EX-12.1 3 d587536dex121.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:

 

     Three Months
Ended
March 31,
2018
     Twelve Months Ended
December 31,
 
      2017      2016      2015      2014      2013  

Ratio of Earnings to Fixed Charges

     3.1        4.4        4.8        4.1        2.5        2.8  

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

 

     Three Months
Ended
March 31,
2018
    Twelve Months Ended
December 31,
 
     2017     2016     2015     2014     2013  

Earnings:

            

Earnings from continuing operations before taxes

     103       559       590       453       232       273  

Fixed charges (see below)

     48       164       154       143       157       153  

Amortization of capitalized interest

     3       11       11       9       8       7  

Capitalized interest

     (4     (13     (16     (14     (10     (8

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

     —         —         —         —         —         —    

Earnings, as adjusted

     150       721       739       591       387       425  

Fixed charges:

            

Portion of rents representative of interest expense(a)

     8       29       26       29       30       28  

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

     36       122       112       100       117       117  

Capitalized interest

     4       13       16       14       10       8  

Total fixed charges

     $48     $ 164     $ 154     $ 143     $ 157     $ 153  

 

(a) 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.
(b) Interest on indebtedness excludes interest income, gain or loss on certain derivative financial instruments, 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.