EX-12 5 exhibit12.htm EXHIBIT 12
EXHIBIT 12

Crown Cork & Seal Company, Inc.

COMPUTATION OF RATIO OF EARNINGS TO
FIXED CHARGES

Twelve months
ended
12/31/2001
Twelve months
ended
12/31/2000
Twelve months
ended
12/31/1999
Twelve months
ended
12/31/1998
Twelve months
ended
12/31/1997

 
Computation of Earnings:            
 
Income/(loss) before income taxes and cumulative 
 
  effect of a change in accounting  ($444 ) ($217 ) $309   $180   $457  
 
Adjustments to income: 
 
              Add: Distributed income from less than 
                    50% owned companies  2   4   4   7   2  
 
              Add: Portion of rent expense representative 
                    of interest expense (1)  11   12   10   6   7  
 
              Add: Interest incurred net of amounts 
                    capitalized  455   393   367   408   379  
 
              Add: Amortization of interest previously 
                    capitalized  1   (1 ) (1 ) 1   3  
 
              Add: Amortization of debt issue costs  2   3   6   2   2  

                                Earnings  $27   $194   $695   $604   $850  

 
Computation of Fixed Charges: 
 
              Interest incurred  $456   $394   $368   $414   $385  
 
              Amortization of debt issue costs  2   3   6   2   2  
 
              Portion of rental expense representative 
                   of interest (1)  11   12   10   6   7  

 
              Total fixed charges  469   409   384   422   394  

 
              Preferred stock dividend requirements  3   23   29   35  

 
              Combined fixed charges and preferred stock
                   dividends
  $469   $412   $407   $451   $429  

 
              Ratio of earnings to fixed charges (2)  (3 ) (3 ) 1.8 X   1.4 X   2.2 X  

 
              Ratio of earnings to combined fixed charges  
                   and preferred stock dividends (2)  (3 ) (3 ) 1.7 X   1.3 X   2.0 X  

(1)

One-third of net rent expense is the portion deemed representative of the interest factor.


(2)

After charges in millions for (i) restructuring of $48, $52, $(7), $179 and $67 for 2001, 2000, 1999, 1998 and 1997, respectively, (ii) asbestos of $51, $255, $163 and $125 for 2001, 2000, 1999 and 1998, respectively and (iii) asset impairments of $215 and $26 for 2001 and 2000, respectively.


(3)

Earnings did not cover fixed charges by $442 in 2001 and $218 for 2000.