EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Prepared by R.R. Donnelley Financial -- Computation of Ratio of Earnings to Fixed Charges
EXHIBIT 12
 
DOLE FOOD COMPANY, INC.
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except for ratio data)
 
   
Quarters ended

  
Fiscal Years Ended

   
March 23, 2002

  
March 24, 2001

  
December 29, 2001

    
December 30, 2000

 
January 1, 2000

 
January 2, 1999

 
January 3, 1998

Income/(loss) from continuing operations before income taxes(a)
 
82,764
  
44,457
  
(7,730
)
  
55,637
 
19,789
 
3,075
 
168,126
Add Fixed Charges:
                                
Interest expense
 
14,303
  
18,245
  
69,722
 
  
89,242
 
84,508
 
63,599
 
59,707
Capitalized interest
 
—  
  
—  
  
—  
 
  
—  
 
—  
 
—  
 
—  
Amortization of debt expense and discounts
 
228
  
228
  
986
 
  
1,203
 
1,357
 
1,038
 
938
Interest factor of rental expense(b)
 
8,918
  
10,578
  
42,042
 
  
49,187
 
55,253
 
50,135
 
60,563
   
  
  

  
 
 
 
Total fixed charges
 
23,449
  
29,051
  
112,750
 
  
139,632
 
141,118
 
114,772
 
121,208
Total adjusted earnings
 
106,213
  
73,508
  
105,020
 
  
195,269
 
160,907
 
117,847
 
289,334
Ratio of earnings to fixed charges(c)
 
4.53
  
2.53
  
0.93
 
  
1.40
 
1.14
 
1.03
 
2.39

(a)
 
Included in earnings for 2001, 2000, 1999 and 1998 were pretax special charges of $133 million, $46 million, $48 million and $98 million, respectively. Included in earnings for 2001, 2000 and 1999 were pretax special gains of $8 million, $52 million and $20 million, respectively. Excluding these special items, the ratios would have been 2.04, 1.36, 1.34 and 1.88 in 2001, 2000, 1999 and 1998, respectively.
(b)
 
The interest factor of rental expense is determined by dividing total rental expense for the period by three.
(c)
 
Due to the company’s loss from continuing operations in 2001, the ratio coverage was less than 1:1. The company must generate additional earnings of $7,730 to achieve a coverage ratio of 1:1.
(d)
 
The company is guarantor of indebtedness of certain suppliers integral to its operations. These guarantees totaled approximately $69 million at March 23, 2002. If the company were required to fulfill these contingent obligations, the interest that would be incurred would be immaterial to the ratio of earnings to fixed charges.