EX-12 31 dex12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Statement of Computation of Ratio of Earnings to Fixed Charges.

Exhibit 12

Ratio of Earnings to Fixed Charges:

Our ratio of earnings to fixed charges for each of the periods indicated (dollars in thousands):

 

                 Supplemental
pro forma
year ended
December 31,
2007
    Predecessor  
     Successor     Predecessor       Fiscal Year  
     Period from
June 15 to
December 31,
2007
    Period from
January 1 to
June 14,
2007
      2006     2005     2004     2003  

Fixed Charges

              

Interest expense

   $ 98,722     $ 6,212     $ 176,420     $ 14,804     $ 6,848     $ 3,629     $ 1,810  

Capitalized interest

     900       294       1,662       567       378       206       202  

Amortization of debt issuance costs

     5,879       207       8,867       416       273       261       154  

Interest factor attributable to rental expense

     37,971       18,269       68,600       37,329       31,723       26,444       20,914  
                                                        

Total fixed charges

   $ 143,472     $ 24,982     $ 255,549     $ 53,116     $ 39,222     $ 30,540     $ 23,080  
                                                        

Earnings

              

Pre-tax (loss) income before income (loss) from minority partners and income (loss) from equity investees

   $ (87,588 )   $ 18,182     $ (137,279 )   $ 148,742     $ 220,266     $ 237,648     $ 245,920  

Add: fixed charges

     143,472       24,982     $ 255,549       53,116       39,222       30,540       23,080  

Add: amortization of capitalized interest

     150       202       277       419       386       375       399  

Add: distributed income of equity investees

     112       86       207       —         —         121       1,830  

Deduct: interest capitalized

     (900 )     (294 )     (1,662 )     (567 )     (378 )     (206 )     (202 )
                                                        

Total earnings

   $ 55,246     $ 43,158     $ 117,092     $ 201,710     $ 259,496     $ 268,478     $ 271,027  
                                                        

Ratio of earnings to fixed charges (1)

     —         1.7       —         3.8       6.6       8.8       11.7  
                                                        

 

(1) The ratio of earnings to fixed charges is computed by dividing earnings to fixed charges. For purposes of calculating the ratio of earnings to fixed charges, earnings represents pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries and before income (loss) from equity investees, plus fixed charges and amortization of capitalized interest, less capitalized interest. Fixed charges include: (i) interest expense, whether expensed or capitalized; (ii) amortization of debt issuance cost; and (iii) the portion of rental expense that we believe is representative of the interest component of rental expense. For the period from June 15 to December 31, 2007 and for the supplemental pro forma year ended December 31, 2007, earnings were insufficient to cover fixed charges by approximately $88.2 million and $138.5 million, respectively. The Company accounts for interest and penalties related to uncertain tax positions as part of its (benefit) provision for income taxes, and therefore, these charges are not included as a component of interest expense within fixed charges.