EX-12.(A) 3 dex12a.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges
AIRBORNE, INC.
 
RATIO OF EARNINGS TO FIXED CHARGES
 
EXHIBIT 12.(a)
 
(Dollars in thousands)
 
    
Three Months Ended September 30,
  
    
2002
     
2001
  
EARNINGS:
                  
Earnings (loss) before taxes
   
$
(4,808
)
   
$
3,271
 
Fixed Charges
   
 
13,155
 
   
 
10,531
 
Less: Capitalized interest expenses
   
 
(587
)
   
 
(450
)
    
  
TOTAL EARNINGS
   
$
7,760
 
   
$
13,352
 
    
  
CALCULATION OF FIXED CHARGES:
                  
Net interest expense
   
$
7,650
 
   
$
4,924
 
Add: Capitalized interest expense
   
 
587
 
   
 
450
 
Add: Interest income
   
 
1,458
 
   
 
560
 
    
  
GROSS INTEREST EXPENSE
   
 
9,695
 
   
 
5,934
 
DISCOUNTS ON SALES OF RECEIVABLES
   
 
738
 
   
 
2,007
 
AMORTIZATION OF DEBT EXPENSE
   
 
280
 
   
 
265
 
RENTAL EXPENSE:
                  
Total
   
 
24,423
 
   
 
23,247
 
Factor
   
 
10
%
   
 
10
%
    
  
Net “interest” component
   
 
2,442
 
   
 
2,325
 
TOTAL FIXED CHARGES
   
$
13,155
 
   
$
10,531
 
    
  
RATIO OF EARNINGS TO FIXED CHARGES
   
 
—  
 
   
 
1.27