EX-12.1 4 l02992aexv12w1.txt EXHIBIT 12.1 . . . Exhibit 12.1 FOR THE YEAR ENDED MAY 31,
1999 2000 2001 2002(1) 2003(2) ---- ---- ---- ------- ------- Ratio of Earnings to Fixed Charges 4.75 2.19 2.33 4.03 2.28 Income Before Income Tax 159,597 71,761 101,487 154,124 47,853 -------------- ------------ ------------ ------------- ------------ Fixed Charges: Interest Expense 37,661 54,436 68,885 42,558 28,149 Amortized debt expense 197 321 617 639 1,044 Operating lease, estimated interest (one-third of net rental expense) 4,645 5,728 6,841 7,700 8,100 -------------- ------------ ------------ ------------- ------------ Total Fixed Charges 42,503 60,485 76,343 50,897 37,293 -------------- ------------ ------------ ------------- ------------
(1) RPM adopted Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible assets," effective June 1, 2001, which resulted in a reduction of amortization expense for the fiscal year ended May 31, 2002 by approximately $24 million. Had RPM not adopted the required accounting change, the ratio of earnings to fixed charges would have been 3.56 for the fiscal year ended May 31, 2002. (2) Excluding the impact of the $140 million asbestos charge, the ratio of earnings to fixed charges would have been 6.04 for the fiscal year ended May 31, 2003. The effect of removing the impact of SFAS No. 142 from published results is as follows: 5/31/02 ------------ Published Pretax Income 154,124 Reverse: SFAS No. 142 Adjustments (23,810) ------------ Adjusted Pretax Income 130,314 Fixed Charges (per above) 50,897 ------------ Pretax plus Fixed Charges 181,211 Ratio: Earnings to fixed charges, net of SFAS No. 142 3.56 ------------ The effect of removing the impact of the $140 Million asbestos charge from published results is as follows: 5/31/03 ------------ Published Pretax Income 47,853 Reverse: Asbestos Charge 140,000 ------------ Adjusted Pretax Income 187,853 Fixed Charges (per above) 37,293 ------------ Pretax plus Fixed Charges 225,146 Ratio: Earnings to fixed charges without asbestos charge 6.04 ------------