EX-12 4 d875160dex12.htm EX-12 EX-12

Exhibit No. 12

Armstrong World Industries, Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(dollar amounts in millions)

 

     2014     2013     2012     2011     2010  

Determination of Earnings

          

Earnings from continuing operations before income taxes

   $ 185.2      $ 198.7      $ 234.6      $ 222.9      $ 98.4   

Equity earnings from joint venture

     (65.1     (59.4     (55.9     (54.9     (45.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations before income taxes and equity earnings

$ 120.1    $ 139.3    $ 178.7    $ 168.0    $ 53.4   

Add:

Fixed charges

  55.7      78.3      63.0      55.0      26.9   

Distributed income from equity affiliates (1)

  —        —        —        —        —     

Amortization of capitalized interest

  0.2      0.1      0.1      —        —     

Less:

Capitalized interest

  (2.6   (2.8   (3.6   (1.4   (0.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings as defined

$ 173.4    $ 214.9    $ 238.2    $ 221.6    $ 80.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

Interest expense

$ 46.0    $ 68.7    $ 53.6    $ 48.4    $ 21.2   

Capitalized interest

  2.6      2.8      3.6      1.4      0.2   

Estimate of interest included in rent expense (2)

  7.1      6.8      5.8      5.2      5.5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

$ 55.7    $ 78.3    $ 63.0    $ 55.0    $ 26.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges

  3.1      2.7      3.8      4.0      3.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) – Includes only return on investment, not return of investment
(2) – One-third of rental expense is considered to be representative of the interest factor in rental expense.