EX-12 2 d250565dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Avery Dennison Corporation

 

Exhibit 12

AVERY DENNISON CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

    Three Months Ended       Nine Months Ended
(Dollars in millions)   October 1, 2011   October 2, 2010        October 1, 2011   October 2, 2010

Earnings:

                 

Income before taxes

    $     70.9       $ 77.0         $ 249.1       $ 279.7  

Add: Fixed charges (1)

      28.4         29.2           84.6         88.2  

Amortization of capitalized interest

      .9         .9           2.7         2.6  

Less: Capitalized interest

      (1.4 )       (.9 )             (3.8 )       (2.9 )
      $ 98.8       $     106.2             $     332.6       $     367.6  

Fixed charges: (1)

                 

Interest expense

    $ 17.9       $ 19.1         $ 53.5       $ 57.7  

Capitalized interest

      1.4         .9           3.8         2.9  

Interest portion of leases

      9.1         9.2               27.3         27.6  
      $ 28.4       $ 29.2             $ 84.6       $ 88.2  

Ratio of Earnings to Fixed Charges

      3.5         3.6               3.9         4.2  

 

(1)

The ratios of earnings to fixed charges were computed by dividing earnings by fixed charges. For this purpose, “earnings” consist of income before taxes plus fixed charges and amortization of capitalized interest, less capitalized interest. “Fixed charges” consist of interest expense, capitalized interest and the portion of rent expense (estimated to be 35%) on operating leases deemed representative of interest.