EX-12 3 a2027635zex-12.txt EXHIBIT 12 EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES Years ended December 31, 1995, 1996, 1997, 1998 and 1999 and nine months ended October 1, 2000 (IN MILLIONS, EXCEPT RATIOS)
NINE MONTHS ENDED YEAR ENDED DECEMBER 31, OCTOBER 1, 1995 1996 1997 1998 1999 2000 ------------ ----------- ----------- ------------ ----------- ------------ Earnings/(loss): Earnings/(loss) before income tax expense/(benefit) per consolidated statement of earnings $(201.4) $31.2 $(191.9) $(38.9) $ 13.4 $ 67.1 Add: Interest expense 52.1 47.4 47.8 57.6 77.4 62.8 Portion of rent representative of an interest factor 11.7 9.3 10.7 10.5 10.2 7.6 ------------ ----------- ----------- ------------ ----------- ------------ Adjusted earnings/(loss) before income tax benefit/ (expense) $(137.6) $87.9 $(133.4) $ 29.2 $101.0 $137.5 ============ =========== =========== ============ =========== ============ Fixed charges: Interest expense $52.1 $47.4 $ 47.8 $ 57.6 $ 77.4 $ 62.8 Portion of rent representative of an interest factor 11.7 9.3 10.7 10.5 10.2 7.6 Capitalized interest 4.8 5.1 2.6 2.2 3.0 1.7 ------------ ----------- ----------- ------------ ----------- ------------ Total fixed charges $68.6 $61.8 $ 61.1 $ 70.3 $ 90.6 $ 72.1 ============ =========== =========== ============ =========== ============ Ratio of earnings to fixed charges N/A(a) 1.4(b) N/A(c) .4(d) 1.1 1.9 ============ =========== =========== ============ =========== =============
(a) Earnings were insufficient to cover fixed charges by $206.2 million after giving effect to the pre-tax expense for restructuring and other charges of $247.0 million. Excluding the pre-tax restructuring and other charges, the ratio of earnings to fixed charges was 1.6. (b) In 1996, the Company recorded a pre-tax expense for restructuring and other special charges of $150.0 million ($7.0 million of which was recorded in cost of goods sold). Excluding the pre-tax restructuring and other special charges, the ratio of earnings to fixed charges was 3.8. (c) Earnings were insufficient to cover fixed charges by $194.5 million after giving effect to the pre-tax expense for restructuring and other charges of $340.0 million ($16.5 million was recorded in cost of goods sold). Excluding the pre-tax restructuring and other charges, the ratio of earnings to fixed charges was 3.4. (d) Earnings were insufficient to cover fixed charges by $41.1 million after giving effect to the pre-tax expense for restructuring and other charges of $50.0 million. Excluding the pre-tax restructuring and other charges, the ratio of earnings to fixed charges was 1.1.