Exhibit No. 12
Armstrong World Industries, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(dollar amounts in millions)
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Determination of Earnings | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 220.5 | $ | 193.8 | $ | 73.1 | $ | 93.5 | $ | 196.1 | ||||||||||
Equity earnings from joint venture | (55.9 | ) | (54.9 | ) | (45.0 | ) | (40.0 | ) | (56.0 | ) | ||||||||||
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Earnings from continuing operations before income taxes and equity earnings | $ | 164.6 | $ | 138.9 | $ | 28.1 | $ | 53.5 | $ | 140.1 | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 63.1 | 55.6 | 27.0 | 23.7 | 36.6 | |||||||||||||||
Distributed income from equity affiliates (1) | — | — | — | — | 61.0 | |||||||||||||||
Amortization of capitalized interest | 0.1 | — | — | — | — | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (3.6 | ) | (1.4 | ) | (0.2 | ) | (0.3 | ) | — | |||||||||||
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Total earnings as defined | $ | 224.2 | $ | 193.1 | $ | 54.9 | $ | 76.9 | $ | 237.7 | ||||||||||
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Fixed charges | ||||||||||||||||||||
Interest expense | $ | 53.7 | $ | 48.5 | $ | 21.2 | $ | 17.7 | $ | 30.8 | ||||||||||
Capitalized interest | 3.6 | 1.4 | 0.2 | 0.3 | — | |||||||||||||||
Estimate of interest included in rent expense (2) | 5.8 | 5.7 | 5.6 | 5.7 | 5.8 | |||||||||||||||
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Total fixed charges | $ | 63.1 | $ | 55.6 | $ | 27.0 | $ | 23.7 | $ | 36.6 | ||||||||||
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Ratio of Earnings to Fixed Charges | 3.6 | 3.5 | 2.0 | 3.2 | 6.5 | |||||||||||||||
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(1) | – Includes only return on investment, not return of investment |
(2) | – One-third of rental expense is considered to be representative of the interest factor in rental expense. |