EX-12.1 4 dex121.htm STATEMENT REGARDING COMPUTATION OF EARNINGS STATEMENT REGARDING COMPUTATION OF EARNINGS

Exhibit 12.1

Mohawk Industries, Inc.

Ratio of earnings to fixed charges-229.503(d) (in thousands)

 

     2004     2005     2006     2007     2008  

Fixed rent expense

   87,659     99,697     118,280     123,095     139,103  
                              

Principal

   58,442     66,465     78,853     82,063     92,735  

Interest

   29,217     33,232     39,427     41,032     46,368  
                              

total

   87,659     99,697     118,280     123,095     139,103  
                              

Fixed charges:

          

Portion of rent expense representative of interest

   29,217     33,232     39,427     41,032     46,368  

Capitalized interest

   3,197     6,000     7,477     4,446     6,419  

Interest expensed

   53,392     66,791     173,697     154,469     127,050  
                              

Total fixed charges (1)

   85,806     106,023     220,601     199,947     179,837  
                              

Earnings:

          

Earnings (loss) before income taxes

   580,791     602,133     676,311     604,117     (1,278,166 )

Fixed charges

   85,806     106,023     220,601     199,947     179,837  

Amortization of Capitalized interest

   2,973     3,593     4,202     4,395     5,043  

less:

          

Capitalized interest

   (3,197 )   (6,000 )   (7,477 )   (4,446 )   (6,419 )
                              

Total earnings

   666,373     705,749     893,637     804,013     (1,099,706 )
                              

Ratio of earnings to fixed charges

   7.7     6.6     4.0     4.0     *  

Insufficiency of earnings to cover fixed charges

   —       —       —       —       —    

 

(1) Earnings are defined as the sum of earnings before income taxes, fixed charges and amortization of capitalized interest less capitalized interest. Fixed charges are defined as interest expensed and capitalized plus interest within rent expense, which is estimated to be one-third of rent expense.
* Due to a loss resulting from impairment of goodwill and intangible assets in 2008 the ratio coverage was less than 1:1. The Company would have needed to generate additional earnings of $1,279,543 in 2008 to achieve a coverage ratio of 1:1.