EX-12.1 4 ex121ratioofearningstofixe.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX12.1 RATIO OF EARNINGS TO FIXED CHARGES


Exhibit 12.1
AutoNation, Inc.
Statement Regarding Computation of Ratio of Earnings to Fixed Charges
($ in millions)


 
 
Year Ended December 31,
Earnings
 
2011
 
2010
 
2009
 
2008
 
2007
Income (loss) from continuing operations before income taxes
 
$
461.3

 
$
381.3

 
$
349.2

 
$
(1,401.5
)
 
$
450.8

Adjustment to exclude earnings from equity method investees
 
—

 
—

 
(0.1
)
 
(0.7
)
 
(0.8
)
Fixed charges
 
128.8

 
120.0

 
103.7

 
201.1

 
273.7

Distributions from equity method investees
 
—

 
—

 
1.3

 
0.3

 
1.0

Interest capitalized
 
(1.0
)
 
(1.2
)
 
(0.1
)
 
(0.8
)
 
(0.9
)
Earnings, as defined
 
$
589.1

 
$
500.1

 
$
454.0

 
$
(1,201.6
)
 
$
723.8

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Floorplan interest expense (a)
 
$
42.7

 
$
42.8

 
$
37.4

 
$
89.3

 
$
135.8

Other interest expense (b)
 
66.5

 
56.6

 
42.6

 
89.4

 
114.1

Capitalized interest costs
 
1.0

 
1.2

 
0.1


0.8


0.9

Interest component of rent expense
 
18.6

 
19.4

 
23.6

 
21.6

 
22.9

Total fixed charges

 
$
128.8

 
$
120.0

 
$
103.7

 
$
201.1

 
$
273.7

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
4.6

 
4.2

 
4.4

 
(c)

 
2.6


(a)
Includes floorplan interest expense associated with discontinued operations.
(b)
Includes amortization of debt issuance costs and other interest expense associated with discontinued operations.
(c)
In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $1.40 billion due to non-cash impairment charges of $1.74 billion.