,
 
            2015      2014      2013      2012   2011  

Ratio of Earnings to Fixed Charges

     5.0         4.1         2.5         2.8       (a)     3.3   

The computation of the ratio of earnings to fixed charges is as follows (in millions):

 

     Six Months Ended
June 30, 2016
    Twelve Months ended
December 31,
 
           2015     2014     2013     2012     2011  

Earnings:

            

Earnings from continuing operations before taxes

   $ 304        453        232        273        (40     353   

Fixed charges (see below)

     75        143        157        153        158        151   

Amortization of capitalized interest

     5        9        8        7        6        4   

Capitalized interest

     (9     (14     (10     (8     (13     (13

Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges

     —          —          —          —          —          —     

Earnings, as adjusted

   $ 375        591        387        425        111        495   

Fixed charges:

            

Portion of rents representative of interest expense(b)

   $ 13        29        30        28        26        24   

Interest on indebtedness, including amortization of deferred loan costs(c)

     53        100        117        117        119        114   

Capitalized interest

     9        14        10        8        13        13   

Total fixed charges

   $ 75      $ 143      $ 157      $ 153      $ 158      $ 151   

 

(a) In 2012, the ratio of earnings to fixed charges was less than 1.0. During 2012, the Company needed to generate an additional $47 million of earnings from continuing operations before taxes to attain a 1.0 ratio of earnings to fixed charges.
(b) The Company estimates that 33% of its rental costs represent interest expense. This factor has been applied to all periods presented in the table above.
(c) Interest on indebtedness excludes interest income, gain or loss on extinguishment of debt, and interest associated with uncertain tax positions, which is included in Income tax expense in the Consolidated Statements of Earnings.