EX-12.1 7 d426309dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Mohawk Industries, Inc.

Statement Regarding Computation of Ratio of Earnings to Fixed Charges

(In Thousands, Except Ratio Data)

 

     Year Ended December 31,        
     2012     2013     2014     2015(3)     2016     Six Months
Ended
July 1, 2017		  

Fixed charges:

             

Portion of rent expense representative of interest(1)

      34,566       38,825       40,226       38,888       41,701       22,345  

Capitalized interest

      5,009       8,157       9,202       7,091       5,955       3,622  

Interest expensed

      74,713       92,246       98,207       71,086       40,547       16,595  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges (2)

    $ 114,288       139,228       147,635       117,065       88,203       42,562  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (2) :

             

Earnings from continuing operations before income taxes

      304,492       445,571       663,891       748,861       1,241,125       613,843  

Fixed charges

      114,288       139,228       147,635       117,065       88,203       42,562  

Amortization of capitalized interest

      5,072       4,956       4,510       4,570       4,527       3,317  

less:

             

Capitalized interest

      (5,009 )      (8,157 )      (9,202 )      (7,091 )      (5,955 )      (3,622 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings

    $ 418,843       581,598       806,834       863,405       1,327,900       656,100  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      3.6       4.1       5.4       7.3       15.0       15.3  

 

(1)  Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.
(2)  For the purposes of determining the ratio of earnings to fixed charges, earnings consists of the aggregate of earnings from continuing operations before income taxes plus fixed charges and amortization of capitalized interest, less total capitalized interest. Fixed charges are defined as interest expensed and capitalized plus an estimate of interest included within rental expense.
(3)  Earnings (as defined above) for the year ended December 31, 2015 reflect a $122.5 million charge related to the settlement and further defense of certain polyurethane foam litigation. Excluding this litigation-related charge, earnings for the year ended December 31, 2015 would have been $985.9 million and the ratio of earnings to fixed charges would have been 8.4x.