EX-12 2 dex12.htm COMPUTATION OF RATIO OF EARNINGS Computation of Ratio of Earnings

EXHIBIT 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth Silgan Holdings Inc.’s computation of its ratio of earnings to fixed charges for the periods indicated.

 

     Years Ended December 31,
     2005(a)    2004(a)    2003(a)    2002(a)    2001
     (Dollars in thousands)

Earnings before fixed charges:

              

Income before income taxes and equity
in losses of affiliates

   $ 148,389    $ 142,359    $ 70,058    $ 93,168    $ 76,127

Interest and other debt expense

     60,616      57,222      98,034      74,772      81,192

Interest portion of rental expense

     1,268      893      932      747      1,146
                                  

Earnings before fixed charges

   $ 210,273    $ 200,474    $ 169,024    $ 168,687    $ 158,465
                                  

Fixed charges:

              

Interest and other debt expense

   $ 60,616    $ 57,222    $ 98,034    $ 74,772    $ 81,192

Interest portion of rental expense

     1,268      893      932      747      1,146

Capitalized interest

     1,165      679      993      1,358      1,571
                                  

Total fixed charges

   $ 63,049    $ 58,794    $ 99,959    $ 76,877    $ 83,909
                                  

Ratio of earnings to fixed charges

     3.34      3.41      1.69      2.19      1.89

(a) Effective January 1, 2003, we adopted Statement of Financial Accounting Standards, or SFAS, No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections.” Among other provisions, SFAS No. 145 rescinds SFAS No. 4, “Reporting Gains and Losses from Extinguishment of Debt,” such that gains or losses from the extinguishment of our debt will no longer be classified as extraordinary items. Upon adoption in 2003, the extraordinary item for loss on early extinguishment of debt of $1.0 million before income taxes recorded for 2002 was reclassified to loss on early extinguishment of debt included in interest and other debt expense in our Consolidated Statements of Income. In addition, interest and other debt expense in 2005, 2004 and 2003 includes a loss on early extinguishment of debt of $11.2 million, $1.6 million and $19.2 million, respectively.