EX-12 2 d356262dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

Avery Dennison Corporation

AVERY DENNISON CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Three Months Ended     Six Months Ended  

(Dollars in millions)

    June 30, 2012     July 2, 2011     June 30, 2012     July 2, 2011  

Earnings:

         

Income from continuing operations before taxes

    $ 77.0      $ 87.1      $ 142.1      $ 149.7   

Add: Fixed charges from continuing operations (1)

      26.9        26.3        53.6        52.7   

Amortization of capitalized interest

      0.9        0.9        1.8        1.8   

Less: Capitalized interest

      (0.9 )      (1.2 )      (1.8 )      (2.4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 103.9      $ 113.1      $ 195.7      $ 201.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges from continuing operations: (1)

         

Interest expense

    $ 18.6      $ 17.7      $ 36.9      $ 35.4   

Capitalized interest

      0.9        1.2        1.8        2.4   

Interest portion of leases

      7.4        7.4        14.9        14.9   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 26.9      $ 26.3      $ 53.6      $ 52.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges

      3.9        4.3        3.7        3.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

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