EX-12.1 3 d466940dex121.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:

 

     Nine Months Ended
September 30, 2017
    Twelve Months Ended December 31,  
         2016         015         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):  
     Nine Months Ended
September 30, 2017
    Twelve Months Ended December 31,  
       2016     2015     2014     2013     2012  

Earnings:

            

Earnings from continuing operations before taxes

   $ 435       590       453       232       273       (40

Fixed charges (see below)

     121       154       143       157       153       158  

Amortization of capitalized interest

     9       11       9       8       7       6  

Capitalized interest

     (9     (16     (14     (10     (8     (13

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

     —         —         —         —         —         —    

Earnings, as adjusted

   $ 556       739       591       387       425       111  

Fixed charges:

            

Portion of rents representative of interest expense(b)

   $ 21       26       29       30       28       26  

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

     91       112       100       117       117       119  

Capitalized interest

     9       16       14       10       8       13  

Total fixed charges

   $ 121     $ 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.