EX-12 2 g11999exv12.htm EX-12 COMP. OF RATIO OF EARNINGS EX-12 COMP. OF RATIO OF EARNINGS
 

Exhibit 12
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

For the Years Ended December 31
Amounts in Thousands
                                         
    2007     2006     2005     2004     2003  
 
Fixed charges:
                                       
Interest expense before capitalization credits (1)
  $ 53,348     $ 31,310     $ 39,080     $ 42,260     $ 55,345  
Amortization of financing costs
    249       363       711       611       291  
One-third of rental expense
    27,358       27,240       22,520       16,553       15,140  
 
                             
Total fixed charges
  $ 80,955     $ 58,913     $ 62,311     $ 59,424     $ 70,776  
 
                             
 
                                       
Earnings from continuing operations before income taxes
  $ 667,502     $ 703,461     $ 480,237     $ 375,566     $ 335,080  
Minority interest in earnings of a consolidated subsidiary
    151                          
Fixed charges
    80,955       58,913       62,311       59,424       70,776  
Capitalized interest credits
    (5,130 )     (5,000 )     (1,934 )     (1,980 )     (2,116 )
Amortization of capitalized interest
    2,777       1,241       1,054       839       624  
 
                             
Earnings before income taxes as adjusted
  $ 746,255     $ 758,615     $ 541,668     $ 433,849     $ 404,364  
 
                             
 
                                       
Ratio of earnings to fixed charges
    9.2       12.9       8.7       7.3       5.7  
 
(1)   Does not include interest cost accrued on FIN 48 (FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109”) liabilities, which are included in our income tax provision for financial statement presentation purposes. The decision to exclude FIN 48 interest cost is primarily based on the fact that such accrued interest is not a current or predictable cash flow item.