EX-12.1 8 d413332dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

OWENS CORNING AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Three Months
Ended

March 31,
2017
     Twelve Months Ended
December 31,
 
            2016      2015      2014      2013      2012  

Ratio of Earnings to Fixed Charges

     4.6        4.8        4.1        2.5        2.8        (a

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

 

     Three Months
Ended

March 31,
2017
    Twelve Months Ended
December 31,
 
           2016     2015     2014     2013     2012  

Earnings:

            

Earnings from continuing operations before taxes

   $ 144       590       453       232       273       (40

Fixed charges (see below)

     40       154       143       157       153       158  

Amortization of capitalized interest

     3       11       9       8       7       6  

Capitalized interest

     (3     (16     (14     (10     (8     (13

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

     —         —         —         —         —         —    

Earnings, as adjusted

   $ 184       739       591       387       425       111  

Fixed charges:

            

Portion of rents representative of interest expense(b)

   $ 7       26       29       30       28       26  

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

     30       112       100       117       117       119  

Capitalized interest

     3       16       14       10       8       13  

Total fixed charges

   $ 40     $ 154     $ 143     $ 157     $ 153     $ 158  

 

(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.