LITHIA MOTORS INC - FORM 10-K - EX-12 - RATIO OF EARNINGS TO COMBINED FIXED CHARGES - March 7, 2011

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10-K - FORM 10-K - LITHIA MOTORS INCd10k.htm
EX-23 - CONSENT OF KPMG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - LITHIA MOTORS INCdex23.htm
EX-21 - SUBSIDIARIES OF LITHIA MOTORS, INC. - LITHIA MOTORS INCdex21.htm
EX-32.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER - LITHIA MOTORS INCdex322.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER - LITHIA MOTORS INCdex311.htm
EX-32.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER - LITHIA MOTORS INCdex321.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER - LITHIA MOTORS INCdex312.htm
EX-10.4 - FORM OF RESTRICTED STOCK UNIT AGREEMENT FOR SENIOR EXECUTIVES - LITHIA MOTORS INCdex104.htm
EX-10.4.1 - FORM OF RESTRICTED STOCK UNIT AGREEMENT FOR NON-EXECUTIVE OFFICERS - LITHIA MOTORS INCdex1041.htm
EX-10.4.2 - FORM OF RESTRICTED STOCK UNIT AGREEMENT FOR NON-EXECUTIVE DIRECTORS - LITHIA MOTORS INCdex1042.htm
EX-10.22 - EXECUTIVE MANAGEMENT NON-QUALIFIED DEFERRED COMPENSATION AND LONG-TERM INCENTIVE - LITHIA MOTORS INCdex1022.htm
EX-10.16.5 - TWELFTH AMENDMENT TO REVOLVING CREDIT FACILITY WITH U.S. BANK NATIONAL - LITHIA MOTORS INCdex10165.htm
EX-10.22.2 - FORM OF EXECUTIVE MANAGEMENT NON-QUALIFIED DEFERRED COMPENSATION AND LONG-TERM - LITHIA MOTORS INCdex10222.htm
EX-10.22.1 - FORM OF EXECUTIVE MANAGEMENT NON-QUALIFIED DEFERRED COMPENSATION - LITHIA MOTORS INCdex10221.htm

EXHIBIT 12

RATIO OF EARNINGS TO COMBINED FIXED CHARGES

The following table shows the ratio of earnings to combined fixed charges for us and our consolidated subsidiaries for the dates indicated.

(Dollars in Thousands)

 

     Year Ended December 31,  
     2010     2009     2008     2007     2006  

Earnings

           

Income (loss) from continuing operations before income taxes

    $ 23,193      $ 12,078      $ (333,010 )    $ 38,606      $ 52,481   

Fixed charges

      30,698        32,546        47,757        51,732        45,382   

Amortization of capitalized interest

      268        256        224        164        106   

Capitalized interest

      —          (916 )      (1,661 )      (3,153 )      (1,473 ) 
                                        

Total earnings

    $ 54,159      $ 43,964      $ (286,690 )    $ 87,349      $ 96,496   

Fixed Charges

           

Floorplan interest expense

    $ 10,597      $ 11,015      $ 20,808      $ 24,964      $ 25,677   

Other interest expense (1)

      14,572        14,115        18,075        16,478        12,242   

Capitalized interest costs

      —          916        1,661        3,153        1,473   

Interest component of rent expense

      5,529        6,500        7,213        7,137        5,990   
                                        

Total fixed charges

    $ 30,698      $ 32,546      $ 47,757      $ 51,732        45,382   

Ratio of earnings to fixed charges

      1.8 ×      1.4 ×    $ (334,447 )(2)      1.7 ×      2.1 × 

 

(1) Other interest expense includes amortization of debt issuance costs
(2) Reflects deficiency of earnings available to cover fixed charges. Because of the deficiency, ratio information is not provided.

For purposes of these ratios, “earnings” consist of income from continuing operations before income taxes and fixed charges, and “fixed charges” consist of interest expense on indebtedness and the interest component of rental expense, and amortization of debt discount and issuance expenses.

We did not have any preferred stock outstanding for the periods presented above, and therefore the ratios of earnings to combined fixed charges and preferred stock dividends would be the same as the ratios of earnings to combined fixed charges presented above.

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